20111123IPC 1-5 to Staff.pdf

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eslDA~POR~
DONOVAN E. WALKER
Lead Counsel
dwalkercmidahopower.com
An IDACORP Company
November 23, 2011
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-11-20
IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY
FOR TERMINATION OF ITS FIRM ENERGY SALES AGREEMENT WITH
MAGIC WIND, LLC
Dear Ms. Jewell:
) Enclosed for filng please find an original and three. (3) copies of Idaho Power
Company's Response to the First Production Request of the Commission Staff to Idaho
Power Company in the above matter. In addition, enclosed are an original and three (3)
copies of Idaho Power Company's Confidential Response to the First Production
Request of the Commission Staff to Idaho Power Company in the above matter. The
confidential information should be handled in accordance with the Protective Agreement
executed in this matter.Y00u1~
DEW:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
DONOVAN E. WALKER (ISB No. 5921)
JASON B. WILLIAMS (ISB No. 8718)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalker~idahopower.com
iwilliams~idahopower.com
Attorneys for Idaho Power Company
REC;Ei
'ìflll. lllî1 2"~ J,",'\ 11: 55LV,. "V' ~ H
".1-.ji-'
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR )
TERMINATION OF ITS FIRM ENERGY )
SALES AGREEMENT WITH MAGIC )WIND, LLC. )
)
)
)
)
CASE NO. IPC-E-11-20
IDAHO POWER COMPANY'S
RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE
COMMISSION STAFF TO IDAHO
POWER COMPANY
COMES NOW, Idaho Power Company ("Idaho Powet' or "Company"), and in
response to the First Production Request of the Commission Staff to Idaho Power
Company dated November 2, 2011, herewith submits the following information:
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 1
REQUEST NO.1: Please provide a summary showing the original Cluster
Group members and each membets allocable share of the Network Upgrades. Please
identify Magic Wind's position in the interconnection queue and its allocable share of
$562,536.
RESPONSE TO REQUEST NO.1: The response to this Request is confidential
and wil be provided to those parties that have signed the Protective Agreement in this
matter.
The response to this Request was prepared by Donovan E. Walker, Lead
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 2
REQUEST NO.2: Please provide a summary showing the revised Cluster
Group members and each membets allocable share of the Network Upgrades with
Magic Wind removed from the Cluster Group. Please show in the summary how each
Cluster Group member's allocable share increases or decreases as a consequence of
the removal of Magic Wind from the queue.
RESPONSE TO REQUEST NO.2: The response to this Request is confidential
and wil be provided to those parties that have signed the Protective Agreement in this
matter.
The response to this Request was prepared by Donovan E. Walker, Lead
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3
REQUEST NO.3: Please provide a copy of the notice of termination sent by
Idaho Power to Magic Wind on October 4, 2011 .
RESPONSE TO REQUEST NO.3: Please see the attached requested letter.
The response to this Request was prepared by Randy Allphin, Energy Contracts
Coordinator, Idaho Power Company, in consultation with Donovan E. Walker, Lead
Counsel, Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4
REQUEST NO.4: Please provide a copy of the Interconnection Agreement
between Idaho Power and Magic Wind.
RESPONSE TO REQUEST NO.4: Please see the attached requested
Generator Interconnection Agreement ("GIA") for Magic Wind, LLC.
The response to this Request was prepared by Rowena Bishop, Operations
Analyst, Idaho Power Company, in consultation with Donovan E. Walker, Lead Counsel,
Idaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 5
REQUEST NO.5: Please provide a copy of pertinent language from the
interconnection agreements of other projects in the interconnection queue relating to
cost responsibilty for Network Upgrades in the event one or more projects is removed
from the queue. If the language is identical or materially the same, providing one
sample set of language wil be sufficient.
RESPONSE TO REQUEST NO.5: Please see Attachment 6 to the GIA for
Magic Wind, LLC, provided in the Company's response to Staff's Request NO.4 above.
Provisions #1 through #14 under "Transmission Network Upgrades" in this Attachment 6
are included in the GIA for each member of the Custer Group. These provisions are
quite specific as to the cost allocation and responsibilty, and specifically provide that
the final cost and responsibility for Network Upgrades wil increase or decrease
depending upon whether other projects, both earlier and later in the Cluster Group, are
constructed.
The response to this Request was prepared by David Angell, Delivery Planning
Manager, Idaho Power Company, in consultation with Donovan E. Walker, Lead
Counsel, Idaho Power Company.
DATED at Boise, Idaho, this 23rd day of November 2011.
4rft!~
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 6
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 23rd day of November 2011 I served a true and
correct copy of IDAHO POWER COMPANY'S RESPONSE TO THE FIRST
PRODUCTION REQUEST OF THE COMMISSION STAFF TO IDAHO POWER
COMPANY upon the following named parties by the method indicated below, and
addressed to the following:
Commission Staff
Kristine A. Sasser
Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
Magic Wind, LLC
Dean J. Miler
McDEVITT & MILLER LLP
420 West Bannock Street (83702)
P.O. Box 2564
Boise, Idaho 83701
Armand Eckert
716-B East 4900 North
Buhl, Idaho 83316
-l Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
-l Email Kris.Sassercapuc.idaho.gov
Hand Delivered
-l U.S. Mail
_ Overnight Mail
FAX
-l Email joecamcdevitt-miler.com
Hand Delivered
-l U.S. Mail
_ Overnight Mail
FAX
-l Email armandcasafelink.net
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 7
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-11-20
IDAHO POWER COMPANY
'"
RESPONSE TO STAFF'S REQUEST NO.3
~IDA~PO~
An iDACORP Company
October 4,2011
Randy C. Allphin
Senior Energy Contract Coordinator
Magic Wind LLC
Attn: Arand Eckert
716-B East 4900 North
Buhl, Idaho 83316
Original- Certified U SMail
E-mail:Arand Eckert
Joe Miler
GarErb
Arand(Ðsafelin.net
joe(Ðmcdevitt-miler.com
superb57 (Ðcomcast.net
Re: Magic Wind Firm Energy Sales Agreement
Dear Arand:
As you ar aware, Idaho Power Company and Magic Wind LLC executed a letter agreement dated
August 2, 2011, in which both parties agreed to specific, clear deadlines and actions with regard to
the Magic Wind LLCs Firm Energy Sales Agreement with Idaho Power. I have attached a copy of
that letter agreement for your convenience.
One of the requirements of this letter agreement was that Magic Wind LLC must post securty in the
amount of $900,000 and make payment of the interconnection invoice of $500,000 no later than 5:00
p.m. Mountain Time, September 30, 2011. Idaho Power did not receive either of these payments, nor
any other acceptable security posting by that due date.
Item 7 of the letter agreement states:
"If Magic Wind does not post the required security by the date certain of September 30th, 2011,
by 5:00 p.m. Mountain Standard Time, the FESA wil be terminated with no further notice
required nor legal challenges to the termination thereof."
Additionally, Item 14 of the letter agreement states:
"If Magic doe not pedonnth above by Septembe 30, 20 i I, then the paies agre tht the
FEA wil be therefore teinated and no additiona amounts wil be owed. Bothldao
Power and Magic Wind therefore, shall not bring any legal or equitable challenge to th sae
and by this agreement knowingly and intellgently waive their rights to brig any possible
legal clamirelated thereto ag~inst the other par to this agrment." .
Therfore, as clealy inicated in the lêtteragemeit and as a reult of MalÌc Wind LLCs failur to
meet the clear and spefic requients therof, the Fin Sales Ageeeit beeen.IdahQ
Power and Wind is now tern.ted.
C.Allphin
Senior Enegy Cotnt Cootor
Cø: Doovan Walker
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-11-20
IDAHO POWER COMPANY
RESPONSE TO STAFF'S REQUEST NO.4
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tanff No. 101
September 29,2011
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72 (PURPA)
Magic Wind Farm
20MW
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101
TABLE OF CONTENTS
RECITALS..............................................................................................................................................1
AGREEMENTS ... ................... ....... ..... .......... .......... ........ ....... ..... ........ ... ...... ... ....... .......................... .......1
1. Capitalized Terms ......................... ........ ......... .............. ........................ ............ .............. ...... 1
2. Terms and Conditions .. ..... ......... ... ..... ..... ... ... ....... ..... ........ ... ... ... ... .... ...... ....... ......... ... .... ...... 1
3. This Agreement is not an agreement to purchase Seller's power. ........................................ 1
4. Attachments.............................................................. ........................................................... 1
5. Effective Date. Term. Termination and Disconnection. .........................................................1
5. 1 Term of Agreement. ........................................................................................................... 2
5.2 Termination. .........................................................................................................................2
5.3 Temporary Disconnection. .................................................................................................. 2
6. Assiqnment. Liability. Indemnity. Force majeure. Consequential Damages and Default. ...... 5
7. Insurance. ......... ................................................................................................................... 7
8. Miscellaneous. ..................................................................................................................... 7
9. Notices. ............... ..... ..... ..... ...... ......... ........ ....... ........ .... ........... .......... .... ... ...... ......... ... ... ....... 8
10. Signatures. . .... .......... ..... .................... ................. .................................................................. 9
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") ~dt- P9wer Company's
SChed~ is effective as of the ~ day of . . ~ -.y 2011 between
. b-;LL-C ("Seller" or "Interconnection Customet') and Idaho
Power Company - Delivery ("Company., or "Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facilty that qualifes for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any confUct between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 - Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 - One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 - Milestones For Interconnecting the Generation Facility.
Attachment 4 - Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 - Reactive Power.
Attachment 6 - Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
5. Effective Date. Term. Termination and Disconnection.
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 2 of9
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and
remain effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2. 1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facilty will be disconnected from the Company's transmission/distribution system. The
termination or expiration of this Agreement shall not relieve either Party of its liabiliies
and obligations, owed or continuing at the time of the termination. The provisions of this
Section shall survive termination or expiration of this Agreement.
5.3 Temporarv Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of
the practices, methods and acts engaged in or approved by a significant portion of the electric
industry during the relevant time period, or any of the practices, methods and acts which, in the
exercise of reasonable judgment in light of the facts known at the time the decision was made,
could have been expected to accomplish the desired result at a reasonable cost consistent with
good business practices, reliabiliy, safety and expedition. Good Utility Practice is not intended
to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to
be acceptable practices, methods, or acts generally accepted in the region. Good Utiliy
Practice includes compliance with WECC or NERC requirements. Payment of lost revenue
resultng from temporary disconnection shall be governed by the power purchase agreement.
5.3.1 Emergency Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to
endanger life or property; or (2) that, in the case of the Company, is imminently likely (as
determined in a non-discriminator manner) to cause a material adverse effect on the
security of, or damage to the Company's transmission/distribution system, the
Company's Interconnection Faciliies or the equipment of the Company's customers; or
(3) that, in the case of the Seller, is imminently likely (as determined in a non-
discriminatory manner) to cause a material adverse effect on the reliability and security
of, or damage to, the Generation Faciliy or the Seller's Interconnection Facilities. Under
Emergency Conditions, either the Company or the Seller may immediately suspend
interconnection service and temporarily disconnect the Generation Facility. The
Company shall notif the Seller promptly when it becomes aware of an Emergency
Condition that may reasonably be expected to affect the Seller's operation of the
Generation Facilty. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the
Company's equipment or service to the Company's customers. To the extent
information is known, the notification shall describe the Emergency Conditon, the extent
of the damage or deficiency, the expected effect on the operation of both Parties'
facilties and operations, its anticipated duration, and the necessary corrective action.
5.3.2 Routine Maintenance. Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facilty
and temporarily disconnect the Generation Facilty from the Company's
transmission/distribution system when necessary for routine maintenance, construction,
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 30f9
and repairs on the Company's transmission/distribution system. The Company will
make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt
interconnection or curtail deliveries from the Seller's Facility. Seller understands that in
the case of emergency circumstances, real time operations of the electrical system,
and/or unplanned events, the Company may not be able to provide notice to the Seller
prior to interruption, curtailment or reduction of electrical energy deliveries to the
Company. The Company shall use reasonable efforts to coordinate such reduction or
temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of signifcant Facility
maintenance for that calendar year and the Company and Seller shall mutually agree as
to the acceptabilty of the proposed schedule. The Parties determination as to the
acceptability of the Seller's timetable for scheduled maintenance will take into
consideration Good Utiliy Practices, Idaho Power system requirements and the Seller's
preferred schedule. Neither Party shall unreasonably withhold acceptance of the
proposed maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and
Generation Facility maintenance schedules such that they occur simultaneously. Seller
shall provide and maintain adequate protective equipment suffcient to prevent damage
to the Generation Facility and Seller-furnished Interconnection Facilities. In some cases,
some of Seller's protective relays will provide back-up protection for Idaho Power's
facilities. In that event, Idaho Power will test such relays annually and Seller will pay the
actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's
transmission/distribution system. The Company shall use reasonable effrts to provide
the Seller with prior notice. If prior notice is not given, the Company shall, upon request,
provide the Seller written documentation after the fact explaining the circumstances of
the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utiliy Practice, operation of the Seller's Generation
Facilty may cause disruption or deterioration of service to other customers served from
the same electric system, or if operating the Generation Facility could cause damage to
the Company's transmission/distribution system or other affected systems. Supporting
documentation used to reach the decision to disconnect shall be provided to the Seller
upon request. If, after notice, the Seller fails to remedy the adverse operating effect
within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless
the provisions of Article 5.3. 1 apply.
5.3.7 Modifcation of the Generation Facility. The Seller must receive written
authorization from the Company before making any change to the Generation Faciliy
that may have a material impact on the safety or reliability of the Company's
transmission/distribution system. Such authorization shall not be unreasonably withheld.
Modifcations shall be done in accordance with Good Utility Practice. If the Seller makes
such modification without the Company's prior written authorization, the latter shall have
the right to temporarily disconnect the Generation Faciliy.
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 4of9
transmission/distribution system to their normal operating state as soon as reasonably
practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power.
Idaho Power may, in accordance with Good Utiliy Practices, upon one hundred eighty
(180) days' notice to the Seller, change its nominal operating voltage level by more than
ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho
Power's expense, Seller's equipment as necessary to accommodate the modified
nominal operating voltage level.
5.4 Land Rights.
5.4. 1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate,
maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection
Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities
necessary or useful to this Agreement, including adequate and continuing access rights
on property of Seller. Seller warrants that it has procured sufficient easements and
rights-of-way from third parties so as to provide Idaho Power with the access described
above. All documents granting such easements or rights-of-way shall be subject to
Idaho Power's approval and in recordable form.
5.4.2 Use of Public Rights-of-Way. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of
duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho
Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and
receive from any local, state or federal governmental body the right to erect, construct
and maintain Seller-furnished Interconnection Facilties upon, along and over any and all
public roads, streets and highways, then the use by Seller of such public right-of-way
shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction anc/or maintenance of electric distribution and transmission faciliies and
Idaho Power may claim use of such public right-of-way for such purposes at any time.
Except as required by Paragraph 5.4.4, Idaho Power shall not be required to
compensate Seller for exercising its rights under this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution anc/or transmission
facilities to Seller's Interconnection Faciliies, may reconstruct Seller's Interconnection
Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own
distribution or transmission facilities along, over and above any public right-of-way
acquired from Seller pursuant to Paragraph 5.4.2, attaching Seller's Interconnection
Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4,
Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same conditon, both financially and electrically, as Seller existed prior
to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties
agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs
5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility
Practices, (2) equitably share the costs of installng, owning and operating jointly used
facilties and rights-of-way. If the Parties are unable to agree on the method of
apportioning these costs, the dispute will be submitted to the Commission for resolution
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29, Tarif No. 101 Page 50f9
and the decision of the Commission wíl be binding on the Parties, and (3) shall provide
Seller with an interconnection to Idaho Power's system of equal capacity and durability
as existed prior to Idaho Power exercising its rights under this Paragraph 5.4.
6. Assignment, Liabilty, Indemnity. Force maíeure, Consequential Damages and Default.
6. 1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Part; provided
that:
6.1.1 Either Party may assign this Agreement without the consent of the other
Part to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liabilitv. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnitv.
6.3.1 This provision protects each Party from liabiliy incurrd to third parties as
a result of carring out the provisions of this Agreement. Liabiliy under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnif, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resultng frm the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnifed person is entitled to indemnification under this article as
a result of a claim by a third part, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnifed person may at the expense of the indemnifying Party contest,
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnifed person harmless under this article, the amount owing to the indemnified
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tarif No. 101 Page 6 of9
person shall be the amount of such indemnifed person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Maieure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civl
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29, Tariff No. 101 Page 7 0(9
6.5 Default and Material Breaches.
6.5, 1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default"), the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occuffed. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefau/tng Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identifed in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carr the following
insurance coverage:
7. 1 Comprehensive General Liabiliy Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with CUffent Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A.M. Best Company rating of A- or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of
liabiliy reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notifv Idaho Power of Loss of Coverage - If the insurance coverage
required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice wil advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and wil be a Material Breach.
8. Miscellaneous.
8. 1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflcts of law principles.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29, Tariff No. 101 Page 80f9
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Faciliies will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the SelJer may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Attention:
/Ydt';L MIt/ L¿G
,/tlP Â / ø" ¿rcd¿ r/
7/" -13 e;~/ ~9tít1 lVn-
City: &4r/ State:;i6 Zip: rJJL6
PhoneÌ "')l".J, 5i 9 ¥" Fax: 1Gý"'~ý3 -~?73
Interconnection Customer:
Address:
If to the Company:
Idaho Power Company - Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise Idaho 83702
Phone: [phone] Fax: [phone]
9.2
out below:
Biling and Payment. Bilings and payments shall be sent to the addresses set
/)1'L ~¥ LLc-i
Attention: kP'4'Á¿ 4?" h.~-¿ ~.
Address: 7/¿--j) &15"/ ~?d// y".~
City: (36 AI State: :: Zip: R'~ 3/,
Phone:..r"N3- td,?, Fax: .kr-j¥Y -'?1J
Interconnection Customer:
Company: Idaho Power Company - Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
Phone: [phone] email: asloan~idahopower.com
Idaho Power Company Generator Interconnection Agreement # 135
I.P.u.C. No. 29, Tariff No. 101 Page 90f9
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person wil also serve as the point of
contact with respect to operations and maintenance of the Part's facilties.
Interconnection Customer's Operating Representative:
Interconnection Customer: ,/ a-,pt: . Mn / L¿c-
Attention: ~ 4'"tt /t. F' ~ r/
Address: 7/¿ -'8 C;.f 7/fid ~~ß
City: Q¿.£,i State: t: Zip: tt.. /~
Phone:7tý-, ,iy'.I - M?r Fax: ¿¿e..57 - Y??3
Company's Operating Representative:
Idaho Power Company - Delivery
Attention: Regional Outage Coordinator - Regional Dispatch
1221 W. Idaho Street
Boise Idaho 83702
Phone: [phone] or 388-5175 during regular business hours
(after hours Southern Region 208~388-5190)
9.5 Changes to the Notice Information. Either Party may change this information by
giving five Business Days written notice prior to the effective date of the change.
Date:
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Interconnection customer, /l A . ~ .Name: ~t?n.¿ n? - ¿£g...L=t,?1 ~
Company: /7æ--:/¿" Mh¿p /Le-,.1kr~LV9ßcJ/! /7 7
For the Company
Title:
Name:
Title: Manager. Grid Operations -Idaho Power Company, Delivery
Date:
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 1 of2
Attachment 1
Description and Costs of the Generation Facilitv. Interconnection Facilities and Metering
Equipment
In this attachment the Generation Facility and Interconnection Faciliies, including Special
Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company. As
provided in Schedule 72, Payment For Interconnection Facilities. the Company wil provide a best
estimate itemized cost of its Interconnection Faciliies, including Special Facilities, upgrades and
Metering Equipment.
General Facilty Description
Interconnection Service wil be provided at 34.5kV for the integration of the Magic Wind Farm Project.
The project's location is in Idaho Power Company's Southern Idaho service territory near the SW
corner of the NW ~ S11 ,T9S, R13E in Twin Falls County, Idaho. The proposed generation project wil
consist of ten (10) 2.0 MW Gamesa wind turbines. See Single Line drawing 210-59589 dated 3/1/07
as Attachment 2. The total project output is 20 MW.
Interconnection Point
The Interconnection Point for the Magic Wind Farm Project wil be on the customer side of the Idaho
Power-owned disconnect switch located between recloser R501 and the customer's system on Idaho
Power Company's Blue Gulch (BUGU-042) 35kV distribution line (approximately 4550N and 700E).
The Point of Change of Ownership for the Magic Wind Farm Project wil be on the customer side of the
Idaho Power-owned disconnect switch on the east side of the interconnection. Magic Wind Farm wil
connect to the Idaho Power Company-owned disconnect switch. A drawing identifying the
Interconnection Point is included in the Single Line as Attachment 2.
Seller's Interconnection Facilties
The Seller will install generators, disconnect switches, step-up transformers, all wiring between the
transformers and the Interconnection Point, appropriate grounding measures and associated auxiliary
equipment. Seller wil build required facilities to the Interconnection Point for the generator facility.
The Seller wil install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOLCD) - see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
All interconnection equipment electrically located on the generator side of the Interconnection Point shall
be owned and maintained by the Seller.
Other Facilties Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller. the Seller shall provide the
following communication circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
2. One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power
Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits wil
need to be installed and operational prior to generating into Idaho Power system. Note that installation
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 2
by the local communications provider may take several months and should be ordered in advance to
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Ground Fault Equipment
The Seller wil install transformer configurations that wil limit the contribution of ground fault current to 20
amps or less at the Interconnection Point and be grounded-wye on the high side of the transformer.
Easements
The Interconnection Customer will provide to IPCO a surveyed (Metes & Bounds) legal description
along with exhibit map for IPCO's facilties. After the legal description has been delivered to IPCO for
review, IPCO wil supply to the Interconnection Customer a completed IPCO easement for signature by
the land owner of record. Once the signatures have been secured, the Interconnection Customer wil
return the signed easement to IPCO for recording.
The Interconnection Customer wil secure appropriate easements with the land owner for the
interconnection facilities as described in the Facilty Study Report. IPCO construction wil not proceed
unti the appropriate easements are secured.
Idaho Power Company's Interconnection Facilties
Idaho Power will install a standard generation interconnection package that includes four distribution
poles to mount a local service transformer, solid blade disconnects, primary metering, current and
potential transformers, recloser, and relay/control box. The interconnection will be contrlled by a SEL
311C line protection relay. The relay wil be located in a pole mounted enclosure that wil also contain a
test switch, SLSS, dial-up modem, 202 modem, isolation interface, power supply, DC converter, control
switch and surge protector.
Idaho Power will upgrade 2.5 miles of Blue Gulch distribution line (BUGU042) to 336 AI on 700E from
4300N to 4550N. All interconnection equipment electrically located on the utility side of the
Interconnection Point shall be owned, operated, and maintained by Idaho Power Company.
Estimated Cost & Ownership (in 2011 dollars
Estimated
Description Owner Cost
Generation Facilities
Seller to Provide Seller N/A
i I
Interconnection Facilities
Protection/Control Box, Metering, Recloser, etc.IPC $200,000
Total $200,000
See A IT ACHMENT 6 FOR UPGRAES COST ESTlM TES.
Full payment is required up front in accordance with Section 9, unless payment argements are made
in advance with Idaho Power Operations Finance.
Biling for constrction activities wil be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29, Tarif No. 101 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facility, Interconnection Facilties, Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Milestones
Attachment 3
Note: These Milestones are estimates only, and not guarantees of meeting or not meeting any specifc
date or milestone.
limeline \Iilestone
Funding Received by Idaho Power
8 months from the time funding i Idaho Power Constrction Complete
received by IPCO
One week after Constrcton Idaho Power Commissioning Complete
Complete
(to be provided by Seller at a Commercial Operation
later date)
Agreed to by: ~/ì /17: ~_.
For the Seller bL7 - -
For the Transmission Provicler
Idaho Power Company, Delivery
Date 9ßo/I~7
Date
Idaho Power Company Generaor Interconnecion Agreement # 135
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to SupPOrt the Seller's Needs
The Company shall also proYide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
The project is required to comply with the applicable Voltage and Current Distortion Limits found in
IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in
Electrical Power Systems or any subsequent standards as they may be updated from time to time.
Seller wil be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the distribution system whenever the generation facilties are electrically
isolated from the distribution system via the open recloser and associated disconnect switch and a
terminal clearance is issued by Idaho Power Company's Grid Operator,
Voltage flicker at startup and during operation wil be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system.
As presently designed, the generators at Magic Wind Farm wil not be able to generate onto the BUGU
042 distribution feeder when the feeder is out of servce.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent section of the power system without
tripping due to low voltage. It has been determined, through study, that the Project must be capable of
remaining interconnected for any single phase voltage as low as 0.7 PU for 30 cycles, and for all three
phase voltages as low as 0.8 PU for 30 cycles.
Ground Fault Eauipment
The Seller will install transformer configurations that wil limit the contribution of ground fault current to
20 amps or less.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Generator Outut Limit Control ("Redispatch" or "GOLe'?
The Magic Wind Project wil be allowed to deliver the net output of 20 MW at the Interconnection Point
subject to reductions directed by Company Grid Operations during transmission system contingencies
until the Generator Output Limit Control ("GOLC") is tested and in operation. The Interconnection
Customer has elected to be subject to GOLC under Idaho Public Utility Commission ("I PUC") Order No.
IPC-E-06.21. Once the Magic Wind Project is in operation, it wil be able to generate up to rated net
output of 20 MW subject to the provisions of IPUC Order No. IPC-E-06-21 and Exhibit C below
referenced by that Order.
The following Exhibit C is included herein from the Company's Joint Motion to Approve Stipulation and
to Dismiss Complaint dated June 13, 2007 in IPUC Case No. IPC-E-06-21.
Idaho Power Company Generaor Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 20f2
Exhibit C
The following Idaho Power Network transmission facilities have been identified to be affected by the
addition of the Requesting Projects in the Twin Falls area. An outage of any of these facilities may
result in overloads on the remaining facilties. Such outages may require the initiation of Cassia
Redispatch (also Generation Output Limit Control).
Boise Bench - Midpoint 230 KV transmission line
Boise Bench - Rattle Snake 230 KV transmission line
Rattle Snake - Midpoint 230 KV transmission line
Dram - Midpoint 230 KV transmission line
Hubbard - Danskin 230 KV transmission line
King 138/230 KV transformer
Danskin - Mountain Home Junction 138 KV transmission line
Upper Salmon - Mountain Home Junction 138 KV transmission line
lower Malad - Mountain Home Junction 138 KV transmission line
Upper Salmon - Mountain Home Junction 138 KV line reactor
lower Malad - Mountain Home Junction 138 KV line reactor
lucky Peak - Mountain Home Junction 138 KV line reactor
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Requirements
Idaho Power will determine the reactive power required to be supplied by the Company to the
Seller, based upon information provided by the Seller. The Company will specify the equipment
required on the Company's system to meet the Facility's reactive power requirements. These
specifications will include but not be limited to equipment specifications, equipment location, Company-
provided equipment, Seller provided equipment, and all costs associated with the equipment, design
and installation of the Company-provided equipment. The equipment specifications and requirements
will become an integral part of this Agreement. The Company-owned equipment will be maintained by
the Company, with total cost of purchase, installation, operation, and maintenance, including
administrative cost to be reimbursed to the Company by the Seller. Payment of these costs wil be in
accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the
Monthly Operation and Maintenance Charges specified in Schedule 72.
The project must be controlled to operate at unity power factor +/~ 500 kVar.
Voltage flicker at startup and during operation wil be limited to less than 5% as measured at the
Interconnection Point.
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tarif No. 101 Page 1 of 4
Attachment 6
Company's Description of Special Facilíties and Upqrades Required to Integrate the Generation
Faciliy and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Faciliies, including
Network Upgrades, and provides an itemized best estimate of the cost of the Upgrades.
Distribution Upgrades
Idaho Power Company will upgrade 2.5 miles of Blue Gulch distribution line (BUGU042) to 336 AI on
700E from 4300N to 4550N.o Cescriotion Owner Estimated ost
Upgrade 2.5 miles distribution feeder to 336 AL ¡PC $ 500,000.00
Total $ 500,000.00
Transmission Network Upgrades
Network Upgrades for this project were detailed in a separate Facilty Study Report for the Joint Study
Group identified in the March 14, 2008 System Impact Study Report for up to 353MW of New
Generation on the 138kV Transmission System in the Twin Falls area. The final cost wil be allocated
to the participants remaining in Joint Study Group One upon completion of each phase of the project.
See Attachment 6 for more information.
1 ) Regulatory Requirements:
A. A number of generation projects seeking Network Resource Interconnection Service, (as
that term is defined in FERC Order 2003 and the Company's FERC approved Open Access
Transmission Tariff ("OATr)) including the Generation Facility, propose to interconnect to the portion
of the Company's transmission system is located in the Twin Falls, Idaho geographic area, and have
submitted interconnection requests to the Company during the period January 1, 2005 through
October 1, 2007 (collectively, the "Requests" or "Requesting Projects").
B. In accordance with FERC Order 2003, the Company's OATT, Commission Order No.
30414 and in the interest of maintaining comparabilty and economic efficiency in responding to the
Requests, the Company has established "Joint Study Group One (1f for the Requesting Projects.
C Seller is ready and willng to start immediate construction of the Generation Facilty.
One or more Requesting Projects which precede or follow Seller in the Joint Study Group One are not
yet prepared for immediate construction or may not be constructed at alL.
2) Generation Outpyt Limit Control: The Generator Facility is a PURPA QF. Seller wil, at its
sole expense, install, operate and maintain the equipment and communications facilties necessary to
enable the Generation Facility to reduce its Maximum Hourly Output to a not-to-exceed set point, within
ten (10) minutes of when the Company calls for the reduction. The Company will specify the set point
when it notifies Seller of the need to initiate Generation Output Limit Control. Generation Output Limit
Control cannot be used to increase the Generation Facilty's output above such Maximum Hourly
Output for then existing turbine and wind conditions. Seller wil normally, subject to those conditions,
seek to maximize the energy output of the Generation Facility, but Generation Output Limit Control will
limit the output of the Generation Facilty whenever the Maximum Hourly Output level would otherwise
exceed the required set point in any scheduling hour. Seller has elected to be subject to Generation
Output Limit Control.
Idaho Power Company Generator I nterconnecton Agreement # 135
I.P.U.C. No. 29, Tanff No. 101 Page 2 of4
3) Cost Risk for Network UlXrades: Network Upgrade costs wil be allocated to each
Requesting Project, including the Generation Facility, based on: a) their election of whether to be
subject to Generation Output Limit Control, b) their order in the Joint Study Group One, and c) based
on the megawatt interconnection capacity of each Requesting Project, their pro rata share of the cost for
the Network Upgrade required to interconnect one or more Requesting Project and the added
interconnection capacity of that particular Network Upgrade. The Seller will pay non-reimbursed
amounts of no more than 25% of the actual as-constructed cost of the Generator Facilties currently-
allocated share of the Network Upgrades required to interconnect the Generation Facility without
Generation Output Limit Control (see paragraph 6 below. Sharing of Network Upgrade Costs.
4) Generation Output Limit Control Rights: The Company may issue a set point or limit and
initiate Generation Output Limit Control to respond to transmission system emergencies, or respond to
circumstances where the transmission line(s) identified in Commission Order No. 30414 are out of
service and for which Generation Output Limit Control was determined necessary and did lower the
amount of Network Upgrade cost obligation to the Generation Facility. In most circumstances,
Generation Output Limit Control wil not be required when all the lines specified in Commission Order
No. 30414 are in service. Any use of Generation Output Limit Control to establish a set point below the
Generation Facility's capacity shall be pro-rata with other Requesting Projects subject to Generation
Output Limit Control. The Company wil not purchase or pay for energy which would have been
produced by the Generation Facilty, but for operation of Generation Output Limit Control.
5) Responsibilty for Network Upgrade Costs: In addition to funding all costs of directly
interconnecting the Generation Facilty to the Company's system, the Seller wil pay its pro-rata share
of the Network Upgrade costs actually incurred by the Company to provide firm Network Resource
Interconnection Service to the Generation Facility but the Generation Facilty shall not be obligated to
share the on-going operation and maintenance costs of such Network Upgrades.
Seller recognizes that the final cost of its share of the Network Upgrades will not be known until
construction is completed. The Seller also recognizes that its share of the final Network Upgrade cost
wil increase or decrease, subject to the provisions of paragraph 6, depending on whether other
Requesting Projects, both earlier and later in the Joint Study Group One are constructed.
6) Sharing of Network Upgrade Costs:
A. The Seller and the Company wil share the five phases of Network Upgrade costs
attributable to the Generation Facilty as follows:
1. Phase 1: the Company wil assume 100% cost responsibilty for Phase 1 and
include this cost in its rate base.
2. Phases 2, 3, 4 and 5:
(a) 25% of the costs will be provided by the Generation Facilty as a non-refundable
contribution in aid of construction ("CIAC").
(b) 25% of the costs will be funded by the Company and included in the Company's
rate base.
(c) 50% of the costs wil be funded by Generation Facility as an advance in aid of
construction ("AIAC") subject to refund as provided in paragraph 7 below. As
refunds are made, the refunded amounts will be included in rate base using standard
regulatory accounting principles.
B. As projects in the Joint Study Group One are interconnected, the Company wil
reallocate the CIAC and AIAC portions of the costs of Phases 2 through 5. For example, when
additional projects in the Joint Study Group One are constrcted after the Generation Facilty is
constructed, the Company wil collect monies from these subsequent projects and refund
monies to Seller. It is the Company's intent that each QF Project in the Joint Study Group One
wil pay its respective pro-rata share, based on nameplate generation capacity. of each phase of
the Network Upgrade they utilize. Tables B-7, 8, 9 and 10 in the Settlement Stipulation adopted
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29. Tariff No. 101 Page 30f4
in Commission Order No. 30414 illustrate how this re-allocation would occur on a hypothetical
basis.
7) Refund Provisions: The Seller wil be entitled to a cash repayment, in monthly, equal
installments. for the total AIAC amount the Seller advances to the Company for Netwrk Upgrades,
including any tax gross-up or other tax related payments associated with the AIAC for Network
Upgrades. Repayment wil be made in accordance with Article 11.4 of the Large Generator
Interconnection Agreement ("LGIA") included in the Company's OATT and occur over a term not to
exceed ten (10) years after the date the Generation Facilty achieves commercial operation. Monthly
repayments wil be contingent on the FESA's being in good standing (no uncured defaults) and upon
the Generation Facilty achieving a mechanical availabilty in that month in excess of 50%, defined as
100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all
hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month.
In computing the mechanical availabilty, the capacity available in each hour wil not be reduced from
the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is
defined in the FESA) or a reduction in generation due to Generation Output Limit Control required by
the Company as described in paragraphs 2 and 4.
8) Interest on Refunds: Monthly refund payments on AIAC amounts shall include interest
calculated in accordance with the methodology set forth in FERC regulations at 18 C.F.R.
35.19a(a)(2)(ii) from the date of any payment for Network Upgrades through the date on which Seller
receives final repayment.
9) Security for Payment: Until it is finally determined which of the Projects in the Joint Study
Group One wil be constructed and interconnected and the final cost of those interconnections is
determined, upon execution of this Interconnection Agreement Seller wil provide and maintain a cash
escrow or a letter of credit to the Company in a form and by an issuer satisfactory to the Company as
security for payment, initially in the amount of the Generator Facility's allocation of Network Upgrade
costs as provided herein and adjusted from time to time pursuant to the status of the Requests. The
total security amount at any time will not exceed the amount that would be owed if the Requests then
remaining in the Joint Study Group One that are scheduled for construction later than the Generation
Facilty is not constructed. Other QF participants in the Joint Study Group One wil be held to a similar
requirement.
10) Generation Output Limit Control Protocols: This Interconnection Agreement addresses
interconnection of the Generation Facility to the Company transmission system with Network Resource
Interconnection Service. However, Seller acknowledges that, until suffcient Network Upgrades are
installed to allow the Generation Facility to qualif for Network Resource Interconnection Service, the
Generation Facilty wil be subject to Generation Output Limit Control as described in paragraphs 2 and
4.
11 ) Network Upgrade Cost Determination: Network Upgrade costs, allocated to the Generation
Facilty for initial funding. will be determined in a comparable manner and with the same criteria used by
the Company when studying the interconnection of other generation, whose output can be changed
within ten (10) minutes, at other locations on its transmission system. Upon request by the Generation
Facilty, the Company will provide a written explanation of the methods and assumptions leading to any
such allocation of Network Upgrade cost obligation to the Generation Facilty.
12) Request Uncertainty: The Company wil follow good utilty practice, the LGIP and SGIP, and
all Commission orders in processing the Joint Study Group One within Idaho Power Company's
Generator Interconnection Queue. Any Requests that fail to meet those requirements to remain in the
Joint Study Group One, or fail to proceed to construct their interconnection or fail to initially fund or
secure their allocated share of the Network Upgrade costs, wil forfeit their position in the Idaho Power
Idaho Power Company Generator Interconnection Agreement # 135
I.P.U.C. No. 29, Tariff No. 101 Page 4 of 4
Company Generator Interconnection Queue and their rights to the interconnection and transmission
system capacity associated with their Request.
13) Generation Facilty Responsibilty for Networ Upgrade Costs: The Company wil initially
and throughout the life of the Generation Facilty, consistent with good utilty practice, determine the
least cost solution, given the current status of the Requests in the Joint Study Group One, that will
result in the lowest reasonable allocation of initial funding responsibility for Network Upgrades to the
Generation Facilty. The Company wil apply the same criteria to all Projects in the Joint Study Group
One.
14) Seller Construction Responsibilty
Transmission Network Upgrades:
Descriotion Owner stimat ost
Under 3/14/08 System Impact Studv ReDort for the Twin Falls area:
Phase 4 - Midpoint 1/3 Series Capacitor Bypass IPC $47,647.00
Phase 5 - Kino 230/138 kV transformer IPC $ 702,402.00
Total $750,049.00
E edC
Full payment IS required up front for each Phase in accordance with Section 9 of this Attachment 6.
The final cost will be allocated to the participants remaining in Joint Study Group One upon completion
of each phase of the project.
Allocation of Transmission Network Upgrade Costs
Seller and Idaho Power wil share the actual Network Upgrade costs attributable to the project as
follows:
1. 25% of the costs wil be provided by Seller as a non-refundable contribution in aid of
construction ("CIAC").
2. 25% of the costs wil be funded by Idaho Power and included in Idaho Power's rate base.
3. 50% of the costs wil be funded by Seller as an advance in aid of construction ("AlAe") subject
to refund. As refunds are made the refunded amounts will be included in rate base using
standard regulatory accounting principles.
ComDanv Costs (25%$187,512.25
Non-reimbursable CIAC Costs (25%$187,512.25
Reimbursable AIAC Costs (50%$375,024.50