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HomeMy WebLinkAbout20031017Avista Potlatch Interconnection Agreement.pdfAvista Corp. 1411 East Mission POBox3727 Spokane, Washington 99220-3727 Telephone 509-489-0500 Toll Free 800-727-9170 RECEIVED 0FILED Z803 OCT 19 ttM12: II 'V'STA. Corp. , . iUi\hU PUBLIC UTILITIES COMt11SSl0N October 9, 2003 State of Idaho Idaho Public Utilities Commission Statehouse Boise, ill 83720 Attention: Ms. Jean D. Jewell, Commission Secretary RE: Case No. A VU-02- Enclosed for informational purposes in this Case is a copy of the Generation Interconnection (Interconnection) Agreement between A vista and Potlatch Corporation. This Interconnection Agreement is referenced in the Power Purchase and Sale Agreement, which was filed with the Commission as part of the joint petition dated August 22 2003. If you have any questions regarding this filing, please call Kelly Norwood at 509-495- 4267 or Brian Hirschkorn at 509-495-4723. Sincerely, Ax..rtd Kelly Norwood Vice-President, State and Federal Regulation Enc. Avista Corp. Contract No, A V-TRO3-0169 GENERA TION INTERCONNECTION AGREEMENT Between A VISTA CORPORATION And POTLATCH CORPORATION INDEX TO SECTIONS Section 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. Page Definitions ..........................................................""""""""""""""""""""""""" Term of Agreement;............................................................................................. 4 Interconnection Service and Service Standards """""""""""""""""""""""""" 5 Construction of Interconnection Facili ties.......................................................... Operation and Maintenance............................................"""""""""""""""""'" 12 Metering, Communication and Data..................................................,................ 13 Billings and Payment for Reimbursable Services """"""""""""""""""""""'" 14 Force Majeure.......................................................~.............................................. 16 Indemnity ......................................................""""""""""""""""""""""""""" 18 Limi tati on of Liabili ty ......................................................................................... 20 Insurance ...........................................................................................~................. 20 Confidentiality """""""""""""""""""""""""""""'"......................................... Default ...................... ....... ........... ................................... ........ ................................ Assignment """"""""""""""""""""""""""""'"................................................ Dispute Resolution ............... :................................................................................ Governmental Authority........................................................................................ Several Obligations ............................................................................................... Implementation..... """ ............ ......... ....... ....... ....... .... """""'" ......................... ....... Amendment """"""""""""""""""""""""""'"................................................... Notices ................................................................................................................. 28 Integration """""""""""""""""""""""""""...................................................... 29 Non - W ai ver ..........................................................................................;................ 29 No Third-Party Beneficiaries................................................................................ 29 Duty to Cooperate.......... :............................. ;........................................................ 29 Headings for Convenience Only........................................................................... 30 Construction of Agreement.................................................................................. 30 Counterparts """""""""""""""""""""""""""""............................................... Relationship of the Parties """""""""""""""""""""""""""""""""""""""""" 30 Venue, Attorneys Fees and Choice of Laws.......................................................... 30 Compliance with Laws .................. ................ ......... ........... .......... ..... ........ ............. Invalid Provision ................... ........ ....... """"'" """"""" ........... ..... ...... ....... ........... 31 Representation of Authority................ """" .................................. .................. ...... 31 33.Exhi bi ts ................................................................................................................. 31 Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Exhibit I Exhibit J Exhibit K Exhibit L Exhibit M Definitions Description of Interconnection Facilities , Ownership and Costs Specific Interconnection Requirements Metering Specifications, Points and Locations Contact Information Remedial Action Schemes Governor Control Systems and Terminal Voltage Regulators Required System Upgrades Easements Description of Generation Facility Dispute Resolution Procedures Insurance Requirements Application for Electric Generation Interconnection GENERATION INTERCONNECTION AGREEMENT This Generation Interconnection Agreement ("Agreement") is entered into as of this day of 3e...f-te.~be,r-2003 , by and between Avista Corporation Avista ), a Washington corporation with its principal corporate offices located at 1411 East Mission, Spokane, Washington and Potlatch Corporation ("Potlatch" or "Generating Company ), a Delaware corporation with its principal corporate offices located at 601 West Riverside Ave., Suite 1100 Spokane, WA 99201. Avista and Generating Company may be individually referred to herein as a "Party" and collectively as "Parties. WHEREAS, Avista is a public utility engaged in , among other activities, the business of owning and operating an electric system consisting of generation transmission and distribution facilities; and WHEREAS, Generating Company owns, operates and controls an electric generation facility, which is described in Exhibit J ("Generation Facility ), located at its manufacturing plant in Lewiston, Idaho (the "Lewis ton Plant") that Generating Company desires to remain interconnected with A vista s Electric System in a manner such that Parallel Operation at 34.5 kV with A vista s Electric System and Potlatch's Lewiston Plant electric load will continue; and WHEREAS, Avista and Generating Company have entered into a Power Purchase and Sale Agreement dated July 22 2003 ("Power Agreement"); and WHEREAS, both Parties understand that this Agreement does not impose any obligation or extend any right for the sale or purchase of electric power or provide any transmission service distribution service Ancillary Services or Interconnected Operations Services; as such transactions or services , if desired, will be provided under separate agreements; and WHEREAS, the Parties have agreed to execute this mutually acceptable Generation Interconnection Agreement in order to maintain Interconnection Service to Generating Company and to define the continuing rights, responsibilities, and obligations of the Parties with respect to such interconnection. NOW, THEREFORE , in consideration of their respective commitments set forth herein, and intending to be legally bound hereby, the Parties covenant and agree as follows: DEFINITIONS. Wherever used in this Agreement, terms with initial capitalization shall have the meanings specified or as defined in Exhibit A. TERM OF AGREEMENT. Effective Date. This Agreement shall be effective on the date provided in the introductory paragraph of this Agreement ("Effective Date Term and Termination. This Agreement shall become effective on the Effective Date and unless earlier terminated pursuant to the provisions hereof, shall be for a term concurrent with the term of the Power Agreement.Unless earlier terminated pursuant to the provisions hereof, this Agreement shall terminate simultaneously with the expiration termination or cancellation of the Power Agreement. 2 A vista shall file for all necessary regulatory approvals within thirty (30) days of execution of the Agreement. In the event that any regulatory body competent jurisdiction does not approve this Agreement or approves it upon conditions that are unacceptable to either Party, this Agreement shall terminate upon the date of such order. In the event that the Power Agreement terminates, expires or is cancelled for any reason, this Agreement shall terminate upon the date of such termination, expiration or cancellation. 2.4 In the event that Potlatch sells or disposes of any of the electric power output from the Lewiston Plant to any third party (i.a disposition that is neither a sale to A vista nor used to serve Potlatch's load at the Lewiston Plant), this Agreement shall terminate upon the commencement of such a sale or disposition. Survival of Obligations. The applicable provisions of this Agreement shall continue in effect after cancellation or termination hereof to the extent necessary to provide for final billings , billing adjustments and payments pertaining to liability and indemnification obligations arising from acts or events that occurred while this Agreement was in effect. INTERCONNECTION SERVICE AND SERVICE STANDARDS Interconnection Service . , Subject to the terms and conditions of this Agreement and upon submitting a completed application for interconnection (Exhibit M), A vista shall continue to provide Generating Company Interconnection Service Jor the Generation Facilities at the Interconnection Point from the Effective Date of this Agreement. The existing Interconnection Point is the line of demarcation between A vista and Generating Company as far as the responsibility for ownership, construction operation and maintenance of the Interconnection Facilities. Generation and Load Evaluation.Without limitation to the effectiveness of any provision of this Agreement, Generating Company agrees that it shall operate its generation and load at the Lewiston Plant as provided in the Power Agreement; provided, however any conflict between the terms of this Agreement and the Power Agreement shall be governed by the Power Agreement. Description of Interconnection Facilities. The Interconnection Facilities linking the Generation Facility to Avista s Electric System are described in Exhibit B. These Interconnection Facilities include all required equipment on either side of the Interconnection Point, including at remote locations. Ownership of the Interconnection Facilities , which includes maintenance responsibilities , is also indicated on Exhibit B. The Parties shall amend Exhibit B as necessary to reflect future additions or modifications to any Interconnection Facilities. Service Standards. The Interconnection Facilities will be maintained and operated in accordance with applicable NERC , State , NESC, ANSI/IEEE and WECC standards, codes and policies in effect on the Effective Date of this Agreement (or in the case of future construction of Interconnection Facilities , the standards, codes and policies in effect on the date of commencement of construction of such facilities) and in accordance with Good Industry Practice. Service Voltages and FreQuency. Avista shall continue to furnish only standard 60 Hertz voltages for interconnection of the Generation Facility to A vista Electric System. The interconnection voltage is presently unregulated 34.5 kV three- phase. Voltage levels under normal operating conditions can range plus or minus 5% from nominal values on Avista s 115 kV Clearwater bus. Potlatch is responsible for its own voltage regulation on the 34.5 kV and 12 kV busses. Interconnection Point Disconnects. A vista will continue to supply 34. kV power circuit breakers including associated disconnect switches at the Interconnection' Point between the Generation Facilities and the Interconnection Facilities, that can be operated and safety tagged by A vista s personnel. This switching equipment, capable of isolating the Generation Facility from A vista s Electric System will continue to only be accessible to A vista personnel. General Interconnection ReQuirements for Generation Facilities The Generation Facility will continue to be operated in accordance with applicable federal , state , and local laws and regulations and Good Industry Practice. The two existing electrical interconnection points are located at the existing Clearwater Substation. These points are between Potlatch's 34.5 kV ring bus, and the 34.5 kV load side disconnect switch associated with the 34.5 kV power circuit breaker, each located on the load side of each of the two (2) 115-34.5 kV power transformers, where Potlatch's 34.5 kV cables connect to Avista s 34.5 kV Utility Tie No 1 and Utility Tie No 2 aluminum pipe bus. For the purposes of this Agreement, these two electrical interconnection points will continue to be considered as the Interconnection Point. The interconnection of the Generation Facility with Avista Electric System shall not cause abnormal voltage magnitudes , frequencies, excessive interruptions , or excessive harmonics as described below. This will include not injecting communications signals of any type into A vista s Electric System. 7.4 The Generating Company will use its best efforts not to restrict A vista s ability to range its nominal voltage operation levels plus or minus 5% (usually in the plus 5% range) at the 115 kV Clearwater bus. In addition, the Generating Company will use its best efforts for three-phase generators, to prevent unbalanced phase operation that could cause a greater than 1 voltage unbalance at the Interconnection Point. Potlatch is responsible for their own voltage regulation on the 34.5 kV and 12 kV busses. Any voltage flicker at the Clearwater 115 kV bus originating from operation of the Generation Facility shall not exceed a curve defined by the following points: 25 fluctuations per second 20 fluctuations per second 14 fluctuations per second 8 fluctuations per second 5 fluctuations per second 1 fluctuation per second 1 fluctuation per minute 3 fluctuations per minute 1 fluctuation per hour 1 fluctuation per hour or less 1.4% maximum voltage sag 0% maximum voltage sag 7% maximum voltage sag 0.4% maximum voltage sag 0.4% maximum voltage sag 0.4% maximum voltage sag 8% maximum voltage sag 1.5% maximum voltage sag 1.5% maximum voltage sag 0% maximum voltage sag Faults or disturbances from the Generation Facility shall not create a sustained loss of service or excessive temporary losses of service (to customers other than the Generating Company) on A vista s Electric System. A sustained loss is defined as a loss of service to Avista s Electric System due to lockout of Avista s protective equipment. A temporary loss is defined asa loss of service momentarily (less than 5 seconds) due to a trip and automatic reclose of Avista protective equipment. Excessive" is defined as five (5) losses of service in any 12-month period directly attributable to the Generation Facility. Generation Facility s insulation systems and surge protection systems are presently coordinated, and will continue to be coordinated properly with A vista s Electric System so as not to cause a direct fault on A vista s Electric System due to transient surges within the Generation Facility. Generator harmonics shall not exceed the limits as outlined for telephone influence factor (TIP) in C50.13-1977, or C50.14-1977. For all generators voltage distortion limits and current harmonic limits shall be as specified in IEEE 519- 1992, Section 10 and 11 , orlatest revision. Generating Company is responsible for the protection of all Generation Facility and Generator-Owned Interconnection Facilities equipment from any type of system voltage or frequency excursion (including fault conditions) originating from disturbances within or outside of Avista s Electric System. Generating Company is responsible for the protection of all Generation Facility equipment from any type of switching, lightning, or other transient surge , independent of the source. 10 Subject to the provlSlons of the Power Agreement, Generating Company may generate power to serve its own load, including both Facility Station Service and power needed for its industrial processes. However, due to this requirement the Generation Facility must be a synchronous generator. 11 While interconnected to A vis~a ' s Electric System, the Generation Facility shall not provide service to, nor interconnect with, any other party, unless allowed by Federal and Idaho law. EQuipment ReQuirements Generating Company shall supply, install, own, operate and maintain all equipment on Generating Company s side of the Interconnection Point accordance with all applicable electric standards and codes and Good Industry Practice. The Interconnection Point protective and equipment requirements, ownership, operation and maintenance will remain the same as presently exists. Generating Company will continue to own, operate and maintain all electrical and protective equipment on the Generating Company s side of the Interconnection Point, and A vista shall continue to own, operate and maintain all electrical and protective equipment on its side of the Interconnection Point. Generating Company will continue to own metering and A vista will continue to maintain interconnection facility metering on Generating Company s side of the Interconnection Point. A vista will continue to own and maintain metering on its side of the Interconnection Point. Generating Company shall maintain its equipment in good working order and keep adequate maintenance records; A vista shall have the right , upon request to review designs, control systems, maintenance records , and operating records of only Interconnection Facilities and Generation Facilities owned and maintained by Generating Company that could have an adverse effect on A vista s Electric System or A vista customers. These rights shall include the right to have A vista personnel present during any testing or modification of such facilities. A vista shall maintain its equipment in good working order and keep adequate maintenance records. Generating Company shall have the right, upon request, to review designs, control systems, maintenance records, and operating records of only Interconnection Facilities owned and maintained by Avista that could have an adverse effect on the Generating Company. These rights shall include the right to have a limited number of qualified Generating Company personnel present during any testing or modification of such facilities. The generator s governor control system and voltage regulators ,are described in Exhibit G. Protection ReQuirements Notwithstanding the provIsiOns of Sections 9 and 10 of this Agreement, under no circumstances shall the Generating Company s execution of this Agreement be interpreted a~ relieving the Generating Company from any responsibilities to protect its Interconnection or Generation Facilities or as imposing any responsibility or liability on Avista for damage to any of Generating Company s facilities or to any person or property. In the event that the Generating Company fails to adequately plan, install and maintain equipment to protect its Generation Facilities, A vista shall not be liable for any damages, to include liability for damages under Section 10, nor have a duty to indemnify Generating Company pursuant to Section 9. Notwithstanding the provisions of Sections 9 and 10 of this Agreement, under no circumstances shall A vista s execution of this Agreement be interpreted as relieving A vista from any responsibilities to protect its Interconnection or Generation Facilities or as imposing any responsibility or liability on Generating Company for damage to any of Avista s facilities or to any person orproperty. In the event that the A vista fails to adequately plan, install and maintain equipment to protect its Facilities , Generating Company shall not be liable for any damages, to include liability for damages under Section 10, nor have a duty to indemnify A vista pursuant to Section 9. Generating Company shall continue to furnish, install, operate, and maintain in good order and repair, and without cost to A vista such relays, locks and seals breakers , automatic synchronizers, and other control and protection apparatus. The Generating Company will continue to operate the Generation Facility in parallel with A vista s Electric System. brief description of installed protection equipment is described in Exhibit B. As of the date that this Agreement is executed it is agreed by both Parties that existing protection equipment is adequate. The Interconnection Facilities will continue to include the following protective relay requirements, owned, installed and maintained by either Avista or the Generating Company: Avista presently provides under/over voltage and under/over frequency relays and will continue to do so in the future. The Generating Facility and A vista presently provide means or devices that will prevent generators from being closed into or energizing a de- energized A vista Electric System, and will continue to do so in the future. For loss of A vista s Electric System, Generating Facility shall not continue to generate into Avista s Electric System and Avistahas provided, at Generating Company s expense, protection equipment to prevent such action , and will continue to provide this equipment in the future. 3.4 The Generation Facility may be manually or automatically started and connected to A vista s Electric System any time A vista s Electric System is in a normal condition. A "normal" condition exists when Avista s Electric System at the Interconnection Point is energized and no local conditions exist on A vista s Electric System such as abnormal voltages, frequencies, single phasing, or the like, that would prevent acceptable synchronization or connection to A vista s Electric System. Generating Company shall provide adequate means for synchronizing to A vista s Electric System. 10- CONSTRUCTION OF INTERCONNECTION FACILITIES Easements and Access. Generating Company has acquired at Generating Company s expense and conveyed or assigned to A vista all necessary easements and rights-of-way, for the purpose of installing, operating, inspecting, maintaining, replacing and removing any Interconnection Facilities or for access to Generator-Owned Interconnection Facilities in accordance with this Agreement (attached at Exhibit I). Generating Company will convey easements and/or permanent rights of way to the property utilized for any additional facilities needed for interconnection. Also , if construction of additional facilities is necessary, A vista s construction access should not be restricted in any way. Generating Company shall provide to A vista a right of access to all facilities necessary to provide the services contemplated under this Agreement including the generation metering and communications systems, to install , inspect maintain or replace such equipment and facilities upon reasonable notice and at a mutually agreed upon time. ReQuired System Upgrades. A vista shall perfonn Company shall bear (as jointly agreed by the Generating Company and Generating and A vista) the reasonable cost of, any Required System Upgrades set forth in Exhibit H. Cost. If future (after the date of this Agreement is executed) upgrades become necessary to the Interconnection Facilities, (as jointly agreed by the Generating Company and Avista) the Generating Company shall reimburse Avista for the actual cost for upgrading all Interconnection Facilities by A vista and replacement thereof including the cost of installation. A vista shall use its best efforts to minimize the cost of the Interconnection Facilities upgrades and the costs of the maintenance of the Interconnection Facilities consistent with Good Industry Practices. Generating Company shall pay A vista the following: Fifty percent (50%) of the estimated upgrade cost of the Interconnection Facilities, which A vista is designated to install, before any significant equipment will be 'ordered; an additional twenty five percent (25%) (For a total of 75%) of the estimated cost of the Interconnection Facilities before A vista will begin construction/installation of the Facilities. Upon satisfactory completion of installation the Generating Company will pay the remaining costs for a total of 100% compensation of 11- actual costs. If the actual cost of construction is less than 75% of the estimated cost Avista will rebate the Generating Company the ~ifference between 75% of the estimated cost and actual upgrade cost with interest at the Interest Rate. OPERA TION AND MAINTENANCE Responsibility Subject to the provIsIOns of Sections 9 and 10 Generating Company shall construct operate and maintain Generator-Owned Interconnection Facilities and equipment at its own risk and expense in accordance with Good Industry Practices. If A vista is retained by Generating Company to perform any of Generating Company s obligations under this Section 5., a separate agreement will be executed by the Parties with respect to such construction , operation or maintenance of Generator-Owned, In terconnection Facilities. Interruption. In addition to any curtailments pursuant to Section 5. A vista may require Generating Company to disconnect, curtail , interrupt or reduce operation of the Generation Facility if Avista determines that curtailment, interruption or reduction is necessary because of Force Majeure, or to protect persons and property from injury or damage, or because of an Emergency, necessary system maintenance or system modification.A vista shall use its best efforts to keep any period of curtailment interruption, or reduction to a minimum. In order not to interfere unreasonably with Generating Company s operations, where practical and possible, Avista shall give Generating Company reasonable prior notice of any curtailment, interruption, or reduction, the reason for its occurrence and its probable duration. Avista shall promptly notify Generating Company of the reasons for any such disconnection , interruption suspension or curtailment. A vista shall use its best efforts to mitigate and limit the duration of any such disconnection , interruption, supervision or curtailment. Emergency In the event of an Emergency requiring a curtailment interruption or reduction in deliveries, the curtailing, interrupting or reducing Party shall use its best efforts to promptly notify the other Party of the action taken or to be taken, the reason for such action and its probable duration. 5.4 Precautions . The Parties shall take all precautions which are necessary to prevent bodily harm to persons and damage to Interconnection Facilities in connection 12- with construction activities or the interconnection of the Generation Facility with A vista Electric System. Contact Information. Any contact or communications between Avista and Generating Company required under this Section 5 or required for operation of the Generation Facility shall take place in accordance with Exhibit E. Reliability Criteria. In carrying out the requirements of this Agreement neither Party shall be required to take actions that would violate any provision of the reliability criteria, standards , guidelines and operating procedures of NERC or WECC, its FERC licenses (if any), or applicable governmental laws or regulations. In addition the Generating Company will be required to meet all required applicable NERC and WECC reliability requirements. As of the Effective Date of this Agreement, A vista is not a signatory to the WECC Reliability Management System Agreement ("RMS Agreement" However, if at any time during the term of this Agreement, A vista, either voluntarily or otherwige, becomes subject to the provisions of the RMS Agreement, the Generating Company shall undertake all necessary actions to comply with the RMS Agreement as may be requested by A vista. Maintenance Schedule. Avista shall notify Generating Company before finalizing any proposed schedule for performing maintenance of Avista s Electric System that involves a Maintenance Outage that will impact the Generation Facility and shall consult with and make reasonable efforts to accommodate the needs of Generating Company in scheduling a Maintenance Outage of A vista s Electric System in accordance with Good Industry Practice. Generating company shall notify A vista before finalizing any proposed schedule for performing maintenance of Generating Company s Electric System that involves a Maintenance Outage that will impact Avista s Electrical System and shall consult with and make reasonable efforts to accommodate the needs of A vista in scheduling a Maintenance Outage of Generating Company Electric System in accordance with Good Industry Practice. METERING, COMMUNICATION AND DATA Metering ReQuirements Generating Company will continue to own interconnection facility metering and A vista will continue to maintain such metering on 13- Generating Company s side of the Interconnection Point. A vista will continue to own and maintain metering on its side of the Interconnection Point.Meters are located as specified in Exhibit D. Exhibit D shall also specify any necessary adjustment factors if the location of the metering system is not at the Interconnection Point, or requires loss compensation. All such meters will be installed, tested and inspected in accordance with Avista s meter testing program as filed with the Idaho Public Utilities Commission, with the exception that testing will not occur any less frequently than once every two years for solid-state electronic meters. If required by Generating Company, Avista shall provide copies of applicable test and calibration records and calculations. A vista shall permit a representative of Generating Company to be present at all times the meters are being tested. In addition, A vista will test any or all of such meters as may reasonably be requested by Generating Company. Reasonable costs for such requested test shall be paid by Generating Company unless any of the meters is found to be inaccurate in which case A vista shall pay for such test. Metering Location. Existing metering locations will be maintained. As provided in the Power Agreement, metering will be compensated to account for Facility Station Service and losses. Communications. Communications equipment specifications are set out in Exhibits Band C. The existing communications system provides real-time power and energy data. Modifications to Metering or Communications In the event that modifications to existing metering or communications facilities become necessary, A vista shall determine the necessary modifications in consultation with Potlatch. Potlatch shall pay the costs of any such modifications. BILLINGS AND PAYMENT FOR REIMBURSABLE SERVICES Invoices. Any invoices for reimbursable services provided to the other Party under this Agreement during the preceding month shall be prepared within a reasonable time after the first day of each month. Each invoice shall delineate the month in which services were provided, shall fully describe the services rendered and shall be itemized to reflect the services performed or provided. The invoice shall be paid within 14- twenty (20) days of the invoice date. All payments shall be made in immediately available funds payable to the other Party, or by wire transfer to a bank named by the Party being paid, provided that payments expressly required by this Agreement to be mailed shall be mailed in accordance with Section 7. Address. Any payments required to be made by Generating Company under this Agreement shall be made to A vista at the following address: For Wire Transfers:For Other Payments A vista Corporation Attn: Director, Transmission Operations 1411 East Mission Spokane, W A 99252-0001 US Bank ABA #125000105 For credit to: A vista Corporation Account No.1 53592234162 Any payments required to be made by A vista under this Agreement shall be made to Generating Company at the following address: For Wire Transfers Wachovia Corp ABA #061000227 For credit to: Potlatch Corporation Account No. 2000127703660 For Other Payments Potlatch Corporation Idaho Pulp & Paperboard Attn: Craig Crowel O. Box 1126 Lewiston, ill 83501-1126 Interest.The rate of interest on any amount not paid when due shall be equal to the Interest Rate in effect at the time such amount became due. Interest on delinquent amounts shall be calculated from the due date of the bill to the date of the payment. When payments are made by mail , bills shall be considered as having been paid on the date of receipt by the other Party. Nothing contained in this Section 7 is intended to limit either Party s remedies under Section 13 of this Agreement. 7.4 Effect of Payment.Payment of an invoice shall not relieve the paying Party from any responsibilities or obligations it has under this Agreement, nor shall such payment constitute a waiver of any claims arising hereunder. Billing Dispute. If all or part of any bill is disputed by a Party, that Party shall promptly pay the amount that is not disputed and provide the other Party a 15- reasonably detailed written explanation of the basis for the Dispute pursuant to Section 15. The disputed amount shall be paid into an independent escrow account pending resolution of the Dispute, at which time the prevailing Party shall be entitled to receive the disputed amount, as finally determined to be payable, along with interest accrued at the Interest Rate through the date on which payment is made, within ten (10) business days of such resolution. Audit.Subject to the confidentiality provisions of Section 12, within two (2) years following a calendar year, during normal business hours, Generating Company and A vista shall have the right to audit each other s accounts and records pertaining to transactions under this Agreement that occurred during such calendar year at the offices where such accounts and records are maintained; provided, however that the audit shall be limited to those portions of such accounts and records that reasonably relate to the services provided to the other Party under this Agreement for said calendar year. The Party being audited shall be entitled to review the audit report and any supporting materials. No Right to Collection Costs. Neither Party shall be responsible for the other Party s costs of collecting amounts due under this Agreement, including attorney fees and expenses and the expenses of arbitration. FORCE MAJEURE Events.Neither Party shall be liable to the other Party for, or be considered to be in breach of or default under this Agreement, on account of any delay in performance due to any of the following events, which event or circumstance was not anticipated as of the Effective Date ("Force Majeure 1.1 Any cause or condition beyond such Party s reasonable control that such Party is unable to overcome by the exercise of reasonable diligence , including but not limited to: fire, flood, earthquake, volcanic activity, wind, drought and other acts of the elements; court order and act of civil , military or governmental authority; strike lockout and other labor dispute; riot, insurrection , terrorism, sabotage or war; Governmental Rules; Forced Outage; breakdown of or damage to facilities or equipment; electrical disturbance originating in or transmitted through such Party s electric system or 16- any electric system with which such Party s system is interconnected; any interruption of transmission service required for the performance of this Agreement that is excused by reason of force majeure or uncontrollable forces under a Party s contract with a transmission service provider; and, any act or omission of any person or entity other than such Party, and Party s contractors or suppliers of any tier or anyone acting on behalf of such Party; or 1.2 Any action taken by such Party which is, in the sole judgment of such Party, necessary or prudent to protect the operation, performance, integrity, reliability or stability of such Party s electric system or any electric system with which such Party s electric system is interconnected, whether such actions occur automatically or manually. Delay In the event of any Force Majeure occurrence, the time for performance thereby delayed shall be extended by a period of time reasonably necessary to compensate for such delay. Nothing contained in this paragraph shall require any Party to settle any strike , lockout or other labor , dispute. In the event of a Force Majeure occurrence, which will affect performance under this Agreement, the non performing Party shall provide the other Party written notice as soon as practicable after the occurrence of the Force Majeure event. Such notice shall include the particulars of the occurrence, assurances that suspension of performance is of no greater scope and of no longer duration than is required by the Force Majeure and that best efforts are being used to remedy its inability to perform. The nonperforming Party shall remedy the Force Majeure occurrence with all reasonable dispatch. The performing Party shall not be required to perform or resume performance of its obligations to the non performing Party corresponding to the obligations of the performing Party excused by the Force Majeure occurrence. Change of Ownership. Force Majeure does not include changes in the ownership, occupancy, or operation of the Facility or Avista if such changes occur because of normal business occurrences which include but are not limited to: changes in business economic cycles; recessions; bankruptcies; tax law changes; sales of businesses; closure of businesses; changes in production levels; and, changes in system operations. 17- 8.4 Payments Force Majeure does not excuse any Party from making payments of money due under this Agreement for services rendered prior to the Force Majeure event. INDEMNITY Generating Company s Duty to Indemnify Potlatch shall indemnify, hold harmless and defend A vista, and its officers , directors , employees , affiliates managers, members, trustees , shareholders , agents , contractors, subcontractors, affiliates employees, invitees and successors, from and against any and all third party claims demands , suits, obligations , payments, liabilities , costs , losses , judgments, damages and expenses (including the reasonable costs and expenses of any and all actions, suits proceedings, assessments , judgments, settlements , and compromises relating thereto reasonable attorneys' and expert fees and reasonable disbursements in connection therewith) for damage to property, injury to any person or entity, or death of any indi vidual, including A vista s employees and affiliates ' employees , Potlatch's employees or any other third parties , to the extent caused wholly or in part by any act or omission negligent or otherwise , by Potlatch or its officers, directors , employees, agents contractors, subcontractors and invitees arising out of or connected with Potlatch' performance or breach of this Agreement, or the exercise by Potlatch of its rights hereunder; provided, however that the provisions of this Section shall not apply if any such injury, death or damage is held to have been caused by. the sole negligence or intentional wrongdoing of A vista, its agents or employees. The foregoing indemnification obligation shall not be limited in any way by workers' compensation laws or by any limitation on the amount or type of damages , compensation or benefits payable by Potlatch under applicable workers' compensation laws. Avista Duty to Indemnify Avista shall indemnify, hold harmless and defend Potlatch , and its officers, directors , employees , affiliates , managers , members trustees , shareholders , agents, contractors, subcontractors , invitees and successors, from and against any and all third party claims, demands , suits, obligations, payments liabilities , costs , losses, judgments , damages and expenses (including the reasonable costs and expenses of any and all actions , suits, proceedings, assessments, judgments 18- settlements , and compromises relating thereto, reasonable attorneys' and expert fees and reasonable disbursements in connection therewith) for damage to property, injury to any entity or person, or death of any individual, including Potlatch's employees and affiliates employees , Avista s employees, or any other third parties, to the extent caused wholly or in part by any act or omission, negligent or otherwise, by A vista or its officers, directors employees , agents , contractors, subcontractors and invitees arising out of or connected with A vista s performance or breach of this Agreement, or the exercise by A vista of its rights hereunder; provided, however that the provisions of this Section shall not apply if any such injury, death or damage is held to have been caused by the sole negligence or intentional wrongdoing of Potlatch its agents or employees. The foregoing indemnification obligation shall not be limited in any way by workers' compensation laws or by any limitation on the amount or type of damages, compensation or benefits payable by A vista under applicable workers' compensation laws. Notice. A Party seeking indemnification under this Agreement ("First Party ) shall give the other Party ("Second Party ) notice of the claim or action giving rise to a right of indemnification as soon as practicable, but in any event on or before the thirtieth (30th) day after the First Party s actual knowledge of such claim or action. The notice shall describe the claim or action in reasonable detail , and shall indicate the amount (estimated if necessary) of the claim or action. Any failure of the First Party to provide the notice required by this Section shall not affect the First Party s rights to indemnification except to the extent the Second Party is actually and materially prejudiced as a result of such failure. Neither Party may settle or compromise any claim for which indemnification is sought under this Agreement without the prior consent of the other Party; provided, however said consent shall not be unreasonably withheld or delayed. Each Party s indemnification obligation shall survive expiration, cancellation or early termination of this Agreement. Acknowledgment to Negotiation POTLA TCH AND A VISTA SPECIFICALL Y WARRANT THAT THE TERMS AND CONDITIONS OF THE FOREGOING INDEMNITY PROVISIONS ARE THE SUBJECT OF MUTUAL NEGOTIATION BY THE PARTIES, AND ARE SPECIFICALLY AND , - 19- EXPRESSL Y AGREED TO IN CONSIDERA TION OF THE MUTUAL BENEFITS DERIVED UNDER THE TERMS OF THE AGREEMENT. 10.LIMITATION OF LIABILITY 10.Limitation of Liability. With respect to claims by and between the Parties under this Agreement, the measure of damages at law or in equity in any action or proceeding shall be limited to direct actual damages only. Such direct actual damages shall be the sole and exclusive remedy and all other remedies or damages at law or in equity are waived and neither Party shall be liable in statute, contract, in tort (including negligence), strict liability, warranty or under any other legal theory or otherwise to the other Party, its agents , representatives, and/or assigns, for any special , incidental punitive, exemplary or consequential loss or damage whatsoever, including, but not limited to, loss of profits or revenue for work not performed, for loss of use of or under- utilization of the other Party s facilities, loss of use of revenues, attorneys' fees , litigation costs, or loss of anticipated profits, resulting from either Party s performance or non- performance of an obligation imposed on it by this Agreement, without regard to the cause or causes related thereto, including the negligence of any Party. The Parties expressly acknowledge and agree that this limitation shall not apply to any claims for indemnification under Section 9 of this Agreement. The provisions of this Section shall survive the termination or expiration of this Agreement. 10.Limitation of Liability for WIS Parties. Notwithstanding the provisions of Subsection 10.1 above, if both Avista and Potlatch are parties to the Western Interconnected Systems Limitation of Liability ("WIS") Agreement, then the WIS Agreement shall control their liabilities with respect to damages to the Facility, the interconnection facilities, or A vista s electric system. INSURANCE. 11.1 General Liability. The Parties agree to maintain, at their own cost and expense, general liability, workers ' compensation, and other forms of insurance relating to their operations for the life of this Agreement in the manner, and amounts, at a minimum 11. as set forth below. 20- 11.1.1 Workers' Compensation Insurance in accordance with all applicable state, federal and maritime law, including Employer s Liability Insurance in the amount of $1 000 000 per occurrence; 11.1.2 Commercial General Liability Insurance, including Contractual Liability Coverage for liabilities assumed under this Agreement, and Personal Injury Coverage in the minimum amount of $5 000 000 per occurrence for bodily injury and property damage. The Generating Company s policy shall include Avista as an additional insured. 11.1.3 Where a Party has more than $100 million in assets it may, at its option, self-insure all or part of the insurance required in this Section 11; provided, however the self-insuring Party agrees that all other provisions of this Section 11 including, but not limited to, waiver of subrogation, waiver of rights of recourse , and additional insured status , which provide or are intended to provide protection for the other Party and its affiliated and associated companies under this Agreement, shall remain enforceable. A Party s election to self-insure shall not impair, limit, or in any manner result in a reduction of rights and/or benefits otherwise available to the other Party and its affiliated and associated companies through formal insurance policies and endorsements as specified in the above parts of this Section 11. The self-insuring Party agrees that all amounts of self-insurance, retentions and/or deductibles are the responsibility of and shall be borne by the self-insuring Party. 11.2 Certificates. Within fifteen (15) days of the Effective Date, and each anniversary of the Effective Date , during the term of this Agreement, (including any extensions), each Party shall provide to the other Party, properly executed and current certificates of insurance with respect to all insurance policies required to be maintained by such Party under this Agreement. Certificates of insurance shall provide the following information: 11.2.1 Name of insurance company, policy number and expiration date; The coverage required and the limits on each, including the amount of deductibles or self- insured retentions, which shall be for the account of the Party maintaining such policy; 21- 11.2 A statement indicating that the other Party shall receive at least thirty (30) days prior written notice of cancellation or expiration of a policy, or reduction of liability limits with respect to a policy; and 11.3 A statement identifying and indicating that additional insureds have been named as required by this Agreement. 11.Claims Made" Insurance If any insurance is written on a "claims made" basis, the respective Party shall maintain the coverage for a minimum of seven years after the termination of this Agreement. 11.4 Waiver of Subrogation. To the extent permitted by the insurer and commercially reasonable, each Party shall obtain waivers of subrogation in favor of the other Party from any insurer providing coverage that is required to be maintained under this Section 11 , except for the coverage required under Section 11.1.1. A Party shall not be required to obtain a waiver of subrogation if the other Party is not able to obtain a waiver of subrogation from its insurance carrier. CONFIDENTIALITY 12.Definition . " Confidential Information shall mean any confidential proprietary or trade secret information or a plan , specification, pattern, procedure, design 12. device, list concept, policy or compilation relating to the present or planned business of a Party, which is designated in good faith as confidential by the Party supplying the information, whether conveyed orally, electronically, in writing, through inspection or otherwise, except that the real-time in-plant data, shall be considered Confidential Information without the need for designation, 12.General Obligations 12.1 Each Party shall hold in confidence any and all Confidential Information unless: (i) compelled to disclose such information by Governmental Rules or as otherwise provided for in this Agreement; or (ii) to meet obligations imposed by Governmental Authority or by membership in NERC or WECC (including other transmission providers). Information required to be disclosed under (i) or (ii) above, does not, by itself, cause any information provided by Potlatch to Avista to lose its confidentiality. To the extent it is necessary for either Party to release or disclose such 22- information to a third party in order to perform that Party s obligations herein , such Party shall advise said third party of the confidentiality provisions of this Agreement and use its best efforts to require said third party to agree in writing to comply with such provisions. 12.During the term of this Agreement, and for a period of three (3) years after the expiration or termination of this Agreement, except as otherwise provided in this Section 12, each Party shall hold in confidence and shall not disclose to any person Confidential Information. 12.Each Party shall use at least the same standard of care to protect Confidential Information it receives as it uses to protect its own Confidential Information from unauthorized disclosure, publication or dissemination. 12.Excluded Information.Confidential Information shall not include information that the receiving Party can demonstrate: (i) is generally available to the public other than as a result of disclosure by the recei ving Party; (ii) was in the lawful possession of the receiving Party on a non-confidential basis prior to receiving it from the disclosing Party; (iii) was supplied to the receiving Party without restriction by a third party, who, to the knowledge of the receiving party, after due inquiry was under no obligation to the disclosing party to keep such information confidential; (iv) was independently developed by the receiving party without reference to Confidential Information of the disclosing party; (v) , or becomes, publicly known, through no wrongful act or omission of the receiving Party or Breach of this Agreement; or (vi) required, in accordance with Subsection 12.4 of this Agreement, to be disclosed by any Governmental Authority or is otherwise required to be disclosed by law or subpoena, or is necessary in any legal proceeding establishing rights and obligations under this Agreement. Information designated as Confidential Information will no longer deemed confidential if the Party that designated the information as confidential notifies the other Party that it no longer is confidential. 12.4 Subpoena If a Governmental Authority or entity with the right, power and apparent authority to do so requests or requires either Party, by subpoena, oral deposition, interrogatories, requests for production of documents , administrative order, or otherwise , to disclose Confidential Information , that Party shall provide the other Party with prompt notice of such request(s) or requirement(s) so that the other Party may seek 23- an appropriate protective order or waive compliance with the terms of this Agreement. The notifying Party shall have no obligation to oppose or object to any attempt to obtain such production except to the extent requested to do so by the disclosing Party and at the disclosing Party s expense. If either Party desires to object or oppose such production, it must do so at its own expense. The disclosing Party may request a protective order to prevent any Confidential Information from being made public. Notwithstanding the absence of a protective order or waiver, the Party may disclose such Confidential Information which, in the opinion of its counsel, the Party is legally compelled to disclose. Each Party shall use reasonable efforts to obtain reliable assurance that confidential treatment will be accorded any Confidential Information so furnished, 12.Use in Arbitration. Each Party may utilize information or documentation furnished by the disclosing Party in any dispute resolution proceeding or in administrative agency or court of competent jurisdiction addressing any dispute arising under this Agreement, subject to a confidentiality agreement with all participants (including, if applicable, any arbitrator) or a protective order. 12.Breach. The Parties agree that monetary damages by themselves will be inadequate to compensate a Party for the other Party s Breach of its obligations under this Section 29. Each Party accordingly agrees that the other Party is entitled to equitable relief, by way of injunction or otherwise , if it breaches or threatens to breach its obligations under this Section 12. 13.DEFAULT 13.Occurrence. A breach of this Agreement ("Breach") shall occur upon the failure by a Party to perform or observe any material term or condition of this Agreement. A default of this Agreement ("Default") shall occur upon the failure of a Party in Breach of this Agreementto cure such Breach in accordance with Section 13.2. 13.Specific Event.A Breach of this Agreement shall include: 13.1 The failure to pay any amount when due; 13.2 The failure to comply with any material term or condition of this Agreement, including but not limited to any material Breach of a representation, warranty or covenant made in this Agreement; 24- 13.3 A Party s abandonment of its work or the facilities contemplated in this Agreement; 13.4 If a Party: (1) becomes insolvent; (2) files a voluntary petition in bankruptcy under any provision of any federal or state bankruptcy law or shall consent to the filing of any bankruptcy or reorganization petition against it under any similar law; (3) makes a general assignment for the benefit of its creditors; or (4) consents to the appointment of a receiver, trustee or liquidator; 13.5 Assignment of this Agreement in a manner inconsistent with the terms of this Agreement; 13.6 Failure of either Party to provide such access rights, or a Party attempt to revoke or terminate such access rights, as provided under this Agreement; or 13.7 Failure of either Party to provide information or data to the other Party as required under this Agreement, provided the Party entitled to the information or data under this Agreement requires such information or data to satisfy its obligations under this Agreement. 13.Continued Operation. Except as specifically provided in the Agreement in the event of a Breach or Default by either Party, the Parties shall continue to operate and maintain , as applicable, facilities and appurtenances that are reasonably necessary for A vista to operate and maintain A vista s Electric System, or for the Generating Company to operate and maintain the Generation Facility, in a safe and reliable manner. 13.4 Notice. Upon the occurrence of an event of Breach, the non-Breaching Party, when it becomes aware of the Breach , shall give written notice of the Breach to the Breaching Party and to any other person a Party to this Agreement identifies in writing to the other Party in advance. Such notice shall set forth , in reasonable detail, the nature of the Breach, and where known and applicable , the steps necessary to cure such Breach. Upon receiving written notice of the Breach hereunder, the Breaching Party shall have thirty (30) days, to cure such Breach. If the Breach is such that it cannot be cured within thirty (30) days , the Breaching Party will commence in good faith all steps as are reasonable and appropriate to cure the Breach within such thirty (30) day time period and thereafter diligently pursue such action to completion. In the event the Breaching Party fails to cure the Breach , or to commence reasonable and appropriate steps to cure the 25- Breach , within thirty (30) days of becoming aware of the Breach, the Breaching Party will be in Default of the Agreement. In the event of a Default, the non-Defaulting Party has the right to seek to terminate the Agreement or take whatever action at law or equity as may be permitted under this Agreement. Any termination under this Agreementshall not take effect until the Idaho Public Utilities Commission either authorizes the termination of this Agreement or accepts written notice of its termination. 13.Action to Remedy. Notwithstanding the foregoing, upon the occurrence of an event of Default, the non-Defaulting Party shall be entitled to commence an action to require the Defaulting Party to remedy such Default and specifically perform its duties and obligations hereunder in accordance with the terms and conditions hereof, and exercise such other rights and remedies as it may have in equity or at law. ASSIGNMENT 14.Generator ReQuired Consent.A vista shall not, without the prior written consent of the Generating Company, assign, pledge or transfer all or any part of, or any right, interest, or obligation under, this Agreement, whether voluntarily or by operation of law; provided, however Avista may, without the consent of the Generating Company, 14. assign its rights and obligations under this Agreement to any person or entity: (i) with which A vista is merged or consolidated, or (ii) to which A vista sells , transfers , or assigns all or substantially all of its transmission and distribution system, so long as the survivor in any such merger or consolidation, or the purchaser, transferee or assignee provides to the Generating Company a valid and binding written agreement expressly assuming and agreeing to be bound by all obligations of A vista under this Agreement. 14.A vista ReQuired Consent.Generating Company may not assign this Agreement or any of its rights , interests or obligations hereunder without the prior written consent of A vista, which consent shall not be unreasonably withheld; provided however that Generating Company may, without the consent of A vista, and by providing prior reasonable notice under the circumstances to A vista, assign, transfer, pledge or otherwise dispose of its rights and interests under this Agreement to: (i) any person in connection with an assignment of the Agreement for financing or refinancing purposes; (ii) any entity created to operate the Facilities; (iii) any affiliate of Generating Company; or (iv) any 26- purchaser of the Facilities. A vista agrees to execute and deliver such documents as may be reasonably necessary to accomplish any such assignment , transfer, pledge or disposition of rights, so long as A vista s rights under the Agreement are not altered amended, diminished or otherwise impaired, and Generating Company agrees to reimburse A vista for all reasonable costs incurred in connection with the execution or delivery of such documents. 14.3 . Continuing Obligations. Any assignments authorized as provided for in this Section 14 will not operate to relieve the Party assigning this Agreement or any of its rights , interests or obligations hereunder of the responsibility of full compliance with the requirements of this Agreement unless: (i) the other Party consents , such consent not to be unreasonably withheld; and (ii) the assignee agrees in writing to be bound by all of the obligations and duties of the assigning Party provided for in this Agreement. 14.4 Binding Agreement.This Agreement and all of the provisions hereof are binding upon , and inure to the benefit of, the Parties and their respective successors and permitted assigns. 15.DISPUTE RESOLUTION. Any claim or dispute which either Party may have against the other arising out of or relating to this Agreement or the breach, termination or validity thereof (any such claim or dispute, a "Dispute ) shall be submitted in writing to the other Party. Upon such notice, the Parties shall follow the applicable Dispute Resolution procedures in Exhibit K. 16.GOVERNMENTAL AUTHORITY. This Agreement is subject to the rules, regulations , orders and other requirements now or hereafter in effect , of all governmental authorities having jurisdiction over the Facility, this Agreement, the Parties or either of them.All laws, ordinances, rules regulations, orders and other requirements , now or hereafter in effect, of governmental authorities that are required to be incorporated in agreements of this character are by this reference incorporated in this Agreement. 17.SEVERAL OBLIGATIONS. 27- Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several not joint or collective, This Agreement shall not be interpreted or construed to create an association, joint venture or partnership between the Parties or to impose any partnership obligations or liability upon either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. Further, neither Party shall have any rights , power or authority to enter into any agreement or undertaking for or on behalf of, to act as to be an agent or representative of, or to otherwise bind the other Party. 18.IMPLEMENT A TION. Each Party shall take such action (including, but not limited to, the execution acknowledgement and delivery of documents) as may reasonably be requested by the other Party for the implementation or continuing performance of this Agreement. 19.AMENDMENT. No change, amendment or modification of any provision of this Agreement shall be valid unless set forth in a written amendment to this Agreement signed by both Parties. 20.NOTICES. All written notices required by this Agreement shall be mailed or delivered as follows: to A vista:A vista Corporation Attn: Director, Transmission Operations O. Box 3727 Spokane, Washington 99220-3727 to Generating Company:Vice President, Pulp & Paperboard Division Potlatch Corporation 805 Mill Road O. Box 1016 Lewiston , ill 83501 Changes in persons or addresses for submittal or written notices by a Party to this Agreement shall be made in writing to the other Party and delivered in accordance with 28- this Section 20. Any verbal notice required hereby which affects the payments to be made hereunder shall be confirmed in writing as promptly as practicable after the verbal notice is given. 21.INTEGRA TION. This Agreement and all exhibits, appendices and attachments thereto shall constitute the entire agreement of the Parties with respect to the interconnection of the Generation Facility and supercede all earlier discussions or understandings with respect to the subject matter hereof. 22.NON- WAIVER. No failure or delay on the part of A vista or Generating Company in exercising any of its rights under this Agreement, no partial exercise by either Party of any of its rights under this Agreement, and no course of dealing between the Parties shall constitute a waiver of the rights of either Party under this Agreement. Any waiver shall be effective only by a written instrument signed by the Party granting such waiver, and such shall not operate as a waiver of, or estoppel with respect to, any subsequent failure to comply therewith. 23.NO THIRD-PARTY BENEFICIARIES. Except as may be specifically provided in this Agreement, there are no third-party beneficiaries of this Agreement. Nothing contained in this Agreement, express or implied, is intended to confer any right, interest, obligation, or remedy on anyone other than the Parties , and their respective successors, heirs and assigns permitted under Section 14. 24.DUTY TO COOPERATE. The Parties hereto agree to execute and deliver promptly, at the expense of the Party requesting such action, any and all other and further instruments, documents and information which may be reasonably requested in order to effectuate the transactions 29- contemplated hereby. The Parties agree to cooperate and assist each other in acquiring any regulatory approval necessary to effectuate this Agreement. 25.HEADINGS FOR CONVENIENCE ONLY. The section headings herein are inserted for convenience only and are not to be construed as part of the terms hereof or used in the interpretation of this Agreement. 26.CONSTRUCTION OF AGREEMENT. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word "including;' in this Agreement shall mean including without limitation. 27.COUNTERPARTS. This Agreement may be executed in one or more counterparts , each of which shall be deemed an original. 28.RELATIONSHIP OF THE PARTIES. Each Party shall act as an independent contractor with respect to the provision of services hereunder. 29.VENUE, ATTORNEYS FEES AND CHOICE OF LAWS Venue of any action filed to enforce or interpret the provisions of this Agreement shall be exclusively in the United States District Court for the District of Idaho or, the District Court of the State of Idaho encompassing Nez Perce County and the Parties irrevocably submit to the jurisdiction of any such court. In the event of litigation to enforce 'the provisions of this Agreement , the prevailing Party shall be entitled to 30- reasonable costs and attorney s fees in addition to any other relief allowed. This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho, without regard to choice of law provisions, and federal law to the extent it is applicable. 30.COMPLIANCE WITH LAWS. Both Parties shall comply with all applicable laws and regulations of governmental agencies having jurisdiction over the subject matter of this Agreement and the operations of the Parties. 31.INV ALID PROVISION. The invalidity or unenforceability of any provision of this Agreement shall not effect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 32.REPRESENTATION OF AUTHORITY. Each of the undersigned signatories represents and warrants that such signatory has all necessary and proper authorization to execute and deliver this Agreement on behalf of the Party on behalf of which such signatory is signing. 33.EXHIBITS. This Agreement includes the following exhibits that are attached and incorporated by reference herein: Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Definitions Description of Interconnection Facilities , Ownership and Costs Specific Interconnection Requirements Metering Specifications, Points and Locations Contact Information Remedial Action Schemes Governor Control Systems and Terminal Voltage Regulators Required System Upgrades 31- Exhibit I Exhibit Easements Exhibit K Exhibit L Description of Generation Facility Dispute Resolution Procedures Insurance Requirements Exhibit M Application for Electric Generation Interconnection In WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the first date herein-above set forth: A VISTA CORPORATION POTLATCH CORPORATION By: ~kj) () ~rd BY: Randall O. Cloward (Type Name) hlON RAOL (Type Name) Title: ? 4.. :!- t1L "' P-j L-;-.5C~pTitle: Director Transmission Operations Date: September 19, 2003 Date:2(;)03 32- Exhibit A Definitions Agreement"means this GENERATION INTERCONNECTION AGREEMENT including all exhibits , attachments and modifications thereof. Ancillary Services" means energy imbalance service, spinning reserve service, non-spinning reserve service, reactive supply and voltage support service regulation and frequency support service , and scheduling, system control and dispatch service provided over Avista s Electric System, together with such other interconnected operation services as A vista may offer to support the use of its Electric System, and which shall include all ancillary services a transmission provider is required by FERC to provide, while maintaining reliable operation of Avista s Electric System in accordance with Good Industry Practice. A vista" shall mean A vista Corporation and its successors and assigns. A vista-Owned Interconnection Facilities shall mean those Interconnection Facilities shown on Exhibit B as owned by Avista. Confidential Information" shall have the meaning set forth in Section 12 hereof. Control Area shall mean electric system bounded interconnection metering and telemetry, capable of controlling generation to maintain its interchange schedule with other control areas and contributing to frequency regulation and which has received certification by NERC or a regional reliability council of NERC.7. "Dispute" shall have the meaning set forth under Section 15 hereof.8. "Easements" shall have the meaning set forth under Section 4 hereof. Electric System" means all of A vista s electric distribution facilities generating facilities, and transmission facilities and includes electric power lines, poles structures , transmission lines, distribution lines, substations , switching stations, switch gear, generating plants and all associated equipment for generating, transmitting, distributing or controlling flow of power. The term "Electric System" shall include any devices or equipment by which information is originated on an electric system or by the person operating such system, by which such information is transmitted, and by which such information is received either for information or for operation of the system whether by the originating system or by another system. 10.Emergency" means a condition or situation that in the reasonable good faith determination of the affected Party based on Good Industry Practice contributes to an existing or imminent physical threat of danger to life or a significant threat to health property or the environment. 11.Facility Station Service" shall mean all electric service requirements used in connection with the operation and maintenance of the Generation Facilities including, but not limited to parasitic losses, auxiliary, stand-by, supplemental, back-up, 12. maintenance and interruptible power. FERC" shall mean the Federal Energy Regulatory Commission or its successor federal agency. 13.Forced Outage" shall mean taking the Electric System, in whole or in part, Out of Service by reason of an Emergency, that is unanticipated and beyond the reasonable control of A vista. A Forced Outage of A vista s Electric System is not scheduled in accordance with Section 5. 14. 15. Force Majeure" shall have the meaning set forth under Section 8 hereof. Generating Company" shall mean the Party executing this Agreement 16. as "Generating Company" and its successor and assigns. Generation Facility" or "Generation Facilities" means any facility used for the generation of electricity for internal use or for sale at wholesale as specified in Exhibit J and includes all equipment necessary or related to generate electricity. 17.Generator-Owned means thoseInterconnectionFacilities 18. Interconnection Facilities shown on Exhibit B as owned by the Generating Company. Good Industry Practice shall mean the practices , methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Industry Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather includes all acceptable practices , methods , or acts generally accepted in the region, including all applicable and generally followed standards, guidelines, criteria practices and methods established by NERC, the WECC and the NWPP, and including design methods, equipment specification methods , manufacturer quality assurance screening and ordering practices , maintenance practices and the like. When the term Good Industry Practice is used in reference to A vista or to the Interconnection Facilities , the relevant industry is the electric utility industry. 19.Governmental Authority shall mean any federal, state or local government, political subdivision thereof or other governmental, regulatory, quasi- governmental , judicial , public or statutory instrumentality, authority, body, agency, department, bureau, or entity or any arbitrator with authority to bind a Party at law. 20.Governmental Rule(s)" shall mean any law, rule , regulation , ordinance order, code, permit, judgment , or similar form of decision of any Governmental Authority having the effect of law or regulation. 21.Incremental Cost" shall mean the average of all hourly purchases and sales of energy made by A vista during the applicable hour or, if A vista made no purchases or sales in that hour, the average Dow Jones Mid-Columbia Non-firm Index price for either Heavy-Load Hour or Light-Load Hour, as appropriate. 22.Independent Power Producer" or "IPP" means any entity that owns or operates an electricity generating facility that is not included in an electric utility s rate base. This term includes, but is not limited to, all other non-utility electricity producers such as exempt wholesale generators who sell electricity but does not include Qualifying Facilities under PURP A. 23.Interconnected Operations Services" or "IOS" means the resources and control capabilities (excluding generation capacity/energy and transmission capacity), and integration activities required to ensure the operability, reliability, open access, and competitive market structure of the bulk electrical systems. Interconnected Operations Services include, but are not limited to, energy imbalance service spmmng reserve service, non-spinning reserve service, reactive supply and voltage support service regulation and frequency support service, and scheduling, system control and dispatch together with such other Interconnected Operations Services offered to support the use of the Interconnection Facilities and Electric System. 24.Interconnection Cost" shall mean the costs necessary to connect new or modified Facilities to the Electric System, including such reasonable costs imposed on, or incurred by, third parties already interconnected with the Electric System, to the extent that such party can establish the reasonableness of such costs in accordance with State policy. Such costs shall be adjusted to reflect the tax effects to A vista, if any, of Generating Company s payment of Interconnection Costs. 25. "Interconnection Facilities" shall mean all the equipment identified in Exhibit B necessary for the interconnection of the Generation Facility to Avista s Electric System. 26.Interconnection Point(s)" shall mean the point or points at which A vista-Owned Interconnection Facilities are connected to the Generation Facilities of Generator-owned Interconnection Facilities as described in Section 3.of the Agreement. 27.Interconnection Service" shall mean the services provided by A vista to interconnect the Generation Facilities with Avista s Electric System in order to permit synchronized operation of the Generation Facilities on Avista s Electric System pursuant to this Agreement. Interconnection Service does not include any rights to transfer electric energy onto Avista s Electric System or any right to transmission service on Avista Transmission System, which service shall be obtained in accordance with the provisions of Avista s OATT. 28.Interest Rate" shall mean the interest rate calculated in accordance with the methodology specified for interest on refunds in the FERC regulations at 18 C.F.R. ~35 . 19a(a)(2)(iii). 29. "Jurisdictional Authority" shall mean the sole authority of the Avista System Operations Office to direct and control all electric lines and equipment, including Generator-Owned Interconnection Facilities necessary to isolate the Generation Facility from Avista s Electric System, and their means of disconnection as described in chapter 296-45-335 Washington Administrative Code or its successor. 30.Maintenance Outage shall mean in the case of the Generation Facilities, taking the Generation Facilities, in whole or in part, Out of Service to perform work on specific components that can be deferred beyond the end of the next weekend but that requires the Generation Facilities, in whole or in part, be removed from service before the next Planned Outage. In the case of A vista s Electric System, Maintenance Outage means taking the Electric System, in whole or in part, Out of Service, to perform work on specific components that can be deferred beyond the end of the next weekend but that requires the Electric System, in whole or in part, be removed from service before the next Planned Outage. For both the Generation Facilities and the Electric System, a Maintenance Outage typically has a flexible start date, and mayor may not have a predetermined duration. Maintenance Outage shall be coordinated by the Parties pursuant to Section 5. 31.NERC" shall mean the North American Electric Reliability Councilor its successor. 32.Nominal Voltage" shall mean a specified accepted standard voltage level offered by A vista. 33. 34. NWPP" means the Northwest Power Pool or its successor. Open Access Transmission Tariff' or "OA TT" shall mean A vista open access transmission tariff on file with the FERc. 35.Out of Service" shall mean , with respect to the Generation Facilities removing from service any non-operational or degraded Generation Facility or component of a Generation Facility that has a materially adverse effect on the Electric System. With respect to the Electric System, Out of Service means removing from service any non- operational or degraded component of the Electric System that has a materially adverse effect on the Facilities. 36.Parallel Operation" means operation of the Generation Facility in a manner such that the Generation Facility is connected to the Generating Company electric load simultaneously with connection of the load to A vista s Electric System. 37.Party" or "Parties" shall have the meaning set forth in the introductory paragraph of this Agreement. 38.Person shal1 mean any individual , partnership, limited liability company, joint venture , corporation , trust, unincorporated organization, or governmental entity or any department or agency thereof. 39.Planned Outage" shall mean, in the case of the Generation Facilities taking the Generation Facilities, in whole or in part, Out of Service to perform work or maintenance that is scheduled in advance and has a predetermined start date and duration. In the case of the Electric System, Planned Outage means taking the Electric System, in whole or in part, Out of Service to perform work or maintenance that is scheduled in advance and has a predetermined start date and duration. 40.Qualified Personnel" shall mean individuals trained for their positions pursuant to Good Industry Practice. 41. "Qualifying Cogeneration Facility " or "QF" means a facility used to generate electrical energy and thermal energy such as heat or steam, which is used for industrial, commercial, heating or cooling purposes through the sequential use of energy, as defined by the Public Utility Regulatory Policies Act of 1978 and applicable Federal Energy Regulatory Commission regulations, in effect as of the date of this Agreement. 42. "Qualifying Facility Status shall mean the recognition and acknowledgement received from the Federal Energy Regulatory Commission that a cogeneration or small power production facility is a Qualifying Cogeneration Facility or a Qualifying Small Power Production Facility under the Public Utility Regulatory Policies Act of 1978 and applicable Federal Energy Regulatory Commission regulations, and that the operation of the cogeneration or small power production facility is such that compliance with the terms and conditions of the Qualifying Facility Status is maintained throughout the facility s operating life. 43. "Qualifying Small Power Production Facility" means a facility used to generate electric power using biomass, waste , or renewable resources , including wind solar, or water, as defined by the Public Utility Regulatory Policies Act of 1978 and applicable Federal Energy Regulatory Commission regulations , in effect as of the date of this Agreement. 44.Remedial Action Scheme" means protective systems that typically utilize a combination of conventional protective relays, computer-based processors, and telecommunications to detect and take automated corrective action for wide-area disturbances other than normal isolation of faulted elements of the Electric System. 45.Required System Upgrades shall mean upgrades to the Electric System that are necessary to accomplish the interconnection between the Generation Facilities and the Electric System so as to provide Interconnection Service, such as those resulting from short circuit analyses , power flow analyses and transient stability analyses. 46.System Operations" or "System Operations Office" shall mean the personnel and department that operates Avista s Control Area. 47.Term" of this Agreement shall have the meaning set forth in Section 2 hereof. 48.Transmission System shall mean all of A vista s facilities that are classified as part of the transmission function in Avista s GATT or its successor and the Interconnection Facilities owned by A vista. 49.WIS Agreement" means the Agreement Limiting Liability Among Western Interconnected Systems. 50.WECC" means the Western Electricity Coordinating Council or its successor organization. 51.WECC Regional Security Plan" means a plan adopted and approved by the WECC to meet NERC requirements for a security process for Control Area operations within the WECC. Exhibit B Description of Interconnection Facilities. Ownership and Costs Existing A vista-Owned and Maintained Interconnection Facilities, and installation work previously accomplished. Facilities are owned and maintained at Avista s expense. Quantity 220 8800 300 400 Clearwater 115 kV/34.5 kV Substation Facilities Description 115 kV 50/67/83 MV A Transformer w/Arresters & 4 sets of CT's Installed 115 kV, 50 MV A Transformer w/Oil Containment. Ft. Station Fencing - Plain Walk Gate, 4' - Plain Cubic Yd. Concrete w I Forming & Rebar Material Ft. of Control Cable Ft. of 18" Trench for Control Cable - Large Station (Labor) Ft. of 3 Inch Aluminum Pipe 15 kV Cap & Pin Insulators SMD - 20 Power fuses wi Fuses - Station Service 34.5 kV 2000 A Air Switch 34.5 kV 2000 A, 40 leA, InteITupting Power Circuit Breaker wi 4 sets CT' 100 kV A Station Service Transformer 34.5 kV 300: 1 Potential Transformer 34.5 kV Tie Interchange Metering Package Transformer Differential Relaying Package Utility Tie Differential Relaying Package 34.5 kV Breaker Failure Relaying Package 115 kV WWP Single Side Switchboard wlo Relays Standard Circuit Switcher Relay Package 34.5 kV Tie PCB Relay Package Neutral Grounding Transformers Neutral Grounding Resistors 34.5 kV Steel Structures (SW, PT, STA, SVC) 115 kV Steel Dead-end Transmission Pole (Lolo #2 Line) Supervisory and Communications Facilities Quantity Description Metering Translation System Microwave Channel to Spokane SCADA Microwave channel to Spokane SCADA Remote Terminal Unit Existing Potlatch-Owned and Maintained Interconnection Facilities , and installation work previously accomplished. Facilities are owned and maintained at Potlatch's expense. Quantity AB Part No. 1771-AF1 Description Fiber Optic Converter est. 600' 1771-ASB 1785L T2 1785- Fiber Optic Cable I/O Adapter PLC5/25 10' 1771- 1771-CP2 1770- 8k Memory Module I/O Chassis (rack mount) 12 slot I/O Chassis (rack Mount) 8 slot PTSIPDS Software 3.5" Media Analog Input Module (non-iso) Analog Output module (4-20mA) Discrete Input Module (1O-30V DC) Discrete Output Module (0-24V DC) Power Supply 16A 5V DC (enclosure) Power Supply 16A 5VDC (chassis side) Power Supply Cable - 5' 1771-A3B 1771-A2B 6203-PLC5 1771-IFE 1771-0FE2 1771-IBD 1771-0ZL 1771PZ Twin axial Cable 1770- 1770- 1784-T35 Resistor 150 Ohm 0. Lithium Battery 1785- 1784-CP5 Plant Floor Terminal (PC/AT 386) Peer communications Link Interface u_uu_uu Cable Control View PC Color Graphics System 1784-T50 Control View PC Data Logger AT Compatible Keyboard Potlatch Standard 19" Cabinet ---_____n__- uu__u_--- 1771- RS- 232 Converter Basic Module ** ( Required for configuration as specified by Avista) Exhibit C Specific Interconnection ReQuirements General Interconnection. 1.1 1.2 1.3 Generation Facility will continue to be interconnected at 34.5 kV. Generating in parallel with Generating Company s load will continue. Existing transformers as connected will continue to provide interconnection transformation. 1.4 1.5 1.6 Generator sizes as installed are satisfactory. All existing generators are synchronous machines. Real-time status of all of the existing elements of the Generation Facility, as well as direct voice communications with the operations personnel at the Generation Facility will continue. Metering, Communications and Data Existing energy meters that measure kWh and kV ARh including communications links will be maintained. Telemetry of real and reactive power, as well as kWh and kV ARh will continue to be transmitted to A vista s System Operations Office. Verbal communications will continue between Generation Facility operator and A vista s System Operations Office. Protection. Depending on size and location, Generation Facility may be required to participate in any Remedial Action Schemes designated by A vista, NERC , WECC NWPP, or any other regional operation authority (Exhibit F). All generator protective relaying as installed will be maintained. If remedial action modifications are warranted by A vista, NERC , WECC, NWPP or any other regional operation authority they will be implemented at Potlatch's expense. 4. Voltage and Frequency Steady state and transient voltage and frequency support will continue to be required from all generators. The Generation Facility will comply with NERC , WECC, NWPP policies and standards as they apply specifically to steam/turbine cogeneration units running primarily under pressure control. Existing excitation systems will stay as they presently exist. Pursuant to current NERC policies and standards, both parties agree that all of the generating unit's excitation systems were installed prior to November 18, 1993 (See Exhibit G) and do not require power system stabilizers. For any future modification excitation systems, specific response characteristics , regulation abilities, and operating ranges will be subject to testing per NERC , WECC, NWPP policies and standards as they apply specifically to steam/turbine cogeneration units running primarily under pressure control. Results of any testing will be supplied to A vista. Generating Units No.'s 1 and 2 are presently out of service. Any testing required by this provision , will take place if and when the units are put back into service. All generators will comply with NERC, WECC and ANSI/IEEE standards for speed/load control if operated in speed/load control mode as they apply specifically to steam/turbine cogeneration units running primarily under pressure control. 4.4 Generation Facility and/or associated loads (Potlatch Lewiston Plant Load) will continue to have the capability of operating at a power factor of 95% or better (leading or lagging). A vista s System Operations Office will have the right (during abnormal system conditions) to request generator operation outside of 95% power factor as long as the machine s capabilities are not exceeded. It is recognized that generators will be expected to operate temporarily outside of normal voltage and frequency ranges in order to support area or regional disturbances and prevent widespread outages. The Generating Company will work closely with A vista s operating staff to minimize or prevent widespread outages. Exhibit D Metering Specifications, Points and Locations Metering specifications, locations and points shall be as specified in the Power Agreement. Exhibit E Contact Information Verbal Communications All communications between Generating Company and Avista shall be done verbally by notifying the following parties: (a) Pre-Schedule (5:30 a.m. to approximately 1:30 p.m. on normal business days): A vista Pre-Scheduler (509) 495-4911 Alternate Phone Number: (509) 495-4073 Potlatch Utility Supervisor (208) 799-1923 Alternate Phone Number: (208) 799-1298 (b)Real-Time Schedule (available 24 hours per day): A vista Real-Time Scheduler (509) 495-8534 ' Potlatch Utility Supervisor (208) 799-1923 Alternate Phone Number: (208) 799-1298 (c)During normal business hours, all verbal communications relating to interruptions and outages: A vista System Operator (509) 495-4105 Alternate Phone Number: (509) 495-4934 Potlatch Utility Operator (208) 799-1923 Alternate Phone Number: (208) 799-1298 (d)Outside of normal business hours (nights, weekends, and holidays), all verbal communications relating to interruptions and outages shall take place between the following personnel: A vista System Operator (509) 495-4105 Alternate Phone Number: (509) 495-4934 Potlatch Utility Operator (208) 799-1298 Alternate Phone Number (208) 799-1258 Either Party may provide written notice to the other Party setting forth different contact numbers. Exhibit F Remedial Actions Schemes Presently no changes are required from what is existing. Exhibit G Governor Control Systems and Terminal Voltage Regulators No.1 Turbine Generator (1950) Turbine No. 83530; Generator No. 6784689 GE SCR Excitation System (1984) Exciter Model # 3S7931SA520, Cat. No. 05O3X0700Z01 , IC 7931 ML Number M5030700 Equipment Inst. Book: GEK-8381 Turbine Governor Information Ball Bearing Type , Position Cut-Off - Fluid Damping GE Company Instructions GEI-29500 Pilot Valve and Drive (1953) GEI-46103 No.2 Turbine Generator (1977) Turbine No. 197741; Generator # 316X188 GE Static Exciter (ED-43969), SCT / PPT 3S7931EA520G7 Elem.44C309642 Pressure Governor GEI-87044D Speed Governor GEK-27005A No.3 Turbine Generator (1981) GE Turbine #197836; Generator # 316X374 Excitation: Shaft Driven Commutation GE-134 Excitation System - SCT / PPT 3S7931EA533G4 Diag. 206B4889 Governor- Electrohydraulic Control (EHC) GEK-81497 (1979) Mark IIB No.4 Turbine Generator (1990) ABB Order-NR: 1-411 868 Turbine ID#: MB275-226, DEEK S25-S1O0/L144-200 Generator Type WY 16L-054LLT No. HM 300516 Brushless Exciter ABB Type WBT 74/508/30, Serial No. HM 300 603 Pilot Exciter Type: WPE35-4R20, Serial No. HM300 604 Governor: Pro Control P13 Order No. 1-411868 Dwg. HTDC 307 794 No .system upgrades are required. Exhibit H ReQuired System Upgrades Exhibit I Easements H.. , ' t.~~;.s ':fl MICRO, ;,...l~It'E:t~: ' " L , .' , 'FILMED -, (), THI$ JNQ~NTl)RE ts made, and ~nt~rect intQ this ;c2 ctayof 1~~q~,by ~nqp~twe~nPQTLATCH,CORPORAT1ON" C;1. PelaWCiCE! cqrporationl er~jl1after , INDEXED Y1" FILMED . DWV~i(ED (A MAt~ED Pv' ( . M1CRPF\LM NQ. " . , L :t:~~.EME,Nr:$.. Otl1~r.!$toWWPCq GRANT OF EASEMENT ~rq 0100 /?v '1b$' gClIl~cj "Grantor , aod WAS.tiINGTON WATER PQWE;RCOMPANY" herernCifterCCl\l~cj IIG(Clntee , whp~~aqqre~si~po ,Box 372 7 SpokanB . WA.99220 W'TNES~ETI-I; Grantor, fOf i::l good and valuablec:onsideration, the receiptwhereof Is hereby Clckn9wlecj~WQ,doe$ hereby ,grent unto Granlee. ancjit$ successorsand c:!$$igr:ls , ;a permar:lent easernent'on the Jol owing ,described real property '.in Nez.'Perce'CoLJnty, ~t,c:!Je Qf 'g~ho more particularfyde$cribed pn Exhibit"A'T and shown on tl1e attracheclffiap m(3(kedExhibit"S" alta:c:hed hereto ~ndbythls .r~(er~nGema,qeapart. trerePf, S?j d ,eC:3SJHT1ent~bCl.nqe Jor ;.tl:1e pl,Jrpo~!?of Ihe~q0~~rqGn.Qp, recqn~~rLJc~i9ni (::,.p~t~tjonflnd m9-inteh~nce ~of :~)(i!?Jing ele9t(lgfJl sypstatI9rilswitching ,st~tion a,rid BSs'Ocia1ed Jixturss ancj a ~~a$ re~tJla.tor ,st'ationanq ,asso.cia(e.d fjXtLlres(yC)llecti'y~ly ~tatiQn~)!og.etherwith a$soc;taled p~ripheral L!ndergroLJndgrpLJnc;finggri~;t pqle~ 'ane! ahchor~" and electric transmission lineS into and out ofsaidelectricsl1bstation/switching ?tC3tipo,q toQetherWifh acc:es$, to Gates AS/aUdC,;:!!! as ,more pqrtiCLJlarly~hown $aictExhibit'~B", together with ingress and egress, to be coordInated With Grantor, across existing roads and rdadwaysand across adjoining property of the Grantor resaid 'CC\3, gates.lranSmission Iines ClnGhprs ,and "stations" for the PLJrp9Sesherein m~nti9ne(::t Tile Grantor shall have, the righttq. IQ9ate and install an underground gas transrriissionpipeline GRANT OF EASEMENT ~;;;~ ~)0F1~~' TO: :!~H~$9FWAVDEPAR1'MENT . ItJHl:.IQT:CaWA~~ Cf:JIM'~. OO)('jJ2l PcKAJ,~,S:-'rl.\fiGTON'992Z0 r~i I :' "i.t r;;" if1 " , '- It'v ; 1 '):;)\ 0 ,I . -.L. oJ'W' " .,- 1 o.b b 5:2 F3- gt !3lpqaJion tCJ pe:det~rmined byG.r~ntQrsubj~cttoGrant'ee'sre.asonable 'approvciland ~0 as, nottt;) i'nterferwwith Gr~ntee ~ rightshereincol"1Yexed. This easement gr'~ntsuPer$ede$~:md replaces in it$eb.tjretytt1at~certai lleas$mei1t granted to Grantee by Grantor dn June.2t, 1972 and recarded.as 'Instrument360261 on July 7 '1 $.72. The GrantDr':c;oYenant.9 ""jih Granteethiatitis lawfqllyseizedapd possessed.brIhe real prOPerty abp\ie described arid has a ,goodahd lawfuFright to 'tohveyit or any part thereof, and that it will for~verwarrantand.detend 'the~r,anfhereQY made ,again!;;t th~ lawfql Glaims of'811 perspns wn.pQ1soeyer, All of the rights granted heteUnder to Granteeshatl cea and termirlatein the ..,.. levent the ~stations'a:teno.t. used'fbr a peri.Qctdfop,eyear./nthe' eY~ntof th.f;:t~rminal,qO p(thiseasement Grant,ee a~reesJg rern9Ye jts'pe~~onal Pfqp~ttywjJhin.~JX1Y (60)daYsbf ~s.9i~termini3tJpn,ln tMeeY~ntQ.fJ~rO1,inq.ti 90 Qfth i's$ i3$eme fit G'rahtee 'sh all ~execU fe .and' deliver within fifteen (15) daysofsaidJermlnafiona,Terminationo.f Easernenl document ufficient for rec;ording WiththS Nez Perce; CoontyCIefk,slatin~ that all Ti~h( till~C;lnd intere~tofC3ri3rilee'in anD J9 f,is eCiSerTlE3pt i~ terr)'1ihc;lted Grantor reserves the right to use~anderijoysaTd propeqy except lor the purpps herein granted: but sw;;h M$eshallnqthindw,c;onflict orinterf$te with Grantee s tights heteunqer: The Grantee in acCepting' this easement covenants with the Grantor toat.;;I11 timg~ ho.lct the Grantof harmless frpm allc;laims for perspnal injqryor prQperty (jamage arising t4RANT OF EASEMSNT PL~ 2 95\0: .I3 OLJtpf theGr~riteE;!~LJ1:)~ of 1:)qiqE!i3~~rnentaMd exercjs~ of ~h~ grarit h~rE!inqqrJt13in,~(t IN WITNESS WHEREOF the parties have :caUsed this instrument to be, executed the day and yearhereinabove;rirstwritten. l;~i::E:;~~1, ~;~; ::;;: ~' ~tt~f~t"' . ~:: r ;~;~1 ; , .~;i~Jl~= ,. 'r, ~~B !;';1~~i;~;. ~si st~nt POTJATCtf C9RPQRAT!QN Y:~ G. \,NilliamMorton" Vic~-P..esicjE!nt , Icj~ho Pylp am~ PapE;lf Attest W ASHlNGT() NWA TERPOWER COMPANY , /, ' , " AIA' f~. , , ., i-" ;.~:'~.' "" ' '~;:. i~J-1( p.",).';::j. !l:.,O~ ' ', , 'i~~ "';$i;'i1../i.t') ~~!\iif;" :.", 'jK~ LHO 13-9~1fILED fOf!RE.CQliO (~tJ~I r:~E,G. oy rJ.JLO ,"" " Bl;\ ' , (e. " '" '~)(.."'" .C\'C:je:1"c::::..7'V\:a ,jJ' .~iJ'J - ;;, r-\ ~,-/, ,",-"' .,3tid:7 C2LTY J. ~i!JL62Y qq~dO " , o.,"t:"r"~" Jr'U:CJ', 'L c:n , , " BY~D~P~T'f GRANT OF EASEMENT p~~ 3 'l1b, 1". '-/ STATE. QF IDAHO )$:s. C9l!ntyqf'Nez P:~LC~ On this22.oayqf~1 lS95, b~fbr~rn~1 th~qndersi,9ned, ';3 N9tCiry plJp!iG (nand fQ( 'Ia'id $(afa,par",:oalWc'appaaraJ.lS; WJlWI\!iIM(JRT9N'i\QdT, l. 9J\R,E,," knpwn tq. me to. be th~ Vice Pr~sldentandAs$lst~otSeGretp(Y qfppUa\9.h Cqrpqr~tIQn,thecorporotion,thotexocuted thowithini n~trume ",t c.n9~ckI")9VVled'~~c:I to me fhot,they executed the same for the and Qnhehalfof s.aidcorp,oration. IN WITNES$ WHEREOF Uw.ve ber~4ntp set my h~nd ?pd affIxed rny pff.ici!3 I ~~, tMeqayanq year in 'thi~certifiCC1te JirstCibovewrittP...0; /~i~?~f~1~' """ erl"H:"" ~t:-i Y~: , j";p.':;; c.P~ P/jI~1\,C ~J~!~1~:, t~~1~f ~n I- , NQtaryPuplfc for t.De ~lateofJdaho Hesidirigat Le.wistoh therein. MyCbmmissionexpitesMarch15, t999. SJAT8.0F W~Sl1i1:1'gtQn G9.l;Jntyqf Spokarie )ss, 'oil this ...1&.dayof May .. 1995, be(oretn~1 the IJrrdersi~ned , , Noiarypubri'c in andfdr said .slate, ,personallyappeSired Dbnald\Ma1isani g ' 1\.1.,.. Syms ' knoWn to me to bethe5~!?~fV ~~~t~2~2H~j ,. ' QfWa~hi'ng\9nWater PQw~r :Comp-any, the corporation Ihatexec;utadt/le within instn.Jf1')enf andaGKPOwledged to l11e that they exec;uteq thesametqr th~ Cinct or'- behCilf qf sClidcorpOfation. IN WITNESSWHEREOF I have heteUntoset my hand and affixed my: official seal the dayand year ihlhiscertificatefirst at;1ove w~itten. gwl; 1111111111111/111111111 1111111111111111 III J II 1111:0 Offidill. Stat PATRICIA A. FUHER NOTARY PUBUPSY,TEOFWAsHINGTON'0. C(A;~TY OF SPOKANE . :=. ~ CCMMISSIOIJ!=.XPIFlES:f)Ec;Ei.i8ER9..J9W ~;1;!,~ 'I' ,. i"'l.';~~ It:~i u 1111'lir-;; '.f;i~~~:):;~::!!d:i; C9r\ ~~ ~. 8r;'1~1 NotaryPublit for the State of Washinqf:o Re$idingat Spokan~ . ' " " , th~nein. MY Gpmmis:)ionexpires Dec;e:mber 9. ,1997 GRANTOFEASEMENT p~ 4 tif;" :r 5 "EXHIBIT "A!\ ~parcels orland, hereinafter .identified asPar:cels ". and ", locateP iI1tbe Soutb es~ Q~pf Se~ti9n7~; Township 36 North, Range 5 Wdtof the Bois~Meri(:iian, NczPerce (::bui1ty.Jdaho~aS ShPwri On Exhibit "B "(\YaSliirigtPD , Water Power Company drawingL~34524) ,andasfurtber~cri~below~SaidE~ibi1"B" is'b~l.his t'eferencemadc.apirlhereOL The following descriptions are b~sed ~n:tbePotI:!.tch Corporation Grid, S.ystem and brass aIpsurveymonumel)~"Dilc~with 'C99tQ1nates Nortbing=2116J .416 andE,asting=4 117 #;6, and"J)ij:.~ W\\VilhcQQrd~;l1es ~qrthing=213H,~7&a114J:a$ting=3653A46, ' Parcel "isa 50-foot wide transmission corridor, located 25 feel on eacb side of the following described centerline: BEGINNINGa,l a pOint which is atcoordioates Nortbing=419;8Tl:71. and Easting.. 2.88g,l~ ..57 on the WaShing LOn ~outh Lambert GridSystera, whichpoi.qllsh~~i1)aftcridentlfiedias "Ppint P3" and which P9mtiS'.furtberi~cnWie as suchan saidExhibit SaidWasbingtQnSoulh Lambert C3ridSystenl,p)oroinate$ fo(Point "P~"i)fe ,herebY:Qct1P~as b~itlg ~l1iyale,n\, lO .PotlatchGrid Sys~m coordinate,s Northing=214 U.093I1tl.Easting==2~7~,89, Thence South)ZO4?'09"East,342.06 feet almlgthl: CetlterJineo! theLgl9 !ransmis~ion line to'an~xist.il!gPOWer pole, said pole ~ing fW1her ideiltifiedas. "pole P l"on$aid Exhlbi! ~ Thence from saidpokNor:th 13O43;3S"E4st 1().3f~t alQI1g~.said ceJ1terline to \be,Washil)gI.onWater~ow~r sub~tation desqibed as saJci Parcel B; And including two downguysand ;mcho~ supportings3.id Pole PI, saiddownguys,md anchors being: funher identified. on~s~d Exhibit ~as ~GuyAncl1ot AT'and "QuyA,+1chor A8" Parcel "B~~is 3, feD~d substatipn site, as built, including the land enclosed by the foU()Wii1gpc:sc:riptj()n.aIldinc;~udingrigl:it of way strips for the exiSting Lolo #1 and North LewistontranSmiS$ionlW;".Said right oeWay strips,~tend.from s:3id "'\1~tati\)n sliJ:.lo. \he. southerly bank. of thc.Clear:warerEiver, as shown on53idEx1liblt" Parcell! isdescribedasIollows: DDGINHINO 41th,"nQI i1aw~:.t,\.Uluaurilil;;:)utr:'Li1Liul1 iLSi~ll~ :wlJictJ pviUl i.:i i1~q)U~cJi,~;:I~::; u(~un1ilng::;:214').'1S and: Easting==3 01 0.42,.. and. continuing aroundlhc;substa~on !cnce on the.fo llowm gcoUt'ses: " . Frornthe P9int oflx;ginning; South 12~55~06" Wes~ '109.3f~ Thence South 75O51'53"Eas~.257;7 feet; Thence Nor:th 72~:?3'lO"'East,33;8feet; Thenc;:e:N'O(tb6'! 003' 3$~:Eas~,:tf~t; Thenc;North 14O96'5T'Eas~64,fe~ ThencyJ\lorth 78006;01'" Wtst; 73.7Iect; Thence NorthlOo19'51';East,7.'l feettoapointontbeccnterlineof said Lola #I transmissiOn line corridor, saidp6int beingtlle origiilpoint of saidLolo #1 transmission line corridor, Thence continuing North 10019'5.1" Eas~28.4feet; 'l1leu~ North 1&"'2.?I'4O"WC$1.. &4.9 feet to a point QI1 thcc~terline of saidNOI:th Lew~st(m \nUJ~~onlinecorrt!lor, . $3ld point being the origin pOint of sa4!NorthJ-ewiston .lransmi~iOri line corridor, Thence continuing North 78~3' 40" West, .13.f~t tei the northwest ~()me~ of ,the SU\)~w.ti()t)and th~ point beginning. Including a: total of sixdownguY$and anchors slJpporUng poles located within said Parcel B said downguysand anchors pcirigfurth~ iqentifiedonsaidExhibit~GuYAnchorAl"Guy Anchor A2"Guy Anchor A3", "Guy Anchor A4", ~Guy Anchor AS", and "Guy AnchprA6" Parcel "C"is a nawral gas regulator site as built, including the land enclosed by the follomng descriptiol1: BEGJNNING at the northeast guard post 9f said regl,!\atorsite,said post having the coordinates ofNorthingF21435. a,ridEasting=2815.78; Thence SoIJ ihl 030' 00"~t, 12.5 feet; Thence South 88030'00" West, 405 feet; Thence North 1030'00" Wes~ 125 feet; TbcnreNorfu ~~030'OO"Easl, 4Q.5 feett() the point of ~gi1)1Ung. PC~0 O b tD :c " ' ", :11114':i.Or;;,: ,.;;", suc"I" , ~'.-.::..($' cr- f:;:" ~I~ .. ""'\.' ~,c.\C." ,r: ,. , 0;\;;1 ," ' ~~~!i* '~iI~::;= ~~:; ~i' ~~~ :---,,,,:: 1;1" i!g~t!!e ~~~e" :;!i~= ~. ';;; Exhibit J Description of Generation Facility Potlatch Corporation owns and operates four (4) Qualified Facilities at its Lewiston Idaho facility. For the purposes of this agreement all four (4) facilities are considered as one collective entity. 1. Unit Number One Description - QF83-144-000 (a) The unit number one turbine , General Electric serial number 83530, is a nine stage 3600 RPM, 600 PSIG steam turbine. (b) The unit number one generator, General .electric serial number 6784689, is nameplate rated at 12 500 kV A 2. Unit Number Two Description - QF83-~42-000 (a) The unit number two turbine, General Electric serial number 197741 , is a six stage, 3600 RPM , 600 PSIG steam turbine. (b) The unit number two generator, General Electric serial number 316X188, is nameplate rated at 11 188 kV A. 3. Unit Number Three Description - QF83-143-000 (a) The unit number three turbine, General Electric serial number 197836, is a twelve . stage, 3600 RPM 1250 PSIG steam turbine. (b) The unit number three generator, General Electric serial number 316X374, is nameplate rated at 41 600 kV A (gJ 30 PSIG H2. 4. Unit Number Four Description - QF92-67-000 (a) The unit number four turbine, ABB order number MB275226, is a 3600 RPM steam turbine. (b) The unit number four generator, ABB serial number HM300516 , is nameplate rated at 66 916 kV A. Exhibit K Dispute Resolution Procedures 1. Statements of Dispute. The Dispute Resolution provlSlons of this Agreement shall be invoked by either Party to resolve any Dispute arising under this Agreement. Within fourteen (14) calendar days of a Party s request that the arbitration process be commenced, each Party shall submit a statement in writing to the other Party, which statement shall set forth in reasonable detail the nature of the Dispute and the issues to be arbitrated; Selection of an Arbitrator. Within ten (10) calendar days following the submission of the statements described in Section 1 above, the Parties shall select an arbitrator familiar with and knowledgeable about the technical and regulatory requirements for generation interconnection.If the Parties cannot agree upon an arbitrator, or do not agree on a means of selecting an arbitrator that differs from that set forth herein, the Parties shall apply to the Idaho Public Utilities Commission , for the appointment of an arbitrator. Absent the express written consent of all Parties as to any particular individual , no person shall be ~ligible for selection as an arbitrator who is a past or present officer, member of the governing body, employee of, or consultant to any the Parties, or of an entity related to or affiliated with any of the Parties, or whose interests are otherwise affected by the matter to be arbitrated. Any individual designated as an arbitrator shall make known to the Parties any such disqualifying relationship, and a new arbitrator shall be designated in accordance with the provisions of this Section. Procedural Rules. The arbitrator shall determine discovery procedures compliance with intervention requirements, how evidence shall be taken, what written submittals may be made and other such procedural matters , taking into account the complexity of the issues involved, the extent to which factual matters are disputed and the extent to which the credibility of witnesses is relevant to a resolution of the dispute. Intervenors shall have the same procedural rights as parties to the dispute. Each party to the dispute shall produce all evidence determined by the arbitrator to be relevant to the issues presented. To the extent such evidence involves proprietary or confidential information, the arbitrator shall issue an appropriate protective order that shall be complied with by all parties to the dispute. The arbitrator may elect to resolve the arbitration matter solely on the basis of written evidence and arguments. Intervention. The arbitrator shall admit as intervenors in the Dispute Resolution process any party that requests intervention and demonstrates to the arbitrator good cause for intervention. Absent the agreement to the contrary of all parties, no party shall be permitted to intervene unless, as a condition of its intervention, it agrees to be bound by the provisions of this Exhibit K in regard to the arbitration, including the provisions related to deference on appeal to the FERC or state regulatory commission set forth in Section 8. Evidence. The arbitrator shall take evidence submitted by the disputing parties in accordance with procedures established by the arbitrator and may request additional information, including the opinion of recognized technical bodies. All disputing parties shall be afforded a reasonable opportunity to rebut any such additional information. Other affected entities may request in writing that the arbitrator consider additional information, and the arbitrator may consider such additional information subject to a right of the disputing parties to have a reasonable opportunity to rebut such additional information. Substantive Standards and Decision. As soon as practicable, but in no event later than one hundred fifteen (115) calendar days after his or her selection as arbitrator, the arbitrator shall render a written decision and reasons therefor. In reaching his or her decision, the arbitrator shall consider the intent of this Agreement; other applicable agreements , laws or regulations; or applicable technical standards and criteria not inconsistent with this Agreement. A written decision, including specific findings of fact, explaining the basis for the award shall be provided by the arbitrator with the written notice to the disputing parties. Awards shall be based only on the evidence on the record before the arbitrators. No award that is not appealed shall be deemed to be precedential in any other arbitration related to a different dispute.7. Compliance and Costs. Compliance with the Arbitrators' Award. Immediately upon the decision by the arbitrators, except during the period of appeal as provided for in Section , the disputing parties shall commence to take , and thereafter diligently prosecute to completion, whatever action is required to comply with the selected award to the extent the selected award does not require regulatory action. To the extent the award requires approval or regulatory action by a local , tribal, state, federal or provincial body of competent jurisdiction; FERC review of an award involving a federal power marketing agency; or a FERC filing by a transmission provider subject to Sections 205 or 206 of the Federal Power Act, 16 USC ~~824d and 824e; the affected disputing party shall promptly submit and support that portion of the award with the appropriate authority except as provided in Section 8. Any and all costs associated with the arbitration (but not including the disputing parties ' costs associated with attorney and witness fees) shall be borne by the disputing party or parties whose proposed award was not selected, unless the disputing parties agree to an alternate method of allocating costs , or unless the arbitrator determines it would be appropriate to allocate all or a portion of such costs to one or more intervenors. Effect of A ward. Except for it not being precedential, an award that is not appealed shall be deemed to have the same force and effect as an order entered by the appropriate regulatory agency.8. Grounds for Appeal. Within thirty (30) calendar days of the issuance of any arbitration award, any party to an arbitration may apply to the FERC or to a state regulatory commission to hear an appeal of such award with respect to matters to which a regulatory agency has jurisdiction, but only upon the grounds that the award is contrary to or beyond the scope of this Agreement or is unjust, unreasonable, unduly discriminatory or preferential or otherwise inconsistent with then applicable standards or policies or applicable law. Any appeal shall be based solely upon the record assembled by the arbitrator; provided however, that any order by an arbitrator excluding material from the arbitration record or any ruling that is alleged to violate due process may be explicitly appealed by a party as a part of an appeal under this Section 8. Parties to arbitrations agree that (i) substantial deference shall be afforded to the factual findings of the arbitrator; (ii) the portion , if any, of the award relating to issues not of first impression (i., matters previously decided by the FERC, a state regulatory commission, or a court of competent jurisdiction in cases involving comparable facts and circumstances) should be afforded appropriate deference; and (iii) the portion, if any, of the award relating to issues of first impression should be afforded no deference. Implementation of the award shall be stayed pending an appeal unless and until, at the request of a disputing party, an order shortening or extending the stay.9. No Expansion of Factual Record. No party to an arbitration shall seek to expand the factual record beyond that assembled by the arbitrator, except that any party to an arbitration may submit such additional evidence or argument as may be needed to respond to new evidence or arguments raised by intervenors who were not parties to the arbitration. 10.Judicial Enforcement. Subject to the right of any party to appeal , and exhaustion of remedies , any party shall be entitled to seek enforcement of the award in any court of competent jurisdiction. Exhibit L Insurance ReQuirements ACORDTM " DATE(MM/DDIYYHi04/29/03 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE PRODUCER Aon Risk Services, Inc. of Oregon 1211 S.W, 5th Avenue Suite 600 Portland OR 97204-3799 PHONE. (503) 224-9700 INSURED Potlatch Corporation Attn: John BellO, Box 1016 Lewiston ID 835010000 USA FAX - (503) 295-0923 COMPANY Continental Casualty Company COMPANY Transcontinental Insurance Co COMPANY American Alternative Ins Corp COMPANY w1~'Q&~M:GES:~ii~~~l~~~~1f.i~~l('&i~~~i(l~rJ~..~fi~~r~~~~~J~~~~~$M~I;~~~~~!~~~iif~iIK~li~~~~?;i$JfjJ~~i&.~~~~1.iftfi\~;"~~~~~~~~1\'Jr~llli~7$1~~'t~~tr~m(~!f,;!~~~i~~~~ THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICAiED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR TYPE OF INSURANCE POLlCY NUM1IER POLICY EFFECTIVE POLICY EXPlRATiON DATE (MMfDDNY) DATE (MMIDDNY)LIJ\UTS GENERAL LIABILITY 04/01/03 04/01/04 GENERAL AGGREGATE PRODUCTS - CDMP/OP AGG M249216516 Commercial General LiabilityCOMMERCIAL GENERAL LIABILITY ;~m ClAIMS MADE OCCUR OWNER'S & CONTRACTOR'S PROT FIRE DAMAGE(Anv one firel 000 000 000 000 000 000 000 000 000 000 000 PERSONAL & ADV INJURY EACH OCCURRENCE MED EXP (Anv one person) AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT ALL OWNED AUTOS SCHEOULED AUTOS HIRED AUTOS BODILY INJURY ( Per person) NON-OWNED AUTOS BODILY INJURY (Per accident) PROPERTY DAMAGE GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT OTHER TI-!AN AUTO ONL Y: EACH ACCIDENT AGGREGAT EXCESS LIABILITY UMBRELlA FORM OTHER THAN UMBRELlA FORM 01A2UMOOO052300 COMMERCIAL UMBRELLA COVERAG 04/01/03 04/01/04 EACH OCCURRENCE AGGREGATE 000 000 000 000 WORKER'S COMPENSATION AND EMPLOYERS' LIABILITY THE PROPRIETOR! PARTNERS/EXECUTIVE X INCL OFFICERS ARE: EXCL WC249216731 WORKERS COMPENSATION 04/01/03 04/01/04 EL DISEASE-POLICY LIMIT EL DISEASE-EA EMPLOYEE DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS Avista Corp. is included as Additional Insured under the General Liability Policy but only to the extent covered by the insurance policy, Waiver of Subrogation applies. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE Avista Corp. Attn: Warren Clark Box 3727 Spokane, WA 99220-3727 USA EXPIRATION DATE THEREOF, THE iSSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BUT FAILURE TO MAIL SUCH NOTICE SHALL iMPOSE NO OBLIGATiON OR LIABILITY OF ANY KIND UPON THE COMPANY. ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ""'- -..-/ ~ , rc;- Certificate No: L ?. 570005979040 Holder Identifier: Exhibit M Interconnection Application Exhibit M is applicable to a new facility that is being interconnected to A vista s electrical system for the first time. Since the Generating Company is an existing facility that has been interconnected to A vista s electrical system for an extended period of time (in excess of ten (10) years) it has been determined that an Interconnection Application is not required.