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HomeMy WebLinkAbout20120314IPC to Grand View [1-12].pdfRECEIVED esIDA~POR(I An 10ACORP Company JASON B. WILLIAMS Corporate Counsel jwilliams(ëidahopower.com March 13, 2012 VIA HAND DELIVERY Jean D. Jewell, Secretary Idaho Public Utilties Commission 472 West Washington Street Boise, Idaho 83702 Re: Case No. IPC-E-12-01 GRAND VIEW PV SOLAR THREE, LLC, COMPLAINANT, GRAND VIEW PV SOLAR FOUR, LLC, COMPLAINANT VS. IDAHO POWER COMPANY, RESPONDENT Dear Ms. Jewell: Enclosed for filing please find an original and three (3) copies of Idaho Power Company's Response to the First Production Request of Grand View PV Solar Three, LLC, and Grand View PV Solar Four, LLC ("Grand View") to Idaho Power Company in the above matter. Also enclosed in a separate envelope are four (4) copies of confidential documents and four (4) confidential disks provided in response to Grand View's First Production Request. Please handle the confidential information in accordance with the Protective Agreement executed in this matter. \. Very truly yours,\. ¿7Jason B. Wiliams JBW:csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise, 10 83707 DONOVAN E. WALKER (ISB No. 5921) JASON B. WILLIAMS (8718) Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker(áidahopower.com jwilliams(áidahopower.com Attorneys for Idaho Power Company RECEIVED 2112 MAR , 3PH~: 55 IDAHO PUBLIC UTILITIES COMMiSSION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GRAND VIEW PV SOLAR THREE, LLC, ) )Complainant, ) ) GRAND VIEW PV SOLAR FOUR, LLC, ) )Complainant, ) )vs. ) )IDAHO POWER COMPANY, ) )Respondent. ) ) CASE NO. IPC-E-12-01 IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY COMES NOW, Idaho Power Company ("Idaho Powet' or "Company"), and in response to the First Production Request of Grand View PV Solar Three, LLC, and Grand View PV Solar Four, LLC ("Grand View") to Idaho Power Company dated February 21,2012, herewith submits the following information: IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 1 REQUEST FOR PRODUCTION NO.1: Please provide copies of all Documents and communications Idaho Power has had (both internal and external) regarding Grand View PV Solar Three, LLC and Grand View PV Solar Four, LLC. RESPONSE TO REQUEST FOR PRODUCTION NO.1: Idaho Power objects to this Request as the information sought is overly broad and would be unduly burdensome to produce. Idaho Power objects on the grounds that some of the information sought is prohibited from disclosure by the attorney-client privilege. Specifically, communications between Idaho Powets attorneys and other Idaho Power employees, agents, and consultants is protected by the attorney-client privilege and wil not be disclosed. Additionally, external communications with Grand View PV Solar Three, LLC, and Grand View PV Solar Four, LLC, as well as their counsel are within the possession and control of those parties. Notwithstanding Idaho Powets objection submitted on March 6, 2012, and without waiving such objection, Idaho Power has attached copies of all non-privileged Documents and communications Idaho Power has had (both internal and external) regarding Grand View PV Solar Three, LLC, and Grand View PV Solar Four, LLC. Some of the pages of the attached documentation are deemed confidential and proprietary and wil be provided to parties that have executed the Protective Agreement in this proceeding. In addition, Idaho Power Grid Operations has no Documents related to Grand View PV Solar Three, LLC, or Grand View PV Solar Four, LLC, as there have been no Generator Interconnection Requests from anyone identified by those names. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 2 The response to this Request was prepared by Randy C. Allphin, Senior Energy Contracts Coordinator, Idaho Power Company, and Rich Bauer, Grid Operations Manager, Idaho Power Company, in consultation with Jason B. Wiliams, Corporate Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 3 REQUEST FOR PRODUCTION NO.2: Please explain, and provide all Documents related to, Idaho Powets denial of the allegation contained in Paragraph 14 of the Formal Complaint filed by Grand View PV Solar Three, LLC and Grand View PV Solar Four, LLC with the Idaho PUC on January 3, 2012, (hereinafter the "Complaint"). RESPONSE TO REQUEST FOR PRODUCTION NO.2: To clarify Idaho Powets answer to paragraph 14 of the Complaint, the Company has not received the construction deposit identified in the Generator Interconnection Agreement with Grand View PV Solar One, LLC. The studies for Grand View PV Solar Two, LLC, had not been completed at the time Idaho Pow~r filed its Answer. The response to this Request was prepared by Rich Bauer, Grid Operations Manager, 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 GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 4 REQUEST FOR PRODUCTION NO.3: Please admit that On July 10, 2011, Idaho Power, through its attorney Donovan Walker, stated that, "IPC has tendered a draft contract for this project, which was rejected by the project." And also in the same communication that "To clarify: the parties wil sign the last tendered draft contract, to which you indicated the project was in complete agreement with - except for a change in the project name, and the Environmental Attribute language in Article 8." A. If you admit, then please reconcile that admission with Idaho Powets denial of the allegation contained in Paragraph 23 of the Complaint. B. Please specifically identify, and provide all related Documents, all issues associated with the Grand View PV Solar Three, and Four contracts that were unresolved as of July 2, 2011, other than REC ownership and a correction to the names of the projects. C. Please specifically identify, and provide all related Documents, each difference between the PPA offered to Grand View on December 2, 2011 and the PPA "tendered" by Mr. Walker in July 2011. Please explain and Document the reason for each identified difference. RESPONSE TO REQUEST FOR PRODUCTION NO.3: A. Please see Idaho Powets Answer, paragraph 23, for its response to paragraph 23 of the Complaint. Additionally, the July 10, 2011, communication referred to is included in the Company's response to Grand View's Request for Production No. 1 , and such communication speaks for itself. B. As of July 2, 2011, nothing with regard to proposed contract pricing, terms, or conditions had been resolved. Grand View PV Solar Three, LLC, and Grand View IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 5 PV Solar Four, LLC, did not make a formal request for contracts with Idaho Power until July 20, 2011. C. Idaho Power records indicate that draft contract terms and conditions, discussed and provided in July 2011 were in regards to a potential draft contract for the Grand View PV Solar Two. LLC. project and therefore not specifically applicable to the Grand View PV Solar Three. LLC. and Grand View PV Solar Four. LLC. draft contracts provided in December 2011. The response to this Request was prepared by Randy C. Allphin, Senior Energy Contract 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 GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 6 REQUEST FOR PRODUCTION NO.4: Idaho Power denies the first sentence in Paragraph 27 of the Complaint, which sentence states that, "Grand View gave Idaho Power no reason to make the assumption that it was 'waiting for the resolution' of Grand View PV Solar Two's complaint on ownership of environmental attributes." Please provide copies of all Documents and communications and/or notes from communications with or from Grand View upon which Idaho Power relied in making the referenced assumption. RESPONSE TO REQUEST FOR PRODUCTION NO.4: Please refer to the various e-mails, correspondence, and Documents provided in the Company's response to Grand View's Request for Production NO.1. Throughout the e-mails and Documents, numerous references are made to "Grand View Solat' and quite often no specific identification as to projects One, Two, Three, or Four.Mr. Richardson represents/represented the Grand View Solar projects One, Two, Three, and Four collectively and, quite often, was/is not specific with regard to making a distinction between projects One, Two, Three, or Four. For an additional example, please see the Complaint in this matter, p. 4-11, where allegations vary from paragraph to paragraph between projects One, Two, Three, or Four - and sometimes refer collectively to only "Grand View." Although the Complaint defines "Grand View" as referring only to Grand View PV Solar Three, LLC, and Grand View PV Solar Four, LLC, some allegations in the Complaint that state "Grand View" refer to events relative to only Grand View PV Solar Two, LLC, etc. As those Documents indicate, throughout July 2011, Mr. Richardson was in discussions with Idaho Power in regards to the Grand View PV Solar Two, LLC, IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 7 contract. At one time during these discussions, Mr. Richardson made an offer of settlement that was considered by Idaho Power, but as noted in the July 10 letter from Idaho Power to Mr. Richardson, and reaffirmed in an e-mail from Idaho Power to Mr. Richardson on July 26, 2011, the project rejected the language that the project had previously proposed itself. Please see the Company's response to Grand View's Request for Production No. 3.A. On July 20, Mr. Richardson advised Idaho Power that he would proceed with a complaint at the Idaho Public Utilties Commission. Within this e-mail.Mr. Richardson specifically states "Grand View Solats position. . . ," it does not specify Grand View PV Solar One, Two, Three, or Four. As Mr. Richardson was representing all of the Grand View Solar projects, it was reasonable to assume that Mr. Richardson was making this statement in regards to all the Grand View Solar projects. Not until an e-mail from Mr. Richardson dated September 6, 2011, did Mr. Richardson clarify that "We do not want to wait to get the execution ready contracts from Idaho Power while the complaint case wends its way through the process." The response to this Request was prepared by Randy C. Allphin, Senior 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 GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 8 REQUEST FOR PRODUCTION NO.5: Please provide copies of all correspondence, Documents, notes and all other material related to Idaho Powets PURPA contract with Interconnect Solar. Said information should include the avoided cost pricing models and inputs in both hard copy and usable electronic format. RESPONSE TO REQUEST FOR PRODUCTION NO.5: Idaho Power objects to this Request on the grounds of relevancy and that it is beyond the scope of the issues raised in this case. Idaho Power also objects on the grounds that the information sought is confidential, proprietary, and trade secret information that belongs to Interconnect Solar Development, LLC. Idaho Power wil not disclose such materiaL. The response to this Request was prepared by Jason B. Wiliams, Corporate Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 9 REQUEST FOR PRODUCTION NO.6: Idaho Power denied the allegation in Paragraph No. 32 of the Complaint to the effect that Idaho Power did not respond to an October 21, 2011 emial (sic) inquiry as to the status of the PPAs for Grand View PV Solar Three and Four. Please provide all Documents relied upon by Idaho Power in making said deniaL. RESPONSE TO REQUEST FOR PRODUCTION NO.6: Idaho Power did not rely upon any Documents in denying the allegations of paragraph No. 32 of the Complaint. The entire contents of paragraph No. 32 of the Complaint are as follows: "Idaho Power did not respond." Grand View's Complaint proves that Idaho Power did indeed respond. For example, paragraph Nos. 36 and 38 of the Complaint indicate Idaho Power responded to Grand View's requests. The response to this Request was prepared by Jason B. Willams, Corporate Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 10 REQUEST FOR PRODUCTION NO.7: Idaho Power denied the allegation in Paragraph No. 34 of the Complaint to the effect that Idaho Power did not respond to a November 21, 2011 emial (sic) inquiry as to the status of the PPAs for Grand View PV Solar Three and Four. Please provide all Documents relied upon by Idaho Power in making said deniaL. RESPONSE TO REQUEST FOR PRODUCTION NO.7: Please see the Company's response to Grand View's Request for Production NO.6. The response to this Request was prepared by Jason B. Willams, Corporate Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 11 REQUEST FOR PRODUCTION NO.8: Please admit that the PPA Idaho Power provided to Grand View on December 2, 2011 does not contain avoided cost rates calculated using the inputs to the IRP methodology that were in effect in July 2011. If you admit, please Document each input that results in different avoided cost rates and the impact of each changed input on avoided cost rates. RESPONSE TO REQUEST FOR PRODUCTION NO.8: The avoided cost rates included in the December 2, 2011, draft agreement contain avoided cost pricing based upon the inputs as presented in the December 15, 2011, presentation Idaho Power made to the Idaho Public Utilties Commission. A copy of that presentation is attached. In comparison to inputs that would have been used in July 2011, the significant differences are: . In July 2011, the 2009 Integrated Resource Plan ("IRP") preferred portolio and IRP setup was being used. . In December 2011, the 2011 IRP preferred portolio setup was used. . In July 2011, the 2009 IRP natural gas forecast prices were being used. . In December 2011, the August 2011 Northwest Power and Conservation Council's updated natural gas forecast was used. . In July 2011, an avoided cost of capacity component was used in the total avoided cost for all months of the proposed contract. . In December 2011, an avoided cost of capacity component was only included in the total avoided cost beginning in July 2016, which aligns with Idaho Power's capacity needs as identified in the 2011 IRP. . In July 2011, no solar integration cost was being included. . In December 2011, a $6.50 solar integration cost was included in the total avoided cost. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 12 · The December 2011 proposed agreement contains individual monthly Heavy and Light Load purchase prices, which is an evolution from July 2011 and better reflect the true values created by the IRP methodology. Idaho Power has not isolated the individual impacts that each of these changes has made on the total avoided cost calculation. The response to this Request was prepared by Randy C. Allphin, Senior 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 GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 13 REQUEST FOR PRODUCTION NO.9: Please provide all Documents, notes, correspondence and inputs and calculations related to the calculation of the rates contained in: A. The PPA Idaho Power provided to Grand View on December 2, 2011; and, B. The PPA Idaho Power provided to Interconnect Solar in October 2011. RESPONSE TO REQUEST FOR PRODUCTION NO.9: A. Please see the Company's response to Grand View's Request for Production No. 11. B. See Idaho Powets response to Grand View's Request for Production No. 5. The response to this Request was prepared by Randy C. Allphin, Senior Energy Contracts Coordinator, Idaho Power Company, and Jason B. Wiliams, Corporate Counsel, in consultation with Donovan E. Walker, Lead Counsel, Idaho Power Company. IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 14 REQUEST FOR PRODUCTION NO. 10: Please explain why the PPA provided to Grand View on December 2, 2011, contains a clause in Section 1.12 addressing "low wind availabilty." RESPONSE TO REQUEST FOR PRODUCTION NO. 10: The "low wind availabilty" referenced in Section 1 .12 contained in the power purchase agreement was used as a starting point for the initial negotiations of the draft power purchase agreement and inadvertently was not removed in this initial draft template. As this draft agreement was clearly marked as an initial draft agreement for discussion purposes, this and any other items needing correction or further negotiations would have been reflected in a final agreement. The response to this Request was prepared by Randy C. Allphin, Senior 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 GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 15 REQUEST FOR PRODUCTION NO. 11: Please explain whether the PPA provided to Grand View on December 2, 2011, accounts for seasonal differentials in avoided cost rates. If it does account for seasonal differentials in avoided cost rates please Document that differential with copies of all studies, notes and information explaining the differential and how it is reflected in the avoided cost rates in the PPA. RESPONSE TO REQUEST FOR PRODUCTION NO. 11: The draft agreement provided on December 2, 2011, includes Appendix F, "Monthly Energy Prices." Appendix F contains a list of individual monthly Heavy and Light Load prices for every month of the proposed contract term. These prices are a monthly Heavy and Light Load summary of the individual hourly prices established using the IRP methodology. Thus, not only do these prices reflect seasonal price differentials but also monthly Heavy and Light Load price differentials. Provided on the confidential CD is an Excel file with the IRP methodology files and inputs. The confidential CD wil be provided to those parties that have signed the Protective Agreement in this proceeding. The response to this Request was prepared by Randy C. Allphin, Senior 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 GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 16 REQUEST FOR PRODUCTION NO. 12: Idaho Power admitted that it provided Grand View with a contract on December 2, 2011 that contains rates substantially below the rates it offered to Interconnect Solar in October 2011. Please provide all Documentation supporting the change in avoided cost rates between October 2011 and December 2, 2011. A. Did the Idaho Public Utilties Commission approve the reduction in avoided cost rates reflected in the Solar PPA offered to Interconnect Solar and the Solar PPA offered to Grand View two months later? If so, please provide Documentation showing said approval and provide copies of all authority relied upon to effect the change in avoided cost rates. B. Please Document Idaho Power's internal decision to change the IRP methodology inputs that resulted in lower avoided cost rates between offering Interconnect Solar its PPA in October and the December 2 PPA offered to Grand View. Include all notes, memorandum, Board of Directots minutes and agenda and any other writing Documenting the decision to change the inputs resulting in lower avoided cost pricing for Grand View on December 2, 2011, from the avoided cost pricing offered to Interconnect Solar in October, 2011. RESPONSE TO REQUEST FOR PRODUCTION NO. 12: Please see the Company's response to Grand View's Request for Production NO.8. A. Idaho Power applied the Commission-approved, I RP-based, negotiated avoided cost methodology. The authority relied upon is the Commission's various orders implementing this methodology and commenting upon its use in various IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 17 contracts and proceedings. These orders are publicly available, and are not individually included with this response. B. Please see the Company's response to Grand View's Request for Production No. 12.A. There are no Board of Directors' minutes or agenda related to this Request. Idaho Power applied the methodology as stated above, and there was not a decision point escalated for approvaL. The response to this Request was prepared by Randy C. Allphin, Senior Energy Contracts Coordinator, Idaho Power Company, in consultation with Donovan E. Walker, Lead Counsel, Idaho Power Company. DATED at Boise, Idaho, this 13th day of March 2012.\ \. S B. WILLIAMS orney for Idaho Power Company IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY - 18 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 13th day of March 2012 I served a true and correct copy of IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Kristine Sasser Deputy Attorney General Idaho Public Utilties Commission 472 West Washington P.O. Box 83720 Boise, Idaho 83720-0074 -- Hand Delivered U.S. Mail _ Overnight Mail FAX _ -- Email Kristine.Sasser(ápuc.idaho.gov Grand View PV Solar Three, LLC, and Grand View PV Solar Four, LLC Peter J. Richardson Gregory M. Adams RICHARDSON & O'LEARY, PLLC 515 North 2¡th Street (83702) P.O. Box 7218 Boise, Idaho 83707 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email peterCcrichardsonandoleary.com gregCcrichardsonandoleary. com I \ ~~BOillams -- IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF GRAND VIEW PV SOLAR THREE, LLC, AND GRAND VIEW PV SOLAR FOUR, LLC, TO IDAHO POWER COMPANY -19 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-12-01 IDAHO POWER COMPANY RESPONSE TO GRAND VIEW'S REQUEST FOR PRODUCTION NO.1 Page 1 of 175 ~hin, Randy From: Sent: To: Cc:Subje: Atchments: Peter RichardSQn rpeter~richardsonandoleary.coml Tuesday, February 15, 2011 5:47 PM Allphin, Randy robertpauI08~gmaii.com; Walkér, DonOVan FW; G~hd V~ Two 87~ 8760_KWH_ldaho (1 ).xlsm; Document.pdf Rady here is the request letter and an excel spreadsheet with the 8760. There are two notes you need to make, fist same of the numbers are negative to account for auxiliar load. Also it does not account for Daylight Savings Tiie or leap year. Pete Richardson Richadson & O'Lear 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 ! SIG:4d5b046f272541665320336! 1 Page 2 of 175 lUCll0N & Q'IfE4RY. PU ATTIlItNEYS AT l". Peter Richardson Tel: 208.9Ja.790 i 1'"", 208.9311.7904 p'l"~ IÌ( hard. 0 n i odol "'y.(O", p.o. 8"" 7218 Bol...iO 83707 . 515 N. 27th 5,. 801". lO 113702 Febry 15,2011 Randy Allphin Senior Planing Admistrator Idao Power Company 1.221 West Idaho Boise, Idaho 83702 VIA ELECTRONIC AND U.S. MA Re: Grand View Solar PV II Dear Randy: As I promised in our meetng ths afmoon I am writing to formally request that Idao Power provide Ord View Solar with Idao Power's avoided cost calculation bas on the 8760 hour production estimates. The spreadsheet is quite large, so I have sent it to you as an excel fie via electronic mal today. Please let me know if you would like for it to be saved to a disc for your use. I understand that due to others mang similar requests that we should expect your response by the end of next week. Than you for your time. .Å-._ RICHARDSON & O'LEARY, PLLC Cc: Donovan Walker THESE- PAGES OF THE ATTACHMENT ARE CONFIDENTIAL AND Will BE PROVIDED TO THOSE PARTIES THAT HAVE SIGNED THE PROTECTIVE AGREEMENT Page 13 of 175 Allphin, Randy From: Sent: To: Cc: Subject: Peter Richardson rpeter~richardsonandoleary,coml Wednesday, February 16, 2011 9:24 AM Allphin, Randy robertapauI08~maiLcom; Walker, Donovan RE: Grand View Two 8760 Understood. We wìll get that to you today. Peter Richadson Richardson & O'Lea 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 From: Allphin, Randy (mailto:RAllphin(Qidahopower.com) Sent: Wednesday, February 16, 20119:22 AM To: Peter Richardson Cc: tObertpauI08~gmail.com; Walker, Donovan Subject: RE: Grand View Two 8760 I used line 11 as an example as I am need to know what hour of what day each of the Iînes represent, the best would be if you could add day and hour to each line. I do not belîeve we wil need anything else, but I qualify this that until we start plugging the project into the model I wil not know for Sure. Randy From: Peter Richardson (mailto: peter(richardsonandoleary .com) Sent: Wednesday, February 16, 20119:17 AM To: Allphin, Randy Cc: robertpauI08~gmail.com; Walker,. Donovan Subjec: RE: Grand View Two 8760 Randy, to be clear; the spread sheet has the genertion number, but we are rug down what hour and what day line i 1 represents, correct? Is there anyting else that your AURORA folks need other than that. -Pete Peter Richadson Richardson & O'Lear 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 From: Allphin, Randy (mailtmRA IIphin(9idahopoer.coml Sent: Wednesday, February 16, 2011 9:11 AM To: Peter Richardson 1 Randy Page 14 of 175 cc: robertpauI08(QgmaH.com; Walker, Donovan Subject: RE: Grand View TWo 8760 We can accommodate both runs, however I cannot begin either until I get the final estimated Kwh ge.neration, then once i get these values we wil need to format the data into a form that the model can use., as I stated in our meeting the model runs require a couple days to complete, adding a second run wil add a couple days to our response time to your original request. From: Peter Richardson (mailto:peter(Qrichardsonandoleary.com) Sent: Wednesday, February 16, 2011 9:02 AM To: Allphin, Randy Cc: robertpauI08(Qgmail.com; Walker, Donovan Subjec: RE: Grand View Two 8760 Good mornng, Randy.&n bsp; We would like for your folks to ru the model twce, assummg two possible on line dates -- December 31 ,2011 and December 31,2012. So, we would like to see the AURORA number for each date. There may be opportties to build both projects (Grand View I and II) at the same tie, but we would lìke the flexibi1tyat this time to see bot on line dates. As to understanding liie 11; we are contactiig the modeling exper who produce the excel spreadsheet this momiig to answer your question. Given the time pressure we are under, with the federal tax credit expiring at the end of this year and the state ta rebate expirig at the end of June, we would hope that the uncerainties surounding contract ters wil be resolved expeditiously. Peter Richardson Richardson & O'Lear .515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 From: Aiiphin, Randy (mailto:RAllphin(Çlidahopower.com) Sent: Wednesday, February 16, 2011 6:44 AM To: Peter Richardson Cc: robertpauJ08(Qmail.com; Walker, Donovan Subject: RE: Grand View Two 8760 Thank for this information, To be sure I am reading your file correctly - what day and time is the 21 8.384 on line 11 associated with -I assume January 1, but what time of that day? Also, I need your estimated scheduled online date so that we can run this model beginning with that date, also what term of contract do you want? Randy From: Peter Richardson (mailto:peer(Qrichardsonandoleary.com) Sent: Tuesay, February 15, 2011 5:47 PM 2 Page 15 of 175 To: Allphin, Randy Cc: robertpauI08(Qgmail.co; Walker, Donovan Subjec: FW: Grand View Two 8760 Randy here is the request letter and an excel speadsheet with the 8760. There are two notes you need to make, first some of the numbe are negative to account for auxilar load. Also it does not account for Daylight Savings Time or leap year. Peter Richardson Richason & O'Lear 515 N. 27th Street Boise, Idao 83702 (208) 938-7901 .....~- This trsmsson may contain inforon th is privilege confidetil anilor eieml't frm disalos UT under applicale law. Ifyoiill nct the intened reipient. you ar he notified tlt any disclosure, copy distbution, at use of the infor:ion contained h=n (inclUdng any reUance ther) is STRCTI Y PROHIBIT.. lfyou reeived this trsion in err, plew îiediately conta iJe sener and desy the materal in its entiret. whet in electonic or har coy format. Thii you. 3 Page 16 of 175 ~hinlRandY From: Sent: To: Cc: Subject: Allphin, Randy Thursday, February 17, 2011 12:40 PM 'Robert Paul' Peter Richardson; Walker, Donovan RE: Answers 8760 Tracking:Recipient 'Robert Paul' Peter Rletardson Walker, Donovan Read Read: 2/17120111:30 PM Robert, at a glance this looks like what we need, I have forwarded it to our analyst to put in final fortt for input into our system. If he has any questions I wil get back to you. Just looking at this data, it wil probably be a day or two before we have it in the final form. With Monday being holiday for us, I would expect the first runs of the model wil start Tuesday or Wednesday of next week, results should be available late next week or early the following week. As we discussed, once we get these results we wil need to work through the precise pricing schedules, performance guarantees etc, Randy From: Robert Paul (mailto:robertpauI08(ggmail.com) sent: Thursay, February 17, 2011 11:04 AM To: Allphin, Randy Cc: Peter Richardson Subject: Re: Answers 8760 Randy, let's tr this. Attached find 8760 with a higher resolution, both in data and descrptions. While ths data predicts performance from one manufactuers Monocrystalline cells, it is possible in the fial technology selection, we may employ either ths manufacturer or a different brand, we ca expect similar perormance in the same hours. We just don't want to be tied to one manufacter at ths stage. In any case Idaho Power wì1 be paying for actual production. I wì1 say that daylight savings times and such wil have little impact as anyone hour shift, will have little impact on actual kWh produced. As the sun comes up, or goes down, the arays will star or stop producing in ver small increments, too small to drive the inverers to start or stop generating AC power. Much as wind tubines need a mimum cut in speed to operate, as opposed to simply tung the blades, the inverers need to see a minimum collectve value to trgger the AC conversion. Regards, Rober A. Paul On Thu, Feb 17, 2011 at 9:39 AM, Allphin, Randy "-RAllphinaldahopower.com;; wrote: 1 Page 17 of 175 i see his daes and hour only extend through Jan 4th. I know the question wi cQte up in regard to how the data handles daylight savings time chage, so to prevnt that question would you please have the date and times extended over the entire 8760 hour, tht way we wil have your exact data and we do not need to do any guessing. Randy From: Rober Påul (maílto:robepaulOSiqgmail.com 1 Sent: Thurday, Februar 17, 2011 9:09 AM To: Allphi, Ray Subject: Anwers 8760 Randy, here is the response from the engieer who created the 8760 Regards, Rober ---------- Forwarded message ---------- From: Ray Sundstrom .:rayWwholearenergy.com:: Date: Thu, Feb 17~ 2011 at 8:53 AM Subject: RE: Fw: Anwers 8760 To: roberapaulO8cfgmaiL.com Hi Robert I have added dates and times for the fist 4 days. The ret of the file just continues through all th days of the year with outputs for each hour. I notice that the is some variation in the results and each day doesn't smoothly increase each hour until sumer and then decrease smoothy. The weathr files used ar sttistical records so I assume they are including random varation as would be seen in reality. Thi file prbably cannot be loaded into a simulator DOW since I have added lines and columns so beware. Ray 2. Page 18 of 175 Ray D. Sundsm eTO, Who1ear Energy Inc. 40&-300-4730 ------- Orgial Message -------- Subject: Fw: Anwers 8760 From: roberpaul08(ggmail.com Date: Thu, Febru 11,2011 6:05 am To: "Ray Sunstrm" ""ray(wholeaengy.cot Ray, sorr to make this more cOlllicated, could you add a date an time Hl1e to the 87601 See utility request below. Regards, Robert A. Paul ------Originl Message.--~--- From: Rady Allphin To; Robert Paul To: Pet Richason Subject: RE: Answers 8760 Sent: Feb 17,2011 6:57 AM As ths may make sense, it has me totally confued. Would you please add a colum to your spread sheet with the day and tie for each line of data. Tha. Ray ----Orgi Message----- From: robertpau108(gil.com (miiltbe08tßgmil coml Sent: Wednesdy, Febru 16, 2011 11 :52 AM To: Alphi Rady; Peter Richadson Subject: Answers 8760 Randy, I looked up the sunrse an sunet for the Grand View location and they are 7:23am and 4:46pm on Januar 1,201 1. The fit hour wíthpower generted is the 10th line (218.384KWH) so I assume that is the 9am to lOam period. Th works out correctly if the fist line (OKWH) is l2am to lam, etc. The last power generated that day is 3432.88KWH whch would be the 3pm to 4pm period. That does set in the middle of the sunrse an sunst nwnbe so it makes sense. I assume tht the hour blocks that include sunrse and sunset do not generte enough power to meet the minimum voltage on the inverer so there is no powe generted for those hours. I don't know why the first hour is 0 instead of -4.98314. It is probably some start-up anomaly of the simulator. The errr should be negligible. I hope this helps" Tha, Rady Sent via BlackBer by AT&T 3 Page 19 of 175 Th trion may conta innnation tht is pnvileged, oofiden anor exempt from dilos unde appDcable la. If you ar not th ined reipiem you ar herby notifi tht an dilo$U, C:Opyil, distribution or use of th infotion conta he (inclu an relia th) is STRCTY PR.OHIBITED. If you reive th trmisson in er, ple ìmtely contat th seer an des th màiil ii it enti, wheth in elctonc or ha copy for Th you. Sen vi BlakBer by AT&T Rober A. Paul Alterative Power Developent, Norwest, I. 515 N. 27t Stree Boise, ID 83702 760-861-1104 Emai: robepaul08Ci.com Rober A. Paul Alterative Power Developent, Nortwest, LLC 515 N. 27th. Stree Boise, ID 83702 76()861-1104 Emai: roberpau08(ØgmaiLco 4 THESE PAGES OF THE ATTACHMENT ARE CONFIDENTIAL AND WILL BE PROVIDED TO THOSE PARTIES THAT HAVE SIGNED THE PROTECTIVE AGREEMENT Page 24 of 175 ~hin. Randy From: Serit: To: Cc: Subject: Pagoaga, Richard Friday, February 25. 2011 11 :29 AM Allphin, Randy; Darrington, Michael DeVol, Philp; Stokes, Mark Grandview Solar Two & AURORA Randy/Mike, I was having rnajor problems running the PURPA runs in AURORA (this is the version With 2009IRP). None of the PURPA runs were working. Morgan and I worked late last night to debug the problem then meet again this morning. We finally found the problem and made the necessary fix. I have now started running Grandview Solar Two. I wil analyze the output with Mike Monday morning. Thank you, Rich Pagoaga Jr. IDAHO POWER COMPANY Power Supply Planning (208) 388~a975 1 Page 25 of 175 ~hini Randy From: Sent: To: Subject: robertapauI08~mail.com Thursday, March 10, 20112:12 PM Allphin, Randy; Peter Richardson Re: Dra Grand View Solar II purchase power agreement Than you Mr. Allphi. Alow us a few days to review and comment. We appreciate your efforts in helping to brig Grand View PV Solar Two to frtion. War Regards, Rober A. Paul Sent via BlackBerr by AT&T From: "Allphin, Randy" ..RAllphiCfidahopower.coin:; Date: Thu, 10 Mar 2011 13:59:43 -0700 To: 'roberapaul08€ygmail.com'..roberapaul08CfgmaiL.com:; Cc: 'Peter Richardson'..peterCichasoandolear.com::; Walker, Donovanc:Walercældahopower.coj: Subject: Draft Grd View Solar II purchase power agreeent Mr. Pauli As you requested attached is a draft PURPA purchase power agreement for your proposed Grand View II 20 MW sOlår project. The pricing contained within this proposed agreement is based upon the energy shape you provided that we then used to execute the IRP pricing modeL. ThiS draft agreement is för discussion purposes only and Idaho Power reserves the right to modify this agreement at any time until both parties have executed an agreed upon document. Only after agreement by both parties, execution of an agreement by both parties and approval of the Agreement by the Commission shall a binding commitment exist. Please review and contact me with any questions you may have. Randy_..MOle- This trsmssion may conta infonnation that is prvileged, cofidential andor exempt frm disclosur uner aplicable law. If you ar not Ibe intende teipient, you ar heieby notified thi iiy dicloure, clpying, distrbuliOl, Or use of tne informtion contined h~in (incliiing noy reliance ther!l) is. STRCTY PROHi:ITED. If you ~ve Ibis traìssion in er, pleae immediately contact Ibe sede an destroy the matial in its entirey, whether in electronic or ha copy funn. Thank you. 1 Page 26 of 175 Allphin, Randy From: Sent: To: Subject: Allphin, Randy Friday, March 25, 2011 1 :11 PM 'robertapauI08~gmail.com' Grand View solar II proposed pricing Robert, it was good meeting with you today. To recap - Grand View solar I - We agreed that if I can get my legal and management approval we wil execute an additional document that specifies that the project shall own all Environmental Attributes for the first 10 contract years, then Idaho Pow.er wIll own all Environmental Attributes the last 10 contract years. i have briefly discussed this with legal and management and was advised to work on getting the document created, no opposition to our idea at this time, but both legal and management have reserved their final decision to the final document. Grand View Solar 11- Based on the energy shape you had previously provided to Idaho Power we have ran that information through our IRP model, the resulting levelized price is $105.07 per MWh. The table below has the annual, seasonalized, and Heavy and light load prices. As you wil see I have included a July and August "Heavy load Peak hour price and Heavy load standard hour price". This pricing model provides a project that is able to generate more energy during our July and August peak energy times an incentive to do so. As i expressed, we need to work very hard to create at minimum a 50% Idaho Power ownership of the Environmental Attributes from this project. I believe the prices below are above what you were thinking and also with the peak hour pricing I assume this wil also help your economic models. I would again like to propose that we give serious consideration to 50% ownership for all Environmental attributes for the full term of the contract. I wil work on the draft document for Grand View Solar I and wil await to hear from you on Grand View Solar II before I begin drafting a proposed PPA. Nothing in this dOcument is to be considered a final offer Or commitment from Idaho Power Company. The parties are in negotiations on these issues and only after both parties have executed agreements and any required commission apprOVals have been obtained shall a binding commitment exist. Randy r I Energy Pr1cing I I. Season 1PI'¡C. JOg. . ("13.S(l%)..... .1 I lei$ôr'l2ÄPdcing,. . . . . lfol. 1 Page 27 of 175 Heavy and $7..28 March, .ApriiandMayLiØht Load Hour Diferential $3.24 ($4.04) Flat Heavy Light Flat Heavy Light Lóad Load Load Load Flat Hour Hour Year Hour Hour Pricin Price PriGe 2012 88.43 91.67 84.39 65.00 67.38 62.03 2013 90.44 93.68 86.40 66.47 68.85 63.50 2014 92.50 95.74 88.46 67.99 70.37 65.02 2015 94.60 97.84 90.56 69.53 71.91 66.56 2016 96.76 100.00 92.72 71.12 73.50 68.15 2017 98.96 102.20 94.92 72.74 75.12 69.77 2018 101.21 104.45 97.17 74.39 76.77 71.42 2019 103.51 106.75 99.47 76.08 78.46 73.11 2020 105.86 109.10 101.82 77.81 80.19 74.84 2021 108.27 111.51 104.23 79.58 81.96 76.61 2022 110.73 113.97 106.69 81.39 83.77 78.42 2023 113.25 116.49 109.21 83.24 85.62 80.27 2024 115.83 119.07 111.79 85.14 87.52 82.17 2025 118.46 121.70 114.42 87.07 89.45 84.10 2026 121.16 124.40 117.12 89.05 91.43 86.08 2027 123.91 127.15 119.87 91.07 93.45 88.10 2028 126.73 129.97 122.69 93.15 95.53 90.18 2029 129.61 132.85 125.57 95.26 97.64 92.29 2030 132.56 135.80 128.52 97.43 99.81 94.46 2031 135.58 138.82 131.54 99.65 102.03 96.68 Novembsr and Dec: .. Flat PriciO 106.12 108.53 111.00 113.52 116.11 118.75 121.45 124.21 127.03 129.92 132.88 135.90 139.00 142.15 145.39 148.69 152.08 155.53 159.07 162.70 Flat Heavy Load Hour Pricè 110.00 112.42 114..89 117.41 120.00 122.64 125.34 128.10 130.92 133.81 136.76 139.79 142.88 146.04 149.28 152.58 155.96 159.42 162.96 166.58 2 Page 28 of 175 '!hi", Randy From: Sent: To: Subject: Allphin, Randy Monday,. Apñl 04, 2011 6:58 AM 'Robert Paul' RE: Grand View Solar I -- CORRECTED Sharp 8760 for 1-axis tracking Robert, sorry I am getting lost using your Înstructions. Give me a call and we can talk it through. Thanks Randy From: Robert Paul (ma:FQulOSma.ail Sent: Thursday, March 31, 2011 4:09 PM Tø: Allphin, Randy Cc: Peter Richardson; BC Lees; Mark SCHER1 P.E. Subjed:: Re: Grand View Solar I -- CORRECTED Sharp 8760 for 1-axis tracking Randy, sorr for the confusion, We are submitting the ättached report as the basis òfprojecting anual energy calculations, Grand View PV Solar Two, LLC. To avoid furter confusion, please refer to the attached Report's tab k-l 1, "Monthy", last column "E..Grd" (AC energy -grd) And in the Hourly Tab, Kl1, "E Grd) and in the last colUI, 0-11, "Plant EOUTI MWHac. As mentioned this Report is prepared by SHA, as such I am hesitant to alter the Report and excert data as it may effect the data inte.grty. Regards, Rober A. Paul On Thu, Mar 31, 2011 at 2:01PM, Allphin, Randy oeR.llpbi(gdawer.co:: wrote: Robert, I see the tìtle for th is Grand View Solar I, as you know the contrct is in place for Grand View Solar 1. I am assumig this is data for Grand View Solar II. In lookig at the data I see two different colums with potential energy shapes tht ar dierent. Please copy and paste the hourly energy generation (in KWHs, AC) into a separate spreadsheet with just the shape you want us to use. The fonn being one KWH estimate for ever hour of at least a year period. Pleae do the conversion to KWH (AC) delivered to Idao Power ( it appears your fonn has watt hour as generated, is this DC or AC? we need AC) Thans Rady 1 Page 29 of 175 From: Robert Paul (mailto:roberpaul08t?gmaiL.com) Sent: Thurday, March 31, 2011 1: 11 PM To: Allphin, Rady çc: Pete Richardson Subject: Grand View Solar I -- CORRCTED Shar 8760 for I-axis trackig Hi Randy, we have received an updated revised 8760 review from SHAR. It may be wise to re-ru the Aurora Model, as ths report incorprates single axis tracker, which we believe will optimize our output. The 8760 data can be found in the "hourly'1 tab of the attched excel spreadsheet. Regards, Rober A. Paul te1.760.861.1104 ---------- Forwarded message ---------- From: Liang, Genevieve -cLiangG~sharsec.com:; Date: Thu, Mar 31,2011 at 12:17 PM Subject: Grand View Solar I -- CORRECTED Shar 8760 for I-axis tracking To: Rober Paul -croberapaul08~giaìi.coni;: Cc: Mark Scher -cmsçJer~ronacatalparer.com:;. peter(gchardsonandolea.com lees.bc~giaìi.coni Rober, Attached is the corrected 8760 for I-axis tracking; this is the full deliverable following on the corrected PVSYST report that Paul Wormser had sent. after you'd pointed out that the location was inco.rtct. Please replace the old I-axis 8760 Excel fie you have with this fie. 2 Page 30 of 175 Geneveve ~evlUMg M~oftJSaeP~~~am ~ ~ONCS,CQlltnCl SOLA ENGY SOLUONS GROW S901 Bols Aveue Hi ae. CA 92641 Tt'I: a14) 9Ø:411 Cell: (714) 33()6489I Fu; (114) 903:58 bUlww,sbtpc:sø SH Robe A. Pau Altetive Power Developen, Nortwes LL 515 N. 27th.. Str, Bois ID 83702 76O61~1104Eti: ro08fi.ca .._- " Page 31 of 175 ~phin! Randy From: Sent: To: Cc: Subject: Traçking: Allphin, Randy Tuesday, April 19, 201112:48 PM 'Peter Richardson'; Robert Paul Walker, Donovan; Williams, Jason RE: Grand View Draft REC, Pete's 2nd Edits ReçÎpient 'Peter Richardson' Rober Paul Walker. Donovah Willams, Jason Read Read: 4/191201112:48 PM Peter - sorry for not getting back to you sooner, but let's plan on 1:30 here at Idaho Power. Randy From: Peter Richardson (n:neciiandlery.cJ Sent: Monday, April 18, 2011 5:04 PM To: Allphin, Randy; Robert Paul Cc: Walker, Donovan; Wiliams, Jason Subject: RE: Grand View Draft REC, Pete's 2nd Edits. Randy, we are available at 1 ;30 tomorrow. However, I am not sure what needs to be discussed. See you tomorrw... -Pete Peter Richardson Richadson & O'Lea sis N. 27th Street Boise, Idaho 83702 (208) 938-7901 From: Allphin, Randy rmall:MHbinOldabQpo.coJ set: Monday, April 18, 2011 2:35 PM To: 'Robert Paul'; Peter Richardson ce: Walker, Donovan; Wiliams, Jason Subjec: RE: Grand View Draft REC, Pete's 2nd Edits Robert and Peter, I have discussed your changes with Donovan Walker and Jason Wiliams (Idaho Power attorneys). We are thinking it would be best to discuss the issues either in person or on a conference call. In a quick review of our calendars it looks like Tuesday (April 1 9th) at 1:30 would work good for Us. Please let me know if this works for you and/or some alternate times. Randy i Page 32 of 175 From: Rober Paul rma1to:roagtjgm1.coJ Sent: Sunday, Apl 17,20115:37 PM To: Allphi. Randy Cc: Peter Richardson Subjec: Grand View Draft REC, Pete's 2nd Edi Hi Randy, We have reviewed Idaho Power's draft and submit our revisions for comments. I am concered that we not convert the Grand View REG's from an asset to a liabilty. Regards, Rober A Paul Altertive Power Development, Nortwest, LLC 515 N. 27th. Street, Boise, il 83702 760-861-1104 Email: roberpauI08Céai.com ...--- Ths trsmon ma contain inontion that is pnvilc:ged, confidential and/or exemt from disclosure uner applicale law. If you are not the intendc:d reipien, you are herby notific: tblt any disclos, copying, distnbution, 01' use of the informtion containe herc:in (including any rc:liance thereon) is STFJCTL Y PROHffITD. If you recc:ved ths trmission in mol', pleac: immc:diately contact the sender and destry the materal in its entire, wheter in electrnic or hard coy formt. Thank you. !SIG:4daca08f3341580912961 ! 2 Page 33 of 175 ~hln, Randi Fro:Set: To:Su:Atment: Pagoaga, Richard Friday. April 22, 201111:17 AM Allphin, Randy Grand View Solar Two Tracker 20 MW Scaled_4-13-2011_New Escalation Me.thod.xlsx Grand Viw Solar Two Traker 20 MW Scaled_ 4-13-2011_New Escalation Method.xtsx 1 Page 34 of 175 ~hin, Randy Fro: Sent: To: Subject: Allphin, Randy Friday, April 22, 2011 11 :29 AM robertpauIO~gmail.com Grand View Solar two prposed pricing Robert- listed below are the proposed annual average pricing for the proposed grand view solar II project based upon the energy shape you previously provided. These prices wil be seasonalized and broken down into heavy and light load hour pridng. Please review and let me know if you wish for me to take the next steps on developing the exact pricing schedule. i wil wait to hear from you before I do any additional work on this agreement and pricing. Randv 2012 $87.37 2013 $89.99 2014 $92.69 2015 $95.472016$98.34 2017 $101.29 2018 $104.33 2019 $107.46 2020 $110.68 2021 $114.00 2022 $117.42 2023 $120.94 2024 $124.57 2025 $128.31 2026 $132.16 2027 $136.12 2028 $140.21 2029 $144.412030 .$148.75 2031 $153.21 1 Page 35 of 175 ~hin, Randy From: Sènt: To: Cc: Subjec: Peter Richardson rpeter~rìchardsonandolea.coml Wednesday, June 08, 2011 11 :01 AM Walker, Donovan; Allphin. Randy Robert Paul Grand View PV Solar Two Contract Donovan, we are wiling to sign the contract with the REC language you have ¡twe make it contingent upon whether the Commissionspecifically requires that language. In other words we sign and submit two versions at the contract; one with the language and you argue for and one without and we accept the jUdgment of the COmmission as the final outcome. I have seen the company do that on other issues with PURPA developers. 1 .chin, Randy From: Sen: To:Subje Peter Richardson rpeer~r1chardsonandoleary.coml Monday, June 27, 2011 4:42 PM Allphin, Randy Grand View PV Solar II Randy, what Is the status of our PPA for Grand View PV Solar II? .Pete 1 Page 36 of 175 Page 37 of 175 ~hinlRandy From: Sènt: To: Subject: Peter Richardson rpetet(iriehardsonandolea.coml Thursday, June 30, 2011 9:21 AM Walker, Donovan; Allphin, Randy Grand View Solar PV Two PPA Géntlemeni can you update me as to the status of our Pl'A for Grand View TwO? We are starting construction on One next week and are eager get started on Two. We have the Conditional Use Permiti site control etc etc. So We are ready to move forward. Thanksi -Pete 1 Page 38 of 175 ~hinJRandY Fro:.Sø To: Subjeø: Peter Richardson (pteorlchardsonandOleary.coJ Wednesday, July 06, 20115:13 PM Walker, Donovan; Allphin, Randy Grand View Solar II Meeti I would like to schedule a meeting to discss our contact for Grand View PV Solar Two. We are open tomorrow and Friday. No more than 30 minutes or so is all we need. Thanks, -Pete 1 Page 39 of 175 ~hin, Randy From: Sent: To: Cc: Subject: Attachments: Peter Richardson rpeter~richardsonandoleary.coml Wednesday, July 20, 2011 6:52 PM Allphin, Randy; Walker, Donovan Robert Paul Contract Requests Grand View PV Solar II and IV Document. pdf - - - - -Original Message-- - -- From : Digital Sender (mail to: digi talsenderlrichardsonoleary. com) Sent: Wednesday, July 20, 2011 5:48 PM To: Peter Richardson Subject: Please open the attached document. This document was digitally sent to you using an HP Digital Sending device. Richardson Oleary. 1 Page 40 of 175 lliCHAllllSON &. Q'J....1ARV. PU ATTORNltYS AT LAW Peter Richardson' To!: 208.~ia.790 1 I'u: i08.9;\8-7904 prto ,(i i ich.rds..nandoJ nry.com I'.(). Box 1118 B..¡sr. II 8;\71)7 - ~I ~)4. 27rh Sr. Bois~, JO 83102 lily 2, 2011 Rady Allphin Setiot Planng Adminstator Idåho Power Conipany 1221 Wes Idaho Boìse, Idao 83702 VIA ELECTONIC AND U.S. MAIL Re: Grand View Solar PV II, and IV Dear Rany: I am wrtig to fonnallY reuest that Idaho Power provide Grand View Solar II and IV with Idaho Power's avoided cost calculation basd on the same 8760 hour prouction estes I have provided you with for Grand View Solar II. Because Orad View Sola II and IV wìii be essentially at th same site as 'II,' use of the sae spreadshee should be aceeptale. Please assuie an on lie date for both ón December I, 2012 and a project caacity siz of20 MW for each of these new prjects: Along with the avoided cost calculation, would you pleae provide me with a curent dr contrct in word ronnat so th we ca :fll in the requid inonnaton? Than you for your time.S~f)~p_~'..... .... RICHARDSON &. O'LEARY, PLLC Cc: Donovan Walker ~hln, Ranct From: Sent To: Cc:SubjlØ Atthmenta: Page 41 of 175 Pagoaga, Richard Friday, July 22, 20114:12 PM Allphin, Randy DeVol, Philp Grand View Solar Two 80 MW Grand View Solar Two 80 MW _3-9-2011.xlsx Randy, Grandview Solar Two 20 MW $105.01 Grandview Solar TWo 80 MW $195.09 Rich Pagoaga. 11". IDAH POWER COMPAN Power Supply Planning (20) 3a8~fi975 1 Page 42 of 175 .chin, Randy From: Sent: To: Cc: Subject: Peter Richardson rpeter~richardsonandoleary.CQml Friday, July 29,2011 3:18 PM Walker, Donovan; Allphin, Randy Robert Paul; Williams, Jason; Stokes, Mark; Grow, Lisa; Blackburn, Rex RË: Grand View PV Solar Two Contact. Donovan, we Can't sign a contract with a provision that destroys the value of the RECs -- which is what leaving an opener to accommodate subsequent changes in the law does. By law, PURPA contracts are not subject to changes in markets or law stlbsequent to their execution. The PURPA avoided cost rate does not include payment for RECs is clear from every avoided cOst rate order issued by the PUC. If Idaho Power wants to purchase our RECs we wil entertain all reasonable offers, but we are not going to give them to you for nothing. Your insistence on ownership I or a c1atlse that destroys the valtle of the RECs prevents us from marketing our private propert and wil not withstand legal scrutiny. I am preparing our complaint now and hope to have it filed first thing next week. Grand View ", like all projects, wil experience additional cost$ due to the delay inherent in prosecuting a complaint. It is not necessary for us to go down this road, but if Idaho Power continues to insist on taking our RECs without compensating us, we simply have no choice. Be aware that the additional costs incurred by Grand View are needless and that Idaho Power may be liable for causing us to incur those costs. We are sorry it has come to this. Please call me at your earliest convenience if there is any room for movement on this important issue on Idaho Power's part. ~Pet From: Walker, Donovan (mailto:DWalkertWldahopower.com) Sent: Tuesday, July 26, 2011 4:33 PM To: peter Richardson; Allphin, Randy Cc: Robert Paul.; Williams, Jason; Stokes, Mark; Grow, lisa; Blackburn, Rex Subjec: RE: Grand View PV Solar Two Contact Peter, i am somewhat confused by your complete rejection of submitting the. signed contract to the Commission for a deterrrrination as to the provision in the contract that references the Environmental Attributes - primarily because the Company suggested language to do $0 specifically to accommodate your request to proceed in that manner, which appears below ("Donovan, we are willng to sign the contract with the REC language you have if we make it contingent upon whether the Commission specifically requires that language.") I gues$ that is no longer your request... As previously communicated to you, Idaho Power does not believe it to be prudent to enter into a 20 + year contract that: (1) affrmatively waives any possible ownership claim or (2) remains completely silent as to environmental attributes - as you have requested below. Idaho Power believes that at a minimum a reservation of rights based upon a subsequent change of law is a valid, prudent, and reasonable contractual term that serves the best interests of Idaho Powets customers who ultimately have to pay the price for your client's sale of power. If a further clarification as to REC ownership is desirable by your client, and has value to your client then as you have been made aware we are wiling to discuss and negotiate provisions that would clarify ownership for yo.ur client. i am sorry that you have rejected such discussions, as well as your own suggestion to sign a contract and submit it for the Commission's determination. If you wish to discuss further please do not hesitate to contact me. -Donovan 1 Page 43 of 175 From: Peter Richardson (mailto:peter(grichardsonandoleary.oom) sent: Wednesday, July 20, 2011 6:50 PM To: Walkert Donovan; Allphin, Randy Cc: Robert Paul; Wiliams, Jason Subject: RE: Grand View PV Solar Two Conta Donovan: Please confirm receipt of this email, thank you. We have carefully considered your alternative to resolving our dispute over REC language. You are correct in your assumption that Grand View Solats position remains that either (1) the contract is silent on REC ownership or (2) the contract disavows any ownership on Idaho Powets part. The language you propose is cOntrary to federal law on a QFs entitlement to a fixed obligation at the time of signing a contract. Changes subsequent to entering into the fixed obligation simply cannot be used to alter existing contracts. Your proposed language also effectively destroys any ability to market RECs on anything other than a year to year contract. It therefore puts us ín the untenable position of signin a contract, the tens of which are wholly unacceptable to my client, and if approved would likely make the project un-financeable. We rù the risk of being a pary to a contract that we canot perorm on. That exposes my client to signifcant liabilty for faiure to perform and liquated damages if it tus out to be un-fianceable. i have therefore recommended to my client that it lodge a complaint against Idaho Power at the puc if you continue to insist on this provision. Probably the sooner the better. So, if you would please respond that you wil accept our final offer to have the contract remain silent, or that Idaho Power stil insists on the offending language by this time next week, we wil proceed accordingly. Please call if you have any questions. .Pete Richardson From: Walker, Donovan (mailto:DWalker(gIdahopower.com) Sent: Sunday, July 10, 2011 10:39 AM To: Peter Richardson; AUphint Randy ce: Robert Paul; Wiliams, Jason Subjec: RE: Grand View PV Solar Two Conta Peter, In response to your July 9 e-mail requesting IPC to tender a contract, there is currently no agreement on the terms of the contract. I apologize that we were unable to schedule the meeting you requested last week, although trading voice mails in that regard. IPC has tendered a draft contract for this project, which was rejected by the project. Where we le.ft, I believe, is evidenced by your June 8 e-mail that I have attached below. After the comments you filed in the Clark Canyon matter, i am assuming that this is stil the project's position with regard to the REC language in the draft contract? Is that correct? If so, pursuant to your June 8 request below, IPC would agree to submit a signed contract for the CommissIon's review containing the current language in the draft -to which we would include language requesting the Commission to approve or reject the Article 8 language - and the parties wil accept that Commission determination. To clarify: the parties will sign the last tendered draft contract, to which you indicated the project was in complete agreement with- 2 Page 44 of 175 except for a change in the project name, and the Environmental Attribute language in Article 8. The contract would contain the cur-rent Article 8 language: "Under this Agreement, ownership of Green Tags and Renewable Energ Certificates (RECs), or the equivalent environmental attributes, directly associated with the production of energy from the Seller's Facility sold to Idaho Power wil be governed by any and all applicable Federal or State laws and/or any regulatory body or- agency deemed to have aut hority to regulate these Environmental Attributes or to implement Federal and/or State laws regarding the same." To which we wil add: "As of the date of this Agreement, Idaho Power seeks inclusion of the above language in Article 8. Seller seeks to have Article 8 remain blank. The parties have agreed to all other terms and conditions of this Agreement, and hereby agree to submit the issue of whether to include the above language in Article 8 or to leave Article 8 blank in this Agreement to the Commission for its determination. The parties intend to submit comments to the Commission supporting their respective positions, and hereby agree to abide by the Commission's determination of this issue in this Agreement. The final Order of the Commission in response to the inclusion of this Article 8 language wil be inc luded and become an integral part of this Agreement, which the parties agree to support and uphold." Please let me know how your client wishes to proceed. -Donovan From: Peter Richardson rpeter(irichardsonandoleary.com) Sent: Wednesday, June 08, 201111:01 AM To: &n bsp; Walker, Donovan; Allphin, Randy Cc: Robert Paul Subject: Grand View PV Solar Two Contract Donovan, we ar-e wiling to sign the contract with the REC language you have if we make it contingent upon whether the Commission specifically requires that language. In other words we sign and submit two versions of the contract; one with the language and you argue for and one without and we accept the judgment of the Commission as the final outcome. I have seen the company do that on other issues with PURPA developers. From: Peter Richardson (mailto:peter(Qrichardsona ndoleary.comJ Sent: Saturday, July 09,201112:05 PM To: Walker, Donovan; Allphin, Randy ee: Robert Paul Subject: Grand View PV Solar TwoContaet Donovan and Randy, this is a follow up to my prior communications relative to the contract for Grand View PV Solar Two. I know you guys are busy, but I think it is time for idaho Power to tender the contract. Let me know when we can hear- from you. -Pete 3 Page 45 of 175 ~hin, Randy From: sent: To:CcSubjAtents Peter Richardson (peter(§rîchardsonandoleary.com) Thursday, September 01,2011 9:34 AM Walker. Donovan; A11,phln, Randy robertpauI08~gmail.oom FW: image2011-Q901..3158.pdf Randy, I sent this request to you in July for Grand View PV II and IV, when may we expect to see the contracts? -Pete Pete Richadsn Richason & O'Lea, PLLC 515 N. 27th Street Boise, Idaho 8~702 (208) 938-7901 offce (208) 867-2021 cellpett?chatdsonaolea:.com From: Scnner sent: Thursay, setember 01, 2011 9:32 AM To: Per Richardson SUbjec: 1 Page 46 of 175 Darrington, Michael From: Sent: To: Subject: Attchments: Darrington, Michael Tuesday, September 06, 20113:12 PM Pagoaa, Richard FW: 3 31 2011 A1t Powe Dev - Grand View Solar II - Energy Profle 235)(13)(393 1 axisBT -Q-4 110316 2 000 04-11-2011.x1sx 3 31 2011 Alt Power Dev - Grand View Solar II - Energy Profile 235x13x393 1 axisBT -Q-40 1103162000_0411-2011.xlsx Rich: I am forwarding the original spreadsheetfor Grandview Solar II. The pricing analysis template is found on the 'Data Summary' tab. This is to conduct the pricing runs for Grandview Solar II, 11, IV. Thanks, Mike Fro: Darrington, Michael Sent: Monday, April 11, 201111:13 AM To: Pagoaga, Richard Subjec: 3 31 2011 Alt Power Dev - Grand View Solar II - Energy Profile 235x13x393 1axisBT-0-40 1103162000_04-11- 2011.xlsx Rich: I have attached the data for Grandview Solar II Aurora Pricing Analysis. Please see the 'Data Summary' tab. Let me know if you have any questions. Thanks, Michael Darrington Idaho PQwer Company Power Supply Planning (208)388-5946 mdarringtondYidahopower.com 1 Page 47 of 175 ~hini Randy From: Sørtt: To: Cc: Subjøct: Allphin, Randy Tuesday, September' 06, 2011 9:31 AM 'Peter Richardson'; Walker, Donovan robertpauI08~gmail.com Grandview II and IV Tracking:Recipient 'Peter Richarson' Walker. Dönovan roberpauI08(gmail.com Read Read: 9/61011 9:57 AM Peter, As these contracts wil contain the same Emtirohhiental Attribute language which Grand View Solar objectslo and has filed a complaint at the IPUC. Idaho Power had assumed that Grand View solar would be waiting for the resolution of that complaint before proceeding with these contracts for projects 3 and 4. Based on your e-mail of September 1st this appears to not be the case. Idahò POwer wil prepare a proposed pricing schedule for each of these projects based on the energ shape you have previously provided for Project number 2 and wil incorporate those prIces into draft agreements. As you are aware, as directed by the IPUC Idaho Power is using the IRP methodology to establish pricing for all solar projec:ts larger than 100 Kw. It is our understanding that projects i, 3 and 4 are physically located in the same area, rather than 3 separate agreements would Grand view solar prefer to work on a single 60 MW agreement? Randy From: Peter Richardson (ma11t;geardnandlecomJ sent: Thursday, September 01, 2011 9:34 AM To: Walker, Donovan; Allphin, Randy Cc: robertpaul08(Qgmall.com Subjec: FW: Randy, I sent this request to you in July for Grand View PV III and IV, when may we expect to see the contracts? -Pete Peter Richardson Richarson & O'Leary, PLLC 515 N. 27th Street Boise, Idaho 83702 (208) 938..7901 office (208) 867-2021 cellpet(gchardsonadolea.com From: Scanner sent: Thursday, September 01, 2011 9:32 AM To: Peter Richardson SUbject: 1 Page 48 of 175 ~hinr Randy From: Sent: To: Cc: Subject: Attchments: Pagoaga, Richard Tuesday, September 06, 2011 1 :31 PM Allphin, Randy; Darrington, Michael DeVol, Philip Grand View Solar #3 & #4 Book1.xlsx Randy, Attached is the data that Grand View Solar One first sent us along with the generation form that i Would like them to fill out. It beho.oves the project to make sure this generation output is accurate as possible with regard to hours and daylight savings time. This forms enables the AURORA setup to accurate and fair. Thank you, Rich Pago8ga Jr. IDAHO POWER COMPANY Power Supply Planning (208) 388-6975 1 THIS PAGE OF THE ATTACHMENT IS CONFIDENTIAL AND WILL BE PROVIDED TO THOSE PARTIES THAT HAVE SIGNED THE PROTECTIVE AGREEMENT Page 50 of 175 Allphin, Randy From: Sent: To: Cc: Subjec: Attachments: Allphin, Randy Thursday, September 08, 201112:58 PM 'Peter Richardson'; robertpauI08~gmaii.com Walker, Donovan FW: Grandview III and IV Grand View Solar II hourly generation data.xlsx; Hourly Generation template.xlsx Tracking:ReCipient 'Peter Richardson' robertpauI08(gmail.com Walker, Donovan Read Read: 9181201112:59 PM Peter, I have not heard back from you on this e-mail I sent Tuesday, just wanted to confirm you have received it. Randy From.: Allphin, Randy sent: Tuesday, september 06,20113:33 PM To: 'Peter Richardson'; Walker, Donovan Cc rObertpaul08(ggmail.com; Darrington, Michael; Pagoaga, Richard SUbject: RE: Grandview II and iv Peter, We were starting up the IRP model runs for the Grand View II and IV using the data you had previously provided for Grand View Solar II. There appears to be an error in the data you have provided. I have attached the hourly generation spread sheet you provided. An example of this error is in July - that is from our interpretation of the data it appears there is generation coming frm the project between 4 and 5 am (sun is not up yet). To help clear up this issue i have attached a template we developed to aid projects in getting the generation data in the correct hours. A couple of the keys being the data must be in Mountain standard time and also adjusted for daylight savings time. To be able to make an accurate run of the IRP model, we wil need this generation data in the correct hours. Please insert the data from your spreadsheet into this spread sheet we have provided and e-mail a copy back to me Thanks Randy From: Peter Richardson rmailt:perIQIe&Q1 sent: Tuesdy, September 06,2011 10:09 AM To: Allphin, Randy; Walker, Donovan Cc:: robertpauI08(ggmail.com Subje: RE: Grandview II and iV Thank you Randy. Grand View PV Solar Two, Three and Four wil all be separate stand alone companies and each wil want a separate power purchase agreement with Idaho Power. We do not want to wait to get the execution ready contracts from Idaho Power while the complaint case wends its way through the process. I assume it won't take very 1 Page 51 of 175 long as the IRP methodology has beeh run for us for one and two and should yield identiCal numbers. Thank you for your atention to this matter. Can you give me a date when we can look for the agreements? -Pete Peter Richardson Richadson & O'Leary, PLLC 515 N. 21th Stret Boise, Idaho 83702 (208) 938-7901 office (208) 867-2021 cellpeter(chards.onadoleai.cott From: Allphin, Randy rma_8Aln_~r.cl sent: Tuesday, September 06, 2011 9:31 AM To: Petr Richardson; Walker, Donovan tc: robertpaul08(ggmail.com SUbjec: Grandview II and iv Peter, As these contracts wil contain the same Environmental Attribute language which Grand View Solar objects to and has filed a complaint at the IPUC. Idaho Power had assumed that Grand View solar would be waiting for the resolution o.f that complaint before proceeding with these contracts for projects 3 and 4. Based on your e-mail of September 1st this appears to not be the case. Idaho Power wil prepare a proposed pricing schedule for each of these projects based on the energy shape you have previously provided for Project number 2 and wil incorporate those prices into draft agreements. As you are aware, as directed by the IPUC Idaho Power is using the IRP methodology to establish pricing for all solar projects larger than 100 Kw. It is our understanding that project 2, 3 and 4 are physically located in the same area, rather than 3 separate agreements would Grand view solar prefer to work on a single 60 MW agreement? Randy From: Peter Richa rdson r in;pemPrlrdll.cJ sent: Thursay, September 01, 2011 9:34 AM To: Walker, Donovan; Allphin, Randy Cc: robertpaul08(QgmaiLcom Subjec: FW: Randy, I sent this request to you in July for Grand View PV II and lV, when may we expect to see the contracts? -Pete Peter Richardson'" ¡span;; Richardson & O'Lear,PLLC 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 offce (208) 867-2021 cell peter(ßchardsonandolea.com 2 THESE PAGES OF THE ATTACHMENT ARE CONFIDENTIAL AND WILL BE PROVIDED TO THOSE PARTIES THAT HAVE SIGNED THE PROTECTIVE AGREEMENT Page 54 of 175 ~hin,RandY From: Sent: To: Cc: Subject: Robert Paul (rObertpauI06~gmail.coml Thursday, September 15, 2011 5:50 PM Allphin, Randy Darrington, Michael; Pagoaga, Richard; Walker, Donovan; Peter Richardson; Clare Lees; Terry Walton Re: Idaho Power PURPA Project Estimated Hourly Generation, Grand View PV Solar Two Hello Rindy, In resnse to your request for on-linelin~serce dates for: Grand View PV Solar Two. Grand View PV Solar Three and Grand View PV Solar Four. 1) Grand View PV Solar Two:October 2012 2) Grand View PV Solar Three: December 2012 3) Grand View PV Solar Four: December 2012 Regards, Rober A. Paul On Tue, Sep 13,2011 at 6:49 AM, Allphin, Rady -eRAphi(gidahopwer.com;: wrote: Rober, th for ths data, I wil pass it onto the analysts that ru the modL. I see you have March 2011 as the estiated online date. What is a current estimate of online dates for II, il and IV? If you would please "reply to al" to ths e-mai your information wil go dictly to the tea that wil be rwg the numbers. Ths Rady From: Robert Pal. (malto:roberpaul08tWgil.com J Sent: Monday, September 12, 2011 4:46 PM To: Allphin, Rady Cc: Peter Richardson; Clar Lees Subject: ida. Power PURA Project Estited Hourly Generation, Grand View PV Solar Two Hello Randy Allphin, You had requested the estimated hourly generation from Orand View PV Solar Two, LLC. 1 Page 55 of 175 Please fid attached, Proieced PUR A Estimated Hourly Generation. Regards, Rober A. Paul Alterative Power Development, Nortwes, LLC 515 N.27th. Street, Boise, ID 83702 760-861-1104 Email: roberpaul08cmgmaiL.cQI ..--.-- This trisslon may cotain information that is prvileg, cOnfidetìl anor exempt fr disclosure unde aplicable law. If yoti aren.Qt the intened reipent, yo ar heby riotill th any disc1o, copng, distrbuon, or use of the infontion containe heren (including any reliane thern) is STRICTLY PROHIITED. If YOll receved this trission in eror, plea imediatey contact the seder and desoy the mateal in its eòire, wheter in electronc or hard copy forat. Thk; you. Rober A. Paul Alterative Power Development, Nortwest, LLC 515 N. 27th. Street, Boise, ID 83702 760-861-1104 Emai:roberapaul08fÆgmail.com 2 THIS PAGE OF THE ATTACHMENT IS CONFIDENTIAL AND WILL BE PROVIDED TO THOSE PARTIES THAT HAVE SIGNED THE PROTECTIVE AGREEMENT Page 57 of 175 Danineton, Michael From:Sen To: Cc: Subjeet Pagoga, Ricard Thursday, Denibø 01, 2011 5:46 PM Allphin, Randy; Darrngton, Michael DeVol, PhUip AURORA Runs Randy/Mike, I have fired off two AURORA runs that you requested: 1) Grandview Solar 2.4 (on the fastest machine) 2) Meadow Creek Wind 60 MW Rich Pag Jr. IDAHO POWR COMPANY Pow Supply Planning (208) 38875 1 Page 58 of 175 ~hin! Randy From: Sent: To: Subjec: Robert Paul £robertpauI08~gmail.coml Thursday, December 01 , 2011 6:57 AM Allphin, Randy RE: Status- PPA's Grand View PV Three & Four Rady, th. Hope. your time offwas all that. Regards, Rober On Dec 1,2011 6:55 AM, "Allphi, Randy" ':RAIlphitWdahopower.com:; wrote: Robert ~ I took some time off around thanksgiving and just now getting caught up on mye-mails. i wil let you know today or tomorrow on the timing of me getting draft contracts back to you. Couple of questions - in your e-mail you are inquiring about Grand view three and four, I assume you are also wanting a draft for number two? Grand view number one status - I see in this agreement the estimated first energy date was December 2010, last I spoke with you, you had advised that ground had been broken at the site and things were under way, i assume we wil be seeing more information as to the online date shortly? Randy From: Robert Paul (mailto:robertpaul08l§gmail.com) sent; Thursday, Decmber 01, 2011 6:21 AM To: Allphin, Randy; Peter Richardson; Be LEES Subje: Status- PPA's Grand View PV Thre & Four Hi Randy, We have emailed you on October 21 st and November 21 st as to the status of our PP A request, Grand View Thee and Four. i Page 59 of 175 When ca we have your response? Regards, Rober A. Paul ------..---Forwarded message ---------- From: "Rober Paul" oiroberpauio8rÆgmi.co~ Date: Nov 21, 2011 4:09 AM Subject: Status- PPA's Grand View PV Thee & Four To: "Randy Allphin" -:rallphin§idahopower.com~ Cc: "Petet Richardson" .(~chadsoigy.eonP, "Clare Lees" ~ci~box.com~ Hello Randy Allphin, Would you please reply with the status of the Grand View PV Solar Three and Grand View PV Solar Four, Power Puchase Agreeients. Below is Peter Richardson's inquiry date October 21, 2011. fr~ E.eter Richardson petercærichardsonandoleary.com t4 (! lAIIPhin, Randy" -:RAllphin(âÎdahopower.com==,fii.wal.kerOidahopower.comce- E.obert Paui .:robertapauI08cagmail.com== dat x hide ri, Oct 21, 2011 at 11 :35 AM SUbjec1 (! ~ . .. rand View PV Solar Three and Four Randy When wil we be getting the draf PP As for Grand View PV Solar Thee and Four? Peter Richardson ;I Page 60 of 175 Richardsn & O'lear, PLLC 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 office (208) 867-2021 cell peterichaionadolea.eo Rober A. Paul Altertive Power Development, Nortwest, LLC 515 N. 27th. Strt, Boise, il 83702 760,.861-1104 Email: roberapaulOScægnai.com ...",~e- 11 tranmiasiQl may oorttain itfo;iation that is prvileged, col)fideitiaJ anor exempt frm disclos underappUcable law. If you Ile not thé uiteided recipien you ar herby notified that ai disclosure, copying, distribution, or use of th informtion cotained heein (incluing anyrelìanc thereon) is STRICTI.Y PROHIIT. If you reve ths traisrnisQl in eror, pleaé iimediatelycotact th sede an deslr the ~iaI in its entiret, whether in eleeQlic or ha copy foral Than yo. 3 Page 61 of 175 ~hinl Randy From: Sent: To: Cc: Subject: Attachments: Peter Richardson £peter~richardsonandoleary.comi Thursday, December 01, 2011 8:13 AM Allphin, Randy; Walker, Donovan Robert Paul Grand View 1,2,3,4 questions - status Document-pdf l'andy, attached is a copy of my JULY letter requesting PPAs for Grand VIew 3 and 4. It Wäs sent to yoU prior to the Fourth of July Holiday. Multiple follow up requests have gone unanswered until this morning's reply that the Thanksiving holidav has delayed your response. We have been very p.atient, but we now need your attention to out request iti the near term. I wil respond to your questions, reproduced below, in turn... Robert -I took some time off around thanksgiving and just now getting caught up on mye"mails. I wil let you know today or tomorrow on the timing of me getting draft contracts back to you. Couple of questions - in your e-mail you are inquiring about Grand view three and four, I assume you are also wanting a draft for number two? Reply: We have a draft contract for Grand View number two. It is, in fact, attached as exhibit NO.1 raoul" Motion for Summary Judgment on the outstanding issue of REC ownership. See, http://www.DUc.idao,aovlinternetlcoseslelecIJPCIIPCE1115/jnternorIlGRAND96Z0V1EW9W0LARI20PVtlI2011:iZ 9MOTJON%20ANf)'MOAF1DAVIT.PDF Idaho Power's response to our motion is due on December 13. We have been ready to sign this contract but for the REC language for several months now. Grand view number one status - J see in this agreement the estimated first energy date was December 2010, last I spoke with you, you had advised that ground had been broken at the site and things were under way, i assume we wil be seeing more information as to the online date shortly? Reply: We have been in close contact with your Transmission Business Line and are going to pay the interconnect deposit soon, which wil, pursuant to the contract, trigger the on line date for Grand View One. Construction has, as you noted, begun and continues to prepare the site for panel installation. -Pete. Peter Ríchardson RÍchadson & O'Lea, PLLC 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 office (208) 867.2021 cell 1 .ehin, Rand)' Fro: Sent: To: Cc:Subj Atents: Page 62 of 175 P~.Rfçhar Fridy, Debe 02 201110=08 AM Allphin. Rand; Darrgt, Mioh DeVol, Philp Grandew Solar 24 PV So 20 MW _2011 lRP With tel$ ga an lOacLoo C8tb_No caacit paymen unl July 2016_12..2~2011.xIx Gradvew SOlar 2-4 PV Solar 20 MW)2011 IRP wi revisè gas and loa_l'C8tb_No capa payment untl July 2016_12~2..201.1.xlsx 1 Page 63 of 175 Allphin, Randy From: Sent: To: Cc: Subject: Attchments: Allphin, Randy Friday, December 02, 20112:12 PM 'Robe Paul'; 'Peter Richardson' Walker, Donovan Draft Grand View II, II and IV contrct Grand View Solar II draf PPA 12-2-2011.doc Tracking:Reçipient 'Robert Paul' 'Peter Richardson' Walker, Donovan Read Read: 121212011 4:13 PM Mr. Paul and Mr. Richardson - Attached is a draft Idaho Power PURPA agreement for your proposed Grandview H, II and IV 20 MW solar projects, This draft agreement replaces any previously provided draft agreements that have been exchanged between the parties as those previously provided draft agreements were clearly noted and provided as draft agreements for discussion purposes only. The parties never reached agreement on the terms and conditions within those previously provided draft agreements, nor did both parties ever execute those previously provided draft agreements. Based on the information you have provided to Idaho Power, it appears these three project would be identical; this draft would apply to all three projects. This draft agreement is for discussion purposes only and is not a binding commitment for Idaho Power to purchase energy from your project. Only after both parties have agreed to all terms and conditions, both parties have executed an agreement and the Idaho Public Utilties Commission has approved a proposed agreement for these proje.et shall a binding commitment exist. Randy 1 Arcle 1 2 3 4 S .6 7 8' 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Dra for Discussion Puoses Only FlR ENRGY SALES AGRE BETWN IDAHO POWER COMPAN AN TABLE OF CONTS TIT Defitions No Reliance on Idao Power Wårnties Conditions to Accep of Energy Term an Operatin Date Puhase and Sale of Net Energy Purchae Pnce an Metod ofPayeìt Envinmenta Atbutes Facilty an Iionneeton Meterig and Telemet Reord Opertíons Indemnficaton and InSlatce Force Majeu Liabilty; Dedicaton Seve Obligations Waiver Choice of Laws and Venue Disputes and Default Govemienta Authorion Commsion Order Succesors an Assigns Modifition Tues Notices Addition Ter an Conditions Seerabilty Counterars Enti Agreement Signs Appndix A ApendiB AppendiC AppexD ApndixE Draft for Discussion Puroses Ony Page 64 of 175 . Draft for Discussion Purpose Only Page 65 of 175 FIR ENRGY SALES AGREEMENT (Solar Project - Greater than i 00 kW) Project N are: Grand View Solar II Project Number: TilS AGREMEN, entered ino on ths _ day of 20 i 1 between (Seller), and IDAHO POWER COMPAN, an Idao corporation (Idaho Power), hereíaftr someties refered to colltively as ''Paries" or individually as "Par." WITNSSETH: WHREAS, Seller wìl design, consct, own, mainta and operate an elecc generation facíHty; and WHS, Seller wishes to sell, and Idao Power is willing to purchase, firm electrc energy produced by the Seller's Facilty. THEREFORE, In considertion ofthe mutual covenants and agreements hereinfter set fort, the Paries agree as follows: . ARTICLE I: DEFINIONS As used in ths Agreement and the appendices attached hereto, the following tenus shall have the following meanngs: 1. "Base Energy" - Monthy Net Energ less th 110% of the monthly Net Energy Amount as specified in pargraph 6.2 of this Agrement less any Net Energy tht is detenuined to be Surlus Energy as specified with this Agreement. 1.2 "Business Oays" - nieans any clÙendar day that is not a Saturday, a Sunday, New Yeats Day, Memorial Day, Indepndence Day, Labor Day, Thsgiving, Chrstmas or any other NERC recognized holiday. 1.3 "Çomnssion" - The Idao Public Utilities Commission. -1- Draft for Discussion Purpose$ Only Draft for Discussion Purpses Only Page 66 of 175 1.4 "Contract Year" - The period conuencing each calendar year on the same calendar date as the Opertion Date and ending 364 days thereafter. 1.5 "Delay Liquidaed Damages" - Damages payable to Idaho Power as calculated in paragraph 5.3,5.4, 5.5,5.6 and 5.8. 1.6 "Delay Period" - All days past the Scheduled Opertion Date until the earlier of the date (a) SeIler's Facilty achieves the Operation Date and (b) this Ageement is ternated. 1.7 "Delay Price" - The cuent month's Mid-Columbia Market Energy Cost minus the currnt month's Light Load Energy Price specified in Appendix E of ths Agreement. If this calculation results in a value less th 0, the result of ths calculation wiU be O. 1.8 "Designated Dispatch Facility" - Idaho Power's Systems Operations Group, or any subsequent group designated by Idao Power. 1.9 "Environmental Attbutes" means any and all credits, benefits, emissions redctions, offsets, and aIowances, howsoever entitled, attributable to the generation from the Facility, and its avoided emission of pollutants. Environmental Attributes include but are not limited to: (1) any avoided emssion of pollutants to the air,soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (2) any avoided emssions of carbon dioxide (C02), methane (CH4), nitrous oxide,hydtfluorocarons, perfuorocabons, sulfu hexafluoride and other grenhouse gases (GHGs) that have been deterned by the Unìted Nations Intergovennental Panel on Climate Change, or otherwse by law, to contribute to the actual or potential that of altering the Ear's climate by trapping heat in the atmosphere;1 (3) the reorting rights to these avoided emissions, such as REC Reporting Rights. REC Reportng Rights are the right of a REC Purchaser to report the ownership of accumulated RECs in compliance with federal or state law, if applicable, and to a federal or state agency or any other par at the REC Purchaser's discretion, and include without limitation those REC Reporting Rights accring under Section 1605(b) of The Energy Policy Act of 1992 and any present or Avoided emissions mayor may not have any value for GHG compliance purses. Although avoided emissions are included in the Hst of Environmental Attibutes, this inclusion does not create any nght to use those avoided emissions to coniply with any OHG regulatory program. -2- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 67 of 175 future federl, state, or local law, regUlation or bil, and internationa or foreign emissions trading program. RECs are accumulated on a MWh basis and one RE represents the Environmental Attbutes associated with one (1) MWh of Energy. Envinmenta Attributes do not include (i) any energy, capacity, reliabilty or other power attbutes from the Facilty, (ii) production tax credits associated with the constrction or operation of the Facility and other financial incentives in the fonn of credits, reductions, or allowances associated with the Facilty that are applicable to a state or federal income taxation obligation, (iii) the cash grnt in lieu of the investment tax credit pursuant to Section 1603 of the American Recovery and Reinvestment Act of 2009, or (iv) emission reduction credits encumbered or used by the Facilty for compliance with local, state, or federal oPerting and/or äir quality pertits 1.10 "Facilty" - That electric genertion facilty described in Appendix B of ths Agreement 1.1 "First Energy Date" - The day commencing at 00:01 hours, Mountain Time, following the day tht Seller has satisfied the requirements of Aricle N and the Seller begins deliverng energy to the Idao Power electrical system at the Point of Delivery. 1.12 "Forced Outage" - a parial or tota reuction of a) the Facity's capacity to produce and/or deliver Net Energy to the Point of Delivery, or b) Idaho Power's abilty to accept Net Energy at the Point of Delivery for non-economic reasons, as a result ofIdaho Power or Facilty: 1) equipment failur which was Dot the result of negligence or lack of preventative maintenance, or 2) responding to a transmission provider curilment order, or 3) unplaed preventative maintenance to repair equipment tht left unepaired, would result in failure of equipment prior to the planed maintenace period, or 4) planed maintenance or constrction of the Facilty or electrical lines requird to serve ths Facilty or 5) if Idaho Power detennines that curailment, interrptìon or reduction of Net Energy deliveres is necessary because of line construction, electrical system maintenance requirements, or electrcal system reliability emergencies On its system, as allowed within the GIA. The Parties shall nike coinercÎally reasonable effort to perort unpland preventative maintenance during periods of low wind avaiabilty. i. i 3 ~~Generator Interonnection Agreement" or GIA" - The Generator Interconnction Agreement is the interconnection agrement completed and executed by the Paries. -3- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 68 of 175 1 .14 "Generator Interconnection Process" - Idaho Power's generation interonn.ction application ård engineeng review process developed to ensure a safe and reliable generation interconnection in compliance with all applicablc regulatory requìrements, Prdent Electrcal Practices ård national safety standards. Complction of this process resuts in a Generator hiterconrecon Agreeent. 1.15 "Heavy Load Hours" - The daily hours begining at 7:00 am, ending at 11:00 pm Mountain Time, (16 hours) excluding all hour on all Sundays, New Year Day, Memorial Day, Independence Day, Labor Day, Thansgiving and Chrstmas. 1.16 "Light Load Hours" - The daily hours beginnng at 11 :00 pm, ending at 7:00 am Mountain Time (8 houts), plus all other hours on all Sundays, New Years Day, Memorial Day, hidependence Day, LabOr Day, Thangivig and Chrstmas. 1.17 "Losses" - The loss of electrical energy expressed in kilowatt hour (kWh) occung as a result ofthc trsformation and transmission of energy between the Metering Point and the Point of Deliver. The calculatiOn fonnula for such Losses wil be as specified in Appendix B of this Agreement. 1.18 "Market Energy Reference Price" - Eighty-'five percnt (85%) of the Mid-Columbia Market Energ Cost. 1.9 "Material Breach" - A Default (paragraph 19.2.1) subject to paragraph 19.2.2. 1.20 "Maxum Capacity Amount" - The maximum capacity (MW) of the Facilty wì1 be as specified in Appendix B of this Agrement. 1.21 "Meterig Equipment" - That equipment specified in the GIA requied to measure, record and telemeter bi-directional power flows between the Seller's Facilty and Idao Power's system at the Point of Delivery. 1.22 "Meterng Point" ~ The physical point at which cerain Meterig Equipment is located to enable accurte measurement of bi~directional power flows requird to detenine Net Energy and Surlus Energy for tms Facmty that provides all necessar data to adinister this Agreement. 1.23 "Mid-Columbia Market Energy Cost" - The monthly weighted average of the daily on-peak and off- pea Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for actual occurng non-firm 4- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 69 of 175 ener trsactions as reported by Dow Jones. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Paries will mutually agree upon a replacement index, which is similar to the Dow Jones Mid-elumbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrca industr. 1.24 "Nameplate Capacity" -The ful-load electrical quatities assigned by the designer to a generator and its prie mover or other piece of electrical equipment, such as trformers and circuit breakers, under standadied conditions, expressed in amperes, kilovolt-amperes, kilowatts, volts or other appropriate units. Usually indicated ön a nameplate attached to the individual machineot device. 1.25 "Net Energy" - All of the electrc energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh) deHvere to Idao Power at the Point of Delivery. Subject to the ters of this Agreement, Seller commits to deliver all Net Energy to Idaho Power at the Point of Delìvery fot the full tenn of the Agreement. i .26 "Operation Date" - The day commencing at 00:01 hours, Mountain Time, following the day that all requirements ofpargrph 5.2 have be completed. 1.27 "Point of Delivery ~ The locatiOn specifid in Appendix B, where idaho Power's and the Seller's electrical facilities are interconnected and the energy from this Facility is delivered to the Idao Power electcal system. 1.28 "Prudent Electca Practices" - Those practices, methods and equipment that are commonly and ordinarly used in electcal engìneerg and opetions to operate electric equipment lawfuly, safely, dependably, efficiently and economically. 1.29 "Renewable Energy Certifcate" or "REC" means a cerificate, ctedit, allowance, green tag, or other tranferable indicia, howsoever entitled, indicating generation of renewable energy by the FacHity,and includes all Envinmental Attrbutes arsing as a result of the generation of electcity associated with the REC. One REC represents the Environmental Attributes associated with the generation of one thousad (1,000) kWh of Net Energy. -5- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 70 of 175 1.30 "Scheduled Operation Date" - The date specified in Appendix B when Seller anticipates achieving the Operation Date. It is expected tha.t the Scheduled Operation Date provided by the Seller sha.1 be a reasonable estimate of the date that the Seller anticipates that the Seller's. Facilty sha achieve the Operation Date. i .3 i "Station Use" - Electric energy that is used to operate equipment that is auxilar or otherise related to the production of electricity by the Facility. 1.32 "Surplus Energy" - Is (1) Net Energy produced by the Seller'sFacilty and delivered to the Idaho Power electrcal system durig the mOnth which exceeds 110% of the monthly Net Energy Amount for the corresponding month specified in pargrph 6.2. or (2) All Net Energy produced by the Seller's FaciHty and delivered to the Idaho Power electrical system in any month where th Net Energy delivered for that month is less than 90% of the monthly Net Energy Amout for the corresponding month specified in paragraph 6.2. or (3) All Net Energy produced by the Seller's Facilty and delivered by the Facility to the Idao Power electrcal system prior to the Operation Date. 1.33 "Total Cost of the FaciHty" - The total cost ofstruetures, equipment and appurtances. ARTICLE II: NO RELIANCE ON IDAHO PO 2. i Sellermdependent fuvestigation - Seller warts and reresents to Idao Power that in entering into this Agreement and the uJ,dertakngby Seller of the obligations set fort herein, Seller has investigated and detertined that it is capable of performing hereunder and has not relied upon the advice, expeence or expertise of Idaho Power in connection with the trasactions contemplated by this Ageement. 2.2 Seller fudependen Expers - All professionals or expers including, but not limited to, engineers, attorneys or accountats, that Seller may have consulted or relied on in undertakng the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE In: WARNTIES 3.1 No Waranty by Idaho Power - Any review, acceptane or failure to review Seller's design, -6- Draft for Discu$sion Purpose$ On.ly Draft for Discussion Purposes Only Page 71 of 175 specifications, equipment or facilities shall not be an endorsement or a confiration by Idaho Power and Idaho Power makes no warrantìes, expressed or implied, regarding any aspec of Seller's design, specìfcations, equipment or facilties, including, but not limited to, safety, durabílty, relíabílty, strengt, capacity, adequacy or economic feasibilty. 3.2 Qualifyng Facilty Statu - Seller warants that the Facilty is a "Qualifyg Facility," as that ter is used and defined in 18 CFR 292.201 et seq. Afer initial qualification, Seller wil takè such steps as may be required to maintain the Facilty's Qualifing Facilty status durg the ter of ths Agreement and Seller's failure to maintain Qualifyng Facilty status wil be a Material Breach ofthis Agreement. Idaho Powèr reserves the right to review the Facilty's QuHfying Facilty status and associated support and compHaie docuinents at anytime during the tenn of ths Agreeinent. ARtICLE IV: CONDItIONS TO ACCEl'ICE OF ENERGY 4.1 Prior to the FÌTst Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy froni the Seller under this Agreeent, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, pennits Or approvals necessar for Seller's operations have been obtafed froin applicable federal, state or local authorities, includig, but not limited to, evidence of compliance with Subpar B, 18 CFR 292.201 et seq .as a certified Qualifying Facilty. 4.1.2 Opinion of Counsel - Submit to Idao Power an Opinion Letter signed by an attorney admitted to practice and in good stading in the State ofIdaho providing an opinon that Seller's Hcenses, pennts and approvals as set fort in pargraph 4.l.i above are legally and validly issued, are held in the name of the Seller an, based on a reasonable independent review, counsel is of the opinon that Seller is in substantial compliance with said pennits as of the date of the Opinon Letter. The Opinion Leter wil be in a form acceptable to Idao Power and wil acknowledge that the atorey rendering the opinion understands that Idao Power is relying on said opinion. Idaho Power's acceptance of the ronn will not be unasonably witheld. The Opinion Letter -7- Draf for Discussion Purposes Only Draft for Discussion Puoses Only Page 72 of 175 wil be governed by and shall be interpreted in accordane with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1.3 Nameplate Capacity - Submit to Idaho Power manufaeurer~s and engineering docUtentation that establishes the Nameplate Capacity of each individual generation unit tht is included within ths entie Facilty and also the total of these c.omponents to detere the Facilty Nameplate Capacity rating. Upon receipt of ths data, Idao Power shal review the provided data and detennine if the Nameplate Capacity specified is reasonable based l,pon the manufacturer's specified generation ratíngs for the specific genertion unts. 4.1.4 Engineer's Certifcations - Submit an executed Engineer's Cerfication of Design & Construction Adequacy and an Enginee's Certification of Operations an Maitenance (O&M) Policy as described in Comnission Order No. 21690. Thes certificates wì1 be in the form specified in Appendix C but may be modified to the extent necessar to recognìze the diferent engineerig disciplines providig the ceficates. 4.1.5 Insurance - Submit wrtten proof to Idao Power of al insurance requird in Arcle Xl. 4.1.6 Interconnection - Provide written confination from Idaho Power's deliveiy business unit that Seller has satisfied all interonnction requirements. 4.1.7 Network Resource Designatíon - The Seller's Facilty has been designated as a network resource capable óf deliverigfirm energy up to the amOl,nt of the Maxmum Capacity. 4.1.8 Written Acceptance - Request and obtain wrtten confirmation frin Idao Power that al conditions to acceptance of energy have been fulfilled. Such written confittion shall be provided within a commercially resonable time following the Seller's request and wil not be unreasonably withheld by Idaho Power. ARTICLE V: TERM AN OPERATION DATE 5.1 Tenn- Subject to the provisions of paragraph 5.2 below, this Agreement shall becoine effective on the date first written and shall contiue in full force an effect for a perod of twenty (20) Contract Years -8- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 73 of 175 from the Operation Date. 5.2 Operation Date - The Operation Date may occur only after the Facilty has achieved all of the following: a) Achieved the First Energy Date. b) Cornssion approval of this Agrent in a form acceptable to Idao Power has been received. c) Seller ha demonstrted to Idaho Power's satisfaction tht the Facilty is corplete and able to provide energy in a consistent, reliable and .safe :ier. d) Seller has requested an Operation Date frm Idao Power in a wrtten format. e) Seller has received written confirmation frm Idao Power of the Operation Date. This confition will not be unreasonably withheld by Idao Power. 5.3 Operation Date Delay - Seller shal Cause the Facilty to ¡;chieve the Operatiön Date on ör before the Scheduled Operation Date. Delays in the interCOílectIon and trstnssion network upgrade study, design and construction process that are not Force Majeure events acceted by both Paries, shall not prevent Delay Liquidated Damges from being due and owing as calculated in accordace wit this Agreement. 5.3.1 If the Operation Date öccur after the Scheduled Operation Date but on or prior to ninety (90) days following the Scheduled Operatiön Date, Seller shall pay Idaho Power Delay Liquidated Damages calculated at the end of each calendar month aftr the Scheduled Operation Date as follows: Delay Liquidated Damages are equal to ((Curent month's Intial Year Net Energy Amount as specified in pargraph 6.2.1 divided by the number of days in the curent month) multiplied by the number of days in the Delay Period in the curent month) multiplied by the cut month's Delay Price. 5.3.2 If the Operation Date does not OCCur within ninety (90) days following the Scheduled Operation Date, the Seller shall pay Idaho Power Delay Liquidated Damges in addition to thos.e provided in pargraph 5.3.1, calculated as follows: -9- Draft for Diseussion Purposes Only Draft for Discussion Purposes Only Page 74 of 175 Forty five dollars ($45) multiplied by the Maxmum Capacity with the Maximum Capacity being measured in kW. 5.4 If Seller fails to achìeve the Operation Date within ninety (90) days followirrg the Scheduled Operation Date, such failur wil be a Material Breach and Idao Power may terminate this Agreement at any time until the Seller curs the Material Breach. Additional Delay Liquidated Daages beyond those calculated in 5.3.1 and 5.3.2 wil be calculated and payable using the Delay Liquidated Damge calculation described in 5.3.1 above for all days exceeding 90 days past the Scheduled Opertion Date until such time as the Seller cures thi Material Breath or Idao Power terinates ths Agreement. 5.5 Seller shall pay Idaho Power any calculated Delay Damages or Delay Liquidated Damges within seven (7) days of when Idaho Power calculates and preents any Delay Damages or Delay Liquidated Damages bilings to the Seller. Seller's failure to pay these damages withi the specified time wí1 be a Material Breach of this Agreeent and Idaho Power shll draw funds from the Delay Securty provided by the Seller in an amount equal to the calculated Delay Damages or Delay Liquidated Damages. 5.6 The Pares agree that the damages Idaho Power would incur due to delay in the Facility achieving the Operation Date on or before the Scheduled Operation Date would be diffcult or impossible to predict with cerinty, and that the Delay Liquidated Damages are an appropriate approximation of such damages. 5.7 Prior to the Seller executing this Agreement, the Seller shall have: a) Filed for interconnection and is in compliance with all payments an requirements ofthe Generation Interconnection Process. b) Received and accepted an interconnection feasibilty study for this Facility. c) Provided all infornation required to enable this project to be an Idaho Power designated network resource. d) Acknowledged responsibilty for all interconnection costs including any costs associated with acquing adequate firm transmission capacty to enable the projec to be classified as an Idaho Power fi network resource. If fmal interconnection -10- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 75 of 175 or trnsmission studies ar not complete at the time the Seller execntes this Agreement, the Seller understads that the Seller's obligations to pay Damages and Liquidated Damages associated with the projects failure to achieve the Operation Date by the Scheduled Opertion Date as specified in this Agreement is not relieved by final interconnection or trnsmssion processes and schedules. 5.8 Within thrty (30) days of the date of a fina non-appealable Commission Order as specified in Aricle XXI approvig this. Agreement, the Seller shall post liquid security ("Delay Security") in a form as described in Appendix D equal to or exceeding the amount calculated in paragraph 5.8.1. Failure to post ths Delay Security in the time specifed above wil be a Material Breach of ths Agreement and Idao Power may terminate this Agreement. 5.8.1 Delay Securty The grater of fort five ($45) multiplied by the Maximum Capacity with the Maximum Capacity being measured in kW. 5.8.1. In the event Seller provides Idao Power with certification tht (1) a generation interconnection agreent specifyng a schedule that wil enable ths Facilty to achieve the Operation Date no later than the Scheduled Operation Date has been completed and the Seller has paid all required interconnection costs, or (2) a genertion interconnection agrement is substantially complete and all material costs of interconnection have been identified and agreed upon and the Seller is in compliance with all ters and conditions of the generation interconnection agreement, the Delay Securty calculated in accordance with paragraph 5.8.1 wil be reduced by ten percent (10%). 5.8.1.2 If the Seller has received a reduction in the calculated Delay Securty as specified in pargraph 5.8.1. and subsequently (1) at Seller's request, the generation interconnection agreement specified in paragraph 5.8.1.1 is revised and as a result the Facilty wil not achieve its Operation Date by the Scheduled Operation Date or (2) if the Seller does not maintai compliance with the generation interconnection agreement, the full amount of the Delay Securty as calcubited in paragrph 5.8.1 wil be subjec to -11- Draft for DisèUssion PupOSéS Only Draft for Discussion Purposes Only Page 76 of 175 reitateient and wil be due and owing withìn five (5) BusÍ1ess Days frm the date Idaho Power requests reinstatement. Failure to timely reinstate the Delay Security wil be a Materal Breach of ths Agreement. 5.8.2 Idaho Power shall release any remaÍ1ing security poted hereunder after all caleuated Delay Damages and/or Delay Liquidated Damages ar paid Í1 full to Idao Power and th earlier of i 1) thrty (30) days after the Operation Date has been achieved, or 2) sixty (60) days afer the Agreement has been tennated. 5.9 Progress Reports. Withn ten (10) Business Days after the end of each calendar month following the approval of this Agreement until the Operation Date is achieved, Seller shal submit progress reorts to Idao Power on the developent and constction of the Facilty. ARTICLE VI: PURHASE AND SALE OF NET ENRGY 6.1 Delìvery and Acceptace of Net Energy - Except when either Pary's perfonnance is excusd as provided herein, Idaho Power Will purhae and Seller Will sell all of the Net Energy to Idaho Power at the Point of Delivery. Net Energy produced by the Facilty and deliverd by the Seller at àny moment in time to the Point of Deliver that exceeds the Maximum Capacity AmOiirtt wil he.a Materi Breach of ths Ageement. 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2.1 Initial Year Monthy Net Energy Amounts: Month kWh Season 1 March April May -12- Draft for Discussion Purposes Only Draft for Discussion Purpses Only Page 77 of 175 Season 2 July August November December Season 3 June September Octobe Janua Februar 6.2.2 Ongoing Monthly Net Energy Amounts - Seller shall intially provide Idao Power with one year of monthly generation estimates (Intial Yea Monthly Net Energy Amounts) and beging at the end of month nine and every thee months threafter provide Idaho Power with an additional thee months of forard generation estimates beyond those generation estimates previously provided. Ths information wil be provided to Idao Power by wrtten notice in accordance with paragrph 25.1, no later than 5:00 PM of the 5ID day following the end Qfthe previous month or by electnic notice provided and verfied via retu electronic verfication of receipt to the electronic notices addresse speified in paragraph 25.1, no later than 5:00 PM of the 5th day followig the end of the previoUS month. If the Seller does not provide the Ongoing Month1y Net Energy . Amounts in a timely maner, Idaho Power wil use the most recently provided 3 matching months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy amounts. 6.2.3 Seller's Adjustment orNet Energy Amount 6.2.3.1 No later tha the Operation Date, by written notice given to Idaho Power in accordace with parat:raph 25.1, the Seller may revise all of the previously provided Inítial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 9t month after the Operation Date and at the end of every third month therafer: (l) the Seller may not revise the imediate next thr months of previously provided Net Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 25.1, no later th 5:00 PM of the Sib day -13- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 78 of 175 following the end of the previous month, the Seller may revise all other previously provided Net Energy Anounts. Failure to provide timely written notice of changed amounts wil be deemed to be an election of no change. 6.2.4 Idao Power Adjustment of Net Energy Anount- IfIdaho Power is excused from accepti the Seller's Net Energy as specified in paragraph 12.2.1 or if the Seller declates a Suspenioo of Energy Deliveries as specified in paragraph 12.3.1 and the Seller's declared Suspension of Energy Delìveries is not uneasonably rejected by Idao Power, the Net Energy .Aount as specified in paragrph 6.2 for the specific month in which the reduction or suspension unde paragraph 12.2.1 or 12.3.1 occurs wil be reduced in accordace with the following: Where: NEA := Current Month's Net Energy Amouit (Paragraph 6.2) SGU =:a.) If Idaho Power is excused from accepting the Seller's Net Energy as specifed in paragraph 12.2.1 this value wil be equal to the percetage of curailment as specified by Idaho Power multiplìed by the TGUas defined below. b.) If the Seller declares a Suspesion of Energy Deliveries as specified in pargraph 12.3.1 ths value wil be the sum of the individual generation units size ratings as specifi.ed in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspesion of Energy Deliveries. TOU == Sum of all of the individua generator ratings of the generation units at this Facility as specified in Appendix B of this agreement. RSH Actual hour the Facilty's Net Energy deliveres Were either reduced or suspended under paragraph 12.2.1 or 12.3.1 Actual total hours in the curent monthTH Resulting formula being: Adjusted Net Energy = NEA Anount.- (( SOU X NE) x(im. TOU TH ) ) -14- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 79 of 175 This Adjusted Net Energy Amount wil be used in applicable Surlus Energy calculations for only the specific month in which Idao Power was excused frm accepting the Seller's Net Energy or the Seller declared a Suspension of Energy. 6.3 Unless excused by an event of Force Majeue, Seller's falure to deliver Net Energy in any Contract Year in an amount equa to at least ten percent (10%) of the sum of the Initial Year Net Energy Amounts as specifed in paragraph 6.2 shall constitute an event of default. ARTICL vm PURCHASE PRIE ANMEQDOFPAYM 7.1 Heayy Load Purchase Price. - For all Base Energy received durng Heavy Load Hours, Idaho Power wil pay the non-levelized Heavy Load Purchase Price as specified in App.endix F. 7.2 Light Load Purchase Price - For all Base Energy received durng Light Load HoUt, Idaho Power will pay the non~levelized Light Load Purchase Price as specified in Appendix F. 7.3 SUrPlus Energy Prce - For all Surplus Energy, Idaho Power shall pay to the Seller the lower of the current month's Market Energy Referece Price or the Light Load Puchase Price. 7.4 Payment Due Date - Undisputed Energy payments, less any payments due to Idaho Power wil be disbursed to the Seller withn 30 days. .of the date which Idaho Power receives and accepts the documentation of the monthy Net Energy actually delivered to Idaho Power as specifed in Appendix A. 7.5 Continuing Jurisdiction of the. Commission. This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement wil be constred in accordance with Idaho Power Compny 11. Idaho PubliC Utilities Cøm1lssion flAfoll Energy. Inc., 107 Idaho 781, 693 P.2d 427 (1984), Idaho Power Company v. Idaho Public Utilities Commission, 107 Idao 1122, 695 P.2d i 261 (1985), Afìon Energv Inc, v. Idaho Power Company, 111 Idaho 925, 729 P.2d 400 (1986), Section 210 of the Public Utilty Regulatory Policies Act of 1978 and 18 CFR §292.303-308 -15- Draft for Discussion Pnrposes Only Draft for Discussion Purposes Only Page 80 of 175 ARTICLE VIT: ENVIRONMENTAL AlTUTES 8.1 Under this Agreement, ownership of Green Tags and Renewable Energy Certificate (RECs), or the equivalent environental attributes, directly associated with the production of energy from the Seller's Facmty sold to Idao Power will be governed by any and all applicable Federal or State laws and/or any regulatory body or agency deemed to have authority to reguate these Environmental Attrbutes or to implement Federal and/or State laws re.garding the same. ARTICLE IX: FACILITY AN INTERCONNCTION 9.1 Design of Facmty - Seller wil design, constrct, insta, own, operate and mantai the Facilty and any Seller-owned interconnection facilties so as to allow safe and reliable generation and delive of Net Energy to the Idaho Power Point of Deliver for the full ter of the Agreement. 9.2 Interconnection Facilties ~ The interconnection of this Facîlty to the Idaho Power elecrica system wil be in compliance with the GIA. The Seller is responsible for all cøsts associated with intetcOtection of this Facility as specified in the OIA. ARTICLE X: METERIG AN TELEMETRY 10.1 Metering - Idaho Power shall, for the account of Seller, provide, install, and maitai Metering Equipment to be located at a mutually agreed upon location to reord and measure poWer flows to Idaho Power in accørdace with the GIA The Meterig Equipment wil be at the location an the type required to measure, record and report the Facility's Net Enery, Station Use, and maximum energy deliveries (kW) at the Point of Delivery in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production ino the Idaho Power electrcal system. 10.2 Telemetr ~ Idao Power will install, operate an maintain at Sellers expense eontuncations and telemetr equipment which wil be capable of providing Idaho Power with continuous instataeous telemetr of Seller's Net Energy produced and delivered to the Idao Power Point of Delivery to Idaho -16- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 81 of 175 Power's Designated Dispatch Facilty. ARTICLE XI - RECORDS 11.1 Maintenance of Records - Seller shall maintain at the Facilty or such other location mutully acceptable to the Parties adequate total generation, Net Energy~ Station Use, and maximum generatiol1 (kW) records in a fonn and cOntent acceptable to Idaho Power. 11.2 Inspection - Either Pary ~ afer reasonable notice to the other Pary, shall have the right, durg normal business hour~ to inspect and audit any or all genation, Net Energy, Station Use, and maximum generation (kW) records pertinig to the Sellets Facilty. ARTICLE XII; OPERATIONS 12 .1 Communcations - Idaho Power and the Seller shall maintain appropriate operting communications thrugh Idaho Power's Designted Dispatch Facilty in accordance with Appendix A of this Agreement. 12 .2 Energy Acceptance - 12.2.1 Idaho Power shall be excused from accepting and paying for Net Energy which would have otherise been produced by the Facilty and delivered by the Seller to the Poil1t of Delivery, if it is prevented from doing so by an event of Force Majeure, Forced Outage or temporar disconnection of the Facilty in accordance with the GIA. If, for reasons other tha an event of Force Majeur, a temporar disconnection as specified within the GIA exceeds twenty (20) days, beginning with the twenty-frrst day of such interrption, curtailment or reduction, Seller wil be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specifed for the applicable month in pargraph 6.2. This pro rata daily average wil be adjusted to reflect the lost energy production due to time of day, weather conditions and any other factors that would have impacted the Facilties abilty to generate energy durl1g ths period of interption, curtailment or reduction of the Sellers abilty to deliver energy to Idao Power. Idaho Power wil notify Seller when the interption, curilent or reduction is terminated. -17~ Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 82 of 175 12.2.2 If, in the resonable opinion ofIdaho Power, Seller's operation of the Facility is unsafe or may otherise adverely affect Idao Power's equipment, personnel or servce to its cutomers, Idaho Power may temporarly disconnect the Facility from Idaho Power's transmissiondistribution system as specified withn the GlA or take such other reasonable steps as Idao Power deems appropriate. 12.2.3 Under no circumstances wil the Seller deliver Net Energy from the Facilty to the Point of Delivery in an amount that exceeds the Maxmum Capacity Amount at any moment in time. Seller's failur to limit deliveres to the Maximum Capaity Amount wil be a Material Breach of ths Agreement. 12.2.4 If Idaho Power is unable to accep the energy from this Facility and is not excused frm accepting the Facility's energy, Idaho Power's damages shall be liited to only the contract value of the estimated energy that Idaho Power was unable to accept. Idaho Power wil have no responsibility to pay for any other costs, lost revenue or consequential damges the Facilty may ineUt. 12.3 Seller Declared Suspeion of Energy Deliveries 12.3.1 If the Seller's Facilty experiences a Forced Outage due to equipment failur which is not caused by an event of Force Majeure or by neglect, disrepair or lack of adequate preventatve maintenance of the Seller's Facilty, Seller may, after giving notice as provided in pargraph 12.3.2 below, tempörarily suspend all deliveries of Net Energy to Idaho Power from the Facility or from individual generation unites) withn the Facility impacted by the Forced Outage for a period of not less than 48 hoUts to correct the Forced Outage condition ("Declard Suspension of Energy Deliveres"). The Seller's Declar Suspension of Energy Deliveres wil begin at the start of the next fu hour following the Seller's telephone notification as specified in paragraph 12.3.2 and wil continue for the Hme as specified (not less than 48 hour) in the written notification provded by the Seller. In the month(s) in which the Declard Suspension of Energy occured, the Net Energy Amount wil be adjusted as specified in paragraph 6.2.4 -18- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 83 of 175 12.3.2 If the Seller desires to initiate a Declard Suspension of Energy Deliveries as provided in paragraph 12.3.1, the Seller wil notify the Designted Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveres will be at the earliest the next full hour aft mag telephone contact with Idao Power. The Seller wil, within 24 hours after the telephone contact, provide Idao Power a written notice in accordance with Arcle XXV that wil contai the beginning hour and duration of the Declared Suspension of Energy Deliveres and a description of the conditions tht caused the Seller to initiate a Declared Suspension of Energy Deliveries. Idaho Power wil review the documentation provided by the Seller to determine Idaho Power's acceptance of the described Forced Outage as qualifyg for a Declard Suspension of Energy Deliveres as specified in pargraph 12.3.1. Idaho Power's acceptance of the Seller's Forced Outage as an acceptable Forced Outage wil be baed upon the clear docuientation provided by the Seller that the Forced Outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative niaintenance of the Seller's Facilty. 12.4 Scheduled Maíntenance - On or before Janua 31st of each calendar year, Seller shall submit a written proposed maintenance schedule of signifcant Facility maíntenace for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptabilty of the proposed schedule. The Paries deterrnation as to the ac~ptability of the Seller's timetable for scheduled niintenance wil take into consideration Prdent Electrical Practices, Idahö Power system requirents and the Seller's preferr schedule. Neither Pary shall uneasonably withold acceptace ofthe proposed maintenance schedule. 12.5 Maitenance Coordination - The Seller and Idao Power shall, to the extent practical, coordinate their respective line and Facilty maintenance schedules such that they occur simultaneously. 12.6 Contact Prior to Cuilment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to inteitpt interconnection or curail deliveries from the Seller's Facility. Seller understads that in the case of emergency circumstances, real time operations of the electrcal system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to -19- Draft for Discussiön Purpöscs Only Draft for Diseussion Purposes Only Page 84 of 175 interrption, curailment, or reduction of electrcal energy deliveries to Idao Power. ARTICLE Xll: INEMNIICATION AN INSURCE 13.1 Indemìfcatíon - Each Pary shall agree to hold harless and to indemnify the other Party, its offcers, agents, affliates, subsidiares, parent company and eip10yees against all loss, damage, expense and liabilty to thd persons for injur to or death of person or injur to property, proximately caused by the indemnifYng Pary's (a) constrction, ownership, opertion or maintenance of, or by failur of, any of such Pary's works Or facilties usd in connection with this Agreement, or (b) negligent or intentional acts, errors or omissions. The indetnifyng Pary shall, on the other Party's request, defend any suit asserting a clai covered by this indemnty. The indeiufyg Pary shall pay all docented costs, including reasonable attorney fees that may be incured by the other Pary in enforcìng this indemnity. 13.2 Insurace - Durng the ter of ths Agreement, Seller shall secure and continuously can the following insurnce coverge; 13.2.1 Comprehensive General Liabilty Insurnce for both bodily injury and propery daige with limits equal to $1,000,000, each occutence, combined single limit. The deductible for such insurce shall be consistent with curent Insurance Industr Utility practces for sinilar property. 13.2.2 The above inurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shal include: (a) An endorsement naming Idaho Power as an addtional insurd. and. loss ¡fayee as applicable; and (b) A provision stating that such policy $hall not be caceled or the limits of liabilty reduce without ten (10) days' prior written notíce to Idaho Power. 13.3 Seller to Provide Certificate of Insurance - As required in paagrph 4.1.5 herein and annually thereafer, Seller shall furnsh Idaho Power a certficate of insuce, together with the endorsments required therein, evidencing the coverge as set forth above. -20- Draft for Discussion Purposes Onl Draft for Discussion Purposes Only Page 85 of 175 13.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by pargrph 13.2 shall lapse for any reason, Seller wil iiediately notify Idaho Power in wring. The notice wìl advise Idaho Power of the specific reon for the lapse and the steps Seller is takng to reinstate the coverae. Failure to provide this notice and to expeditiously reinstte or replace the coverage wil constitute a Material Breach of this Agreement. ARTICLE XIV: FORCE MAJ 14.1 As used in this Agreement, "Force Majeur" or "an event of Force Majeur" means any cause beyond the control of the Seller Or of Idao Power which~ despite the exercise of due diigence, siich Par is unable to prevent or overcome. Force Majeure incliides. but is not linted to,acts of God, fire, flood, stonns, wars, hostilities, civil strife~ strkes and other labor dii¡turbances~ earthquaes, fires, lightng, epidemics, sabotage, or changes in law or regulation occung after the Effecive Date, which, by the exercise of resonable foresight such pary could not reasonably have been expeced to avoid and by the exercise of due diligence, it shal be unable to overcome. If either Pary is rendered wholly or in par unable to perfonn its obligations under this Agreement because of an event of Force Majeur, both Paries shal be excused from whatever peronnance is affected by the event of Force Majeure, provide that: (1) The non-perfonning Pary shall,.as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Pary written notíce describing the particulars of the occurrence. (2) The suspension of perfonnance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3) No oblígations of either Pary which arose before the occurence causing the suspension of perfonnnce and which could and should have been fully perforred before such oCCUrrence shall be excused as a result of such occence. -21- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 86 of 175 ARTICLE XV: LIILITY; DEDICATION 15.1 Limitation of Libilty. Nothing in ths Agreement shall be constred to create any duty to, aty standard of care with reference to, or any liabilty to any person not a Pary to this Agreement. Neither pary shal be liable to the other for any indirect, special, consequential, fiot punitive daages, except as expressly authorized by this Agreement. Consequential damages wil include, but not be limted to, the value of any envionmental attrbutes. 15.2 Dedication. No undertaking by One Pary to the other under any provision of this Agreement shall constitute the dedcation of that Pary's system or any portion thereof to the Pary or the public or affect the status ofIdaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XVI: SEVERA OBLIGATIONS 16.1 Except whete specifically stated in ths Agreement to be otherwise, the duties, obligations and liabities of the Partes are intended to be several and not Joint or collective. Nothing contained. in this Ageeen shall ever be construed to create an association, trust, partnership or joint venture or impose a trut or parershp duty, obligation or liabilty on or with regard to either Pary. Each Party shall be individually and severlly liable for its own obligatìons under this Agreement. ARTICLEXVIT: WAI 17.i Any waiver at any tìme by either Pary of its rights with respect to a default under this Agreement or with respect to any other matters arsing in conectìon with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XVII: ÇHOlCE OF LAWS AN VEN 18.1 This Agreement shall be construed and interreted in accordce with the laws of the State ofIdaho without reference to its choice of law proviions. 18.2 Venue for any litigation arsing out of or related to this Agreement wil lie in the Distrct Cour of the -22- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 87 of 175 Fourth Judicial Distrct of Idaho in and for the County of Ada. ARTICLE XIX: DISPUTES AN DEFAULT 19.1 Disputes - Al disutes related to or arising under ths Agreement, including, but not limited to, the interretation of the tenns and conditions of this Agreement, wil be submitted to the Comssion for resolution. 19.2 Notice of Default 19.2.1 Defaults. If either Pary fails to perform any of the terms or conditions of this Agreement (an "event of default"), the non defaulting Party shall cause notice in wrting to be given to the defaultng Pary, specifyng the nianner in whích such default occurred. If the defaulting Party shall fail to cure such default with the sixty (60) days afer se:rCe of such notice, or if the defaulting Party reasonably demonstrates to the other Pary that the default ca be cured within a commercially reasonable time but not within such sixty (60) day period and then fais to dilgently pursue such cure,. then, the non defaulting Party may, at its option, termte ths Ageement and/or pursue its legal or eqitable remedies. 19.2.2 Material Breaches - The notice and cure provisions in paragraph 19.2.1 do not apply to defaults identified in thís Agreement as Material Breaches. Material Breaches must be cued as expeditiously as possible following OCCUtrence of the breach. 19.3 Security for Performance - Prior to the Operation Date and thereafer for the full term of ths Agreement, Seller wil provide Idao Power with the following: 19.3.1 Insurce - Evidence of compliance with the provisions of paragraph 13.2. If Seller fails to comply, such failure wil be a Material Breach and may only be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 19.3.2 Engineer's Certfications - Every three (3) years afer the Operation Date, Seller wil supply Idao Power with a Cerification of Ongoing Operations and Maintenace (O&M) from a Registered Professional Engineer licensed in the State of Idaho, which Certification of -23- Draft fo.r Discussion PurpQses Only Draft for Discussion Purposes Only Page 88 of 175 Ongoing 0 & M shall be. in the form specified in Appendix C. Seller's failur to supply the required certificate will be an event of default. Such a default may only be cured by Seller providig the required certificate; and 19.3.3 Licenses and Perits - Durng the full ter of this Agreement, Seller shall mainin compliance with all pennts and licenses described in paragraph 4.1.1 of this Agrment. In additon, Seller wil supply Idaho Power with copies of any new or additional permits or licenses. At least every fift Contract Year, Seller wil update the documentation describe in Piiragrph 4.1.1. If at any time Seller fails to maintain compliance with the permits an licenses described in paragraph 4.1. or to provide the documntation require by ths pargraph, such failur wil be an event of default and may only be cu by Sener submittg to Idaho Power evidence of compliance frm the peritting agency. ARTICLE XX: GOVERNENTAL AUTORIZATION 20.1 This Agreemeht is subject to the jursdiction of those governental agencies having contrl over either Pary of this Agreement. ARTICLE XXI: COMMISSION ORDER 21.1 This Agrment shall become f:illy effective upon the Commission's approval of all ters and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurd expeses for ratemang puroses. ARTICLE XXII: SUCCESSORS AND ASSIGNS 22.1 This Agreement an all of the tenns and provisions hereof shall be binding upon and inur to the benefit of the respective successors and assigns of the Partes hereto, except that no assignent hereofby either Party shall become effective without the written consent of both Paries being first obtaied. Such cOnsent shall not be urieasonably withheld. Notwithstanding the foregoing, any pay which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substatially -24- Draft for Discussion Puroses Only Draft for Discussion Purposes Only Page 89 of 175 all of its electric utilty assets, shal automatically, without fuer act, and without nee of consent or approval by the Seller, succeed to all of Idaho Power's rights, obligations and interests under ths Agreement. This aricle shall not prevent a financing entity with recorded or secur rights frm exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exerising such rights or remedies. ARTICLE xx: MODIFICATION 23.1 No modfica.tion to thi Agrement shall be valid unless it is in wrting and signed by both Paries and subsequently approved by the Commission. ARTICLEXXIV: TAXES 24.1 Each Par shall pay before deliquency al taxes and oter goverental chages which, if failed to be paid when due, could result in a lien upon the Facilty or the Intc:rconnection Facilties. ARTICLE XXV: NOTICES 25.1 All wrtten notices under this Agreement shall be directed as follows and shall be considered deliverd when faxed, e-mailedand confied with deposit in the U.S. Mail, first-class, postage prepaid, as follows: To Seller: Original document to: Telephone: Cell: FAX: E-mai: Copy of document to: -25- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 90 of 175 Telephone: Email: To Idaho Power: Origil document to: Senior Vice President, Power Supply Idaho Power Company POBox 70 Boise, Idaho 83707 Emal: Lgrw(gidahopower.com Copy of document to: Cogeneration and Small Power Production Idaho Power Company PO Box 70 Boise, Idaho 83707 E-maíl:ralphiW.daopower.com Either Pary may change the contact person and/or address information listed above, by providing written notice from an authorized person representig the Part. ARTICLE XXVI; ADDITIONAL TERMS AN CONDITIONS 26.1 Equal Employment. Durng pedormance pursuant to this Ageement, Seller agrees to comply with all applicable equal employment opportnity, small business, and affirative action laws and reguations. All Equal Employment Opportity and affintive action laws and regutions are hereby incorporated by thîs reference, including provisions of38 U.S.C. § 4212, Executive Order 11246, as amended. and any subsequent executive orders or other laws or regulations relatig to equal opportnity for employment on governent contrats. To thc cxtent this Agreement is covered by Executive Order 11246, the Equal Opportunity Clauses contained in 41 C.F.R. 60-1.4,41 C.F.R. 60-250.5, and 41 CFR 60-741.5 are incorporated herein by refernce. 26.2 Ths Agreement includes the following appendices, which ar attached hereto and included by -26- Draft for Discussion Purposes Only Draft for Discussion Puposes Only Page 91 of 175 referece: Appendix A AppendixB AppendixC AppendiD AppendixE Generation Schedling and Reportng Facilty and Point of Delivery Engneer's Cerifications Form of Liquid Security Energy Prcing ARTICLE XXVII: SEVERAILITY 27.1 The invalidity or unenforceabilty of any ter or provision of this Agreement sha not affect the validity or enforceabilty of any other terms or provisions and this Agrentsha11 be constred in all other respects as if the invalid or unenforceable ter or provision were omitted. ARTICLE XXVLL: COUNERPARTS 28.1 This Agreement may be execute in two or more counteipars, each of which shal be deemed an origina but al of which togeter shal constitute one and the same inent. ARTICLE XX: ENT AGREEMENT 29.1 This Agreement constitutes the entie Agreement of the Paries concerg the subject matter herf and supersedes all prior or contemporaneous oral or wrtten agreements betwee the Parties concernng the subject matter hereof. -27- Draft for Discussion Purposes Only By Date Draf for Discussion Puoses Only Page 92 of 175 IN WISS WHREOF, The Pares hero have caused ths Agrement to be execte in their respective naes Q1 the daes set forth below: Idao Power Company By Lis A Grow Sr. Vic Preident, Powe Suply Date "Idao Power "Seller -28- Dra for Discussion Puposes Only Draft for Discussion Purposes Only Page 93 of 175 APPENIX A A -1 MONTY POWER PRODUCTON AN SWITCHIG REPORT At the end of each month th followig requi documentation wil be subined to: Idao Power Company Att: Cogeneration and Small Power Producton POBox70 Boise, Idaho 83707 the meter readigs requied on this report wil be the readings on the Idaho Power Meter Equipment meaurg the Facilty's total energy production and Station Usage delivere to Idaho Power and the inui generated energy (kW) as recorded on the Meterng Equipment and/or any other requied energy measurements to adequately administer this Agreement. This document shall be the document to enable Idaho Power to begin the energy payment caculation and payment process. The meter readigs on ths rert shall not be used to calculate the actual payment, but intead wil be a check of theautoniated meter reading infonnation tht will be gathered as descrbed in item A-2 below: -29- Draft for Discussion Puposes Only Draft for Discussion Purposes Only Page 94 of 175 Idaho Power Company MONTHLY POWER PRODUCTION AND SWITCHING REPORT Cogeneration and Small Power Production Project Name Month Year Project Number: Address Phone Number: City Meter Number: End of Month kWh Meter Reading: Beginig of Month kWh Meter: Difference: Times Meter Constant: kWh for the Month: Metered Demand: Breaker Opening Rec.ørd Date Time ~ *Breaker Ope Reasn Codes Lack of Adequate Prime Mover Forced Outage of Facilty Disturbance of ¡PCo System Scheduled Maintenance Testing of Protectin Systems Cause Unknown Other (Explain) i 2 3 4 5 6 7 State Zip Fadl Outut Station Usage Station Usage Metered Maimum Generation kW Net Geeration .. Breaker Closing Record *Timelk!!~ I hereby certi that the above meter readings are true and correct as of Midnight on the last day of the above month and tht the switching recrd is accurate and complete as requied by the Firm Energy Sales Agreement to which I am a Party. Signature Date -30- Draft for Discussion Puposes Only Draft for Discussion Puroses Only Page 95 of 175 A-2 AUTOMATED METER READING COLLECTION PROCESS Monthly, Idaho Power wil use the provided Meterig and Telemtr equipment and processes to collect the meter readíng information from the Idaho Power províded Metenng Equipment that measurs the Net Energy and energy delìvered to supply Station Use for the Fací1ty recorded at 12:00 AM (Midnight) of the last day of the month.. The meter information collected wî1 include but not be limited to ener production, Station Use, the maximum generated power (kW) and any other required energy measurements to adequately administer thìs Agreement. A-3 ROUTIN REPORTING Once the Fací1ty has achìeved its OperaHon Date and has operated in a relíable and consistent maer for a reasonable period of Hme, the Paries may mutually agre to modifY this RoutIne Reportg requirement. Idaho Power Contact Information Daí1y Energy Production Reorting Call daily by 10 a.m., 1-800-356-4328 or 1-800-635-1093 and leave the following inonntion: . Project Identification - Project Name and Project Number · Curent Meter Readi . Estimated Generaton for the. current day . Estimated Genertion for the next day Planed and unplaredProject outages Call 1-800-345-1319 and leave the following information: · Project Identification - Project Name and Project Number . Approximate time outage oceured . Estimated day and time of project coming back online -31- Draft for Discussion Puposes Only Dra for Dlc__ Purp Oø Page 96 of 175 Seller's Cont Infortion 24Hour pro Opeon Conta Nane:~61 Prgect On-slt Cou infomtion Nam:'T~~ -Ð- Draft for Dlacanlo. hres ODy Draft for Discussion Puoses Only Page 97 of 175 APPENDIXB FACILITY AN POIN OF DELIVERY Prject Name: Grand View Solar II Pröject Number: B-1 DESCRITION OF FACILITY Var Capabilty (Both leading and laggig: Leadg is _ LaggI1g is B-2 LOCATION OF FACILITY Near: Sections:Townhip~ Rage: _ County: _ UPS Coordinates: Description of Interconnection Location: Nearest Idaho Power Substation: B-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected as the Scheduled Firt Energy Date. Seller has selected as the Scheduled Operaion Date. In making these selections, Seller recognzes that adeuate testing of the Facilty an completion of al requirents in paragraph 5.2 of this Agreent must be completed prior to the project being granted an Operation Date. -33- Draft for Discussion Purposes Only Draft fo.r Discussion Purposes Only Page 98 of 175 B-4 MAMUM CAPACITY AMOUNT Ths value wil be which is consistent with the value provided by the Seller to Idaho Power in accordance with Schedule 72. This value is the maimum energy(MW) that potentially could be delivered by the Seller's Facmty to the Idaho Power electrical system at any moment in time. B-5 POIN OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Pares, the point of where the Sellers Facilty's energy is delivered to the Idaho Power electrcal system. The OIA wil deterine the specific Point of Delîver for this Facility. The Point of Deliver identified by the GIA wil become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measurg the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Deliver, no Losses wil be calculated for ths Facilty. If the Idao Power Meterg Equipment is unable to measure the exac energy deliveries by the Seller to the Idaho Power electrcal system at the Point of Delivery, a Losses calculation wil be established to measure th energy losses (kWh) between the Seller's Facilty and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy producton recorded on the Facilty generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, conductor sizes, etc.) of all of the electrical equipment between the Facilty and the Idaho Power electrcal system, Idaho Power wil configue a revised Losses calculation formula to be agred to by both parties and used to calculate the kWh losses for the remaining term of the Agreement. If at any time dung the tenn of this Agreement, Idaho Power determnes that the loss calculation does not coectly reflect the actua kWh Losses attrbuted to the electrical equipment between the Facmty and the Idaho Power electrical system, Idaho Power may adjust the calcultion and retroactively adjust the previous months kWh losses calculations. -34- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 99 of 175 B-7 METERIG AN TELEMETRY The GIA wil determine the specific meterg and telemetry requirements for this Facility. At the miimum the Meterig Equipment and Telemetr equipment must be able to provide and record hourly energy deliveres to the Point of Deliver and any other energ measuements required to administer this Agreement. These specifications wil include but not be limted to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment. and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller wì1 arge for and make avaiable at Sellets cost communication circuit(s) compatible with Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the FaciUties energy production. Idaho Power provided equipment wil be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maitenance, including adistrtive cost to be reimbursed to Idaho Power by the Seller. Payment of these cost wil be in accordance with the GIA and the total meterig cost wil be included in the caculation of the Monthly Operation and Maintenace Charges specified in the GIA. B-8 NETWORK RESOURCE DESIGNATION Idaho Power canot accept or pay for generation from this Facility until a Network Resource Designation ("NR") application has been accepted by Idao Power's delivery business unit. Federal Energy Regulatory Commission ("FERC") rules require Idao Power to prepare and submit the NR. Because much of the informtion Idaho Power needs to prepare the NR is specific to the Seller's Facility. Idao Power's abilty to fie the NR in a timely maner is contingent upon timely receipt of the requied information from the Seller. Prior to Idaho Power beginnng the process to enable Idaho Power to submit a request for NIt status for this Facilty, the Seller shall have completed all requiements as specified in Paragraph 5.7 of this Agreement. S~Uer's failure to provide coniplete and accurate information in a timely manner can significantly impact Idaho Power's abilty and .35- Draft for Discussion Purposes Only Draft for Dicussion Purposes Only Page 100 of 175 cost to attai the NR designation for the Seller's Facilty and the Sener shan bear the costs of any of these delays tht are a result of" any acton or inacton by the SeDer. -36- Draf for Discussion Purposes Only Draft for Discussion Purposes Only Page 101 of 175 APPENDIXC ENGINER'S CERTIFICATION OF OPERATIONS & MAINANCE POLICY The undersigned , on behalf of himelf /herlf and ,hereìnafter collectìvely referred to as "Engìneer," hereby states and certìfes to the Seller as follows: 1. That Engìeer ìs a Lìcensed Professìonal Engìnee ìn good standing ìn the State of Idaho. 2. That Engìneer has revìewed the Energy Sales Agrement, hereìnafter "Agreement," beween Idaho Power as Buyer. and as Seller, dated 3. That the cogenertìon or small power production project which is the subject of the Agreement and this Statement ìs ìdentìfied as Idao Power Company (IPCo) Facì1ty No.and is hereinfter referred to as the "Prject." 4.That the Project, which is cornonly known as the Prjec is located in Section _ Township Rage , Boise Merdian,County, Idaho,. 5. That Engineer recognizes that the Agrement provides for the Project to fuish electrcal enegy to Idaho Power for a year period. 6. That Engineer has substantial experience in the desìgn, constrction and operation of electrc power plants of the same type as this Project. 7. That Engineer has no economic relationship to the Design Engineer of this Prject. 8. That Engineer has revìewed and/or superised the revìew of the Policy for Operation and Maintenance ("O&M") for this Project and it is hìs professional opinon that, provìded said Project has been designed and -37- Draft for Discussion Purposes Only Draft for Diseusslon Purpes Only Page 102 of 175 built to apprprate standads, adence to said O&M Policy wil result in th Prject's producî at or nea the design electrcal output, effciency and plant factor for a year perod. 9. ThatEigiee reogns that Idao Power, in accordace wìth pargrph 5.2 of the Agrent. is relying on Engieerfs representations and opinons contained in ths Stateent. 10. That Engieer cerifies tht the above statements ar complete, tre and accute to th best ofbisler knowledge and therefore set hisler had and seal below. By (P.E. Stap) Date -38- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 103 of 175 APPENDIXC ENGINER'S CERTIICATION OF ONGOING OPERATIONS AN MAIENANCE The undersigned . on behalf ofhimselflherself and herinafter collectively refered to as "Engineer," hereby states and cerifies to the Seller as follows: I. That Engineer is a Licensed Professional Engieer in good standig in the State of Idaho. 2. That Enginee ha reviewed the Energy Sales Agreement, hereinafter "Agreement," beween Idaho Power as Buyer, and as Seller, dated 3. That the cogeneration or small power prouction projec which is the subject of the Agreement and ths Statement is identifed as Idao Power Company (IPCo) Facilty No.and hereinfter referred to as the "Project". 4.Tht the Project, which is commonly known as the Project, is located in Section _ Township Range . Boise Merdian,County, Idaho. 5. That Engieer recognizes that the Agreement provides for the Project to fush electncal energy to Idaho Power for yearpenod. 6. That Engineer has substantial expenence in the design, constrction and operation of electrc power plants of the same type as this Prject. 7. That Engineer has no economic relationship to the Design Engineer of this Project. -39- Draft for Discussion Purposes Only Draft for Discussion Purposes Ony Page 104 of 175 8. That Engineer has inade a physical inspection of said Project, its operations and inntenance recQrds since the lat previous cerifed inpection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and tht if adhernce to sad O&M Policy continues, the Prject wil continue producing at or near its design electcal output, effciency and plant factor for the reining years of the Agreeient. 9. That Engieer recognes tht Idaho Power, in accordance with pargraph 5.2 of the Agreeient, is relyig on Engieer's representations an opinions contained in ths Statement. 10. Tht Engineer certifies that the above statements are complete, tre and accurate to the best of his/er knowledge and therefore sets hislher had and seal below. By (p.E. Stamp) Date -40- Draft for Disciission Purposes Only Draft for Discussion Purposes Only Page 105 of 175 APPENDlXC ENGINER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned . on behaf of himselflherself and hereinfter collectively referred to as "Engineer", hereby states and cerfies to Idaho Power as follows: 1. That Engineer is a Lü:(lsed Professional Engieer in good staclg in the State ofIdaho. 2. That Engineer has reviewed the Fin Energy Sales Agrement, hereinafter "Agreement", between Idaho Power as Buyer, and as Seller, dated ~ 3. That the cogeneration or small power production project, which is the subject of the Agreement and this Statement, is identified as Idaho Power Company (IPCo) Facìlty No and is hereinafter refered to as the "Projec". 4.That th Project, which is commonly known as the Project, is located in Section _ Township Range , Boise Meridian,County, Idaho. 5. That Engineer recognzes that the Agreement provides for the Project to fuish electrical energy to Idaho Power for a year perod. 6. That Enginee has substantial experience in the design, construction and operation of electc power plants of the same type as this Project. 7. That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. -41- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 106 of 175 8. That Engineer has reviewed the engineering design and constction of the Projecti ìncludig the civi work, electcal work, generating equipment, prie mover conveyance system, Seller fuished Internnection Facilties and other Project facilities and equipment. 9. That the Project has been conscted in accordance with said plans and specificatons, all applicable codes and consistent with Prudent Elecrical Practices as that ter is described in the Agrent. 10. That the design and c.onstrction of the Project is such that with reasonable and prudent operation and matenance pracces by Seller, the Project is capable of performing in accordace with the ter of the Agreement and with Prudet Electrcal Practices for a year perod. 11. That Engineer recognizes that Idaho Power, in accordance with pargraph 5.2 of the Agreement, in inteonnecting the Project with its system, is relying on Engineer's representations and opinions contaed in this Statement. 12. That Engiee certifies that the above statements are complete, tre and accurate to the best ofhisler knowledge and therefore sets his!her hand and seal below. By (P.E. Stamp) Date -42- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 107 of 175 APPENDIXD FORMS OF LIQUI SECURTY The Seller shall provide Idaho Power with commercially reasonable security instnnients such as Cash Escrow Secrity, Guarntee or Leter of Credit as those terms are defmed below or other forms of liquid financial security that would provide readily available cash to Idaho Power to satisfy the Delay Securty requirement and any other secuty requirement with this Agreement. For the purose oftms Appendix D, the ter "Credit Requirements" shall mean accetable fiancia creditwortess of the entity providing the securty instnnint in relation to the ter of the obligation in the reasonable judgment of Idao Power, provided that any guarantee and/or letter of credit issued by any other entity with a short-term or long~term investment grade credt ratig by Standard & Poor's Corpration or Moody's Investor Serices, Inc. shall be deeed to have acceptable fmacial creditwortness. 1. Cash Escrow Security - Seller shall deposit fuds in an escrow account established by the Seller in a banng institution acceptable to both Parties equal to the Delay Security or any other requied securityanount(s). The Seller shall be responsible for all costs, and receive any interest eared associated with establishing and maintainng the escrow account(s). 2. duarantee or Letter of Credit Securty - Seller shall post and maintain in an amount equal to the Delay Securty or any other requi securty amounts: a) a guaranty from a part that satisfies the Credit Requirements, in a form acceptable to Idaho POWer at its discretion, or b) an irrevocable Letter of Credit in a form acceptable to Idaho Power, in favor of Idaho Power. The Letter of Credit -43- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 108 of 175 wil be issued by a ficia intitution acceptable to both paies. The Seller sha be resible for all costs associated with estblishig and mataig the Guates) or Letts) of Credit. 44- Dra for Discussion Purposes Only Draft for Discussion Purposes Only APPENDlXF MONTY ENERGY PRICES Mils per Kwh Page 109 of 175 Light Load Purchase Price $23.19 $27.50 $21.66 $21.78 $20.20 $21,3 $27.61 $32.25 $30.37 $30.40 $33.23 $28.71 $24.61 $28.30 $23.36 $29.27 $23.20 $20.69 $30.50 $34.49 $32.75 $31.67 $34.03 $29.46 $21.90 $30.60 MonthlYear Heavy Load Purchase Price Jan-12 Feb-12 Mar-12 $25.80 $30.70 $27.41 $25.11 $22.79 $22.93 $30.74 $36.43 $34.89 $36.96 $37.91 $33.14 $28.97 $33.75 $29.20 $30.36 $26.07 $23.72 $32.99 $40.10 $38.27 $38.03 $40.05 $35.41 $30.99 $35.97 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 -45- Draft for Discussion Purposes Only Mar-14 Apr-14 May-14 Jun-14 Jul.14 Aug-14 Sep-14 Oct-14 Nov-14 000-14 Jan-15 Feb-15 Mar-15 Apr-15 May.15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May.16 Jun-16 Jul-16 Aug-16 Draft for Discussion Purposes Only Page 110 of 175 $30.84 $29.16 $24.69 $24.99 $35.84 $42.33 $40.92 $42.13 $43.20 $37.94 $33.88 $38.86 $34.42 $31.19 $25.27 $27.89 $38.40 $45.19 $42.98 $42.37 $43.28 $40.45 $36.13 $40.63 $36.06 $35.83 $29.12 $30.77 $68.89 $75.71 $25.81 $21.87 $21.35 $21.97 $31.33 $36.79 $35.42 $39.72 $38.17 $31.00 $27.26 $32.53 $28.86 $24.34 $21.41 $25.10 $35.24 $38.52 $37.30 $34.26 $34.84 $34.26 $29.12 $35.46 $30.00 $33.71 $27.04 $28.00 $64.87 $69.66 -46- Draft for Discussion Purposes Only Sep-16 00t-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Deo-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug~18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Draft for Discussion Purposes Only Page 111 of 175 $73.22 $71.26 $73.35 $70.37 $66.31 $69.31 $64.94 $60.99 $56.89 $60.34 $70.63 $76.92 $74.21 $76.55 $78.31 $73.42 $69.15 $71.92 $67.35 $63.71 $56.49 $60.90 $73.Q7 $81.04 $77.43 $76.59 $75.06 $74.76 $71.40 $73.70 $68.64 $65.40 $65.75 $64.20 $61.38 $63.18 $58.89 $53.08 $54.04 $57.36 $6ti.46 $70.51 $70.23 $73.04 $71.39 $68.31 $61.27 $65.64 $63.95 $56.58 $56.26 $59.22 $66.57 $74.11 $72.06 $69.89 $66.65 $71.07 $64.36 $67.41 -47- Draft for Discussion Purposes Only Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oet-20 Nov~20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May~21 Jun-21 Jul-21 Aug-21 Draft for Diseussion Purposes Only Page 112 of 175 $68.53 $68.99 $61.82 $62.57 $74..97 $83.16 $80.32 $78.88 $77.15 $78..59 $74.56 $76.01 $71.12 $66.78 $60.93 $65.61 $78.07 $86.24 $83.34 $85.15 $84.03 $83.26 $79.77 $82.43 $74.46 $68.17 $63.58 $68.09 $81.57 $91.49 $64.37 $65.72 $5.53 $58.46 $70.35 $76.29 $74.10 $68.14 $68.86 $74.57 $68.71 $71.03 $66.10 $57.99 $56.79 $60.07 $71.87 $79.88 $75.79 $81.66 $18.86 $77.96 $71.39 $74.41 $69.09 $61.51 $60.63 $63.20 $75.94 $85.07 -48- Draft for Discussion Purposes Only Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr~23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Draft for Discussion Purposes Only Page 113 of 175 $87.12 $85.10 $85.44 $88.90 $83.60 $85.06 $77.11 $76.35 $67.90 $70.69 $84.48 $94.54 $91.12 $88.11 $89.86 $93.33 $85.25 $86.38 $79.58 $72..38 $67.93 $73.20 $87.64 $97.57 $91.97 $96.02 $95.75 $96.72 $89.06 $91.06 $79.77 $78.02 $77.41 $83.37 $75.82 $76.56 $70.26 $70.63 $66.47 $64.68 $82.29 $88.07 $81.74 $80.16 $81.99 $86.78 $78.01 $78.67 $70.59 $65.36 $62.41 $69.59 $82.98 $91.00 $82.43 $91.34 $90.74 $87.04 $79.95 $82.14 -49- Draft for Discussion Purposes Only Mar-24 Apr-24 May-24 Jun-24 Ji.I-24 Aug-24 Sep-24 Oet-24 Nov-24 Oec-24 Jan~25 Feb-25 Mar-25 Apr-25 May~25 Jun~25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Oec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Draft for Discussion Purposes Only Page 114 of 175 $82.11 $76.01 $69.45 $73.23 $90,65 $101.88 $97.10 $95.54 $93.94 $99.35 $91.16 $91.63 $83.60 $82.64 $75.76 $77.55 $94.99 $105.27 $100.03 $97.95 $96.09 $104.18 $94.31 $95.56 $88.32 $81.34 $7.5.72 $81.50 $97.73 $108.93 $73.66 $68.34 $65.53 $71.54 $85.30 $95.62 $88.38 $87.00 $84.83 $90.89 $81.30 $85.14 $77.71 $76.52 $70.65 $71.43 $89.48 $97.92 $89.91 $88.60 $86.70 $94.40 $87.37 $87.67 $81.64 $76.02 $72.70 $74.43 $93.17 $103.54 ~50- Draft for Discussion Purposes Only Sep~26 Oct-26 Nov-26 Dec-26 Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27 Aug-27 Sep-27 Oct-27 Nov-27 Dec-27 Jan-28 Feb-28 Mar-28 Apr-28 May-28 Jun-28 Jul-28 Aug-28 Sep-28 Oct-28 Nov-28 Dec-28 Jari-29 Feb-29 Draft for Discussion Purposes Only Page 115 of 175 $104.65 $105.27 $106.57 $106.28 $96.05 $97.13 .$90.36 $82.86 $78.59 $84.46 $101.19 $113.52 $108.81 $105.53 $108.53 $111.53 $103.02 $100.54 $92.55 $90,47 $85.36 $87.80 $104.83 $117.17 $111.16 $108.25 $113.74 $114.65 $106.96 $105.96 $92.32 $97.10 $9.51 $96.26 $8.50 $90.95 $83.26 $78.50 $74.07 $77.70 $96.62 $106..64 $98.09 $97.31 $91.50 $103.48 $98.29 $95.03 $86.97 $86.32 $18.91 $78.90 $99.63 $108.29 $97.64 $98.68 $105.54 $108.65 $101.25 $9ê.00 -51- Draft for Discussion Purposes Only Mar-29 Apr-29 May-29 Jun-29 Jul-29 Aug-29 Sep-29 Oct-29 Nov-29 Dec,.29 Jan-30 Feb-30 Mar-30 Apr-3Q May-30 Jun-30 Jul-30 Aug-30 Sep-30 Oct-30 Nov-30 Dec-30 Jan-31 Feb-31 MClr-31 Apr-31 May-31 Jun-31 Jul-31 Aug-31 Draft for Discussion Purposes Only Page 116 of 175 $97..19 $89.16 $84.54 $87.52 $107.33 $121.30 $115.62 $117,30 $117.77 $117.60 $104.47 $102.79 $94.31 $88.67 $85.74 $87.40 $103.41 $116.13 $111.86 $109.55 $114.65 $117.27 $107.01 $105.28 $96.54 $90.73 $87.71 $89.42 $105.92 $119.01 $91.08 $83.94 $80.05 $83.09 $100.70 $113.99 $104.79 $111.85 $112.05 $115.08 $98.19 $94.99 $89.45 $84.60 $81.40 $81.31 $99.02 $108.11 $102.14 $101.68 $105.63 $110.45 $100.54 $97.24 $91.54 $86.54 $83.25 $83.16 $101.40 $110.75 -52- Draft for Discussion Purposes Only Sep-31 Oct-31 Nov-31 Dec-31 Jan-32 Feb-32 Mar-32 Apr-32 May-32 Jun-32 Jul-32 Aug-32 Sep,32 Oct-32 Nov-32 Dec-32 Jan-33 Feb-33 Mar-33 Apr-33 May-33 Jun-33 Jul-33 Aug-33 Sep-33 Oct-33 Nov-33 Dec-33 Jan-34 Feb-34 Draft for Discussion Purposes Only Page 117 of 175 $114.62 $112.24 $117.49 $120.19 $109.56 $107.78 $98.78 $92.80 $89.69 $91.45 $108.44 $121.93 $117.40 $114.95 $120.36 $123.14 $112.31 $110.48 $101.21 $9$.04 $91.84 $93.66 $111.16 $125.05 $120.39 $117.86 $123.43 $126..30 $115.08 $113.20 $104.61 $104.13 $108.20 $113.17 $102.90 $99.50 $93.63 $88.48 $85.09 $85.00 $103.78 $113.42 $107.09 $106.60 $110.79 $115.91 $105.45 $101.95 $95.90 $90.60 $87.11 $87.01 $106.36 $116.29 $109.76 $109.26 $113.58 $118.85 $108.02 $104.41 -53- Draft for Discussion Purposes Only Mar~34 Apr-34 May'-34 Jun-34 Jul-34 Aug-34 Sep-34 Oct-34 Nov-34 Dec-34 Jan-35 Feb-35 Mar~35 Apr-35 May-35 Jun-35 Jul-35 Aug-35 Sep-35 Oct-35 Nov-35 Dec-35 Jan-36 Feb-36 Mar-36 Apr-36 May~36 Jun-36 Jul-36 Aug-36 Draft for Discussion Purposes Only Page 118 of 175 $103.65 $97.30 $94.00 $95.87 $113.89 $128.20 $123.40 $120.80 $126.54 $129.49 $117.94 $115.99 $106.16 $99.62 $96.22 $98..15 $116.71 $131.45 $126.50 $123.82 $129.74 $132.78 $120.82 $118.82 $108.69 $101.95 $98.45 $100.43 $119.55 $134.74 $98.18 $92.72 $89.12 $89.02 $108.96 $119.18 $112.46 $111.94 $116.39 $121.82 $110.66 $106.94 $100.53 $94.90 $91.20 $91.10 $111.63 $122.16 $115.24 $114.70 $119.29 $124.87 $113.32 $109.49 $102.89 $97.09 $93.28 $93.17 $114.32 $125.16 ~54- Draft for Discussion Purposes Only Sep.- oe.- Nov.- Dec36 Dra for Dldo Pu Oøy Page 119 of 175 $129.64 $126.$8 $132.97 $136.11 $118.03 $117.49 $122.21 $127.96 ..Draft fnr Dleu.. pG.l' Ou Page 120 of 175 &hin, Randy From: Sent: To: Cc: Subject: Attachments: Peter Richardson £peter~rihardsonandoleary.comi Saturday, Decmber 03, 2011 2:05 PM Walker, Donovan; Allphin, Randy Robert Paul FW: image2011-12-03-140359.pdf Donovan and Randy, please see the attached letters regarding Grand View PV Solar TWO, Three and Four. I am looking forward to your response. -Pete Peter Richardson Richardson & O'Lear, PLLC 51 S N. 27th Stree Boise, Idaho 83702 (208) 938-7901 office (208) 867-2021 cell petercgchårdsonandolear.com Front: Scanner Sent: saturday, Dember 03, 2011 2:03 PM To: Peter Richardson Subject: i Page 121 of 175 llli(CH;JiISGiN "'0~. PUC AtTORNIlYS AT LAW Peter Richardson Tel: 208.~~8.790 1 l'u: 208-9~8-7904 pcr~ r,¡ri ch. rd.un.ndol~. .y. com i~o. Bm,7218 8oi... lD 8.~707 . 515 N. 27th St. Boi.., m U702 3 December 20 I 1 Via U.S. Mail and Elect1onicMiil Donavan Wa1kr dwalkerCßidahpawer.comLegal Dearent Idaho Power Company 1221 West Idaho Street Boise, ID 83702 RE: Grd View PV Solar Two Dear Donovan: This is ii reponse to Randy Allphin's email yeseray regadirtg the power purhas agreement for Grand ViewPV Solar Two. Rady appear to be under the mistaen impression tht the Grand View PV Solar Two power purcha agreement th Idaho Power offered is to be replaced by the woefuly iiadequate draf atthed to his emai. See my letter of this date regading Grand View PV Solar Th and Four for details as to the inadequa of the most curt draf contract As you know, it is not Idao Power's place to detenine when a legatiy enforceable obligation has been secure by a QF project develope. That fat was only just recentl made evident in the Cedar Creek lOS. Idaho PUC FERC docket. As you also know, the Grand View PV Solar Two contrt wa :flly negotiated and all its terms and conditions seled beteen the pares -- but for the sinle dispute over REC ownership language. That contrct (and tht single issue) has been lodged with the Idaho PUC for deterriiatn. We wilJ, of course abide by the Idaho PUC's deterriríation, aud expect Idaho Powet wil do the same. --iY';l...~ ). ' j . P"(~...l)¡l~PeWJ. l(dfar$O RicbasQl &, O'Lear PLLC Page 122 of 175 iU€fíR~S'Or _Ðl~. I!LLC ATTORNEYS AT LAW Peter Richardson Tel, 208-938-7901 Fax: 208-938-7904 pcç.: rlPric h a rd~Q nan dplC'liry.coli P.O. Box 7118 Bo¡...IO 83707 - 515 N. 27th St. Bois.,lD 83702 3 Deeember 2011 Via Us. Mail and Electronic Mail Donavan Walker dwalk~idahopower.com Legal Deparent Idaho Power Company 1221 West Idaho Street Boise, ID 83702 RE: Grad View PV Solar Th and Four Dear Donovan: This is in response to Rady Allphin's email yestday in response to my Jul 2,2011, request fQr power purhase agreements for Grand View PV Solar Three and Four. It appears the contracts teder by Randy ar not ìn compliance with multple Idaho PUC requirents for calculatng avoided cost rates for projeets greater th 100 kw using the IR metodology. In addition, the contr fail to adjust offered rates to account for seasality. Finally the contract contain language that is curntly the object of litigaton before the Idaò PUC relating to ownership ofRECs. None of this is acceptable. Severl month AFR Grand View Thee and Four's requests for were made, Idaho Power calculated avoided cos rates for the Interconnec Solar project containng avoided co rates based on the IRP methodology tht prduced a levelizd rate of $105.14 which pursut to that agrment is adjusted baed on the month and tie of year that facilit produces energy and capacity. The heavy load hour price in the contrac Rady tendered star at $25.80 and do not reaoh the $104 level until 2027. Needless to say. at a minium, the rates in OUT contrct$ should be based on the same methodology usi:ig the same inputs and assuiptipns as were use for Interconect Solar, since we were in the queue before that oontact was prepard. May I hear frm you this week as to how Idao Power inteds to corrct these problems? Also, I believe we ar entitled to copies of all caculations, and work paers supporting the same, used in preparg the rate in the tendered dr. , SincerelX, x.;') 7 ,.,,"7 ' 1'/ 'V ,ø-, ..-G /! ¿?"é;,pet~. Richardson ~ Richardson &. O'Lear PLLC &hin, Randy From:se: To: Cc: Subjec:Athment: Pagoaga, Richard Thul'ay, Decmber 08, 2011 3:20 PM Oarringtòn, Michae; Allphin, Randy DeVol, Philp Grandview Solar PV 2-4 2011 IRP no carbn.x1sx Gradview Solar PV 2-(~2011 IRP no carbo.xsx GrahdviewSolar PV 2-4 with update solar benchmark 1 Page 123 of 175 Page 124 of 175 Aliphin5Randy Fl"m: Sent: To: Subject:Attchments: Allphin, Randy Friday, December 16,201111:36 AM Walker, Donovan FW: Draft Grand View Solar II purchase poer agreement Grand VieW Solar II draft PPA 3-10-2011.doc Tracking:Recipient Walker. DonoVln Read Read: 12/16101111:36 AM From: Allphin, Randy sent: Thursday, March 10, 2011 2:00 PM To: 'robertpauI08CWgmail.com' Cc: 'Peter Richardson'; Walker, Donovan SUbjec:: Draft Grand View Solar II purchase power agrement Mr. Paul, As you requested attached is a draft PURPA purchase power agreement for your' proposed Grand View II 20 MW solar project. The priCing contained within this proposed agreement is based upon the energy shape you provided that we then used to execute the IRP priCing model. This draft agreement is for discussion purposes only and Idaho Power reserves the right to modify this agreement at any time until both parties have executed an agreed upon document. Only after agreement by both parties, execution of an agreement by both parties aiid approval of the Agreement by the Commission shall a binding commitment exist. Please review and contact me with any ciuestions you may have. Randy 1 Are1e 1 2: 3 4 5 6 7 8 9 10 11 12 13 14 15 16 i7 18 19 20 21 22 23 24 2S 26 27 28 29 Draf for Discussion Purpos Only FI ENGY SALS AGREEM BETEN IDAHO POWE COMPAN AN Page 125 of 175 TABLE OF CONTS 'irlLE Defions No Relice on Idao Power Waries Cotions to Acce of Energy Ter and Opion Date Puhase an Sale of Ne Ene Puha Prce an Metod of Payment Envinmen Attribute Facilty and Interonnion Meteg and Telemet Recrds Option Indenifieaion an InSur Forc Majeu Liabity; Decation Severa ObligaQPWai Choice of Laws an Venue Disptes an Default Governenta Autorition COmmssion Orde Succor an Assign Modifcaon Taxes Notices Addini Ter and COndtions Sevbily COunteBnti ~en Signtu Appdi A AppdixB AppdiC Ap~D Dra for Discussion Purposes Onl Draft for Dicussion Purposes Only Page 126 of 175 FIR ENERGY SALES AGREEMENT (Solar Project - Greater than 100 kW) Project Name: Grand View Solar II Project Number: THIS AGREEMENT, enter into on this _ day of 2011 beteen (Seller), and IDAHO POWER COMPAN, an Idaho corporation (Idao Power), hereinafter sometimes referred to collectively as "Paries" or individually as "Par." WITNSSETH: WHEREAS, Seller wil design, constrct, own, maintai and opeate an electrc generation facilty; and WHREAS, Seller wishes to sell, and Idaho Power is wiling to purhase, fin electc energy produced by the Seller's Facilty. THREORE, In consideration of the mutual covenants and agreements hereinafer set fort, the Paries agree as follows: ARTICLE I: DEFINIONS As used in this Agreement and the appendices attached hereo, the following terms shall have the following meangs: 1.1 "Bas Energy" - Monthly Net Energy less tha 110% of the monthly Net Energy Amount as specified in paragraph 6.2 of ths Agreement less any Net Energy that is deteined to be Surlus Energy as specified within this Agreement. 1.2 "Commission" - The Idao Public Utilties Commission. 1.3 "Contract Year" - The period commencing each calenda year on the same calendar date as the Operation Date and ending 364 days thereafter. -1- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 127 of 175 1.4 "Delay Liquidated Damages" - Damages payable to Idaho Power as calculated in paragraph 5.3,5.4, 5.5,5.6 and 5.8. 1.5 "Oelay Period" - All days past the Scheduled Operation Date until the Seller's Facilty achieves the Opertion Date. 1.6 "Delay Price" - The curent month's Mid~Columbia Market Energy Cost minus the currcnt month's All Hour Energy Price specified iti paragraph 7.2 of this Agreeent. IfthÍS calculation results in a value less th 0, th result of this calculation wm be o. 1.7 "Designated Dispatch Facilty" - Idao Power's Systems Opertions Group, or any subsequent group designated by Idaho Power. 1.8 "Facilty" - That electrc generation facility described in Appendix B of this Agreement. 1.9 "First Energy Daten - The da conuencing at 00:01 hours, Mountai Time, fOllQwig the day tht Seller has satisfied the requirements of Arcle N and the Seller begins delivering energy to the Idao Power electrical system at the Point of Delivery. 1.10 "Heavy Load Hours" - The daily hours begig at 7:00 am, ending at 11 :00 pm Mountai Time, (16 hos) excludig all hours on all Sundays, New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgivig and Chrstmas. 1.11 "'Heay) Load Peak Houa" - The daily Heavy Load Hours from hour beging at 3 :00 pm though hour ending 7 pm Mountain time, (4 hour). 1.12 "Heavy Load Stadard Hours" ~ The daily Heavy Load Hours not included as Heavy Load Peak Hours. 1.13 "Interconnection Facilties" - All equipment specified in Schedule 72. 1.14 "Light Load Hours" - The daily hour beginning at 11:00 pm, ending at 7:00 am Mountain Time (8 hours), plus al other hours on all Sundays, New Year Day, Memorial Day, Independence Day, Labor Day, Thagiving and Chrstmas. 1.15 "Losses" - The loss of electrcal energy expressed in kilowatt hour (kWh) occurng as. a result of the transfonnation and transmission of energy between the point where the Facility's energy is metered and -2- Draft for Discussion Puroses Only Draft for Discussion Purposes Onl Page 128 of 175 the point the Facilty's enery is delivered to the Idao Power electrical system. The loss calculation formula will be as specified in Appendi B of ths Agreement. 1.16 "Market Ener Reference Price" ~ Eighty-five percent (85%) of the Mid-Columbia Market Energy Cost. 1.17 "Material Breach" - A Default (pargraph 19.2.1) subject to paragraph i 9.2.2. 1.18 "Maximum Capacity Amount" - The maximum capacity (MW) of the Facilty wil be as specified in Appendi B ofthís Agrment. 1.19 "Meterig Equipment" - All equipment speified in Schedule 72, this Agreement and any additional equipment specified in Appendix B reuired to measure, record and telemeter bi directional power flows between the Seller's electric generation plant and Idaho Power's system. 1.20 "Meterig Point" - The physical point at which the Meterig Equipment is located that enables accurate measurement of the Test Energy and Net Energy deliveries to Idao Power at the Point of Delivery for this Facility tht provides al necessar data to admiister thìs Agreeent. 1.21 "Mid-Columbia Market Energy Cost" - The monthly weighted average of the daily on-peak and off- peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by .the reporting agency, both Paries wil mutually agree upon a relacement index. which is similar to the Dow Jones Mid-Columbia Index. The seleced replacement index wil be consistent with other similar agrements and a commonly used index by the electcal industry. i .22 "Nameplate Capacity" -The ful-load electrcal quantities assigned by the designer to a generator and its prime mover or other piece of electrical equipment, such as trasforters and circuit breakers, under standaized conditions, expressed in amperes, kilovolt~amperes, kilowatts, volts or other appropriate units. Usually indicated on a nameplate atached to the individual machie or devce. i .23 "Net Energy" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh) delivered to Idaho Power at the Point of Delivery. Subject to the -3- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 129 of 175 term of this Agreement, Seller conuts to deliver all Net Energy to Idaho Power at the Point of Delivery for the full tenn of the Agreement. 1.24 "Operation Date" - The day commencing at 00:01 hours, Mountain Time, following the day that all reqttrements of Pargrph 5.2 have been completed. 1.25 ..Point of De1ivery" - The location specified in Appendix B, wher Idaho Power's and the Seller's electrcal facilties are interconneced and the energy frm this Facilty is delivered to the Idao Power electrical system. 1.26 ..Prudent Electrical Practices" - Those pratices, methods and eqttpment that are commonly and ordinly used in electrcal engineering and operations to operte electric equipment lawfully, safely, dependably, effciently and econonically. 1.27 '.Scheduled Operation Date" - The date specified in Appendi B when Seller anticipates achieving the Opertion Date. It is expected that the Scheduled Operation Date provided by the Seller shall be a reasonable estimate of the date that the Seller anticipates that the Seller's Facilty shal achieve the Operation Date. 1.28 "Schedule 72" - Idaho Power's Tariff No I 01, Schedule 72 or its successor schedules as approved by the Conussion. The Seller shall be responsible to pay all costs of interconnection and ìntegration of this. Facility into the Idaho Power electrcal system as specified within Schedule 72 and this Agreement. 1.29 .'Season" - The thee perods identified in paragraph 6.2.1 of this Agreement. 1.30 "Special Facilities" - Additions or alterations of trsmission and/or distribution lines and transforers as described in Schedule 72. 1 .31 ..Station Use" - Electric .energy that is used to opere equipment that is auxiliar or otherwise related to the production of electricity by the Facility. 1.32 "Surlus Energy" - Is (1) Net Energy produced by the Seller's Facilty and delivered to the Idaho Power electrcal system during the month which exceeds 1 10% of the monthly Net Energy Amount for the corrsponding month specified in paragraph 6.2. or (2) All Net Energy produced by the Seller's Facilty and delivered to the Idaho Power electrcal system in any month where the Net Energy delivered for -4- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 130 of 175 that month is less than 90% of the montWy Net Energy Amount for the corespondig. month specified in paragraph 6.2. or (3) All Net Ener produced by the Seller's Facility and delivered by the Facilty to the Idaho Power electrical system prior to the Operation Date. 1.33 "Total Cost of the Facility" - The total cost of structures, equipment and appurtenances. ARTICLEIl; NO RBCE ON IDAHO POWE 2.1 Seller Independent Investigation - Seller war and represents to Idao Power tht in enterng into this Ageement and the undertg by Seller of the obligationS set fort herin, Seller has investíg.ated and detenined that it is capable of penonning hereunder and has not relied upon the advice, expenence or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent Experts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in underakng the transactíons contemplated by this Agreement have been solely those of Seller. ARTICLE II: . WARIES 3. I No W¡uanty by Idaho Power - Any review, acceptace or failure to review Seller's design, specifications, equipment or facilties sh not be an endorsement or a confirmation by Idaho Power and Idao Power makes no waranties, expressed or implied, regarding any aspect of Seller's design specifications, equipment or faciltíes, including, but not limited to, safety, durabilty, reliabilty, strngt, capacity, adequacy or economic feasibilty. 3.2 Qualifyg Facility Status - Seller warans that the Facilty is a "Qualifyg Facility," as that term is used and defined in 18 CFR 292.201 et seq. After initial qualification, SeUer wil tae such step as may be required to mainta the Facility's Qualifyng Facilty status during the term of this Agent and Seller's failure to maitain Qualifying Facilty status wil be a Material Breach of ths Agreement. Idaho Power reserves the right to review the Facilty's Qualifyng FacUity status and associated support and compliance documents at anyte durng the tenn of this Agreement. -5- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 131 of 175 ARTICL lV: COONS TO ACCEPTANCE OF BNGY 4.1 Prior to the First Energy Date and as a condition ofIdaho Power's acceptance of deliveries of energy from the Seller under this Agrement, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller' 8 operations have ben obtaed from applicable federal, state or loca authoritìes, includig, but not limited to, evidence of compliance with Subpar B, 18 CFR 292.201 et seq. as a certified Qualifyig Facìlty. 4.1.2 Opinon of Counel - Submit to Idaho Power an Opinon Letter signed by an attorney ac:itted to practice and li good standig in the State ofIdao providìg an opinion that Seller's licenses, permits and approvals as set forth in pargrh 4.1.1 above are legaUy and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinon that Seller is in substantial compliance with said permits as of the date of the Opinion Leter. The Opinion Letter will be in a form acceptable to Idaho Power and wil acknowledge that the attorney renderig the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form wil not be utrsonably withheld. The Opinion Leter wil be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Sectìon of Business Law (1991). 4.1.3 Nameplate Capacity ~ Submit to Idaho Power manufacturer's and engineering docuentation that establishes the Nameplate Capacity of each individual generation uni that is included within this enti Facilty and also the tota of these components to determne the Facilty Nameplate Capacity rating. Upon receipt of this data, Idao Power shall review the provided data and detere if the Nameplate Capacity specifed is reasonable based upon the inanufacturer's specified generation ratings for the specific genertion unts. 4.1.4 Engineer's Certifications - Submit an executed Engineer's Certification of Design & Constrction Adequacy and an Engineer's Certifcation of Opeations and Maintenance (O&M) Policy as described in Commission Order No. 21690. Thes.e certficates wil be in the form -6~ Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 132 of 175 specified in Appendi C but may be modified to the extent necessar to recognize the dífferent engineering disciplines providing the certificates. 4.1.5 Insurance - Sublït wrtten proof to Idaho Power of all insurnce required in Arcle xm. 4.1.6 Interconnection - Provide wrtten eonfirtion frm Idaho Power's delivery business unit that Seller has satisfied all interconnection requiments. 4.1.7 Network Resource Designation - The Seller's Facilty has been designted as a network resource capable of deliverig firm energy up to the amount of the Maximum Capacity. 4.1.8 Written Acceptance - Request and obtain wrtten confirmation from Idaho Power that all condítions to acceptance of energy have been fufilled. Such written conftion shall be provided withi a cottercially reasonable time following the Seller's requestand wil not be uneasonably withheld by Idao Power. ARTICLE V: TERM AN OPERATION DATE 5.1 Ter - Subject to the provisions of pargraph 5.2 below, ths Agrment shl beCome effective on the date first wrtten and shall contiue in full force and effect for a perod of tweny (20) Contract Year from the Opeation Date. 5.2 Operation Date - The Operation Date may occu only after the Faclity has achieved all of the following: a) Achieved the Firt Energy Date. b) Commssion approval of this Agreement in a form acceptable to Idaho Power has been received. c) Seller has demonstrated to Idao Power's satisfaction that the Facilty is complete and able to provide energy ina consistent, reliable and safe maner. d) Seller has requested an Operation Date from Idaho Power in a wrtten format. e) Seller has received wrtten confiration from Idaho Power of the Opeation Date. This confirmation wil not be unrasonably withheld by Idaho Power. 5.3 Operation Date Delay - Seller shall cause the Facilty to achieve the Operation Date on or before the -7- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 133 of 175 Scheduled Opertion Date. Delays in the interconnection and transmission netork upgrde study, design and constrction procss that are not Force Majeur events accepted by both Pares, shall not prevent Delay Liquìdated Damages from beg due and owin as calculated in accordce with this Agreement. 5.3.1 lfthe Operation Date occurs after the Scheduled Operation Date but on or prior to ninety (90) days following the Scheduled Operation Date, Seller shall pay Idaho Power Delay Liquidated Damages calculated at the end of each calendar month aftr the Scheduled Operation Date as follows: Delay Liquidated Damages are equal to ((Curent mouth's Intial Year Net Energy Aiou:t as specified in paragraph 6.2.1 divided by the number of days in the current month) multiplied by the number of days in the Delay Perod in the current month) multiplied by the curent month's Delay Price. 5.3.2 If the Operation Date does not occur withn ninety (90) days following the Scheduled Operation Date, the Seller shall pay Idaho Power Delay Liquidated Damages in additìon to those provided in pargrh 5.3.1, calculated as follows: Fort five dollars ($45) multiplied by the Maximum Capacity with the Maximum Capacity beingineasur in kW. 5.4 If Seller fails to achieve the Opertion Date within ninety (90) days following the Scheduled Operatìon Date, such failure wil be a Material Breach and Idao Power may terinate ths Agreement at any tie nnW the Seller cures the Materal Breach. Additional Delay Liquidated Damages beyond those calculated in 5.3.1 and 5.3.2 wil be calculated and payable using the Delay Liquidated Damage calculation described in 5.3.1 above for all days exceeding 90 days past the Scheduled Operation Date unti such time as the Seller cutes this Materal Breach or Idaho Power termintes this Agreeent. 5.5 Seller shal pay Idaho Power any calculated Delay Damages or Delay Liquidated Damages within seven (7) days of when Idaho Power calculates and presents any Delay Damages or Delay Liquidated Damages bilings to the Seller. Seller's failur to pay these damages within the specified time wil be a Material Breach of ths Agreement and Idaho Power shall drw fuds from the Delay Securty provided -8- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 134 of 175 by the Seller in an aioUIt equal to the calculated Delay Damges or Delay Liquidated Damges. 5.6 The Paries agree that the damages Idaho Power would incur due to delay in the Facilty achieving the Operation Date on or before the Scheduled Operation Date would be dicult or impossible to predict with certainty, and that the Delay Liquidated Damages are an appropriate approximation of such damges. 5.7 Pror to the Seller executing this Agreement, the Seller shall have; a) Filed for interconnection and is in compHance with all payments and requirements of the interconection procss b) Received an accepted an interconne.ction feasibility study for tils Facilty. c) Provided all inormation required to enable Idaho Power to fie an initial tranmission capacity request. d) Accepted the results of the initial trsmission capacity request. e) Acknowledged responsibilty for all interconnection costs and any costs associated with acquig adequate firm tranmission capacity to enable the project to be classified as an Idaho Power fi network resource. If final interconnection or transmission studies are not complete at the time the Seller executes ths Agreement, the Seller undestands that the Seller's obligations to pay Daages and Liquidated Damages associated with the projects faimre to achieve the Operation Date by the Scheduled Opertion Date as specified in ths Agreeent is not relieved by final interonnection or transmission processes and scheduls. 5.8 Within thirty (30) days of the date of a final non-appealable Commission Order as specified in Aricle XX approving this Agreement, the Seller shall post liquid secuty ("Delay Security") in a form as described in Appendix D equal to or exceeding the amount calculated in paragrph 5.8.1. Failur to post this Delay Security in the time specified above will be a Material Breach of ths Agreement and Idao Power may termnate this Agreement. -9- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 135 of 175 5.8.1 Delay Securty The greater of fort five ($45) multiplied by the Maximum Capacity with the Maximum Capacity being measured in kW or the sum of three month's estimated revenue. Where the estimated th months of revenue is the estimated revenue associated with the :fst three ful months following the estiated Scheduled Operation Date, the estimated kWh of energy production as speified in paragraph 6.2.1 for those three months multiplied by the All Hours Energy Price specified in pagraph 7.2 for each of those thre months. 5.8.1. In the event (a) Seller provides Idaho Power with certificaion tht (1) a generation interconnection agreeent specifng a schedule that wil enable this Facility to achieve the' Operation Date no later than the Scheduled Operation Date has been.completed and the Seller has paid all reuird interconnection costs, or (2) a generation interconnecton agreement is substantially complete and all materal costs of interconnection have been identified and agreed upon and the Seller is in compliance with all terms and conditions of the generation interconnection agreement, the Delay Securty calculated in accordance with pargraph 5.8.1 wil be reduced by ten percent (10%). 5.8.1.2 If the Seller has received a reduction in the calculated Delay Security as specifed in paragrph 5.8.1.1 and subsequently (I) at Seller's request, the generaion ineronnection a.greement specified in paragraph 5.8.1.1 is revised and as a relt the Facilty will not achieve its Operation Date by the Scheduled Operation Date or (2) if the S.eller does not maintain compliance with the generation interconnection agreement, the full amount of the Delay Securty as calculated in paragraph 5.8.1 wil be subject to reinsttement and wil be due an owing within five (5) business days from the date Idaho Power requests reinstatement. Failure to timely reinstate the Delay Securty wil be a Material Breach of this Agreement. 5.8.2 Idaho Power shall release any remaining security posted hereunder af all calculated Delay Damages and/or belay Liquidated Damages are paid in full to Idaho Power and the earlier of, 1) thiry (30) days after the Operation Date has been achieved, or 2) sixty (60) days after the Agreement has been -10- Draft for Discussion Puoses Only Draft for Discussion Purposes Only Page 136 of 175 ten:nated. ARTICLE VI: PURCHASE AN SALE OF NET ENGY 6.1 Deliver and Acceptance of Net Energy - Except when either Pary's perfotice is excused as provìded herin, Idaho Power wil purhase and Seller wil sell all of the Net Energy to Idaho Power at the Point ofDelìvery. Net Energ produced by the Facilty and deliver by the Seler at any moment in time to the Point of Delivery that exceeds the Maximum Capacity Amount wil be a Materal Breach of this Ageement. 6.2 Net Energy Amounts - Seller intends to produce and delìver Net Energy in the following monthly amounts: 6.2.1 Initial Year Monthly Net Energy Amunts: Month kWh Season 1 March April May Season 2 July August November December Season 3 June September October Januar Februar 6.2.2 Ongoing Monthly Net Energy Amounts - Seller shall intially provide Idao Power with one year of monthly genertion estmates (Initial Year Monthly Net Energy Amounts) an beginning at the end of month nine and every the months thereafter provìde Idaho Power with an additional three months of forward generation estimates beyond those generation estimates prvìously provìded. This information wil be provìded to Idaho Power by wrtten notice in -11- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 137 of 175 accordance with paragraph 25.1, no later than 5:00 PM of the 5th day following the end of the previous month. If the Seller does not provide the Ongoing Montly Net Ener Amounts in a timely manner, Idaho Power wil use the most recently provided 3 matching months of the Initial Year Monthly Net Energy Amounts specified in pargrph 6.2.1 for the next 3 mortths of montly Net Energy amounts. 6.2.3 Seller's Adjustment of Net Energy Amount 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance wíth paragraph 25.1, the Seller may revise: all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 9th month after the Operation Date and at the end of every third month thereafer: (i) the Seller may not revise the immediate next thre months of previously provided Net Energy Amounts, (2) but by written notice given to Idao Power in accordace with paragraph 25.1, no later than 5:00 PM of the 5th day following the end of the previous tnortth, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts wil be deemed to be an election of no change. 6.2.4 Idaho Power Adjustment of Net Energy Amount - If Idah Power is excused from accepting the Seller's Net Energy as specified in paragraph 12.2.1 or if the Seller declares a Suspension of Energy Deliveries as specified in pargraph 12.3.1 and the Seller's declared Suspension of Energy Deliveries is not unreasonably rejected accepted by Idaho Power, the Net Energy Amowt as specified in paragraph 6.2 for the specifc mortth in which the reductiort or suspension under paragraph 12.2.1 or 12.3.1 occur wil be reduced in accordance with the following: Where: NEA ~ Current Month's Net Energy Amount (paragraph 6.2) -12- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 138 of 175 SGU =a.) IfIdao Power is excused from accepting the Seller's Net Energy as specified in paragrph 12.2.1 this value wil be equal to the peentage of curtailment as specifed by Idao Power multiplied by the TOU as defned below. b.) If the Seller declars a Suspension of Energy Deliveries as specified in pargrph 12.3.1 this value wil be the sum of the individua generation units siz ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declar a Suspension of Energy Deliveres. TGU Sum of all of the individual generator ratings of the generation units at this Facilty as specified in Appendix B of this agreement. RSH = Actual hours the Facilty's Net Energy deliveres were either reduced or suspended under pargraph 12.2ó 1 or 12.3.1 = Actual total hours in the curt monthTH Resulting formula being:Adjusted ( ( Net Energy = NEA - . Amount sou X NEA ) X ( RSHTGU TH ) ) Ths Adjusted Net Energy Amount wil be used in applicable Surlus Energy calculations for only the specifc month in which Idaho Power was excused from accepting the Seller's Net Energy or the Seller declard a Suspension of Energy. 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contrct Year in an atount equal to at least ten percent (10%) of the Sum of the Initial Year Net Energy Amounts as specified in pargraph 6.2 shall constitute an event of default. ARTICLE VII: PURCHASE PRICE AN METHOD OF PAYMENT 7.1 Base Energy Puhase Price 7.1.1 Dug the months of March, April and May Idaho Power shall pay the non-levelized Heavy Load Energy Pnce for all Base Energy received durg Heav Load Hour and the Light Load -13- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 139 of 175 Energy Price for all Base Energy received durg Light Load hours for each yea as specified below: Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Heayy Load Energy Price MilslWb 67.16 70.61 71.93 73.26 74.63 76.03 77.45 78.89 80.37 81.88 83.41 84.97 86.57 88.19 89.85 91.54 93.26 95.01 96.80 98.61 Light Load Energy Price MilslkWh 61.81 65.26 66.58 67.91 69.28 70.68 72.10 73.54 75.02 76.53 78.06 79.62 81.22 82.84 84.50 86.19 87.91 89.66 91.45 93.26 7.1.2 Durg the months of Novembe and December, Idao Power shall pay the non-Ievelízed Heavy Load Energy Price for all Base Energy received durig Heavy Load Hours and the Light Load Energy Prce for all BaSe Energy received dunng Light Load hour as for each ye as speified below: Yea 2012 2013 2014 2015 2016 2017 2018 Hea Load Energy Price MilslWh 109.64 115.28 117.43 119.62 121.85 124.13 126.44 Light Lod Energy Price MìlslkWh 100.91 106.55 108.70 110.88 113.11 115.39 117.71 -14- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 140 of 175 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 128.81 131.22 133.68 136.19 138.73 141.34 143.99 146.69 149.45 152.26 155.11 158.04 161.00 120.07 122.48 124.94 127.45 130.00 132.60 135.25 137.95 140.71 143.52 146.38 149.30 152.27 7.1.3 Durig the months of July and August, Idao Power shall pay the non-levelized Heavy Load Standard Energy Price for all Base Energy received durng Heavy Load Standard Hour, the Heavy Load Peak Hour Prces for all Base Energy received dlUg Heavy Load Peak Hours and the Light Load Energy Price fot all Base Energy rec.eived dlUg Light Load HourS for eah yea as specified below: Heavy Load Standa Energy Price Heayy Load Peak Energy Price Light Load Energy Price Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 MilslkWh 107.45 112.97 115.08 117.23 119.41 121.65 123.91 126.23 128.60 131.01 133.47 135.96 138.51 141. 1 143.76 MilslkWh 115.12 121.04 123.30 125.60 127.94 130.34 132.76 135.25 137.78 140.36 143.00 145.67 148.41 151.9 154.02 MilslWh 100.91 106.55 108.70 110.88 113.1 1 115.39 117.71 120.07 122.48 124.94 127.45 130.00 132.60 135.25 137.95 -15- Draft for Discussion Purposes Only Draft for Discussion Purses Only Page 141 of 175 2027 2028 2029 2030 2031 146.46 149.21 152.01 154.88 157.78 156.92 159.87 162.87 165.94 169.05 140.71 143.52 146.38 149.30 152.27 7.1.4 Durg the months of June, September, October. Jan and Februar, Idaho Power shall pay the non-Ieveliz Heavy Load Ener Price for al Base Energ received durg Heavy Load Hours and the Light Load Energy Prce for all Base Energy received during Light Load hours as specifed below: Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Heavy Load Energy Price MilslkWh 91.37 96.07 97.86 99.68 101.54 103.44 105.37 107.34 109.35 111.40 113.49 115.61 117.78 119.99 122.24 124.54 126.88 129.26 131.70 134.17 Light Load Energy Price MilslWh 84.09 88.79 90.58 92.40 94.26 96.16 98.09 100.06 102.07 104.12 106.21 108.33 110.50 112.71 114.96 117.26 119.60 121.98 124.42 126.89 7.2 All Hours Energy Price - The price to be used in the calculation of the Surlus Energy Prce and Delay Damage Price shall be the non-Ievelized energy price for each ye as specified below: March, April and May July, August. Noveber and December June. September, October. Janua and Februar -16- Draft for Diseussion Purposes Only Draft for Discussîon Purposes Only Page 142 of 175 Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 MilslkWh 64.78 68.23 69.55 70.88 72.25 73.65 75.07 76.51 77.99 79.50 81.03 82.59 84.19 85.81 87.47 89.16 90.88 92.62 94.42 96.23 MiIslkWh 105.76 111.40 113.54 115.73 117.96 120.24 122.56 124.92 127.33 129.79 132.30 134.84 137.45 140.10 142.80 145.56 148.37 151.22 154.15 157.12 MilslWh 88.13 92.83 94.62 96.44 98.30 100.20 102.13 104.10 106.11 108.16 110.25 112.37 114.54 116.75 119.00 121.30 123.64 126.02 128.46 130.93 7.3 Sutplus Energy Prce - For all Surhis Energy, Idaho Powe shall pay to the Seller the lower of the curent month's Market Energy Referece Price, Light Load Energy Price or the All Hours Energy Price specified in paragraph 7.2. 7.4 Payment Due Date - Undisputed Energy payments, less any payments due to Idao Power wil be disbured to the Seller within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy actually delivered to Idao Power as specified in Appendix A. 7.5 Continuing Jursdiction of the Coinission "This Agrement is a special contract and, as such, the rates, terms and conditions contaied in this Agreement wil be constred in aQQordane with idaho Power Company v, idaho Public Utilities Commission and Afton Energy Inc., 107 Idaho 781, 693 P.2d 427 (1984), Idaho Power Company v. Idaho Public Utilities Commission, 107 Idao 1122,695 P.2d 1 261 (1985), Afton Energy, Inc. v. Idaho Power Company. 111 Idaho 925, 729 P.2d 400 (1986), Section 210 of the Public Utilty Regulatory Policies Act of 1978 and 18 CFR §292.303-308 -17- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 143 of 175 ARTICLE VII: ENVIRONMENAL ATTRllIES 8.1 Under this Agrement, ownerhip of Green Tags and Renewable Energy Cerificate (RECs), or the equivalent envionmental attributes, diretly assocated with the production of energy from the Seller's Facility sold to Idao Power wil be goveed by any and al applicable Federal or State laws and/or any regulatory body or agency deemed to have authority to regulate these Environmental Attributes or to implement Federal and/or State lawa regarding the same. ARTICLE IX: FACILITY AN INERCONNCTION 9.1 Design of Facilty ~ Seller wil design constrct, irstal, own, operâte aid niintain the Facilty and aiy Seller-oned Interconnection Facilitiea so as to allow safe and reliable genertion and delivery of Net Energy to the Idaho Power Point of Delivery for the full tenn of the Agreement. 9.2 Interconnection Facilties - Except as specifically provided for in ths Agrement, the required Interconnection Facilities wil be in accordace with Schedule 72, the Genertion Interconnecton Process and Appendix B. The Seller is responsible for all costs associated with ths equipment as specified in Schedule 72 and the Genertion Interconnection Process, including but not limited to initial costs incurr by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X: MEG AN TELEMETRY 10.1 Metering - Idaho Power shall, for the account of Seller, provide, irstall, and maintain Meterirg Equipment to be located at a mutualy agreed upon location to record and measure power flows to Idao Power in accordace with this Agreement and Schedule 72. The Meterig Equipment wil be at the location and the type required to measure, record and report the Facilty's Net Energy, Station Use, and maimum energy deliveries (kW) at the Point of Deliver in a manner to provide Idaho Power adequate energy measurent data to administer this Agre.ement and to integrate this Facility's energy prouction into the Idaho Power electrcal system. -18- Draft for DIlussioD Purposes Only Draft for Discussion Purposes Only Page 144 of 175 10.2 Telemetry - Idaho Power wîl instal, operate and maintai at Senets expense comnunícations and telemetry equipment which wil be capable of providing Idaho Power with continuous instantaneous telemetr of Seller's Net Energy produced and delìvered to the Idaho Power Point of Delìver to Idao Power's Designa.ted Díspatch Faciliy. ARTICLE XI - RECORDS 11.1 Maintenace of Records - Seller shall maintain at the Facìlty or such other location mutually acceptable to the Paries adequate total generation, Net Energy, Station Use, and maxum generation (kW) records in a foun and content acceptable to Idaho Power. 11.2 Inspection - Either Pary, afer reasonable notice to the other Pary, shall have the right, durg nonnal business hours, to inspect and audit any or all generation, Net Energy, Station Use, and maximum generation (kW) records pertiníng to the Seller's Facilty. ARTICLE XU: OPERATIONS 12 .1 Communications - Idaho Power and the Seller shall maintai appropriate operating comnurcations through Idaho Power's Designated Dispatch Facilty in accordance with Appendix A of this Agreement. 12 .2 Energy Acceptance - 12.2.1 Idaho Power shall be excused from acceptig and paying for Net Energy which would have otherwise bee produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeur, or tempora disconnection of the Facilty in accordance with Schedule 72. If, for reasons other than an event of Force Majeure, a temporary disconnection under Schedule 72 exceeds twenty (20) days, beginning with the twenty-first day of such interrption, curailment or reduction, Seller wil be deemed to be delìverg Net Energy at a rate equivalent to the pra rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power wil notify Seller when the interrption, curtailment or reduction is terminated. 12.2.2 If, in the reasoable opinion of Idaho Power, Seller's operation of the Facility or Interconnection ~19- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 145 of 175 FacHities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or servce to its customers, Idaho Power may temporarily disconnect the Facilty from Idaho Power's transmission/distrbution system as specifed withìn Schedule 72 or take such other reasonable steps as Idao Power deems approprate. 12.2.3 Under no circumstances wil the Seller deliver Net Energy from the Facilty to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount at any moment in time. Seller's failur to limt delivenes to the Maximum Capacity Amount wil bea Materal Breach of ths Agreement. 12.2.4 If Idao Power is unable to accept the energy from this Facilty and is not excused from acceptìng the Facilty's energy, Idaho Power's daages shall be limited to only the contract value of the estimated energy that Idaho Power was Ulable to acc~pt. Idaho Power wil have no responsibility to pay for any other 'Costs, lost revenue or consequential daages the Facility may incur. 12.3 Seller Declared Suspension of Energy Deliveres 12.3.1 Ifthe Sellet's Facility experiences a forced outage due to equipment failure which is not caused by an event of Force Majel1e or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facilty, Seller may, after giving notice as provided in pargraph 12.3.2 below, temporarly suspend all deliveres of Net Energy to Idaho Power from the Facility or from individual genertion unit(s) withi the Faciliy impacted by the forced outage for a perod of not less than 48 hours to correct the forced outage condition ("Declared Suspension of Energy Deliveries"). The Seller's Declared Suspsion of Energy Deliveres will begin at the star of the next full hour following the Seller's telephone notification as specified in paragrph 12.3.2 and wil continue for the time as specified (Ilt less than 48 hours) in the wrtten notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occured, the Net Energy Amount will be adjusted as specfied ìn paragraph 6.2.4 12.3.2 If the Seller desires to inìtiate a Declared Suspension of Energy Deliveries as provided in -20- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 146 of 175 paragraph 12.3.1, the Seller wil notifY the Designated Dispatch Fací1ty by telephone. The beging hour of the Declard Suspension of Energy Deliveres wil be at the earliest the next full hour after making telephone contact with Idao Power. The Seller wil, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with XXIV that wil c.ontain the beginnng hour and duration of the Declared Suspension of Energy Deliveres and a description of the conditions that caused the Seller to initiate a Declared Suspension of Energy Deliveries. Idaho Power wil review the documentation provided by the Seller to determine Idao Power's acceptace of the described forced outage as qualifyng for a Declard Suspension of Energy Deliveries as specified in paragrph 12.3.i. Idaho Power's acceptance of the Seller's forced outage as an acceptable forced outage wil be base upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 12.4 Scheduled Maintenance - On or before January 31st of each calendar year, Seller shall submit a written proposed maintenance schedule of signficant Facility maintenance for that calenda year and Idaho Power and Seller shall mutually agree as to the acceptabí1ty of the proposed schedule. The Paries deterination as to the acceptability of the Seller's timetable for scheduled mantenance wil take into consideration Prudent Electrical Prtices, Idao Power system requirements and the Seller's prefered schedule. Neither Pary shall uneasonably withold acceptance of the proposed maintenance schedule. 12.5 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, cordinate their respective line and Facility maintenance schedules such that they occu simultaeously. 12.6 Contact Prior to Curailment - Idaho Power wil make a reasonable attempt to contact the Seller prior to exercising its rights to interrpt interconnection or curail 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 Idaho Power may not be able to provide notice to the Seller prior to interrption, curailment, or reduction of electrcal energy deliveries to Idaho Power. -21- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 147 of 175 ARTICLE Xll: INEMNICATION AN INSURNCE 13.1 Indemnification - Each Pary shall agr to hold harmless and to indeify the other Pary, its offcers, agents, affliates, subsidiares, parent company and employees against all loss, daage, expense and liabilty to third persons for injur to or death of persn or injur to propery, proximately caused by the indemnifing Pary's (a) constrction, ownerhip, opeation or maintenance of, or by failure of, any of such Pary's works or facilties used in connection wìth this Agreement or (b) negligent or intentional acts, errrs or omissions. The indemnfyg Par shall, on the other party's request, defend any suit assering a claim covered by ths indemnty. The Ìlidemifyg Part shall pay all documented costs, including reasonable attorney fees that may be inciid by the other Pary in enforcing this indemnity. 13.2 Insurce - Durng the tenn of ths Agrement, Seller shal secure and contiuously carr the following insurance covege: 13.2.1 Comprehensive General Lìabilty Insurance for both bodily injur and property daage wìth limits equal to $1,000,000, each occuence. combined single limit. The deductible for such insurance shall be consistent with curent Insurce Industr Utility practices for simlar property. 13.2.2 The above insurance coverage shall be placed with an insurance company with an AM. Best Company raing 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 nöt be caceled or the limits of liabiity reduced without sixty (60) days' prior written notice to Idaho POWer. 13.3 Seller to Provide Certifcate of Insurance - As required in paragrph 4.1.6 herein and anually thereafer, Seller shall fuish Idaho Power a certificate of insurance, together with the endorsements. required therein, evidencing the coverage as set forth above. 13.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by pargraph 13.2 shall lapse for any reason, Seller wil inuedately notify Idaho Power in wrting. The notice wì1 -22- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 148 of 175 advise Idao Power of the specific reason for the lapse and the steps Seller is tang to reínstate the coverage. Failure to provide ths notice and to expeditiously reítate or replace the coverage wíll constitute a Materal Breach of this Agreement. ARTICLE XIV: FORCE MAJEUR 14.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause beond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, such Part is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, war, hostilties, civil strfe, strkes and other labor disturbaces, earhquakes, fires, lighng, epidemics, sabotage, or changesín law or regulation ocurrng after the Effective Date, which, by the exercise of reasonable foresight such pary could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Pary is rendered whony or ín par unable to perform its obligations under this Agreement because of an event of Force Majeure, both Paries shall be excused nom whatever perfomiance is affected by the event of Force Majeure, provided that: (1) The non-performing Pary shan, as soon as is reasonably possible after the occurnce of the Force Majeure, give the other Pary wrtten notice describing the paricular of the occurnce. (2) The suspension of perfonnance shall be of no greater scope and of no longer duration th is requied by the event of Force Majeue. (3) No obligations of either Pary which arose before the oc.cuence causing the suspesion of pcrfonnance and which could and should have bcen fuly perfomied bcfore such occurrence shall be excused as a result of such occurence. ARTICLE XV: LIAILITY; DEDICATION i 5. i Limitation of Liabilty, Nothing in this Agreement shal be construed to create any duty to, any standard of car with reference to, or any liability to any persn not a Party to this Agreement. Neither -23- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 149 of 175 pary shall be liable to the other fot any indirct, speia, consequential, nor puntive damages, excet as expressly authorized by ths Agreement. Consequential damages wil include, but not be limited to, the value of any environmental attributes. 15.2 Dedication. No undertakg by one Pary to the other under any provision of this Agrement shall constitute the dedication of tht Pary's system or any porton thereof to the Pary or the public or affect the status of Idaho Power as an independent public utilty corpration or Seller as an independent individual or entity. ARTIÇLXVI: SEVERAL OBLIGATIONS 16.1 Except where specifcally stated in this Agreement to be otherwise, the duties, obligations and liabilties of the Pares are intended to be several and not joint or collective. Nothing contaied in this Agreement shall ever be constred to create an association, trust, parnerhip or joint ventue or impose a trst or parership duty, obligation or liabilty on or with regard to either Party. Each Pary shall be individualy and severally liable for its own obligations under this Agreement. ARTICLE XVlI: WANER 17.1 Any waiver at any time by either Pary of its rights wìth respect to a default under this Agrement or with respect to any other matters arsing in connection with this Agreement shall not be deemed a waiver with respect to any subs.equent default or other matter. ARTICLE XVII: CHOICE OF LAWS AN VENU 18.1 This Agreement shall be construed and interpreted ìn accordance with the laws of the State of Idaho without reference to its choice of law provisions. 18.2 Venue for any litigation arising out of or related to this Agreement wil lie in the Distrct Cour of the Fourth Judicial District ofIdao in and for the County of Ada. -24- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 150 of 175 ARTICLE XIX: DISPUTES AN DEFAULT 19.1 Disputes - All disputes related to or arising under ths Agreement, including, but not limited to, the interpretation of the ters and conditions of this Agreement, wil be submitted to the Commission for resolution. 19.2 Notice of Default 19.2.1 Defaults. If either Pary fails to perform any of the terms or conditions of this Agreement (an "event of default..), the non defaulting Pary shall cause notice in wrting to be given to the defaulting Pary, specifyg the maer in which such default occured. If the defaulting Par shall fail to cure such default with the sixty (60) days afer serice of such rttice, or if the defaulting Par reasonably demonstrates to the other Pary that the default can be cured within a commercially reasonable tiIe but not within such six (60) day peod and then fails to dilgently pursue such cure, then, the non defaulting Pary may, at its option, terminte this Agreement and/or pursue its legal or equitable remedies. 19.2.2 Material Breaches - The notice and cure provisions in paragraph 19.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrnce of the breach. 19.3 Securty for Performance - Prior to the Operation Date and thereafter for the full ter of this Agreement, Seller wil provide Idaho Power with the followìg: 19.3.1 Insurance - Evidence of compliance with the provisions of paragraph 13.2. If Seller fails to comply, such failure wil be a Material Breach and may only be curd by Seller supplyig evidence that the require insurance coverage has been replaced or renstated; 19.3.2 Engineer's Certfications - Every the (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (O&M) from a Registered Professiona Engieer licensed in the State of Idao, which Cerification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the -25- Draft for Discussion Purposes Only Draft for Discussion Purposés Only Page 151 of 175 required certificate wil be an event of default. Such a default may only be curd by Seller providing the required cerificate; and 19.3.3 Licenses and Perts - Dung the ful ter of this Agrement, Seller shall maintain compliance with all pennits and licenses described in paragraph 4.1.1 of ths Agreement. In addition, Seller wil supply Idao Power with copies of any new or additional permits or licens.es. At least every fift Contrat Year, Seller wil update the documentation described in Paragraph 4.1.1. If at any tie Seller fails to maintain compliance with the permts and licenses described in paragrph 4.1.1 or to provide the documentation required by this paragrph, such failure wil be an event of default and may only be cured by Seller submitting to Idaho Power evidence of compliance from the permittig agency. ARTICLE XX: GOVERNENTAL AUTORIATION 20.1 This Agreement is subject to the jursdiction of those governental agencies having contrl over either Party of this Agreement. ARTICLE XXI: COMMISSION ORDER 21. Ths Agrement shall become finally effective upon the Commssion's approval of all tenns and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaing purposes. ARTICLE XXII; SUCCESSORS AN ASSIGNS 22.1 This Agreement and all ofthe tenns and provisions hereof shall be bindig upon and inure to the benefit of the respe.ctive successors and assigns ofthe Paries hereto, except that no assignment herofby either Pary shal become effective without the written consent of both Partes being first obtained. Such consent shall not be unasonably witheld. Notwithstading the foregoing, any pary which Idaho Power may consolidate, Qr into which it may merge, or to which it may conveyor trsfer substantially all of its electrc utilty assets, shall automatically, without further act, and without nee of consent or -26- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 152 of 175 approval by the Seller, succeed to all of Idaho Power's rights, obligations and interests under this Agrement. This arícle shall not prevent a financing entity with recorded or secured rights from exercising alI rights and remedies available to it under law or contract. Idao Power shall have the right to be notifed by the financing entity tht it is exercisig such rights or remedies. ARTICLE XXIII: MODIFICATION 23. i No modifcation to this Agrement shal be valid uness it is in wrting and signed by both Paries and subsequently apprved by the Commssion. ARTICLE XXN: TAXES 24.1 Each Par shall pay before delinquency all taxes and other governental chages which, if failed to be paid when due, could result in a lien upon the Facilty or the Interconnectìon Facilties. ARTICLE XXV: NOTICES 25.1 All wrtten notices under ths Agreement shall be directed as follows and shall be considered delivered when faxed, e-mailed and confirmed with deposit in the U.S. Maìl, first-class, postage prepaid, as follows: To Seller: Origial document to: Telephone: Cell: FAX: E-mail: Copy of document to: -27- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 153 of 175 Telephone: Email: To Idaho Power: Original document to: Senor Vice Prsident, Power Supply Idaho Power Company POBox70 Boise, Idaho 83707 Email: Lgrwújidahopower.com CoPY of document to: Cogeneration and Small Power Production Idaho Power Company POBox70 Boise, Idaho 83707 E-mail: rallphiawdaoPÖwer.coin Either Pary may change the contact person and/or addrss informtion listed above, by providig written notice from an authorized person reresentig the Party. ARTICLE XX: ADDITlONAL TERM AN CONDmONS 26.1 This Agreement includes the following appendices, which are attached hero and included by reference: Appendix A AppendiB AppendixCAppendiD Generation Scheduling and Reorting Facilty and Point of Delivery Engineers Cerifications Fonns of LiqUid Securty ARTICLE XXVII: SEVERAILITY 27.1 The invalidity or unenforceability of any ter or provision of this Agreement shall not affect the valdity or enforceability of any other terms or provisions and this Agreement shal be constred in all other respets as if the invaid or unenforceable term or provision were omitted. -28- Draft for Discussion Purposes Only Draft for Discussion Puoses Only Page 154 of 175 ARTICLE xxviIT: COUNERPARTS 28.1 Ths Agreement may be executed in two or more counterpars, each of which shall be deemed an origi but all of which together shall constitute one and the same instrent. ARTICLE XX: ENTIR AGREEMNT 29.1 Ths Agreement constitutes the entire Agreement of the Pares concering the subjec matter hereof an supersedes all prior or contemporaneous oral or wrtt agrements between the Pares concerg the subject matter hereòf. IN WITNSS WHEREOF, The Partes here have caused ths Agreement to be ex.ecuted in their respective naes on the daes set fort below: Ida.ho Power Company By By Lisa A Grow Sr. Vice President, Power Supply Dated Dated "Idaho Power""Seller" -29- Draft for Discussion Puroses Only Draft for Discussion Puroses Only Page 155 of 175 APPENDIX A A ~l MONT Y POWER PRODUCTON AN SWICHING REPORT At the end of each month the folkiwing require docentation wil be submitted to: Idao Power Company Attn: Cogeneration and Small Power Production POBox70 Boise, Idao 83707 The meter readings requied on ths report wil be the readings on the Idaho Power Meter Equipment measurg the Facility's total energy production and Station Usage delivered to Idaho Power and the n:imum generated energy (leW) as record on the Metenng Equipment and/or any other required energy measurements to adequately administer this Agrement. Ths document shall be the document to enable Idaho Power to begin the energy payment calculation and payment process. The meter readigs on this report shall not be used to calculate the actual payment, but instea wil be a check of the automated meter reading information that wil be gatherd as described in item A-2 below: -30- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 156 of 175 Idaho Power Company Cogeneration and Small Power Production MONTHY POWER PRODUCTION AND SWITCHIG REPORT Project Name Month Year Project Number: Addreøs Phone Number: City Meter Number: End of Month kWh Meter Reading: Beginning of Month kWh Meter: Diference: Times Meter Constant: kWh for the Month: Metered Deman: Breaker Opening Record Date Time Meter *Breaker Openiig Reason Codes Lack of Adeuate Prime Mover Forced Outage of Facilty Disturbance of IPCo System Scheduled MlUtenance Testig of Protection Systems Caus Unknown Other (Explain) 1 2 3 4 5 6 7 State Facilty Output Zip Station Usage * MetereStation Usage Maxm Genration kW Net Generation = Breaker Closing Record Reason TimeDate Meter I hereby certify that the above meter readings are true and correct as of Midnight on the last day of the above month and that the switching record is accurate and complete as requied by the Firm Energy Sales Agreement to which I am a Part. Signature Date -31- Draft for Discussion Purpses Only Page 157 of 175 Draft for Discussion Purposes Only A-2 AUTOMATED METER READING COLLECTION PROCESS Monthly, Idaho Power wil use the provided Metering and Telemetry equipment and processes to collect the meter reading information from the Idao Power provided Meterg Eqipment that measures the Net Energy and energy delivered to supply Station Use for the Facilty recorded at 12:00 AM (Midnight) of the las day of the month.. The iner information collected wil include but not be limited to energy production, Station Use, the maximum generated power (kW) and any oter requird energy measurements to adequately administer ths Agreement. A-3 ROUTIN REPORTING Once. the Facility has achieved its Operation Date and has operated in a reliable and consistent maner for a reasonable perod of time, the Paries may mutually agree to modify this Routine Reportg requirement. Idaho Power Contact Information Daily Energy Proouction Reporting Cal daly by 10 a.m., 1-800-356-4328 or 1-800-635-1093 and leave the following information: . Project Identification ~ Project Name and Project Nurnber . Curent Meter Reading . Estirnated Generation for the curent day . Estirnated Generation for the next day Planed and Unlanned Prject outages CalI1-800-345-l319 and leave the following information: . Project Identificaton - Project Name and Project Number . Approxiate time outage occurred . Estimated day and time of project coming back online -32- Draft for Discussion Purposes Only Seler's Contat IifomitIøn Dra for Dlsili PDI' 0D 24-Hour PrecQ¡tiQna Contact Name: Teleone Numbe: eeIlPhoe: Prjec Qn'"te Co inti Nam:Telepho.~ Page 158 of 175 ,.. Dra for DlleUQon Pu Only Draft for DiscussIon Puoses Only Page 1'59 of 175 APPENDIXB FACILITY AN POIN OF DELIVERY Prject Name: Grand View Solar II Project Number: B-1 DESCRITION OF FACILIT Var Capabilty (Both leading and laggig: Leadig is _ Laggig is B-2 LOCATION OF FACILITY Near: Sectons:Townhip~ Rage: _ County: _ Descrption of hiterconnection Location: Nearst Idaho Power Substation: B-3 SCHEDULED FIRST ENERGY AN OPERTION DATE Seller has selected as the Scheduled Firt Energy Date. Seller ha selected as the Scheduled Operation Date. hi makg these selections, Seller recognes that adequate testing of the Facilty and completion of al requiements in paragraph 5.2 of this Agrement must be completed prior to the project being granted an Operation Date. -34- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 160 of 175 B-4 MAXIMUM CAPACITY AMOUNT Thìs value wil be whih is consistent with the value provided by the Seller to Idaho Power in accordance with Schedule 72. This value is the maximum energy (MW) that potentially COUld be delivered by the Seller's Facilty to the Idaho Power electrical system at any moment in time. B-5 POIN OF DELIVERY "Point of Delivery" means, unless otherise agrd by both Paries, the point of where the Sellers Facilty's energy is deliverd to the Idao Power electrcal system. Schedule 72 will determne the specific Point of Delivery for this Facilty. The Point of Delivery identified by Schedule 72 wil become an integral par of this Agreement. B-6 LOSSES If the Idaho Power Meterng equipment is capable of measuring the exact energy deliveres by the SeHer to the Idao Power electrical system at the Point of Delivery, no Losses wil be calculated for this Facility. If the Idaho Power Metering Equipment is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation wil be established to measure the energy losses (kWh) beeen the Sellet's Facilty and the Idaho Power Point of Delivery. This loss calculation wil be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrcal equipment specifications (transformer loss specifications, conductor sizes, etc.) of ali of the electrical equipment between the Facility and the Idaho Power electrcal system, Idaho Power wil configue a revised Losses calculation forula to be agreed to by both paries and used to calculate the kWh losses for the remainig ter of the Agreement. If at any time during the term of this Agreement, Idao Power determines that the loss calculation does not correctly reflect the actual kWh Losses attrbuted to the electrcal equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh losses calculations. -35- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 161 of 175 B-7 METERIG AN TELEMETRY Schedule 72 wil detenne the specific meterg and telemetry requirements for this Facilty. At the minimum the Meterg Equipment an Telemetry equipment must be able to provide and record hourly energy deliveries to the Point of Deliver and any other energy measurements requir to administer this Agreement. These specifications wil include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller wíll arrange for and make available at Seller's cost coniunication circuit(s) compatible with Idaho Power's coniunicatìons equipnientand dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment wil be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrtive cost to be reimbursed to Idaho Power by the Seller. Payment of these costs wil be in accordance with Schedule 72 and the total rtietering cost wil be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-8 NETWORK RESOURCE DESIGNATION Idaho Power canot accept or pay for generation from this Facility unti a Network Resourc Designation ("NR") application has been accepted by Idaho Power's delivery business unit. Federal Energy Regulatory Commission ("FERC") rules require Idao Power to preare and submit the NR. BeCause much of the information Idaho Power needs to prepare the NRD is specific to the Seller's Facilty, Idaho Power's ability to fie the NR in a timely tner is contingent upon timely receipt of the requied information from the Seller. Pnor to Idaho Power beginng the process to enable Idaho Power to submit a request for NR status for this Facilty, the Seller shall have completed all requirements as speified in Paragrph 5.7 of ths Agreement. Seller's failure to provide complete and accurate information in a timely manner can significantly impact Idaho Power's abilty and -36- Draft for Discussion Purposes Only Draft for Discussion Puoses Onl Page 162 of 175 cost to attain the NR designation for the Seller's Fadlty and the Seller shall bear the cots of any of these delays that are a result of any action or il1ction by the Seller. -37- Draft for Disussion Puoses Onl Draft for Discussion Purposes Only Page 163 of 175 APPENDIXC ENGINER'S. CERTIFCATION OF OPERATIONS & MAENANCE POLICY The undersigned , on behalf of himself Iherself and , hereinafter collecively refered to as "Engineer, II hereby states and certifies to the Seller as follows: 1. That Engineer is a Licensed Professional Engineer in good standig in the State ofIdao. 2. That Engieer has reviewed the Ener Sales Agreement, hereiafer "Agrment," between Idaho Power as Buyer, and as Seller, dated 3. That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as Idaho Power Company (IPCo) Facility No.and is hereinfter referred to as the "Project." 4.That the Project, which is coUtonlyknown as the Prj~ is located in Section _ Township Range . Boise Merdian,County, Idao. 5. That Engineer recognzes tht the Agreement provides for the Proj ect to fuish electrcal energy to Idaho Power for a year perod. 6. That Engineer has substantial experience in the design, constrction and operation of electc power plants of the same type as this Project. 7. That Engineer has no economic relationship to the Design Enginee of this Project. 8. That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenace ("O&M") for ths Project and it is his professiona opinion that, provided said Project has been designed and -38- Draft for Discussion Pu.rposes Only Draft for Discussion Pupoes Only Page 164 of 175 built to appropriate standads, adherce to said O&M Policy will ret in the Prjectls proucing at or nea the design electrcal output, effoiency iud plant factor for a year period. 9. That Engineer recognzes tht Idao Power, in accordace with pargraph 5.2 of the A.greement, is relyig on Engieers teprestatiQt and opinons contaed in ths Statemet. 10. That Engineer cerifies that the above statements are comlete, tre and accute to the best ofhisler knwledge an therfore sets his!her had and se below. By (p.E.Stap) Date -39- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 165 of 175 APPENPIXC ENGINER'S CERTIFICA nON OF ONGOING OPERATIONS AN MANANCE The underigned . on behalf ofhimselflerself and hereinafter collectively refered to as "Engineer," hereby states and cerifies to the Seller as follows: 1. Tht Engíneer is a Licensed Professiona Engineer in good stamng in the State of Idao. 2. That Engieer ha reviewed the Energy Sales Agrement, hereínafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3. That the cogeneration or small power production projec which is the subject of the Agreement and ths Statement is identified as Idaho Power Company (IPCo) Facility No.hereínafter referr to as the "Prject". 4.That the Project, which is commonly known as the Prject, is located in Section _ TOWlihip Rane . Boise Merdian,County, Idaho. 5. That Engineer recognizes that the Agreement provides for the Prject to fushelectrcal energy to Idaho Power for a year period. 6. That Engieer ha substantial experience ín the design, constrction and opertion of electric power plants of the same type as ths Project. 7. That Enginee has no economic relationship to the Design Engineer of ths Project. -40- Draft for Discussion Purposes Only Draft for Discussion Purposes Only Page 166 of 175 8. That Engineer ha mae a physical inspection of said Project, its operations and maintenance records since the last previous certfied inpection. It is Engieer's professional opinion, based on the Project's appeaance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condion; and that if adhernce to said O&M Policy contiues, the Project wil continue prodcing at or near its design electrical output, effciency and plant factor for the remaining year of the Agreement. 9. That Engieerregnizes tht Idaho Power, in accordace with paragraph 5.2 of the Agreement, is relyìng on Enneer's representations and opinions contaed in this Statement. 10. That Engieer certfies tht the above statements ar complete, tre and accurate to the best of his/her knowledge and therefore sets hislher had and seal below. By (P .R Stamp) Date -41- Draft for Discussion Purposes Only Draft for Discussion Purpses Only Page 167 of 175 APPENDIXC ENGINER'S CERTIFICATION OF DESIGN & CONSTRUCTON ADEQUACY The underigned , on behalf of hielfierself an herinaft collectively referred to as "Engineer", hereby states and ceifies to Idao Power as follows: 1. That Engineer is a Licensed Professional Engieer in good stading in the State of IdahO. 2. That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter" Ageement", between Idaho Power as Buyer, and as Seller, dated " 3. That the cogeneration or stnl power production project, which is the subject ofthe Agreement and this Statement, is identified as Idaho Power Company (ICo) Facì1ty No and is hereinafter referred to as the "Project". 4.That the Project, which is coimonly known as the Projec, is located in Seçtion _ Townhip lage . Bois Merdin.County, Idaho. 5. 'Tt Engineer recognzes that the Agreeent provides för the Project to fush electrcal energy to Idaho Power for a year period. 6. That Engineer has substantial experience in the design, constrction and operation of electric power plants of the same tye as this Project. 7. That Enginee has no economic relationshp to the Design Engineer ofthIs Project and has made the analysis of the plans and specifications independently. -42- Draf for Discussion Purposes Only Draft for Discussion Puoses only Page 168 of 175 8. Tht Engîeer has reviewed the engineerng design and constrction of the Project, including the civil work, electrical work, generating equipment, prie mover conveyance system, Seller fuhed InterCònnection Facî1ities and other Project facilties and equipment. 9. That the Prject ha been constrcted in accordace with said plans and specifications, all applicable codes and consistent with Prudent Electcal Practices as that ter is described in the Agreement. 10. That the design and constrction of the Project is such that with reasonable and prdent operation and maintenance practices by Seller, the Project is capable of peronning in accordnce with the ters of the Agreement and with Prdent Electrcal Practice for a year perod. 11. That Engineer recognes that Idaho Power, in accordace with paagrph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations ãnd opinions contaned in this Statement. 12. That Enginee cerifies that the above statements ar complete, true and accurte to the best ofhisler knowledge and therefore sets his/her hand and seal below. By (P.E. Stap) Date A3- Draft for Discussion Purposes Only Draft for Discussion Puroses Only Page 169 of 175 APPENDIXD FORMS OF LIQUID SECURY Th Seller shall provide Idaho Power with conierciaUy reasonable securty instruments such as Cash Escrow Security, Guarantee or Leter of Credit as those tens are de:fined below or other forms of liquid financial securty that would provide readily available cash to Idao Power to satisfy the Delay Security requirement and any other security requirent within this Agreement. For the purose of ths Appendix D, the ter "Credit Requirements" shall mean acceptable financial creditworthiess of the entity providing the security instrment in relation to the term of the obligation in the reasonable judgment of Idao Power, provided that any guarantee and/or leter of credit issued by any other entity with a short-term or long-term investment grade credit rating by Standard & Poor's Corporation or Moody's Investor Serces, Inc. shl be deemed to have acceptable financial creditworthiess. 1. Cash Escrow Securty - Seller shall deposit fuds in an escrow account establíshed by the Seller in a bankng institution acceptable to both Paries equal to the Delay Securty or any other required securtyamount(s). The Seller shall be responsible for all costs, and receive any interest eared associated with establishing and maintainig the escrow account(s). 2. Guarantee or Letter of Credit Securty - Seller shall post and maintain :i an amount equal to the Delay Security or any other requÌIed security amounts: a) a guraty from a pary that satisfies the Credit Requirements, in a form acceptable to Idaho Power at its discretion, or b) an irrevocable Letter of Credit in a form acceptable to Idao Power, in favor ofIdao Power. The Letter of Credit -44- Draft for Discussion Puposes Only Dra for Dlliidoa P1,Oal .m _~._, ~ itiituo1l8ccble*, li pares.1. IIlI be rensibleít Page 170 of 175 d...~.d. esblishing and nintningthe Guantees) .~oftD ..* Draft for Diuua PIlel Oal Page 171 of 175 .chin, Randy From: Sent: To: Cc: Subject: Attachment: Bearry, Christa Friday, Dember 16,2011 4:45 PM 'Peter Richardson' 'r'obertpauIOS~gmaiLoom'; Walker, Donovan; Allphin, Randy; Willams, Jason Grand View PV Solar Two, Three, and Four - Response Letter Grand View - Response Letter to Richardson -12-16-11 (00074265).PDF Mr. Richardson: Attached is Donovan Walker's letter to you of todaýs date regarding Grand View PV Solar, Two, Three, and Four'. If you are unable to open the attachment, let me know. Christa Chrsta Bea Lega Admiiistrative Assistat Idaho Power Company P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5996 E-mail: cbeldahopower..com 1 Page 172 of 175 ~IDA"'PO. An IDACORP companv DONOVAN E. WALKER Lead Colinl.1 dwalkertldahopower.com December 16, 2011 VIA ELECTRONIC MAIL & U.S. MAIL Peter J. Richardson RICHARDSON & O'LEARY, PLLC 515 North 27th Street P.O. Box 7218 Boise, Idaho 83707 Re: Grand View PV Solar Two, Three, and Four Peter: I write in response to your letters dated December 3 and December 13, 2011. Idaho Power Company ("Idaho Power") strongly disagrees with your allegations that a contract for Grand View PV Solar Two ("Grand View 2") "had been fully negotiated." This is clearly not the case, and your reference to having a legally binding agreement, and threat to sue Idaho Power for "anticipatory breach of the same" is without merit Idaho Power sent Grand View 2 a draft contract, including an initial pricing run based upon the Integrated Resource Plan ("IRP") pricing methodology, on March 10, 2011. The mere fact that an initial draft power purchase agreement is exchanged in no way evidences that there is a fully negotiated, binding agreement In July we had correspohdence that directly stated, "there is currently no agreement on the terms of the contract." On September 6, 2011, you were notified that there were significant errors in the generation profile data that Grand View 2 had supplied to Idaho Power - which forms th.e basis for the AURORA model runs, and the basis for the pricing results from the IRP avoided cost methodology. You had also requested pricing and draf contract for Grand View Three and Grand View Four as well - and wished to use the same generation profle data. Once the project supplied corrected data that was not showing solar generation during non-daylight hours, the methodology was run and you were given the results. Your demand to have pricing in a negotiated, IRP-based avoided cost methodology contract that is identical to Interconnect Solar, which is an ehtirely different contract and project, does not make sense. The Idaho Public Utilities Commission ("Commission") approved, IRP-based avoided cost methodology is part of a negotiated rate, and negotiated contract process that the Commission has determined is applied to all QualìfyingFacilties ("OF") projects over 10 average megawatts ("aMW") and to all 1221 W. Idaho 5t. (83702) P.O. 80x 70 Boise, ID 83707 Page 173 of 175 Peter J. Richardn December 16,2011 Page2of2 solar and wind QFs over 100 kilowats (UkW"). It does not result in astatic, published rate - or standard rate - similar to that which is available to QF projec under 10 aMW, or wind and solar OFs under 100 kW. The Commission established long a.go that the resulting pnce frm running the IRP-based avoided cost methodology is the starting point for these negotiations, the goal of which is to arrive at the most accurate estmation of Idaho Powts avoided cost pursuant to Public Utilty Regulatory Policies Act of 1978 CUPURPAU) and it implementing reulatins. You now demand to know what Idaho Powets UintentionsU are. Idaho Powets intentions are to, as it has done, follow the Commission's orders and directives in implementing the requirements of PURPA in the state of Idaho. Additinally, your attempt to establish in YOur letters that Idaho Power has been unresponsive and discourteous in this matter is patently false given the fact that Idaho Power met with you and/or Grand View personally on tw occasions, December 7 and December 9, 2011, between the dates of your tw letters. If you truly had such concems about Idaho Powets unresponsiveness and you relly were anxiously awaiting a response, I would think that you would have said something then - given, at the least, those tw opportunits. Your attempt now to paint Idaho Power in an unresponsive and discurteous light in your letters - in a self-serving attempt to bolster your own legal theories and argument is disingenuous. In any event, Mr. Allphin has forwarded to you the most recent draft agreement and IRP-based pricing runs for Grand View Solar Two, Thre, and Four. As indicated in this letter and in Mr. Allphin'S communications, these draft agreements and pncing runs are for our continued discussion and negotiations, and consistent with the Commission's directve, the pricing runs serve as an initial starting point at negotiating wht is the most currnt and accurate estimation of Idaho Powets avoided cost rate for this partcular OF transaction. Please contact me and Mr. Allphin should you wish to continue our negotiation of the agrements for these projects, as there remain several unset.ed issues, including price. Donovan E. Walker DEW:csb cc: Randy Allphin (via e-mail) Jason Willams (via e-mail) Robert Paul (via e-mail -robertapauioarmgmil.com) Page 174 of 175 Allphin, Randy From: Sent: To: Cc: Subject: Attachments: Peter Riohardson (peter~richal'dsonandoleary.col Tuesday, January 03, 2012 3:25 PM Walker, Donovan; Nordstrom, "usa; Kris Sasser Allphin, Randy RE: IPC-E-12-01 GV 3 & 4 Complaint and Exhibit ima.ge2012-D1-03-152459.pdf Sorry about that. O;;rn duplexing. Peter Richardson Richardson & O'Lear, PLLC 515 N. 27th Street Boise. Idaho 83702 (208) 938.7901 offce (208) 867-2021 cell peter(fchardsonandolear.com From: Walker, Donovan (miI;PWalrOldapoJ sent: Tuesday, January 03,20123:23 PM To: Peter Richardson; Nordstrom, Lisa; Kris Sasser Cc: Allphin, Randy Subject: RE: IPC-E-12-01 GV 3 & 4 Complaint and Exhibit The att;;ched .pdf of the Compl;;int only cont;;ins the odd numbered pages, and no even numbered p;;ges. From: Peter Richardson rmallt:perlicrgnadory.coJ sent: Tuesday, January 03, 2012 3:03 PM To: Walker, Donovan; Nordstrom, Lisa; Kris Sasser Cc: Allphin, Randy Subject: FW: IPC-E-12-01 GV 3 & 4 Complaint and Exhibit Good afternoon Donovan and üsa and Kris and Randy: Attached please find the Formal Complaint filed against Idaho Power today at the Idaho PUC on behalf of Grand View PV Solar Three and Grand View PV Solar Four. Hard copies were hand delivered this afternoon. Please give me a c;;ll if you have any questions or have trouble opening the files. -Pete Peter Richardson Ric hardson & O'Lear, PLLC 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 office (208) 867-2021 cell peer§rcharnadolea.coni From: SCanner Sent: Tuesday, January 03, 2012 2:54 PM i Page 175 of 175 Allphin, Randy From: Sent: To: Cc: Subject: Peter Richardson (peter~richardsonandoieary.coml Tuesday, January 03, 2012 3:46 PM Walker, Donovan; Nordstrom, Usa; Kris Sasser Allphin, Randy RE: IPC-E-12-01 GV 3 & 4 Complaint and Exhibit Also there are three hard copies at your reception desk. Two in an envelope for Donovan and Randy and one in an envelope for Lisa. The filing center has 7 complete copies and the originaL. Peter Richardson Richardson & O'Lear, PLLC 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 office (208) 867-2021 cell peterchardsonandolear.com From: Walker, Donovan (malJOWalkOlda.cJ sent: Tuesday, January 03,20123:23 PM To: Peter Richardson; Nordstrom, Lisa; Kris Sassr Ct: Allphin, Randy Subjec: RE: IPC-E-12-01 GV 3 &.4 Complaint and Exhibit The attached .pdf of the Complaint only contains the odd numbered pages, and no even numbered pages. From: Peter Richardson (mail:~rdnal"dory.cJ Sent: Tuesday, January 03, 201: 3:0.3 PM To: Walker, Donovan; Nordstrom, lisa; Kris Sasser Cc: Allphin, Randy SUbject: FW: IPC-E-12~Ol GV 3 &. 4 Complaint and Exhibit Good afternoon Donovan and lisa and Kris and Randy: Attached please find the formal Complaint filed against Idaho Power today at the Idaho PUC on behalf of Grand View PV Solar Three and Grand View PV Solar Four. Hard copies were hand delivered this afternoon. Please give me a call if you have any questions or have trouble opening the files. -Pete Peter Richarson Ric harson & O'Leay, PLLC 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 office (208) 867~2021 cell peter~chardsonandolear.com From: Scanner Sent: Tuesday, January 03, 2012 2:54 PM 1