20140821Amended Petition.pdf

r
Ms. Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472W. Washington
Boise, ID 83702
Dear Ms. Jewell:
fqf;fiilvi: [j
20ltAUS2l PH h: l0
IUAF{il i:Ll-.'..i'.,
UT I LITI [S t0fl 1,,1 iii$ I {iitlt!ll.r.{'
Gregory M. Adams
Tel: 2O8-938-22.36 Fex: 2O8-938-79O4
[e-mail]
P.O. Box 7218 Boise, lD 83707 - 515 N.27th St. Boise, lD 83702
August 21,2014
ATTORNEYS AT LAW
Avu- E-/4-n
Please find enclosed for filing an original and seven copies of the Amended Joint Petition of
Avista Corporation ("Avista") and Kootenai Electric Cooperative, Inc. ("KEC") requesting
approval of (i) the Power Purchase Agreement between KEC and Avista (o'Agreement") with a
requested effective date of August 15, 2014, and (ii) the First Amendment to the Agreement with
a requested effective date of August 21, 2014. Please let me know if you have any questions
regarding this filing.
Sincerely,
k0L-trGregory M. Adams
Attomey for Kootenai Electric Cooperative, Inc.
enclosure
For Avista Corporation
Michael G. Andrea (ISB No. 8308)
Senior Counsel
Avista Corporation
1411 East Mission Ave., MSC-23
Spokane, WA99202
Phone: [phone]
Facsimile: [phone]
For Kootenai Electric Cooperative, Inc.
Gregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N. 27s St.
Boise, ID 83702
Phone: [phone]
Fa,x: [phone]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
RECf,l1,/i; ii
?0lrr AUE 2l PH h: l0
IDAI"iU i::tJi.l ';uT I LIT I E S C 0i,1 hi i :i s li,} l,l
IN THE MATTER OF THE JOINT PETITION )
oF AVISTA CORPORATION AND )
KOOTENAI ELECTRIC COOPERATIVE, )
rNC. FOR APPROVAL OF POWER )
PURCHASE AND SALE AGREEMENT )
)
)
cAsE NO. AVU-E-14-09
AMENDED JOINT PETITION OF
AVISTA CORPORATION AND
KOOTENAI ELECTRIC
COOPERATIVE, INC.
Avista Corporation ("Avista") and Kootenai Electric Cooperative, Inc. ("KEC")
(collectively, the "Parties") hereby file this Amended Joint Petition' *ith the Idaho
Public Utilities Commission ("Commission") for an order (i) approving the Power
Purchase Agreement between KEC and Avista ("Agreement") with a requested effective
date of August 15, 2014, and (ii) approving the First Amendment to the Agreement with
a requested effective date of August2l,2014. The Parties filed their initial Joint
Petition for approval of the Agreement on August 15,2014, but this Amended Joint
Petition is necessary to include a request for approval of the First Amendment to the
t See IDAPA 3 I .01 .01 .066.
Page - I AMENDED JOINT PETITION OF AVISTA CORPORATION AND
KOOTENAI ELECTRIC COOPERATIVE, INC.
Agreement executed on August 21,2014. The Agreement and the First Amendment to
the Agreement are attached hereto as Attachment A.
l. Names and Addresses of Petitioners
Avista Corporation
l4l I East Mission Avenue
Spokane, WA99202
Kootenai Electric Cooperative, Inc.
2451 W. Dakota Avenue
Hayden, Idaho 83835 -0278
Nature of Businesses
Avista is a corporation created and organized under the laws of the State of
Washington with its principal office in Spokane, Washington. Avista is an investor-
owned utility engaged in, among other things, the business of generating, transmitting,
and distributing electric power to wholesale and retail customers in Idaho and
Washington. Avista also provides natural gas service to custorners in Idaho, Washington,
and Oregon. As such, Avista's rates, charges, services and practices are regulated, in
part, by this Commission.
KEC is electric cooperative with its headquarters in Hayden, Idaho, that will own
and operate a landfill gas electric power generating facility located at the Kootenai County
Solid Waste Facility near Bellgrove, Idaho ("Facility"). The Facility is capable of
generating up to approximately 3.2 megawatts of energy. The Facility is a Qualifying
Facility pursuant to the Public Utility Regulatory Policies of Act of 1978 ("PURPA").
3. Names of Representatives
All communications, pleadings, and orders with respect to this proceeding should
be directed to:
Page - 2 AMENDED JOINT PETITION OF AVISTA CORPORATION AND
KOOTENAI ELECTRIC COOPERATIVE, INC.
For Avista Corporation:
Steve Silkworth
Manager, Wholesale Marketing and
Contracts
Avista Corporation
1411 E. Mission Ave., MSC-7
Spokane, WA99202
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
For Kootenai Electric Cooperative, Inc.:
Doug Elliott
General Manager
2451 W. Dakota Avenue
Hayden, Id 83835-0278
Phone: [phone]
Fax: [phone]
[e-mail]
Michael G. Andrea
Senior Counsel
Avista Corporation
1411 E. Mission Ave., MSC-23
Spokane, WA99202
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Greg Adams
Richardson Adams, PLLC
515 N. 27ft St.
Boise, lD 83702
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
4. Description of Agreement
KEC currently sells the output of the Facility to Idaho Power Company ("IPC")
pursuant to IPC's Oregon PURPA Standard Energy Sales Agreement ("Oregon PPA").
KEC has claimed a force majeure event due to its inability to deliver the output of the
facility to IPC due to a transmission line outage caused by a wildfire. IPC has accepted
KEC's claim of force majeure and, on August 14,2014, consented to KEC selling the
output to Avista for the period August l5 through August 24,2014 (see Exhibit H to the
attached Agreement).
The Agreement is a power purchase agreement under which KEC will generate
and deliver the Net Output of its Facility to Avista's electric system on an as-available
basis, and contained an initial Term from August 15,2014 through August 24,2014. For
the Term of the Agreement, Avista will purchase the Net Output of the Facility that is
Page - 3 AMENDED JOINT PETITION OF AVISTA CORPORATION AND
KOOTENAI ELECTRIC COOPERATIVE, INC.
delivered to the Point of Delivery. Avista will purchase such Net Output (up to a
maximum of 10 aMW) pursuant to Schedule 62 of its Idaho tariff at the lesser of (i) 85
percent (85%) of the Powerdex hourly Mid-Columbia index, or (ii) the applicable rate based
upon the On-Peak or Off-Peak Avoided Cost Rates For Non-Fueled Projects Smaller Than
Ten Average Megawatts - Non-Levelized in effect on the Effective Date ("Avoided Cost
Rates").
5.The First Amendment to the Agreement
After execution of the Agreement on August 15,2014, KEC became aware of an
updated transmission line outage notice that will result in extended curtailment of KEC's
ability to deliver and sell to tPC beyond August 24,2014. IPC consented to KEC selling
the output to Avista for the period of August l5 through August 31,2014 (see Exhibit A
to the First Amendment). Avista and KEC therefore executed the First Amendment to
the Agreement on August 21,2014, which amends the Recitals and Section 4.1 to extend
the term of the Agreement through August 31,2014. The First Amendment to the
Agreement does not change any other terms of the Agreement.
6. Joint Request for Approval
Avista and KEC jointly request that the Commission issue an order (i) accepting
the Agreement, without change or condition, with an effective date of August 15, 2014,
(ii) accepting the First Amendment to the Agreement, without change or condition, with
an effective date of August 2l ,2014, and (iii) declaring that all payments made by Avista
for purchases of energy under the Agreement be allowed as prudently incurred expenses
for ratemaking purposes.
Page - 4 AMENDED JOINT PETITION OF AVISTA CORPORATION AND
KOOTENAI ELECTRIC COOPERATIVE, INC.
Respecttully submitted this {O^rof August, 2014.
AVISTA CORPORATION
%rubPwwt
Michael G. Andrea
Senior Counsel
Kootenai Electric Cooperative, Inc.
Page - 5 AMENDED JOINT PETITION OF AVISTA CORPORATION AND
KOOTENAI ELECTRIC COOPERATIVE, INC.
ATTACHMENT A
TO AMENDED JOINT PETITION
Power Purchase Agreement Between
KEC and Avista
FOWER. PURCHASE AGREEIIENT
BETWEEN
KOOTENAI ELECTRIC OOOTEBATIIIE, NC.
AIIID
AVISTA CORBORATION
1. DEFINITIONS
2. WARRANTIES
3. CONDITIONS PRIORTO COMMERCIALOPEMTION
4. TERM OF AGREEMEI{T AND COMMERCI,AL OPBRATION DATE
5. NETOUTPUTAMOUNT$
6. SCEBDUUNG
7, PURCHASE PRICBSAND PAYMENT
8. INSUMNCE
9. CURTAITMENT,INTERRUPTION OR REDUCTION OF DBIIVBRY
10. OPERA-TIoN
I I. INIERCONNECTION AT.ID TRA}.ISMTSSION
12. FORGEMAJEURE
13. INDBMNITY
T4. ASSIGNMENT
15. NO UNSPECIFIED THIRD PARTY EBNEFICIARIES
16. DEFAULTANDTERMINATION
17. DISPT'TE REIOLUTION
18. RBLEASEBYSBLLER
19. GOVBRNMENTALAUTHORITY
20. SEVERAL OBTIGATIONS
-4.
-7"
-8-
-9-
-9-
-10-
-10 -
- 11-
-L2-
- 13.
-t4 -
-14-
-15-
-16-
- t6-
- 16.
-17 -
-L7 -
- 18-
-18-
-2-
21. IMPLBMBNTATION
22. NON-WAIVER
23. AMENDMENT
2{. CHOICB OF IAWSANDVBNUE
25. HBADINGS
26. SEVERABILNY
27. COI'NTERPARTS
28. TAXES
29. NOnCES
30. SURVIVAL
31. EhITIREAOREEMEI{T
EXHIBIT A
BXHIBIT B
HffiIBITC
EXHIBTTD
EXHTBIT B
EXHIBITF
E'ffiIBIT C
EXHIBIT H
-18.
- 18.
-18-
- 18.
-19-
- t9-
-t9-
- t9.
-t9-
-19-
-20-
-3-
NOWER PURCSASE AGREEITEI{T
Thts Agreemcnt is modc by and betrryeen Avista Cgrpomtion, a Vi/ashingtorl co.r-por-ation
(,{vista'), and Keotonai Ehctrio Cooponilve, Inc. an ldatro corpordion ("Sellcrb). Avi*a and
Sollcr are mmelimoc refcnd to irdividudly as a'Pa*f' and cojlcctlvcly as the 'iPartias."
NEflTAI.s
\trr.IEREA.S, Sellcr oums, operatw and msbtdns a 3.2 MtV armephtc capaoity
fExpeated Crpcgity') eloptic powcr Ban€rating fhcility ("FacilE) d fire lftotensfi Couqty
Solid Wasrc facility ncar Bcflgoro, Iddho, as norc futiy Aoccrtboa in Exhibit C; and
WHEREAS, Sell* will opcratc the Facility as a Quilifying Faoilittt qs dcfinGd by tttc
Public Utiltay REgulatory Policies Act of l97S flPURPA'); ard
IVI{FIEAS, Scller sollr tho output of thc Fadlity b ldatro Pourcr Conrpony pururaut to a
powerpurchasa at&omont ('IFC PPA') filad wllh trc OfegonP$ligUtllities Comnirsion, b{t
drp m o<tonuting oinumgarrces ir oureirtty unable to dcl'iw:r tlrc output ofthe facillty to ldaho
Poupr Conpsny undarthat IPC PfA and
WIIEREAS, SEllor and IPC have q$E€d to suspend the IPC PPA, ard IFC has consented
to Seller scllirg thS Net OWur of ilre Facillty to Avista, thoWh AugWt 24, 2014, and Avish
has agrcod to purchase thc Nct O$prd gonerated by the Facillty on a noh-firm as awilable bosis
during through Au8u$t 24, 2014 (such suryenpion and co.nscnt is memodalized in Exblbil H);
and
WHEREAS, Sellsr will dellvor and sell, and Avista will pu.rphqse. Net OuSS gpnqated
by the Fadlit-y m an non-firm as avrilablc basis subject tO the tcrms of tris Agreemenfi ad
WHEREAS, Seller and Avista aru parties to the lntortonndion and Operatlng
Agrcerncnt dated Novcmber 15,201I (Avista ConE.acr No, AV-TRI l-0205-l) ('lntenconnoction
and Operatiag Agreemcnt'); srd
WHEREAS, Sollo and Avisa arc parti* to the Fasilitics for Integnjion md Oporatipn
of Fighting Croek Fapiliry l*tter.A,gr-eernent datcd Deoembor 5, 201I (incorpordd as Exhlbit G)
wtrioh ee$ for{r the segpe of wp*, and re$ondbilitiss of thc Psrties rcgqdiry ttp conghrction
ard irutallatlon of thc Partier' rsrpoctirac &citities fbr the intcgration arii opcfution of Sdler's
Facility.
NOW, TIIEREFORB in oqsldoratiur ofthe mrrtual agrcements st forth trercirL the
Parties agrac as follows.
l. IlErrrYfTIorIE
Exeept as otherwise dofired in ttris Agreement, whmermused in this Agreenrent and
cxhibls horcto, thc following ternrs shali havs the following mornings:
-4-
l.l t'AgH$f,'tnpsnp this Porrcr P$dusc AgrccmeRt, includingall exhihts, and
rny writtcn arnendments.
l2 "@ &allhavplhe mornfugprovided in$ection lI.2
of this Agrcernent ud ia furthcr clilificd h Bdribit C of&ia fuieement.
13 "Agg[hf$gp|St" means Sooe sGrviss th* aro nGccssary to sqryoil the
transmission ofcopnolty ad emryy ftom cerourpc.s to loada whib maintrinftry rcliable oporadon
ofthc eloctrical sy$qns in accmdsiloe wilhP'rudent Utilrty P.ndrces and $ry oristir-rg 6i fu1qre
wEcc
l.{ ',Ayglhd.Qg$81&[" duill have tho meaning providod in Section 7,3 of this
Agroement.
1.5 trrlsfltt mcans arqlago mqgnwat(s). An arrerage megpwatt is ealculatod by
div!{fuB lh€ tdal gegxqtiorr ln }{Wh ovor a gi'rod p$iod of timc (0,g,, a ealenrdr monthJ by the
nunbea of horrc in fiat pcriod of tirne.
1.6 @ mcaos an clcouical slrutem or syste -nrs boundd by
imcrconrrcction mderitg and tclomctry, capablc of controlling gencration to mairtain its
intoclrangc schodule tryiilr dher Bdancing Authcity Arcas end omtibuting to fr.equarcy
rcgulation of the intmnectbn A Balancing Authuity Arca mrst bc certified by the
ap,plicabtc reliabiliry oouncil ($ch $ WECC or othcr reliebtlity courrcil).
l.T "Egg-Eggry,! mcans all monfiy N4 Oilput e!rcept Na Output tftat is Brc€ss
Enorgy.
1.8 *DldBLDry" meqns ovory day qflpr fhm a $atuday or Srrnday or a natiolral
holiday. National holidays shnll bo those holidays obscrvcd NBRC.
1.9 "Gggg$lqg" melns ttrc ldaho hrblic Uti[ries Cornmission, or its succe6ryr.
I.10 "&ffi&-Dtb" shall ha.vs the rueantng providcd in Soe,tion 4.1 of tlus
Agecment.
1.ll *E$cri.Epgry" shall have the rneaoiqg providod in Section ?.4 of this
Agrconrent.
l.U "!Elpg]g|-Spgg|[" chall havc the meaniag providod in 0re rcciuls of this
Agrcemcnt.
1.13 "gng$!S" meansthe electrio €ncryy gonsrrting facilitid, inoludingall oquipnrcnt
ard structurEs necessry to gfncrato and supply dectrlc encrgy, trore prtioularly dewribed *
ExhibitC.
-5-
l.l4 "[gi![S.Qg[Uf'mcrns ttre copability andelecftic osergy gmr*edbythe
Faclltty exprressod in kllou,att{ours.
1,15 "W moans tlrcolechic oneqy gpnerffed and uscd by the
Fapility durtrU its o,ptmtip.n to opcqte equipmcnt lhal ls audliaryto primarygeireration
equipment inctding but not limitod to, purqpirp, gpntrator Gxchtetioru oooling or other
o,pentionr rclatad o ttc prodrrction of otcorric encrgy hy thc Faollity.
l.16 "[gry.!&[Sf{ Satt baw the rneoning psovidod in Soction 12 ofthis
AgrocmcnL
l.l7 '3gIBg,' meqne the Fedcral Enorgy Roguldory Cqmmission, or its suoces$or.
l.l8 "Irffiel ftqaelo Dcttrmipftrqnl shall have thc meming provided tn Section
3.4 ofthisAgreeurent
1,19
qSrcornontbotu,Bcrt and Avishor
rBeatlq, as EppllcablQ, &s
[Bhtlty tlrat is providing
intproormscrion rervicc ufijefi govemg how the N.d qrtput ip delivcred to Avigta's or tts
Tranrmitting Entity's clectrical system at the polnt of intetcorurostion durilg tho Torm of thig
Agrccorent Bnd ttrgt is rttaplrsd lrercto as Exhibit F.
Ln '14gE" tncilrs the loss of electical emgy expressed in kilounts hours (kwh),
inoludfug ffrc M@r loprtion Adjusnnent Faotor ("MLAF') as @cribgd in ecotion 7,2,
occrrning as a rcsuh of dre tansforsradon and hansmltsion of cnergy botween the point of
intcrconnection on Scltar'o ay$ern and the Point of Dcli.vcry.
1,21 *tr[$" mca.ns rrogawatt. One thousaod kilonatts quals one mogawatt.
l,t r'![XUE'r meaul megawatt-hour. One thouand kilowatt-hours eqrnls one
rrcgawatt-hour.
1.2.3 "MrlkL&fru-Ede" ment thc Marta Rate as dofinod in Sohedule 62.
1,24 "W means the maximutn genetating copacity of the
Facility, as detqnrlnd by the mirnufactwgr, and bxprerspd in kilowatts (kW).
1,25 :NEBC" meam theNorth Americarr Eletric Rsliability Corporation or its
$EOCXNOr.
116 "!!glpU@ft moans tho capability and eleclric cnorgy genaatcd by ffre FaoiUty,
less Facility Ssvice Powor and [o$es, that is dolivcred to ths Point of Delivery, or d the
Aftornstc Point of Delivory if qpplieable under Scation I1.2, exprc.ssed in kilowut.hous. Net
Output is ftrrthsdesctibed in Sootion 7.2.
1.27 "9${g!B'mqns allhours other than On-Feak hours.
-6-
tJ8 t9&B!lkD means 0re hours snding 0700 throtrgh 2200 Paoific Prerailirrg timo,
Monday ihruugh Sumihy, inoludiry ndionll holidays.
|,il, ".8gEt tf" naans Ib lopdiott as spooificd io E ddbit C of 0ris
AgrEcEeot, whcre th6 decfiic €nergy po&rc{ by tho Fadlity rs deliverd to Avjrtr's eloctrical
E6lcm.
nerns thc practices, meffodr, and aats e.I"rtnody
cneiqoqlng sqd opcr.'doq! ty a rtErif,cmt porthp of the
oleotio poryer gwrgion and tranrmis$ion induscJ, ln dD oxehise of rydsopp$o judguent in
tlp light of tlro faets tnovtrr dr th'd slrpuld hrve hoea knovnr fr the timc a dccision was mcdo, ttt e U*[of tho iaets tnovtrr dr th'd slrpuld hrve hperr krovnr m the timp .a deoision was mcdo, that
wouldhavcboonexpeocd to aocomplislrttrc derird |.osultinIn|rtricroortcls&ntwilh law
regulrtiog rglhbillty, safoty, environmentrl prcbaimrh economy, od ex,podition.
l.s0
ardordnrily
l3l '9nd$&g.EtC&l or'p$ mEam a Eqlontiry frcittty urhich rucets thc
roqwrerrrerts far rcF- Satus under PUBPA ind pryt 29l of FBRC'c Rogulations, 18 C.F.R. Parl
29, and which lus obtdned certification ofiB QF ihtus.
l,r2 iqschcduls 62'msory $chsdule 62 of Avista's ldaho trriff, as may be amended
fiom time to timo.
l.$ "Ttrrl" shall harrc the meaning provided in Section 4,! ofthis AgcemGnt.
13t,'Igq4gs@.E[SE' msans any ortity or entiries includifig $pllcr ttrat provide
trmsmission and/or itrcraorurssisn pervice to dolivcrelpotric cnersr from the Fapility to
Avisti:s slGctri"al cygtcm at ths Pojnt of Detirryry or at the Ntemgtc Polnt of Dslivery if
ryticable under Scction I1.2. For prrypose of thls egecnle$ So[cr is fie Tnnsmttting htity.
f .35 *!f,Elgg" meanE thc West€m Electricity Coordinatirg Council or itg suqceqsqr.
WARRANTIES
2,1 I*o Mlrtr+* F,v.Avbr* AvigE filakes rc r,v.urantioq cxp,rpsscd or inplie(
regqrding any aspsct of $olter'a dcslgu rpecifioations, equipuront ot faOilltlos, imMin& but not
llmitod to, sa&ty, drr{hility, relirbility, sburggll, capqaity, adequacy ercconomh feadbiHtn and
ary rwiow, aoccp&rnce or fallut to rwierr Soller's &sjgn, snecifiGstionS, equiprnont or Facility
shlll npt bs nn onilqqF$neil s6 6 po.nfim1ation by Aviua. Avtista assunles no rrrporulbility or
obligation with rogrud to any NERC and/or WECC rglisbility etandard aryociated witb ttre
pqcflity or ths delivery of ohcrrio cnclBy fmm the Faoillty to trc Point of Ddtrrcry or at tho
Akenratc Point of Dclivery if applicable under Secrion t 1.2.
Ll $dlctr lYarrrnty. Soller warrants and roprescnts hat (a) Sellcr has
invesdgatod and tldormlncd thrt it ir cepablo of performin$ and will pqrform thc obligations
hercunder ad has rrot rcli€d upon the advior, expaience or orpertiseof A,vista in conrrection
with the Eansaotions contemplatod by this Agreomen$ 0) all ptofessionals ard experts
-7-
including; but not limited to, aoginssr attorngrs oraocountm\ tha Sellcr m4y harrp oonsulted
or ralied on in unilertaking tte transaptlons mntcmpletd by tlris fuiperupnt hrve b.oclt sols.ty
thosc of Seller; (c) Scllcr will comfly with all qpplicahle hurs and rogularions ard glull obtrin
ard.eot-Tp-ly wlth flplhable,liopnsos, pgnits rnd ryprowb ln ttre rtssigo, gg|ntnrction, opergion
and maint&nncc ofthe Faoitity; end (d) ttrc Focilig l* ad dt[ilg tre Tffrn ofthtq Agrpeqrent
witl rcmai$ aQuoli&mg Frciiityql that terrur ic uscd in tt Cf.n part Zl2. Sdterts fdlure to
ryinfisis ausli$ing f€0"ilily{$atrF wltt be a rn*etial ht-moh sf thir A$cBscpt Ayisf rrcstws
ffrc riglil b revtew the Bdlc's QuaHflng Fmility shtus and associ*od support and ooopliance
docun€nio at lnftmc 4rIU {E Torm of thif Agrcwnent.
Sels fnfu wqffia[h foi Sollcr's lioauoq pernrie md mmvnls u rd Mr in Soction
3.l a&orrc arc lealtv trnil valtdtv lssled, pc hcld in ftc lagrg of tfr &llo$ ryrd Sqller ic in
subdatrtial oomplianco wifi rrid pomrits"
Selter furdrq wanars and rcpfoscnts thd Seller and ldaho Powcr Cornpony have agreod
to ruopond ttra IPC PPA an{ thd lddto Fowu Cqm.paCIy has qonqtod to $ollcr rcUing tho Nct
Output to Avlsta as set forth inthls Agrcemont.
3. CoNprTrptrsPRI,()RTOjP$IrIVEBYo,r,NEJ.gtryu,T
3.1 Liqronro!.PGrmlbrnd Anq|trnk. PriortottredelivcryofanyNotOryilb
Avisra, Scller ohi[ $$mfit o Avista writtcn poof0rat atl limes,.ps-nritg or apprornls nccossry
for $cllor'g- operEtioru hrye bcon obtainod fiom rylicable fbderal ddc, fibal ot lqcd Erdrqddes,
ircluding,btfinotlimit€dto,ovidcnoeofcorrylianoewithSubparta,lSC-F,R i}g}2fil,vtbll,
satc urd local h$ing$ liccnses, pcnnif, casqns, lzues md 0ll r--oquired
ryprovals by tho Commissitn; Avi*a and Sellet shdl co-ap€r$o in paltioning the Commission
for any rcgdrcd gpprovals.
t.Z Iidcnqdeut,FnCncflflrg,Cqft[icalbns; Priq to tho delivery of eny Net Output
to Avistra Seller shall srbmtt to Avisa Oent Engirr€cirg Certincadons for (a)
and &) Opersio.ne and Maintcrranpe Polic!, fuConshrcfion Adequney br a Quqllfiing Faoiltty, and (b) Op$Sq,ngad Maintcnanoe Polfory for a
QrBli&fuBfacility as dosptiH tn corrmission ffier No. 2l6q0 EEoh lrdEpondcnt Engitrocdr.E
Cdficatlqp $all be sknd bv a ftceorod sofossirnal oncinpq in mod Etadinc qrbmited in aCor,tificatlon Sall be nignd W a liccnssO pofcssicral ongincor in gopd *ading submiucd in a
fom scqrytablEto Avista aod witl acknmrtledgothat &c liccnscd pofessiaal egircerrGod€rjry
the ofldon rniter$autc hfrt Aviito is rclying on said opinton. AvhH's acccptanoc of such'fonns
stun rpt be tllreaqqmUy wi$ilrol{"
$eller shall degign and opcrEG 0rc Facility in a
the Nct Ortput doee nst excopd 10 rMW in
3,3
manncr suoh t'h8t under normal
any oalcndar mo.nth. Prior to dolirrcry of any Net Outpug Sellor shall submit to Avish the
marfium horuty gonGrstionoapf,b.ility ofthe Facilily flntliol Cspooity Deter_mingfion), Such
lnithlCryaoity lleterminatloo shall bodotcrnrined by uspof thpNerngplate Cppgchy!"a1ing and
drall be doqmented fld submitled to Avista by Sells. $uolr docurrrentation shall inolude ttre
infotmation list€d in Exhiblt E" Upon rocolpt of Seller's Initial Capaalty Detorminatior\ Avista
-8-
will Eview suph dstqmination wlthin a rcasonoblo time eq4 if rccaptfrble lq Avislo, Avieta ahall
issuc to Sc[or its writh apprcval of the Initid Clpaeity Detd]minrtion. If tho Inidal qnpqclty
&tqr.in*ipo iltbtrtuod by Sellet ig trot oecoptrble t0 A.vlsh, Avista will ptamsty mtify Seller
that Avirta wlll not Ecccp its Ldtial ity &lsrminilta& [ ruch gysi, eyi$a Srn[ qrgrgo,
at $oller's sole.opglre, an irdcpoqftentqusliffcd oosulhnt o daprmlnc thc Inttial Cnpqcity
Octqnrtrqion Dudng thc !E.rr of this Agrgtment, Sollgr slra[ not cqrsp thc pap{plty of i}rc
Facllily to bo qr;rtrr ttun thg Inidal &pacity Detcmrinatiotr W any mern$, inohdigrg by
addition, rygrde er rcphcfmcotof mI twbincs.
3.4 Isthooveffthd rtoFrcility is locatcd ouBidc of Aviets's
Balanciry Authorlry A$p, S
ttcoO-sSAry Arcillary Stt ioes.
lcrthdl be rcryondbleaiB sole prpem$forobmining qnyd aU
$ctlcrslull dmoumte tts compliancc wifi thb Swtion pdor o the
dcliwry of any Nct o$hut to Avista
35 @gg. hiortothoddiveryofarryNctorQuttoAvish, Sellerehall suhhitto
Aviste svidenco oicoif,iarre with Soaion S,.Insurenpa
3.6 N4orkXosourco DGtlgnrffon. At Avista'c rcqucst, Scllcr shall prcvlde to
Avista all daa rcquircd by Avlda to en&le ths Faciltqy b bc dosignatsd by AVista as a notumrk
rEsout'Go.
X Wrtf.tcn Acccforne. Prio: to tlrc dolircry ofany Nd0rtpil to Avi.it& Sdter shall
rqu€st md obtrin lhqr Avisa unifr$ mnfimslion tE all cqrditons to accepaw of clectic
otrerg;/ hrvs b€cn fulfflhd. Avisla shall usc rcasonabb oommercial cfforh to promptly provtdc
Selhr writt*r cmfinnatiorr thtt all oorditionq to qgoeptarre of elcCIig enerry havc bcen firlfilhd or
povidc noticc ilrst 6rdl mdtionshave notboen fi,lfttlud.
4. TEqMOTAGREEMENTANDCOMMBRCTALOFEMTTONpATE
{.1 This Agrosnent shsll be c,{festive orr thc drto last sig$ld below or srch othcr dab
set by Conmission order (thc "Eftcive Date") and shall continn until August 24, 2014
("Torrn').
42 The Parties a$!o that thb Agrocment wlll be oonstrued in accordrueo
-wi&SooJion 210 of PLJRP.A and other applicable laws rnd rcgulaions, Thir Agreemcnt sMl bccome
fmally offective upon thc Cornmissionls approval of all tsrms md provisions herein without
change or con{i6on nrd dochffion that all paymcnb to h madc to Scller hsrcundor shsll be
allorryod as pnrdartly incuned Exponscs for rarcmalcing purpo*rs.
5. (Rmorred)
-9-
,
II
I
6. SCHEIpUIING
6,1 Sellor will m*e rpespn&le pff,orts to aostapt Arim Real-Time Scbdder to
updtte Aviitt Real-fime Sohdula regffding arry rc,tredule ectiru-tps for gonention, ot@e
tirnoframcs/&r-dioq $d rctu$ b servioe ogimotes.
62 Emdl soaEptlnformaflop with rqgffd tosehedulirganiltolqhone oontaot
informatlon ufrh E$rd to golrordion chang"s, intenuptione orgutages are ryagiffcd in Erhiblt
A, Communietiorr ed Rqs-tirg.
7. PURcHA$EqBrcffiflAIrpPAyrrEr{,r
1,1 Bxocpt when .slihcr Psr-ty'e pgf-ormarra, is eficrrsd 0s providcd hor€in, for he
Tsnr of this Agroomonti So[ar qhall 0otiver all tlet Output ftom tlp Fanllity to Avis-tr at tbo
Point of Dolivqy, m at ihe Altemtc Point sfDslivtry ifapplicable rurder Section I1.2. For all
Nct Output doli /€r€d to AviSe at the Point of Deliwry, or gt tho f\lErnatc Point pf Ddlwry i.f
appticablc undsr Ssotion I t.2, Avista shall pay the applicablc rab specifiod in Sostiom 7.3 and
7.4 ofthisAgtwrent.
72 Nft Oirhqt Net Qutptrt shsl! be det€rildwd by measuring tho Facility Output
and ioducing thal mrounl by Facitity Sqvttc Poq,pr and the Mb-tcr Locaion A{iurt ,ment Factor
(*MLAF) which is tb prodrst of all applioable loss fac*ors for the disribution systrrn,
hansfomBtion and tnnrmision systeur betweon tlrc melg[ing point md the Point of Delivery.
Net Output shall be elculated ln occordoncc wtth the followirg formula:
Not Output = (Faoility Outptrt) - (Fncilitr $ervice PoryFl l MLAfMLAF= I -(DistritutionLinelomFaaorof0.0203)
+ (Da$Gr Transfbmer No Lold Loss of Q,0030)
+ (Dourer Transformer Lmd Loss of 0.001 0)
+ (tprnsmision UneLoesof 0,0005)JMLAF= I -0.0248
[{IAF = 0.9752
73 B,rrp Emrcv. Forall Bare Enorgy &liverodto Avisuat thc Point of Dolivory, or
at the Alternate Poirrt of Dslirery if npplicablo ruider Sgqiqn l 1.2, Avi$h Sall pay Sollm the
lcssr of (i) ttrc suntnt monlh's Martet Ener'gy Rlte or (ii) tr gpplicable rfie bqsd rpqrt thc
On-PaEt or Off.Fedk Avoitled Cost katcg For Non-Fueld Projects Srnallu Than Ten Awrage
Megawatts . Non"l*vellzcd in eftct on the Effcctioc Date ("Avoided Cost Rates*) rs speoified
in Exhibit D.
1.1 E+oerl Epc|lv. Excese Ensgy is Not Output, oxpcsgd in MWh, whldr Seller
dclivers to Avi*r * tlre Polnt of Dalivoty andor et the Alte*nate Point olDclivery if applicable
under Scction I 1.2 that excccds l0 aMW in a calcndar Month. Avista, at its sofc disorcnion, may
acolpt Excess EtFlBy, hrt Avistt will not pey for Eny E:rcers Enorgy. Wtmre Avlsta does not
elect to accerpt Exooss Energy, and Scller deliver.c suclr enugy afternotificatio-n by AvisU in
accodancs with Brhitit A, $sller oMl pay Avi$a liquld*od damagBs equat to $100 per MWh
of Excsss Energy delirrered to Avista. The Partics agree that the darnages that Avlsta would
-10-
incur due to Seller'c dolivery of Excecs Eruggt whcp Avisff docs not elest to acpap Excess
E rcrgy Vrould be.diffforlt or lrnpossiblc to Egdict wilh certairily ud the ftqutd4tod daqtrups
contonplateil by ffris ppovision are a frir ard rcqson&lo calculdiou qfs$h darnages and arc not
a penalty.
7.6 Povnftti b $Btler. Avi$a shall prlparp rnd subndt to Sqllcr monthly
stat€mo$ durine the TsmoftcegrE€mcrfr bared uponNotOrtputddivered b Avista dtring
tho proviolo month. Pqymoqts ourcd,by Ati$h Fha[ bo pdd oo later hsnthe lSrt dry ofth
tnonth ftUowing tho end of tho tnonthlll billfo6 pcrtod or firr dep ofror tlre,podpt of e unrrthly
shtomqf ulhickw ls lah(. If flre fiE drte ftlls on r aon$Einsgs Day, thcn thp payrn€ff shall
bo duo on the rpxt BuSiuosi Dly.
7S Prvmonb io AvLtr rnd Rid of $et Off. lf $ellor is obligatod to rnakc any
pa),mcm or refuid to A!/isE, Soller agrpes lfint Aviqa may sst offs:rroh paynrent or pfind
anotrtagainstaqycNrc[qrfrrurcpgruelt*dues,eltqtndnrErhAgrcorrcnt tfAvlstadoes
not dcct to Ect otr, or if no ourrcn! c .ure pr. . rfr is gwd by Avigtl, AvisF ghall snrbmft ao
inrroloe to Scllen for strch prymcnb. Scllor rhall pay Avish no htcr thm thc l5& dry of thc
morrth followirrgthc ond of themonfrlybillin8period or fve ftys aftortlre rcceipt of amonthly
statarrre$, w]rishovor is lrter, Ifths duc date falls on a rron-Bushqs Dan then tb poympn! shall
be du€ on thg rrext Brryinesi Day.
7,7 Intoryrt !nadditimtother-cmcdies sot forth in Section 16 ofdrisAgrccment,
any amounts owing after thc due ddo qpecifid in Soctions 7.5 rild 7.6 will be eubjqd to interest
inthe anount of one eod ole [alfperfcot (1.5%) pqr month" not to oxocpd the maximun rate
allowed by the krr, mulliplied byfte $!pid bahrce.
7t lYip,TrtErfq. Al! pryncnts Sa[ bc made by ACII or wire transer h
accordanse with fiutlrcr ggrsoment ofthe Partlm.
8. IN0UMNCE
8.1 lryqrnp Prior lo opgraring thc Facility, Soltq, at its onm cos! shall obtain and
malntain the followlng insurance in fgroc orti the tom of this Agreomont EIrd shall provide
certi&alos of all iruur-arrae polioios. All ,in+nance polioioe rcgrircd to fulfiU the Equircmcnts of
this Soction E shall tncldc langucgc Jcquirrng &ar any notiao of ctucsllqtion or notice of ctrange
in pohcy tcnrrs bc sml to Avish bV thp insurance crrior(s) rr l€ast sixty days prtor to any drstrge
or tcrmirntion of tho policies.
8.1.1 Gpor'rl lldtttv. Ssller shall crry o(mmcrcialgeneral liability
lnsuranco for bodily injury and property damme with fr mininruln limit eqrral to
$2,@,009 for crch opo![rc$oc. Tho deductlblo shall not exooed the Scller's financial
abtlity tro @rrer Olaims and {hll not bc gt€ctei thnn prewilug praslces for rimilar
opcrations in the sCIts of lddro,
t l,2 Pqperfv. Sellcr shall oarry rll-risk prop$ty insur"anoe for;ppair or
roplocement of thc Facility. The limit of property insumrcc shall be sufficicnt to rpstorc
-n-
opffations in ttrc went of reacombly forcgeasble lp$pe from ruluml, opcral[onal"
msclranical and hurnan'caned poils. The dcductiHc shall not rxceod ths Sellcr's
financhl ebility to ft$C thp coet of losqcs ud pbll not be $ater than prwailitrg
practiocs for simiiar operrtiona tn thc Stltc of ldaho.
t,!.3 ogt!ffv# lnsnlrnto. T .he futstlraopq Qovemgo ryqui&d by this Sectio.n 8
shall beobhined from m fuimrfirco oomfny roacdrably ecoptable to Avr'en ahd rhs[
irelde an grdorclrn€m naml$ Avi$r w .,irnOiitorrtinnreO ua hor pt}rcc u
applicrblo.
8.1.4 Notlco of L4lr or Lqrg-e oflnnrIlrrs bv Sollcr. Ifthe insururce
covoragotequhod by lhis Section 8 b lost or hpsfor any rcasorL Sellerwitl
iqrrsdiately noil& Avigta in uniling of stlch loq m lryqe. Sucfi noHce shcll edvl$e
Avlola of (i) thc reasqr for such losc or lqpse anil (ii) the qcpg $ollcr is hking to replace
or reilstatc gvqugp. Notioe pr-ovidod b.y rlre insrcr roquirpd lov Setio+ 8.t shell not
sdisfy the norice rcquitwicd ofthis $cotion rnd Selhr's frfiuro o provlde the Do{pc
rcqulrcd by this Sect.lon and/gr to ptrompdy replacc or rcinstate covcragc will mnSihrtc a
matcriil he0& of this Agr"cqrnont,
E2 For the Term ofthis egrocmonq $cller will
povide Avtsta wifh flro bliowtng:
8r.l lHurrnca. Upqn Aviste's rcquost, Sollgr stn[ pnovide Avtsta evidsnoo of
compliaoce with the povisions of Section 8.I . If Sdler faile to comply, zuch failure will
be a material breach and may only bc curod by So.ller pnnptly supplyirrg evifuc& that
ttrc rcquircd insurore oorrcrage has beem rophced or ruinsarcd,
83 l"*?nfq md Fsr,n&. Durirry the Tcrur of &iS Agraeqpnt, Scllcr slxll mqintain
cornpliancc wtth atl pqnis md licons!6 dosoribed in Seotitm 3.1 of thh furoctnont. In addition,
Seller will obtnin, ad mpply Avista wilh copiee oS my new or addilionil permits or liws
that rmy be reguired Or Selhr'r opcmtions. If at my tlme Sdlor frib to mhintain complimo
tilith th$ pcrrrits and limqos d€sqiibed in Seo$on 3.1 o.r *ris Soqtian, or to p,ovide
documentallon rcqutrcd by 0ris Sec'tion, sugh falluro will be a mdprial breaeh of this Agocurent
that rnay only bs ourcd by Seller $&trritting to Ayiffi ovldenco of qom.ptianoG.
9. CIIRTAILMEil\IT. IIffENRITETTON OR REDIreflON OF DELIYENY
Avista may rcquire Sollpr to curtall, interrupt or raduce delivo;y of Not Output if; in
accqdance wlth Sec$m I0.E, Avish deternrineq tht curtailmsnt, intomrption or rqdrrctiom is
ncccssary becrusc of r Force Mqieurc Gvgrit or to ptot$t pd.ffi fi troperly hm inirrry or
daruqgs, or hega$sg'of qnprBensios, rccossary sysHn'malteuanco, sysbtn rnorfffio*bn or
spccial qpodlng circumslaqtrs. Avista shall rrsc commoclelly reasomnble eflorts to ke4p any
period of curtailmont, intcrruptioni or reduction to a minimum. In order ngt to interfcre
unrpasonqbly with Sellcr opq.rdions, Avig.raSqll, to the et(@tpmodgal, give $ellcrreasonable
prior notie of any curtailmeu! interruption, or redugtion, the rearon for its occunencc Erd its
probable duntion. Sellor undcr*arde and agrees tftat Avlsh may not bc able to provlde noticr to
-l2-
Seller prior to intcrnrplion, cufiailmont, or rudustim of cloctioal onergy rhlivcrice to Avista in
cmerggncy circumfrnBeg, rcaLtimc operations of &s eleotic sy.rten, and/or turplanned cveNtts,
r0. otqBAr,IpN,
l0.l CQnmunlerthng rnd R.ooIdru. Avista ad the Sollor strell maintain
appopniate op$ling m$mrmioltiqm th(qEb tlre Cornrrsnioatingad Reportlng Guidclincs
opecifiod in Bxhibft.A,.
10, Eallrye xlqq 4cmhnGg of pilVW of Flor+v.
r0J.t Avhtemay flEtdl' igterqp$, rcducoq urryeddelivwy, rcceiptot
aoccptsnce ofNst Ouqut if AvluE" in its inle dircp[ioni rcgsonally detcnnines,tlUt puch
curbtlmcnt, in&nrptio, redution or ruspardon ir recssary, consigtsnt wtthPrudent
Utility Practice, and tlut tho frihf,o to ilo sa g-tay:
(r) qt&nger ey pe,rtoo or prgportyr or Avistr's electric systcm, or rny
clochic qrstmwith which Ariibls syS€n is itncrconnocH;
(b) cauce, or conttlbutc to, an irnminent eignificant dt$uptrpq of eloctrlc
eervice to Avista'e or arrotha rnilitytg suetmas;
(c) imorforr wihanymristnrction"installdion, inopoction, tostiqg, ropair,
rcplaeomsnt, lmnrcrrynent, altcration, modifrgetiort opcratioo, upo or
maintenmce of, or addition io, Avista's dcctric ey$em or odro prgporty of
Avisa; or
(d) cause, contrihrtE to, or necosdtatr operation of uy of Avista's hydro
elcwic pt$c$$ in violition of my ltcqsor,oth"crrW{atory requirmcntr,
10.2.2 Avista shall pronrptly noti$ Sellsr of the nuor.rs for any euoh curtailment,
inmtrptiqrL rcduction or ryspcnsion prcvidcd for tn Seatiur t0.2. Avlsta slall uso
reuonrblc efforts to limit tlp durfion of any sudl cu&ilmmt intsrrrrption, rcdrrglion or
suspcnrion.
103 Sollprtr Rt{c Scller&all dceigt\ oonsfiust, orut,op€rato ad matntain thc
Faoility at its oq{! ri* and orpcnse in cqrytarros with all appliclble laws, ordipgnocs, ruloq
reguldion, ordsrs and othcrmquitffit€nts, now orhercaftEr ln ofreeq of rny govemmental
authority.
lOJ Avfuh'r BfufrI to Inroec{. Seller shall pcsnit Avista to inspcst srd eudit th€
Facility, rny rol*od productilm, &livory and rchcdulirg docwn€ntatioo or &e oporuion use or
maintonmoc ofthc Faoillty d any reasonaHo tiruo ud upon rcapnable notice.
-13-
lO.J $nllq Q Ht+rllonr h ltaqr{fncp f$t tndent UtSFv Prmdoe* Scllcr shall
orryn, operfiQ pndmainhintho Facility aqd any Solleromed hofiitics haccordspc wilhPrudent
[ninty Practiocs.
il.o ilITEecQ,NNEcrrpN aryp rR^r{sws$o,N
lt:t Sellu Satl mclrc illuecoq'ssryaqr..+g-wmE dpry all poqtstotdcraoqltqq iu
Facllity wi& the r,legriool ry$co oflh Tronrmittng Enfity. Aua&cd as Exhibit F la thc
lnteocorureclioo and OperdirU agr.cammt.
ll.2 h ths svont that Sdlor or Avtsh is raquirod to enilril, lnterrypt or ruduco deliwry
ofNA Output to the Point of &!ivory, $eller m+y usg rea$ondblc aqpmsgif,l ctror-t$ to arrargcr
at Ssllcr-r solo exlreo$e; for dclivery of Nc* Outprrt ot r ccondry polnt of dclivcry (%lErnste
Point of Delilryry'). Avilh will use reasor$lc.cornqFrsiA offorts o aoaeptNcf Ottput at eryh
Ahcmats Point of Dolivery; FwtM lrowever,that thc Prtios hrve enablcd ard calablbhGd thc
use of cuch Attcrnate Point of Dcliycty psrsumt to Scdloo I I .3.
lt3 gsllgr shell bE rcspoffiibh for ury and all coste ad erpcnrs rctrtcd to ilrs
transenission ofNet Outf,ut to thc Pqifi of Detfuery or any Alte{niF Poiril of [bliver-,y rmder thls
Agrtqrent" tnctuding btrt not llmibd to Ancilluy Servicos and ary coce or orynnsos hrcuned by
Avl$a rcflttdogfrom gnnbling ad establi$isgAvistatrabllityto aooeilNA OuOtilatths Polnt
of Dolivory *d any Alunqto Point of Delivcry. Sudr oosts ard ogenso shall ircl@o $ose
for metcrhg and olhm paralld operation hoiliiics specifiod in Exhibit O.
IL FORCE MI..IEURE
lal Neilb Party drall bc Hable to the othErParty, or bc coneiderd to bc in trcacU of
ordcftultundor0ris Agrrcrrrcu, fordclay inporfornanoe duetoacilse orconditionbeyond
such P€rty'! rpaprisble c@tlal wlrhb @ite the p,xenise of rown$le &p dili*qpc, such
Party is unrblc to parent or ovsruomc (*Forcc Mqieute"), includirU but noi lfunitcd to:
(a) fircr flood, sarthuakc, voloanic activity; eoun oidor and rct.of oivil, military
or gwernmcnfirl mthoritv; rtriks, lockout end dher !$qrdiryute; dot, insuXiction,
sabotagcorrrrar; $ailicipalod eleuriu! disurbaoce origlnattng in ortarprnitud $rough
suoh Purty's elcolrb rystem orany elehh $y$t€rn wiih u,hidl nrch Parttr/r syrtcm is
inrcrconnectod; or
(b) an actiotr takcn hy suoh Porty which ig, in the sole judgmsnt of s1rolr Party,
nccctsa(y or pnr&nt to protect ttre oBetation, perfonnancc, tntogflty, geliatflity or
subility of such Pgty's electric Eyctem or eny elcctric qfiqn $,hh whidr ruclr.Parly's
elocric sy$cm is imorcomcctod, whGthas such actions ocour altomaticalty or maorully.
lle In the qren! of a Forcq Majsure ovent, tre $rng for pcrfurmance sqll be ext$ndd
by a perlod of tirnp rcasonably ncce$fry to ovoroome ruch dclay, Avisu shalt not bo roquired to
pay for Net Outeu which, m a result of any Foroe MaJeure e\renl, is not delivercd.
-14-
123 No{rir8 cst{tnd in this Sectioo s[ul.l;uqrdre aoy Party to sdtle any stsike,
loclcout orolhcr labor dirputc.
It 4 In thc cvetrt of a Forcc lvldcue evont, tre &l.yud !ar,t-y ghdl provide the othr
Partynotiae by hlqil.rulc oremil a$soon esrcamnably practicaUe and writnn noticpwithin
fuurQo'ir drys aft6f thc Oa4$rqpe ofthe Foroc Mqlcwe et e[t, Stpb noticc stpH inslude thc
nuthulqrs oJl[qosertr]cncc. Thc su{ponsion of pafornrance $r0ll be of n0,giqqtor roope ard tro
logorduntiontl4rl isroquiredry the Forrc Mqiarc m.dthcdctaycdParty dtrll usc its bcst
cffurts to rwcdy itr irqbility to porfom.
12,5 Forcc t@arrc r$dl ihclu& ruv uqfqr$oen F.t9qldcsl digturbancc that prp-r'ents
ury clocsis cnerry dcliveries fr,om oocuning at tho Polnt of lhlirryy md at any AltrrirEte Point
ofDdiraery.
13. INIIEMMTY
l3.l E00h Pertv rhdl dc&nd, hdcmni& ild IroH hfinless, tte othcr hrty, is
directors, offiacrq am.doJrcCg.apd lgent (qs the "lds.mnibp? fnm and rgnirut all chimE
dffiards caussE ofr.tiotr"Ju4gmrn*s, liabilitlo md assoqid ruts md expgtqqs (inclding
rcasoh$h ottgmqy's feoi) tg th pxten! ui$.bg tgm.or attributablo to thc performQncc or lmn.
performance of ttrat pe$y's (is thc i'In&ruritodi) obligctioffi rurdor this AerggmBnt, irrcMing
h[ nqt limiH to. &rnige to tgqiblc pmpdy and bodily iqiury or de*h suftrcd b]l ury puron
(inchding employees of &Ucr.or AvisJr or the publD, providsd that:
(a) No Indcmnitpo s-hlil be indffiurified fotary losq liEtxlity, injrny, ordrmage redting
from ite soler&giligcnce gross- nogligence,Ihud orwillfirl misponft+r; md
(b) fre Indemnitor shall be cnrtith4 d itc ofliorr, to isswre md controf thc defense and
alry sctlement of such suit.
Eaoh indemnity rot fodr in this Soction is e codhui.lU obligaliorr, srporate md indcpendcnt of
the other obligetlms of each Party and shll smvivc tho cxplntior or tormlnatiorr ofthie
Agtcment
I3,2 SELLER ANII AVISTA qPECIFICALLY WARNANT TIIAT TtrE TERMS
AND CONDITIONS OT TIIE TORE€OING IND.T.ryINITY P|ROVISIONS ANE flIE
SUD.IECT OT MUTUAT TMOOTTTTION BY TITE PABTIE$ AND ANE
SPECTRICALLI AND E}TFRDSSLY AGREED T-O IN CONSIDENATION OF TIIE
MUTUAL BENEFITS IIERIVED UITIDER TTIE TERMS OT TIIE AGBEEMENT.
I3.3 EXGETT AS EXPRESSLYPROYID}D HERETN! NETTEER PARTY
sUArP EE LI,AEIJE ITNDER ANY PRoVISI0N or
"HIS
AGREEMENT BoR ANY
SPECXAL, INEIREET, INCIDET{TAI+ qONSEQUENTTAI4 OR PUMTIVE DAMAGES,
INCLUDING BUTNOT LIMITED TO I.oSS OT PRONT, SAVINGS ON REVDNUE,
H)SS Or rHE USE Or EQUIPMENT, CpST OF CAPITAT4 OR COST Or
TEMBORARY EQUTPMENT OR SERVTCES, WHEf,REB BA$ED rN WIIOLE OR IN
MT)TIIALBENEFITS UNDER IIIE TERMS OT TIIE AGBEEMENT.
- t5 -
PART IN CONTRACT' IN T9BT' INCLITITING NEGHGENCE STRICT IJTABILITY'
OR ANY OTHER TIIEORY OF LIABILITY.
14. Aqsr-G,NMElrrI
1{.1 Soller shall not amign its rigftt* or delegale ftq dufics uder this Agrpamsrt
Subjost to thp fueeoing rstristtq\i om asigrynerltr, fris A8trsnrels elrall bc. ftrlly bindtnrg Won,Inurt to ihc bcneftt of and be cnforeeable by the Parties ard thoir rcepootive flr0octso.tsr hoin an{
Kignb.
l{.? $pller *all havo tlre ridnt, subjet to lhe obllggtlone ln Sixfion 8, without Avlsts's
cohsent, but @h a thlrty days pior wi{tten noUee to Avigr, e rnakp collaleral qssjgl-unents of ito
rights rurdcr thic Agrocmont to SsS ttro raquiremenB of any devdoprmcng construction, or
olhe rc*fqlablo long tetrr financi.nB. A ollatenl qssigtrmsnt shal!nd constitute a &lcgation of
$allcr's obligaHoue under this Agreenrent, and thls Agrmrent ghg[ not bind tlp oollatetgl
asiignoc. Any oqllsf-al agsignee sumecdfug to anJ portion of tre orvuenhip intq€st of Scllcr
slull bc coqs&hod Sollcr's slcc.csqor in inrest and &!l trcroafrer bs boud W this
Agruorrut.
15. IIO UNSPECIFIED IHIRD PARTY BENErIC|ARIES
There are no thitd party tnxreficiariee of this Agrccmort, Nothing oqntained in this
Agrwnent ie intoqded to confer any right or intercst on Enymr othcr than the Parties, and thcir
rcspoctirrc suooesfl)rs, hcirs and assigns pffmittd rnds Sodion 14.
15. I}EFAU,IjT#XDT,ERMINAII9I\
16.t In eddition to rny other hcael or failrre to perform under this Ageement thu is
not othsnrisc orcUsed rm&this Agrccrnent, oaolr ofthe followiry events shall constltute a
De$ult:
(a) Seller abandorrs ttre Facility;
(b) fte Facility ceasas to be a Qualifying Facility;
(c) A Farty trecoines insolrtrrt (ag, is rxrabls to rnd its o,blig*ions as thcy. bocome due or its liatilities oxceed iu a$ets);
(d) Scllcr makss a goncnal asignmemt of sub*arrtially all of its as-sets hr &e
hncfit of its oreditors, frles a petition for bankruptoy or rcorganizdion or seeks otrcr
relief undsr any applicablc insolrrency lawo;
(e) Sellu hie filcd,qgainst it a petition frr barknrptcy, reorgmization or otrcr
relief uodor any applicable insolvcncy laws and tuch potilion is not dismissd or atayed
within sixty days aftcr il ls filo4
-t6-
(0 $e-llcr is in deflult undor any Agrecment relatd to this Agrcemenq
(g) Tcrmtnuion, ooucellation or urpirqtion of any rgrecmcnt Equircd for Ssllcr to
dcliver N* QuFttt b Avi$l udsr 6is Agrtcmant inoludfuU but nol ltnited to &e
Inerconnecttom and Qeratirg Agrcomos
160. Nodernd Oppo$rd$ tp Cltrl ln ltc gyg$ofs &Sult, tre non:Defadliq
Psrt/ ihall giw wrifu notice io ee DefnrEfurg. F-arty of a [hfault h mco.r&nce with Spotion 2J.
E (ccpt whrc tlre anplica.ble peion prcrddeo.f e{p rriod for tro pplicablo de&rulq if ec
Dcftulting Party lus not crrrcd firG brloch $itldn ttlriy days Efter Ng_slpt of such wrt$e.n nodcp,
ttn frol-r.-DofrulirrU ffiy may, d its Wtio& tcr-mirme tHi Agrcamcot afd/or prnuc ury rcmcdy
availablctohinlmorequiry;provtde,dtrit,ifa:Dqfrqltasc,rtr-$rtdor'sootiotr$ l6,l(q), t6.1(d)
ard/or l6.l(e), A-vhln E !y iuunedi&ly Ermirule &ls Agosnrcnt withottt oppoftunity to cure,
urd sucb rcmltfiion $all bo-cgrne offcctive upcn wdtten mtioe of Def-urlJ.
f63 4ldllhurl nfttur $d Rpmdfe. Any rpilt or rcrncdy atrorded to either Prrty
unfu this egrec.ncff m hccoirnt of a llehult by ttp other Prty is in aildition !o, qpc not in lieu
ot, all otbcr ilghb m rcryrcdiet rvrihDle to Buah Party rder any oth€r Fovisions of this
Agt€emffit, by law or othcgwioo on ai*ount offio Dsfiult,
17. prsP-gIsFEsoliuuoN
Bqeir Psfty shqll $.itvo to $solve *, 4( al! ditrererccs during the tenn of thc
furoenrcnt ihrotrgh nectihgp and discussions. lf a disnute eannot be .r-csotved wirhin a
reasonable time, roi lo expogd thlrty days, eaotr Puty dmll escalate the tmresotved dispute to a
sonior oficer dosigly.rtd by qoh ffiy. tf ihe scrri0r offiaere slE not able to rr.ro-tw eG disptse
within ten Busitpss Drys of Gsoatation ttrcrr dthu Futy may eidrer agt6 to mdlte or arbltrate
thc dispfre or rcquast a hsariqg bcforc thc Commiasio.
18. RELEASE pY SELIFTF.
Se[er rcleasos Avista from any md all cleims, losge$ harm, liabtlitios, domagps, coslr
and oxpgore F tlrc lxtent rcsulting fipm any:
f&f Ehc.fio disturtsnoe or fluguation that migrates, directly or irdircctly, front
Avisla's electric systcill o thoFacillty;
f 82 htemrption, grspcndon or crntatlment of electris scrvico to the Facitity or any
othcr pr,CInises owno4 poosessod, Gonbolld ot rcnrcd by Scllcr, which intcrruption suspendon
or curtrilnent is oausod oi codributcd to by UF Fasinty o,r tho intqconneotion of the Frcility;
Im DissoryFcthn, intcmrption, urspension or curtailmeirt by Avisa pursuam to
t8rms of this Aglcement or the Intetconircction and Operating AgrWmesrt.
-17-
le. GoVERNMEMA,LAUTHOREy
This Apcrtent is $rblect o flr rulCs, rcguhtion+ oriks and gttrar reguirelrlgrts, of all
gorremmpphl arfudtlcs havingiu-nsdiption or,qr ttp f*iktv, tUs ASGGqcd, thq Fodes or
cither oftlnm, lncluding Sceion 210 of PUilPA" AI hvs, ordiilfn$, nrleq rgg&t-im, ordors
and o,f,rcrrequir€meoe of gororomertal authorities thd arc reErirod to bo lnoorptmt$ in
agrccmcnF ofthis chsaoteiareby &r* re&rcr-rca hmfporqtqd in this Agrpeiropt.
m. srwR4l,p.BptcA,TiQ,N,s
Th dqtlo$ obligErions ard lid*litics of tae hrtics rrndcrthig Agrcenront ars intonded to
bc setmt not jofud or collactivc. This fucEt SBll not t*, iffipretedorgqr$.brryd toqpalp
betwocn ths Prudas. Eadr Paity stsll b0 individuallyar associ*ion, jolnt veniurc or
21. IMP,I,EIIIENTATTON
Eaoh hrtX chall pomptly takc suoh actim (inoludirry; but not limited to- the cxecWiorr,
aclcrypwledgatrsnt end delivgry ofdoqEcr-rts) es rny be r-crsm$ly rcqrrcsted by the other Party
for thc implenrontation or continuing pcrfbnnmc:c of this Agqrgnt.
22. NON-IIATVER
ThG hilure of cithor Par.ty tg insist rrpgn or epforye striot perforqmqe by tlro qthpr Party
ofanyprwiilonofthlsAcrGGmAd ortocn(crclserry rigttrmdorthis Agreement shcll not be
oonsEmd rs a weivcr or rclingui$pqt of such Party's riglt tro assert or rely upm any strch
grovieion or dBht in thai or any ilbse$Enl inslanco; 56thir, the smnc dull bc srd reqratn in ftrll
furceand effoct.
?3. AMENIIMENT
No chnngo, amendmont or modificsdon of any prcvidon of lhis Agrprrlet$ slull be valid
urlcsg sct fo(h in a writ$ amndmmt to this fuiecmeCI signd by both Partie and
zubsequatly apprcved by ths Cat1etsslon.
u, c4olcE o['k[ws.{NP vENvry
This Ag1pe696 shall be constrqed md intcrprsed in apoordmpo with the laws of the
SHe of ldrho wi0rout roforcnea to its choice of lav pmrisions. VcmF for any titigttion arisjng
out of or rptded to thls Agrecrrent glnll lie in thc Didrict Court ofthe Fourth Jndlcial District of
ldoho ln aud for thc County of Ada
ad sevcrally tlabte for its own gtll8Btions $rderthis Agrceqrcnt Fur|htr, netthr P$ty shall
have trr;t right* powcr or au&ority to entcr hto any agr6curcnt or undertaktng hr c on belrslf
o[, to rct ae to be En agant or rEprcqenutive of, or to otton visc bind thc othcr Po*y.
- 18.
25, IIEAI'INGq
Tte Secfiofr headings in thir Agreement are for convcoiCIoe orly md shall npt be
considercd pqt of or u*d in tnc interpretrtion of {ds fuioemont
2G $EITRABrLITY
Tto inrnrltdity or unerrfmabilrty of any pr.ovisitnr of this Agrepmomt rMl not affbd lhe
vdtdrty or c&rcCIblllty ofmy otherp,rpvisian of 0riqAgmsm€nt, rldrhls Agffiont Sallbe
coffitrued in all rcspcctsas if the lnva[d or unqrfo[ocabfc prOvisiq urprp goi$cd,
?rt. couNrtsBPAFTs
Ifds Agrwrslt may be e.(ocuhd in tuo tr mut eoqotprpsrts, each of u&iclr BhaU bc
dccmcd as an originrl and together s}all mmtitutc ono nrd ttro saflF doonment.
U. TAXES
Fxoh Farty *nll pqy bcforc dcliquoncy all toxcs md pfircr govemm.rttsl slurgps fqr
ufiich srrch Pffty is reqponsible and uihich, if frilod o bcpaia whenduq could rwult in a lien
upon thcFecility.
29, NOTIC,PP
Unless otherwise specifie4 all writtcn noticss trothpr cnuurunicrtions r-equired by or
providg6 ur4O this Agresment slratl be mailed or dclivcr,e4 to tlra followiqg !d&osm, arrtl shqll
be oonsiderod dolivercd wtrcndeposircd in the US tr,lall, pootago prcpaid, by certified or
registcred mail sr dclivcrd in pGffion:
to Avista: Dircctor, Power Supply
Arisra(hrpgradon' '
P.O. Box 3?27
Spokane, WA 99220
to Sdlor: OencrrlMloqgcr
Koptoqt Elq#c Coop_erative, Inc.
2451 W. Dahota Avenrrc
Hayden, ldahp t3835-0278
Erth€r Puly rnay ohange its dosignErcd rcprcgetilatiw to rseeive rrctice and/or addrcss
spocifled abovc by giving the ottrcr Pmy wdttcn noticc of such chartgc.
il. $uRvrvAr
Righls aod obligntiot-ts whloh, by ttrcir naftue, drodd suwivc tcrmination or cxpiration of
this Agrecrnait, will rcrnain in sffeot untll satisfiod, irrcluding wilhont lindUtion, all outstanding
- t9-
financial obligatioms, and the povipions of $eotion 13 (tndemnffi Ffld $oction 17 (Disputc
Resolutiorr).
31. prwrFE Ass4wrII
nris fureorent, tnoludlngthofullowirgexlrltritr whldrfre Utaohed md irpqfponted by
ryference.hr-Ein' oon*itrln thecoti$ agrucmem of{re Partim mdsupgrcedesall piorand
contompomneous oral q u/ri0ln si$wr .mt$ bstwqoq thp Prrties witlr fqpqptto the sr-bjoct
rrut6hcroof.
BftibtA Communhati.wurdRoporting
E &ibit B Independcnr Engineorir.4 Certlfeatiom for Construslion,AdqquaDJ for a
audiffltg Facility and Qprationsond lvlaintsnanoe Pohoy
Projec'tlhscription md Point of [lolivery
Aroidotl Cost Rates
Initial Capecity Determin*ion Doqrnirentation
Intorponnection ird Opuating Agoclrtcot
Facllitics for lntcgntion amd Oporation of Fictrting Creck
Faclllty
lctter from ldaho Powar Company
ExhibitC
Bxhibit D
ExhibttE
Exhibit F
Exhibir G
Exhibit H
-2o-
IN WIT!{ESS WHEREOI, thc Parties have caused this Agrc,ment to be executed by
theirduly authorizcd representatives as of the date set forth below.
KOOTENAI ELECTRIC
Cq)PDRATM,INC AVISTA CORPORATTON
fillg; O<,.e'Lr i(a-!p- /CDs,
p11g3 Frgr./rr IL..,3ct4
Printed Narne: :S*,t Y(:'.'r.-
-
Date: ,A,--s,*r{ rS, z.c,t{
-21 -
EIIHIA
Gonnmfo rrion end Bmorthl
($ Emafll uourrnuntinsom b*wcou $tiltuorlt Avl$slult be qthlfioil to:
(2) All qr-il esmtitlmisetiom.rclsli+g to cledrls prssgy,nphdulln$ gcncrahm lsvol eh$pst
iolerrqptlorB or ouhgi,s t*ttrresn $eltor mli A@ \rvlli be co-nnflttrEte$ q a twCQd ltqe as
(e) D,rgFdfiiliilp 630 uto D:O noon ori Business Eayr):
Avlgb,Prb"iich$rderr (5(D) +95 +l t i
Altlmdp Pha$r (5iD) 49i:{073
Spllsn (2P8) 292'3276 ($ham Dolsr.l
Agniti- thqqTt (affi) 2$?r3*l Oqne H[ptt)
(ul- Blsfl,rmg solstutc (nttildhte 04' hsufs a dav)
or* grelrfime lrchifulc$ (S09) 4p5.E514
Sollo* O0Bl Z92-1276 ($hatvnDolu)
Alteneii P'hqn6r @A$ |nanl (Diiris FJliou)
(S) Eithu krty may ctrogs its contd* infaffiatiQfl upori writtori notico m tho othcr P,*.ty.
Sdltq dd
Alt{iifie,r
-1"
'lto urd{dEql
lrngtbeartrg FcluElqrr, Ir.
APPm[,l]l[,$
mmnuBfs(mflrrriAlraN
@
DEffiN * @lErqmrmNlDfi(rulcY
Bony tiolon.r f.E,..;. - -a .i o[ bcfdf of hltttolf ad
hqpttFfrtr settqthttr rrftrild lo i rltshcf,
hrruby dotr adoltlrb b ifho Poryor r Uhus
ft* rqffroolr I lJccrrod hE[oml ltrdrr$ h g!0{ nl.-4q8 h lto frts of
IU &{lrm hr rq,h,ltd dro &m![ 8e Allucrl, hffi0c rlltorrc[ll
footraat ttroota{o
botuctr Ufio fbmr s Dulcr, ld Fgnrr*trrp. rno, ,* s gglk, d&l
-,
rtrd,51 .1u11 - -.-,
5. thd ilB ootHunlim o! rq I pmm poeUifl ttttdtt, rfihh h ilro r&fr* of {E
Agmilf d 0d0 Sfrmsrt, ir idatillod r lllCo holly 6 21-855113 ad b halhrlps
ttfrrndbxllanl4ffir. Ftghrlog qr6at r{mdtrU
4. rrl &o tn&d, wilch b oo'urry horr .n rt" T: to-"o*1.i1lt&.n,,,
hc.hdh&orh r tqm*hj3-,8$EE s .,.rTl*(h(r, FEToi
s. ItC tsrdllr eoqfd.o.lhal tF Afcrfo$ pwtuhe fa fro hqcd !) fttndJr dcollidt
qrmry b lfito&ltB fu r st-- c!. ) rll porbd.
6. 'Itrlt En8|0!0r lrr qililhdH qnlr,tiqnc h lto.ddrrr 0ot;Ttfoilor snd oefitrlon of
olouio pr pldr dOn nap UDe r bfo Eqrcd
7, Thd e$ls{ hrn rp qegoooh ry to e, th{Ar Htglrerof tlilr llqFr mC
Xar or& 6n urlyrh dEcilmu d foel0u&w lo&e@0y.
t 'ttr* h3P hr uiarcd tlro ogirrqfu ddgn mf urfrudhn of 0r nrrdcd,
induhU ltp olvlt q,odt &olrh.l rot, |mtiq rgimsnt pftna rma mr4ryrmo rlnhF, tdhr
Smrbhcrl kmrqmoodorFnollhbr md elhor W.d toffilc rrdcqdporcnt"
t.
(hoJn,
2.
-1$
z!an0ra
9. Ttril &Cuqor rolqnhc llrt l&lqr ?ruror, h mmrdnooo wlh putr{ph !, of mo Asutamtr
ir drlago &&oofu Glilrilrftol Ed {?trhs 6odid h tb Ssncn.
I 0. Tt* Eryhrr ot$frr dnt tho {bovo lrlnner{r lt oo4laq fiuo md roqn$ to ho bcrl of hir
fwffis U itmtino rr Ur ml uO rcU tdor.
OJlffrD)
-lt5-
vutnt
,}Pt{stpD(c
mrc|$wsctl*flmJLTptl
ul
OTET,ATrcDE & MAIM'IO.IA}EE FOIICY
Tto r[@nsd Bt*',r *T:_:'t' ,, , _, u bltdt of iLll.tf ild
Jtryl3lgJr=':,1=:-, hu&ner cotCIiv* rthmd ro u thdrarl
lrr*y otor m0 oorlfiorp 61 0dlm u h1lqru
I. Ifruednocbrl.iqlCStro$rdomletthilrh gpdrndfrUhlto8HcofOqor.
2, Nhrt hdryrrr fta. rsrdd eo lhory Srlar Apou, lodmic iAjrumgtr ffi
t60 Biror u ltqrf, .d Yry"o'r*htor, dd
ti.mh B, 8or!_._.
3. Itlrl &r ooluE|Ql.h r rotll povnr pp&uhn p!q@ ryllob b $r lr{f,pa 0{ ltc ACE ncrl
odlU. qrpril F ttrfrerlr [glhofllyl{o 1136Eu3 trd hbr-chrftgrtnldba
fio"hd$nd.x rt$ttnr cr.ck bo{fiu
4, mr &s hilct $il,! Ir qrynury ioorn cr [" !]" Dt*ry
=tTofr
hdcbd tn
SoClu l-.--.,Tomfiip 4.tr ..Rmo 9, ,-..trtm r:or4y, {"q!.!t,uf
5. tldft$mrtw8rfrnchtSoAgooncd pnx,lfu tbrttofxdocrrM{daatlorl qotg,
toldctolnrnrftrporlodof-$ ywr.
6. Ittl l3odnror hs r$mftl inppeiloo ln lt drdp coortsrlllhi nd opcrriloa of oholrlo
poncflnlr of 0rr urtri gpu u [rh lhd!o{.
?, 'Ihd h3lrnr bu no cpuomlo l*timdfip to llu llariXn lhginlor of thb Frqioct
t. ltdlh3lnmrtrmilcurcdulrornrpcvhodthonvhurofthoPolhyfo Onmilarud
U*Uglrco CO&UT frlDb PqFc rd ft I tir pofortonal ophim ri* pmuldod ldd ftoJod hl
hoat dirdgrodand bul[ to eppmghh rnrdrdr, odlnrcnc b $H O&ll ltlloy wllt rurul h tho
-lr-
7lulil.t
Itojotl prcdr&g r or rru &o doligm rilodrlcd oumf oi[ollmy id plrt fsllof &ru pwio0 of
-^if .----rm'l
9. It*Itqherrrqnb&il ld*o Brmr, lnroc$frroiu,l.tLtry[rehtlof0p Auwn@
L ruly!* on lthtd| ttproffihr urd oplnhqrtltff h rtfi fitsmrl"
t0. Itd &douudfifr thdrho.torcddsrslr orDcerymh, h[g ffd rqffi*olo dtohsorhh
horffto rot &sohrt rotr t& hnd rrd md tdw.
Ary 1/.*.*--,. z./..,. k
O.B saw)
,.lil-
?/yvl'lil
&HSDilTC
Etr6lhfl$eEaBmtrrcArrcN
OF
oN-@nF oitnAno,B rrNu mrnrisil/mcr
mt*9ra TY"Ettlre, D.E.lt
If[RgiIDccrdtlg
m ho[rlftf lhrdf ud
b u &br*" h$b,Solutlonc. [no.lri*ric qolhollucly r6md
rEhoild $ldfrEc lo &o Edhra &Iawr:
Ttl'&glis b a tr lemd ftuffbrdoml hglrerhioo{ frdht h EF tldo of0(p.
2, It* Blthsr ]r rwio$C Oc thloy Elo igr!Fr.* trodndr t'Allnoilll'' hfrqo
Eootilrrt fLeotrio
UdoForrirhrltr, rd@r!dhr.&ld. .*.:ot t','0"-,
3. Itrl l[l oogslotrfti! u grirll poru ptftphn Fqlqd *-U$ ft thl r$ou ottln r$gamnt
rrd rhh Stiromoil h i{h{|fi!d m Floo Feoility }Io. nbfEtll,.
. dl hfah00s |t&n!d to m fu
"Pnd!cP.H.gbtl[g L?G.k l{ndt(ll
L Ttil rho Plldfcr, I,thn h 0gnrrfit bropr r tu T t" .=3 =gl, I hrrd rt
trptl Eantfr lf,Y 95, S.ur OCAlcno. lD
5. T.hdedpnnoqr4*Of fioArlwoltprotd&tAr&sltqfadbftHtlrtdcotrtcdry
lol*]efox,rfsrpuiodof -- *- , .. yurr.
6. Tt"at eghoor lnr rrhrfiCld o4chnoo ln ths dorlgn ocrrtndlon md rqmri[o of cloctdc
porm ptdr dltro tmo q,po $llfi InFd.
T, llrtlh$nttrhtlooocmlo$drthtfibftlefp&duocd*bPr$.
& 'ttrt llttBlua.r hrn mda a flyrrfonl inEoctior of ralt IhFd, fu qralior rnd rnrinhmc
rEGo& rlnoo 0ro hrl provion oelll(hd fuporrhc, n b Bndm$b lm$rchut qrhlarr, buod on th
ffiot'r qpararo, tt0 ilo oqdng (}&lrl hm bur qrH4t[ry h rounhp r&!r mld Oil{ l-tloy;
Oa I lr lu rumhly rqd spgills| onrdlildti ud firt lfdtfflnec lo rrfl OtI{ hlloy eont@1 irs
Prd€C wlll coffimonro&*h3ucoorltr@n cloolrtcrlin$ot,cffidcrirnilphEtfslo, frrllr
rrndntq -l!- 1,atr of tlrc A3rEmml .*
Thrt l[o lrqhot Inr bmr oorulnrlod lr rmlfrtrc fd0r rdd dan rnd qrooltlcallooq alt
AilorUlG q&r url Goldffit wlfi !!u&d Efugtlpal ltrrdocr u tht toril'b dccffi ln $r
Ag[Hloot.
r0. fint tho (.*;rr ?rd ?gr{tuoltr 66 p6oC I nrolr llnl rJfb rytrttu and Fildcil,
Wnfiou od gdqetlileopn4ier hy fiCh, Uro hfp! nrofrth o[f$n*U in roporimo r$h &c
trrmofthrilgmpilmdeb?!dpdm{E qdr|Qk t fr,rr lltlJ\,( u }txrpdoe
ll. ttrt ttsc:or eeq$hf ed l{dro Rru6, h.opogdtg tutlh pryn$St of fio
A#qru[, ln lUmOcfug {E mcd w& ltr rtilFq. tu ntdrC c &f&rndb nprumtuficp rnd
dlHstr ffihln!{ ln h fldrnmr.
t2. lld E$oor qtifu fit &o eqo &0wnl, rrt quduq tnn nd mcm ro &e
bo{ of hh }nmlofte rrd lhmfoc rcr [h hod md.qil b&ry.
rlet"dl/-/-? Ar"-.a -lwt
-1?-
,ltmal
DtlcfisflQp of thB ff+iilltY
Selkr's fadlty ii dosod.bcd as tlrc Pightins Clook tedn[ fu b Bngp Faaility ard corei*s
of; Turo 1.6 MIV gpltcrators edr pourcrod by a Cumryillar Mqdc! 3520, pqk ignlb4
reciprocating lnrcnral combrustion englnes dcofiicrlly intemcmnected b Sellcr's 24.9 kV
dissibutifi froilfties tsrm&ratod on lhc prqieel burbm. The Prroicct will usc rncthrne gas
produoed bydocomposltionofwasls int€nrcd withln laudfill,fire Mts localoil atKootenai
County Solid lVortc Facititv (Wt 16.93 , N47.532), near Be[gpvc, Iilfu.
EilDIG
Prolcct Dol${nffon, rnd Polnt qf DqlUprv
Lmtloq:
Sellor's Facility is located d: Kootenai County Solid Waste Facility (Wl16.93 ,
N47.53?), noat Bellgrove, ldafto.
Polntgf Delivert:
Point sf Do-ffvqr-y Locdion: Th potrt wlrere Avistr'q tlowcr - Post Falls I I 5kv Tap
Transrrissim Line and KEC's tlo1upr - Posl Falls I l5kV Try Trmsmission LinG Erc
cmrcctrd.
A[Frnem Pdnt pf Ddiverv:
Alhrnate Pojnt of Delivery l,ocrtion: ft, porlt wherc Avi*a's Dower -Post Falls
t tStV Tnp Trumisdon LinB sorvcd via Avista's Fost F'dl.s - Rrmsev I lslv
Ttamsrnipsi0n Line and KEC's Dorrer- Popt Frllq I lSkV Tap llaEarnimion Une arr
oonnoctcd.
PohlofUetcdnm
Mdcring Locatiqr: In Scltcr's Facillty, ur thc 24.9 kV side of lhc generator step-up
tnnsformet orrer wtrich elecric power and encrgy 0owr.
ryxhffiJ D
Avoldril CoctRrtcr
LEhr
lred
Hcsvy
l-ad
Period
Jun 201tf - Dec 2014
I{ows }lourssnirrvh snirl,rr
Erhtbif E
I+ffiql Crtlq#v,D4dphqttop lhcqFcqbthn
Wifth fifr$co (lsFays ator a Comnision ordq spGeifiGd ln Sedbrr 4.2 approving this
Agrccrnent,tho Sellr Cull provlds tq Avist$
t.the tnauftcfincrls sedal nunber and spccificottons for cadr enging - g+rqlor installd
attlrcFrtlily.
ilre Initial CryEolty lhtcmrination of ttre Facility, qprcerod ln kiloutrtts at tho Point of
Dclivq, ufrich is egwl to tlrc sum of the Frcllityls grow output values i&ntified ard
providod in Brhiblt C, less facility Servico Powdr and Lossc6.
Frci4ths for lrtcsretlon end OpcFFtloF ef Filhffrir Crcok Faclllts
-l-
frulmbrbn9.nla
AvhtaCorponilon
141'1 E MbslonAwnr
Spdrane,WA 00202
frwsr:r
Deccmber 5,2011
Mr. Doug Elliott
Clmeral Manager
Ko otenai Elechic Cooperative
P.O. Box 278
Hayde'n, Idaho 83E3 5 -A27 8
SUEIECT: Facllldes for Integrrdon rnd Operrtlon of [tghtlng Cree,k Frctltty
DerMr. Etliotfi
This l*tter Agrccrnent ("Agroemcnt') ssts forth the soope of wort ad responsibilities of Avista
Corporation ('Avista') and Kootenai Electic Cooperative, Inc. (I(EC'), hereinafter sometimes
referred to oollectivd as '?arties" and individually as '?arty," rcgarding tlre construotion and
installation of the Parties' raqrcctive facilities for tho integration aad operation ofI(EC's new 3.2
MW Fightiry CtEak Landfill Gas to Bnorgr Facility (Tacilitt') at the Kooteirai County Solid
IVaste Facility near Bellgrovg fdaho.
L PROJECT COORIIINATION AIYID SCEEDT'LE
KEC and Avista shall coonlinatc all requirrcrnents for this project and oonsult with one
anothq regarding *re duties listed rurder this Agr€efir€f,it. The Partiss iotend to complete
oonstuotion and enable opcration of the Faoility by Decembu 30, 2011. While nsith€r
Party makes atry sf,prsr com:nitrnent to meet strch date to enetgize tho faoilities outlined
within, the Parties shall mako good faith efforts to cornptoto this poject withh fte time
franre identified.
II. EX'XtsCIIVE DATE
This Agreecnent shall be effeotive upon the date this fureemeut is executed by both
Parties. This Agreornont shall tenninate upon reoeipt by Avista of all invoioed amounts
pursuart to Section V.
m.
lrtcr Agrccrmnt - Ffldltics Sr lntogration urd Opontloo of FlebtingGeok Foollly
Dcccnrba 5, 201I
Prge 2 of3
AVISTA'S RESFONSIBILMES AT I(EC'S EXPENSE
Avista *rall provide, Et KEC's €xpcmse, a rcley to provide synch check functionality and
add equipmcnt to provide dial-up access to the n6w relay ou Avista's Post Falls A-320
ciroilt breaker.
Avista shall provide, at I(EC's orpensc, material and labor to program, oheck-out, and test
the raetuing and data aoquisition equiprnent providad by KEC at tho Facility.
Avish strall, at KEC's oqpcnso, providematedals and labor to progfam the Clbeoteo SMP-
4, test and sheel(-out all mehring and SCADA equipmontprodded byKEC, and torminate
the &wire oonmrmicatiou circuit provided by I(BC at Avista's Coeur d'Alme Semdce
Center.
Avista shall, at KEC's expsnse, provide labor to revise relay settiugs on Avista's Post Falls
A-2ll sircuit breaker on fte Post Falls - Ramsey l15 kV line to provide an altemate point
of recaipt.
KEC'S RESFONSIBILITIES AI KEC'S EI(PENSE
KEC shall, at I(EC's oxpeure, acquire rigfots of way and pcrmitting for, constuct and own
ths uew Facility, This constuction shall inolude metuing CIs, metoring PTs, space in
Scller's Facility conhol house for Avista motoring equipmemt, voltage and currmt
indications from KEC's CTs and PTs to the Avista mcfeting equipment, 4-wire
communioation cirouit, 2-wire communicatiou cirouit, appropriate isolation protection for
commuuication cfuurits, and a 48 VDC circuit for power supply.
KEC shall, at I(EC's experure, provide md install a Jernstar rerronue grade meter, test
snitdr, Cyboctec SMP-4, and other data acquisition cquiprnent as approved by Avista
which shall be owned, operated, and sraintaincd by Avista.
KEC shall, at KEC's oxpersq provide labor for the conrmissioning of this equipmont and
the termination of the4-wirc citcuit.
FINAI.ICIAL TERMS AIYD CONDHONS
The estimated cost of the work to be porformed by Avista at KEC's fipeose, as identified
in Sestion ttr, is $65,000, including applicable overhoads and taxss. Upon completion of
all work perforrred by Avista, Avista shall invoice KEC for the achal costs Avista
inqured to complete such wot*, including applioable ovedreads and taxes,
lnvoices from Avista shall refercnce this Agreemeot and shall be scnt to the following
address:
Kootenai Electric Cooperative
Attention: ShawnDolan
Kootenai Electrio Cooperutive
P.O. Box 278
Hayde,n, Idaho 83835-0278
Iv.
v.
Ldlc Agconont - Fu,cilitics for Intsgntion ond Oporation ofFiglrting Cre€h Fadlity
Dccsnbcr 5, 201 I
Pago 3 of3
Rsmittanoes from I(EC shall bo within the timcframe sp€oified in tho invoice and shall bo
sent to the address nmed in the invoioe.
Please indicato KEC's concuntncc by cxcorting the two otiginals of this Agreemont where
indicated below, Pleaso totain ooe origitral for your files and rotuif, on6 origiul to Avista at the
address listed above. Should )rou have any Erestions rogarding this Agreement, please do not
hesitate to contactms at [phone].
Rospooffirlly,
)k5*Lo"{
JeffSchlect
Senior Manager, Transrnission S€rt/ices
KOOTTENAI ELECTRIC COOPER/$IVE N.IC.
conour: [\ d-oo a.Wr^-
Namer DougElliot
Title: Gleneral ldanager
Date: O*r.^U.- 8,.,aor\
ffiffiffi**
An to^cofiP compenY
EOMn|AN E. WALIGR
LedGourLcl
dwalltqt4Udahogower.com
August 14.2tr14
VIAELECTROI{IC 0,lAlL
Shawn Dolan, P.E.
Manager of Englneertng
Kootenal Elsctrb Gooperafl rc
2451W. DaltotaAvB.
Hayden, ldaho 83835
Re: Flghtlng Graek LardflllGas Plant
Force Mafeure Euert - As Avallable EneEy SalE to Avlsta
DearMr. Dolan:
ln responso to your inquirles, ard to pur letbr of August 14,2014, please let this
letter serve ae ldaho PourreCs acceptance of and acknowledgrnent of the exletenoe of
an eront of furce maJeure, suspendlrg each partt's perfurmance puteuant to our
Oregon PURPA Standard Eneryy Sales Agrcement ('Agreemenf), such force mdeure
event belng a forest flrc that has damaged and/or bumed down poillons of transmlsdon
llne(e) ournod and malntalned by Avlete, praventlng the dellvery of Kootenal's
generatlon b ldaho Pouuer purauant to the Agresment.
You have lndicated thit duilng thls anent of brce maJanrc that KootenalwlsheE
to sell the output of lts generatbn facllity, that ls under contract wlth ldaho Fower, to
Avlsta on a temporary and as"arrallable baeis. You further lndlcab and propose the
duratlon of thls force maJeure event to oontlnue thrcugh August 24, and requeat to sell
your faclllty'e output to Avlsta lrcm August 15 throtgh Augtugt 24. As prevlously
dls@aoed betrueen ldaho Porrrcr and Koobnal, ldaho PouBr agrseg wlth trls proposal,
and conaequently wfll undesfinate the network raq)urce dee[nafron of the gpneutlon
prcvlded by l(ootenafs faclllty punsuant to fie Agreement m ldaho Pounfe eyttem
startng on Augr.ret 16, 2014, hrough Aqgust 24,2014, ]fuotenal will be unable b sell
Its output to ldaho Power pursuant to the Agreement durlng thls perlod of un-
deslgnaflon.
You further mentioned future transmlselon curtallments and other oontracttal
provlstons rslated b the same. ldaho Power ls respordlng wlth thls letterlo the cunent
Shavun Dolan
AWUst 14,2014
Page 2 of2
event of force maJeurc only, and any statement$, agrcements, and tfie lke ogressed
hersln ars meant for appllcatlon to this speclffc event of force rnaJeure only. ldaho
Power notee that the prcsent sftuatlon and ewnt of fure maJeure ls not an ldaho
Pofler-lnltlated curtallnent as thafi term ls uBEd in Arflde 11.2 of the Agreement,
ldalp Poluer wlll remorc tlre netulork resource deslgnatlon fiom ffte generatlon
provlded by your facllity puruant to the Agreement starfrrg August 15, 2014, and
endlng August 24,2014, Unlees o,henMca set forth ln rm*lng, th6 notuorfi resource
deelgnadon wlll be Elnstated on August 26, 2014, and energy dellveriee and
performance purcuant to our Agreemant wlll resume. Should the line(a) not be rupalrcd,
rcstorcd, or othenrr{Ee operatlonal by that flme, please nofffy ldaho Porar lmmedhtely
so that the pmperanangements can be made.
Donovan E. Walker
cc: Greg Adams (by +mat)
Slnceyely,
First Amendment to
Power Purchase Agreement Between
KEC and Avista
Atrgust 21,2014
Kootenai Electric Cooperative
Attn: Doug Elliot
2451W. Dakota Ave
P.O. Box 276
Hayden, ID 83835-0278
Re:First Anrendment to the Porver I'urchase Agteement Betrveen I(ootenai
Electric Cooperativc and Avista Corporation
Dear Mr. Elliot:
I(ootenai Electric Cooperative, lnc. ("Seller") and Avista Corporation ("Avista"),
referred to herein individually as a'?arty" and collectively as the "Palties," entercd into that
ceftain Power Purchase Agreement dated August 15, 2014, ("Power Purchase Agreement")
under which Avista purchases enelgy fiorn a 3.2 MW nameplate capacity electric power
generating facility ("Facility") at the Kootenai County Solid Waste Facility near Bellgrove,
Idaho on an as-available basis. The Power Purchase Agrcemenl was filed at the the ldaho Public
Utilities Cornmission ('Commission") on August 15,2014 in Docket No. AVU-E-I4-09, and is
pending approval.
The original ternr of the Power Purchase Agreenrent ran fiom August 15,2014 to August
24,2014, which coresponds with the tiure during which Seller is unable to sell output of the
Facility to Idaho Power Company (*lPC") turder a power purchase agrcement ("IPC PPA') due
to extenuating circumstances. Avista undemtands that Seller would like to amend the Power
Purrhase Agrcement to extend the term through August 3l,20l4,which colresponds with an
updated schedule to recommence sales under the IPC PPA. Idaho Power Cornparry and Seller
have agreed to suspend the IPC PPA, and IPC has consented to Seller selling the Net Output of
the Facility to Avista ttu'ough August 31,2014. Such suspension and consent is memorialized in
Exhibit A.
The Parlies hereby agree to amend the Power Puchase Agreement to extend the term
through August 31,2014. Accordingly, the Recitals and Section 4.1 of the Power Purchase
Agreenrent arc amended to change the expiration date of'the Ternr fiorn August?4,2Al4 to
August 31, 2014. Except as exprcssly provided herein, all other terms and conditions of the
Power Purchase Agrcement remain in full fotce and effect.
I(ootenai blleclric Cooperative
August 21,2014
Page2 of?
The Parties Bgree thal this Amendrnent will be construed in accordance with Section 210 of
PURPA and other applicable laws and regulations. This Arnendment shall beconre finally effective
upon the Comrnission's apprcval of all terms and provisions herein without change or condition and
declaration that all payments to be made to Seller under the Power Purchase Agreenrent, as amended,
shall be allowed as pnrdently inounpd expenses for mtemaking puryoses. This Arnendmenl to the
Power Puchase Ageement shall, subject to such Cornrnission approval, become effective on
Augnst 24,2014, or such other date set by Conrnrission order. Upou the effective date of tlris
Amendment, this Anrendrnent shall be incorporated in the Power Puclmse Agreement and all
references to the Powq Puchase Agreement shall be deemed to bc rcfercnces lo the Power
Purchase Agreernent as amended by this Amendment.
lf the terrns set forth herein for the extension of the term of the Power Putchase
Agreenrent are acceptable, please execute below and retum an original executed copy ofthis
letter to me.
Sincercly,
,-.Sra" 4!*.,^*"*-l
Scott Kinney I
Directot', Power Supply
ACCEPTED AND AGREED'I'O:
rca ($1:'s CfD
ral-lLlDate:
Kootenai Electric Cooperative
SIffiffi*.
An IDACoRP Comoanv
DONOVAN E. WALKER
Load Coun$l
dwal [e-mail]
August 21,2014
VIA ELECTRONIC MAIL
Shawn Dolan, P.E.
Manager of Engineering
Kootenai Electric Cooperative
2451W. Dakota Ave.
Hayden, ldaho 83835
Re: Fighting Creek Landfill Gas Plant
Force Majeure Event - As Available Energy Sale to Avista
Dear Mr. Dolan:
To confirm my e-mail from yesterday, August 20, 2014,ldaho Power is willing to
extend the removal of the network resource designation for a period from Augusl24,
2014, through August 31, 2014, based upon the continuing existence of the force
majeure event previously referenced in my August 14,2014, letter.
ldaho Power will remove the network resource designation from the generation
provided by your facility pursuant to the Oregon PURPA Standard Energy Sales
Agreement ("Agreement") starting August 24, 2014, and ending August 31, 2014.
Unless othenruise set forth in writing, the network resource designation will be reinstated
on September 1, 2014, and energy deliveries and performance pursuant to our
Agreement will resume. Should the line(s) not be repaired, restored, or otherwise
operational by that time, please notify ldaho Power immediately so that the proper
arrangements can be made.
1221 W. ldaho St (83702)
P.O. Box 70
Boise, lD 83707
i r_l'c.'z-{c lL
Sonovan E. Walker
cc:Greg Adams (by e-mail)
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 21s day of August, 2014, a true and correct copy of the
within and foregoing AMENDED JOINT PETITION OF AVISTA CORPORATION AND
KOOTENAI ELECTRIC COOPERATIVE, NC. was served as shown to:
Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472W Washington
Boise ID 83702
Michael G. Andrea
Steve Silkworth
Avista Corporation
l4l I East Mission Ave., MSC-23
Spokane, WA99202
X Hand Delivery
_ U.S. Mail, postage pre-paid
_ Facsimile
Electronic Mail
_ Hand Delivery
X U.S. Mail, postage pre-paid
_ Facsimile
X Electronic Mail
By: