Utility may cut off power to solar plant January 1, 2012 by Don Surber
Idaho Power plans to cut off electricity on Tuesday to plant in Pocatello, Idaho, that makes material for solar energy, because the factory owes $1.9 million in unpaid utility bills. The dispute is with Honolulu-based Hoku Scientific, Inc., which is backed by Chinese financing and enjoys federal and state incentives.
Officials for the utility said Idaho Power agreed to hold off until March on collecting the $1.8 million Hoku already owed, providing the company stayed current in its bills. It didn’t. That’s a telltale sign of trouble as thanks to hydroelectric plants and thermal energy, Idaho enjoys some of the lowest electric rates in the nation. The Associated Press reported the company’s stock now sells at “well below” $1 a share, down from a 52-week high of $3.24.
State and company officials were extremely upbeat when they announced the plans for the plant on August 30, 2006:
Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced it has selected the State of Idaho as the location for Hoku Solar and Hoku Materials, its solar module and polysilicon business units, respectively.
Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific, said, “We are pleased to have selected Idaho as the location for our new businesses. We believe that Idaho is the best location in terms of cost, resources, labor and government support.”
“We are very excited that Hoku Scientific has chosen Idaho as the location for its new high technology renewable energy-focused businesses,” said Idaho’s Governor Jim Risch. “We have met with their management team, and were impressed with their growth strategy. We expect Hoku Scientific to have a significant long-term positive impact on our economy.”
The State of Idaho and the municipal governments have offered Hoku Scientific a variety of incentives to attract the Hoku Solar and Hoku Materials businesses, including tax incentives, financial support for infrastructure improvements around the facilities, and grants to fund the training of new employees.
“Idaho is a very attractive place for us to expand our business,” said Shindo, “and we look forward to contributing to Idaho’s growing and diversified economy.”
But like many other alternative energy projects, this one has hit bad times.
Here is an idea: No more tax incentives, subsidies or free rides. Make people go out, find investors and come up with a product that is cheaper and better than what is on the market. Instead of helping Idaho, it looks as if Hoku may stiff Idaho Power — a $1.9 million bill its other customers will have to cover...
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