Hoku (HOKU), IDACORP (IDP) Amend Service Contract

Hoku Materials, Inc., a wholly owned subsidiary of Hoku Corporation (Nasdaq: HOKU) that plans to produce, market and sell polysilicon for the solar industry from its facility under construction in Pocatello, Idaho, today announced that it and Idaho Power Company (Idaho Power), a wholly owned subsidiary of IDACORP, Inc. (NYSE: IDA), have reached an agreement to amend their electric service contract, and have filed a stipulation with the Idaho Public Utilities Commission (IPUC) requesting approval of the amendment. The amendment is the result of negotiations between Idaho Power and Hoku Materials following Hoku's petition with the IPUC to reduce the minimum payments that are being charged for electrical service in excess of Hoku's actual power consumption at its polysilicon plant.

The key terms of the amendment are:

• Hoku's monthly billed minimum energy charge is reduced from approximately $2 million to approximately $800,000, retroactively effective January 1, 2012 and continuing through June 30, 2013. This 18-month period is referred to as the "Deferral Period."
  
  
• Hoku will pay Idaho Power an additional one-time payment of $3.8 million to amend the contract. The first $2 million will be paid by deducting it from the $4 million deposit previously paid by Hoku, and the remaining $1.8 million balance will be paid in equal installments over 18 months.
  
  
• On July 1, 2013, the minimum payments of approximately $2 million per month will resume.

According to the amendment, Idaho Power will create a balancing account during the Deferral Period for the difference between the monthly billed energy under the current, amended electric service agreement and the monthly billed energy that results from the stipulation once approved by the Commission. The maximum charge is capped at $16.5 million and will be balanced against Hoku's actual energy consumption during the Deferral Period. Repayment of the Balancing Account will begin in January 2014 at an additional charge equal to approximately 1/12th of the total amount until the balance reaches zero.

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