20210707IPC to Staff 1-13.pdf

3THH"
An loAcoRP company
LISA D. NORDSTROTT
Lead Gounael
[e-mail]
July 7, 2021
VIA ELECTRONIC FILING
Jan Noriyuki, Secretary
ldaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg.8,
Suite 201-A(83714)
PO Box 83720
Boise, ldaho 83720-007 4
Re: Case No. IPC-E-21-12
ln the Matter of ldaho Power Company's Application for a Determination
Acknowledging its North Valmy Power Plant Unit 2 Exit Date
Dear Ms. Noriyuki:
Attached for electronic filing, pursuant to Order No. 35058, is ldaho Power
Company's Response to the First Production Request of the Commission Staff.
lf you have any questions about the attached documents, please do not hesitate to
contact me.
Very truly yours,
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Lisa D. Nordstrom
LDN:sh
Attachments
LISA D. NORDSTROM (lSB No. 5733)
ldaho Power Company
1221West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
I nordstrom@ ida h opower. com
Attorney for ldaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO PO\A'ER
COMPANY'S APPLICATION FOR A
DETERMINATION ACKNOWLEDGI NG
ITS NORTH VALMY POWER PLANT
EXIT DATE.
CASE NO. |PC-E-21-12
IDAHO POWER COMPANY'S
RESPONSE TO THE FIRST
PRODUCTION REQUST OF THE
COMMISSION STAFF
COMES NOW ldaho Power Company ("!daho Powe/' or "Company"), and in
response to the First Production Request of the Gommission Staff dated June 16, 2021,
submits the following information :
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF.l
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)
)
)
)
)
)
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REQUEST NO. 1: In the Application, the Company is requesting the
Commission acknowledgement that "the appropriate exit date from Valmy Unit 2 is
December 31,2025', while the full analysis is 'based on information known today."
Please answer the following:
a. How could conditions change from what is known today that would make
it feasible for an earlier Valmy Unit 2 exit date than December 31,2025,
if the Commission conditionally approves the Company's proposed exit
date in this case?
b. Please identify and explain any constraints or limitations in the
agreement with NV Energy that would be a barrier for an exit date before
December 31,2025, but after December 31,2022 if conditions were to
change that would make it feasible, both from an economic and reliability
standpoint.
RESPONSE TO REQUEST NO. 1:
a. As indicated in the Direct Testimony of Jared L. EIIsworth, the Company will
continue to evaluate an early Valmy Unit 2 exit as part of the 2021 lntegrated
Resource Plan ("lRP"). ln addition, on June 30,2021, ldaho Power issued a
Request for Proposal ("RFP") for capacity resources that can be installed
prior to 2025. Both the 2021 IRP and the resource RFP will determine if there
is a feasible alternative for the Company to reliably and economically exit
Valmy Unit 2 prior to 2025.ldaho Power will also continue to monitor
transmission availability on neighboring systems and the availability of firm
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -2
transmission to liquid hubs to the south as an option for reducing the
forecasted deficits.
b. The only limitation of the Framework Agreement is that ldaho Power must
provide NV Energy advance notice 15 months prior to exiting Valmy Unit 2
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF.3
REQUEST NO. 2: Please provide allworkpapers used to justiff the
Company's proposal to exit Valmy Unit 2 in December 31 ,2025 when compared to
the other options considered by the Company.
RESPONSE TO REQUEST NO. 2: Please see the Company's Response to
Request No. 6. There are no additionalworkpapers that support ldaho Power's
proposalto exit Valmy Unit 2 in2025 as compared to other options considered.
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO PO\A'ER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -4
REQUEST NO. 3: Please explain the criteria used to determine the options
used for comparison in the Company's analysis.
RESPONSE TO REQUEST NO. 3: ldaho Power analyzed allfeasible options to
meet or exceed near-term reliability needs. The new build options were limited to
resources that could be in-service prior to summer 2023.
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMM]SS]ON STAFF -5
REQUEST NO. 4: Are there any other feasible resource options that the
Company could have considered for comparison? If so, please explain what they are
and why they were not considered.
RESPONqE TO REQUEST NO. 4: No. All feasible resource options were
analyzed.
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POVVER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF €
REQUEST NO. 5: Please provide allworkpapers and analysis used by the
Company to determine the risk to adequate reliability if the Company were to exit
Valmy Unit 2 prior to December 31,2025.
RESPONSE TO REQUEST NO. 5: Please see the attached load and resource
balance workbook that was used to determine adequate reliability if the Company were
to exit Valmy Unit 2 prior to December 31,2025,
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF.T
REQUEST NO. 6: Please provide allworkpapers supporting the amounts
shown in the table labeled "Economic Analysis Results" on page 7 of the Application.
RESPONSE TO REQUEST NO. 6: Please see the attached workbook that
includes all the workpapers to support the economic analysis results.
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POTA'ER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -8
REQUEST NO.7: Please provide an area map that shows: (1) Company
owned transmission; (2) surrounding area transmission used for interconnection; (3)
transmission line segments; (4) transmission line segment rated voltages; (5)
transmission line segment rated capacity considering the flow direction of the energy;
(6) transmission line segment capacity owned by the Company including energy flow
direction; (7) other transmission line capacity segments reserved by the Company
identifying any contractual limitations; (8) transmission substations; and (9) all
Company sourced generation resources. PIease provide this map in PDF format with
a resolution that clearly provides the detail neoessary for a comprehensive review
and with appropriate labels for each of the above. As appropriate provide a table of
the requested information which can easily correspond to the transmission segment
identified on the area map.
RESPONSE TO REQUEST NO. 7: Please see Attachment 1 to this request for
a map in PDF format of ldaho Power's transmission system. Attachment 2 is a Western
Electricity Coordinating Council map of the western interconnection. Of the items
requested, the maps show: (1) Company-owned transmission, (2) surrounding area
transmission used for interconnection, (3) transmission line segments, (4) transmission
line segment rated voltages, (8) transmission substations, and (9) all Company-sourced
generation resources greater than 10 MW.
The table below shows ldaho Power's import transmission line segment rated
capacity (requested items 5 and 6).
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF.9
Path Direction Path
Capacity
lnterconnection
Capacity
Transmission
Line Segment
Rated
Capacity
(Summerl
ldaho Power
Capacity
ldaho to
Northwest
(Path 14)
West to
East
(ldaho
lmport)
1200 -
1340 MW
(varies
depending
on Hells
Canyon
Complex
plant
output
level)
AVA{PC
340 MW
(summer)
Oxbow - Lolo
(Avista) 230kV 340 MW 340 MW
BPA.IPC
350 MW
North Powder
- LaGrande
(BPA) 23OKV
3OO MW 3OO MW
Hines -
Harney (BPA)
1 1skv
50 MW 50 MW
PAC-IPC
Capacity Limited
to 510 MW
Hells Canyon -
Hurricane
(PacifiCorp)
230kv
4OO MW 4OO MW
Hemingway -
Summer Lake
(PacifiCorp)
500kv
550 MW 450 MW
ldaho -
Sierra
(Path 16)
South to
North
(ldaho
lmoort)
360 MW NVE-IPC
360 MW
Midpoint -
ID/NV Border
345kV
360 MW 360 MW
Montana -
ldaho
(Path 18)
North to
South
(ldaho
lmport)
BPA/NWMT -
IPC 80 MW
(Amps
Aqreement)
Amps -
Peterson
230kv
296 MW 80 MW
NVVIvIT-IPC
87 MW
ID/MT
Stateline - Big
Grassv 161kV
87 MW 87 MW
Bridger -
Three Mile
Knoll 345kV
8OO MW 266.67 MW
266.67 MW
266.67 MW
Bridger -
Populus
#2345kV
8OO MW
8OO MWBridger -
Populus #2
34skv
Bridger
West
(Path 19)
East to
West
(ldaho
lmport)
383 MW
2400 MW PAC.IPC
2400 MW
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -10
The table below shows transmission capacity reserved by the Company on other
systems (requested item 7).
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REOUEST OF
COMMISSION STAFF -11
Amount Company Commercial Path Date
1OO MW Avista MidC-Lolo 5t112021413012026
1OO MW Avista AVA.BPAT-Lolo 5t1t20224130/2A27
50 MW BPA MidC-LaGrande 1t1t2022-1t1t2027
50 MW PPW (PacifiCorp)RedButte-Bora 6t112019-611t2024
REQUEST NO. 8: Please define the term "net dependable capability" and
explain the meaning as it related to the North Valmy Power Plant. See Ellsworth, Dl
p. 3.
RESPONSE TO REQUEST NO. 8: Net Dependable Capability ("NDC') is a
North American Electric Reliability Corporation ("NERC") Generation Availability Data
System ('GADS'), a reporting system commonly used by electric utilities, definition that
refers to the capacity expected from a generating unit if it is running without any
restrictions. Valmy's 284-megawaft ('MW') nameplate capacity is the rating of the
generator, while the262 MW NDC is the actual net output when plant auxiliary loads
are taken into account.
The response to this Request is sponsored by John Carstensen, Joint Projects
Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMM]SSION STAFF -12
REQUEST NO. 9: Please provide a copy of the North Valmy Power Plant
"Existing North Valmy Agreements." See Ellsworth, Dl, p. 4.
RESPONSE TO REQUEST NO. 9: Please see the attached agreements: the
Agreement for the Ownership of the North Valmy Power Plant Project, the Agreement
for the Operations of the North Valmy Power Plant Project, both of which are dated
December 12,1978, and the North Valmy Station Operating Procedures Criteria, dated
as of February 11, 1993, between ldaho Power Company and Sierra Pacific Power
Company, as amended by Amendment No. 1 to the Operating Procedure Criteria for
Valmy Coa! Diversion Procedures and Usage, dated as of January 1,2012.
The response to this Request is sponsored by John Carstensen, Joint Projects
Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF.13
REQUEST NO. 10: Please provide a copy of the North Valmy Power Plant
"Framework Agreement." See Ellsworth, D!, p. 4.
RESPONSE TO REQUEST NO. 10: Please see the attached Confidential North
Valmy Projecl Framework Agreement between Sierra Pacific Company d/b/a NV
Energy and ldaho Power Company dated as of February 22,2019.
The response to this Request is sponsored by John Carstensen, Joint Projects
Leader, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -14
REQUEST NO. 11: Please provide all Gompany analysis used for
determining the reduction in transmission availability of 140 MW 1o277 MW during
the peak load month of July for years 2022 through 2025. See Ellsworth, Dl, p.21.
RESPONSE TO REQUEST NO. 11: PIease see the attached for a companson
of the transmission availability for planning reserve margin between the Valmy Unit 2
reliability analyses performed in this case and the 2019 lRP. As can be seen on row 3,
labeled 202l Transmission -2019 Transmission Total Difference, the transmission
availability for planning reserve margin was reduced by a range of 140 MWto 277 MW
for the month of July in each year beginning 2021 through 2025.
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POI/\'ER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -15
REQUEST NO. 12: Please explain what added resource(s) will provide
system reliability following the proposed exit of the North Valmy Power Plan after the
end of 2025.
RESPONSE TO REQUEST NO. 12: Based on the preferred portfolio from the
20191RP, acknowledged with Commission Order No. 34959, the Company expects the
Boardman-to-Hemingway ("82H') 500-kV project, with a mid-2026 in-service date, will
be the next incremental resource following a Valmy Unit 2 exit on December 31,2025.
However, the Company is currently in the development of the2021 IRP which will
identifu necessary resouroes throughout the 20-year planning horizon, including any
potential changes to the added resource necessary to economically maintain reliability
following an exit from Valmy Unit 2.
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF.16
REQUEST NO. 13: Please provide the effect to the Company's total load
obligation and Planning Reserve Margin due to the reduction in transmission
availably.
RESPONSE TO REQUEST NO. 13: The Company's load obligation is
determined by the load forecast, and the Planning Reserve Margin scales up this load
forecast to get to a total resource obligation for the Company. Transmission availability
offsets the total resource obligation and is represented as a resource in the L&R
balance. Therefore, a reduction in transmission availability wi!! not impact the total load
obligation or Planning Reserve Margin. A reduction in transmission availability will
increase the deficit, or reduce the surplus identified in the L&R balance.
Please see the Response to Request No. 11 for more details on the transmission
availability reduction.
The response to this Request is sponsored by Jared Ellsworth, Transmission,
Distribution and Resource Planning Director, ldaho Power Company.
IDAHO PO\'\'ER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -17
DATED at Boise, ldaho, this 7t'day of July 2021.
frL !4^*+r"-*,
LISA D. NORDSTROM
Aftomey for ldaho Porer Company
IDAHO POVIJER COMPANY'S RESPONSE TO THE FIRST PRODUCNON REQUEST OF
coMursstoN STAFF -18
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 7th day of July 2021, I served a true and correct
copy of IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSON STAFF upon the following named parties by the
method indicated below, and addressed to the following:
Commission Staff
Matt Hunter
Deputy Attorney General
ldaho Public Utilities Commission
11331W. Chinden Blvd., Bldg No. 8,
Suite 201-A (83714\
PO Box 83720
Boise, lD 83720-0074
lndustrial Customer of ldaho Power
Peter J. Richardson
RICHARDSON ADAMS, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, ldaho 83707
Dr. Don Reading
6070 Hill Road
Boise, ldaho 83703
ldaho Coneervation League
Benjamin J. Otto
ldaho Conservation League
710 N. 6th Street
Boise, ldaho 83701
Micron Technology, lnc.
Austin Rueschhoff
Thorvald A. Nelson
Holland & Hart LLP
555 17th Street, Suite 3200
Denver, CO 80202
Hand Delivered
_U.S. Mail
_Overnight Mail
-FA)(
X Email [e-mail]
FTP Site
_Hand Delivered
-U.S.
Mail
_Overnight Mail
_FN(_ FTP SiteX Email [e-mail]
_Hand Delivered
_U.S. Mail
Overnight Mail
_FA)(X EMAIL [e-mail]
FTP Site
_Hand Delivered
_U.S. Mail
_Overnight Mail
_FA)(X EMAIL [e-mail]
FTP Site
_Hand Delivered
_U.S. Mail
Overnight Mail
_FA)(X EMAIL [e-mail]
tnelson@hollandhart. com
[e-mail]
. [e-mail]
FTP Site
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -19
Jim Swier
Micron Technology, lnc.
800 South FederalWay
Boise, ldaho 83707
City of Boise
Mary Grant
Deputy City Attorney
Boise City Attorney's Office
150 N. Capitol Blvd.
P.O. Box 500
Boise ldaho 83701-0500
_Hand Delivered
_U.S. Mail
Ovemight Mail
_FN(X EMAIL [e-mail]
FTP Site
_Hand Elelivered
_U.S. Mail
Ovemight Mail_FA)(X EMAIL [e-mail]
boisecitvaftomey@cityoboise. org
FTP Site
A*)4//*^_
Sandra Holmes, Lega! Assistant
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION REQUEST OF
COMMISSION STAFF -20
BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
CASE NO. IPC-E-21-12
IDAHO POWER COMPANY
REQUEST NO.5
ATTACHMENT NO. 1
SEE ATTACHED SPREADSHEET
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC.EAL1a
IDAHO POWER GOMPANY
REQUEST NO.6
ATTACHMENT NO. 1
SEE ATTACHED SPREADSHEET
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPG-EAL1a
IDAHO POWER GOMPANY
REQUEST NO.7
ATTACHMENT NO. 1
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPG.EA1.12
IDAHO POWER COMPANY
REQUEST NO.7
ATTACHMENT NO.2
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BEFORE THE
IDAHO PUBLIG UTILITIES GOMMISSION
GASE NO. IPC-E-21-12
IDAHO POWER COMPANV
REQUEST NO.9
ATTACHMENT NO. 1
2
3
4
5
6
7
8
9
10
t1
L2
l
.G' 14
,15
L6
L7
I8
19
20
2L
22
23
24
25
6
AGREE}GNT TOR THE OIINEBSIIIP OF THE
NORIIT VALI{II POT{ER PI"ANI PEOJECT.
TIIIS AGREEMENT, Eade thls lal a"y of D.*tp<1978, between
SIER8A PACIFIC POI|ER COl,{PAllY (herelnaf ter rafcrrcd to ae "Slerra PacLficr'),
a publlc utiUty corporatLon duly organlzed and cxlstlng accordlng to
the laws of the State of Nevada, and IDNI0 POI{ER COMPAI{Y (herelnafrer
referred to as t'Idahorr), a publ1c utlltty corporatlon duly organlzed and
extstlng accordlng to the lawa of the State of Malne, and duly quallfled
and dolag buslneaa io the StaEe of Nevada.
T{ITNESSBTE:
I{EEREAS, Slerra Paclfl.c Ls an lnvestor-orned elecErlc utlllty
coapany subJect to the regulation of the Publlc Servlce Counlesl.on of
the State of Nevada, the Publlc Ut11iCL8 Co"'nlsslon of the State of
Californla, and the Federal Energy Regulatory Gomlseloni and
I{HEREAS, Idaho is an lnveator-omed electrlc uclllty eubJect to the
regulatory JurlsdicElon of the Publlc Urlllty Comlsglonet of 0regon,
the Idaho Publlc Utilitiee Connlgelon, Publlc Servlce Coulgslon of
I{yonlng, the Publlc Servlce Counlselon of, Nevada, and the ['ederal Euergy
Regulatory Connisston; and
I{HEREAS, Slerra Paclflc hae applled for and haa bcen granted
perolsaion by the Public Servlce Cor"-laelon of the State of Nevada, ln
Ilocket No. 732r to bul1d a 250 M{ coal-fircd plant aod coumon facillttes
for the generatlon of electrlclty near Valny, HurnboLdt County, Nevada,
and Slerra Paclflc contemplatee futura construction of addltlonal coal-
flred faclLlties; and
I{HEREAS, these coal-flred faclllttes are co be bullt at Valmy,
2
3
4
5
6
?
I
9
10
I1
L2
I
L4
.15
16
LI
I8
L9
20
2t
22
23
24
25
Hr.ruboldt county, Nevada, and are known aa Ehc North valny power plant
ProJect; and
- I{IIBBEAS, Slerra Pacl.fic ls coupletlng the plana for the constructlon
of Unlt No. 1, North Valny Power Plant ProJect; and
WHEREAS, Sierra Paclflc hae and contlnuea to obtaln ln lts naue
rlghts to wat6r oecessary for the North Valuy Power Plant ProJect from
others and pernlts fron approprlate regulatory agenclee (State Englneer
of the State of Nevada) to be owned by Slerra Paclflc for the beneflt of
the partles; aad
I{UEREAS, Sierra Paclflc haa a contract for a sultable coal supply
for Unlt No. 1 and w111 seek other sourceB of coal for any addltlonal
Unlts; and
I{HEREAS, Idaho has acceae to purchased and onncd eoal, whlch could
be uged by the ProJect, the partles havc agreed to lnvestlgate the usage
of the saue; and
I{UEREAS, Idaho Ls lntereeted ln the developoent of the North Valny
Power Plant ProJact and ln acqulrlng an ownerehlp lncercet 1n the proJect
on a 50-50 baele and hag shered ln Slerra Paclflcra expcnse lncurred ln the
study and lnveatlBatlon of addltlonal watsr sourcea for the proJect; and
WUEREAS, the partlee have exaulsed thair reepective Glectric load
and resource requl.rements and because of the load dlverslty between
thelr ayet€me, the conteuplated proJect proulees to be beneflclal to the
electrtc coBBuDGrs of each of Ehe pertles.
Nol{, THEREtr'oRB, the Partles cove[Bat and agree ae follolre:
1. DEFINITIONS:The followLng terEs when uged hgreln ehall have
2
the follorlng aeaning:
L
2
3
4
5
6
7
I
9
IO
11
L2
3
=- l{
,15
l6
17
I8
t9
20
2L
22
23
24
25
,
1.1 Couon F8c1lr.t1e8: Cooon Factlltlcg Deans all factltrles,
other thao the facllltlea tncludcd ln cach Uolt, whlch ntll eerve and be
requlred ln connectlon wlth the operetlon and Eal.ntsnrncc of uore tban
one Unlt, lucludlng, wlthout llultation, water supply ayeteu, coal
eupply ayaten, related trangutaaloa subetatlon facl1lt1es, access roads,
rallroads, englneerlng and lcgal fees and erspens€o, rlghts-of-way, and
all lands or lntereste ln land tncluded ln the ProJect as reflected ln
the attached Exhlblt 'rA'r.
L.2 Conpletlon: Cornpletlon la the date rhen the 0peratlrg
Coonlttee certtfles thac a UntE hae been adequataly cesEed and le
accepted for couoercial oparatlon.
1.3 Desl8n-ConBtructlon Co@tEtse: Deelgn-Conetructl.on
Conlttee le deflned and eetabllehed ln the Constructlon Agreenent.
1.4 Operatlng Comlttee: Operatlng Comlttee le deftned aad
eetablisbed ln the Opersting Agreeuent.
1.5 Prolect: ProJecc is the Norgh Valny Power P1ant
ProJect, located north of Valny, Hruboldt CounEy, Nevada, whlch w111
consist of one or Dore coal-flred Unlta, each of approxftnatcly 250
Degawatts, aurclllary equlpoent, co@on facllltLes and aecegsery water
righte.
1.6 Prol ect Agreenent,:Thg follorrlng agreeaeata constitute
the ProJect Agreenent and shsu be construed togecher.
(a) Agreeoant for the Otrnerehlp of she North Valny Power
Plant Project (Ownershlp Agreenenr) ;
(b) Agreeuenc for the constructlon of the North Valny
Power Plant ProJect (Constructlon Agrceuent).
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(c) Agreement for the Operatlon of the North Valny
Powcr Plant Project (opcratlng Agreenent);
- 1.7 Prudent Ucllttv Practlce: Prudent Uttllty Practlee
Eeana any of the practlces, Dethods and ec,ts engaged ln or approved by a
slgnlflcant proporcion of the elcctrlcal utlllty lndusEry prl.or to the
tlue of the reference, or any of the pracflcee, nethods and acts whlch,
ln the exercige of reagongble Judguent, 1n llght of the facts known at
the tlue the declelon raa oade, could have been expccted to accornplleh
the deslred reeult at the lowest raaaonable coat conslgCcot wlth relia-
blllty, Bsfety and erpedltl.on. Prudent Utl1lcy Practlec ahall apply not
only to functlonal parts of the ProJect but aleo to approprlate etructuree,
landscaptng, palntlng, eigns, llghtlng and other facllttles and publlc
relationg prograDs reasonably deslgned to prouote publlc enJoyment,
understandlng and accepEance of the ProJect. Prudent UttllEy Pracllce
i.s not lntended to be lt"ulted to the optlDrm practlce, uethod or acE to
the exeluslon of all others, but rather ro be e range of accepted practlces,
Dethod8 or acts.
1.8 Unlt: Unlt oeane a conplete 250 uegawatt generatlng
plant, lncludtng boller, turbine generator, that part of coal preparatlon
and supply systeu, that Part of thc swltehyard, and all auxtllarLea,
accesgotLee and controls, readlly ldentlfled wlth and solely aseoclated
with the unlt as reflected 1n atEached Exhlblt "A".
2.. Grnershlp Rlghte and lnterests:
2,L [xcept as otherulse provlded ln thie AgreeEent, the
part,les w111 own the Project as tenanEs ln conilon wlCh Idaho owntng a
502 undlvlded tntereet and Slerra Paclflc ormlng a 5O'l undlvlded lnterest.
4
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Such percentages are herelnafter referred to aE the partieEr "Percentage
Sharet'.
- 2.2 In order to cffectuste the orncrshlp aa tenanta ln corron
ln the respectlve percentagea set out Ln.secclon 2.1, thr partlce wtll,
withln a reasonable tiue, execute and cause to be recorded any lneEruuents
of title requlred in order to establlrh the respectlve omcrehlp lnterest8
of the parties ln and to the ProJect.
2.3 In order to trangult thc electrlelty generaced fron the
North Valuy Potrer Plant ProJect lt w111 be olceeeary to conatrucE
electric trenselsslon 11nee and utlllze exlatlng transuiesion llnes, and
separate agreeoents w111 be nsde beElreen the partles covcrlng the respectLve
ownershlp, uge, operatlon and DainEcnance thereof.
3. Coal: Sierra Paclflc hae a flru aupply of coal frou a Utah
source for the flrst Unlt of thc ProJecG. Idaho haa a aource of coal
aupply uhlch can be uade avallable for thc ProJect 1n the event the
partl.es determine thsE the uee of the Idaho coal wlll better serve the
Lnterests of the pErtles and of the eald ProJect.
4, Ineurance: The p.rt16B agres that Slerra Paclflc shall
malntal.n in force, for the benef,tt of Slerra Paclflc and ldaho, as their
lnterest shalI appear, all lnsurence coverages regulred for the purposes
of thls proJect. The approprlate comlttee (Deetgn-Conetruction or
Operating) shall revlew the ineurance covarsge requlremenEs so that
there le an agreeuent aB to proper coverage for the project ln conformance
with Prudent Utllity Practlce. Slerra Paclftc sha1l keep the approprlate
comittee inforued aa to the BtaEue of lnaurance ln force, and aa J-ong
as lt doee so, Slerra Paclftc shall not be llabIe for any fallure to
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lnsure or for inadequacy of coverage.
5. Uncontrollable Forcea: Nelther Slerra Paclflc nor Idaho ehalL
be conel.dered ln default Ln perforoance of any of the obllgeclona here-
uuder, other than obllgatlons of elther perty to p8y coots and expenees,
lf fallure of performance ehall be due to uncontrollablc forces. The
terD I'uncontrollable forceal ehall rnean eny caua6 beyond the control of
the party affected and whlch by the exerclae of reagonabl"e dlligence the
party ls unable to avotd and shall include, but not be llulted to' an
act of God, flre, flood, exploslon, Btrlke, sabotage, an act of the
publlc eneuy, clvll or utlltary auchortty, includl.ng courE orders'
LnJuncclone, and ordere of governuent ageneles wlth proPer Jurlsdlctlon
prohlbltlng acts necesaary to perforoance hereunder or pelillttlng any
such act eubJect to unreatonable condlclone, lnsurrtcclon or rlot, an
act of the elesents, fallure of equlpnent, or lnabl1lty Eo obtaln or
shlp materlale or equipoenE beeauae of the effect of sinllar causea on
suppllers or carrlers. Nothlng contalned hercln shall be coostrued so
as to regul.re elther party to settle on sn unreagonable baels aoy etrlke
or labor dlspute in whlch lt oay be lavolved whlch dlrectly affecte the
ProJect. If elther Slerra Paclflc or Idaho ta rendered unable to fulflll
any obltgatlon by reaeon of unconErollable forceg, lt ehall exerclse due
dilLgence to r€Eove such lnablllty wlth all reaaonabls dtepatch.
6. Dgoage to the Prolect:
6.1 In the event that the ProJecE or any Portlon thereof
suffers dauage resultlng frou causeS other than ordlnary r€ar' tear or
deterioratlon to the extent thac the e6tlEsted cost of repatr as agreed
by the oenbere of the approprlaEe Co@1ttee (DeslgtrConstructlon or
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Operatl.ng) exceeds the eEtlnsted avallab1e proceeds, lf any, of Lnsurance
malntalned purauant to Sectlou 4 by uore than $201000,000, the partles
wlll proceed aa follose:
6.1.1 If the partlGs agroe to repalr the ProJect or the
daoaged poEtion thereof, Slerra Paelfle ehaU pro!rytly eubult a revlsed
conatructlon or operatlng budget and after approval by the approprlate
co@lttee (Dealgu-Congtructlon or Opcratlag), It shal1 proceed to repalr
the Project, and each party shall pay lte Percentage Shsre of the cost
thereof.
6.L.2 If the partles do not agree that the Project or
the daoaged portlon theraof should be rapal.red, or one party Ls unable,
for flnanctal or other raaaons, to partlclpate tn eatd repalr, and the
other party electe to repatr, then, the approptLate Coutttee ehaIl
egree upon, or lf they cannot so agree wtthla glx (6) nontha froo the
date of the dauege, aa arbitrator choeen ln accordance ulth Sectlon 14
herein ehal1 deteralne the eat,luated value of the Project ae and when
repalred. Thereafter, the Perceatage Shere of the party not partlcipating
tn the repalr shall be redueed to the o(tent deterulned by the follotrlng
fomula:
Pr-Ps tV (C - I) 1
I v I
where
V - Estloated value of the Project ae repalred
C - Estiuaced cogt of repalrI - Estloated tneurance proceeds
Ps. Percentage Share prlor to loes
Pr= Beduced Percsncage Share
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At the saue tLme Ehe auounc of such roductlon of Percentage Share
shall be added to the Percentage share of rhe party electlng to rebuird.
- 6.1.3 If the partiee egreG thet Ehe proJect or any
portlon thereof should be ended, Slerra Paclflc shall lnltlate proceed-
lngs to dJ.epoae of the ProJect ln accordance rlth Sectlon 7.
6.2 If the Project or any portlon thereof guffers danage
resultlng from causee other than ordinery lrerr, tear or deterLoratl.on to
the extent thaE the estfinated cogt of repalr aa agreed by the members of
the approprlate Co-"'lttee (Deelgn-ConaEructlon or Operatlng) exceede the
estfulated avallable proceeda of lngurance rnelntalued purauant to Secclon
4 by lese than $2010001000, the ProJect shall be repalred, rebuilt or
restored by the partles so a8 to rescore the Project to eubstantlally
the same general characEer and uee that erl8ted prlor to the daoage.
The cost of such reconsErucElon or repalr ln grcegs of the proeeeds of
Lnsurance shall be pald by the partlea ln accordance erlth thetr respectlve
Percentage Sharea.
7. End of the Prolect:
7.L When the Generatlng Unlt(E) can no longer be mede capable,
consfst,ent wlrh the Prudent Utfltty PractLce, of produclng electrlcity,
or cannoc be llcensed, or when the ProJect la ended pursuant to Section
5.1.3, or when the partles otherwlae agree to end the Project, Slerra
Paciflc shall sell for reuoval all salable parts of the Project to the
hlghest blddere; provided, hotrever, that thc ProJect real property and
lrater rtghts shslL revert to Slerra Paclflc. After deducting a1l cosEs
of terolnatlon of the Prolect, includlng, wLthout llultlng the generall.ty
of the foregolng, the cost of decomleslonlng, razlng all sErucEures,
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and dlspoalng of the debrls and ueetlsg a1l requlreuents of Federal,
State or local lau, Slerra Paclflc ehe1l cloce the approprlate Trust
Accgunt (Constructlon or Operating) and, Lf there are net proceeds,
dlstrlbute to each parEy tte Percentage Share of auch proceeds, lncluding
the value of the ProJect real property and the sater rlghts appllcable
thereto, as deteriltned by the partles. In the event such coet of ending
the ProJect exceeds net proceede, each party ahal1 pay lts Percentage
Share of such excess coEta tncurred.
7.2 Slerra Paclflc and ldaho expresaly walve any rlght of
partition of the ProJect and the real or personal property related
thereto, lrh€ther by partitlon ln klnd or gale and dl.vlslon of the proceeds
thereof, untll the end of the ProJect, as descrlbed ln Sectlon 7.1.
8. Llabllltlee:Any loee, cosE, 11ab111ty, danage or expense
lncurred by elther party resultlng from Ehe ualntenance, reconstrucBlon
or repal.r of the ProJect becauae of lnJury to any lndlv1dual, or because
of danage to property of partlea or of other Psrsons, Bo Ehe extenE not
covered by colJ.ectlble lngurance, shall be chargeable to Construction
Cost or Operating Expenaea as uay be approprlate.
9. !9.,1!g}gg.: Except as otherlrlse provtded hereln, ln Ehe event
of default by a party thla agreeuent ehall be tetrlnated ln accordance
with the provlslons of Sectlon 7, unlegs the party not 1n default elects
to contlnue the Agreeuent. The followlng Ehall be deeoed event6 of
default:
(a) ['ailure of a party to aake any payment when due;
(b) Fallure of a party Eo perforn any obligatlon required to
be perforrned hereln;
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(c) A purported temlnation, trangfer, sale asslgnoent,
pledge or encunbrance of a partyrg tnterest in thls Agreement,
- except ae pe:nltted herelni
(d) A transfer of a partyts lntereet Bo any purchaaer
frorn a Eortgegee or gecured party havlng realtzed upoo lts
securlty or otherulse; and
(e) The benkruptcy or lnsolvency of a perry under
bankruptcy or reorganlzetlon, coEpoeltlon or arrangeDenE sCaEuteB.
If one party bellevee that the other perty hae col@lEted an event of
default, the nondefaultlng perty shal1 notlfy the other party 1n writlng,
descrlblng the alleged default, and lf the alleged default 1s not cured
or protested wlthln slxty (60) days frou the date of such notice, it
shall at Ehe explratlon of such perlod constl.tute a default. If a party
ln good fatrh dlapucea the e:ctstsncc or Gxtcnt of an alleged def,ault, it
ehall wlthin a 60-day period oeke such pa)noe[t or perforo aueh obllgatlon
uader wrltten protest directed to the other party. Such a dlepute ahall
be subnitted to an arbltrator sho ahall determlne whether a default has
occurred. If the arbltrator deternlnes thet, no default has occurred,
the allegatlon of, defsult sheU be deened to have been ulthdrawn. If
the erbltrator deter:ulneg that I defaulc hag occurred, the party not ln
default may elect to contlnue thts Agreeuent, but the party tn default
shal-l have no rlght to rhe Output of the ProJecE, to have representation
on any comlttee, or to exerclee any of the other rlghts under thle
Agreement exceptlng the Legal rlght of tcrolnatlon. In the caee of a
default the defaulElng partyre Percentage Share of porer and energy nay
be eold durlng the period of default for the benefLt of the defaulting
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party and th€ proceeds spplled to any oounts owed by such party.
Notrrlthstandlng the foregolng, the defsulEtng party ghall reuals llable
to the perty not in default and to the credltors of the ProJect for
obllgatlong lncurred prlor to the cure of any euch default. Payoents
not made when due by elth'er party ehal1 bear lnterest unrll paid at the
rate of one percent (12) per Eonth, or lhe hlgheat lawful rate, whlchever
ls lower.
10. :
10.1 Thia Agreeuent shall be blndlng upon the euccessorE ln
interest and aaatgns of Bhe partlee. Any tranefer and aealgnDent ehall
be ae follows, and not oEhen lBBs
10.1.1, To 8ny Eorcgagee, trusEee, oE gecured party,
as security for bonde or oEher lndebtedneea of such party, present or
future, and euch mortgagee, trustee or gecured party rnay reallze upon
such security ln forecloaure or other sultable proceedinga and succeed
to all right, tltle and intereet of euch perty.
10.1.2 To any corporatlon or other entlty acqulrlng
all or eubatantlally ell the ProPerty of the perty rnakl.ng the tranefer.
10.1.3 To any cotporetlon or entlty lnto whlch or with
whlch the party uaklng the tranefer ney br uarged or coneolldated.
10.1.4 To eny eorporatlon or entlty, the stock or
ownership of which la wholly-owned by the perty naklng the transfer.
10.1.5 To eny corporation or entLty in a conteupor-
aneous traneactlon constLEutlng a flnancing arrangeuent under which the
partyrs control- of lts Percentage Share le eubJect to defeaE only on
default.
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10.1.6 To any other ftnanclally reEponBtble person
where the oEher psrEy conBenta to auch trangfcr ln advance ln wrltlng.
Thejarty requeeting sald transfer or aeelgnrent ahall flrst offer to
transfer or aaaLgn such lnterest to the other party at the aaount of and
on terqg and conditlons not lesa advantageoue than thoee whtch lt ie
wllllng to accept for a tranafer or asslgnoent to euch other person.
Such offer shall renaln open for a reaaonable perlod, but not to exceed
180 days after receipt of wrLtten notlftcatloa of the offer.
10.1.7 No tranafer or aealgoment Eay be oade except
under Sectlon 10.I.1, or Sectlon 10.1.5 unlees eiuultaneously the
partyrs lntereets ln all other ProJect Agreenenta are slnllarIy trans-
ferred or asslgned to the seDe person or persons, and such person or
persons have agguned all the dutles and obllgatlona of the party
tranaferrlng or asslgnlng under EhIs Agreeuent and under all other
ProJect AgreeEento.
10.1.8. Any lntereat or asslgnment perolcced hereunder
(except as provlded by Sectlon 10.1.1 and 10.1.5) ls expressly conditloned
upon the executlon of a wrltten es6u![pt1on by transferee or asslgnee of
all of the obllgatlons hereundgr.
11. CovenantS Runntng wlth the Land: A11 of the covenants and
agreements Eet forth hereln shall btnd and ahall be and become the
obllgations of each party, lts succeslora and aselgns, and ehall be
obligations and covenanco running wlth and a burden upon each of such
partyrs rights, tltles and lnterest ln the ProJecE. All of the right,
tLtle and lntereec of each party ln and go all real and personal proPerty
constituE,l.ng che ProJect shall be subJect to the covenants, promises and
t2.
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obllgatlons uade and establlahed hereby, and Ell transfereea to any such
property shal1 take subject thereto. The partie8 ahall cauae to be
effectiyely recorded a neroorenduu of thta agreeoent for the purpoee of
glving notlce to the world of the prmlces, obllgatlong and covenants
6et forth hereln. The docuaenEE of tltle to the properttea of the
ProJect shall be constructed to cauae ao far ae poselble guch proulses,
obllgatlona and covenant,a to blnd the aasLgneas of any euch property
lnterests.
L2. Obllgatlons Are Several: The dutlos , obllgatlons and 11a-
bllLtles of, rhe partles hereunder ars intended to be oeveral and not
Jolnt or collectlve, and nelther of the partles ahsU be Jolntly or
eeverally llable for the ectar ooleslone or obllgatLons of the other.
NothLng hereln contained eha1l be coneErued Co create ao aegoclatlon,
JolnE venture, partnershlp, or lnpoae a p.sEaershlp duey, obligaeion or
ltabillty on or wlth regard to either of the parties except to the
extent othenl3e agreed upon eolely for Unlted Statee lncooe tax
purposea. No party shaIl have the rlght or power to blnd the other
party wlthout lta expresB' wrltten consent except as expreealy provlded
ln thls Agreeoent.
13. Succegsors and Aselgne: SubJect to the reatrtctlons on
transfer and assigruent hereln provlded, all of the reepectlve covenants
and obligatlons of each of the parties shall be and becooe the respecElve
obligatlons of the succeesors and aselgne of each euch parry and shalL
be obllgaElone runnlng with the respectlve party's rlghcs, tltles and
lnterests ln the Project. It ls the epeclflc intentlon of thls provislon
that all such covenanEe and obllgatlone ahall be blndlng uPon any Party
13.
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whlch acquirea any of the rlght, tltle and lntereet of elther of the
partles to the ProJect.
14. Arbltratlon:Any dlapute arlalng between the partlee lnvolvtng
any of the itens, covenantB and condittonB of thte Ornrerahlp Agreeuent
shall be eubJect to arbltratlon ln accordance rlth the rulee thea obtalning
of the Anerl.can Arbltratlon Assoclatlon and the followlng procedure:
The party deuandlng arbltratlon ahal1 glve to the other party
notlce Ln wrl.Etng of such doand. The pafties shall treet $lthin ten
(10) days thereafter to select an arbltrator by agreenent. In the event
the partiea cannot agree upon such arbltrator, a Judge of the Dlstrlct
Court of the Untted staEes for the State of Nevada or such trlbunal as
uay at the trra be the succeBsor of such Court, Eay, upon request of
either parEy, appolnt an arbltrator who ahall be an lndLvidual of
natlonel reputatlon havlng denonstraced expertlee ln the fteld of the
Datter or lten to be arbltreEed. Each psrEy shall provlde the Judge
lrlth a llst of cwo (2) arbltrators. The Judge ehall €elect an arbltrator
frou the panel of four (4) arbltratoro eubulE,ted. If, pendlng any
arbltratlon under thls Agreenent, the arbltrgtor, or succeBsor or
substltute arbltrator shall for any reason be unable or unwllllng to
act, hr.E succeBBor shal1 be appointed aa he raa appolnted, and guch
successor or substltute arbltrator aE to all oattcrs then pendl-ng shall
act the sane aB tf he had been orlglnally appolnted as an arbltratoi.
The award of the arbltrator so chogen ehall be flnal and blndlng upon
all partLes, and if necegeary and approprlate ln the premlses, the
arbitrator may nake an order requirlng speciflc perfotmance of any of
the Eeras and conditlons of aald award. The auard rendered by the
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arblErator Bhe11 be flnal, end Jud$oent Day be entered upon lt ln any
court havlng lurlsdtctlon thereof. Each perty shall bear the expense of
preparlng and presentlng ttg owa case, aad the expense of the arbitrator
shall be equltably dlvtded between the partles by the arbltrator.
15. Appllcable Lawa and Regulatlona: The partleg ln thelr
perforuance of thelr obllgatlons hereuoder ehal1 conforr to all applt-
cable 1aws, ruleg, regulatlone and adutnteEratlve orders. This Agreeuent
shall be construed under the laws of the State of Nevada. Thls Agreement
ls subJect to the approval of any state or federal regulatory agency
havlng Jurlsdlction thereof.
16. Slerra Paclflcre Partlclpatlon ln IdahorB Unlts:
If ln the future Idaho develope any additlonal therual generating
unLts in lte aervice terrltory, Slerra Paciflc shall have the rlght of
first refusal to particlpate ln the Osnership of such unlts. Thls rlght
of first refusal shall entltle Sierra Paclflc to purchase and oun a
percenEage share of each Idaho unlt as lc is developed. The anount
of thlE percentage share shaU be eubject to Eutual agreeEent and wlll
be deteruined at least 120 days prlor to the date that Idaho intends
to f1le wlth the approprl.ate Etate regulatory agency for perrnleelon
to construct a theraral generatlng unlt. Thls rlght to partlclpate shal1
exl,st until Slerra Paclflc has participated Ln Idahote unlte ln at
least aa eggtegate auount equal to the aggregate amount of ldahots
share of capaclty in Ehe North Valny Porer Plant ProJect. Any additional
capaci.ty Slerra Pacific nlght obtaln Ln IdahorB units in excess of
Idaho's share in the North Valny Power Plant ProJect shall be subject
to mutual agrgenent.
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L7. Notlces: Any notlee, deuand or aequest provlded for in thls
Agreeoent served, glven or uede ln connectlon therewlth eha11 be deened
properly served, glven or made lf eent by regletered or cerClfted nai1,
postage prapald, addreesed to the party at 1ts prlnelpal place of buslness
to the attention of the Presldent or Chlef Executl.vc 0fflcer of Sterra
PaclfLc or ldaho. A party Eay at any tlnc change lts declgnation of the
person to whor noBlce ahal.l be glven by wrltten notLce to thG other
party as heretnabove provlded.
18. Addttlonal Docunents:Eaeh party upon request by the other
party eha1l -ake, execute and dellvar any and all doctroents reasonably
requlred to lnp1cueot the cetza of thlr Agreeuent. The pertlee further
agree that there shall be a "Meoorandun of Agreenent'r (scc aEtached
exhlbtt) flled auong the off,lclal records of the Br'ruboldt County Recorder,
County Courthouee, WlnneuuecS, Nevlda.
19. Entlre Agreeuent: Thla contract constltutes the entLre agreeDent
between Slerra Paciflc and Idaho relating to thc subJect rn.tter hereof,
and supersedeg any prevl.ous agreements or understandlngs e:tceptlng those
speclftc ProJect Agreeuente as referenced ln Artlcle 1.5.
IN I{ITNESS I{HEREOF, the partl.es hereto bave exeeuted thls Agrgement
ln geveral counterparte effectLve the day and year firet above wrltteu.
IDNIO POI{ER COUPAI{Y
L
ll , Presldent
ATTEST:
16
SIERBA PACIFIC POIIER COI,IPAITY
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,, -*r- /. ?. '-Ae L. Greubair, Prestdent
STATE OF NEVADA
COTNTY OF h:asLoc,
on thls ,* day of Deceruber, 1978, personally appeared before ne,
a Notary Public, JOE L. GBEIGAN, Prealdent of Sierra Paciflc Power Company,
who acknowledged to Ee that he executgd the wlthin lnstruoent on behalf of
Slerra Paclflc Porer Conpany.
lc
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Joir}..i blAc.Afil;.GA
Nota;Y P.rbltr: ' 3t:i:?: o{ rJ(: r; Jt
l.Vssho:r CountY
MY Comrnis'r;on Exprres Oec 4' 1:'J1i
STATE OF NEVADA
COUNTY 0F teas.l..a
Ori thls lrt day of Decernber, 1978, personelly appeared before oe,
a Notary Publlc, JAI{ES E. BRUCE, Preeldent of Idaho Power Company, who
acknowledged to ue that he exeeuted the wlthln lnstruoent on behalf of
Idaho Power Coupeny.
)
)
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JOI{!{ l''A9";ili'GA
Nctary F,rhlic - ::ilc ol llevada
Washoe County
tary P 1c
MY Commlsslon Expiras Dea, 1,1982
L7.
MEMOMI{DU{ OF AGREEUENT
Ihe undersigned have chls d' day of Deceubei, 1978, entered lnroa formal wrttten agreement ulth eseh other coverlng thelr uutual proulses,
obllgatlons and covenants touchlng and concernlng the follorlng descrlbedreal property and improveuents located ln ltrroboldt County, State of
Nevada, more patrtlcularly deecribed ag followe:
Sectlone 20, 21, 22, 27, 28, 29, 32, 33 and 34, Tormship
35, North Range 43 EaEt l,l.D.B,EM.
Any person seeking infornation wlth respect to thosG prouises,
obllgatlons and covenants nay have that lnforuetlon by lnqulrlng at theoffice of the Prestdent of Sl.erra Paclflc Poner Coopany, 100 East Moana
La[e, Reno, Nevada.
IDAHO POI{ER COMPA}IY SIERRA PACIFIC POIIER COUPA}IY
O.rilra6 t Cl-. 1, -9rr-.rl*- -E. Bruce
t 6naPres
L. Grenban
ldent
STATE OF NEVADA )
couNrY oF ly'aohc l'"'
on this //4", of Decenber, 1978, personally appeared before ua,
a Notary Publlc JOE L. CREMBAI\I, Presldent of Slerra Paciflc Power Conpany,
who acknouledged to De t,hat he executed the wlthln lnstrutrent on behalf of
Si.erra Paclflc Power Coapany.
STATE OT NEVADA )
cot NrY or -Z)n"/n---\'"'
0n this fiA"y of Deceuber, 1978, peraonally appeared before me,
a Notary Publlc, JAMES E. BRUCE, Presldenc of ldaho Power Coopany, who
acknowledged to ue that he executed the wlthln lnstrument on behalf of
Idaho Power Company.
Not PubIic -tI
)i
.,, r'.ir.r:;.,Jsirrr {.c.rr's O'-': 4' l9ij?'
Nctary Public - State cl I'levada
Washoe CounlY
My Confitsslon ExPircs Dec' 1, 1982
.IOHTJ I'ADPRIi.GA
i rl.li'. ii-.: '.\r{L' '/i \.-,
i',,,,,,,u'r,, ","'"
EXBIBII TA*
Exhiblt xAx is a flve (5) page docunent of ttre overall
North vaLmy Power Pl.ant ProJect ana Uciudes:
Site PIan Page I of 5
Page 2 of, 5Itatlroad & Road Accesa
Conetructlon Eacilitles(Watet Pipeltne)Page 3 of 5
Hain glater PLpeline(Eey PIan)Page tl of 5
One-L,ine Diagram(Unlt Ho. I No. Vauny Sub)Page 5 of 5
![he connon factlttles as to thia Power Plant Project,
are indicated on pages 2-5, and specifically by aoterisk on
page l. of 5.
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO, IPC.E.21.12
IDAHO POWER COMPANY
REQUEST NO. 9
ATTACHMENT NO.2
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AGREEMEITT TOR THE OPERATION
OF THE NORTH VALMY POWER PI.A}TT PROJECT
THIS AGREEMENTT ruade thls ,Zt\ day of Nc*^L..L97r ,
berueen SIERRA PACIFIC POIIER COMPAI.IY (herelnafcer referred to as "Sierra
Pacific"), a publlc utlllty cor?oratlon duly organlzed and exisring
according to Ehe laws of che State of Nevada, and IDAltO POIIER COMPAMY
(herelnafter referred Eo as "Idahot'), a publlc uclllty corporatlon duly
organiaed and orlstlng accordlng to the laus of Ehe SEare of Ma1ne, and
duly qualified and doing business ln the State of Nevada.
ITITNESSEfiI:
WHEREAS, Slerra Paclflc 1s an Lnvestor-owned electric utllicy
company sub.'i ect Eo the regulatlon of che Public Senrtce Coumission of
the State of Nevada, the Public UtlliEles Cosuoisslon of the Scate of
Callfornta, and the Federal Energy Regulacory Comlsston; and
WHEREAS, Idaho 1s an lnvestor-owned electrlc utlllcy subject to Ehe
regulatory JurlsdicElon of the Pub11c Utl11cy Com-lsstoner of Oregon,
the Idaho PubIic UEillties Cousnlsslon, Publlc Senrlce Coomlssion of
Wyoolng, che Public Senri.ce Coomlsslon of Nevada, the Federal Energy
Regu1atory Ccnrnisslon; and
llllEREAS, Idaho and Slerra Paclflc have, concurrently herewlth
entered lnto agreeraents for che Constructlon and Ownership of the North
Vakoy Power Plant Project; and
WHEREA.S, ln the Ownership Agreenent fhe parties have staEed and
reciEed the uutual beneflts to, and covenanls of, the parcies, lhose
recitals are adopEed as parE hereof.
N0tl, THEREF0RE, the parties covenant and agree as follows:
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1. DEFINITIONS:The follovtng terms when used hereln shall have
Ehe oeaning specifled:
1. I Capital Addlttons: Ca p1tal Addlclons loeans any addltlons,
improveuents or bettenqenEs Eo che ProJecc oEher then addlfional Senerat-
ing facilitles. Capltal Addltlons shall lnclude but are noc liolced ro
facilitles and equlpuent requlred to assule design capabiliEy or ro
conforrn to applicable governoental requlrenents or as the Operacing
Courqittee oay requlre.
L.2 Coulon Facilities: Conmon Facillties means all facilit,ies
ocher than the facilir,ies included in each UniE which will senre and be
requtred ln connectlon stth the operaElon and oalncenance of oore Ehan
one Unit, includlng, withouE llnitatlonr \.rater supply syscen, coal
supply systemt related tran$olsslon substatlon facl11ties, access roads,
railroads, engJ.neering and lega1 fees and expenses, rlghcs-of-way, and
aLl lands or interescs 1n land lncluded ln Ehe Project as reflecred in
atEached ExhiblE "A".
1.3 Completton:Coapletton is the date rhen the Opereting
Comoittee certifies Lhar a Unlt has been adequately tesced and is aecepced
for co*ercial operatlon.
1.4 Operat,ine Co@lEtee: Operat.ing Cormlttee is as def ined
and established ln thls Agreemenc.
,. 1.)t/1.5 Operating Procedures Crlteria:A fonaal docuoent prepared
and oainlalned by the Operating Corunlttee setting forth rhe operacing
limlts and capabtlitles of the ProjecE and guidelines and procedures co
',be used ln operatlng the Project.
1.6 outpuE: 0utpuc neans Lhe neE capaci.ty and energy from
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rhe Unlr(s) rrhlch can be oade avaL1able ac the Valoy SubsEatton 345 Kv
bus for Eransoisslon co the Partles' respectlve systems.
L.7 Project: ProJect ls the North V"f*y Poner Planr Project
located north of Valmy, Hunboldt CounEy, Nevada, whlch wtll conelst of
one or Bore coal-fired Unlts, each of approximacely 250 oegawatts,
au:clIlary equlpoenC, colrnon facllltles, uater rlghts and other necessary
ProPerty.
1.8 Prolect Aqree$ent: The following agreeuencs constiruce
che ProjecE. Agreeurent and shal1 be construed together:
(a) Agreenent for the Or.rnershlp of che North Valny
Power Planr Project (Onnership Agreenent).
(b) Agreement for the ConstrucLlon of Ehe North
Valuy Power Plant Project (Constructlon AgreeoenE).
(c) Agreenenr for the Operaclon of the Norch Valny
Potrer Plant ProJecc (OperaElng Agreeoenc).
L 9 Pro i ec E rlrbi Eracor : Pro ject Arbltretor 1s an tndlvldual
havtng a naElonel reputatlon for expertlse ln the field of the tratter or
iten referred to hLu and appoinced for the resoluElon by arbirratlon of
e dlfference regardlng a Eatter or lteu referred t,o htE. A dlfferent
Projecf Arbltrator uay be appoinced for each Eact.er or lt,eo referred.
1.10 PrudenE Utilily Pract,lce: Prudent Ut11icy Practlce
ureans any of the pracElces, meEhods and acts engaged ln or approved by a
significanE, proportlon of the electrlcal utlllty lndustry prlor t,o the
time of the referencet or any of the practices, trechods and acts which
ln the exerclse of reasonable Judgnent ln lighc of the facts knor.n at
Ehe tlne the declsion rras oade, could have been o<pecced to accoupllsh
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the destred resulc at, the lowesE reasonable cost conslsEenc stth rella-
bility, safety and expedlrton. Prudenr Uttllty Practtce sha1l apply not
only to functlooal parEs of the Prolect buc also to approprlate strucEuresr
landscaping, palnting, slgns, llghclng and oEher facillcles and publtc
relaElons progratrs reasonably deslgned co PrfiroEe publtc enjoyu.enc,
understandtng and accept,ance of the Project. Prudent Ut111cy Practlce
ls noE lnrended to be llolted to the optlmr.rm practlce, oechod or acE Eo
the excluslon of all ot,hers, but rather to be a range of aceepted pracrices,
urechods or acts.
1.11 Unlt: Unit oeans a complete 250 uegawaEt generatint
plant, lncluding boller, Eurbine generator, that part of coal. preparaEion
and supply systeo, that patt of the switchyard, and aII auxillaries,
accessories and conErols readlly ldentlfled wlth and solely assoclated
wlch the Unlt as reflected ln the attached Exhlblc "A".
2. OPERATION OF PROJECT
2,1 Slerra Pactflc shall be the operaEor of the Project on
behalf of and for the account, of the partles subJect to che tems,
conditions and covenants c,ontelned ln Chls AgreemenE. '
2,2 Sierra PacLfic covenants chat lt w1ll operate and oaintain
the Project. in accordance with Prudent UtlliEy Praetice, applicable laws
and valid orders and regulatlons of regulacory or other agencies havlng
JurisdlcEion, and under the dlrecrion of rhe Operaclng Comiicee and Ehe
0perating Procedures Criterta. SubjecE to the foregoing, Slerra Paclfic
w111 operale and maintain che Project so as to produce the energ;l
scheduled by the parEles.
2.3 All persons enployed ln the operation and nainE.enance of
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the Project, other than enployees of independenc contractors, shall be
Sierra Paciftc eoployees and shall oot be considered to be eopLoyees or
agents of Idaho, excepting lhose ldaho enployees who are assigned train-
ing posiEions on this Project on a Eeoporary bas1s.
2.4 Sierra Paclfic shall pay pronpcly all suos due eoployees
of due any governmental or oEher agency on thelr behalf and shall not
perElt any labor clalms to becone a lien against the Projecc other than
claims chaE are being contested ln good falth.
3. OPERATING DECISIONS
3.1 AE Ehe ti.oe of Ehe execution of Ehls Agreeaent and
thereafter as requJ.red, the parti.es shall each appolnc one (t) oenber co
the Operating Comittee. The Cormicree shall oeer at such times as tray
be agreed or upon seven (7) days'rrriEten nocice by elther oeober, and
shall keep wrltten olnuEes of meeEings. Each neober of che ComiEtee
sha.l, I be entltled to vote lcs Percentage Share. Each oenber by wrltren
noEice may appolnt an aIE,ernaEe or alt,ernates Co senre on t,he Operating
Coomltcee ln that member's absence. Any actlon caken which nay be taken
at. a Eeerlng of the Cormlttee Eay be t,aken wiihouc a treeElng by outual
LrritEen consenE.
3,2 The Operatlng Coruni.ttee shal-L act on behalf of Ehe
partles 1n providing general coordlnat.ion and dlrection for the operation
of rhe Project. In additlon t.o those responsibilitles specifically set
ouE tn chis Agreeoent, the Operaclng Ccrnnittee shall establish general
policles and practlces Eo be folloved 1n operaEing che ProJect. In
additlon, the 0perating Comirtee shall be responsible for resolvlng on
a protrpc, and orderly basis Che various adnlnistraEive, technical,
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financlal and other operatlng lssues whlch nay artse tn connectlon r.r1th
the operat,ion of the Project. It shall also develop, uratntaln and
updace the 0peracing Procedures Criterla.
3.3 Slerra Paclfic shall keep the 0peratlng Counltcee fully
lnforued regarding all slgnificant tratters wlth respecE to operation of
the Project and on such oEher ProJect Batters as tray be speclfically
requesred by eicher ueruber of the Contrlltee.
3.4 Slerra Paclfic shall subuit blds and proposed conEracts
exceeding $500,000 involvlng compleced Unit(s), and all raaJor oalnlenance
scheduLes, all budgeEs and rerr{sions thereto to the Operating Comiccee
for approval before taklng acEion Ehereon.
3.5 Macrers requlred ro be submltted to che Operaclng
Comittee pursuant to this Agreement or oaEters E,hat eic,her parcy may
deslre Eo subtrit Eo Ehe Commltree sha1l be acted upon withln the time
period speclfied ln the subruitcal, which t,1me period shalL noc be Iess
than fourreen (14) days afEer Ehe date of submlEtal. MarEers nor dis-
approved by a neuber lrlEhln the specified tine perlod shall be deemed
approved by such manber. Matters disapproved by a nember shall be
segregated by the member so that the exact iteus of dlfference are
identifled and, if resolutlon cannot be achieved tn negotiation berveen
the parties, then Ehose unresolved items so identified shall be referred
by rhe Operating Comlt,t.ee co an arbicraEor. Each toeober who wirhin Ehe
lloit,ed cioe dlsapproves an lEern shall at the tlme of such disapproval
sEaEe in r,iriEing his reasons for disapproval and a proposed resolution
co Ehe ireu of difference. rtems noL so ldentified sha1l be deerued
approved.
6.
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3.6 A Project Arbitracor sha1l be employed by che parEles
afcer selectlon by che Operaclng CooanlEree. In Ehe absence of agree-
ment, the partles shall reguesc the appolntnent of the ProlecC Arbltracor
by a judge of che District, Court of the United SEates for the State of
Nevada utllizlng che procedures for selecclng an Arbitrator descrtbed in
Seccion L4 of. the Or.rnership Agreerrent.
3,7 In submitElng ltems of difference to the Project ArbitraEor
the partles shall each propose a resoluElon of the iceu(s) of dlfference
which proposal shall noc differ frorn lts last proposal made during
negottatlon pursuant Eo Sectlon 3.5 above. Each parEy shall within ten
(10) days of selectlon of che Projecc ArbtErator submir to the Projecc
Arbicrator a1l wriEEen argunenEs and faccual inforuacion regardlng che
disputed lteu and such facEual information shall- noE cont,ain any new
lnformaClon not previously couuunlcated co rhe ocher party. ExcepE as
othen,ise provided hereln, Ehe auchoricy of the Project Arbitracor is
speciflcally 11n1ted to selectlng one of the t'.ro proposed resolucions
t,hus suboitted, and the ArbiErator shall not have auEhoriEy to effect
any other resolution of rhe dlspute. The Arbicracor shall be requlred
Eo render lfs decision no later than ninecy (90) days after the submis-
sioo of hrrltten arg'unents and facEual materials unless othemise agreed
by che parties in rrriting. Thq Project ArbicraEor shall derenrine which
of the tuo proposed resoluEions is more desirable, and shal1 detenrlne
if the proposed resoluEioos are consistent wtEh Prudenc Utllity Practice.
The resolution chosen by the Projecc Arbicracor shalt becooe effective
lrnaedlately. If nelther proposed resoluElon is found by the Projecc
Arbitrator to be conslsEent r.rlth Prudent UElliEy PracE,ice, char ltem oi
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difference shall be nodifled Eo confom to the recommendation of rhe
ProJecr ArblEraEor or as Ehe Operaclng Corulctee otheftrl-se agrees and
shall become effectlve as and uhen modlfled.
3.E If che Project Arblrrator deremlnes thaE nelEher of the
proposed resolutlons ls conslstenc wich Prudent UEillEy Practlce, t.hen
che ArblgraEor shall recormend what vould, under the saae circr.rostances,
oeeE such a test.
3.9 The cost of enploying the Project Arbitrator shall be an
Operating Expense, unless the ProjecE Arbitrator deterruines rhac the
resolution proposed by one of the parttes was nor. consisEent with Prudent
Ucilicy PracEice while the resolution proposed by Ehe other party was.
In such event,t the costs of oploying the Project Arbitrator shall be
borne by the party whose proposed resolut,lon was not consiscenc rlth
Prudenc Utility Practice.
3.]0 Sierra Paclftc shall have the rlght, or Ehe duty if
requesced by ldaho ln wrltlngt to proceed with an lten prior Eo the time
allowed under Seccion 3.5 or ttthouc approval by a ueober of the Operal-
ing Cotmittee; provtded, horever, if subsequently the Proj ect Arbltracor
deterrnines that the deciding party's acclons were not preferable Eo the
proposed resolutlon of the non-decidlng party, Ehen the deciding party
shall indlvidually bear Ehe lncreased expense of such actlon.
3.11 No nernber of the Cormittee (or such oember's succe5sor)
shall disapprove (i) macters whlch were suboiEced to che Courittee
pursuan! Eo the terms of lhls Agreemenr and not, disapproved wichln che
tiroe allowed, (ii) any itero(s) of dlfference after resolutlon by the
Project ArbtErator, or (i11) ltems or serles of related lteos wieh a
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total present worth of less than $100,000.
4. OPERATING E]GENSES
4.1 Operatlng e-l.penses shal.I consist of all palments made
for and obligatlons Lncutred tn operaElng and ualncalnlng the Project
tncluding:
4.I.I The cost of all senrl.ces perforued by eicher
parly dlrectly appllcable to Prolecl operaEion and mainBenance, lnclud-
ing, but not llnlEed to:
(a) Payroll expenses of ProJect eoployees
on an acEual tlEre basls lncluding employee beneflt costs
sueh as Soclal Secutlty Taxes, unenplolaoeoE insurance expense,
group 1l.fe tnsulance, group hospttallzatlon anC medical
lnsurance, penslon fundlng expense, worhen's coopensation,
long-term dlsablllty and oEhet insurance and pald leave.
(b) l,[acer1als and supplles includlng
related purchastnB and handllng costs.
(c) Costs relat,ed Eo leased equipuent.
(d) All net costs of lnsurance obEained
for and appllcable to operalion.
4.L.2 A11 federal, srate or local taxes laposed upon Ehe
ProJect and palmenEs in lteu of taxes (but excluding stace and federal
neE incotne ta(es levled upon lncoue derlved by the partles dur:ng said
period), except any Lax assessed directly agalnsg elrher parry unless
such tax was assessed to a party on behalf of the Project.
4.1.3 A11 coscs relattng to personal inJuries, property
daoage clalms and claius of concractors whlch arise out of the operatlon
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of r,he Project less proceeds of lnsurance.
4.I.4 AII other dlrecl costs or sxpenses properly
a1locable ro Projecr Operat,lng Expense.
4.2 Each party shall charge Ehe Proleer for its adminlstracive
and general ercpenses dlreccly related to operetion of the ProJecE and
are noc lncluded in the ltens set forth above. These expenses shall be
derermlned as a resulc of a study perforued by each party on a budget-
year basls. Each party's yearly budgeted adolnlstratlve and general
coscs relared co operaE,lon of the Projeet shall be subuitced for approva!.
by the Operating Coronitcee, and shalL be patd from the Operaclon Trusc
Accounr to each party in equal uonthly installnenCs. At the end of the
budgec yearr each parEy shall subult t.o Ehe 0peratlng Comittee lnvoices
and,/or other dara supporting, such payuents from the OperaElon Trust
AccounE. Any underpayoents or overpaymenEs shall be reiubursed to or by
Che parcies ac che direc[ion of rhe operatlng qolltrulE,tee.
6.3 The operator shal1 account for a1I Operating Expenses
and incooe in accordance wlE,h the Uniforu Systen of Accouncs prescrtbed
for electric utilic.l.es by Ehe Federal Energy Regulatory Coornission or
les successorr or if rhere be none, by an approprtate regulacory agency.
4.4 For purposes of this Agree$enE, any noncash expenses
incurred by either party, i.e., depreclation and deferred incoue taxes,
shalI nor. be considered 0perarlng Expenses.
5. A}INUAL BUOCET
5.1 0n or before Sepcember I of each year, Sierra pacific
shall submiE Eo Ehe Operacing Corxmitree for approval a budgec of 1Es
esEiuate of Project operaEing Expenses, fuel cosEs and Capital Addltions
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Expeudicures by Eonths for the nexr calendar year. If such approval is
nor given by November I in any such year, the partles shall agree uPon a
revised budget noE laEer Ehan Decenber I of such year. The annual
budger shall lnclude nanporrer allocatlons, projecllons of adoinlstration
and general er<penses, fuel coscs, roaEerlals, servlces, and a conEingency
iEeil for energency repairs and replacements durlng the course of the
year. Ihe Capltal Addltions budget shall lnclude an Englneerlng Escimace.
Such Engineering Estimate shall lnclude a ful,l descrlption of the proposed
Capital Addirion, the assqciated costs and beneftEs, a decalled cost
estitrate of all etrpendiEures required ro be oade Eor such Capltal Addition
and a bill of naterials. Slerra Pacific w111 subult to Ehe Ogerating
Co-rnictee for approval, dtry budget re'risions $hich change a budget
iteo's tocal aanual. cosE by ten percent (102). Such revtsions w111 be
deesred approved if noc dlsapproved withln fourceen (I4) days afcer
subuitcal . Noobudgec it,@s shall be approved by che Operat.r.ng CormiEEee.
5.2 Slerra Pacif ic sha1l each month subnit Eo che 0perac.ing
Coomlccee a cooparison of tronthly and yearly co dare actual and budgeEe<i
expenditures for ProjecE 0peratlng Expenses.
5.3 In addirion to the annual budgeE as seE forth in Section
5.1 above, Sierra Paclf ic shall submlt to lhe 0perating Comj.ccee on or
before December 1 of each year a forecast of annual Project Operaring
Expenses, Fuel CosEs and Caplcal Addit.lons expendicures for the Ehree
years following Ehe Ewo-year budget period.
6. PAYUENT OF PROJECT OPEfu\TINC E)GENSES
5.1 Sierra Paclflc sha11 establlsh a separate 0peratlon
Trusc Account tn a bank locaLed ln the State of Nevada and having
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qualttications oeeElng all requlrenent.s imposed upon depostcortes for
elcher parcy. A11 [unds for payment of ProJect 0Peratlng Expenses shall
be deposited Ehereln and Sierra Pacific shall wichdraw and apply funds
Eherefrom as necessary.
6,2 Upon courpleclon of che flrsc UniE or at such oEher Eine
as Ehe Operat,lng ConuniEtee nay deteratne each parEy shall deposiE $50,000
lnto the 0peratton TrusE Account and each party shaIl Ehereafter continue
in proporcion Eo iEs Percencage Share Eo l[alnt,ain that ^rnounc in Ehe
Operacion Trust, Account or such other 2mounE as the Operatlng Cott'mlt,tee
oay determlne.
6.3 Following the initial deposlc described in Section 5.2
above and e<cepc as ocheririse agreed by rhe 0peratiog Courmittee, on each
Monday before the firsc and ftfteenth of each nonth each party shall
depostc lnto che Operacion TrusE Account, an ,$ounE proportloaate to one-
half of iEs PercenEege Share of the amount budgeLed for coal and oil
purchases plus Operating Expenses. In the event of an ivnmediare require-
nenE of Eunds, Sierra Paciflc loay notlfy Idaho and each party shall
promptly deposiE in the Operatlon Trust Account lts Percentage Share ot
Ehe a.Dount required.
6.4 0n or before che 15th day of each oonEh Operator wil}
furnish Eo Ehe parEies an 0perating Expense stat€menE preparad 1n
conformance with SecEion 7.1 showing for t,he preceding calendar Eonth
al] coal and oi1 purchases and 0peratlng Expenses incurred by the OperaEor
during such preceding nonrh. Any variance beEween such st,at€qenE of
accual coal and otl purchases and actual Operauing Expenses and che
zrnounts deposiEed by rhe parcles in the prevlous uonth shall be added to
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or deducled from Ehe respective parcy's obllgaclon co deposlE 1n the
monEh or uronths succeeding the lssuance of the staEeoent.
7. ACCOUNTING
7.1 Sierra Pactflc shall keep accounEing and scatlstlcal
records of ProjecE operatlon in accordance wlth regulatory requiremenEs,
Prudent UriliEy Practlce and the directlon of the Operating Coomirtee.
7.2 Each party, t,hrough lts operatlng Corunittee oeuber, and
any regular.ory cormlsslon having utility rate Jurisdlctlon over eiBher
party shall have the right at any reasonable tlme to exarulne Ehe separace
books of accounE kept by each party pursuant to thls Sectlon 7 and all
supporting data and docr.uents relaEtng, Ehereto whlch are applicable co
che NorEh Vafuny Pouer Plant Project.
7.3 By Ehe 15ch of each month Slerra Pacific shatJ. supply to
Idaho a complete ltemized accountlng of Project oonthly operations and
all deposlts Ln and wiEhdratrals from the Operation Trust AccounE during
the previous oonEh.
7.4 At least once a year Slerra Paclflc shal1 request an
independenE cerrifled publlc accounLlng firrn of natlonal reputation
acceptable to the partles to audit Project OperaCing Expenses and fuel
cosEs and eoptes of such audit shall be supplied to Idaho through the
0perating Committee.
8. FUEL COSTS
8.I Slerra Pacific shal1 arrenge for the purchase and
delivery of coal for Unlt No. 1 in accordance wLth the teros and condi-
Eions of its cont,ract with Soufhern Utah Fuel Company dated ltay 15,
1978, and w1ll arrange tor Ehe purchase and delivery of fuel oil for use
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ln Unit No. l. Either parcy uuly arrange for the purchase and dellvery
of addltlonal coal or oll for any future ProJect Unlc(s) under such
Eerms and condltlons as tlay be agreed upon by the partles.
8.2 Once each calendar year, or as othenrise determined by
Ehe 0perating Corulttee, Sierra Paclfic shall sunrey the total coal in
storage Eo determine the anounrs of coal in the storage plle. If Ehe
coal ln the storage pile as deleruined by such suiley 1s greacer or less
Ehan the invenEory as sec forth in the coal inventory records, each
partyrs coal account wilL be lncreased or decreased based on Ehe inventory
adjustaent procedure conrained lo Ehe OperaEtng Procedures Criceria. If
such adjusEnenc resulrs in eirher party having less t,han its Percencage
Share in Ehe sEorage pile, such party shal1 nake arrangements to correct
chls deficiency as soon as reasonably possible.
8.1 0n or before Ehe l5th day of each oonth Slerra Pacific
will furnlsh to the parties a Coal Cost. SEareaenE prepared ln conforoance
with Section 7.1 showlng the accual cost of coal consr.med for the preced-
ing nonrh. The calculaclon of the actual cost of coal shall reflecc any
shipplng Losses and reducrlons ln a UniE's heat raEe due t.o one parEy's
schedullng of less than its Percentage Share of the Projecr's OuEpuE.
8.4 0n al least an annual basis the parties shaIl rnake an
appropriace adjustment so thac the cosr borne by each parcy for t,he
Projectrs Eotal actuaL cosE of coal ccnsumed sha11 be ln lhe sa.roe propor-
Eion as che ProjecErs Output allocated Eo the "."oloc of each party
bears to the cotal Output of the ProJecr.
8.5 Al1 calculations and adjustnencs descrlbed ln chis
SecEion 8 shall be made in accordance wiEh the guldeltnes set ouc in the
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Operatlng Procedures CrlEerla.
8.6 If either parry destres to use
for unics other chan che ProJect, lE shall pay
Ehe use o[ such coal for non-Projecr purPoses.
for uniEs oEher than Ehe ProJect sha1l require
boch parties.
9. RIGHTS To OUTPIJT; SCHEDULINC
coal frour the stockplle
all costs assoclar,ed ulth
The use of ProJect coal
che lrrit,ten consent of
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9.1 Each party shalJ. have a rlght to receLve as scheduled
lrs Percentage share of the ProJect output ulrhin the abillcy of the
Projecc at such Eltre to oPeraEe.
9.2 Netther party shall schedule a rare of change of tEs
share of Output greater Ehan such party's percenEage of the rate of
change vhich ls r,rlthln rhe ablltty of the ProJect to perforr o(cept Eo
the errtent the other party schedules a rate of change such Ehat the rate
of change oE the coabined schedules 1s noE, greaEer rhan the ablllty of
the Project, ro perform.
9.3 Slerra Pacific shaIl pronptly notlfy each party of any
change ln operating lintEs or operaLing capabllities of the Project and,
subject to che guldellnes sel out tn the 0peratlng Procedures Crlterla,
the partles shall thereupon mrke any necessar.v changes ln thelr percenE-
age of such changed operating limits and capabiltEy.
9.n If, aE any Elme eicher parEy decides t,o seIl or asslgn
any portion of ILs Percentage Share of the Output of Che ProJect, thac
party sha1l first, on a right of first refusal basis, offer to sell or
assign such PercenEage Share to the other parEy.
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IO. SCUEDIJLINC OF OUTACES
I0.1 Sierra Paclflc sha1I schedule oucages for major matn-
tenance as required for tnsurance purposes and to achleve compllance
with manufacEurer's appllcable narrancy condiElons or as dl.rected by Ehe
Operating [e-mail]. l.tainEenance shall be in such monEh and year for
such periods of Eisre as agreed by the parEles through Ehe 0peracing
Comurictee. Additlonal maincenance ouEages requlred for safe operaEion
of the Project shall be scheduled by Sierra Pacific as required.
10,2 In the even! unforeseen circrustances cause an emergency
outage, or a reduction in Project. capability, Sierra Pacific shall
iuuediat,ely notify Idaho, unless othervise agreedr and shalI Eake such
sceps, including the use of preoiuu time, as may be required to return
the Project Eo an operatlng condition as soon as is reasonably posstble.
1I. DISPOSAL OT HASTE OR SIJRPLUS COMMODITIES, MATERIAIS,
EQUIPI{E}IT AIID OTHER PERSONAL PROPERTY
11.1 Any conroodicies, maEerials, equipmenE or other personal
properEy uhich are produced frou or are available fron the Project and
vhich are surplus to t.he then presenE or reasonably foreseeable fucure
requiranents of the ProjecE may be solC or ocher,rise disposed of upon
such cerus and conditlons and for such periods of tirne E.hat may be
agreed by rhe 0perating Cortrf,1ccee. The proceeds of any such sale or
costs and ercpenses of any such disposal shall be deposited 1n or r.rith-
drawn from che Operation Trust Account and debtted or credited co the
Operating Expenses of rhe Prolect,
fl.2 The foregoing shall noc. be appllcable under any ctrcum-
sEances or in any tranner Eo sale or dlsposal of electrtc energy.
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L2,TERMINATION
12.l This Agreernenc shall tentinate 1n accordance wtrh
or 9 of the Orynershlp Agremtent.
LIABILITIES
Seccion 7
13
13.I In che operaElon of rhe ProJecr, each ParEy shall act
without coapensation other than reimburgement of costs and erpenses as
provided herein. ln consideratlon thereof, each parEy expressly agrees
that each ocher party individually, ics agents and eoployees (buc noE
any contractor or subcontractor of any ller) shall not be llable Co the
ocher parEy ior any claims or damage including claims or damage covered
by insurance based on or arlslng from a negllgent act or ooission of an
agent or ernployee of such oEher parcy ln conneccion r.riCh operation of
che ProjecE, and that paytrent of such clalns shall be an Operating
Expense. Each party shall cause lts insurers to waive any righrs of
subrogaclon against each of the ocher parEies, its agents or enployees
for losses, cosEs, daroages or expenses arising ouL of the operaEion of
che Proj ecc.
14. UNCONTROLL{BLE EORCES
14.f Neicher party sha11 be consldered ln default ln perfom-
ance of any of the obligattons hereunder oEher chan obligations of
elther party Eo pay coscs and expenses 1f fallure of perfomance shall
be due Eo unconErollable forces. The !erm "uncontrollable forces" shall
rlean any cause beyond Ehe conErol of the parEy required to perform and
any cause which that parEy cannof reasonably avoid. The CeIr shall
include, but noc be limlEed co, an act of God, fire, flood, explosion,
strlke, sabocage, an act of the public enemy, civll or millEary auEhoriL)',
17.
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including courc orders, injunct,ions, and orders of governmenr agencies
ulth proper jurisdicrion prohtbittng accs oecessary co performance
hereunder or permltrlng any such act subJect to unreasonable condlEtons,
insurrecti.on or rioE, an act of the elements, failure oi equipmenEt or
inabilicy to obc,ain or ship maEertals or equipment because of Ehe effect
of sloilar causes on suppllers or carriers. Nochlng contained hereln
shall be construed so as Eo require elcher party to setEle on an unreason-
able basis any strike or labor dlspute which dlreccly affects che Projecc.
If etcher parry ls rendered unable ro fulfill any obligacion by reason
of unconErolLable forces, lt shall exerctse due diligence to remove such
inabilicv wlth a-l1 reasonable di.spatch.
15. DEFAI,'LT
15.1 Except as othenise provided herein j.n che event of
default by a party thls Agreenenr sha11 be Eerminated in acccrdance wiEh
che provislons of SecEton 7 of the Orrnership Agreetrent unless Ehe party
noE ln default elects to contlnue the Agreement. The folloving shall be
deened evenEs of defaulc.
(a) Failure of a parry to make any paymenE rhen due;
(b) Fallure of a party to perfonu any obllgarion
required to be perfonaed hereing
(c) A purporred EerminaEion, E,ransf er, sale,
assignmenE, pledge or encumbrance oE a part:/rs inEeresi in
this AgreenrenE e-a(cept as permitEed hereln;
(d) A cransfer to any purchaser from a morEgagee
or secured party having realized upon its securiry or ocher.rise;
and
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(e) The bankrupEcl, or insolvency of a Party under
bankrupEcy or reorganlzaLlon, composlrioo or arrangemenE staEufes.
If one party belleves that Che orher parEy has commltted a default, the
nondefaulcing party shall nollfy the orher ParEy in writing describing
the alleged default, and lf che alleged defaulr is nol cured or protested
wichin sixty (60) days from Ehe date of such notice, 1c shall aE the
expiratlon of such pertod consrlEuce a default. If a Party ln good
faiEh dispucas E,he exiscence of an alleged defaulc, it sha1l wirhin a
sixcy (60) day period make such payment or perforu such obligacion under
yriEten proEesr direct to the other party. Such a dlspute shall be
submicced co the Project ArbiEraEor who shall determine whether a defaulr
has occurred. If the Project Arbitracor deceruines Ehat no default has
occurred, Ehe pracEice of defaulr shall be deemed Eo have been withdra'*n.
If the Proj ecc .A.rbicrator det,etmines thac a def ault has occurred, Ehe
parEy not ln def aulc may elect to cont,inue this Agreement, buE the part.y
in default shall have no rtghr co the Output of che ProJect., to have
represenEation on any corruiEtee, or to exercise any of the other righcs
under this Agreeuent. In Ehe case of a default the defaulting partyrs
PercenEage Share of power and energy rnay be sold durlng the period of
default for Ehe benefiE of rhe defaulrlng parEy and f,he proceeds applied
to any anouncs oued by such parcy. NoEwit,hstanding the foregoing, the
defaulting parry shal1 remain liable to the party not ln default, and to
the creditors of the ProJecc for obllgarlons incurred prlor t.o the cure
of any such defaulc. Palrmenrs not made when due by eiEher parcy shall
bear interesc uncil pald aE the rate oi ooe percent (12) per monc.h, or
the highes t lawf ul rare, whichever is Ior.rer.
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16. TRANSFER AND ASSIGNMENT SECIJRED INTERESTS
16.1 This Agreement sha1l be bindlng upon the successors in
interest and assigns of the parttes. Except as provlded tn Section 9 o[
the 0wrrership Agreement, che parEtes agree t,hat any t,ransier and assignmenr
shal1 be as follows and nor otheruise:
16.1.1 To any trorEgagee, trusEee or secured Parcy, as
eecurlty for bonds or ocher indebredness of such parcy, presenE or
fuEure, and such mortgagee, lrustee or secured parl,y may rea].ize uPon
such securi.Ey in foreclosure or other suitable proceedings, and succeed
to all right, ricle and interesr of any such parcy.
16.1.2 To any corporaE,ion or other enriE:/ acquiring all
or subscancially all the property of the party uaklng che trsnsfer.
16.1.3 To any corporaEion ot entlcy inco uhich or with
which the party making the Eransfer Elay be merged or consolldated.
16.1.4 To any corporaE,ion or entlty, che stock or otrrler-
shlp of which is wholly owned by the party uaklng che cransfe:.
16.f.5 To any corporaEion or entity in a contemporaneous
transacllon constituting a f inanclng arrangetrent under whic:r E,he part;rrs
conErol of its PercenE,age Share is subJect to defeac only on defaulc.
16.I.6 To any other financlally responslble person
where Che other party consents to such lransfer in advance ln wriElog,
A party requescing said Bransfer or asslgnment shall flrsr offer co
t.ransfer or assign Such lnterest to the other parcy for an aFounE not
greafer chan and on terms and conditions noE less advanEageous Ehan
those which 1c is wllling to accepc for a transfer or asstgnmenc to a
third person. Such ofler shall renain open a period noc Eo e:<ceed 180
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18. OBLIGATIONS ARE SEVERAL
I8.l The ducies, obligattons and liabilities oi the parties
hereunder are intended to be several and not joinc or collecttve, and
neiEher of rhe parEies shall be joincly or severally ltable for the
act,s, omissions or obligaEions of the oEher. Norhing heretn contained
shall be conscrued co create an assoclaEton, Jolnt venEure, partnership,
or iopose a partnership dury, obligarion or llability on or wich regard
Eo eit.her of rhe parcies except Eo che exEent ocherarise agreed upon
solely for Unired Scates incsroe Eax purposes. No party shal1 have rhe
rlghc or por.rer co bind che other party siE,hout ils express rrritten
consenE. excepc as expressly provided in chis Agreenenc.
19. SUCCESSO&S AI.ID ASSIGNS
19.1 AI1 of che respecEive covenanEs and obligations of each
of che parties shall be and become the respective obligations of the
successors and assigns of each such party and shall be obligafions
running wich che respecclve partyrs rights, tit,le and interests ln the
Project. IE ls rhe specific lntenEion of chis provision Ehac no t.ransfer
of any inEeresr in Ehe Project may becone effective unless the proposed
transferee ass\Jrles each of che transferor's covenants and obllgations
simulEaneously Eherewiih.
20. .A.PPLICABLE I.AWS AND REGUI.A,TIONS
20. I The parti.es in thelr perforoance of their obligacions
hereunder shall conform to all applicable laws, rules, regulations and
aduLnistrarive orders. This Agreenent shall be consrrued under Ehe laws
of the Stace of Nevada. This AgreemenE ls subject, t,o the approval of
any state or federal regulatorv agency havtng jurisdictlon rhereof.
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2L. ADDITIONAI DOCI'MENTS
21.1 Each party, upon reguesE of che ocher shall make,
execute and dellver any and all docunenEs reasonably required to iarple-
Eent t,he terms of this Agreement.
22. NOTICES
22.L Any notice required or penoltted hereunder shall be
deemed properly senred, glven or made lf sent by registered or certifted
nail, postage prepald, addressed to che noticed party at iEs principal
place of business to the aEEencion of rhe party's member on the Ooeracing
Commlccee. A parry nay at any tltre change lts designaElon of the person
to whom notice shall be given as hereinabove provlded.
23, ENTIRI ACREEMENT
23.1 This contract consriLuEes the entire Agreement bec'*een
Sterra Paclftc and ldaho relating to the subject oatter hereof, anC
supersedes any previous agEeemencs or understandlngs excepEing those
speciflc Project Agreements as referenced ln Sectlon 1.8.
IN WITNESS IIIIEREOF, the partles hereto have execuced this Agreenenc
ln several counLerparts effecttve the day and year first above wrlicen.
I POIIER ColeAN'lr
(
E. BR.UCE, President
ATTEST:
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6--Ed
SIERRA PACIFIC POS'ER COMPA.YT
Q*- ^l 9,.*'*M t. enEltsaN, plesidenE-
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STATE OF NEVADA
COUNTY OT WASHOE
)
)ss.
)
on chis /)Vary * ?*-tzr-, , 1978, personally appeared
before rne, a Nocary Public, JAMES E. BRUCE' President of ldaho Poner
Coupany, who acknouledged to me thaE he ocecuced lhe wlthin instrument
on behalf of Idaho Power Company.
0a*{fu/*'u.ra,-
.',,.#,',,,,,,,,::':::''::::':""'^"""(",
JCL i I i':ir'rD;' r:!'./-A
t{ol3ri Fu!:!it ' SHI: ol l'li r;'d:
T{ashoe CoutltY
My Comn$,on Exotes Oec 1 '942
STATE OF NEVADA )
)ss'
COUNTY 0F tlASItoE )
on thts /laa^y ot fu&* ,L978, personally appeared
before rle, a Notary Public, JOE L. GREI'IBA!{, President of Sierra Paciflc
Power Company, rho acknowledged ro me rhat he orecuEed the wichln
lnstrunent ou behal.i of Slerra Pacific Power Company.
Noiary Public
l.t t ; .1\..t'qry
,,-'g=]..
l,/r .. _. .*. ,
' lr -Shii'lrrt ,,/
No
My Cimmtsi:Ctl 5tL'rta( tgc n ';82
liln.({riltrt(rslr'i(r{lrru'ar6'"xtli'n{r$''rrit
E:(IiIBIT llllt
(5ee !;tnib.i Owr)*rsi-. :-p F.greenen E )
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-21-12
IDAHO POWER COMPANY
REQUEST NO.9
ATTAGHMENT NO.3
NORTH VALITY STATION OPERATING
PROCEDUE,ES CRITERIA
Befween
SIERRA PACIFIC POWER COMPANY
and
IDAIIO POWER COMPAI\TY
t
2
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5
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26
41
12
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30
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3.2.1
3.2.1
INDF.X
scoPEr FURPOSE AND TERrft oF OPCr
Scopc
Purpore rnd lsteot
Tcrra
Plmt Dcrcriprior
Vatmy Uait I ..
Valmy Unit2
EATiE
Rcspousibility
OPC Rcvier' .
Rcrisioor ...,,
Rcquesrs for Rcvlcioa.g
Approvllr
Dcvi.aioos
Dhtrlbutiou of OPC rnd Rcvirionr
PN,OIECT OWXENSMP AGREE MENT :
Hisodcal O,venricw
Conruoel Rclrdooship
Vrlny Stetiou
l..l-1ra
OwNEnEEIP oT Suuon CAPACITY;
Utrt t aod 2 Disp&b .......
Inuodrnioo
V. Accflathg Pnrcdurcs}
Rurdr
for Upkoep of r[c OPC ......
.t
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7
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4.
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1.9
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Valmy-Midpo{nt Lhc Mrirru&ffi. .
Fonrd Oruges
... l0
Mrimcoance ud Ouugp Plsnnbg ,.....
Coal C,lr Mdntcu.m rod Opcnttons .
,.. t3
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Esvlrcnrrcot&l Pnrccdon
Cowrninj Code! rnd Standads
ADMII\NSTR,ATIYE POLI CIE$ I
ud Coorolr ...
...,12,
..., l1
EAEE
t,r.l
1.7
8"3
2.
3,
4.
Budgcr FapmtionO&M Eudgct...
Capiul Budga .,..
Non-Bu{u ltcmr
3
3
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gtu92 NtrthlldmrOPC Prgt I
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7
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v ACCOUNNNC PBOCEDURES:
AEcf,roda8 CorxllilttlE EASE.15
..16
.. t7
!II Fuel hrrchescr rqd Acrounting
Frocndutt ud Dcurmimtioo of hlootbly Csd Cor Alloati*a
and Prlcioj of Errcndcd
Shutdo*a af Uniu . ..
Vrlmy Cepecity Use$ ,
Trro Untt Optretjon
IT
t8
T9
20
20
13
23
23
15
35
2i
16
26au2i
26
26
21
27
1 l,r1l.l.l
2.1 .l .2
2.1.1 ,3
2.t.2
2 t.2, r
2.1.7,.7
1. r .2.3
2.1 .3
7.1.4
2.r.5
1.t.6
7,7
2.t
7.1
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2...2
?.4.3
2.{./f
2.1.5
1,t1,6
7.1.7
2,J
Fqny
,,. 18
.,. lt
... lgCoal Coosniption by Eech
Brsc Coel Comrmptioo ,."
InrncomFuy Urrye (Cod
Formuh For lllocrtioo TrrasfcrGrdlu)of CorJ
Opeatioos rad Meioeaucc Coqr .
Uragc CbrrEr
AJlocrtioo of Coel Inwotry Orocol$ ..
luvcatory Ad.furuucu
Cod Andfca rad Melnsulru
Oc Mhc
Phyiicd bvcumdcr ,,,
Frtcdng Coqdltloat ...
MiD! Sceh Crlihruhnr
YI.
Trertlc Cr.ucn tiyrum
D,hElOil
GEI{UNAfl OH/I TYTERCOMPAH1I U $AGE :
Crlculrdoa ol Ha Omcntloo
MISCETI.AHEOUS PNOYI$IOHS :
PISE,,n.-t?
.. 2t
.. t9
l.r
2.t
7.7
3.r
APPEHIITCES:
EntEc AgrErrot
Assigomcot rod Dohgrtlor
Derrddso of taryoyUrye
Allandoo cf Intrcoupuy Urrye ud Ers Euryi, Bct*tea Uojs
Alhctiou of Mon&ly Na Ocucr*isu Ectrur Corrrymlcu
vII. I .t.l
1.2
t.3
frcg
30
,0,rCInnE l&ldinp
Appctrdh I
Appadh I
Appadr t
Appcodir
Apcodir
Appodir
Appc$du
Appndir
{
5
6
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.- Coel Pty$cd lawusy Proccdm
..,... Sr'ircbyrd Coa Allcation Fmcdum
,. . E.ramplc lncnrrrout Cag Clrvr.. . E.rltnpk B€h ftalc Pmccdun
9du9t NorthVday OFC Fqr t
I
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3
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5
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11
12
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30gl
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33
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35
North Yslm!' Statlon Opcratlng Proccdurcs Crltcrir
Io compliu:cc wit! tlrc Nonh vdny Power Phnt Pnlject Opendoo Ag.rccnrcrr(
drtdd Dcccmbsr lt. 1978, hclu0aE but not limJtcd ro Scctlosr 1.5. 1:, 3.1, E.2, S.5. and 9,!,
tba urdcrsigncd pmice bcnby cotcr iato ttc foUowing Opcrrthf Procdurcr Crlurlr ('OPC").
Ttir OPC ir rurdc [hh ,r" dly of frt,,*e-'? Tihetvccs SIERRA PACIFIC
F0tl{trtt COMPANY Gqrcisrflcr refcnEd Io rs 'sierre hdEc{), r Frfitk rriliry corporuior drdy
oryraircd and eilrtjog rccordiog to $e b*r of tbc rtarc of l,.icvrdr. r.!d IDAIIO FOWER
C0IIPANY Ocrindcr refcmd to u ldabo') r public uti$ty corporuioo duly oryanizod ud
rr,isting rccording to thc lr*r ol &s St*c of ldilo, rnd duly qualifiod rud dobg business i! tho
Stuu of Ncvada (Sletrr Peclflc ard Idrlo rru hercinrficr nfencd to u tlc 'Compuy' or
'Compmies').
& coruidcredon of &c rsutud prord$r to terh ottcr, S,rifrn Prcific ud Idabo
rgnrc to lmpkroat tfc OFC t follont:
I. 1, $COPE, PU'RPOSE, AF|D TEnM OF OPC:
I. l.l scorE
Thir OPC prnvldcs l baoir of r3recrncut bcn*ccn Stcra Prcific trd tdrlo
aguding r.bc opcrarlon oltic Nonh Vrlny Elcadc 0cocntloo Sutlos ("Sudoa'). Thc origiarl
Opcrnring Cdrcdr for tbc opntion of $c Surion olvucd J't"rty !y rdrhs ud $it ts Prci.Frc rrr
ducd Rbnury X lyl9, rld timtircd oo Agril 20, 1979. At ttE FErcs ttmc, ri& thc osta of
trro udt opcratton it h prudeot to rcvlw ud u$rtc tbc plril opcrtiog procoduu.
l. I.l Punrose aND lt{rE}rr
ftc purporc of this OFC b r0 rct font io rcsmnablc dEl^dl dl of Oe rigailicent
procerluru neletlug to thc opcndoo of ttr Stldoo- Thb docunrut rupcrxcdcs thc prcviots OPC
d-r+*l Jdy l, l986.
TDc S$tioo Qper*ing Cornmince uns originally c$bllshod hy Oe Dtmber 12,
197t, HorO Vrhy Foner Ptrut Prcjcn ('ftojcct Agrtcmc*f) baucm Slccn Plcific rnd Id$0.
Itc Opcmriog Cann$tcc conslss of r*o Mmbcr, oac darigoetd U erh putidpring oti$ry.
Thc mspoasihilithn of the Opcming Cornrnincc uu dcrribcd b Scction II.l.
I. I.T TERTI
Xt lr hcrtby ryred tbu thir OK r[sll cootinuc ln forcc fmm tlc eftccdvc dttc of
trl.ry l. 1986, uotil thc sad of t}c projcct u rct for$ in Scctioq ? ud I0f ttc Hortlr Vclmy
Pmrr Flaor Pr$cct Onnerhip Agrctmcd drcd Doclobcr 11, l9?E, r uodl tbc Compaaia thett
by amcodraent or otlcr nutual udot h rrriting rltlrthc term"
u2?n9t North Vdoy OPC Ple{
I
a,
s
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5
6
I
6
I
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11
l2
l8
14
15
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l6
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20
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21,
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26
26
21
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30
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33
34
I . T. PLANT DHSCRTPTION
I. n.l vAL}tYuxttl:
Vrlmy Unit I b r coal-lird clcctrie gcocruing unit 'L14 ttW (oornincl ilinS) u
tle Surion. whic& becilud omrnctcially opcrabk io 1981.
Tlc Vrlmy Udt t turbioc Lr o esdcrE coropoud, rwo flor cr&arst condcating,
ahc.st typc ctenrn nrbhc. T[r rurbinc Ecmrztor uait is armpluc rarcd u 254,300Iflil gms
*,tcn opcrating u t.{0*pig. 1.000'F rt thc thmnlc, rthcrting t0 I,000'Fr crtru:sdng at 1.5
inch Hg A, and ettb all icve[ itaget of fcrdrpucr bca$ng b rcrviee. Steam for r.bc rurhinc-
gtrcrltor ir pmvidcd by r boilet hrving l coatinuou radnj of 1.909,300 lt.rtr. u 3,600 pot and
1,00S'F, using pulwriud bilumhous cod u frrl.
I. Z.I V^LMY UHTI I:
Vrtmy Usit Z ir q coal-Ilred elcctric gcocraing uaL 267 lr{W 1e6gn1ral ratinf ) u
the Sutioo which opcn&s with ccnrio coromotr fcailitics ia coajuaction witi thc Vdny Uoit N0,
l. Vdmy Udt 2 bocsra commcrirlly oprablc b 19E5.
The Vrlny Uuit2 turtine h r undcu colupoud. tws tlow cri.aut cordcnsing.
nhea tlTc stcsm rurilrc. The uutirc lmcxrtor unlt h uucplilc Rtcd rt 267,0m KW grosg
rheo opcnaliug rl 2,4fr}psig, 1.000'F, rttcadagto 1.000'F. crtarsdngnt 2J inch Hg A rnd
*lrh dl rcvrn strgc$ of fi:odn'rrcr hcrring il sryicr. Stesm for tbc nrhioc.gcucmor h provtdcd
by r boilcr heving e cortiauous mtlog of l.997,600lbrtr- il 1,600 prig ud 1.005'F. nslog
ph'erircd bituminars cod rr llml
I. 3 . RE,SFONSIBILIIY FOR UPKEtrp OF Tm OPC
l. 3. t oPc REvrEw
This OFC will ht mvinwad umrlly by tbc rcspoariblc dcprrtmrou of cecb
corDP&ny.
Oo rn rnaud berir. $icrte Prslfic'r Mcrnbcr of tlre Opr*inj Com,rnincr will
cnlrdlnaic ud confinn tNr ruvicnr Fractts rod rrill mafuilah s reocrd otthc Gvicwr.
I . 3.2 R,EVI8IONS
I. 3.1.I REQUESTS r()n REYTSTOT{S
Roqucsu for rcvirioo fmru citlcr comprtry rhrll b+ rEtrt lo Sicrrr Frcific't
lvltmber of tbe Ofcraing Commktec-
I . 3.2.I ArFroYALs
A revisios to Oir OFC must bc approvcd by tlt Nonh Vrtmy Opcrating
Corunittcc-
*2ltga HrthVdryOPC Fr3r E
t
o
s
4
5
b
4t
I
I
l0
u
12
13
1{
rs
16
l7
l6
t9
20
21
g1
23
2,4
e5
26
21
28
29
a0
3l
a2
53
t. 3.I.3 DEvt^TroNs
It is tbc uodcrsnnding of the Compmics tha tbcrc ruy hc dcviaritrnr from tbsc
opcratiog procdurer crilcrie yi6 t}t rppmvrl of thc Opcruing Comminm. Howewr. ray such
dcviatioo ald tlc tcrm siall bc spcctfimlly ldcndficd to thc Opcnring Comuincc priorto agpmval
of rucn dcviuioo,
I. 3.2.{ DurnrsrmoN oF OPC rra Revrsrors
Oocc r nr{slon brs bcco ttvlcwed rnd rppmwd, Stcrn Pecilic'r tr{cmbet of rhc
Opentiog Corumiuca wili disribuu tic rtvieioEs rnd * ill cartsc 1 Ii* of rtvirions ro bc ruaintaincd
by Opcmrions Support rod u udatc tig tr'ill bc disrdburcd witb rtrh nvirioa thrr ir is$ucd.
Tbjs OFC ud rny ft,vi$ons or emrodorru tbcntot thall bc digributcd rs
follosc:
Slcrrr Pnelllc ldrho
(13 coplcs) (E mpiar)
Sierrr Pacific'r Mcmbcr of tbe Opcmtiry ftEEdtEc sbsll bc rcrpoosiUlc for Oc
pmnpt disributioo of t[is OFe. rod aty revisios oramodmnrs tauo.
II. I. PNO.TTM OWNERSEIP AGREEMENT
II. I.I ETSTORICAL OVERVTEW
On D0cc6bcf 12. 1978. tr sBItcEil sa$ rcthcd hmtct Sitrn Prcific uad
Idato wit! rrglrd to thc Lknncilg, dcdgu, cotsflcrlol' o*ocrthlp, rod oprrdoo of e corl'firud
plut ud courrDoB flci[tics oear Valmy. Humboldt Cornty, Nevada. [t wrr $tccd E 6ri tino,
tbrt tic Non[ Valmy pmjcct, which *onld ulrlmrr:ly coarl* of trlo coel-fircd gcocrafilg uniu,
would bc joiatly ownad by Siern Prcific ud ldrto, Suboequcotll, thc Public Sarvicc
Commirsioa of Nevde rnd tbe ldalo Public Utilhicc Commissiou rppmtrd 6c rgrccmcut
ber*eo tbc wo ooopadcs prrviding for cqurl omenhJp ol tbe nrc udu Ed co$Eoo frlUtjes.
Nortt Vrlmy Uuit t wos pld h comrotid op6g6gEo oo Dcccmbcr 11, 1981.
Non! VaLrny Uslt? vu plrmd ln corurncrctal opuatioo ol May 21, tg&r.
Il, l.? cot{Tr erull RELlrtoHsElr
fta contracnral rclrtiooship bctweca Siem Pacific rad ldabo h dcf:acd is thc
ProJa Agrecreot- Ttc Projctr ASTGGluo! rddcsscs rhc omsrsllg. tlc cougruajon (ilcludfurg
rebtcd finaocing. limnslng, dc*igr rnd conritnredoo of Oc Statioo), ud tlc opcrttlon of the
Surioo iocludiaj thc rules rnd mctiodology ufrertby tbc Sudoo oprrtionr qrlll bc sprrviscd by
the Opra,tir g farnmittcc.
8t1t1t92 Nor{ftvrtay OPC Plgr 6
t
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3
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5
E
1
8
$
l0
11
12
1A
1{
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t6
l7
IE
r9
20
!1
22
23
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28
27
28
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30
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33
s{
2,4
II. l. ItAr.rPosrER Pol.lCY
Il, l. t Strsnxc oF THE NonrH VrLsY Strttor
Thc srdliog of drc North Valmy SuUon is rhc ditwt responsibiUty of tlrc Sterioa
Muager. (Scr Appcndir {}, Approval ol sgncific Strtioa suffiog poticy ls nquiad by thc
Opcrrting Comruincc. Thc acoeral policy for rufflng k to providc Erlcquete rnd technrcalty
crlrupctrDt pcrsonnt[ nrcb thst thc Sution c,rn bc opnnd and rndntsid ln a retirblc ud cfficieat
ftulruer. Anoually, thc Sutlon operedng, mropoffir, rnd mriuco.tre budgctt rrc u:bmirtcd to
the Opcrari.og Corumiuee for Srrioq saflhj rcvice aad agpovrl. Addidoarlly. frrom tinn to tlmc,
ootside coutnrtors rnd vcndors ruly bI rrquirul to f,rppofi Stujon penouarl durtng rchcduhd
ouhges urd for major mastcoance acdyitics, subjer to Opetating Comrnincc rpproval. (Sec
$cctioa m- 2.9).
I I, 3 , OPERATING COI{IITITTEE
Ttc Opcritful Cornruittcc is oompriscd of ooc rpFoiotcd npnsrottirc of crch
compstrI. Thr csmrujt!.E rrrctr u sr*h tirucs rs Dry bc ryncd l0 or upon nro *ctls *rincn
nodcc by ctrhcr nrmbcr.
Tbe complcte funuioq of Lbc Opcr*iug Corumine i.r sub[rbcd ia the
Dcccrabcr 12. l9?8, O,ptruton Agmmcot foc tDe Nonh Vdroy Power Plrtt fficct.
Tbc Opcriliuf CoCIrnincc sbdl rDEEt rt kut oncc crch yeu to rpprovr thc
opcmting budgetq plut rchedulcs fol orjutcnerc+, rsd uy similu'mrfitn of xignificra* for
phnniog rnd opcra&g purposcs.
Tbc Opcratiug Commiuct is to E$$lish gcocnl poticiEs rad prrcticts to he
followcd io tbe oprratios of tbc Strdou, Tbc Opeflinl Commircc ir rtqoasiblc for pmviding
aod rppmving rll major Stuiou opntin* dccisioas. rcvicw ead rpgronl of opcntiag erpcoses.
revfc* and rppmvrl of tbc Sm*on onnual b,rdlcr" nvhs rod apprcvd of prpnelt of Stuioo
opemthg qrpcn$c& rtvbw ud aggmval of additiood divtti{:s rs n}ucd tn accsntiog, fuel cosla
schduling of pomr ouryut rnd mbcduliq olsailoo oulsgcs.
II. 4. OPERATING PHILOSOPHY
All Surkra acrivitics ur under ttc dirctrion of ttrq Pleu Mroagu. To ttrc crtEut
prrcticrbtre dl ogeruing proccdurtt ur writtcn rnd rll Sudon wort ls pLrnncd and *htdulcd ts
edvence.
TLr 'Statton ()Dcratlng Proccdums [{anud' contdns Glulfiionr dcfhing
r.lmlniqtmive ecilous nrc6$ary urd rppmvrls tlet nnut be obtrbed prior to rnitiedng rctioo for
En!, usk durin8 opcntion or drutdom cofididoffi. Thcsc ngrrhtion* conuin spocilic insrrrctiou
8J27,92 North Vdmy OPC Prrr ?
I
D,
3
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b
b
1
8
I
10
11
L2
l8
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16
16
1?
18
l9
20
2t
22
2X
24
26
GiAI
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29
s0
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25
lppllclbh for rtlioblc Sntion opcntion including, but aot llmitcd to: (l] Operailng hoccduns.
{1} operrring fficn. (1) Syttcm Dt.rripionr. md t{l Tagging Procedures.
TII. I . OWNERSIflP OT STATION CTPACIIY
Sicrn Frcific rnd lddro arc cotitlEd to ttcir 50 ptttcnt owornhip rhrrct 0f rbc.
Starjou (or uuit) ocl gcocradng cepaciry to thc etunt that $ls cegaclty ls murlly rvrihble. The
Sution. aad usit maximum coatinuous crpncity ntings end clch prrtlefr orrncnhip in tbst
csp{city is dctr-rmbed as follo*si tr) cscb BcncratiuS unit is txtcd ctrery thr* mont}s and rfter
erch rnajor owfhrul" for r perlod 0f fouf bourc aad (b) rucf tcst deEroiots what lbc u.uit or
Sutjont mar.isnum nct generatiag caraciry rcmrlly ir witi dl ooccssary auriliary equlpmeru io fuU
opcnrioo-
Wheocvcr the Strrion (or uoit) bar iu rouimum lct c.prcity rcrtrictcd lo
rcmcthing lcsr &al tlr oe-xlntum coodruoui crprciry ruing at derrmined abovq eacb Coropary
st&lt bc catitlod to irs f0 pcrcrot shsrc of thi$ lcss.r oct crprity. Tlrcsc rcsddions yill bc br$d
upoo rhe quonrly crgshy tcctr intcrim terts rr cconoalc hed.ing pcrmitr, r.od crtimtcd loed
rtducrioar ceuscd by cquipmcot fdlures rd chaogcs lo oprulog €oodhioss. Erct Cornpuy rbrll
bc rblc to dispatcb iE full ot rcrrigd orrcsUg c{podry lr it *,ishcr. withln thc coostrahu of
thE md othcr applicablc qreermu.
Ar tbc plrot opcraor. Sicm PrcifiE $ell haw tbc respouribility of dctcrmiaiog
s,hco aad ro nrhar GrrcDt thc Sutioa (or uoit) hat rcsriocd cepaciry aod rhall lmmcdiucly ootis
Ideho of rny ch.eage in Sutioo (or rrlit) capociry. A remrd a'ill bc rnadc of thc rvrilrblc. Stxior (or
unit) caprity for crb [our during 6r day, strd &L mcord ttill bc ccsl lo thc, Opcntitrg Coruuittcc
mmbel: e*h creck.
III. 7,. UNIT I AT.ID X DISPATCH
I]I.2,I IHTf,ODUCTIOII
Yalmy Udt I rod 2 $rll bc dispatched rr r total Suttoo brscd oo tht mos
cconomic Stuim opcruing lcwl wi[out jwperdi&g Strtion aliability whilc ocaing tbc qarcm
ati$ility rqufqucau of bat Slcrrr Pacific and [d$ot Systrrls. U r Compuy rquits tic
Stuioa ourpot e h tt&rcEd drr to iu ry*cru rclirbiUty rqluirumcnu, such rcdrcttoq will bc
appUrd t0 rh.( Cmpra/r sbrr" of tlc Sution outpul Erh Compuy ibsll providt r wcchly
Sadon utilizrtiom cstims& indicating Oc maximum Sution cNlrmiry thcy *ill rqulft during thu
*eck, [f r[c cotrbincd rcquirerr*nt of both Companles is lcss thm tlc rcul crpccity o[el&cr Unit
I or 3. theo by muturl rgumcaL ooc of thc uniu rnay bc sbut down for *onomic rclsorts during
th* wcctly Fc{iod, If e{rhcr Comprny ltqutaE thal bot} tralt+ 6me{a ia opctadoa thrr Comprny
E{1l7tra HonhVday OFC Page 8
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is ubtiglttd to ialc sufficient prlutr lCI nuuntufl mintnrum lortt on borh uniu $ dctcrmmod by rle
Phnt lHsnrgcr,
TtI.. 1.I D^[Y SCHEDULING
Not l.otcr thrn 3:00 p.m- Pacific Time (Standard or Day Llght Savingr) of cgch
r,orking dry. crh Compuy's dcsigortod schedulcr or dispalchcr lgnt oo r phut gcocrruag
schcduh for 6e oerl day or dryr. ScheduUoj tt on Prcific Tir*. Tte Sicne Pacific disparchcr
wrll then notify ttc Plilt opcrator of t[c e*imetcd hourly smouotlt of geaeratioo aad caprlry
dcstrcd, Such scbedulx mly thereefiqr be chnngcd by citlcr Compr.oy by glvlng rorie to thc
othcr Compmy rt lcaln. 20 minutcs prior to thc bour io srbich thc changc ir to teke, placc. If thc
transmisioo pat[ Fom tbc Surioa lo cither Compary is opeo. Gc schdulc from Bc $tatioo ro tlc
affcctcd party vrill bc ttro, unics uraogcrrot^s for u rltcrnarc patb crn bc oade. Srerioq mt
ourput wiU bc vedficd tourly to t^hc Sbnr Prcinc dspuchu. Idalro'; rba.rt of r.bc Sr.atioa
gcocmtioa u pcscbcdulod or s confinmd I lcas 20 misucr prior to thc botr ir coosi{krcd firm
fst tiat bour by Siera Pacitlc unlcsr $c plrot crpcr{cmer r foted out ]c or u cqu,ipcot
pmblcm whict Umits ldrlo'i ih"tn of tlc tou.l ptrat outp$t to r poiur shcrc ldeho'l *hcdulc
caffrot h' ru- Any dwi.uioar of Sletioo ortput from l scbcdulc will bc ,rcordcd rd be corrcctcd
in future gcmmdoo sclndulcr.
Itl. ,.3 ScrsouLe Rrrs or CEAticE
NcithcrCoofruy shdl rchcdulc r n& of clrsgc of iU lhrn of thc Sutioo nlput
grtutr tbal ruc! Company's pcrcsotsgc o( tbc rltc of ctrnge *,htch ir within tlc rbility of rhc
Sutiou to prfonn. crccp( to tic ercat tlc othcrComprny tthcduh r rac of chrngc erch ttlel tbc
rac of cbsugc of thc comblaed rbcdulc is oot gruaur than tr .bility of tlc Suttoo to pcrform.
Thc oonntl rnor.imum rerc of rhrnge ir 2 preol per miautc of geocntor nrnu plile retiag rad
3 pcrccnt per rnitutc for c.rmrgcocy, C*ocrds losd cbugcs iliU be m*Jc by St^rioo Operuss u
itr$n:ctcd by Shrn Prctfic dttpcbcra Iq erstrr cmrycocics. sysrm ard phat persouod shrll
usc &ch bca judgurrat rcgnrdloX thc rltc of chauge of plmr urrp&
III. 2.{ UxusgD CrHcrr"r (tr,rEn ro sEcTrot{ v. Accouxrrrc pnocEnunns}
A Cmprny ory sc5edule in rny hotrr, for tb purp<tc of mcctiog lu o*o syslcm
l*ads aad wbcu ltr o*l Vnlny cagociry is fulty rtriliae( aay u.ouscd cspactry of &c nbnr Compmy
in thc pmjea h sE[ hour. A Compury will not mrlc o dirca off sysrcm sala of t}e uou-scd
L'apac'ity of thc otla Corupany witDmt prior rurtrnl sgtrcmerl
If muudly egrccrl t[c uound crpriry of ooc Compuy nuy hc ut[UM by ttre
othcr Company for thc purposc of mmtlng iu bourly opcnting rEsqrre rcquimmcns. Such
orpriry shelt btr coosidercd ftrm [or thc bou,
1tLTt92 !.lsrth Yrlsy OFC Prft $
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tlrclr Compury shrll hc notificd *hcn rts unutrd caprciry is being utiUzcd by rlc
othcrCompany,
Trn-Unlt Opcrrtion:
Ubilh Comgaoies derit! tb{ both units bc lcft oo-li.m. tico cjrbcr Cornpcny rory
u.sc rhc utrulcd portioo o[ Sutioo outpul of tlc ot[er Coopsol o0 r noo.finu brsir rlllcss
othercrisc provl,M for ln thh OPC. If, for any G{soo, the Cooprny r[ich b oor rsiag iu fult
sharc o( 0rc Suion output dcsirs iU sherc bc trtmcd tcl th.rt shuc *,ill be mrde rvailabh to it
witldtr tbc nmp constraiots.
If ooc Compray dcslrtt rs shlrG of thc Sutjon bc shut dom but thc othcr occds
both uuis lcfr oa-linq Oes tle Compuy shicb Dcds bot! uaju tcfl ol.linc rust trte enough
gcncrarioo to ratintti! oddmum loadiog oo bottr uoits,
lll. 1.5 PL^lrr Oprnr,nnc CAlAcmy
Tbc plrnt opcnuor rbrll prompdy uodry Skm Prdfic dirprrcbcn who rlll
pmoptly inforu ldrlo disprrcbcs of rny forcscc$lc, impadiag or cerScrcy cbarye tB
opcnting lida or opcrrlng caprtr, of thc Statioo. TLc Comprnier rtrll thranpoo rortn ray
occcssrry ctrogcr h $t mpwrirc Seandoo schcdulcr to confotn n:ch schcduhr to thcir
ltspcctivc pcnrtrtrss of nrch rhro3cd opntilg limfu rod crp*rty.
lII. 2.6 Corrrrou EnnoR
Tba plau opcruorrhall ntbjcct to uarhcdr.tlcd out+cr or opentilg limltatiols.
opcnilE tlc Strtioo rs tctcdulcd by thc Co,npuier. TLe plan opcmor will rncupt to hold
dcviuioas ftom rchedula to r minlmurn rd will rdjust for roy dcrhdos r! Eoco rr poostblc
uadcr [iEt coadhioar.
Any tmit mnuol crmrfr0c Vrhy uaffs wil! bc ilchrdcd lD Slffrr Frcific Powt
Cornpro/e coaml tcr
Ul. 1,"7 R.EcorDs
Thc plrat opcnrtor shdl Lrtp rdcquue rtmrds of phal opetrtiool. imludiog
rtcor(s rcrry to rtftcct th offrcicocl of yoject operarioo s6d mrintenancc prtglrrrrr, esd I0
rccord gtnerdo of pourer, eld Ebdl kcc.p othcr records il ttc requttt of cltlcr Company u
rr4uirEd by nguhory utboritlcs. All rcods shd.! bc madc rvailablc for inrfectioo by ttc
Comproicr s dedrc4 ead copics shall bc fuilishcd to thc Compaues ls mqucucd.
TII. I.f VTLM?,MTDPoINT Ltr{E IITATTTTEHAHCE
Wbrn praa'ticabl1 Vdmy-Ml4polar liuc mdrt!trens for ottcr tbrn cnrcqcnciu
wtlt bc tchcdulcd tr lcrs me ctrL is rdvEnDE,
N27tgz Horth Ve1ay OPC Fqr l0
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III. 3,9 FoncED OutAces
In the cvcnt o( an cm:rsenty oltrgc, or I rcductioo In Sutjon crprclty Sitnr
Prilie shell lnmcdiucly ootify [dotro u to t]rc cnpocity loct r.ud iu crpccrcd durariorr. tud rhall
tlkc such srcpo, lncluding Oc usc of prruium riruc or ouridt coltfirctsrs, ss rBBy bc rcquind ro
rtturn tic Sutioo to mttinuffir cepacity rs !o{ro x is ttrsosebty poc*ihlt urlcsr munrally agmd ro
othcrc,isc.
III. 3. I\,TAIIYTENT,NCE AITD OUTAGE PLANNING
Recogoiriag ttrc iuporutrce of mainreoenct ud outrgs pluoiog to tbe
Siena Pacific and ldaho systculx. Sicrra Prific sill subnit prtor to Mry I of crh yeer, lts
proposcd rsoual mlitrtcu.uc€ aad ouuge grlqnr rnd s{bedulrs for arch unit u Valmy for &e
foUowing yter to tle Opcnting Corunrir*. Tbc Opcratial Commincc rill rwicr ud rpproue
thcr plras rnd scbctlulcs io tlc r&mc min&er rnd u tbc mmc tirrc Ult &c aanual budtet tt
rcvlc*,ed rad rppmved rs rcquirtd in Sccioo 5 o( the 'Agtrxcot for t[e Opsrdoo of ttc North
Va1my Po,wcr Plrn Pnojttt,'drtcd Dcccmbs 12. lylt.
Thc NonX Vrlny uuirtcs.ilEcc lud mtlgc planning philnrophy, in lwognitioo of
|bE hJSh co$ Of dof,,tr dE- k tn mrirnhc rvrilrbiliry 15.l minimir forcd oulngc trtlt"
Anticiprrcd ouugtc rn planncd ustog octwurt dirgrrms (arn u CPM or PERT)
to mlsimizc total drc hvolvcd rld to locsit poinu whcsr additiouel rtctrurcEs (bcyood tlo*
mnndly syritrbh s rtc $edor) may br pmftably czuploycd flacludhg pnruium tiruc ud otlsidc
coorrrcton) to rtduce thc durtiao rad, tht=fotr. tio tutrl cmt of thc outrgc palcss mutually
lgrccd by both Omgaalcs to do ilhcnrirc.
Tbc obiccti'.rs of urilusecc. planning ue:
(l) To uct rtrpt errG lttrpficd by leu rtd r9ptt'hlc lnsranct curhmi
(2) To avoid prforming urinteuuc* os r sririr-ouly bui.r or oo a rlgidriru$h rad
(3) ffiHiffi,trHHrffirtriffi.ll ffi,,t*ffiffi:
tE ctrl*ocy o{opcmlon.
III. 4. COAL CAR MAINIENANCE AI\TO OPERATIONS
Tlc Shrn PcciEc Powur hoductiou f,lepartrncnt is rcspoosibb for tkvcloghg
aad majlutntng procrduru rddmssing EorI car rosinrcoa.ucr rod opcretioor. Tbc Operotioos
Support Dcpermem Mnouol au:tntly scts fortb thc folJowing proccdurts:
A. Acctfxsnc of Railrqrd Rcfuircd Cod CrrB. Co,&l Sflh CalibruiooC. G-E. Rril C:rCootnctD. Coal InwotoryE. Rril Cu DenilrrcorF. Coal Pilc Inrautory
UE,TllL llqthVdmy OFC Frjr 11
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III. 5,
G. Dooc Sfem HaiounanccH. Coal Cu Rewcighingl. Trestle Camcm Opcm.ioasJ, Froaco CoaJ l{aadliagt(. Rdlcu Fleu ltlainuome MrnrgrflEnt
SATETY Pa'OGRAM
ls ucordascc uiti Sicrra Pacific's *Hrodbooi of Srfcty Ruter' Pur [II.
Ccucnriou Plrot Ruks, Siem P*tfic tr coruuiccd to u cfrcctir+ salcty prognm that wt[ cornply
*it! all laws. rulcs. ud cguttionr pmmulgetad by govcmlng bo<lies. and roorc imporuttly. to
achi$.irg the lowctt iEdn$ri|l hjury rac 0oslorbh,
Thc kly puu of tlc orntut prog:lrr &rr:
A. Strict cnforttrrot of sfcty rutcr lmludinS appofrirc di*iplinry rction
B. H#Htrtf uc ptanr s.rfery corcmtucc.C. Assigorcot of higtr pnonty to plsrt srf*y wort rcgucss.D. SGam pla.ot ftm protcction u dissnsscd in Slcrra Prcifict Policy r.sd
Procedurca Manual Scctioo 10J.35.
III. 6. TEAININC
Sicrn Pacific shall msiotsin an ongoing uainisl pro$'irn for rtcam plaat
Opcilor3. 11fu g{nin8 r}rll lashldc boti cgsrrooo rnd on*thc-job tniniog rad ir Oe
mpondbiltry d Uc Ptrat Mroegu.
Ttc rcspc rad cootat of Oe Nonl Vrlnry rainiug pdogram ls dctiacd iu rh!
Siern PacifiCr Opcruiooe SryFort Deprrmot Maourl nodcrtc eccioo titld 'Trainiog for Scrm
Flut Opcrercr.-
IIT. 7 . SgCI,rRrrY
Stadon soorrity slrll be maiauined to rccodr.ocr rith Slcna Pacific'r scr"rrrity
prooedr:rrr. Specific scority rtquirtocou fm &c North \ralmy Strtion rrc dcfined in Sicm
Pociflc'r'Scorlty Ptoccdunr Manual.'
III. E. EMYTR.ONI{E TTAL PROTECTIOH
I h tbc Componiec' polir,y to mmply tlrlly with dl rppUcablc hdcrd rnd unc
rulcr sod rcFlrdms rod, furthr. (o eoopcfitc fuUy rith dl conccrucd rgcnrler to rssurt
erinirnqjp ctrvirwrDtd hupg hom ptmt opcretiooc.
Tbc Surdoo coviroEorcoul ooapliurcc proccdums ffg tr.,rittuu, la placc, r-od
ru'tlrd qurrtErly by Sierrr Prific! Envtonroend Allain DaSronmcrt.
Io rdditJoo, thc Eovimnmcotrl Altrin Drpartrncat cootmls rod updnrs ttre
'Shrra Pccific Emicsiou ldeotificuiori rad Coutrcl Plaa' mcrud ryhich eddrcsscs rtrtioo
covirurunental compliancc roquircroeurr.
E/',ll?/92 NcttrVduyOPC Prrr t1
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Itt.9.GO}TN.MNG CODES AND STAND^RDS
Spadft eodt* rDd itmdl:d* fi,nftflly peil.uning to tbc $luior irrlrrdc
A. ii$oorl Borrd laspoctioo CodcE. ASME Boilcr iltd PrEssIn Vesrl CodcC. Nlrioorl Fw Coda Nuiund Fur Pmtstioo AssociltiooD. AI.ISUASME B 3l .l Po*cr Pipinj CodcE. Stan of Ncvdl Boilcr rnd Prcssurr Vcsd Rulcs rnd Ecgul*ionr
IV. ADMINTSTBATIVE POLICIES
IV. I. BUDGET PNEP^R^TION AND CONTBOLS
[V, [, I OAM EUDGET
A.uy dcpertmcot of eithcr Cooploy vLict roticlpanr clrjla3 Ey c.r$cffe! to
Vlhy FERC rcefioE nutu rubuit tbclr hrllAr ffrIsf ocsdoor oolyl to S:icra Prll*c'r Joinr
Frdlidcr Acculltilg. loirt FEilitb Ac€orrlril3 rtr$is U tlo @rumf dar rd Fclcrt r
totrl Vrlcy budga to ttc VrIuy Ogcruiry Commlrtca for rpgrunl rr taqulrcd io tlc 'Opcadaj
A3fGi',r.pt' (R&r to Scaion 5.)
IV. 1.1 Clrrrlr Bupcnr
On or bcfom ScgtcEDcr lu of crc! crlaader yter, Skm PrUlc ud ld"ho
PrcplrG rJoint budra for mrjor srpitrl crpcodituror. Dc{rilGd cgtiru for dl propwd clDid
nddidnur to tlr St{im rn upplld to SEm Frific rad tdrho rlrugeril pim to Aproyd by
Uc OPcndry (h?sn'xt '.
IV. I.I HOH.ITJDGET ITEH8
Ho{udja crpodituru ous Dc nrbottted to tlc Ogcndaj Comminc for
rpps!"rl.
IV. 2. PROCI'REMENT Ah'D WAREf,oUSINC
ftoarcorot lr b rccordracr rlti Slcm Prclllc'l furclrctng Dcprnuaut
Poticico rod Roeduttr- drrd Oaobcr l, l9ta, or ryprmrcd revisloor thfic{rf.
.-*utbuldaf b b rocordnocc rit! Sirm Prcific'r iloreilory Mul3emcot
Polidcr rrd hoeGmr Mrtrud.'c rypmrcd mvirioos tltcof.
Rerrldonr to Pnutrtruu or Srthousiaj poticirx or proedurcc rr:, nbruitud to
tb O4enthg Con qiua fc rpgmnl
8/r?/sr North TrIoT OPC Pra tl
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IV. 3. RECOROSRETEHTTONPROGRAM
A formd Rccord Bctentioo Schduh, .Tesigrrcd to lucct both Sutiffi urd c+rporarc
oecdr ac nell u agulaory requirtmorr is on 6lc vith Sicm hcilic oorpofilrc urhivcs,
All rccqrds st reuined il thc Sutloa for orc crlcuder yrer, Tbcy ue rtrcn
d.ispe{cd of orsortd io thc gthiver for vuytng pctiods h qordrucc wlt! tbc rucotioo scfrodub,
The mod mtcotlon rchcduh rball couform to FERC ttqulrcroces rod r.uy
odditiooal roquirtuns lmp@d hy eitbcr Sicm hrtBc orldalao,
Fcdcnl lew diqaes mcod c&EtJoB rtquireocns for po*cr plilLr h lS CFR
l35J Soctloo 30e 3(h. 3la rad follorirg. Is rdditioo. $hrra Priflc mrionior g rccorCs
ntcotion hrndbook cttitld 'Sicrrr PrEific Rocor& Rcrcntim Scbcdrh Hrndboot"l
IV. 4. STATION REFORTS
Daily reporu mrcrhg Strtioo opration rc mrinuiacd rr th! dtc rad coodg of
telora rs Us6d tnlow;
l. Scam Elodric Uuit Monuocc Wort Shcct2. TUrtdB Dtily LoC3. BuihrDru1yLog4. Flut Eqlpocat Drily Log5. Cberuicel Usqe Detly tog6, WucrTreaunent Syem Lu Scnice l-og1. ly{rintcnoce Wo* 0r&rs Dnitv Rcpstt.' Otffi Drily Suumry Rcpon9.' Rcpon of Crprbility Rccriaioo
[rTo bc scat to tdrho drily.l
Moothly reportr rrr tcnt to tlr CruErl,l Muugcr. Forrcr Producrion ud to
mcmbcrs of tic Opcntiaf Committoc" Ttrlsc lmludc Gports oo corl wsrcr trcsun€r( ud
opentiot ud saintcaaocc. Tte corl ruatn imludcs cnd iawntory, cod turo( rvcrrgc hcet
motral oil srllir cortEut. Tbc crsur upilmcfi $pon Lmludca bolEil rmr ud coo[Et rilEr
rnrlyrcr, chrrnicdx sddcd. dcmiocnliu opertioa suurnsry rnd wcll opentioE- ir born ud
edloor, Thc opcration rcd meioururo lrpods bcltrdc ttc ddly bcg mrcc forcth ualr sunmrry
of mdntca,aoor Ffrtr4 rad emmary of phnr opcrtieal
Ib followins Ud rcpctt ot $wt to tlc Opcratiag Cornratttor rod A*otrntiog
Cornminrcrffi:
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CE:nrrat l+n nnd I nte ryhangr
l, Gross Gtocration?. Stuion Usc3, Frrgy [htircrEiJ to ld$o u [ntcrconnccdoo4. Dcr*il of [,,o$es fthis rlll bc dcpcudent oo loss ,ccouDi.iBg pcoccdu,rc
csublishcd^)5, Mu.imuru Dcmaods og Plant (60 mhracsl6. Plrn Hsurs Coaoescd to lnad Anrrrdly
7 . 080 Daily Suurarry Rcpon by Tclcpbonc[. NERC Ortagc Listing Rcpol9, S/ekly Unir Cryabiliry tttsictioo Rcport
F'trl Du.u
I , CorJ Rccch,rd2, Cml Lovenrmy Reporu7, Coal Eumcd1. CoaI Cos Remn5. Oil hgEbasca'6. Oil Inrcotory Rrpon7, Oil BurDad8. Pcrlodh l"aborrory Aldytis of Frrlr
Frrel .Qht{rlng fram Remrtr
l. hrlgbr CosuI. Equipmm Mainruoce Cos Repqr3. Eguipruat Lrcc Coss (if appliiblc)1. Equiprocor lnspcttim Rcporrs5. Shippins lases
Ogcradnn end trlnlntr'nrlm FrEnntcs Rc0rrrs
1. Opcretioo rad Mrhtcaasru Erpnnrc Moottrly by FERC Acooum Numbtr.
Cq&[uI ExFndit,rc Rcpofls
I. Momhly hoiffi Rcporrs for Crpitel Expcodiuues
TDs followiog U$cd Eports rre gcncrarcd ll. !,hc Yrlruy Etmiou rod u= pmvidcd
to tic Opctadng Comnlrrc rld AccuJodEI Cornmlmc rmnbcrs un{o ru$Est"
Monthly
l.
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6.
7.
E.
9.
10.
Safay Mc+ing Rcgrrr
REI OrI Inrcntry
Coal tnrcntory
C.*sUioo Rcpon
Cosl Cos Re1nnVchichTir ShfrrRepon
Pc{ry Cssh Repn
Ol$-Vl and Caplhl Budgct Rcpon
Coal Qualiry anl Quantiry Rcporr
lvlannger's Monthly Rc prt
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ElqmtlX
l . Tirm Sh*u
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l. Yrlmy Pbnt Rcport
Orsrrcrty
l. Qpancdy Emissioos Rcpon2- Manrye/r Qurtcrly Report
IuttuniellI. Upra Brcatdoc/o Rcpsrt2. tuDbi{rotAirslodmDsr3. Exrccr Erolssioor Rcpon
Sp6-id ttFofis oo Elpo rad ant4cs rrc pmvided to tbc lrcrt'fir of tlc Opcn&f
Conmiuec &mrr3hth Slcm P.dfic trEabcr,
V. ACCOUNTING PROCEDUtrES:
V. I. ACCO1INTINGCOIUIIITTEE
Tbc Accquting Comnlrrc $$ cotsbllsbod nodcr Srgim 9.1 of ttc Cou*uaioo
Agrccrucul ard *,itr ccotlauc itr Jurisdidm duriug ttc operrths padd of tbo $tr,tloa, Tba
committcc cunsi*s sf ooa @rlbcr frorn *f comp*ny.
l!6 /56qrrqring Comdort hr* th. fo"llo*,inj ot{ceiu;
A. To *$tirb, rlyies, rad mdrUin &e Surioo lccounrtng rnd ruditiag
proccdurGq policirx rnd pmgrrms. TUs includa rtl budgpt frnmcc. aDdlff mqdrcffiols.
B. Torruur compliancc *'ith rtgnliuory uuuting rcquitrmr.
C. To pmvidc uouating Ualsoo bctwera dl iffiohrEd in ttc coostructtoo rnd
opratioo of ttt projoo.
Acootruttrg proeturs ud pldelilcr ut outlinod b 'Arcouuiry Gridcllu for
tlc Opcndm dtlc Nortl Vrkny Psrcr Ptsot Prsirt Uoi$ No. I rryt No. I' ehich ir iucMcd
rs Appcodir 2"
V . Z. FUEL PURCILTSES AND ACCOUNTTNG
Sdghma$cr enlficars ild frctglrt bills rm rcccirrd u th Statiou wi& etc[ csal
deliwry. l,nd qre ttc ofricial uolificuior l0 thc Flart MrsrSer of $e rrritrl of tlu dclivcry.
Wclghmxur crrtificuec rnd frcight bills fot cach corl dclivery rn wriflcd rnd scut to Sicrra
PaciEc'r Accounts Paycblc Dcpuutttt tl tfild rs fiGy an mcaittd u tha Surioo,
Reoa
u27t82 Ho*h Vrlny OFC P.a! t8
t
2
3
4
6
6
1
8I
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Actounuuj tr dam in xcordutc with opcntinj rccounti[l guidcliucr. er
tpecificd io thc Oprtiag Ajrccmcal. Secth[ .l rnd the OK, Thcsc SuidcUnct rrr disnlr,scd in
Lbe 'Accountiog Orddalics for thc OFerador 0f thr Nunh vrlmy Powcr Plur Projccr Unis Nu, I
ud 2' whlch k iactudcd u Appendi.r, ?.
Thc drnhisra$on rnd m,mri.n3 of tlc ptrcirg of cool ir t&o Compsdcs' rbt ts
of thc corl invcntory rhlll bc rdjrstcd moothly u rct foil.h io tlc 'Acrouoilng Guidclincs.'
Appodir l.
v. 1,1 PtocEDufE For DETEmirlrATror{ or MorrtTtll.y CoAL Cosr
ALLOCATIOT{ AHD PNTqATG OF EXTEIiDES VAL*IY CETTCTTI
USACE (sEE APrEirDfi I FOR DEn,lftTroN OF TEEMS)
Y. 3,1.1 suurpowH oF uHtrs
Edcr Compuy hr.r thG prtrojrtivr, u rry tim, to roquail thlt lu hrlf of tha
pEat'r sreilabh ceprity bc rhudorrs. llowcwr. Lc ttquc*ing Coupr$y tary do ro only with
tbc iaust fui &c tbutdora br for trr;ffi of o* lan Orn rctcr (7) dryr ('$tudom').Eroept
u rpcrilied bclor. r rhutdonu of tlG $rtim by r Coopray rill bc ucrtcd u e pcrid of tic
rhrn thc Stadon 16,,rtrv$t$h for tll Coopta/r ucc ead rs e resull Oel Cmpuy rill o0r bc
chlrycd oo-lord ccu f6 tll priod.
U tlc rcquring Compay ca& e rtutdonu bcforc thr rctra (D dry ojdnum ir
rctbcd. tbo tIE rirr pcrlod rlII lot bc coosilcrcd r ebudoru rod thrt Cmguy will bt cbrrgcd
itr rtrn of UE Sudoo'r m-lod co$r for lh roul aum,ber sf bqrrr fruE 6G bagisning 0f tlc
mqurqcd rhrdorru to tlc dme thrt eoagy L fir *tatuEd ud rEcdrd bf rlr Compcny.
A.ftsr oos Comprny ltqucsu r &u:rlorn ons or EorG of [!c ulitl wi[ bc
pLyrically sbut dorro cdy U ouuelly rylcd upoa. If ai6et uait lt fbntally r[ut doqa u r
rcsult of tlc rtqucst rnd tbc rtrlurstor dccidcr rc cod ti. rtffilo*t. tbc requrrtor Eust givr tbc
ulerComprny oodca of lE IficBt
U ttc rcqucrting Comproy ctdr $c rtudorro eftcr tlc ltridrl $rcu (7) dry
mirdnrum bu bcco rcrtcd, th:
(t) If 6c rlutdo*n h caded duc to l! rElergcocy oB iu rytun. tteo tbc
rcqrsdn3 Coupny *ill ls bc cbrned o+loed corts fsr tbc entin friod
of tLutdoril. or
P) tl tlc rhutdovs ir cr&d duc to rtrlsoos other thm ur ErETBesc;r oo iu
tyttcrq tlcu thc rcqucetlug Cornpany will pay iu rhuc of tbc oo-lold
chrrgcr for thc pttviour fi're (5) dryr' scrvlcc bour nrinru Oc houn of
dvnnm Doticc tocod thc rhudom. ltcruforc, if tha ruprrdng Compmy
codc tbe rhutdoqrn ud wnau encrgy &r sooo ls posiblc" ttet Comp*nywill he cotitlcd to rcccivc iu futl percreotrge shgft of thc Stmion outp{Il
wrt}tu nreoty-farr (24) boun afirr tifil givrug ootic (s spccificd hcrtro)
Eod wrll bc cberyud for iu rbrc of thc Sraion'r oo-lod cour for tlc truI
nun$cr of hogn cdcubtEd u follov*: lXO horn mlaur thc ntrmbcr of
boun hrtnrcco &c raqutrria3 Comptay'r fint Botlac to crd rd thc
Et21t92 Nrth Vdrn, OFC Pr|? 1?
1l
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34
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shutdoc,n nnd thu urne thet anq&y rs first schcdulcd and receivsj hy thrt
Comprny. lf thc rcqucsting Cornpany giv'cs fivc {5) drys {lX0 hourr)
advelcc notictr thrt lhcy intcnd to cnd thc shutdonn. thcy *ill not bc
chrgul r+load costs for uhar fiw (5) day pcrlod.
V. l. 1.1.1 T}ryo UHIT OPEnrrlox
If a Cumpaay has rcquestcd ltrilt iu abrm of thc ptr.or bc ebudosn" bur for
rharvcr rHlliou both udts nrc hpt on'lioc" tlc rcquesto/r full pcrccottgc sharc of tbc Sutioo wttl
be aveilablc to h *ittrrn tweaty-four (2a) houn rficr firs rqtreting tbe shutdowB to erd.
lf tbcrr is en cmergcncy (cmcrgcocy meem lms of rtsourccs or tnermissioD
bcyood Oe conool of tbc rffected Company affccting iu &iliry lo lcnt firm obligrdons, rcc
fupetdix I I on ttrc part of tle rcqucrdng Company, or if murually lgred to il thc time, thc
nqusorsbdl bc eotitlcd to mhdulc sd i6cciw imilxliilGly, ray urucd cspeity in tbc Stdou
lcss any unrrsctl crpaciry bclog utiliaod bI &e othcr Compary for splaaiag ilrcr'ile; subjctt to ttry
rarnp mil rtsuiajoos b cffccr 8I &c drrd. IB rddiLiou, tbc Coopuny whict is utiuzing tlc
rcqucsro/r sDffc of tIc Statiou will immcdimll utc c*sooable flrpa ne6$&ry to nlcEsc thr
rcqucsto/r sb.['E ol tbc Su$on brct to l:. [a oo i!$ltre, witl r,ay po*tiou of tbc mquesrot'r futl
percsetasc rhare of Oe Stationr rvallrblc crprcity bc ffilblcld fmu iE trt6 ltr r Fcrtod of oqc
&ea nrcoty.fmr (24) houm efirr l-rm giviry nodcc of its drsire to cod tbo sbutdows esd Hbc
cdel8y ftoo tbc Stetion.
V. 2,l.L2 OFE UNrr OPEmtroN
U r rrdt hrr bccn phyalcelly rhut dovn drx to r Gqusrt (or rhmdorro by ci6rr
Comprny ttrcn ttc rtquc$or rhrll bo cu,itlcd to rctrodnh ud rxcivr ctcrtil from iu pcrceDngc
shem of $c Strdoq oaly rs it bccoocs rvril$h during the rrt-up of ttc ofi-lioc unit, providql,
howcur. tbc mgrrcstor rhrll be cntitlcd to tcciue tB full pcrrElttsE shrt of lhc Strdou's rvzihbh
crpuiry wklln mrnry-four (2{) hours rftcr firu giving oodnc to erd tic strrdowu,
v. 1.1.1.3 onmn sBurDorvr{ REQUr*El'tEFtrs
At ao time during thc twenty-four bortr ped,od followiag I rcqucst to cld I
rbutdoarn rhdl Oc rm-rqucsthg Comprny bc rcqutrcd m curuil lod or imur highcr €osts iu
o{dErto rna tb dtmrnd of tbc nqucstot.
Eduriag r rhudowr. thc non-roqucsting Comprny chm*s to kcep botl unis in
rcrvir-. rto Eqrrstodr portioo rill sdll bc cooridercrJ rhut do*r for Lhc purposcs of rcriguing
no-losd cqsts. If th Stedoa ir ftqucsud to bc $ut donm. ud tlc othcr Compury choos*r to Lcep
at lcast gsc unil io scrr.icc. tlt Compury bspin8 ttrt unl(s) in scrvi.cc is rncpoosiblc for qolosd
cosu fo dl opcratJng uai& a$d rh,rll baw thc crpmrfy rvaihbk for iu usc until tlt othcr Cornfaoy
gi'aes noticc to end thc shutdown rad bcglns to schedulc c*d ttccivc GtrErgy lo accorducc wit}
Scctlonr V, ?.1,1, v.?.1.[.I, rnd V, 2.1.1.!,.
9/1/S2 Hsrth Vdqy OPC Prp 18
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5
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L2
t3
l4
l5
16
1?
I8
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20
21
22
2g
2t
26,6
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29
30
3t
32
g3
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3S36
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38
v . 3 " l.!, corr cousunlrtroil Br E,rcn Pr ntr'
v. 2.l.I.l EASE cO*r. cOFiSUMprrON
Tbc [oUo*irtg dlscttsstort concerns only thc $uount of coal cootumcd by each
Coopaay in itc ocrB portior of Vdmy" Tbc araoult of cod coosurocd by onc Conrpray iu rlc
uirrCompany'l ponion of Velmy it rddrc$rcd h Scction V. 2,t,1.1 ttercompnny Usagc,'
Elch unit'r rnosthly cod consumpiot is rllocrrcd bascd upon r[c sururr.atjon of
erch Compoay'r hotrly Bru coonrmptioo, During timcs of Statioa ebutdow'lr. Oc horrly Bru
cnnsunpdon wiltr oqurl um for the re4rcrtor, Us unit ls pbylicrlly rhurdorn. tle Bru rllocadoo
for both Comprnict vill bc rcrp. Ttc botrly Bru consrrmption is cstiroatcd bascd upou $e bant
mtc curve io $e fcrm:
Y=AJ(l+BX2+CX+D
Y = Bruftr, Consumcd
X = Megr*rr l.ord
AB.qD=GrvcCrfficicou
Qrrmntly, tbc o,rrt cmfrlcicrs uc daflnod u follo*t:
A. 13.2174715036 (Untt lh l5:[730812ti rudt 2]
B =.1.740,4225261638 (tJuit l): 1,1132??1714770 (Unir t)
C = t.olS,16O19865592tj (Unit l): 8.E92.408:5791199E3 (Urlr 2!
D . 286.651J15,6623620390 (Uuit t); 337:93.3U.6652663310 (Uutu e)
Bctwo 5 rtrd t2 montb rftrrmoBlction of coosuucdon rnd inftial opcradoo of
e uolr ra fibrtriusd ASME frfC 6.t prfonuracc trg b cooduacd a0 6s unil to detcrnioc rcaral
oEil hcar rarc ts opcrurtng condidmr. Itlrtrffrr, rtrfl ir ri;rD cyGry 6ve ycus or irndiatcly dicr
ray rlelr modlfic*tioo or opanEag ctmgc shich could stgaificandy rltar Os uqit bclt nilr rs
dcarmincd by tbs Opcmtiag Commiue. U oeccsuy. with Oc epprovd of tic Opcruiug
CorurnJttrr, thc coctEdros Nrt shrqsod o oomrpoud to rbc scsulrs of tHc tcss.
Thc bauty Bur consmptton is cdmucd lr folloral
, ltoudy Eur Coosrupu,oo . aU:Ut:-UtqSrSUt0:jt
L
Wt rc X. hrurly r6t rvEfirtc load tor crh Compenl,, eod A B, q and D art
tlc nm'ecffitr prtviourlydc6!d lorcach u*it^
Morhly Enr Coosum6ioo - Ttc rurumailoo of horuly Etu coosmpdoo dau for
cach Compray.
ldnho Powsr Compuy Cosl Conrumpdon .TC r Ianr
SBm*ltstu*tCgtu
Shrra Prtfic Corl Consursptioo ,. TC - LE tu
SBru*IBru+ICBtu
9ttlg?NsrthVrtry OFC Prrt l9
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3
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5
6
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tltclc: TC . Totrl Ma$rrtrl Cod Corcumptioo
SBnr - Sicnr Prifrc Moorlly Bor Consumprion
IBru . Idnhs Monthly Etu Coarurr6loo
lCgru . [qcrcuoprny Moulrly Btu Consrmpttoa
v. 1,1,2.2 lrrruncoupA!{y uilog (IHTErco$t?aHy Eru consuhtpttoN}
U ci&cr Comprny docr lol utitire iu fuU thrrc of tlc arfipur rnd thc o&cr
Compury dcrlrtr Io utc thlr uourod potdoc t[c too-utJlldnj Company ilrd! rllor rtc o{brr to
$tc tbc uourcd output lu rcuorduce riti Scctlourlll,2-4., V.2,1.1, V,2,1.1,1, md
V,2,1.1.1. A Btu Coosmgioo lr &aamlpcd rhu rill chugc lle utlldn3 Compnny for firl
consrmd ia tf,c ollcr Coupra/r capsity.
Tbc [nrcrcoroplsy Btu Conrunptton E bucd on tbc rwmgc plut lncamroul
fitl vduc on rn larly bsir.
Tbc hourty lfilcrtomfscy Btu Co*rumpdoa ts dctcrrdrcd by u*h3 rhc foUo*bg
fonulr
(A(X+Y+pl + B(X+Y+ZF + C(X+Y+E} +D) -
(A(X+IP + B0(+# + C(X+YI +D)
9/bero: & B, q D -Otrt,rCocffrcieau
XaPrtrAhi.idlt{W
Y,FufiyB Initid ['lW
Z . lrf$tl Produccrl by Onc P.rry io tir Ottrrr Puty'r Ponloa ol
vrbil,
All coopomu rn fc cittcr or bah udu.
Ttc rooothly latarcoopny Btu Coosrmptioa Lr caladsod thmugh thc surunuioo
y Btu compoocnts. Tbis roootbly Inurconrpray Bru Couumpioo is coovenod to toBr
follornng fmouluof thc horst
througb lh
If.ntu
SBn +lBnr*lCB*
Cmgotcau dcfloel h Sccioa V.2,,1-2,.1
v. l.l.?., CoAL AH,ocAilotr AlrD ExrHtLE
Ar tbc cad of ecb mooth. tbc $nouot of esd cornrrned by crct of rtc Vrlmy
unjtr b dlviffi inm four lc(iloot: cocl tscd by Siem Pufic in Slcna Pr1ltrc'r ponloa of Vrlmy.
corl r,rscd by ldrio Popcr Compuy iu tdrlo Porrlr ponioo of Valmy, cod sttd bf Sicrrr
Prciftc in lrlilo Fo*rr Compru/r ponlor of Yrlmy, rnd corl urcd by tddto Porq ln Sbnr
lspxsarnpuy UnEc CarI Coosmptioo =
Totel Measurcd Cod Coosunptlon e
i/2?/$t North Vdoy OFC P4u t0
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3
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12
18
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21
25
36
27
28
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30
31
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33
8n1tgt North Vdury OPC Pagu 1l
Pacific's purtioo of Vilmy. Tht rllocation ir bascd upon l rnnnlhly summatiotr of hourly Bru
consumptjoa for ttcsc four cdcgori*.
Unlt 1:
Tbc unit wu in scrvloc for 7*{ bours.. A rotal of JQ769. I 5 tous of cosl rlf consrmcd,
' For 330 horrn 'A" produood 129 MW. iB' producrd 50 i{W, r.qd 'A"
produccd t0l-,ftr io T'sn poaioo of Vdmy.
. For 414 hsurs"'A'ptoduccd I?9MIV, "B'pmduccd Olr'f\f,t. rod'A'
produccd l0 l,tW ia B's' po*iou of Vdmy. Of thc$c 414 Lourr, 24O houn
qualify rs *Shudoruo'hous for'8.". ?' [rd lu bntf of thc Vrhuy Strtldu rhuldoqnr fmm Hor*rmhr ti Orough
Droamhr I0-
Cngl Allncadon fnr Unlt Nqmhcr One
A. htccoroprayBuCoasmptiou
For csh of thp 310 horJfi c&Grt E produccd 50 l.f$' h lu owu pordou of Uuit
Numbetom,6c IntcrcooFry Bft Coarumptioo b crh,rlocd c folb{fi:
'A'[' Btr$ couslrood ln gcocariog l0 MW ar t!c$ conditisos oquqb;
(A(Ire+5h10)3 +B(lt9P +qltl) + D)-
(A(129+50F + B(I?9f + C{l?9) + D)
= 87.1?{IJ15 Bur/hr.
Fsr c*h 0f 6c 414 boun *[ea T' pmdrcod 0 [,fW ln iu orra pmdoo of Unit
Nunbcr Ooc. tbc Iotarompary Bnr Coonrmtsoo ir cdgrlacd u follo*tt
"t*t'Btrs constnrcd lo 3roemtint l0 Lflil il rhc conditious oquls:
(Atl29+10)3 + B(139P + Ql39) + D) -
(A( 129)3 + B(129F + C(t19) + D)
.8L605312 Brusrtr.
?lc Etrl Intrrrorrprny Btr Coasump:ioa for Uuit Numbcr Ouc for Dcctmber
qualr:
330 houn X tr,1?0,315 BtuVhour +
414 Louil X 82,605,23X Btusrtour or
6.296{8 X t0l0 nur
E. 'A'r'BIu Conrumptioa
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4
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6
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25
2,6
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28
29
30
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rlD
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34
3g
For clch of Oe 74{ houtt whcn "A' prsducEd 119 }rfW, thc smouil of Erus
csosunrs b clrlodetad l* follocrs:
(A(l2e x 2F + B(25SF + C(25E) + D) ll
= 1332.t06,04? Bmsrtr.
Iberc(orE" tbc totd Btrs consurrcrl by 'A' iD 'Ab' portioo of Unit Numbcr Ooe
tor thc mouri cquds 9.tT208 X t0tl Burs.
C.'B'B' Bhr Cousumptioo
For crch of tle 310 boun rhcn "B' produccd 50 MW, tbc arnouu of Btus
consrmcd it crlcuLltcd u foUo*s:
(A(S0 X 2F + B(100)1 + e{lffi) + D}j?
- 54!.976.792 Btsiftr.
For crh of the 174 tourr *hcrt -B' produccd 0 l.,fill (tlurlng doct of uoo'
Itutdscrtr), tlc rruoant of Ens coasured ircrlndged s follsffi:
(A(of+B(oP+CX0)+D}2
= t43,327.15t Bulhr.
For crc,b of thr 240 hourg rberc ?' producod 0 I'fw (durtng tlnres of
sbutdorru), tic suorlot of Bus cousuacd cqrrrb aro.
TbcrrJorc. tic turl Burc coosuocd by'B' iq Tt' porttoo of Uolt Nuobcr Ooc
forthc most! cqnls:
330 bourt X r41,ff6,792 EtttsAr. +
l7{ boun X l43.3fI.l5l Etur/hr. +
240 boun X 0 Etugtr. or
2.03?91 x toll auu
D- AII<Pkn of Cml
A's' ConrrrrT'don
tq76!l,l5l0lr Utnct
9-l?208 X l0[
I
g.tTZOt X l0ll + Z.GtTgt x r01l +6.29648 X t0l0
= 19,3i10.49 mor
-B's" C"p+qUrrytti$n
J0,769.15 toqttimci
etnw,Norl.h Vrlay OfC FrCc 3l
I
2
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5
6
7
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28
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32
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34
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36
37
38
39
2ll]?91-X l0ll
9.t7208 X toll
= 8.73t.69 totrl
+ t.0l?91 X l0lt + 6.!9&rt X 1glt!
InrcSqtnoanv Usege,ConqumIrtion ( Als )
50,769.15 toffi tirucc
6.296,t8 X l0l0
9,1?108X l0ll +2.03?91 X l01l + 6-?96,a8 X tgl0
r 2.699.97 tou
Noc: h rtusl ofradoo, tlc nro Vekny uniu ut disprtchd u ihoxm in Scctiou ltr3.
V. 1.1.3 OPEnrfloNs rfiD Mrrrtzxr!{cE CosTs
All Vdmy operrriou aad rnainuaanco cofll iilE sbffad equally,
v. l.l.{ usAcE cBAfcE
If onc Compray (tbc prchescrl naircr clcarfiCty firoo ric otlr Compu/r
(the rclbrrs) usurcd podoa of tic Sutiou tbc purchuer FrF r Urrgs Cbrrfc (t C), f Uugc
Chergc k r trrcd dolls lcrrocjnsrtthur (Sll\,fllfl) cirrgc &il b bread upon tbc mm reotly
r,ralkbh trelvs (lt) ooath Vdrsy $h$td Opcratbg ud Mrhtcarre (O&If) fiDc'.ts ircluding
Adaiolstrrtivc ud Gcrcrrl (AAG) crptass r$ $r foflb la Apgeadtr 1. Tbr fotloriag oosthl
Usgc Cbaryc is calodatcd by ditddiag Vrlm/r mct ruo?Et r*=lrr (11) rmthr *trrl rbrrcd nno.
frtol O&}{ ctpstrlcr, rs blllcd. imluding mrjor ouu3c crpcorcs, rs drflacd ia Alpcodir I,
asrqrtircd ovct Erm (5) y=u hy ooc (l) yea/t F*pcdd Avdlnblc Mcgrwarthor.us (Eif0. TtG
E,\.V b calndacd by mthip$dng tbc Mlxinum Dcpcadabh C$rtry rs dc8ocd Ia Appaodir l. by
ninery pcmcnt of 8,?60 bffEu.
For crrnrplq (r) rr $a cad of mntl l, thn mm re*ody rrrilrblc twchrc (12)
ru,onths OAl,{ crpilrc$ totd tt0J00.m ([5,150.0m hl] bcco bitlcd to erh Coupuy) snd (b)
fin mulmsm dc9tod$le c.pecily for thn vulny Sutiou is 521 MW. MoEt[ ?r Uu3r Cbrrgc
rhall bc l?Jllt(Wh" Thcrcfort, if durfur3 ttrc moo$ l, "A' prodoccs Sfi) lvfWh'r frofi T'i"
portioo of Vrby, 'A" rEII pry -B' $l35J.m for rooorh 2'r Uragc Chrrgc, (.f,f,sl X 500 tvf$rb
' I1.255.00),
v . 2. I . S ALLOq4TlOtr{ OF COAL It{vErrTORy O wNnnSRrp
(r) Ttc Comprdcr jointly dctctuhc. grior to start of eacb opcrating ycrr,
(utilizing t[c lleRibility er,istiag uodcr &6 Sooltcrs Utah Fret Cornpuy fSuFCo'] Contrrq ud
Oa Bhck Bunc Corttrrct), fie toral smouql of corl to be &titcrcd forsqch Operating Ycu (Iuly I -
etnlg2 NrthYdmyOPC Prgr 28
I
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22
23
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25
26
27
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29
30
31
s2
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04
June l0) for Vdrny Uuit i,los. I aad I t*inj into considunion. lrmont olhcr things, (i) rhc
uuorrnr of totrr Drojc+tcd to bc io thc rtockpilc u tbc cnd of ric Operating Ycr, {iil rltc budgered
udliririso of tbc Vrlmy Projcfl hy ld$o ud Shrn Prcific forecigtad for thc *bscqueu opcr-uiag
yeff. snd (iii) roul cof, 0f rlrc corl to thc PrDjcE[. Ttrc purp06c is ro gcrmir rhc Compuies ro
providc n@ssslry uotifusdon to SIJFCo ud Black Bunc ard to rnr&Igc thc volurnc of rotll ir lhr
soc$ilc to rnaiotlin ar acccpublc coal iatutory gocbik kvcl
(b) Corl ls ptudta$d il Uc morl cconomJc ratnDcr whilc rero"rioiug wirhia the
coo$rai$ts of t[t StJFCo @BIriEr rnd Gc BLd Bumc coomul
(c) Nl corl purchascd, ran3poncd, aod dcUvend (bott under tlc SUFCo
Courru aud t[r Blr4tBr$E Coorefl) tr initinlly rccorded on Oe booh of Sirrrr Prcilic aad ldr[o
oo I fl)-50 omcrship hsir rs invoicrd to Sicm Psinc.
(d) Ar Dr csd of cach mooth. emh Compaly'r eudlog corl inve116O O
dercrnincd rs follows:
(i) Thd rtrioiroum iovcoror] iloctpile lcvcl foc r.hc Sution sbdl bc
cfl^eIsbcd by th, Aaadng Coromiaec;
(ii) Tbc Compuicr rill rllmrtc tbe cod in t[e rmkpilc oa r J{I50
e,ftar-bum hrrlr up to tbc. mlnimtun iutcumry hrtl rs ccteblirlsl by tbc Opcroing Cnmrniflqc,
bowcwr, tbc lO50 r.ftcr-brua dlocnlon sldl bc rppUcd o all quotitica up to 325,06 toos, but
Dot ftorr tter 4!5,000:
(iii) Tbc tmr sf Esrl ln tic uockpth rbovr tht {l66sfioo sn s 50/50
rftcr.bum blrir rtrll b. dloc$cd oo e ruabod ilvcrrc to cret Coropury'r urc, of tbe Statjoo
('Sudor Udlir^etioo'heaby drfincd rs rct MWhL ho*rrrr, h oo crucat crccpt rs povidcd ir
rubparagnpb (tv) bclon, rhdl cither Conpuy bc rllocrtcd ps6p thrn ?I} prtcut of thr crccnt
coal bucd on $rtion Udliarioo or h6s ttrr! 30 Fertaor of ttrc crccss corl bssed oo Strdon
ljtiltzrtim" Uuder rn nllocsion bascd ou,$trtiou Utiliration Si.rrs Prifrth rd tdahot shara of
Oa c*ccss sbdl bc dccmincd U calqdatioj Edrrueragc ur 0f tlc St*ioa foc th mos ttocat 12,
ruouthr rs r pcrceuugc of th rttregc totd Strtion usrge for tbc most rEcctrt 12 moqtbs ud
nlbtrmioj tbr pcrcemrSc fmm lE pecml I! dcttnntDint Stetioo Utillattoo for tlt mo$ tteut
l2 moaths, uHso of th athcr Compeuys u.ourod pcnion of tbc Stdon ihall bE cousidcrcd tbc
ownhg Compn/t ur.8c;
(iv) h thr lycot Slcm Prilic's share of thc sochpik cxcoods 300.000
toar' crlal rbow Lbk 100,000 ro0 utrourl will bc sllocuod brscrl rolcly on Stuioo Util.izrtion
withorrt timidnf ci6er Compln!' t0 e maxirnum rllocrtioo of ?0 prcrut 0rto t miaimum allocariqn
of 30 pcrcrnq
ttugz NGih vdloy OBc P4u X{
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37
APPROPzuATE EXAil{Pt.ES OF HOW TI.IE COAL
I\IVENTORY ALI-OCATION IS TO BE DETERMINED ARF. SET FORTI{
IN AIPENDD( 3
{vt Thc Complnies agroc thlr thc coal lUcrcttion prxcdunr rcr fonh
above rhlll cootinus until such llmc thc corl cortrpct with Btlct Burtc Coll Company is
trrminarcd" At cxh timc tlrc Compaares rgrcc to ncgotiur acw Station coal inrcotory proceduar.
V . 1.1.6 INVEITTTORY ADrU$TMENT
Whcnc.vcr r corl supply inrrcntory is pcrformcd. ary nmount of ovcruge or
rhonagc rhdl bc mcasured and allocatc{ Io ctch Corupaay io accordancc wilh thc pmvirions sct
toni la t}e "Vdrny Cod Phyrical lavcotory Procpduet.'
V. 1.7 Corrt ANALISES At{D ME^st REf,tEHT
Imrnediruly followtng Oc tilllng of thc boiler cod rtongc rilor. thc coll
rarnpliog ilxorDedcrlly obtaincd hon tbe coovcyor bcl iscuq srrnptc4 rnd scelod in rccorducc
rith ASTM hoccduru Ho. D2334. TUcec cod uuptcc ur udyrcd la Oe cod lrborflory s$
spcctflod io ASTM Procodum No. tlt015. Tbc msulu of thcsc aaalyrer srt ctrtlrtd In paroroear
recordr t th Statioq.
Fre[ 3fu6 coil is dclivcrcd to thc rtomgc silor, thc eo[ncFo( bclr lErh ir to Uc
read rad rccordcd jurt prior to and jus rftcr rcccipt of tbc dcUwry. Thc difrcaocr bctfficn thesc
rwo rcrdingl ir to bc caloilarcd &rhj tc cooophtloo of ea6b runpling Fdod t0 grt c ttc urouar
of mel placcd in tbc ci1o6. This in doqa h mdcr o psmit uoit ltcu-ntc rorlpcr,
V. ?.} COTI RECOND T,EEPIHG
Tbc Plsqt Maaagcr lr uotificd rbeo tbc cort dcliwrict will rrrive st tbq $trtl61
All coal is weighcd il tbe mlne pdor to drp*mn Strtioo paronoel rrc is costrt with ttl corl
$Fgli.r tn obain cod qulity datrof crlt bcinf $ipptd to tia Statioo. Corl srmpka s,'i[ bt teflcd
u thc Stuioo 0o l! urschcdulod brsir to cusrrrE supgliem' figurcs arG com,ct. Tbe convryor belt
trllr..q will h r=d 6 obtaiu md coosrmptiou dd"l fur finrncid rEporrlng rnd StEtiol pcrformanoe
purp{r6c$. A }rluca procedurc for usiag tic bch tcdcr will bc kcpt u the plut ritc, ta example
of *ucb e procdrE ir rnrcbod rs Appcodir t, The silo hrrb will be nrcasured u midnigbt ar the
end of errcry mooth ssd th,tlsl EEasurmcuts ?ill bc combinod witb tlc cooveyor bch mnlc
rcadiags to prcvldc rnoothly corl consunrptioo drta- tn additlon tbe grar.irneuic fecdcr intcgruor
rradiogr will bc obtained for use t r chct rgrinst tbc bclt sceles In casc of umrplaiucd
pcrfonuurcc dcviatioos, Fol rny glvro moath, [f tbcre ls ttrsor to bclicrrc thr &c bc[ salcs ere
rcadiag uroncously. tbe gravimttric fccdcr $rlcs rrill bc uscd to obmn corl consumglon dera for
finrncial rcporriug llrd Stmion pcrformance puryoscs.
9tVg2 NomhVdul OK Prrr 35
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v . 1.4 Co^t Qururrr Cottrnou
v. 2.t.1 Corl Srururxc/Tesrrilc
E*tt tlrffi o rhiprmot of coa,l lt lu&dcd il r mloc lordlng fuility, r reprucouJrr
*mplc it trtm Oroqh u rutomttle suuplcr, Thtr corl is dividcd into &rrc rmdlcr ramples.
Orc ranrph ir tcstcd by &c rninc" Ore ruoptc ir deUwnd lo rod tclitrd by Velny'r trb, urd tr
rcmniniag mcrplc Ir eulmd by ttr ruiar to bc r*c{ io mec of dircnprncicr ir tcrr rtrulrs.
Vrlny'r rt$du us 6sru,p{rtd sith t[c Eritrc't ltltdu wirh rcgard I0 ruoirhrrr, bcn vilrlr, ud
cdfur cootrdt. Should dtxrtpucicr uir, fic thid nmpb it rcrt m r&ir$pury leb forenallti*
v, 2.{.2 YrLitY Lrc QurLrrY CoHTRoL
Tbc Vilruy M rrccivct mouhly DOE tcct srmplcr otmrl ThEe tcrt rmplu
61p rrarnflftld u uc chcmicd qu.titirs. Tbc Volmy hb urelyus 6sp grnplcr rad fcndr Ocir
tulrdtr m Os DOE. Ttc DOE tlco rcodr Vdmy $c rcrurl tooistrurE.lcrrinl vrluc, rod rulfur
aour lI vrher. Ttir prdur u,risr tlc Vrlmy lrt ln ,rerifyto3 nun$lc unlag rr0otls.
v. 1,1,3 PEIIOOIC IIEIECTIONi Or flIE MtXe,
h odcrto hclp nrQ 6{thc srmglcr rccairtd u Vdmy src rcgrurtototirt of thc
cod rhippc{ pcriodlctlly, t Slcnr hdfic cprticnutivc ra*cc ro rrrrlrilrcGd inr,pccrioo ottbc
mlner lodllg fuility io ordr to Ete r cod umplc dimaly ftorn thc runm*k nmplcr. Thir
nmpb b sodfad by r t,Lird-prry bb trd th nculu compud with orrtat rad pcviru lrb drs-
V. 2,1.a pByftort t"frtyf,irfoIIES
ltc ,Dcrlod rnd Seryxocy of mrl npply gLytkel invcatoriau rllt h pufomod
h ocrCIrdanca rith Uc ryrluy Corl Ptysicrl lowatory hufidurt*.'.
v. 2.1.t FI.EI?.INO cOHDrnONg
TfLcn fncdng crodldoos rrt Gocoufitcrc4 nrsolubh cffonr to unlo$ tlt tnh
rtll br ctnploycd, U r grb*urtirl rmoum of cod (owr 30 tour) rdll aroduc ia tbc tniq tic
SUFCo rf,iDc b ls$tnurd to rotg! thc mjo crlgf lld crcdlt tbc o*rctr for tbe nrudaioj mrl.
Furtbeunur. to a.inirrdrc frarc pmblemr rhcocvcr pou$la ttc tnior Ery bc rhcdulod to
miolmir &lffi during tlc naooths of Doctubrr urd haurry. coosidcut ritlr the ufius of tt
wlcultrg.
Y. l.{.6 Mnrr SCALE ClLtBr^Tlot{s
Tbt rcalc u thc mjnE's loadlog firlUty is crllbrutad conrlncu wlt! tbc unnc o(
thg coel cotltnrt$ Sltm Pxific urd ld$o rcprcscnuilva rlnng *iG gowrnmcntrt ud rnilrord
tEplucilrirrHt nE catitlcd to rrlutr$ grh alihruJosx.
u27tE?Itorth Yduy OPC Prrl 2t
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16
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21
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24
25
26
28
29
30
31
32
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at
v, 1..{,? TnEsrLE C*rur*r Svsrsu
A tnsdc cluTlen systcm it opcratcd to acord ths cosl rhipntcnu orr video upcr
which ur rrted 19 3ft6,tnnrlnrc ftc @uacy of thc unloadlog opcmior.
v. 1.5 DESEL OtL
Sun-up rnd flatlc nabilir,a,iou fucl oil co*.r will bc dloc$cd an o 5tr50b*cls.
YI. f . GEI{ENATIOIVINTENCOMPANY USTCT
TLis smion oudiaE thc pmccdurcs tlat ereruad u dctcnnir the followiog:. Moothly at gcrrathq by unil for Sicnr Pldfrc rnrd Irlaho
' lalcnorDpuy trgggq by uojf fcr Stena md ldrlo
VI. l.l CAt.cut,tfloH oF hlET Cgxe*rrrox
Total nct gcncrrtiol for crch of the Valmy trEits is ctlcuhtEd thmth thc usr of
tbc gcncrrtiog rncu$ &et m locrtcd u tic Valny gl.3oL Erch udt's rct gercri*lon b d.crraloe<t
by trkiry tlc gmct gpocruioo rod ruhrEaisg tbc n*ioo xrvie (cocryy umd *hilc Oc gflioo iB
oo-lincl. Tba rcccrvc rt*ioa tcMce, *'mbbtr Doffir, and scllFrcld powcr ir ignord whcn
deeuitriry rct gcrcruioa.
Idabos ua geocntiou for tlc vrlmy ghu ls ulas fmm SlcTrat Sysam Cooml
log rbccu which lrt bnscd ou iate3ruor rcadlagr, Idebo'r rct gr.ucrdon far tir phnt is
fiJbtnrtql frcm ttc mul lEt gunrntioo to corm up wi0 Siurnt oct 8cu6rad00 for Oc ahol For
eramph, tf, durlng tbc nontt of Jraurry. l9r0[ ttc Vdry phat'l (boti uniu coatlrcd]
geocrarion urclEn cboeod &at ttrc gruss gcncrulol rrrlt 1ffi,000 HWh.' tbc. rtrioo scrricc rar
5.000 MWh rnd rbc tt$ruG $$loo ssrvic! wrs 1,0(XI }f{fh, 6r os gcocntiou rouH bc 95,m0
lv(Wh. Pilrticr. lf the Syruo Cootml hl rbctts tho*td tha Slcrrr's monthly m gcocratioo *u
18,000 pfWh urd rhrr ldrhdr wls 4J.000 M'lf,th, Idrho's oa gcuerrtlou would $ry u 45.0m
Mwb rnd Sicrru's rpould h dlculstod u 50,000lvfVb (9J,m0 - 45,0001.
Ttc maoart tn *tic[ erct cmpra/r oa geoertiou i$ dividod bct*aa ualts *ill
bc discrlsscd !uet.
VI. Z.I DBITRTi{IfiAIIOH 08 IITTERCOIT{P^fiT U$ACE
Ot ra bo,urly brsi3. lOtartompray ugtEc !s cilcul.Errd by rubrrurio3 coch
Compary'r coGrty rrcript fmm ei&cr ooc-hdf of thc sulioo'r caplbillty or onc-hrlf of tho
ststions' oct gercratlca, r,blchcwr ir blgber. All of tbcre rmflBE arc trleu from Syrtcu
Coatml'c log rheas. lnurcompeny rtsflEt lpglica ody rhcn &E rGfr{t is lcts tlrn xm.
lluh eualt ls bciag ra,mpod up rfter ra oougcr tbe cnpahility lhil is urcd sldl bc
tlre crpcctcd ret capnbility oI tlrc uait u full load. grovitd dtrl ric unit cen bc lordcd to fuU losd
*'[th no rtsuictJoaa othcr tlun thc ralup nlc nstricrioa rpccificd h Scr*ioo IIIIJ of t]u OPC.
El2Tt{2 ilorh Vrlcy OFC Pajo 37
I
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3
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6
7
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11
I2
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15
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17
18
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23
24
26
26
27
28
29
s0
31
88
33
34
35
36
38
39
{0{I
3?
If ooe compilty is ln "Ehuldgr+r" rmsdc Urd thc o(h.r compuy tlccidct to
physically rhutdo*n onc unit urd trlc all of its rrquired energy from the mrnarnlng uth. no
istcrcompny trssge shdl be dcurmincd.
VI. 1.2 ALLOCATIOH OF JXINRCOMPATTY USACE AND BA5E EUERCYEErwusx Uxrrs
Tbc foUowilg procedurc shll bc urd to rplit ttc totd boosly intcrcompaay rtcrgc
rod hasc eoergy {totd cnergl lcss intcrcoropuy u$gc} bcur'ccn &c tws Vrlmy uniu. Tbcsc
vriabhr erl rr4uirtd to solve tle cqultioos thsl nrE outlioed in rcgioo V.l-l of tic OPC. The
cru,mplc shoen ir for display furpoles ooly lnd ls not ba*d upou ury luud locrcn*ot"ul co*
eunqt.
A, Ou rn hourty basis dctcnninc the following 6vc nct gcucruion (MIl/bJ
rrBounls: Uoit No. I uct gcneruloq Udt No. 2 oct gcacratioo, Sicrratotal
coc.gy usage froru tlc Vrlny setioo. ldaho total eoctgy rsl3c from tbe
Valmy sution" rnd totd ststlor oprbtUty. Tlusc flrrc arnouag ur teter
from tbc Sygcm Controllqr,.
B. Calodetc intacompuy nssfle ar prcvtorsly dscribul.
C. Subtrrcl thc inurcooprry usrge from tlc rppltc$lc Compul'/o tosl plmt
usegc. Tte rcsutt is thc brsc cucrg),. For cumplc, if Cooprny A's total
sutioo cocrgy ussSc durlog thc bour is 3fi) l,rTf'b. end Compuy A's
iatu666pqy usrSE B 39 MWb. subtras t.bc 39lift*th fmm tbe 300 !'fWb.
yrelding 261 MWh.
D. Detcrminc bow Vrlmy *ould bc disptcbcd if tlcrc wcm no inurcomgury
nsrgc. Coodnuing with thls crlmpla if Company B'r rtatlon ussgr rrrs
lm [,fl*/h. dacrmiac Dc omooh rlbpsrcl of 361 kflV (261 ],fW phs lfi]t'fW), Ecouomic dispetcb loading for each unit will bc bc$d ou tlc
oootity ircrtrxoul coc curvc (Asfrcsdir A.
E, Suburt Oc ccoaomlc dispuch of erch unit rs dctcrmimd from stcp 'D"
from ttc mrrl disptcb (nu gemmtioo pcr uqlt frsm rtcF 'A'). Ttc
diffcrcocc is lhc stlrcatioo of inrrcomptny r*ngc by utriL
F. Allocuc eech compa.oy's basc cncrgy brtsccn cech unit brscd ugroo l
sraight pmntion of csch Compan/s basc eocrgy. Ifucping sitl tbe same
cramplc, U it wrs dcumlmd throug[ cconomic disprtcb ]Iu, &c 39 b,f$t
of intcrcompuy ursgc (lCU) was rllocrtcd with l0 }{Wb to Unit No. I
rad 29 MWh to Unit No, ?, erd if Unir No. l's toul na gcocratioB r,'&r
150 MS/b aod Uoit No. 2's was 250 MWh, Uoit No. l'l basc crcrgy
would bc l{0 lrfl*/b (l50lcrs l0) ffid Unit No. !'s would bc 2}l MWb
(250 lcss 29). Uuit No, l's 140 Mll'b would bc rpUt l0l MlYb for
Cornpury A (261 dividcd by 361 dmr l,()) rod 39 MWh for Compray B
(100 dividd by 16l timcs 140). Unit No. 2'c 221 MSrh would be split
160 Mwh for Corupany A (261 dividcd by 361 timcs 2?l) and 6l b{$Ih for
Compary B (lm dvidcd by 361 ttoes Ell).
Et21t92 Horth Vrlory OPC Fep !i
I
2
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6
6
7
II
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L2
13
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33
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36
36
Rcs.ucmst of E:.lmpk:
Uuit No. t
Unit No.I
Toul
AllrXrtion of II S{
Cnnlp A ComD Btor ls
sf
ICTI
IO
29
39
TruJ
Nct
Ocn.ls0
2t0
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Allmslion IfupatU
withour
ICIJl.loirl I*3 I
!61
160
16r
6r
r00
Oxupmy A
Company B
300tm
vl. 3.1 ALtocrTroH oF *loltTHtY Hur Gunrn^Tlot{ f,EtrfEE[rCotrttAittf,s
Uriq thc procodure prerlourly dc{cribc4 cycry bour th follo*,ing rtonots ur
crlcul$rd for crri uniu Shrrr b.rc eosrly, Slcm lCU, ldrho Er* crcrg},, ud ldrho ICu.
Thcst sttrwsts c ruqulmd for mo purpcc€s. Ol rn hourly brs[ Uc i'ff/b rroraE lr uscd lo
crtiure Bur cooarmptiou rtlcD b lh bub fm thc mmEy cql ellocuioo. Oa r mou$ly brrir,
6c !'{W'L rnspti ut urd to dloccc tlr stul lct tgocrrthq (a crlorlrrcd fim &i Strdosl
Scocfilthu ctgt! bctrrcEr tE tro CortrFrhr,
For tlc rlloculos of cacb ualll ooothl, att lGanrrllor bctrruct 6r rro
Comgraice, crh of tlc olght crtcgorlcr'borly rmouns ue totrlcd for rbo mouth. Forcrb uait
ud for cach compuy. tlc besc Ercrgy I thm lddcd !o lbc [CIJ. TLc rrrtl of berc eddirioor
duer tlc fotlorilj fotu rmounts SIcm Ul[ No. I totd or[ jcrndor ldrtro Utir l{o. I toul
n 3mruioB, Stcrtr UaI No.21od u grncruioo. rad ldrto Us& No.2 Enrl na graqtioa"
Horrevs. sircc thcrc rmsuB rru brscd upoo ttc Snrco Coouollry. tlcy nu m[ cstfuLgcr
ud r,rc ucd ody lo rllocut 6a ffird ou gcocruioo (tcelculud ftom tXc gltioa-rgerruloa
mgaru) bcrumo ttre tro cornponic*
To pcr{enn thh cslailrdm.Idrbo'r to'trl rnoathly na gemrtiou lr uten ftom t[c
bI rbcct ud h ruptcd to b ccursL Thir moottrly totd for tfuho L thca dlrcEcd bctrca &0
two usiu br*d upoo crh uait'r c$im&r for klrbo brrc cocrgr red ICu, Ttc rtsult of tDir
alloctioo L ldrlo'l uootily la gcorm,tion fol Uuiu No. I ud 3. Ttoc tro rumbcnr t,ri
rubutatd trdU uoir*r ooottlr Bl Ecoc!-.rioG (ryr,ia pcr tnc g"ltioa'r 3cocruion can) ir
or{cr to ja*rrl at Sruntim by urir,
1tb prodnm csq h bc* undcrsood thmugh rn cr^turtpb,
Errmph:
Durinl Oc moafi of Juruary. l9)O(, rf,c Vrlmy statlou'r Srocrs(lon mrrtr
rhotrcd thrt Unit No. l't ra geornrioa Bu I10,0m }f$'h ud Uoit No.ll rrr l30.m0IIWb.
Tbe Sy:um Coouol log rhau rtor. On lddrol torrl ner icacnil.ioo wr l{0,000 ilf*t. Sicnr'l
tnlt9t Ncth Vdur OIC 8rtr IF
t
t
3
I
5
6
7
I
I
10
II
r2
l8
l{
r6
16
17
l8
l9
20
22
l8
3{
26
28
x'l
28
19
30
3l
.:t t,n&
s3
2t
Ect lsner.rios b ttco crhlh&d to bc lm,m0 [{1,\t ( I 10,m0 + 1]0.000 . l$.m} ngrdhsr of
nrtu tbc tqg ihcat r.ur!.
Asumc lirnbcr ttat tle rummuloor o[ tbc hourly buc coergy and ICU
colctladorc rtst[ iu tb fothu/ing rnm&l] touls (Ell in ]'flilh):
Slcna L,dt No. I Brc Encryy: 45,000
Sintr Uuir No. I lCUr 1.000
Slem Ualt No. I Totrl: 47.000
ldrho Unit Ho. I Brc Ercrgy: 61000
ldrto Unlt l.to.l ICU: 0
tdrbo Uolt No. I Totd: 61,000
Sicm Uult No^ I Buc Encqy: 47.000
Shrn Uqit No.2 tCU: 1.000
SLrrI Unit No.Z TffrX {8.000
IO[o Ud No- 1Br* Eocr$: 11.000
Idrho Uuh Ho.2 tCtl: 0
tdrho UEit No. ? Totrl t1.fi0
Idl}o'r totrl rroully oct jrarn*ioo of 14q000 MTfb *mld bo rllocrcd
bctrcea the two ude br*d upot thcsc oumbcrt. I@s'r Uait No, t uu jmcndoo rqrld bc
60,699 lvfT/t (61,m0 dMdcd by (62,0ffi + El.OfrI) tims 140,0m), Idrlo'r Uoit No. ? lrt
gencntioo rould bc 79J01 ['fifft Gl.000divldcd by (6em0 + t1,fi0) tiocs l{0,m0),
Shm? Uolt t{o I H jrmtetlm rouH G$rl {9J01 },fitt (! 10.000 - d0,699). Stcm'r Uqit
No.1 u pacrrdou rr*ld bc 50,[rO Ii{Wt (l}0,0ffi- ?9J01}.
VII, I. MISCTLLANEOT'II PROVISIONS
vll. l.t Errn8oFc
Thb doourrol coosl,ituar Oc mdn agntrror of tbo prni* rlt[ r4rd to thc
fiffcrs ddrcsicd hcrri!, rlt, nryersoer r[ poor opratir5 froccdrrrer crt&d& rlgber onl or
nninrs. Aly stalndw c.Xrngc* to ttlr O0C m,ry b! rtrdc purfl.lrtrt ro Scrtioo t !l la ttc
rwnt of ctufrb brrs tilr Orc Ed OG ftojct AgeeuctL tbc urms of tL Prala Agmmnot
sh^0u be co8o'r{l3.
VII. I.2 ASTIGNT{EIIT AITTD DELECATIOI.{
Heithcr Dtny ruly rsslgn lu rfbu or dcteguc lu dutlcr trlder thir OFC rltbout
the prior nniucn colrcat of tbc dbar pury. Srrb Rooltf,ol ghrll 16l unrusouEbly bcrittrhctd,
u2?r01 I{rth VrtE, OFC PlF S0
vlt. 1.3 Cr-ruse BEADtI{cg
Th* clurtt ludlogr rypclriug in this OFC toru bccr inrcnrd for thc purposc of
corwnicm rad rcady cfttoce. Ttry do rot Frryon to, urd rhdl nst bc &erocd to. dctbc, Il.mit
orsxtnd tic rmpc or iauot of thc clauscr rc rhich thcy appcruin,
IN WITNESS WHEREOE, cmh pany hu cf,c€uted t[ir 0FC. throug[ iu
duly a*ho'riaed rprtscotuivq oo tc dry and fcu firs abovc *ttrca.
SIERNA COlvtPAtfi IDAHO FOWER COMPA}TY
8/tt/r2 I{cthvdoyOFC nrcr ll
II
3
4
5
6
7
It
10
t1
Anpcndr I
Agpcodir t
,tmqdir I
f+paadir 4
AftrEdir S
Amurdi: C
Apnenalir ?
Appcadir t
arpE-{FtFEtr:
Defialdoor
Acaqtldcg Oul{cliu
ttwotry NldrErrrgLr
irdrryo*uCtut
Co.l $tydcd tn'caory et*frrn
Sneiyd Cm AIIocdm Murr
Ermpb Incmrl Co*OrnG
BrrmphBdlscde Ptoccdun
l/r?/8t lrorthYdryOFC PrO tI
I
3
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6
7
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rgla
15
16
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18
19
20
21
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Apptndh I
Ds0triiloff
I " No-Ld Cm
No-lord cor 0o06l,rts solcty of ttc cog of th ?' somgoilcnt of Oe ual bcil tnprrt.oriltrlr
o6ruioo. Thlr vdrr rcprcsou thc fucd compooEel of tlc equuion
e. Wot0nr$t
Asy outlgc. pllnd of forca( wUct lt trpad E cod t br{[ Sl50,m b hqrrmod
lrbor. rornridl. oyertetd& ld trrcr,
3, Muimuru WtUc QrrdUffDC)
Na crpeily bucd or r fuU-lord tcrt pcrforuod quuurly ud dEd6d r ooeurry for
Frtirl outrsci e{glrnlot to I pcrccat 0r moc *horc duruioo ie u krrt oac crlcodnrmml.
a. Emfry
Atcmpocythrtt mq{rhmof mmorttlqrrs&&fuo bcyod tlo csarol of Oc
dTcdGd Copuf dscdnf ie rff:Ery brrrG fitu obtifimr.
smMt t{rttrTrlcrOFC Prlp fS
27
I
2
3
4
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6
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10
I1ll
18
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20
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22
23
21
26
26
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29
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31
32
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36
86
3?
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89
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42{3
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Appendlr ll
Accountinp Culdrllnrs
Thcr Accouotrng Cuidclines rcturng to thc optrruon atrd mdnuoaocc (opcralioo) of rhc
Nsnh Vrlmy sod-lrrcd geocntiog sultioo. Uniu lt & f2, owood joiotly by Sierri Pril-rc Power
Company (SPPCol esd ldrho Power Compony (IPCol, hgvc bcco prtprrud to $rndardizc and
formalirr Oc joiat rccountlng proccdurcs rnd poUcics to bc foUoc,ed by both Connpuies ln
oomgliamc nrith tIc 'Agrccmnt forthc Opcration of &c Nonh Vokoy Power Plsnt ftojccr,'darcd
December lL 1fi8, nnd thc 'Opcrating Pruodurcc CriuriE'('OFC').
Thcsc Accountiug Guideliats shill be rsvies'ed by Oc Velmy Accouoting Comrn:ttec
pcnodically or u thc rEqucst of cithcr Onrucr, U upon evhw . @nrctiour art Decessary. thesc
Guidetircs will bc rcvisod ud drcsc rcr'tslons will bccottrc a pn of d! Orc.
fihjmjvcs
To crtablirh, rcvlew. and malnuiu thc Projccr rccoundng rnd rudillng procrdurus,
poUcic+ and programs, whiclt iocludcg eU budgel, frnence rnd ur requircmots. dcfinitior of co*
cstirnltr form{, and cash foccast rtview.
To cnsrc complhncc witt rrgttluoCI ffirrratisg ruquircrus.
To provldt lidsoo rnd communjcalioo bctw,cco the Orvocn, $c Opruing Commiucc, a.od
tlc AccouuUnS Coruuircc.
To eurblisb tbe following fuiiclcr wNc[ rhrll u dl tirms BovEru thc obffiwr of ttc
Acco{Iating Comrniucc: thc Cornrninu's rctJons rhall dwryr bt in coroplirm widr ticrc Afiichs:
anich I
The AccouutinX Comminle wu esublirhed uodcr Scction 9.1 of tbc Coostructioa
Agrccrucut. It is udcrrood tbu the Corunirct wtll ootdarn ig soutinglurisdictiotr urtil such
dm u r.bc loiat Owurs d6irt to tcrmlnls tbc Csuninre frnilrlnt. t0 tbc OPC.
Artich n
Tbe fbunting Comrnlttcc shall rlwrys lct sithin the confincr of th; Opcration and
Owncrsblp A3rcmu eDd ibdl at sU ttmca be coosistent niG souod asd gcnerally a:crptcd
accouuting frbdphs end rcgula,totl ruluirurrnu.
Anidc m
The Aceounting Comraittec rhslt bc rcrponsiblc for cttabUrhlng, rrvlcnriug, md
rn*inralning Or accountiag, rudidn3, budgerlug, ild tsr pollcics and proccdurrs pnincnt to tbc
opcratton 0TUG Projefl. Tbe Accounting Comnrificr shdl rnaXc rccommcodadans rlrdng to the
abr.rr rru$ffs to tlre Og*rating Comrni[cc.
BN'IE2 Horth Vd.oy OPC Prtp 3{
1
2
J{
5
6
tII
t0
l1t2
1S
1{
15
16t't
18[9
202r
2?,
?s
24
26
26
27
28
20
30gl
32
s0
Arrreh IY
It is uodcrrtoo{ tlot SPPCo, u Oprutor o( lhc Nort} Vdrny ttuiuc.t shtll, wirh rerpcc to
rccountiog rlucd to PmJco opcradons pd capiul impmvcmcoa. corfono ro thc Accounting
Cuidcline arubltrhcd by thc Accotstdng Comrnittcc.
A't*tr Y
All inteaomgany rcqucsu for major ooo-ncuriag Proiect rccouodng dua rad/or
iofonoation shall bc procssaO thrurgb crch Coopury's Accountiog Counittec rumber.
A{tich !'l
SPFCo will providc tic Ocrucn *lth thc auue$ of tic rourccs of rtponablc ioformailoq
s,ithh SPPCo io ordsr to $surc corsisc0t rEponing of Projea informatioo,
A{icL. vn
The Accoustiug Commitrcc rill bc rcspoDsibtc tor rrsolviog ray disptrtc arisiog orn of
rband cocrs ltltcr dctcrtrtncd to bc ooo-shstd rc r tt$rh of u rudit of SPPCo'r ttcordr by rs
Owunr.
A'tichVIn
Mfitcm of dimgmmat rlrdng m muodng betwco 6s Accouudsg Coruuiucc end the
Opcmting Cooolttoo slstl be Gfcmd to ttc joht Ouracfs princlpd rccountirg of,iocn for
rrsolution.
il27F;2 Hortl t/rlay OPC FrS t5
2S
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4
5
6
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t0
I1IQ
t3
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ID!6
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t8
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20
2T+o
l3
24
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210t
1,9
30
31
3g
8$
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38
39
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41
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535{
orF R AflN0 ACCrlLr SrIIIC-GIIIEEI-WS
SPFCo os thc operator of thx Non} Vrlmy Pnttrm Plurt Froject thrll accou.nt {nr rll Frnrer.'r
opcrrti$D crpenses and rrceipts in sccardrncc n'ith the Unifornr Sy'sam of ,+ccounts tPrn lllt)
pnscrihcd for Elecrne u-tilitiss by thc Fcderal E*ergy Regulatory Commlssion (FERC) rnd any
otber appropriate regulntory agcncy or thajr succcrsorr.
$8Fen wlll prolide -thc Opcratl.ng Csmnritrec *'ith ccft&ln rrpCIrts of thc rccr:un[ng
infonnxtir-rn tlctalled on the lolluwiltg pages. with cop(cs t0 thc Acco*nting Crrnrnfilr* Thcgl
Sprrns wril bc prcpucd, in accurdanoc ruith thc OPC, n'bcn rcqrrcstcd ia *,riling hy lhe rlpcmling
Committe*,
()Fc{uin$ Erpenscs {{}Irerotitro A$rrtmtnt- Seettou {l:
Operrdng crpenscs shall corxis{ of obligations infirrrcd in the opcruloo of rhc Projecr.
l.The cost ef *ll ssrvics pcrfnrmcd by $s @rator dimctly nppllcubh ro ftojecr opcmtion
md mdntcnanic includrng, btlt n$t Umitcd toi
r\. PrymU of Projec employtel00 cn !fltral rime bui;. lncluding related emg,loyue
bcncfit costs such as social rcurity (FICA) (il.res. uocmploymcnr insurance
cxFn6c, group lifc insunttc€, grouSr haspitali*.illon a*d rudicrl insur:ncs. p*nrlr*
iunding cxpeosc, workrnco't compcararior, long.tcrra dicrbiliry aod orhcr
lnsurmcc. snd pEid hrw,
B" Mueril,ll lnd toppfru irhdiog rtl^utd p:alrasing aod hrndling cosc-
C. t^cssod oqdpmcotmfi&
D. Trartllhg crpcnsc hcludiaj ure of O*rrefr transpanedon aguipmcnl
E. Iagurrnm casr rpplic&lc to rlx krrjccr.
7, All f*deral ,sreu. and lscrl torEe impo*d upou tlrc Pnoj*t rnd payrncns in lisu of taxct
{exctrding fuder.d rad st$e iucomc Isrcs).
3. All cnsm rtladng to injuries, duna3a cl&irus. a.qd ct*imr o( conrraetorr whhh muy be
Fayrbli rod paid wHct *itc otu of tbc opadon of thc Pmject lc+s prrc+cds of irsursnee,
4. All atht dircl cogr 0r erpc{Lc{s pmfErll aUoeshh ta t}a Projcct.
5, Each nuy shalJ chrrge uhc ProJcct fior its adruhistrativc urd geuerul erpunscs ciircctly
rclsEd to operarioo of thc Fmjcct whicb crpcss€s u,ru oot included in thc ilcnu cnumrrpt&l
nborc. (Scc Optraciag Agrw.rncnt, Saction 4.1.).
t
Aonual Budgqt
Bascd sa the rirning rrquircmcnts as sct foni in Scctjou 5 of th* Opc.rmlog Agrerncnl rnd
Scctioc lv rtf thc OFC, o montbly budgut of Projoct sprrafi$g und mninunfincc crprtr$e$
urd capitd impnovemnt crpcodimat wiU bc subrniucd by SPPCo to tftc Operating ,rud
Accountiug Conarnitucs. Thc budga ycar iofornarion is rcquird by monrhs urd dcrulcd
ss follorul
ul6/$s }Isxhl'rllnr OFC Frgo 16
Io
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5
b
7I
9
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12
I3la
15l6
1?
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19
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22
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81
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35
86
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r3l4
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A. lnmqrorics
(ll Dtrlel oil{FERC A/C lJll
. ..- Acdrhy (rccciptr. rralc. glg. ud rdJrsmcor) rhorpo ia jr[onr mddotlrs-
t2) esd ffERC Arc l5l)
- A^criyity (nceipq Lrnrc+ rod djuouas) rbom ir toor rad do.llrn.
(3) Mrtc?td rod tupptftx (FERC tic t54}
- Aaiviry (twipr, i{ruc.t rEnlrE+ ud rdjusrau} *bgwa in dollen.
(4) $ont Erpca* Uodisulhrod ffERC AjC 163)
- Aaivlty rto*o ln dollrn.
B. Fmduction FTf,nG.r
(l) Opcndoo (FERC A,Cr 5{X} ttru JOn
- By ladivirfd FEIC ecu&t
(2) Mrimcqracc (FERC Afil 510 r!ru 514)
- By Miridud FERC earlL
C Tmnrmtstnn FTurcr (fgyup nUlOa Ooty)
(l) Opcrrroo (FERC AlCl560, 36Lffi.rtd 567)
- By iadivl&ul FEIC rcswsl
(2) Mrlatcmno {FERC AICr 16t.569, ST0. rod j?I}
- BY iodlvidul SEIC tcrtaL
p. Dodtrdoa FTrnq. (rcllhcld clmlc tirctl
(l) Opcndmr GERC A.fCr 5t0,583. 5t6. tt8. rad 9m,)
. By hdivldul FERC usurl
(?l l{dntenrocc (fERC f,fr 5g0, 591, jgj. 5g?. rtrd Sg[]
- By iadivtdurl FEFC rsryol
8r2TA9t !0stftVdlnrOFC P..l $?
It
3
4i
6
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13
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18
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22
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24
23
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27
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29
30gt
s2
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36
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12
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60
61
58
53
E. CI[srfrucssi
(1) Pmfrty L:nsurtnEc ffERC A/C 9?"1)
(2) Irjuder rad Drmrge GERC A,q 9$j
(3) &rrplolu Fenrions and Bcncfis {FERC ArC 926)
(a) Prymll Tucs (FERC A.C {0t}
2. EEh of tbn ubovc $hall bc dfldlod h thc fo[onisg rnnmer. rhee 4pticrblc,l
A Drffi Prymll
B. Pryzrll Addidvcc
C. Tnnsporudou
D. Maurisl rnd Supplicr (ftoru iavcooryl
E Vouchcn
F. Othcr Coru
G. Adminiqxiw rnd GcCrAl
3. The budgu shdl hchde 3 srErrcnt of the asrunopioe rucd in ltr pr4rrrdoo: Including
but Dot t[miud to tle followingl
(1) E*alniooc (lrbor, ctc)
(2) Rrtcr (trstrspodrdoo. frtlghl. clE)
(1) Work Fomc
(4) Il:rintcunce $hdutc (mrjot oaly)
(5) Cryrcity ltraor (Opcrtine Commince)
(O Forucsgad Ccoardoo (lml rndcchmmpsy . OFEmtiDg Commi6cc)
(7)CmorU{llPtim
4. Proj€fl cdtrl hFo+crmt c*pcodlmns hdgcr
A- Proirt elpitsl imprcvemcot crpoditurcs will be dctailed by rnajor ltcrns aad qrill
lnshdc $c e#rnarcd cosl tlmc pcrtd io whicb Oe cxpcoditures rre to bc rnadc,
and aay applicablc uinmou. Tlrc budga wlll, lnctudc a full desfiiptiou of coch
icm und Uc justific{tion lor tltc expendlrurc.
E. This informarioa rlll bc pmvidcd to tbc Onrcr's Ascorutiaj CsfudfiEt mcobenr
by tbe Oprradng esnmirrc oo oc b+[on Oaohr ld of crh yur.
trn$2 North Vdny OPC Prgr 86
tI
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5
6
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14
16
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25
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51
C, Iuros dctcrminod !o bc Crpiul lrnprowmcnu arc budgcrcd rn advanrc tr,1, SPI{o.
r.od scnr to the Valmy Opcrating Committec for thcir approvol. pcr rheirrquircmcats. md subscquently rpprovcd by SPFCo's nnd lpco's llorll otDircctsa. Nooburtget tttnrs wh:ch eccur periodically Oroughour thc ycu will
rEquic approval by tltc tPCo Opcmting Commincc Mcmbcr and the SPPCo Bornl
of Directors.
D. The approvct! SPPCo Budgct. iacluding tbcsc Valmy itcrus, is publishcd by rhe
firs of thc )wr and each Owncr is scnt a copy of dr applicablc Vdny iums.
{OpcEriDS Agreermnt,.Suioor 6 and 7);
t, SPIto shaU kccp accouoting lnd stadstlcd rucords of tttc Projcct opcntlons in
ucordane wlth regul*ory rcquirrmcnu. prudcut utility praclic, and thc dircoion
of tbc AccmafugComminc.
3. Eerb Orrrucr, thmugb iu Accounting Coruuiulc Eember. strll hlve tic right ar aa;r
reosoosbh drnc to cxrrnioe thc orher O*ocr'r charges to thc hojea punnrant to thir
scctioo rod dl $pponLog data ad dwurrcnu mtdog thcreo,
SPI{o rball ccubtirh a scDaratc Vrlruy Opcrntiag Buk Accorut on bchdf of tbc
Owocn. Thic rccount *lll mdrtaio r bclrne of $10,000. clch Orucr bctn6
respon^dbh for thc dcposit of tbeir pcrwotslF sbart for trtp ss miaimrm worldng
crpitat All crpcoditurts for opcruioo. maintcusnca urd epiul impmvetrnts wlll
bc rarde through thir ssosnl
Ecc[ Owuer wiU dcposit thcir rtrpcctivc paniciprdou pcrccou3c rouodcd to tle
octre$t oac huqdrud dollsr of thc weel,ly ectiru$od Vdmy frrcl purcbaser.
opcradng crpcoscs, alrd cq,itel inprowrneat crpeodiuts inro tE Vrhy Operrting
tsaot Accurat to be uscd by SPPCo sohly for thcsp itcros.
SPPCo will providc. wccUy. aa rnalysir of crcb Ocnc/s pcrccotrSc sbarc of tbc
prcviow wecHs fuodiag end rcnral erpenditurts, roundcd to Oc ucerest ooc
bundred dolhn. This analysis siU recoBcilc Oc previous veck't rfluel
erpcodirurcs for Vulrny fuet purchrscs, op€tttilg ctpcotcti r.nd clpiul
impmvcmcnu to thu wccl'r fundlng rc4ues(r). This enalyuis will bc sumrnarird
by FIIRC rcouol
Aay vrrirncc bctxrcco thc prcvlors wtct'u rctud cxpcodiruttr rnd tbc rrttount(s)
rcquestcd will bc Eddcd to, 0r dcducted from, thc currcot uceL's fundiog
rcqrc*(r).
b ibc cvrst tmforEscn obliguioar are incuncd during Oc t,eck Sicna Prcific willldy ldaho rnd cocb puty will dcposit ticir respaivc panicipuios pcrccottgc
tIrE io ttc velrny Opcnting Ba:tk Accounr on or trcforr the duc thc fuatts art
rcquirDd.
Oo or bcforc Or,c ?5t! day of Ge foUowing mouth, SPFCo rill furnistt t0 cach
Ownec
A, Au operulug crpersc steterneot sbonlng dl opcrailng asd crpital
lmprorrcmcot cxpeoditures incurmd duringthe prccdiog rnonth, This
stlternent wiU list cach Owter's panlcipatlo[ pcrcs$tfiBe thm, dcuilcd hy
Fffi,RC primcry oxposc. lcc$unts ead nrtl! thoc, t.he followilg bmskd0um:
Hatrh Veloy OPC Pqr SB
I
4_
5
6.
1
I
frt71ls[
I
E
x
4
5
u
IIIt0lllgt3l{t6t6
1?
18
Ig
20
2I
22
2g
24
25
26
27
T8t9
303l
s2
83
84
s6
36
37
s8g9
40{l
12
{3{{{5
{6
47{8{9
50
51
52
63
t4
l. Lrbor
?. l-rhor A&litives, dslcrlpd
3. Trrrsponaion
4, Maerials
5. Yruchtrs
6. Cash ,{dvrmcs
7.Otber
B. Orncct i'{onrh Toul
9, Baluce
B. Other stgisrJcs tnd hformldoo prtincat to ffica opErarioo (s dcsignsad
by tlc Aaouu&g CornmHcc).
C. As opsruioE hdgq repon compuiog mrd cos& to brldgcrcd cms for &c
surcnt rrcn& ad [or yeer+o{ac.
Cfllrlt&t lrqlmtuns.ttt Frinr.dihlnx Aecfirqtinl:
t , Defiaidoa of Clgirrl v!" Mdrtcmre . plesc scE E.x[ibit A,
2. qsitel lruprowmr expcdiuuc sort ordcr.pprov.tA. Prlor to hliaotog wo*. oo r specif,c birdgcr lcor, r SPPCo wort ordcr isprpartd aod rpprovtd. Befoc wort camrunccs, r copf h forrardcd ro
cacb Gmar.
B. Ttc wo*. odcr dcuils Gr toul cosl csch Ormc/r portiou dccripdoo otBorL md eppmvdr.
3, Moothly. progrcss repons ur scot to cxb Onncr dcuiling thc follosiag for crch
croric atdef (impmwmu ud uucrmnr):
A. SPFCoEudgalumNum$cr
B. SPrco Pcrt fficrNumtrr
C. Edmac of Coss
D. Eegiadn3 80hffi, Currt,Dq Eoding Brlaneq ud Tota,l Cur
E. ftrccor sf Ertimae w. Acuel
F. Dalc Clad, Duc Comphrcd, and Drrc of lrrq GL Charecs
fr- FERC Aocoung
H. Vinhgo Ycs of Rrrimroenr
EIzTtgz Narthvdo, OPC Pr3l {0
1
o
D
{
5
6
IIg
r0
1l
12l3t{
ts
16
1?
r8
19
20
2L
22
23
2*
25
26
27
26
29
30
31
32
33
3{
35
36
s7
a8
s9
{04l
42{3{{
{5{6
{7
{E
{9
Rcmoval Crxs and Salvagc Crtdits
Unlt Dcsignation (lJ. orCommon)
l]t.Unciirrl+n:
Erch Owner, having rocoded their percenuXe shert of thc construcilon corrs of rhc
Proj*t. wiU ccmpute md ncord thek qrxa depr$i.rtion rrpcr$ applicublc to those costE.
Ad Vslorem Tatcs'
Each Orrner is ass*ssed aod billed *parueiy for thc rd vdortrn mres applicablc ro rhcir
prrccnt&ge sharc of thc holcct.
SPPCo will provide the Ouners uith the Stote of Nevrda 'Clalm for Propcny Tirr
Ercmption of Potlution Cuntnrl Facilitics" by Fcbrurry t 5th rrf thc follorrying yEu.
lrasuUulcr:
lnsurancc is a pmpaid itcms and crch Orrncr wiU carry thcir pcrccntrgc shac ol prepaid
lnsuranrc of tftclr books. Thc losumace comparry(rl ,*iU bitl SPFCo. who rr,'ill pny all prcrniums
rhrough thc Vnlmy Opcrering Bant Accouot. (Scc scstiou oD "Accounriag for and Paymcrrr of
Operuing Erpcnscs,')
8srg[io,B;
t- FERC Form No. I:
A. Ar a.aruel iumrury of cnvtronrucstel aod pollution cootrolcrlxndirurrs will bc
prcpmcd by SPFCo ud rubrnlned to tht Ownert by Februury lJh of fig krilorlinfl
ycur, Thir tunrmily *'ill dcuil tlx abovc.rc{trtnce ctrpcrtdirults byi
(l) CapitalAdditjons
(1) Capitd Rctimnrcuts
(l) Opera$m E*6nses
(1) Maintcnance Expeoscs
B. If SPlto il nol ublc to scgrcgstc thes{ cosl.r, then nuonlbh estlmates for erch fsr
t.bc abow nlrll te rcccptatrle.
C. Ttre deslred format of thc nbove rcquirtmenr informauon will bs as indicrlcd on
FERC Form No I pages cntiilsd .Envirunmcfltel Prorectlsn Frcilities" and
"Environmenul Proterrio[ Erpcnlci" (nrrrcndy pqes 4?.E and 4]9. rcsFEctiruty).
t.
J.
urs/93 Hcrrh Vdoy OFC Prtp ll
I
2
3
4
$
6,l
8g
IB
11t2
t3l{
t5l6
IT
18
19
20
2t
22
23
21
26
26
1
1. Othcr Repoting:
A, Operathg st.atJstics rtquircd by tIc Accounting Commirtcc will comc from the
Oponting Committcc who will gct thc rpptopriuc informuion fmm SPPCo's
Opcmtlon Suppon Grup.
B. Aay otbcr i.uformuion ncdcd by cithcr cornFrny sitl bc finuished upoo *rlrco
rcqua$.
lnfoUq Trrxcs'
Eacb O*nar *ill pmvidc r dcullcd list of tie trr lnfonmtlou lccdcd for dm pteocdlog
ycrr. from tlc other Ou,Dcrs by Mucb lst of cacl pu. Thls infsrmuioo is nqulred io
ordcr for cach Oqrucr to complctr ticir ono &dcrel and Statc locoruc Tar Reams.
Frri O*os will hrru 15 dryr ftou Gc n*i6 of ury infonartiou rc4ucsil (otbcr thtg trr
ltrum ioformadoo) to supply tIc rcqucstcd infonnadoo la wridng. If the idonnatioo
rcqucsrcd must corm from a.o audito/s ttpoG thco ttrc Owuer furalsthg srrch tofoffrltion
wlll hrvc 45 dlys from thc dote of nccipt of raid rcporr to furaisb tbc re4ucstcd
lnforudou,
lnforrrmion Dccrsry far corylcning | [a rfirtr r/ill bc povfotctl to ceh Ovopr wirhio 15
fuyr lftcr &c ncp I sld 2 lbow hrte bccr ldisficd.
SPfCo rdll fuiufuh cash O'umer a sipnd cogy of thc Nonh Va.ttty Fo*tr Plrat Projca'r
Frd+rtl Putoctthtp R.enra by Augus 156 of crch par.
t,
{.
awfi\t{orth Yrloy OPC Prn (t
ill
tf ll
iill
33 ll3{ ll
fill
FLIEI {CCOU|lff$:G OtiIEF! lt{F-q
(Opcntrng Agxrrun[ Scrtlcn E]
I. rrCcnunt l5 l-(l+tpnrer4r=snqlxnd S]c{Cl Oilt:
Accouil l5l siU rcflrd Oc monthly ftrcl rtocl (tovcntory) brlurec of crh Comproy.
Each Com-pufr corl invcolory rlrrt ulill bc_oqurl botb rors rnd doUrrs. up ro Oc miaisuin
in'rcntory lcvel crtrbtisbcd bf tbc Opcruia3 Conmincc. Coal iortiloe lcvilr crcccding cacb
Compenfr mhlrrum tooro8t tham qrlil bc tltocucd ln ucordme witi rhe OFC rcction V.?.t.5.
wfih r$c ryeri]Sc pricc daenniod isdividuelly bfficd on Orlr romrgc rhrrt rnd r[c rrud corts
eslocirtcd wilh tbos. toos. At ruct tlrw u tlc turl toonrgc dmgr hlor tbt mlnimuil! ..u
squqlirjng rdjusrncot sill be roadc to mrkc Oc Comprcies rhru qud. bcxt om rnrl dollrn.
Dlctcl oil iavcotory *iU rl*ryr rcmrin cqud to cch Compury'r owncnhlp perccnrrge.
A. Fuel Purrhrscs:
All turl (coel r.od diescl oil) u rltll u 4gticrhlc t&l Er,
rrarportr$on rnd rdrtcd rtfuadr, ud lcrrcd nil crr coeu for ttc NodbVrfmy Fo*cr Pbst Plolo{r wlll bc prrrbscd. vir rpectflc corl ud oilcoores or purcbrsc ordsn -rnd slll bc prid tor tiroujh thc OpcntinsTnrl Account boc.d on crh Compra/r orrmatbip prctar4e.
P. h{c{ni fnrcoal rd dipcl oX}
1, Erch Comprny rlll cmpuu thcir rvcngo loveuory coat by rddinf tlcir bcaloutog
brlrocc (toss rod doUrn) to rny rppropriae pdcc or pbysicrl lov'cuory
rdJumcou, plui currcil nootb'r rcceipa (blrcd oo tlcir plur oroc,cbippcreatlgc) rad dividiat tlcir totrl dollrr toourl by thcir totd rom. Erch
Coopro/r lwngc ilwotory m *ill h l[c bcir fr tle en*l of od cooa$aed.
Tbc errngc coc o{ diad oU will bc compuud by ddllg tlc bcrilahg bduoc
Qdloos rad dolhr), prirr lliureou plns olrtot moottrt mccigu. rod dividiog
tE lfid dolhr mud by lb tarl jrlloos. All sanras of o{l rill h rddcd to4r*!tr
ul dcvclop ttc moubly nelptr &d prict Siwmotr
7. Dicicloil rucd for urrt-up ud {lanc stabilfuation wtll bc ereditcd to tM.t rsrorut
noathly. bucd oo eacb Comprn/s o*rcrrhip pcrcertrgr, as cnrbUrled is tie
OFC. SGcrroo V-2.5.
C. lnvenlorvJnnrfFr.
Al tid rad of rryh mootb. crch Compuy wtU boot u rdJunrmru totH l5l Esoutrt to rligu tbc iawotory toorlgr to l hvel !s pcscribcd for in tbc
OPC. Scstior VJ.l.5. Tb djusruent wlll bc mrdc u tbc'rrocfcmdr rycngc
lovcotory pricr lo cffect Et tbc csd of tic month. At surh timc tiet thc total
lnvcotory toonlgc [r bclow thc mioinrum tnye[tory lcvcl, qftcr tlc cqualizing
tonrurgc dJusrmcm I rau*d djwuncnr *{ll bc madn to cqudia thc pricr p(r ron"
u2?r92 Nrr.h vrlu; OPC Prtr {tr
ll
lIll
i3 ll
i[ll
D. Adisstocss:
l. lnvoicc
All corl involcc adjustmcnu will bc rcordcd in the cuncnt busrncss rn*n(h,
bs$cd l)n thr rccalculsriun of rhc nljuurucntr impact on each cr:nrptn3,'s cor.l
o*'nership utd/ot coll consrmption. for thc period cortrcrl try ruch ,rrllustmcnts,
n. Quality
All quallty tdjuumtnts will bc madc t0 both BTU urd doll,u vdum, Thc,Jollar
vrluc *,ill he based 0R thc price pr ton is cfltct on lte lint day of thc month rhu
qurliry wui 0or *ithio conmcual timiu.
3, Tnnsponatioo
Any rdjutrmcnr rtsu[ing from l change in rdl trunsponution cosr will bc
rccorded in thc currEnt busioess month bascd on thc rccrtculrtion of thc
djustment't imp$t oo cach Compaq!,'s cod os',trership adJor coal consumplior
for thc pcnod covem{ by srcb rdjusumnts.
1. Scih
r Lordsitc - Scalc cslibruioor lre pcrformed oncc r yru with l rnprt*rtrtiyc
from tlre Compaaict to obrcrve.
r\tliusunents bascd oo loadsirc scqlc calibratioor will usc a wcighlcd s,rerrgc
price, for rhr period Oe scrlc $ras Eot calibntcd corrcctly, and tr booked inro
inventory.
b. Pl.lnt
i. Thc scdc of record for plat: cod couumgioa will bc deFmc in tlc
OPC. Secdoo V.
il. All adjustrncrt$ bascd rrn planl scel* wl[ bc boo,ked according to r
nmthul mutuulll,agrced to hy tfie Aecounting Connmiuee aftrr m*ing into
considcrarion cod inrentory ud plant opcruing stuis{ics.
5. Ptysical lnvcutory
The rsc$od and fngurocy uf cooJ suppll' phyricnl invcnlorieg atd tfie ntethod
by which physicol lnvcntory sdJuslrnents uru allucured to each Comp,a;ry '*iil bc
pcrformctl ln accordrnce urith the "Vnlnny Coal Plrysicrl Invrntory Procedurt*-"
lI. Acc urnt 50 I (Fue I nndfucl- I{Udliq& E r FnsQl
All labor, marcrials, supptics, md ttlued crpeqrcs for coEl urd oil will bc chrged
to this sccqufit,
A. Fucl iCosl snd0it):
Each Compury'r fucl consumFion cost *ill bc rrcodod in 0ris atrount bued on
the pricing dctcrmlnrd in Section IJ.l. of lhesc Fucl Accoundng Guidctinss. All othcr
xljusuucnu tffccting coal coasunpion will bc tucordcd in Ns ffico$nt.
UrIdTg NortIVdnyOPC Patr {{
I
D
e
4
D
6
7I
9
10ul2
r3
1d
16
16
t?
18
r9
20
?L
22
232t
26
26
28
2g
s0
81
32
3g
3{
35
36
8?
8E
3E
{0
27
B. Ercl#nadling.Erq$.tff:
All coss of handllng $c corJ (rsm thc nrl car to thc bcginuing poiat of thc bctr
fccdiol &e boilcr crill bc ctrargcd to this eccounl. rloog *itb dieerl oil tqlodin3 coss,
Tbe fucl-hudling cosu corri.tt ol labor. mstcrial*, aod supplics. rfirniponuion, fucl
tcsting, ud rclatcd crpcfiles, Fucl-hudling cxpclscs viU bc bascd ou csch Compa.ny's
oumership p€IcrtrEse.
Itr. Coal Ounliry Monitnrinl
A. StlFCo Conqact
Sicrn Prcifi'c'r Po*cr Pmdualoo Dcpuuem Eooitotr tDe qruliry rod will
coosrct Joiu Frcilitirx Aaouetio3 o0 r,hil rdjusmcoU nccd to bc made,
B. BllqhRme Contrnrr
Shrra Prcinc srU baw r rnlnirlur of ouc eruplolrc. on dtc u Valmy to monrito,r
compliancc witb cootmct qualiry spccificetions. Erch rainlood dclivcry will bc
omplcd and compand to spdlicetious,
Sicnz rrill l.tsilll ud mriauia softwrc to rronitor ooEtntt rpecificedonr rad
will dctcrndnc lf each uaintod ffi qrdity rpcd6catioos.
Thc rctpou,ribb tmplopc rill oodfy tbt phat n:putatcadot qf Oc nculU of
cch tninlod qurlJry rcs.
Tbc plent nrperirtcndcut wlll mrlr rll dccisioes rcledve to rcJcctloo of uy
trainlorl &llvery drr o noooropliuc: wtth qusliry eeifuioos.
IV. CcaI Contmet Audltin$
Eech major colJ csuErot sbrll bc iudltrd rnnually undcr ttc dlrtctioa of ttc
AncursttD3 Cortrroitten.
V, U+ac ClarSC
A,Tbe usege chergc siI h detcrnincd by the proccdutr oulircd h &G OfC, Setiouv 1.1.4.
alntgt l{orth Vdruy OPC Pnrr {tr
I!
3{
$
6
7IIl0tll2
r8
1{
16l6
11
IEl9
20
21
222t2t
25
26
z7
8E
29
s08l
B Sixn si[ prcpuE r$onlhly I rcpon dcuiting dl ihuod crpcnms applrdrh to rhc
Nontr Vrlmy Porcr Plmt. crcludlng cod utd dicscl orl for tbc ririxr rrccnr ll-
ruo{th pcnod" Thc lcpon nill dro (qrrtl thc rccountlog of dl ml.1oi ourrgcimtncad crpco*r is crccro cf S2r0.m Th& rEpon r.iU be srad ro c*hrlac
tbc ucrSc ctusc to bc urod by citber Computy rbcs sdcs ue mrdc (rom Osrr
rbut of thc plrat Tbe um3c chargc will tre calcuhcd by tbe last dly of erh
moott rod wiU bc nscd h bl[iog rty Mcgo*ru houn prc[ud (rom thc sclhdsrbur of &c pleat duriry tbc followiog rmotb. Cophr of tbe calcuhtion will bc
provirtcd to tha Opcruia3 Coomiru.
Sirrre hcific For=rcoopty
AEndiDS Commtq Mctdrr
AZi4/b.*
Amdag IiGtnt
afifi?lffih vrlay OFC Prrr rG
12
tgl{i5
18
L7
18
rg
20
2L
Io
3{
s
6
1II
10tl
22
28
24g6
26
27
2A
2g
30
31
32
33
3{
35
s6
3?
38
39,t0
{1
12
{3{{
46
48
47
{E
49
s0
51
62
ES
s4
E}SIrEM A
Ouidtlincs [or ltrtennining Whcrhcr thc Cort of*
"'#,il.oTll,tr ffillfstt# Er Fetscd
Tttcx guidelinct hrvc bccn prcpard irt ordcr to dcurmiuc wbetler $e cort of a.u itcrn
purcbascd or lnualled g_the Ngnh Valrny Suam Plant should be CAPffALEf$ to vrlml Plilt
ls Scn*c or L\?FI,ISED to r Vdmy Opruion & Mdnenure (O&.lr,t) Account.
A. NE1V ITENIS OF PLAAT
Tbc cost of t}c itcm mus;t be capitdizcd, through the usc of r Valmy Budgct [crn/\t'ork
fuer, if ALLof $e lollon'iog guidetincs arc meL othcrwisc the cost must be eipcnscd to rhe
tpprtpnuc vrhny O&Jvl accounL$:
l, Lifc Frne$nnc!
The irm punherod/iutullcd mrst bc crpoccd to la$ (bc used rsd ru ful), tfuorgh
nrrmd urq il hrsr ooe (11yeet.
2. C06l
Tbc installod cos of tic iuro ourcrcccd Se0m.
3. U*it of Plent
Tbc itrm mus be r complcte tnit of plaut' m bc I major portior of a lrrgc 'ulit of
plEnt'. ("Unis of Plau' b to bc coo$isutt sit[ thc utriu found in thc Valmy Complction
Ccst Rcpon or. if not fouod tberc. u dcfincd by FERC). lf not aurc, plersc call loiat
f8d[dc$ Accountiug.
B, REpLACElvlErIr OF UryfrS 0EEITIISI
l. Rcplaciog r Compk*a Udt of PbDt (Erisri4)
An ImDrnvcrnant urd Rctllerpent, \ltork fucr mst hc trriucn to proprly rccount
fsr rhc mplrecmrat of tbe ium jfthe itcrn trEut rll of tbc critcris sct forth ltr 'A'
lbove.
lf somc of thc criuria i0 'A' ur rot mcq lher tbc ltcm mufl bc crpctrscd to a
VrlEry O&IU ffinrnt Thc origlasl itcu Oat ls bciug rcplaced gillhg"netiud fmro&sounting rccorda thur r reticrncnt is roqukd.
2. R+ldrf r Meiar Po{iOn qIr tfitiLpf Pliru fEri
ncrsc crll loinr F*ilider lwcorrrrring, ss this mus bc dooa wlt^b thlr tppmval oo r
caxc by turc bnclr,
C, OFTICE FLIR-$ITUR F .t EOIIIPMFIII
Thc purrhruc of all Offrcc Flumiturc mcl Equipmcnt mutt follow fie critting SPPCo
guidclines in dctcrmining wbet[er or oot tic itcm{s) is to bc capimlired or crpcnscd. IJI itcms
lUrUlbe taggcd wltlr ur lnvcn(ory eontrol nurnbEr ud kcpt trrcl of ufirll 0rc iarn is propctly
dispoecd, rcgrrdks of *hcthcr it is crg{tdircd orerpenscd-
8t27tg2 Nmh Vrtay OPC Prjr {?
il-
b,
I
2
g
{
Apfcndlr I
lqEFtory {lloertlon. Frrmlllc
8f8?Ol ftqttrYdqr OPC Farp o
I
o
3{
3
6
IIq
l0
1t
l2I3t{
t5
r6l7l8
19
202t
22
732t
25
26
z7
28
a9
308l
s2
3{
36
s6
3?g8
s9{0
{1{2
{3{{
{5
r6
{?
18
49
,s0
sl
s2
63
5{
3S
Errmttlt No. I
, As*ume thu (a) tbc mininum tnvcolor) levcl fnr t.be suuot as cstabUshrtl by, rhc Opraung
Commincc tr 32,5.000 tons. (b) tbr rutioo uoctprlc u ttre rad of thc moorh ir 475,000 iuu. (ci
fnr thc mofl rcocnt tstlvc roo$thE tbe rvengc totd statio! usagc wsr 80 frcrccol (d) Idrbo's
rvcrasc usc of thc sruioo m,s ?0 pcrac[l uf Oc arcngc taul Ectioo uslgc of 80 6rtrnt. rad (c)
Shne Prclficl rycrage urc of tle suti<ln was 60 pccccnr of tbc avcrage toral ililion usrgc of 80
pcrcsnl. Uodcr t[csc rssumptionr, ldilor recnryt usc of thc garion for thc moil tt(tnt twclvcltorthr es r pcroEnugc of thc nwngr totd cu{rou uragr *ould bc ?5 pcreat (10 dlvtdod by t0),
Subtructing that 25 pcrccot froru 100 pcrcro{ '*ould rucull in l&ho bcrug dlocatod ?l pcrcrnt of
&r cresr toru in $c stockprlc iovcntory &ovc lU,Ofrl toss. Siocc lddro'r mrxirauro dlocatiun
cslrot crcccd 70 pcreat (unless Slem F-ific'r rllrc of thc rtatpik crrcods 3ffi,ffi oos]
whicb lr lcrs t[il irr sptil brscl oo $ulon uti]izatlon (71prccu). ldrbo trould bc *llocercd ?0
pqrcaoi of thc 150.000 crccsr toal in thc slocLpilc rbotr Oe $0f50 r.fter-buru etlecuian or
105,000 toor,
Undcr tlcsc rs$mptioos. Si+m Prific'r sycn8r urc of ttc ueion for tbc ruffi rc.rol trrctw
moothr .s r pc{scougc of tbc rvcngr totel *rtioo uslgs *arld bc 75 pcrtcut (60 dividGd by t0}.
Subtrrting hu from 100 pcrccst tould rEsul io Slcm Prci,6e bcing dlmtcd r 25 psreot Orrt
of tlt cxccu toor iD ttc stoclpiL intrcatory rbove 125,ffi toor. $lne Slcm PrcUlc'l mtnlmum
dlocuion clmot bc lcss then 30 pcraeot (uqlcs Siern FrciliCr cbsrG of Oe noctpih crct!,4c
100,000 tons) whkb [s 3rtucr t!r.o lu spllt of tlc exetc bEscd on rtrtiaa utiliatioo (35 pesnO
Sicrn Pmific would bc dlrcarcd 30 pcrccnt of thc lJ0.0m erccss toos h tbc goctpilc $ovc tbc
50f50 ofur.bu$ sllocatioo or d5.ffi0 toas.
h tb& cr.rmpla lda.bo's shrrc of tlc uockpilc woutd bc 267.500 tosr; rhr & orc-brlf of rlc
linr 3?5.000 toos or 162J00 tonr plu 70 pcnccr of tle 150.m0 creetr toor ia tle uochpllc
rbove 32r.000 locs or 105,0fl) toor. l62Jm toor plur 105.000 toor e4urlr 26?.J00 toor.
Slcm Prifrc's shrc of tbc socktrik rould bc 207J00 tors; tltu ir oac-lul(of tbc firil lU.m0
!0or er 16X"500 tous plrrs 10 pcrmt of tlc 150,ffi croE3i roo.s io lh. gffikpih c 4!,ffi tous.
16X.500 tCInr plus 45,000 totg qsrb ?07,500 toru
ln rcqrdr.occ trit! Scctiot v.l l-J ol ttrir Olt, thc [ollo*'ing erlmplcs rlturu.rrc ho*,thcVdrny corl pilr wc"rld Lr dlocrtnJ under crnain cururnslrrr.rs.
For funtcr crarnplt, rsswce thc stsuorr rtocbprh ru t50.000 too! lt thr c-nd of the mouth
ratficr t[ot {75.ffi toas- Uoder tlc ot"bcr ueurnpiool ra forth in Ersoplc No. I rbolt, Siem
Prclfic'r rhorc of tlc u*ion sockpilc rould c*ced 300,000 tons. Bu6d or t[6 dlocuJoo sct
forrh $ovc in Erample No. l, Sicrn Pociflc's rbur of thc $tockpih would bc 320,m tour: tbar
lr,ooc-helf of tbcfun315,ffitoo!or 162J00toosplru30pcrccotof thc52J,fficrcrr$torcin
thc rtockpilc totr thc 5U5O rftr,r{nrrn rllocurioo or 1J7,500 toos. 162,500 toor plur 175,500
tonr cqurh 3nm tonr. [n the cveot Slcna Plcif'rc'r rblre of tbe stakpllc ercecds 300,0{10
tons, cod in & ilEtpilc rbove this rmount will bc ullocud bescd sobly oo rtuion utdiatioa
wlthout limht{ Hrbo to r rnuirnum eUoccUoo of ?0 pe:reut rad Sicm Pu,cific to r rnininlum
dlocation of l0 pcrer- Io thlr erunpb. thrcc (l) tcpersrc rllocaioo rmtlodr soutd tr util,izcd to
dlocatc tou ln tlc stockpilc. Fu:t l:5.0m tons would be dividcd 5O/50 r.ficr buru or t6?,500
tons to clch Sicm Prcific and ldoho. Sea66. thc wrt {5$.}33 tons (300.0fr} - 162J00 =
l]7.rCI0, t37.300 dividcd hy .30 ' 45t,311) would br dlocetcd ?0 prrccnt to ldr$o (320,833
t*n*t mtl 30 pcrccnt to Sicnt Psciflc ( l3?.500 to&r); r! this point, Slcna Frcrllc hu 300.000 tou
in its rharu of thc stockpilc, 16t500 tonr plru 137,500 roni e4uatr 3m,m0 toor. At this pornl,
?81,331 tonr of tbc toulr of 830.0frt toas iA $c cution rtoctpiic brtc bctu dlocsEd. Tbir third
rhp u ro rllocrre $e cmainin3 66,667 tonr in tbc uuioo $tir(Lpik. bud oo r&tioo utiliardoo
*ithour Llrniun3 ldrhos rnrrl$nffn altmstlm to ?0 prucrn ud Sienm Prifla't minimum rllocuio*
6t21l*t No'rth Vdru; OPC Frgr {9
Ig
q
{
5
6
7II
10
11
12,
13l{
15
t6l7
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20
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22
23
24
25
26
27
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29
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36
37
38
39
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43
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50
51
52
53
to JCI F:rcrnr. Lu Exnrnplc No. I,IdslLr's aycrcgololal $ilion ussge wils 25 ncrccnr which r*hen
suhtrrctcd from 100 pcrcefit rtsul(t in ldlho hcrng rllacotcd ?5 pcrccnr-of rhe 66.66? ronsrtrnuning ln th9 stockpitc or. 50,000.tons, Sicrra Pacific's aucrige roLrj $otion usagc u,rs ?5
trr$!nl whir:h whcosubtracrd ftorn.l00 pcrcunt rr:sulu in Sierr.r Puailic bcing rllocaredi5 Jrcrccntof 66.667 tons runnlniig in thc stockpite or t6.667,
ln this exarnplc. ldaho's shart of thc rtockpilc would bc 533,331 tons; tlu is, one.half of thc
first 325,000 l$ns o_r 16t,500 tonr, phu 70 pcrccot of tbc ncxt 458,333 toss in tbc stochptle or
l?0,831 toos plus ?_5-p_rceut of thc rlm.r,iqi.ng 66,66? toos or 50,000 tons. 162.500 rods plus
320,8]3 tons plur !0,000 t-oul cqtrqlt 5llJ33 toru. Skrn Pscific's shut of thc sroctpile would
be 316,667 toar. One-helf of tle t-tru 3?5,000 loer cr 163,100 tons, plus 30 pencor if tlc ocxt
458.313 toos in thc stochpilc or 13?.500 tour plus ?5 perccnr of tlre rernalnlng 66,66? tun$ or
16.66? tonr, l6?.500 tons plus t3?.500 tonr plus 16,667 toas cqunls 316.66? toar.
F,'rmlllc No ,
Assumc (0) thc minimum invertory level lor thc rtarion rs cstabtishcd by t[e Openung
Corunittcc ir 425.000 tons, ftI tbc Sutrou stockpilc at tlc cod of tic oont[ is 550.0m rous. (c]
for 6c mosr rccctrr srelw montr dc rvcrrgc ronls $trdoa u*rle wls 80 pcruut (d) ldabo'r
sveftryc usc of thc guioo was J0 pcrocot of tbe rvcfirgc tota,l nlrioo usagc of E0 prccut, and (c)
Sicm Paciflc'r rrcrlge Esc of thc sution wru 50 ptrceot of tbc rvcrage ioul strtloo usagc of t0
pcrErot. Uodcr &esc asumptloo+ Idrho'i lvcrEgr usr of thc $sdoo for tic rDott ["msr tryclvu
moorhs ss r pcrpcruge of the evcrage totd *arioa rsagc *ould bc 3?J p6rci$ (10 divldcd by
80)- Subtracting tlat 31J pcrccut from 100 pcrccut would rcsult in ldrlo bclag dlocard r 6?-5
pcrc.nr share of thc ercess toas ln tbe rtockpilc ioventory rbovc 4?5.000 tour. Sinc this ir tcs
th.rt ld$o'r rorximum obtiguiou to 70 pcrcent,62.5 pcrseot sonld leprEscDl ldaDo'r shrrc of tlc
125,m0 clrcss tous io Ge aoctptlc abort ttc 50/50 lftcr-burn allocuioo or ?8.125 toos.
Uudcr Ocsc asnuopdonr Siem Prific's orcmge usc of tbc gariou for thc nrost lceot rwclvc
mooths ss I pcrccotage of tbc rvemge totd srtioo usagc would bc 62.5 perccut (50 dividcd by
B0), Subruing ttat fmm Iffi pctEcut ruould resdt ia Sicrn Flcific bcins rilocarcd r 375 pcrc*ot
rhsr of rhc crcts toos ia tnc rtockpilr hucntor), abo're 41,5,000 tsus. SIDcr thJs b b cxcrss of
Siert PacifiCs ruloinum allocation of 30 pctccnl Sienn Psific would bc sllocltcd 375 pcrccnt
of rhc I ?5.0fi) cxccss tous in tbc stockpile rbovc thc SU50 aficrturu rllma$on or 46,t75 tons.
In rhis craruplc, ldalo's sharc of tbc stockpile s'ould be 290,625 tons: t.har ig, ooe'half of the
t-rnt 43,5,ffi tons or 212.500 tons plus 625 pcrccot of tlc 125,000 cxc{sri tous io tbc stoctpilc
eborrc thc 425.000 tons or ?8.125 tons. 212.500 tons plus 7E.125 tons cqur,ls ?90,625 tons,
Sicrra Pacifk's shuc of thc goclpllc would bc 250,3?5 tous: thu r.r one-bdf of t]rc fint 425,000
tous 0r ? t2Jm tooo phs 375 prcent of thc 115,000 excrss toru in ttc rtockpih rbovc 4?5,000
rons or ,{5,t?5 tErL 212,500 toos plus 46,875 tons cquds ?5'0.375 tonr,
For furtlcr srmplc rsstrr tlat minimum inventory level for thc stuios rs csrablisbed by the
Opcraring Coducc wrs 250.000 tons mftcr tha.n 40O,000 toos, Any tirm ttockpilc invcntor-v is
3?5,0m roci o( lcsr', tlc tual stoctpile shdl be rllocaud oo a 50/50 r.fter-bun buls eveo if the
Oprariag Committcc bas sct l lourer rutioo minimum inveutory stochilc level for thc station
bclow 325.000 rons. Under t-he otbcr *sumptlous set forth ro Exmptc No. ?, the fntt 325.000
tons would bc ailoc.rted on tbe. 50/50 aftcr-burn basis. Tbc 2?5,000 cxccss tons in thc stocltpile
invcntory abotc tlc 125,000 wuuld t'c nllocarcd belcd oo i{iliso utiliurtino sith 62.5 5xcccnt of
thc 2?5,000 ex(rs$ ror!$i or I40.615 tons bcing allocaad to ldsho and 37J pcrcEEt o[ the 2I5,000
cdccss toru, or 84.375 tom being cllocrtcd to Srcrm Facific.
8t21t92 NorthYdoy OFC Prgt 60
IIq
{
5
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7IIt0ll
12
13t4
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16
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18
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In thir errruple' ldshds rharc of t[rc rtockpilc would bc ]03.1X5 tons: thu is. one-hrJf of rhcfirn 313.000 tooi or 161,500, plur 62.5 p{rr':nt ct tlc ntrt 3?5.000 ronr or l4$"GtrJ rons.
[6?*100 tons p_lus 1"10.625 tons equdr J0],13J tonr, Sicna Prciflc's sbuc of rtre stockpilcwould trc 3{6;875 tousi tbat is, one-half of thc first 325,000 tofts or l6?,500 rorr ptus i?J
perccil of tha mrt 225,000 tocc 0r t4,J?5 toos. 162,500 tons plu 8aJ?5 rons cqurli l{6,t?5
TEII5.
Finally, in Erample No.2, as$xr thc mioimum iovcotot) lcvel for Oc rt^stion ss csebLisbcd
by t&e Oprulog Coruuine wos 500,0S toru nthcr thrn {00.000 tons. Any dnac &c Opcnting
Commincc euublishcd r minimum ioveotory stoctpilo levcl thnt excerdi 425,0m, tte fint
41S.m0 mns shrll bn rllocaHd on r 50/50 rfur-bum brsis ?itt thc toru in thc stmkpilc $ove
425,000 toos bebj ollocared burcd oo guloo wiliraioo. Undcr Oc othcr rssrmptions sct fonh tn
Eramplc No. ?. the first 425.000 toos would bc rllmard oo r 50150 r-frcr-buru basir. The
125.000 ercess toas io tlc stockpile iavcotory rbove 425,000 toal would be ellocatcd ba$d on
sution utifizatoo witb 62.5 pcrcrot of thr 125.000 q1ec6$ tous or ?8,125 toos bcing dlocacd to
l<taho and 375 pcrccat of tlc 125.(n0 crsess uxll or 46.$75 toos bcing dlcrtcd to Slcna Frcilic.
ln thlt ctmplc. ldrho's shrr of thc stockpilc sould bc 290,625 toru; that h onc-brlf of tbc frnt
425,000 torr or 2t2,500 toas. plur 62J perccnt of tlc ocrt [15.000 tou or 78.12J tou,
212,500 tons plur 78,125 toas equrlr 290.625 toos, Shrm Pacilic's sharc of tlc stockpilc wocdd
be 259J75 toas; Od ir, ooc.bdf of tbc fintt 415,000 tou or 212J00 toos pltu 3?5 prccnt oftc ocn t25,000 tons or 46.t75 tors. 212,5{X} toos phs 116.8?3 toos equek 259.375 toas,
atnr92 Nwth vrloy OPC Frfr Et
I
2
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App:adlr I
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utfi9a NirrhVdsrOFC Pra cl
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Appcodh I
Coel Flutslcrl, tuFtnrp ProcdFrc
t/I?,ll t{crhYdryOPC trA !l
vAr MY cqAt flry\rral_rhfw\To8,y pRocFru rRFs
SECTIOH CONTENT
I. Srpscadd Scstioar
lI. Crurd
epptlc*nity
Relcreocps
Ptyrlcrl IlvfilW Froccdqrs - Vtlul Corl Ftlc
IgttotfrT Afiunrautr
o
o
o
o
o
huporc
Blctgrulod
Dcfiaidors
Itr
rv
u:!?It8 t{oilhYrlnrOPC Frlr Ir
I
2,
s{I
6
?Ig
0t
SF(TI0II l' $qrrradrd Smttont
Ttt ulf thua rstioo thar rt nrpncded by ilr ocu prurcdurr m firc followiag:
3[ otOFC, Sccriqn V.t,l,6tll of OFC" Scctpn VJ,{.l!I of Appcndk !. Sccrisn 5
Thcrc thrtc rcaioo erc rupcrrded in &cL cntinty, All cnlrcr pmviehru mrnnin in efftcr,
Fqgc
Prgc
PrSc
I.}
tLl
ut0,/*$l{ctb VdD, OPC Pr$ i6
SFCTI{F.I lt'-. . C,cnrf'l
Purporr
Irckground
Drfinlllonr
Appllcrblllly
Tu rlctdl tlr rccunting &ltd ph).rual intcntrtry prwcduar $fll tL.' rnik thlcud hventory s $c i$onh Vdmy h*rr Pluu.
Phyriccl lnveotory rdjurtmcou to rhe csd invurury u Vrlml rho* mr:t';tluctuotionr. both nhovc rnd brlo* thc "b.ook invcotorl"_ Thclcfluctullonr may be due to inhcruor inaceurleicl ia rhc iarcniory rufld!'
itsclf. Thc odjurtrocnts do nut neccrwily rtprElcil u lcruxl grin rlr lorl oi
cocl.
Nucksr F*n-titvTFrA rncthod of mcrsunng the drority of I cod pilc. Tcu [ot* uc
dnUcd rn thc pilc ud l ndiomlvc probc u inrcned inro firc hdc. Il"rdr:rr+n
pt$f,i$* through Urc pih ir ncordcd hy a lcigcr c0unr6r. Thr rnrr*unl rlf
ndiation purirl throqh $e plh is complad trirh the rcdiuion puscd
through ! compoctcd coal mmplc in a contdnm of knarvn rolume rnd
dcruity lr crlotlard oo rhis burir.
Aorinl Sunr, lA mcthod of nruurinj ttc volumc of tbc corl pilc usi.ot leddphotojnphy.
Acqriry
Thc totd lmouil of cod purctrucd ud corsurncd during rhc pcnod
stncc thc lrst mrcy.
Rcfcrtntu
toint FxiUdcr Accouotlo
Accor*ting Sccdo& ld&o
No rpccilic mfcrrrrct*.
g Lloit. Slcrn hcrfic Fourcr Comproy; Furh
Porcr Comprny.
1/18,'gl NbahVrlny OFC Plgr 56
24
1
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3
.1
c
6
J
EI
10
1Ilr)
T3
r1
t5
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25
26
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28
29
303l
32
33
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36
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38
39
{0
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SFfTION ltl' Ph]ticrt lqventor]PtoccdurqE -Vrlm5 Pl:rnr Conl Pite
Nuclcu Dcusiry Tut lqff!
D*nsity tcsu h^rre bcen schcduletl tuice i ycu thrnu$h l0tE.
IQf,9 nnr'llarcr
Suning in 1989. dunritl, rcsrs q'ill be scheilutcd *nrc r l.rilr
rluring rh* spiing. [n the fril, rhc SPPCu, tuperuiror oi Jorr:rFtcilitics r\ccounting and tbc ldilo l,owcr Cornprny l-ucli
lrfun;rgcrncnl Coordinator wiU rcvicw thc coel pilc rcri,;iry' wirh
Opcrrtrons S uppon p€r$cnorl
Thc dcnsity figurc uscd for computlog rhe corj r::r'En(0q{
rrlll he rhe cunrnt density tcsr. Should rle cunent dcnsily appcu
inlr:curare. rhe Velmy Accouoting Cornmittec rhlll hauc thc
rErponsiblhty tr: revicn and rnodify thc dcnsity figurc os nccrssa4/,
If the pllc hat not changed in tlu prcylous rix mrrntis (ia other
words. rhc plant hss bcen usiog corl from the tre$tlc anil thc
rnventory brs re muincd somewhat con$tant), ir miy he
mcornrncndad hu a deosity lcst 0o( bc pcrformcd.
Arrial Sunry An scrirl sunty to drtcrrunE thc Eod pile solume *ill be
conducted each time a dcnsity tesr is prformcd or u tqucncd by
the AcEounting or Opcndoru Dcpartmcnu,
N{airuenrme S{drtcnancr ud scdc cdibntionr rhould bc conducrsl in
rccord with mcnufscturcs' tccontmerduionr. or !i deturmrncd
oecesg.ry by Operuions p€fiorrel ro minimize scdB eftEr.
Scalcs included arc:
o Bclt sclh r Oe Btmk Bunc minc.
o Trmk rcdc t tle SUFCo,loodout teciUty.
o Stock fecdcrr a&d trslt scdqr st the Vilmy Plrnt.
SECTTQN N: hvcutory Adjusmcnu
An inrentoty ad,puunrrut tuill hr msdc to the compury records if thc rncaurrd unrorror differs
from t-be "book :rmouot" by +/- four pers{0t of the total ltctiv'ity. 'Acltvity" is dcfincd :rs thc liu&!
ilnfirnl of corl parcbascd urd co:rl consumcd during thc pcriul sirrc thc last rurwy,
Tlr.e djnsEsl wiU be:
(Iavca,tory Dscrepancy) - {Furr Prrceat of Actlrity)
E.rumolc:
Book l-oveutory: .l{X}.000 tons
McasurEd Invcntory: 350,000 tour
TruI Acriviry: 1,00t),00O ionr
Hour Fcncot of Aaivlty: 40,ffi0 tons ( 1.000.000 r 0.0{}Discrtprry: 50,000 tonr (4ff,000 - 350,000)
Adjumrcnt to bchorlkcd: 10,0{10 togs (10,(40 " .10,000)
U15/93 North Ydmy OPC Poct 5T
II
3I
5
c
?II
0I
TUe fccuutaf Comrninrtmrytrecamr*ad djururnsbe mr& whcn thc rtitcnpurcy U lerr
Gos thc four pcnmt flgum. Thir cirur,liofi moy oswr uhcn r urlc lt found ta be mrt of
dlutmcog
U lt b,csotur ssG$rry to mrtc ra r$urtmsu, fu Accountiog Coumtttcl rill r*l thc
Operuinl Coromircc for tbo prdrbE crrr.d t[c dhcropracy. UriaS rll dds rvdlgblc, thc
Aatermisr CqrmlftE will &cidc m ra rpfrotrl*e rhrioo of th rmtnt in qucsiou Dcnen
r.bc trro cmprair A,oy diurtrctr mdB dU b. io rcmdra r,it[ itp Srriaj Hocedurtr
edrrir u0 rppeffic rlmod@s io c&d r 6c &r of tlc ilreusy.
UI?'gI HarhYdqrOFC ?.u 6t
I
2
3{
Appcndh 6
Sw{lehlfrd Crtql Alloerllon Fror$lqfc
*2Ttgr,NGlh VdEy OFC Prls 19
21
t
g
3{
5
b
II
0
10
I1
t2t3l{lst6
l?
18ls
202t
22
23
u{
25
26
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29
30
813t
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86
36
38
39{0{t
12
{3{{
{5{6
47
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$05Ii2
53
54
t?
l{orth Vdmy Swirchyud
Cost AUocarioa Procedures
turporc: ffJffi#iffi$fr:ihH,re',tff*ffi,illot:il[,?J#i
and capital additloor pcnrining to tlre NorO Velmy rwitchyrrd aru-
Erctgroudr Cosu perterniog to thc North Vdmy switchyard brvc becn nllocrted
betwccu $PFCo and IPCo bascd ou Erhibtr nA', Srgc 5 of 5, o[ ttrc'agrccrncot for the ownership of r.bc Nonh Valmy Powcr Plaar hojea"
darcd D€&nrbcr 12. 1978. Tbis is a onc-lioe diagram and Lrs ooq bccn
sufficicnt tn providlng rE rcornltc rllrcarioo of switchylrd conr
hmcdun: Cost allocation for thc Vrtmy r,r,itchyard witl bc based on tlrc plry*ical
lc,catiou or function of uny cquipmcnt or facility in the sruitcbyard. rs
&uiltd EI, thc foUgrttry thrc co'cgorha
Ceugory I lttm - Cog rlocsriofl bsscd oo usagc of iodivllrrll oqrriprrcot-
Tbo u.acbcd Nort! Volmy rwirchyard plor pLrn, coorrol bui.lding
plaa. aod ooc.lirc dirgram indicuc ttrc cost sharing perccotages to bc
utilizcd for dl coc dloc8tioo h osc of tbc followio3 ratior: lm% SPPCD0* [PCo, t5% SPPCo-15%IPCo, 75ch SPPCo-2SS [PCo. or 50S
$PFCo-J0E IFCo
Cargory I i$rls bcludc. but rrr oot limitd:o:
$*lrchyro Equigrocor
Foundrdoqr
Groundisg
Smnurcs
Ciffiit Brcrtcn
Trasformrs
Buswort
Macr Hmsc Eguiprcot
Paock
lndivlfuql Circuit Bn*crs
Switclcr
Rdryiog ud Coouol
AC rod DC Anxiliery Power Syucms
Buary Housc
Buildios Strucnral
Buttcdar md Chargen
(oot cornraunications)
Station Scnicr
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-21-12
IDAHO POWER COMPANY
REQUEST NO.9
ATTACHMENT NO.4
Amendment No. L
to the
Operating Procedure Criteria
for Valmy Coal Diversion Procedures
and Usage
This AMENDMENT to the NORTH VALMY STATION OPERATING PROCEDURES
CRITERIA ("Amendment No. l") is entered into on January 1,2012 (the "Effective Date")
between SIERRA PACIFIC POWER COMPANY dlbla NV Energy ("NVE"), a public utilily
corporation duly organized and existing according to the laws of the State of Nevada, and
IDAHO POWER COMPANY ("lPC") a public utility corporation organized and existing
according to the laws of the State of ldaho, and duly qualified and doing business in the State of
Nevada (NVE and IPC are hereinafter referred to as the "Company''or "Companies").
NVE and IPC jointly own a coal-fired power generation facility in Valmy, Nevada (the
"Project"). The Project is operated in accordance with the Operating Procedures Criteria
dated February 11, 1993, as arnended from time to time ("OPC').
Currently NVE procures all coal for the Project, pays for the coal and related charges,
and bills IPC for its share, Each Company is, in accordance with Section V 2.1,5 of the
OPC (by an amendment eflective January 24,20A3t, allocated its Percentage Share of the
coal delivered for each train and ownership of the inventory is maintained on a 50/50
after-bum basis. 'title to the coal passes to NVE upon loading at the source, although
IPC has an ownership interest.
The Companies now wish to change this process so that purchased coal is designated on
the basis of individual trains as being 100% for the account of IPC or NVE, individually,
to allow either Company to divert its designated coal to a delivery point, other than the
Project.
NOW, THEREFOR-E, for good and valuable consideration the sufficiency of which is herehy
acknowledged, NVE and IPC agree as follows:
I. Section V. 2. 1.5 is, amended by deleting it and replacing it with the following:
"V. 2.1.5 Fuel Management
The terms governing the management of fuel for the Project are s€t forth on Appendix
3, attached her€to."
II. The "Fuel Accounting Guidelines" in Appendix II of the OPC (also referred to as Appendix
2 in the OPC) are deleted and replaced in their entirety with the new Appendix 2 "Fuel
Accounting Guidelines" attached to this Amendment No. l.
III. Appendix 3 of the OPC is deleted in its entirety and replaced with the revised Appendix 3
"Fuel Management" attached to this Amendment No. l,
IV. Section Y.2.1.6 of the OPC is deleted in its entirety.
V. Section V.2,5 of the OPC is deleted in its entirety.
A.
B.
C
VI. MISCELLANEOUS
A. No Representations. The Companies acknowledge that, except as expressly set forth
herein, no representations of any kind or character have been made to or by any other
party or any of their agents, employees, or representatives, relating in any way to this
AmendmentNo. l.
B. Entire Agreernent. The Companies each warrant that no promise, inducement, or
agreement not expressed herein has been made to them in connection with this
Amendment No. I and that this Amendment constitutes the entire agreement between the
Companies. It is expressly understood and agreed that this Amendrnent No. I may not be
altered, amended, modified, or otherwise changed in any respect whatsoever, except in
writing duly executed by authorized representatives of the Companies.
C. Dcfined Tenns. Capitalized terms in this Amendment No. I shall have the same meaning
that they are given in the OPC or other written agreements related to the Project, unless
this Amendment No. I expressly provides otherwise.
D. Effect on OPC. The portions of the OPC that are not modified or amended by this
Amendment No. I shall remain in full force and effect.
E. lntcrnrrltatiqn. No provision in this Amendment No. I is to be interpreted for or against
either Company because that Company or that Company's legal representative drafted
such provision of this Amendment No. l. [t is understood and agreed that the language
of this Amendment No. I is a result of the joint efforts of both Companies, To the extent
that there is any conflict between this Amendment No. I and any prior written
agreements related to the Project, the terms of this Amendment No. I shall control,
F. Scope of Amendment. This Arnendment No. I shall be binding upon and inure to the
benefit of the parties hereto, and their respective heirs, executors, administrators,
successors, and assigns, who are obligated to take any action that may be necessary or
proper to carry out the purpose and intent hereof.
G. AuthOlly. Each party to this Amendment No. I represents and warrants that it has the
requisite authority to execute this Amendment No. l.
H. Countcrparts. This Amendment No. I may be executed in counterparts and each such
counterpart shall be binding on all of the parties so executing this Amendrnent No. I as
though one amendmerrt had been signed by the parties.
IN WITNESS WHEREOF, each Company has executed this Amendment No. 1, through its duly
authorized representative, to be effective on the day and year first above written.
SIERRA PACIFIC POWER COMPANY d/b/a IDAHO POWER COMPANY
NV Energy
I
.By:
Title:uer . -\\/D adr', h ,. QlAtr)t--=efu".\ S,,ppi.)
By:
(
Valmy Coal Diversion OPC Amendment
Title:
Page 2 of l0
Appendix 2
FUEL ACCOUNTING GUIDELINES
I. Account l5l (lnventory- Coal and Diesel Oil) will reflect the monthly fuel stock (inventory)
balance as described below.
A. Diesel Oil
Purchases
All diesel oil, as well as applicable sales tax, transportation, and related refunds, via
specific diesel and oil contracts or purchase orders and will be paid by the Companies
on the basis of each Company's Percentage Share.
2. Pricing
The average cost of diesel oil will be computed by adding the beginning balance
(gallons and dollars), price adjustments, plus current month's receipts, and dividing
the total dollar amount by the total gallons.
All sources of oil will be added together to develop the monthly receipts and price
adjustments. Diesel oil used for start-up and flame stabilization will be credited to this
account monthly, based on Percentage Share.
3. Inventory
Each Company's diesel oil inventory will always remain equal to each Company's
Percentage Share.
B. Coal
Purchases
All coal will be purchased in accord with the procedures set forth in Appendix 3.
Each Company will individually pay for the costs associated with the purchase of
coal in accordance with Section II.G of Appendix 3, with the exception of rail car
leases which will be paid for by the Companies on the basis of each Company's
Percentage Share.
2. Allocation Of Coal Inventory Ownership
As of the first day of the month following full execution of this Amendment No. 1, a
Percentage Share will be allocated as each Company's ending inventory for the
previous month. Thereafter:
a. NVE will maintain its coal inventory on its own books in Account 151, but will
also maintain inventory records in tons of all coal delivered and burned for the
Project and separately for each Company. NVE will determine each Company's
share of the coal inventory on a monthly basis as follows:
Valmy Coal Diversion OPC Amendment Page 3 of l0
Ending Inventory = Beginning Inventory + Coal Delivered - Coa[ Consumed
+/- Applicable Adjustments
WHERE:
Beginninq Inventory is equal to the prior month's Ending [nventory
Coal Delivered is equal to the amount of coal delivered to the Project during the
month that is designated to the Company's account in accordance with Section
II.E.l. of Appendix 3.
Coal Consumed is determined in accordance with Section V.2.1.2 of the OPC
Applicable Adiustments are determined in accordance with Section I.C. of the
Fuel Accounting Guidelines included as part of Appendix 2; including without
limitation:. Scale Adjustment;r Physical Inventory Adjustmente BTU Transfer Adjustment ; andr InadvertentAdjustment
b. IPC will separately maintain inventory records for its share of coal on its own
books consistent with the above.
c. Each Company will make its inventory records and supporting documents
available to the other Cornpany as may be necessary to reconcile NVE's Project
records.
C. Inventory Adjustments
Scale Adjustment
[,eadsitc:'Scale calibrations are performed in accordance with the Project coal
supply contracts with a representative from the Companies entitled to observe
Adjustments for loadsite scale calibrations will be calculated based on
specifications in applicable Project coal supply contracts.
Plant: The scale of record for plant coal consumption will be as defined in the
OPC, Section V. 2.3 All adjustments based on plant scales will be booked
according to a method mutually agreed to by the Accounting Committee after
taking into consideration coal inventory and plant operating statistics.
2. Physical Inventory Adjustment
The method and ffequency of coal supplyphysical inventories will be performed
in accordance with Appendix 5 to the OPC - "Valmy Coal Physical lnventory
Procedures." Physical inventory adjustments will be allocated to each Company
proportional to each Company's ownership interest in the total coal inventory,
Valmy Coal Diversion OPC Amendment Page 4 of l0
unless the precise cause of a discrepancy is identified and the Fuel Committee
agre€s on a more equitable adjustment.
a. BTU Transfer Adjustment:
A "BTU Transfer Adjustment" is required to account for variations in heat
content (commonly expressed as MMBtu/ton or Bh/lb) of individual coal
deliveries to the account of each Company on a single joint coal inventory pile.
The BTU Transfer Adjustment serves to equalize each Company's heat content to
that of the combined deliveries for each month, while retaining the total energy
content in MMBtus delivered for each Company. The BTU Transfer will be
accomplished, by the transfer of tons of coal between the Companies at no cost.
The BTU Transfer Adjustment will be determined in accordance with the
methodology provided in the example provided as Schedule2.l.
b. lnadvertent Adjustment
If one Company inadvertently bums coal from the other Company's share of
inventory, as described in Section ILB. of Appendix 3, the Borrowing Company
shall repay the Lending Company by transferring tons of coal with equivalent
MMBtu content to the Lending Company at no cost at the earliest time possible,
or as otherwise agreed between the Companies. The tons of coal borrowed is the
amount by which the Borrowing Company's ending inventory as of month-end is
less than its Minimum Inventory Share. The equivalent MMBtu content of the
tons borrowed will be determined using the average heat content for the combined
pile as of month-end.
II. Account 501 (Fuel and Fuel-Handling Expense)
All labor, materials, supplies, and related expenses for oil will be charged to this account.
A.Fuel (Oil)
Each Company's fuel consumption cost and consumption related adjustments will be
recorded in this account on each Company's book of record.
All other adjustments effecting coal consumption will be recorded in this account.
B. Fuel-HandlingExpenses
All costs of handling the coal from the rail car to the beginning point of the belt feeding
the boiler will be charged to this account, along with diesel oil unloading costs. The fuel-
handling costs consist of labor, materials, and supplies, transportation, fuel testing, and
related expenses. Fuel-handling expenses will be shared between the Companies on a
Percentage Share basis.
Valmy Coal Diversion OPC Amendment Page 5 of l0
Appendix 2 Schedule 2.1 - BTU Transfer Adjustment Example
1 Oell€rBd Tons by Contrael lrom Monthly Recei€d Reporl
? Weight€d AErage ttTU/LB for all lndividusl trairls by Contract from lab Quallty Repon
3 Weight€d AEEge of (Actual Oolll€ries ' O8liwred Heal Content)4 Deliwrad Hal Contenl 'Actual OeliEriae ' 2.O0O / 1.0@.OOO
5 Nomallzsd Olstdbutlon = Equi\el€nt tons al Helt Content br Tolal D€ltErios for ths Month=
Oelll€r"d Heal Conlent + Deli\ErBd Heat Content of Tolal CreliwrleE frcr Month 'Actual Deli\€nles (EX 939i
6 Oillarsnc€ b€tween Actual O€li\rriss and Normslized Oi8trlbution lo b6 lrenst€n6d betweefl Companlos
Ashral Oelive rl€s lTon5l
ldaho
SPPC
Total
Dellvercd }lEet Gontent
ldaho Poi,€r
SPPC
A\€rag,€
Oelivered
Pffi
SPPC
A!€ragc
Normal hed Olrt.lbutlon
6ru tanrfer
Adiustmeot(Tons) 16lldaho Pmr
O€lit€nes
oelivery Data lnput
Tolal Deh€nes br Monlh
Notei
As Ocllvcr.d lor Month totC D.llverles lot Month
Contract A Coilra.t B Conuact x
30,!n9.0 5016
lo.3rg.m 5{rr
,s,7@,@ 7tt9(,
tz-4/|7-fr ffi {o,m.oo lm%
EH
50,638 (X)108,156.00 40 000 00
9,392.m
10.983.(It
u,7E.m
lL788,m
11,m.m
10,162 SO 11,785.90 11,(m
s69,512 10
652.955 25
t,lu,467.7i
7@.97A.47
880,000 00
\2j2,N7 35 2,549,431 60 880,000 00
25,506 93
23.6S1 99
79,921 25
34.260 98
39.rttz 05
55,136 92 't14.1W 23 39.412 E5
Blu's
97 71
I 1
1,616,9116 013
2,330,949,470
145,O28.00
208,7%.OO
u,o73 13
11,163 87
3,233,973 23
4,661,898 9s
Valmy Coal Diversion OPC Amendment Page 6 of l0
Appendix 3
FUEL MANAGEMENT
OVERSIGHT
I. Fuel Committee: A Fuel Committee will be established and will continue its
jurisdiction during the operating period of the Project. The committee shall
consist of thrce members appointed by written notice; one by each Company and
the Project's scheduling agent,. The Fuel Committee shall report to the Operating
Cornmittce ard shall establish, maintain and review appropriate procedures and
policies relating to fuel procurement, handling, diversion, accounting and auditing
or such other duties as may be required by the Operating Committee.
VII. PROCUREMENT
A. NVE, as the operating agent, will manage the Project's coal procurement and coal
handling process in coordination with IPC and in accordance with the OPC. NVE
will also manage coal supply, transportation, and related contract administration,
except as otherwise agreed between the Companies. IPC may not separately
procue coal for the Project. NVE will communicate to the mines when and what
quantity of coal should be delivered and to which Company such delivery is
designated for purchase.
B. The Operating Committee will, from time to time, establish a minimum and
maximum inventory stockpile level for the Project. Each Company's Percentage
Share of the minimum inventory shall be referred to as that Company's
"Minimum lnventory Share."
C. The Companies shall jointly determine, prior to the start of each calendar year, the
total amount of coal to contract for purchase for delivery in subsequent years for
each Company ("Supply Plan") taking into consideration, among other factors:
o The total of each Company's inventory target;. Existing supply contract obligations;o IPC and NVE forecasted generation for the subsequent calendar year(s); and
o Projeoted Ending Inventory (as defined below) in tons at the end of the
calendar year in total and to each Company's account.
D. Coal procured for each Company at its Percentage Share is referred to as "Shared
Coal-" Any disproportionate amount of coal procured for a Company in excess of
its Percentage Share is refened to as "lncremental Coal."
E. Coal shall be purchased pursuant to the Supply PIan on a competitive basis from
the lowest evaluated bid price, with Shared Coal requirements filled first followed
by any Incremental Coal requirements at the next marginal evaluated price
available.
1. Coal will be scheduled for delivery in accordance with the Supply Plan
and the following.
Valmy Coal Diversion OPC Amendment Page 7 of 10
a) All individual trains loaded at any mine will be designated entirely
for purchase by one Company or the other. Title to the coal will
vest in the designated Company immediately upon loading to the
train or as otherwise provided in the applicable coal supply
agreement. The Company taking title shall be solely responsible
for all costs associated with the purchase and transportation of such
coal, with the exception of costs for rail car leases,
b) NVE's designations of individual trainloads for one Company or
the other will be done in a commercially reasonable manner taking
into consideration, among other things, (i) the Supply Plan, (ii)
each Company's coal inventory and iii) each Company's projected
generation,
c) Each Company will reasonably accommodate requests to designate
deliveries in a different manner.
F. The Companies will use commercially reasonable efforts to amend or replace
existing coal supply agreements, and will enter new, supply and transportation
agreements to make IPC a party to those agreements and require i) that title to
coal shall vest in the Company to which the coal shipment is designated, upon
hansfer from the seller, ii) that the coal supplier and shipper invoice the Company
in which title is vested, including quality and other adjustments, and iii) to
provide coal quality and shipping weight for all Coal to both Companies,
consistent with coal sampling requirements.
I . If IPC is not a party to a supply or transportation agreement for the
Project:
a) NVE will pay for coal and transportation and bill IPC in
accordance with *NVE Billing Procedures" included in Appendix
2, attached hereto.
b) Neither Company may divert coal pwchased under such agreement
in accordance with Section IV.C. of Appendix 3.
G. In connection with coal purchased by one Company for the benefit of that
Company ("Purchasing Company"), the Purchasing Cornpany shall assume any
and all liabilities, including without limitation any obligations to coal suppliers,
transporters, any risk-of-loss related to the coal; and any liability incurred in the
transportation and handling of the coal, of the other Company ("Non-Purchasing
Company") with respect to such coal ("Assumed Liabilities"). The Purchasing
Company shall indemnify, defend, and hold harmless the Non-Purchasing
Company from and against all of the Assumed Liabilities.
H. Either Company may, but is not obligated to, sell or lend coal to the other
Company.
RIGHT TO DISPATCH
A. A Company's right, under Section III.I of the OPC or any other agreement
between the Companies, to dispatch any amount of the Project's net generating
vIII.
Valmy Coal Diversion OPC Amendment Page 8 of l0
IX.
capacity is contingent on maintenance of such Company's Minimum Inventory
Share at all times. [n the event a Company's share of the coal inventory at the
Project, including any loaned coal, falls below its Minimum lnventory Share, that
Company does not have the right to dispatch the Project.
B. If one Company ("Borrowing Company'') inadvertently dispatches the Project
when its share of coal inventory is less than its Minimum Inventory Share, it will
be deemed to have borrowed coal from the other Company ("Lending Company")
and will repay the borrowed coal in accordance with Section I.C.4 of Appendix 2
to the OPC.
COAL DIVERSION
A. Each Company may, in its sole discretion and subject to this Section, divert future
deliveries of coal that are designated for that Company's benefit to a delivery
point other than the Project for its own behalf or for a third parfy ("Diverted
Coal"). The Companies agree that the intent of allowing coal diversion is to
increase flexibility in the management of the Project's coal pile and not to enter
the competitive coal market or to compete against the other Company in sales of
coal purchased for use in the Project.
B. Except as provided in subsection C below, NVE will, as operating agent, manage
coal diversions for the Project in coordination with IPC to:
l. Respond to solicitations from third-parties for the purchase of coal; and
2. Issue solicitations to third-parties for the sale of coal.
Each Company has the right but is not required, to participate in such
diversions up to its Percentage Share. Either Company may participate at
a greater percentage to the extent the other Company participates at a
lesser percentage.C. Notwithstanding the above, either Company may divert coal independently,
without the other Company's participation, to generating plants in which the
diverting Company has an ownership interest ("Affiliated Plant"), e.g. IPC need
not allow NVE to participate in diversions to Bridger Station or Boardman Station
and NVE need not allow IPC to participate in diversions to its Reid Gardner
Station.
l. A Company wishing to divert coal from delivery to the Project must
provide written notice to the Fuel Committee representative for the other
Company ("l.,lon-Diverting Compffiy"), and NVE's coal scheduling agent, no less
than 45 calendar days, unless mutually agreed otherwise on a case by case basis,
prior to the month in which the Diverted Coal is otherwise scheduled for delivery.
I'he notice must include at a minimum the following:
o Source:
o Project contract under which Diverted Coal is purchasedo Mine of origino Diversion:o Company and plant to which coal is being diverted
Valmy Coal Diversion OPC Amendment Page 9 of l0
o Tons to be divertd
o Delivery month
The Diverting Company(ies) is (are) responsible for obtaining transportation for
Diverted Coal. An individual Diverting Company may utilize tsains owned or
leased for the benefrt of the Project (?roject Train") subject to the Companies'
executing a separate lease agreenrent.
Each Diverting Company assumes a share in proportion to its participation in the
diversion of all costs associated with and incurred due to the dive,rsion, including
but not limited to costs for :
i) freeze protection;
ii) claims for lost coal;
iii) transportation;
iv) commodity cost;
v) insrrrance;
vi) applicable taxes;
vii) any penalties or fees incurred because a Project Train was idled; and
viii) any shortfall payment under any coal or transportation conEact.
NVE will provide writtem documentation of any such costs incurred due to
diversion, regardless of which Company diverted, to the Fuel and Accounting
Committees representatives for each Company.
D.
Valmy Coal Diversiou OPC Amendment Page l0 ofl0
BEFORE THE
IDAHO PUBLIG UTILITIES COMMISSION
GASE NO. IPC-E-21-12
IDAHO POWER COMPANY
CONFIDENTIAL
REQUEST NO. 10
ATTACHMENT NO. 1
BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
CASE NO, IPC.E.21.12
IDAHO POWER COMPANY
REQUEST NO. 11
ATTACHMENT NO. 1
SEE ATTACHED SPREADSHEET