The fuss over electricity payments by Hoku Materials to Idaho Power for its polysilicon plant, have been resolved with a reduction in payments through June 30, 2013. With the delayed start-up of the plant due to financial constraints, previously expected power consumption rates by the plant weren’t realised but the utility still claimed for US$2 million a month in payments, previously agreed. The cash strapped firm will now pay approximately US$800,000 per month.
However, the deal struck with the utility calls upon Hoku to pay an additional one-time payment of US$3.8 million to amend the contract. The first US$2 million will be paid by deducting it from the US$4 million deposit previously paid by Hoku, and the remaining US$1.8 million balance will be paid in equal installments over 18 months.
Hoku has also agreed to provide six months' prior notice and additional monetary deposits if its power demand exceeds 20MW per month.