Loading...
HomeMy WebLinkAbout20080211_2168.pdfDECISION MEMORANDUM TO:COMMISSIONER REDFORD COMMISSIONER SMITH CO MMISSI 0 NER KEMPTON COMMISSION SECRETARY LEGAL WORKING FILE FROM:GERRY D. GALIN A TO DATE:FEBRUARY 8, 2008 RE:SCHEDULE 72A - DISP TCHABLE IRRIGATION LOAD CONTROL CREDIT RIDER; ROCKY MOUNTAIN POWER TARIFF ADVICE NO. 08-01. BACKGROUND On January 7 , 2008, Rocky Mountain Power (Rocky Mountain; Company), a Division ofPaciforp, submitted modifications to its Tariff LP.C. No., Schedule No. 72A, the Dispatchable Irrigation Load Control Credit Rider. Specifically, the Company requested revisions of Sheet Nos. 72A.1 , 72A.2, 72A.3 , and 72A.4. The purpose of the filing is to make several adjustments to the tariff language and operational aspects of the dispatchable irrigation load control program (Program). The proposed operational changes include a reduction in the maximum dispatch hours, a small increase in the dispatch duration, and removal of the minimum pump size and minimum aggregate demand. In addition, the Company is proposing that a participant no longer needs to execute annual agreements with the Company. Rather, once initiated, participation in the Program will continue until explicitly canceled by the customer. The Company also indicated that the proposed changes are in addition to those recently approved by the Commission in the Company s 2007 general rate case. See Order No. 30482. These changes were discussed and agreed to by the Idaho Irrigation Pumpers Association (lIP through negotiations leading to the rate case settlement. However, such changes were not specifically addressed in the Stipulated Settlement. The proposals are the result of collaborative discussions between the Company, lIP A and participating customers after successful operation of the 2007 Dispatchable Pilot Program. DECISION MEMORANDUM FEBRUARY 8, 2008 After initial review by Commission Staff and discussions with Rocky Mountain Power the Company resubmitted a revised filing for the proposed changes to Schedule 72A on February 7, 2008. The Company s filing is included as Attachment A to these comments. ST AFF REVIEW On February 13 2007 , the Commission issued Order No. 30243 approving the Company s Irrigation Load Control Dispatched Pilot Program for the 2007 irrigation season. The Program allows the Company to interrupt service to Idaho irrigation customers at the Company s discretion. In return, participating customers receive a credit on their October billing statement for the entire season. It was expected that the number of participants would be selected, data would be collected, results would be assessed, and changes would be made in order to make the Program more successful. The Commission also directed the Company to prepare and file a report on the Dispatch Pilot Program after the close of the 2007 irrigation season. The Pilot Program was in addition to the scheduled Irrigation Load Control Program already in place. Based on the findings of the Pilot Program offered during the 2007 irrigation season, the report recommended that the Pilot Program be made permanent with some operational modifications. Some of the key requirements of the Dispatchable Pilot Program that the Company seeks to modify include: a total demand of at least 1 500 horsepower (Hp) under the customer s control through single or multiple accounts, an integrated pump/pivot irrigation system, and a minimum pump size of 100 Hp. In addition, total curtailment per participating customer will be limited to 65 hours during the irrigation season, with dispatched events occurring between the hours of 2:00 p.m. to 8:00 p., Monday through Friday. After initial review by Staff, concerns were raised about the elimination of the 100 Hp minimum pump size and the minimum total aggregate of 1 MW (1,500 Hp) demand under the customer s control as Program requirements. Staff believes inclusion of all customers regardless of pump size would not be prudent under this Program. There is a "cross-over point" where the inclusion of smaller pumps will no longer be cost-effective. Staff notes that the Company conducted an analysis of the cost of implementing the program for the first year as well as the second year for three ranges of pump sizes and indicated that Program costs are higher during the first year of participation due to the initial installation cost of control devices. While the analysis DECISION MEMORANDUM FEBRUARY 8, 2008 shows that the cost of Program implementation is higher for smaller pumps in both the first and second year ofthe Program, it does not clearly show at what point (e.g. pump motor size) the program is no longer cost effective. The capital cost of the project was not amortized with the Project's life. There may be some cases where a customer would have several small pumps, but in aggregate may be considered relatively large load or where a small pump load is part of a bigger load. Staff believes that the smaller loads should not be excluded as long as they meet the minimum total aggregate requirement. After additional discussions with the Company, Rocky Mountain agreed to include a requirement with a minimum irrigation motor load size of 30 Hp. The Company also proposed that it would evaluate individual pumps or motors smaller that 30 Hp to determine if participation is cost-effective or necessary because such pumps are part of a larger participating system. Staff agrees with this change, which is now reflected in the revised filing submitted on February 7 , 2008. Staff and the Company will work to reassess cost effectiveness at the conclusion of the 2008 irrigation season. Staff agrees with the proposed change that a participant no longer needs to execute annual agreements with the Company. Once initiated, participation in the Program will continue until explicitly cancelled by the customer. This change will reduce administrative work by the Company for not requiring annual signup and will make Program management more efficient. Staff also agrees with the other proposed operational changes of: a) reducing the maximum dispatched hours from 65 to 52 hours per irrigation season, and b) increasing the dispatch duration from not more than three and one half hours to four hours per dispatch event or twelve hours per week. RECOMMENDATIONS 1. Staff recommends that the Commission approve the requested revisions of Rocky Mountain Power to Schedule 72A applicable to electric service in the State of Idaho. 2. If the Commission approves the proposed changes, Rocky Mountain Power suggests and Staff recommends that the revised Tariff pages become effective on February 15 2008. DECISION MEMORANDUM FEBRUARY 8, 2008 COMMISSION DECISIONS Does the Commission wish to approve the proposed revisions to Rocky Mountain Power Tariff LP.u.C. No., Schedule 72A with an effective date of February 15 20087 Does the Commission wish to address anythi Attachments i:udmemos/RMC Advice No. 08- DECISION MEMORANDUM FEBRUARY 8, 2008 ~ ~~~o ~OUNTAIN February 7, 2008 RECEIVED 2008 February PM 4:35 IDAHO PUBLIC UTILITIES CO MMISSIO N 201 South Main, Suite 2300 Salt Lake City, Utah 84111 VL4 ELECTRONIC FILING Idaho Public Utilities Commission 472 West Washington Boise, Id 83702-5983 Attention:Jean D. Jewell Commission Secretary Re:Advice No. 08-01 - Replacement Pages Schedule 72A - Dispatchable Irrigation Load Control Credit Rider Rocky Mountain Power, a division ofPacifiCorp, hereby re-submits for electronic filing proposed tariff pages associated with TariffI.P.C. No., Schedule No. 72A, of Rocky Mountain Power applicable to electric service in the State ofIdaho. The Company respectfully requests an effective date of February 15,2008. Second Revised Sheet No. 72A.4 Schedule 72A Dispatchable Irrigation Load Control Credit Rider Dispatchable Irrigation Load Control Credit Rider Dispatchable Irrigation Load Control Credit Rider Dispatchable Irrigation Load Control Credit Rider Second Revised Sheet No. 72A.l Schedule 72A Second Revised Sheet No. 72A.2 Schedule 72A Second Revised Sheet No. 72A.3 Schedule 72A The Company originally submitted proposed changes to Schedule 72A on January 7, 2008, to make several adjustments to the tariff language and operational aspects of the dispatchable irrigation load control program. After discussions with the Commission staff and the Idaho Irrigation Pumpers Association, the Company agreed to provide a revised version of Schedule 72A that includes a minimum irrigation equipment motor load size of 30 horsepower in order for a customer to qualify for participation in the program. All other changes proposed in the Company s original filing of Advice No. 08-01 remain unchanged with the exception of the requested effective date. It is respectfully requested that all formal correspondence and staff requests regarding this matter be addressed to one or more of the following: By E-mail (preferred):datareq uest0pac i fi co rp. com By fax:(503) 813-7274 Idaho Public Utilities Commission February 7, 2008 Page 2 By regular mail:Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, OR 97232 Informal inquiries may be directed to Brian Dickman, Idaho regulatory affairs manager, at (80l) 220-4975. Very truly yours f j / /1 j () (! .r~1 f/tl/lh"",- / ( (/l," Je frey K. La/sen Vice President, Regulation Enclosures ~ ~~~, ~ aUNT AIN C. No. Second Revision of Sheet No. 72A. Canceling First Revision of Sheet No. 72A. ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 72A STATE OF IDAHO Dispatchable Irrigation Load Control Credit Rider Program PURPOSE: This optional tariff allows Customers to participate in a dispatchable control service interruption program in exchange for a Load Control Service Credit (LCSe). Customers participating in this program will be considered participants in the Irrigation Load Control Credit Rider program. ARTICIP A TION: Prior to participation, and in order to qualify under this Schedule, Customers must execute a Load Control Service Agreement (LCSA) with the Company. Participants in the dispatchable program will be considered program participants for subsequent years unless the Customer explicitly communicates the desire to no longer participate in the Load Control Credit Rider program. APPLICABLE: To qualifying Customers served on Schedule 10 and who have continuous access to the Internet from May 1 through September 15. In addition, Schedule 10 Customers participating in the dispatchable program must: (a) Meet minimum irrigation equipment motor load size ono Hp. The Company may evaluate individual pumps or motors smaller than 30 Hp to determine if participation is cost-effective or necessary because such pumps are part of a larger participating system. (b) Use advanced 2-way remote control equipment as specified by the Company to manage ALL pumping requirements throughout the Company defined Irrigation Season (June I through September 15). (c) Participate in Company-defined training to set up their pump sites for dispatch. (d) Incur air time communication charges for communication transactions exceeding 70 per month. Charges for communication transactions in excess of 70 per month will be deducted from the Customer s LCSC. IRRIGATION SEASON: This rider is applicable only during the Irrigation Season from June 1 to September 15, annually. (Continued) Submitted Under Order No. 30482 ISSUED: February 7, 2008 EFFECTIVE: February 15 2008 ~ ~~;ro ~OUNTAIN C. No. Second Revision of Sheet No. 72A. Canceling First Revision of Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued LOAD CONTROL SERVICE AGREEMENT: The Customer and Company will execute a LCSA for irrigation load control participation. The LCSA shall specify the Load Control kW amount that each of the Customer s sites shall curtail during each Dispatch Event. The agreement will also include typical costs that the Customer may incur for Early Termination. Once executed, the agreement shall remain in force for subsequent Irrigation Seasons unless explicitly canceled by the participating Customer. Cancellation of an existing LCSA may occur only between September 16 and May 30 each year. LOAD CONTROL SERVICE CREDIT: The LCSC for a participating site shall be calculated and a check issued to the participating Customer no later than October 31 of each year. The LCSC is composed of a Fixed Annual Participation Credit that shall remain fixed throughout the Irrigation Season each year. The LCSC shall be computed at the conclusion of the Irrigation Season by multiplying the Fixed Annual Participation Credit times the Load Control kW at the Schedule 10 metered pump site. The Load Control kW shall be computed by taking the most recent 2-year demand (kW) average for that particular site. The Fixed Annual Participation Credit for 2008 and 2009 is based upon total program participation volumes as defined in the table below (Participation Credit Schedule). Participation Credit Schedule Program Participation Volumes MW Less than 150 150 to less than 175 175 or greater SCHEDULE: Notification of Credit: The Company will provide notification of the total LCSC to all eligible Schedule 10 customers by February 15 each year. Load Control Service Agreement: Concurrent with the Notification of Credit referenced above the Company will provide a LCSA listing the amount of the credit the Customer will receive for the irrigation season if they elect to participate in the program. Customers who have not previously entered into a LCSA with the Company and who desire to participate in this load control program shall sign the LCSA and return it to the Company by February 15 to indicate their participation. (Continued) Submitted Under Order No. 30482 ISSUED: February 7, 2008 EFFECTIVE: February 15 , 2008 ~ ~~~~ aUNT A IN c. No. Second Revision of Sheet No. 72A. Canceling First Revision of Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued DISPATCH CONDITIONS: The Company shall have the right to implement a Dispatch Event for participating customers according to the following criteria: (a) Available Dispatch Hours: 2:00 PM to 8:00 PM Mountain Daylight Savings Time (b) Maximum Dispatch Hours: 52 hours per Irrigation Season (c) Dispatch Duration: Not more than four hours per Dispatch Event or twelve hours per week (d) Dispatch Event Frequency: lim ited to a single (I) Dispatch Event per day (e) Dispatch Days: Monday through Friday (inclusive) (f) Dispatch Day Exclusions: July 4 and July 24 SPECIAL CONDITIONS: Load Control kW: The Load Control kW amount for the 2007 Irrigation Season shall be computed as follows: The maximum kW for the past two (2) years (or available history) for each of the four irrigation months shall be averaged by month (June 1 through September 15). 2. The average monthly values calculated in Step I above shalI be averaged. 3. The output of Step 2 above shalI be multiplied by the appropriate participation credit as defined in the Participation Credit Schedule above. Outages: Uncontrolled outages or other types of interruptions do not qualify for payment under the tariff. Ownership of Control Equipment: The load control equipment remains the property of the Company. Customers may, at their discretion, purchase complementary control components that can work with the Company s foundational control units. To the extent possible, the Company will cooperate and work with local equipment distributors in facilitating such additional equipment. Communication: The Company wilI pay the cost of air time communication for up to 70 transactions per month. Additional Customer communication with irrigation control equipment is permitted. The cost of such transactions will be the Customer s responsibility but wilI be managed through the Company (Note: Customer air time communication costs, if any, will be calculated as a reduction to the LCSe). Liquidated Damages: Customers are permitted to 'opt-out' of five (5) Dispatch Events throughout the Irrigation Season. Each of these 'opt-out' events will incur a cost resulting in a reduction to the Customer s LCSC. The costs will be calculated based on the $/MWh the Company otherwise has to pay for power at the time of the Dispatch Event. Such $/MWh prices will be provided by the Company Commercial & Trading organization and will be based on established Four Comers and Palo Verde trading hubs and the prices actually paid by the Company. 'Opt-outs' will be computed at the conclusion of the irrigation season and will be included as a reduction to the LCSC payment issued via check to the Customer prior to October 31 each year. 'Opt-outs' beyond those identified above are not permitted. Violation of the Liquidated Damages provision shalI result in Early Termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the program for the remainder of the Irrigation Season. (Continued) Submitted Under Order No. 30482 ISSUED: February 7, 2008 EFFECTIVE: February 15 2008 ~ ~g~~;oo ~ aUNT AIN C. No. Second Revision of Sheet No. 72A. Canceling First Revision of Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued Liability: The Company is not responsible for any consequences to the participating Customer that result from a load control Dispatch Event or the failure of load control equipment. Use of Load Control Equipment: The Customer shall be required to exclusively use the 2-way load control equipment to manage their irrigation equipment through the duration of the Irrigation Season. Load Shifting: Customers participating in this program may not shift irrigation lows to other facilities served by the Company or purchase replacement production from another facility served by the Company. The Company reserves the right to determine if the participating customer site is in violation of Special Condition-Load Shifting. Violation ofthe Load Shifting provision shall result in Early Termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the program for the remainder of the Irrigation Season. Control Equipment Damage / Sabotage: The Company reserves the right to determine if load control devices were intentionally damaged and/or bypassed to limit load control. Violation of this clause shall result in early termination under the terms of Special Condition-Early Termination , forfeiture of the entire LCSC, and removal from the pilot program for the remainder of the Irrigation Season. Early Termination: If the Customer is terminated from the program the Customer shall be responsible for reimbursing the Company for costs associated with participation in the program. Such costs include, but are not limited to, direct and indirect labor costs associated with enrolling the Customer in the program, labor costs for installing the equipment, labor to investigate intentional damage to load control devices, removing the Customer from the program, and will not include costs for replacement power. Customers required to pay costs associated with early termination under terms of this Special Condition will be provided with a statement detailing such costs. Free Riders: Customers may not participate in this program with accounts and meters that would not have used power during the Irrigation Season irrespective of participation in the program. The Company reserves the right to determine ifthe participating customer is in violation of the Special Condition-Free Riders. Violation of Special Condition-Free Riders shall result in Early Termination, forfeiture of the LCSC, and removal from the program for the remainder ofthe Irrigation Season. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Idaho Public Utilities Commission, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Submitted Under Order No. 30482 ISSUED: February 7, 2008 EFFECTIVE: February 15 2008 ~ ~2~;oo ~OUNTAIN I.P.C. No. FiFst-Second Revision of Sheet No. 72A. Canceling Original First Revision of Sheet No. 72A. ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 72A ST A TE OF IDAHO Dispatchable Irrigation Load Control Credit Rider Program PURPOSE: This optional tariff allows Customers to participate in a dispatchable control service interruption program in exchange for a Load Control Service Credit (LCSC). Customers participating in this program will be considered participants in the Irrigation Load Control Credit Rider program. ARnCIP A nON: Prior to participation, and in order to qualify under this Schedule. Customers must execute a Load Control Service Agreement (LCSA) with the Company. Participants in the dispatchable program will be considered program participants for subsequent years unless the Customer explicitl\' communicates the desire to no longer participate in the Load Control Credit Rider program. APPLICABLE: To qualifying Customers served on Schedule 10 and who have continuous access to the Internet from May I through September IS. .vho meet the following participation criteria: (a)an aggregate minimum of I MW (1 500 tIp) demand under their control (single account or multiple accounts) for either or both of JI;II)' or :\ugl:lst (0 )an integruted pump / pi'/ot irrigation system (o)a minimum pump size oflOO Hp (d)continuous aeDes:; to the InterAet from May J through September 15 In addition to the applicability requirements, Schedule 10 Customers participating in the yWet dispatchable program must: (a) Meet minimum irrigation equipment motor load size of 30 Hp. The Company may evaluate individual pumps or motors smaller than 30 Hp to detennine if participation is cost-effective or necessary because such pumps are part of a larger participating system. iliLl1:~se advanced 2-way remote control equipment as specified by the Company to manage atlALL pumping requirements throughout the Company defined Irrigation Season (June I through September 1St Mc)rfarticipate in Company-defined training to set up their pump sites for dispatch fei(d) lincur air time communication charges for communication transactionsgreatef tfiaftexceeding 70 per month. Charges for communication transactions in excess of 70 per month will be deducted from the Customer s LCSe. Submitted Under Order No. 30482 I ISSUED:Deeember 28, 2007February 7. 2008 EFFECTIVE: Janl:lary ) February 15 2008 ~ ~~~o ~OUNT AIN c. No. FiFst-Second Revision of Sheet No. 72A. Canceling Original First Revision of Sheet No. 72A. IRRIGATION SEASON: This rider is applicable only during the Irrigation Season from June 1 to September 15, annually. LOAD CONTROL SERVICE L CREEMENT: The Clistomer and CompaflY will exe"mte a LCS, for irrigatioH load eoHtrol participatioH. The LCSA shall specify the Load CoHtrol Ie').' ammmt that each the Customer s sites shall curtail dliriHg each Dispatch E"eHt. The agreemeHt will also include typical costs that the Clistomer may iHcur f.or Early TermiflatioH. Once execlited, t-he agreement shall remaiH iH force for subsequent Irrigation SeasoRs liHless explieitly canceled by the partieipatiHg Customer. CancellatioR of an existing LCS.'\ may occur 01'11)' between September 16 aFid May 30 each year. (Continued) Submitted Under Order No. 30482 I ISSUED:December 28, 2007February 7. 2008 EFFECTIVE: January February 15 2008 ~g~~l~OUNT AIN I.P.u.C. No. Fil'St-Second Revision of Sheet No. 72A. Canceling Original First Revision of Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued LOAD CONTROL SERVICE AGREEMENT: The Customer and Company will execute a LCSA for irrigation load control participation. The LCSA shall specify the Load Control k W amount that each of the Customer's sites shall curtail during each Dispatch Event. The agreement will also include typical costs that the Customer may incur for Early Termination. Once executed, the agreement shall remain in force for subsequent Irrigation Seasons unless explicitly canceled by the participating. Customer. Cancellation of an existing LCSA may occur only between September 16 and May 30 each year. LOAD CONTROL SERVICE CREDIT: The LCSC for a participating site shall be calculated and a check issued to the participating Customer no later than October 31 of each year. The LCSC is composed of a Fixed Annual Participation Credit that shall remain fixed throughout the Irrigation Season each year. The LCSC shall be computed at the conclusion of the Irrigation Season by multiplying the Fixed Annual Participation Credit times the Load Control kW at the Schedule 10 metered pump site. The Load Control kW shall be computed by taking the most recent 2-year demand (kW) average for that particular site. The Fixed Annual Participation Credit for 2008 and 2009 is based upon total program participation volumes as defined in the table below (Participation Credit Schedule). Participation Credit Schedule Program Participation Participation Credit Volumes (MW)($/kW-yr) Less than 150 $23. ISO to less than 175 $26. 175 or greater $28. SCHEDULE: Notification of Credit: The Company will provide notification ofthe total LCSC to all eligible Schedule 10 customers by February IS each year. Load Control Service Agreement: Concurrent with the Notification of Credit referenced above the Company will provide a Load Control Service :\greemeAt (LCSA~ listing the amount ofthe credit the Customer will receive for the irrigation season if they elect to participate in the program. Customers who have not previously entered into a LCSA with the Company and who desire Customers desiriFlg t participate in this load control program shall sign the LCSA and return it to the Company by February IS to indicate their participation. DISP 1'. TCH CONDITIONS: The CompaA)' shall ha'le the right to implement a Dispatch Eyent for pal1icipating customers according to the follo\viRg criteria: (a):\ "ailable Dispatch HOlm: 2:00 PM to 8:00 PM Mountain Daylight Savings Time (b)MaKimum Dispatch Hoars: 65 Rhours per Irrigation Season Submitted Under Order No. 30482 I ISSUED: Doccmber 28, 2007Yebruary 7. 2008 EFFECTIVE: January I Februarv 2008 ~ ;~~;~ ~OUNT AIN I.P.C. No. FiFst-Second Revision of Sheet No. 72A. Canceling Original First Revision of Sheet No. 72A. (c)Dispatch DuratioA: Not more than three aRd 01'113 halffulli: Rours per Dispatch EveRt or twelve hours per 'Neel\: (d)Dispatch E','eRt Freql:JeRcy: limited to a single (I) Dispatch EveRt per day (e)Dispatch Days: Monday through Friday (iRelusive) (t)Dispateh Day helusioRS: July 4 and .hily 2'1 (Continued) Submitted Under Order No. 30482 I ISSUED:Deccll1bor 2&, 2007 February 7, 2008 EFFECTIVE: JaJ11:1ary 1 February 15 2008 ~ ;~~;oo ~OUNTAIN No. FiFst-Second Revision of Sheet No. 72A. Canceling Origiftal First Revision of Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued DISPATCH CONDITIONS: The Company shall have the right to implement a Dispatch Event for pal1icipating customers according to the following criteria: (a) Available Dispatch Hours: 2:00 PM to 8:00 PM Mountain Daylight Savings Time (b) Maximum Dispatch Hours: 52 hours per Irrigation Season (c) Dispatch Duration: Not more than four hours per Dispatch Event or twelve hours per week Cd) Dispatch Event Frequency: limited to a single (I) Dispatch Event per day (e) Dispatch Days: Monday through Friday (inc1usive) (f) Dispatch Day Exclusions: July 4 and July 24 LO.D CONTROL SERVICE l..CREEMENT: The C1:Istomer and Company '.viII execute an agreement for irrigation load control pilot participation. The agreement shall specify the Load Controll,W amOl:lAt that eaeh of the Customer s sites shall c1:Irtail d1:lriFlg each Dispatch Event. The agreement will also iFlelude typieal eosts that the Cl:1stomer may iFlcur for Early TermiFlation. ParticipatiFlg Customers shall sign a writteFl agreement for the Irrigation Season ann1:lally. SPECIAL CONDITIONS: Load Control kW: The Load Control kW amount for the 2007 Irrigation Season shall be computed as follows: The maximum kW for the past two (2) years (or available history) for each of the four irrigation months shall be averaged by month (June I through September 15). 2. The average monthly values calculated in Step 1 above shall be averaged. 3. The output of Step 2 above shall be multiplied by the appropriate participation credit as defined in Table I the Participation Credit Schedule above. Outages: Uncontrolled outages or other types of interruptions do not qualify for payment under the I tariff. Ownership of Control Equipment: The load control equipment remains the property of the Company. Customers may, at their discretion, purchase complementary control components that can work with the Company s foundational control units. To the extent possible, the Company will cooperate and I work with local equipment distributors in facilitating such additional equipment. Communication: The Company will pay the cost of air time communication for up to 70 transactions per month. Additional Customer communication with irrigation control equipment is permitted. The cost of such transactions will be the Customer s responsibility but wiII be managed through the Company (Note: Customer air time communication costs, if any, will be calculated as a reduction to the I LCSC). Liquidated Damages: Customers are permitted to 'opt-out' of five (5) Dispatch Events throughout the Irrigation Season. Each of these 'opt-out' events will incur a cost resulting in a reduction to the Customer s LCSC. The costs will be calculated based on the $/MWh the Company otherwise has to pay for power at the time of the Dispatch Event. Such $/MWh prices will be provided by the Company Commercial & Trading organization and will be based on established Four Comers and Palo Verde trading Submitted Under Order No. 30482 I ISSUED: December 28, 2007Lebruary 7. 2008 EFFECTIVE: January I February 2008 ~ ~~~o ~OU NT A IN I.P.C. No. FHst-Second Revision of Sheet No. 72A. Canceling Original First Revision of Sheet No. 72A. hubs and the prices actually paid by the Company. 'Opt-outs' will be computed at the conclusion of the irrigation season and will be included as a reduction to the LCSC payment issued via check to the Customer prior to October 31 each year. 'Opt-outs' beyond those identified above are not permitted. Violation of the Liquidated Damages provision shall result in Early Termination under the terms of Special Condition-Early Term ination, forfeiture of the entire LCSC, and removal from the program for the remainder of the I Irrigation Season. (Continued) Submitted Under Order No. 30482 I ISSUED: December 28 , 2007February 7, 2008 EFFECTIVE: January I Februarv 2008 ~ ~2~\;oo ~OUNT AIN I.P.c. No. FiFst-Second Revision of Sheet No. 72A. Canceling OFigiaal First Revision of Sheet No. 72A.4 ELECTRIC SERVICE SCHEDULE NO. 72A - Continued Liability: The Company is not responsible for any consequences to the participating Customer that result from a load control Dispatch Event or the failure of load control equipment. Use of Load Control Equipment: The Customer shall be required to exclusively use the 2-way load control equipment to manage their irrigation equipment through the duration of the Irrigation Season. Load Shifting: Customers participating in this program may not shift irrigation looos to other facilities served by the Company or purchase replacement production from another facility served by the Company. The Company reserves the right to determine ifthe participating customer site is in violation of Special Condition-Load Shifting. Violation of the Load Shifting provision shalI result in Early Termination under the terms of Special Condition-Early Term ination, forfeiture of the entire LCSC, and removal from the program for the remainder of the Irrigation Season. Control Equipment Damage / Sabotage: The Company reserves the right to determine if load control devices were intentionally damaged and/or bypassed to limit load control. Violation of this clause shall result in early termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the pilot program for the remainder of the Irrigation Season. Early Termination: If the Customer is terminated from the program per the terms of Special Conditions Load Shifting, Control Equipment Damage / Sabotage, or Free Riders the Customer shalI be responsible for reimbursing the Company for costs associated with participation in the program. Such costs include, but are not limited to, direct and indirect labor costs associated with enrolling the Customer in the program, labor costs for installing the equipment, labor to investigate intentional damage to load control devices, removing the Customer from the program, and wilI not include costs for replacement power. Customers required to pay costs associated with early termination under terms of this Special Condition will be provided with a statement detailing such costs. Free Riders: Customers may not participate in this program with accounts and meters that would not have used power during the Irrigation Season irrespective of participation in the program. The Company reserves the right to determine if the participating customer is in violation of the Special Condition-Free Riders. Violation of Special Condition-Free Riders shalI result in Early Termination, forfeiture of the LCSC, and removal from the program for the remainder of the Irrigation Season. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Idaho Public Utilities Commission, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Submitted Under Order No. 30482 I ISSUED: December 28,2007 February 7. 2008 EFFECTIVE: January I February 15 , 2008