Hoku Materials Inc., a wholly owned subsidiary of Hoku Corp. that plans to produce, market and sell polysilicon for the solar market from its facility under construction in Pocatello, Idaho, has signed a new agreement with Idaho Power Co.
The companies have opted to amend their electric service contract and have filed a stipulation with the Idaho Public Utilities Commission (PUC) requesting approval of the amendment. Hoku and Idaho Power had engaged in a dispute regarding the silicon factory's electrical usage and the amounts charged by Idaho Power.
The amendment is the result of negotiations between Idaho Power and Hoku Materials following Hoku's petition with the PUC to reduce the minimum payments that are being charged for electrical service in excess of Hoku's actual power consumption at its polysilicon plant.
Hoku's monthly billed minimum energy charge has been reduced from approximately $2 million to approximately $800,000, retroactively effective Jan. 1, 2012 and continuing through June 30, 2013. Hoku will pay a one-time contract-amendment payment, among other terms.