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HomeMy WebLinkAbout20180829Application.pdfAvista Corp. 141 1 East Mission P.O. Box 3721 Spokane. Washington 99220-0500 Telephone 5 09-489-05 00 Toll Free 800-727-9170 August 28,2018 Avw,;* r8-o? Diane Hanian Commission Secretary Idaho Public Utilities Commission 472W. Washington St. Boise, ID 83702 Attention: Ms. Diane Hanian, Commission Secretary RE: Avista Corporation Sale of Property filing pursuant to Idaho Code $ 6l-328. Dear Ms. Hanian, Pursuant to Idaho Code $ 6l-328, please find enclosed for filing an original and three copies of the "Agreement for the Purchase and Sale of the Cheney and Four Lakes Tap Lines" and the "Transfer of Ownership Agreement" between Avista Corp. ("Avista") and Bonneville Power Administration ("BPA"). Pursuant to an agreement with BPA (attached hereto as Attachment A), Avista acquired certain tap lines and easements associated with those tap lines, which are described in that agreement as the Four Lakes Tap Line and the Cheney Tap Line ("Facilities"). The purchase price for the Facilities was $0. As consideration for the Facilities, Avista transferred the Avista Hatwai 230 kV power breaker to BPA pursuant to a separate Transfer of Ownership Agreement, Contract No. 1 8TX- 1663 1 (See Attachments B - C).t This asset was selected because the Hatwai 230 kV power breaker was an oddity where an Avista owned breaker resided in a Bonneville Power Administration (BPA) substation. Given the federal reliability standards owning a power breaker in BPA's substation created burdensome compliance difficulties for both Avista and BPA. Maintenance and access to the breaker were also becoming increasingly difficult with heightening security precautions. Additionally, the power breaker at Hatwai was installed to BPA's specifications and was an Avista non-standard piece of equipment. The Facilities that Avista is acquiring are tap lines comprised of approximately 15 miles of BPA's llskv transmission assets in the Airway Heights, Washington area. The acquired assets currently reside I Concurrent with this transaction, BPA is acquiring Avista's 230kV power circuit breaker and appurtenant equipment that is located within BPA's Hatwai 500/230kV Substation. Page I of2 Y Ai,tvtsta within Avista's Balancing Authority Area, are physically and electrically separate from BPA's main transmission network, and are entirely surrounded by Avista's transmission system. The acquired assets provide transmission interconnection and load service to two of BPA's wholesale utility customers. Avista provides Network Integration Transmission Service to BPA for service to these two wholesale utility customers. Ownership and maintenance of equipment inside another entity's station has presented administrative burdens to both parties in their efforts to comply with certain NERC standards. The Transaction will simplify both parties' ability to comply with mandatory NERC reliability standards governing the operation and maintenance of Bulk Electric System equipment. The Transactions are necessary to enable both parties to better comply with mandatory reliability standards goveming maintenance of bulk electric system equipment. The Transactions eliminate Avista's ownership of an asset inside one of BPA's stations, thereby simplifuing operation and maintenance responsibilities. The Transactions are in the Public Interest In evaluating consistency with the public interest, the Commission focuses on: (a) That the transaction is consistent with the public interest; (b) That the cost of and rates for supplying service will not be increased by reason of such transaction; and (c) That the applicant for such acquisition or transfer has the bona fide intent and financial ability to operate and maintain said property in the public service. These transactions will not change rates for service, and does not raise the possibility of any rate increases for existing cost-based wholesale power sales customers or transmission customers. The only potential impact on rates is the recovery of costs and expenses of any incremental operation and maintenance ("O&M") performed by Avista on the subject facilities. Such incremental cost and expense of O&M will be offset by reduced O&M as a result of the transfer of certain facilities to BPA. Accordingly, any O&M performed on the subject facilities we believe will have a de minimis effect on rates. The Transactions also have no adverse effect on the rates for wholesale power sales. Avista makes wholesale power sales pursuant to its Commission-accepted market-based rate tariff. The Commission has concluded that such market- based rate sales do not raise any concerns about a transaction's possible adverse effects on rates. Avista respectfully requests that the Commission complete its review of this agreement and promptly notify the Company if is believes that the agreement is inconsistent with public interest. Please direct any question regarding this filing to Jennifer Smith at (509) 495-2098. P D. Ehrbar Director of Regulatory Affairs Page2 of2 1L,ru6 WrP \<&V'e I o rv, t\J '_l) ().i t\ -rn4 Contract No. 18TX- 16630 AGREEMENT FOB THE PURCHASE AND SALE OF THE CHENEY AND FOUR LAKES TAP LINES executed by the UNITED STATES OF AMERICA DEPARTMENT OF ENERGY acting by and through the BONNEVILLE POWEB ADMINISTRATION and AVISTA CORPORATION This AGREEMENT FOR THE PURCHASE AND SALE OF THE CHENEY AND FOUR I,AKES TAP LINES (Agreement) is made and entered into as of this Z3-4ay of \r '\ .., 2018, by and between AVISTA CORPORATION (Buyer) and the UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE POWER ADMINSTRATION (Seiler), under and pursuant to the powers and authority contained in the Act of August 20, 1937, (16 U.S.C. S832a), as amended, and applicable orders and regulations promulgated thereunder. Buyer and Seller are separately and jointly referred to in this Agreement as "Party" and "Parties," respectively. Subject to the following conditions, Seller agrees to sell and Buyer agrees to buy the Four Lakes Tap Line and the Cheney Tap Line, collectively referred to herein as the "Tap Lines." The Four Lakes Tap is identified as Seller's Four Lakes Tap to Buyer's Sunset-E. Colfax No. 1 115-kV line (Four Lakes Tap), approximately 5.92 miles in length. The Cheney Tap is identified as Seller's Cheney Tap to Buyer's Silver Lake-Sunset No. 1 115-kV line (Cheney Tap), approximately 9.03 miles in length. The Tap Lines are situated in portions of Sections 13 &24, Township 23 North, Range 4l East; Sections 6, 7 & 18, Township 23 North, Range 42East; Sections 7, 12, 13 & 24, Township 24 North, Range 41 East; Sections 7, 19, 30, 31, 32,33, 34, 35 & 36, Township 24 North, Range 42 East, Willamette Meridian, Spokane County, Washington, further described in Exhibit A. The Tap Lines and corresponding land rights (easements and fee) are together referred to herein as the "Property." For and in consideration of the provisions of this Agreement, Selier and Buyer agree as follows: Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 1 of23 1.PURCHASE PRICE The total purchase price is $0. Seller is transferring title to the Property to Buyer in exchange for Buyer transferring to Seller title to certain equipment pursuant to the Transfer of Ownership Agreement, Contract No. 18TX-16631. PAYMENT TERMS Not applicable. C ONI\IEYANCE INSTRUMENTS Bill of Sale for Facilities, Equipment and Fixtures Seller will seli the Tap Lines to Buyer by bill of sale (BiIl of SaIe). The form of 8il1 of Sale is substantially as shown in Exhibit A, and the facilities, equipment and fixtures are as listed and described in Exhibit A, Attachment No. 1. &)Assignment of Easements Seller shall assign to Buyer the easements associated with the Tap Lines (Assignment). The form of Assignment is substantially as shown in Exhibit B. (c)Quitclaim Deed Seller shall quitclaim fee property associated with the Tap Lines to Buyer (Quitclaim). The form of Quitclaim Deed is substantially as shown in Exhibit C. Seller shall sign and deliver the above listed instruments to Buyer upon execution of the Agreement. Seller shall record the Assignment and Quitclaim and provide the originals to Buyer upon receiving the recorded documents from the county. EFFECTIVE DATE The effective date @ffective Date) of this Agreement shall be the date on which the Iast party executes this Agreement. The Effective Date will be inserted on the first page of this Agreement when such date is determined. 2. 3. (a) 4, 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 2 of 10 Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page2 ot23 D.RISK OF LOSS; RELIABILITY STANDARDS The cost of loss or damage to the Property shall be upon Seller until the Effective Date. The cost of loss or damage to the Property shall be upon Buyer as of the Effective Date. Although titie and interest to the Property will remain with Seller until the conveyance instruments are executed, the Parties agree that the benefits and burdens of ownership, including adherence to all applicable Western Electricity Coordinating Council and North American Electric Reliability Corporation reliability standards and policies, shall pass from Seller to Buyer from and as of the Effective Date of this Agreement. AUTHORITY TO ENTER INTO AGREEMENT Buyer shall provide Seller with a written resolution adopted by its governing body showing unquali.fied approval of and authority for the President of Buyer to execute this Agreement. Each Party to this Agreement, and each individual signing on behalf of each Party, hereby represents and wanants to the other that such Party has full power and authority to enter into this Agreement and that the execution, delivery, and performance of this Agreement is fully authorized and approved, and that no further corporate approvals or consents are required to bind such Party. SUR\rEY In the event a survey ofthe Property is required, such survey shall be obtained by Buyer at its own expense. Any survey obtained or performed by Buyer, or its contractor, shall be under the direct guidance and supervision ofSeIIer, or shall be performed by Seller at the expense of Buyer. SOLD ..AS IS" Buyer agrees that the Property sold by Seller is sold on an "AS IS" basis. The Parties acknowledge that Buyer has had adequate opportunity to inspect the Property prior to the time of this Agreement. ENIVIRONMENTAL CONDI TION As of the Effective Date, Buyer shail assume sole and complete frnancial responsibility for any and all necessary costs, and perform or cause to be performed any and all necessary actions (including but not Iimited to removal, investigation, or remediation), associated with the presence of hazardous substances, contaminants, pollutants, or petroleum products which may be discovered within the area of the Property, whether or not the presence ofhazardous substances, contaminants, pollutants, or petroleum products is attributable to Seller's past ownership and operations. 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 3 of 10 6. 7 8. I Aftachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 3 of 23 10. Buyer hereby indemnifies, releases, and holds Seller harmless from any financial obligation Buyer may have relating to the environmental condition of the Property described above, including costs associated with the removal or replacement of equipment sold under this Agreement. RESERVATIONS Not applicable. CONTINGENCIES Execution of the conveyance instruments by Seller and Buyer shall be contingent upon the transfer and conveyance of that certain equipment identified in the Transfer of Ownership Agreement, Contract No. 18TX-16631. SUCCESSORS AND ASSIGNS The terms and conditions of this Agreement are binding on all successors and assigns of the Parties, and will survive the transfer of title to the Property. STANDARD PROVISIONS Amendment No amendment of this Agreement shall be of any force or effect unl.ess set forth in a written instrument signed by authorized representatives of each Party. (b)Entire Agreement This Agreement, including documents expressly incorporated by reference, constitutes the entire agreement between the Parties. It supersedes all previous communications, representations, or contracts, either written or oral, which purport to describe or embody the subject matter of this Agreement. (c)No Third Party Beneficiaries This Agreement is made and entered into for the sole benefit of the Parties, and the Parties intend that no other person or entity shall be a direct or indirect beneficiary of this Agreement. (d)Uncontrollable Forces The Parties shall not be in breach of their respective obligations to the extent the failure to fulfiIl any obligation is due to an Uncontrollable Force. "IJncontrollable Force" means an event beyond the reasonable control of, and without the fault or negligence of, the Party claiming the Uncontrollable Force, that prevents that Party from performing its contractual obligations under this Agreement and which, by exercise of that Party's reasonable care, diiigence and foresight, such Party was unable to avoid. Uncontrollable Forces include, but are not limited to: 11. 12. L3. (a) 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 4 of 10 Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 4 of 23 (1) (2) (3) strikes or work stoppage; floods, earthquakes, or other natural disasters; terrorist acts; and final orders or injunctions issued by a court or regulatory body having competent subject matter jurisdiction which the Party claiming the Uncontrollable Force, after diligent efforts, was unable to have stayed, suspended, or set aside pending review by a court sfssmpetent subject matter jurisdiction. (d) Neither the unavailability of funds or financing, nor conditions of national or local economies or markets shall be considered an Uncontrollable Force. The economic hardship of either Party shall not constitute an Uncontrollable Force. Nothing contained in this provision shall be construed to require either Party to settle any strike or Iabor dispute in which it may be involved. If an Uncontrollable Force prevents a Party from performing any of its obligations under this Agreement, such Party shall: (1) immediately notifu the other Party of such Uncontrollable Force by any means practicable and confirm such notice in writing as soon as reasonably practicable; (2) use its best efforts to mitigate the effects of such Uncontrollable Force, remedy its inability to perform, and resume full performance of its obligation hereunder as soon as reasonably practicable; (3) keep the other Party apprised ofsuch efforts on an ongoing basis; and (4) provide written notice of the resumption of performance. Written notices sent under this section must comply with section 14, Notices. Waiver No waiver of any provision or breach of this Agreement shall be effective unless such waiver is in writing and signed by the waiving Party, and any such waiver shall not be deemed a waiver of any other provision of this Agreement or any other breach of this Agreement. 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 5 of 10 Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 5 of 23 \4. 15 16. t7. NOTICES Any notice or other communication related to this Agreement shall be delivered in person, or with proof of receipt by email, facsimile, First Class Mail or overnight delivery service. Notices are effective on the date received. Either Party may change the contact information by providing notice of such change to the following person and address: To Avista Corporation:To Bonneville Power Administration 1411 East Mission Avenue Spokane, WA 992A2-2600 Attention: Jeff SchlectTitle: Senior Manager, FERC Policy and Transmission Services Phone: (509) 495-8856 Fax: (509) 495-4851 Email: Jeff.schlect@avistacorp.com a Exhibit A Exhibit A, Attachment No. 1 Attention: Transmission Account Executive for Avista Corporation - TSE/TPP-2 Phone: (360) 619-6016Fax: (360) 619-6940 Email: txsalescontracts@,bp a. sov BilI of Sale Cheney and Four Lakes Tap Lines, Bonneville Power Administration Equipment to be Released to Avista Corporation First Class Mail: Bonneville Power Administration P.O. Box 61409 Vancouver, WA 98666 Overnight Delivery Service: Bonneville Power Administration 905 NE I1th Avenue Portland, OR 97232 ADDITIONAL DOCUMENTS Seller and Buyer agree to execute such additional documents, including escrow instructions, as may be reasonable and necessary to carry out the provisions of this Agreement. GOVERNING LAW Interpretation of this Agreement shall be governed by Federal law, where applicable. Where Federal law is not applicable, this Agreement shall be governed by the laws of the State of Washington. EXHIBITS All exhibits attached are hereby incorporated and made a part of this Agreement by reference. 18TX- i6630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 6 of 10 Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 6 of 23 a Exhibit B Exhibit No. 1 to Exhibit B a Exhibit C Assignment of Easements Land Rights Transferred from Bonneville Power Administration to Avista Corporation Quitclaim Deed 18.SIGNATURES This Agreement may be executed in several counterparts, aII of which taken together will constitute one single agreement. The Parties have executed this Agreement as of the last date indicated below. 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 7 of 10 Attachment A - Cheney-Four Lakes Purchase and Sale Agreement PageT ol 23 ISELLERI Dated,r,* l9*, "r 2018 UNITED STATES OF Department of Energy Bonneville Power Administration f. Angela De Senior Transmission Account Executive SaIes CA U^n-By: Date STATE OF WASHINGTON County of Clark On this day personally appeared before me Angela DeClerck, known to me to be the Customer Account Executive Transmission Sales, Bonneville Power Administration, who subscribed to and executed the within and foregoing instrument and acknowledged that she signed the same as her free and voluntary act and deed for the uses and purposes therein mentioned. GI\tsN und.er my hand and ofEcial seal this lqa day of -lt rl. ,2018. AOELLE L HARRIS NOTARYPUBLIC Stetc of Wrchlngton MyCommlsclon ExPlres JulY7,2O21 Notary Public for State of Washington County of Clark dr'\v'vr:r ) ) ) ss: 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 8 of 10 Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 8 of 23 (1^l^, t't )a ru0 My Commission Print Name ERI By: Michael J Real Property Date r STATE OF OREGON ) ) ss: County of Multnomah ) On this day personally appeared before me Mike DeKlyen, known to me to be the Realty Specialist, Real Property Services, Bonnevilie Power Administration, who subscribed to and executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GNEN und.er my hand and offieial seal this 23"1 d"y of -}r[Y , 2018. t^i :i\*-q,a )rr-Pt-t- /#* Notary Public for Stat6 of County of Multnomah LltlMy Commission Print Name t",r.J..\t4 s a o${on ,n A.J @ OFFICIAL STAT'P WILLIAM JOSEPH ZMMERMAN NOTARY PUBUC.OREGON coMMlsstoN No. 936201 2019MY C0Ml,llSSl0tl EXPIRES 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and SaIe ofthe Cheney and Four Lakes Tap Lines Page 9 of 10 Aftachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 9 of 23 IBTIyERI A\'ISTA CORPORATION Dennis Vermillion, President, Avista Corporation By /9 Date STATE OF WASHTNGTON ) ) ss: County ofSpokane ) On this day personally appeared before me Dennis Vermillion, known to me to be the President, Avista Corporation, who subscribed to and executed the within and foregoing instrument and acknowledged that he/she signed the same as his/her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and ofEcial seal this telV day of 2018 EDE Notary Public for State of Washington County of Spokane l0TAR)z My Print Name Pueutc Op ,rarJll 1l 18TX- 16630, Avista Corporation BPA Case No. 20150101 Agreement for the Purchase and Sale ofthe Cheney and Four Lakes Tap Lines Page 10 of l0 Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 10 of23 t1cv,d . (?/l+/tt a-t /0'17 a*-, vl u rr-/ t y . Ctrkl EXHIBIT A BILL OF SALE The UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNE\r{LLE POWER ADMINSTRATION (Seller) does hereby sell to AWSTA CORPORATION (Buyer) and its assigns, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the faciiities, equipment and fixtures of the Four Lakes Tap to Buyer's Sunset-E. Colfax No. 1 115-kV }ine (Four Lakes Tap) and the Cheney Tap to Buyer's Silver Lake-Sunset No. 1 115-kV line (Cheney Tap), collectively referred to herein as the "Tap Lines." The Tap Lines are located in in portions of Sections 13 & 24, Township 23 North, Range 41 East; Sections 6, 7 & 18, Township 23 North, Range 4?East; Sections 'i, L2, L3 & 24, Township 24 North, Range 41 East; Sections 7, 19, 30, 31,32,33,34,35 & 36, Township 24 North, Range 4?East, Willamette Meridian, Spokane County, Washington. The facilities and fixtures sold in this agreement are described in Exhibit A. Attachment No.1, attached herein and made a part hereof. Seller and Buyer have entered into an Agreement for the Purchase and Sale of the Cheney and Four Lakes Tap Lines (Agreement) dated 23 ,2018. AII terms and conditions of the Agreement are incorporated nGfuv *is reference. The facilities, equipment and fixtures described in Exhibit A, Attachment No. 1, were assigned for disposal pursuant to authority contained in the Act of August 20, 1937 (16 U.S.C. $ 832a), as amended, and applicable orders and regulations promulgated thereunder. Buyer understands and agrees that the Tap Lines are being conveyed "AS-IS" and without warranties of any kind. Seller disclaims all implied or express warranties, including, without limitation, warranties of fitness or merchantability. 18TX- 16630, Avista Corporation Case No. 20150101 Exhibit A BiIl of Sale Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 1 of 3 Page 11 of23 /lcv,a{. to/t+/tS a-f /A'/Tarnnotaf {x.O, The conveyance of the 1'ap Lines shall be efI'ective upon the last signature of the Parties below. Dated this 7) day of UNITED STATES OF AMERICA Department of Energv Bonneville tion 2018. r \{ichael J Realty Specialist, Real Property Services STATE OF OREGON ) ) ss: )County of Multnomah On this day personally appeared before me Mike DeKIyen, known to me to be the Realty Specialist, Real Property Services, Bonnevi.lle Power Administration, who subscribed to and executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GI\aEN under rny hand and official seal tt is }jd day of "-\,-, tf 2018. Notary Public State of 2019 County of Multnomah My Commission expires Print Name \Aca F* ht ,q, \ bQ',Jut I2N 18TX- 16630. Avista Corporation Case No. 20150101 Exhibit A Bill of Sale Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 2 of 3 Page 12 ot 23 ( t1crd. t/t+/x lf /0:lA*,, 1,0'- frc/ tx 67n Accepted By: AVISTA CORPORATION Dated this _ day of 2018. Date €,2018 Dennis Vermiilion, President Avista Corporation STATE OF WASHINGTON County of Spokane On this day personally appeared before me Dennis Vermillion, known to me to be the President, Avista Corporation. who subscribed to and executed the within and foregoing instrument and acknowledged that he/she signed the same as hislher free and voluntary act and deed for the uses and purposes therein mentioned. GI\.IEN under my hand and official seal thi" lZ' j 'day of -b, l-itt^- ! ,L t- <i-l ) ) ss: ) L,l-t .tt <-, 2018 tllll EDE Notary Public for State of Washington County of Spokane lJo$tg0TAR), PUBLIC My Com Print Name ,r0a- iSTX- 16630. Avista Corporation Case No. 20150101 Exhibit A Bill of Sale Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 3 of 3 Page 13 of23 By: hCl'd.. b/l+/lY *T lo r t arn n^- rzet L-x ' O/r) Location Position Dispatch No.Manufacturer Year Installed Irour l,akes Substation I I1l KY Silver Lake Tap Il. r ?29 Pennsl'lvania Transfbrmer TW-2 r 971 Irour l,akcs Substation I 15 K\'Sunset-Colf'nx 1]-l 730 Pennsl'lvania Tlansfilrmer'I\\'-2 l 97l Irour Lakcs Substat'ion I l5 K\Chcncl'Tap I]-t 731 Pcnnsl'lvania 'Iransfrrrmer TV\'-2 I97r Four l,akes Substation I 15 K\Silver l,akc Tap 70n3 l'our L,akes Substation itb XY Sunset-C,olfax 708.1 I.irur Lakos SubstationllSK\'Chencl''l'ap 70ti5 Chcnc'1'Tap to Silver Lake-Sunsct l1;-r kV linc STII 1/2 R-l732 ,\llis Chalmcrs I97t Four l.akcs Tap to Sunset-Flast Colfax I 15 kY linc STR I/2 I1-239 Pacific Illectrit:I 052 EXHIBIT A, ATTACHMENT NO. 1 CHENEY AND FOUR LAKES TAP LINES, BONNEVILLE POWER ADMINISTRATION EQUIPMENT TO RELEASE TO AVISTA CORPORATION 18TX-16630, Avista Corporation Page 1 of 2 Case No. 20150f01 Exhibit A, Attachment No. 1 Cheney and Four Lakes Tap Lines. Bonneville Power Administration Equipment to Release to Avista Corporation Attachment A - e heney-Four Lakes Purchase and Sale Agreement Page'14 ot 23 Quantitv BPA Equip. NumbersDescription Position Age of Equipment Cheney Tap Disconnect S*'.,1 1 5k\-. Group Operated, 1 600A lea D09r66 B-171t2 1971 I']Ol,E Vr"lTH CROSSARIU/GU\'l,ump CHII\'1'-S]SU I 971 I'OI-E \\'1TH CItOSS.{R]\{/GUY Lurnp CHTJYT.S]SU 19i2 POLBS & FIXTURBS, POI,l,ump CHEYT.SISU 2{t02 I)OI,E \\1TH CROSS,\RI1/GU\'CHD\'T.S]SU 201 1 POLE \\'ITH CROSSAR]\'GU\'Lump CHEYT.SISU 20i { OH CONDU CTOR/I,! NI' H]t])\\'R CHT]YT-S]SU I 97I OH CONDUCTOR/],INE HRD\\'R CHE)'T.SISU 19i2 OH CONDUCTOR/],INE H]tI)\\'R CHEYT-SISU 201 I OHG\\' & Counterpoise, Contirruous, u'/.\r'g Ctr I)oise 0.8 mile CHIi)'T.SISU I 971 Four Lakes Tap Disconnect Ss'.,1 l5k\', Group Operated,l600A lea D0.t20u Il-239 I {)ir2 I'OI,E \I'ITH CITOSSARMICU\Lump FOI,}iT-SUDC l 953 I'OLE \A'ITH CROSSAR]\,I/GU\Lump T.OI,KT.SUIJC l97ll POI,E \\'ITH CROSSARI\I/GUI l,ump IiOI,KT.SUEC l 9u0 POLE \\ ITH CIIOSSARI\1/GTI\Lump t,'ot,K1'-sutic lgtJ.l POLE \\'ITH CROSSARII/GU\Lump FOI,IiT-SUEC l 989 POI,fi \\'ITH CROSSARIT/GU\Lump I 902]..Oi,IiT.SUEC Lump],OI,E \\'ITH CROSS,\RI\l/GLIY T.OLKT.SLTEC 200r] POLF] \\'ITH CROSSARIU/GU\'Lump }.OL}iT.SUEC 200u I'OI,E WITH C}IOSSAR]\4/G U)'Lurnp rOL}i?.SUEC 20t 0 LumpPOLE \\'ITH CROSSAITIYGU\'}.O],KT.SUEC 2011 l,umpOH CONI)U C']'O]I/I,] Nli H ITI)WR l'ot-ti't'-sLTFlc 201it OH CONI)UCTOR/I,INiJ HITD\l'R 9il.777lnfi ITOI,Kl'.SUEC r 953 OH CONDUCTOIT/],INE H]TD\\'IT I.'OI,K']'.SLTHC 201 5 O\'EITH ]IAD GROUNI) \\'IRI'S IIOJ.KT.SUHC I 9;-rll Four Lakes Substation I)isconncet Su'.,I I5k\'. Group Opcrated.(i00-{Ica I)002 t I B-tT2!)t 97l lca D02{t.t I B-t ?;to 1 971I)isconncct Su'.,1 I5k\'. Group Oporatcd,(i(X)-{ I)isconnect Su,.. I I5k\', Group Operated.600A lea l)0213r.t Il- I 7;ll I 971 18TX-16630. Avista Corporation Page 2 of 2 Case No. 20150101 Exhibit A, Attachment No. 1 Cheney and Four Lakes Tap Lines. Bonneville Power Administration Equipment to Release to Avista Corporation Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 1 5 of 23 Stcv'd-. b/ /r/l L.f /o't t /ur1 m ^. ret Cx (5rr ASSIGNMENT OT EASEMENTS AFTER RECORDING, RETURN TO Bonneville Power Administration TERP-3 P.O. BOX 3621" PORTLAND, OR 97 208-9621 Legal description: A portion of Sections 13 & 24, Township 23 North, Range 41 East; Sections 6, 7 & 18, Township 23 North, Range 42 East; Sections 7, 12, 13 & 24, Township 24 North, Range 41 East; Sections 7, 19,30, 31, 32, 33, 34, 35 & 36, Township 24 North, Range 42 East, WM., Spokane County, Washington, as described in Exhibit A BPA Lead Tract No.: CY-T-1-A-1 ASSIGNMENT OF EASEMENTS This ASSIGNMENT OF EASEMENTS ("Assignment") is made and entered into, by and between the UNITED STATES OF AMERICA ("the United States" or "Assignor") and A\TISTA CORPORATION ("Avista" or "Assignee") and its assigns. The United States is herein assigning easements utilized by the Department of Energy, Bonneville Power Administration ("BPA"). The easements assigned herein are associated with BPA's rights-of-way for the Cheney Tap to Avista's Silver Lake-Sunset No. 1 115-kV line ("Cheney Tap") and the Four Lakes Tap to Avista's Sunset-E. Colfax No. 1 115-kV ("Four Lakes Tap"). For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the United State and Avista agree as follows: Easements. The easements listed in Exhibit 1, attached hereto and by this reference made a part hereof, are together referred to as "the Easements." Assisnment of Easements. The United States hereby assigns the Easements described above to Avista. 18TX- 16330. Avista Corporation Case No. 20150101 Exhibit B Assignment of Easements Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page I of4 Page '16 of 23 Assumption of Obligations. Avista hereby accepts the foregoing assignrnent of Easements and assumes the Easement obligations of the United States. Warranty of Capacitv. The United States represents and warrants that it has full authority to enter into this Agreement. and to make the assignments provided for herein. Assignor and Assignee have entered into an AGREEMENT FOR THE PURCILA.SE AND SALE OF THE CHENEY AND FOUR LAKES TAP LINES ("Agreement") dated 2018. All terms and conditions of the Agreement are incorporated herein by this reference. The Easements were assigned for disposal pursuant to authority contained in the Act of August 20, 1937 (16 U.S.C. $ 832a), as amended, and applicable orders and regulations promuigated thereunder. \,,\., 23 18TX- 16330, Avista Corporation Case No. 20150101 Exhibit B Assignment of Easements Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 2 of 4 Page 17 of 23 l'tc-v,d. k/14/r? # /a;tlar-, v-ia_ fd€x. brrt UNITED STATES OF AMERICA Department of Energy Bonnevilie Power Adrninistration By Realty Real J 2018. Services STATE OF OREGON County of Multnomah ) ) ss: ) On this day personally appeared before me Mike DeKIyen, known to me to be the Realty Specialist, Real Property Services, Bonneville Power Administration, who subscribed to and executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GI\IEN under my hand and official seal this 2 3 day of - l. ,\Y 2018. @ OFFICIAI STAI,IP WLLIATil JOSEPH ZMMERMAN NOTARY PUBI.IG'OBEGON coMMrssloN No. 93620t MY COMMISSIOII EXPIRES FEERUARY 09, 201 9 Notary Public State County of Multnomah My Commission expires Print Name tr.r . \\' ,r.. fl*.to,".rtrtlf tjq -|..--dt {-'r-tr< , )rrf 18TX- 16330, Avista Corporation Case No. 20150101 Exhibit B Assignment of Easements Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 3of4 Page 18 of23 Dated this 7 9 day otJ$-, 'l4cv,d- . b l t4 lt g et / a' 11 a.m vt 0-, f.d €x . (trr, Accepted By: AVISTA CORPORATION Dated this - day of , 2018. By el>2018 Dennis Vermillion, President Avista Corporation Date STATE OF WASHINGTON County of Spokane On this da-v personally appeared before me Dennis Vermillion, known to me to be the President, Avista Corporation, u,ho subscribed to and executed the within and foregoing instrument and acknowledged that heishe signed the same as his/her free and voluntary act and deed for the uses and purposes therein mentioned. GI\EN under my hand and official seal thl. /-ll' ' dry of ';it' t t-<*2018 ) )ss ) I -!){.L te of Wr q' Notary Public for Sta County of Spokane My Print Name 18TX- 16330. Avista Corporation Case No. 20150101 Exhibit B Assignment of Easements Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 4 of I Page 19 of23 tlcr'c(. bll4lts Lf lo:t-lam v1 ^)F.J Ex. br-l EXHIBIT 1, TO EXHIBIT B LAND RIGHTS TRANSFERRED FROM BPA TO A\ISTA CORPORATION Cheney Tap to Four Lakes Tap to WWP East Colfax-Spokane Tract lD Auditor's File Nos Recording Filing lnfo Filing Dates CY-T-1-A-1 Vol 46 Page 1433,4542t9 October 17,1969 CY-T-1-A-1R1 Vol 93 Page 647,555473 June 15, 1971 CY-T-2-A-2 Vol 44 Page 1983,450731 September 29,1969 CY-T-2-A-3 Vol 44 Page 1983,450731 September 29,1969 CY-T-2-A-5 Vol 44 Page t983,450731 September 29,1969 CY-T-2-A-6 Vol 44 Page 1983,450731 September 29,1969 CY-T-2-A-4 Vol 44 Page 1835,450628 September 26,1969 CY-T-2-A-7 Vol 42 Page 8t, 444294 August 20,7969 CY-T-3-A-8 Vol 68 Page 713, 503065 August 7, t969 CY-T-3-A-10 Vol 68 Page 713, 503056 August 7,1969 CY-T-3-A-9 Vol 63 Page 1518,492216 October 16,1969 CY-T-3-AR-0 Vol 63 Page 1518,49221.6 October 16, 1969 CY-T-3-A-9.1 Vol 50 Page 511,461689 October 3, 1969 CY-T-3-A-11 Vol 42 Page 1395,445746 August 28, t969 CY-T-3-A-12 Vol 45 Page 1639,454465 October 20,1969 CY-T-3-A-12.1 Vol 46 Page 1082,453923 October 16, 1969 CY-T-3-A-13 Vol 42 Page 84,444295 August 20, L969 CY-T-3-A-14 Vol 42 Page 1293,445584 August 27,L969 CY-T-3-A-15 Vol 42 Page 1398,445747 August 28,1969 CY-T-3-A-16 Vol 45 Page 1608,452377 October 7,1969 CY-T-3-AR-1P2 Vol 45 Page 7608, 452377 October 7,1969 CY-T-3-AR-1P4 Vol 46 Page 1886,454676 October 21,1969 Cy-T-3-A-17 Vol 43 Page 1985,448489 September 15, 1969 CY-T-3-A-18 Civil 3293, September 12,1969 CY-T-4-A-19 Civil 3303, october 2,1969 CY-T-3-AR-1P3 Civil 3303, october 2, L969 CY-T-4-A-20 Civil 3303, october 2,1969 CY-T-4-AR-1P1 Civil 3303, October 2,1969 CY-T-4-AR-1P2 Civil 3303, October 2, L969 CY-T-4-AR-2 Civil 3303, October 2, t969 CY-T-4-AR-3P1 Civil 3303, October 2,1969 CY-T-4-AR-3P2 Civil 3303, october 2, L969 CY-T-5-A-22 Civil 3293, September 12,1969 CY-T-5-AR-1P1 Civil 3293, September t2, t969 CY-T-5-AR-2P1 Civil 3293, September 12,1969 Four Lakes Tap to Tract lD Right Type Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Right Type Easement Easement Easement Easement Easement Granting Document Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Dec. of Taking Dec. of Taking Dec. of Taking Dec. ofTaking Dec. of Taking Dec. ofTaking Dec. ofTaking Dec, ofTaking Dec. of Taking Dec. ofTaking Dec. ofTaking Dec. of Taking FL-TA.1-A.2R1 FL-TA-2-AR-1R1PA FL-TA-1-A-3.1R1 FL-TA-1.A-3R1 FL-TA-2-A-4R1 WWP Silver Lake - Sunset Easement Tracts Auditor's File Nos Recording Filing lnfo Filing Dates Vol 101 ?aget47,572AY August 30,1971 Vol 101 Pa9e147,572097 August 30,1977 Vol 103 Page 1866, 577746 September 28, L97t Vol 97 Page 1008,564551 )uly23,t97t Vol 111 Page 1156, 593487 December 21, t97t Granting Document Easement Easement Easement Easement Easement 18TX- 16630, Avista Corporation Case No. 20150101 Exhibit No. 1, to Exhibit B Page 1 of 2 Land Rishts Transfen'ed from BPA to Avista Corporation Attachment;A - Cheney-Four Lakes Purchase and Sale Agreemeht Page 20 ot 23 FL-TA.2-A-5R1 FL-TA-2.4-6R1 FL.TA-2.AR-1R1 FL-TA.2-A-6.1R1 FL-TA-2-A.6.2R1 FL.TA-2-A-7R1 FL-TA-3-A.9R1 FL-TA-3-A-10 FL.TA-3-A-11 FL-TA-4-A-12 FL-TA-s.AR-1 FL-TA-5.AR-2 FL-TA-5-A.13 FL-TA.5.A-14 FL-TA-s.A-15 Page 1031, 553741 Page 440,557360 Page 440, 557360 PaEe 434,557358 Page 437,557359 Page 330, 546698 Page 327 ,546697 Page 118, 527565 Page 797,542481 Page L401,539546 Page 1401,539546 Page 1401, 539546 Page 1553,558633 Page 1034, 553742 Page 647,555473 June7,7977 June 22, t97l )une 22,].97]. )une 22,1977 June 22, L977 April30, 1971 April30, 1971 January 5, L97A April 8, 1971 March 23, t97t March 23, 1971 March 23, 1971 June 28, 1971 June 7, t977 June 15, 1971 Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement lnstrument Dates September 23,7969 )uly 7,1971 September 9. L97t January 14, t970 September 5, 1969 September 5, 1959 September 5, 1969 September 5, 1969 June 3, 1971 June 3, 1971 June 3, 1971 June 3, 1971 June 3, 1971 April12, L972 April 12,1972 April12,1972 October 19, t97O october 77,1969 August 23,797! August 23,1977 July 23,1977 July 23, 1971 Vol 92 Vol 94 Vol 94 Vol 94 Vol 94 Vol 89 Vol 89 Vol 80 Vol 87 Vol 85 Vol 85 Vol 85 Vol 94 Vol 92 Vol 93 Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Easement Cheney Light Department Power Company Crossing Permit CY-T-5-X-20B Contract Number 14-03-09581 FL-TA-5X-158 Contract Number 14-03-29500 lnland Empire Crossing Permit(s) CY-T-l-X-1R1A Contract Number 74-03-29557 Northern Pacific RR Crossing Permits CY-T-3-X-16A Contract Number t4-03-A9764 Spokane County Board of Commissions Crossing PermitsCY-T-2-X-5A none assigned CY-T-3-X-13A none assigned CY-T-3-X-158 none assignedCY-T-4-X-20A none assigned FL-TA-1-X-1R1A none assigned FL-TA-2-X-2R1A none assigned FL-TA-2-X-2R1C none assigned FL-TA-2-X-2R1D none assignedFL-TA-5-X-14A none assigned Spokane County Approach Permits FL-TA-1-AR-1R1PA none assigned FL-TA-2-AP-1R1 none assigned FL-TA-2-AP-2R1 none assigned FL-TA-AR-5-1PA none assigned Union Pacific RR Crossing Permits CY-T-3-X-17A Contract Number 14-03-09587 US Air National Guard Crossing Permits FL-TA-3-AP-1R1 Contract Number 14-03-39555 FL-TA-3-AP-2R1 Contract Number 14-03-39555 F|-TA-3-X-3R1A Contract Number 1.4-03-29532 F|-TA-3-X-3R1B Contract Number t4-03-29532 1STX- 16630. Avista Corporation Case No. 20150101 Exhibit No. 1, to Exhibit B Page 2 of 2 Land Riehts Transferred from BPA to Avista CorporationAttachmenf-A - Cheney-Four Lakes Purchase and Sale Agreemeht Page21 ot23 ficv'd. bll+/tg at /0:l-/ arn rr'u tdEt.On m QUITCLAIM DEED AFTER RECORDING, RETURN TO Bonneville Power Administration TERP.3 P.O. BOX 3621 PORTLAND, OR 97 208-3 621 Legal description: A ponion Section 13, Township 23 North, Range 4l Eas1, Willamette Meridian, in Spokane County, Washington. BPA Tract No.: CY-T-4-A-20.1 QUITCLAIM DEED THIS DEED is made and entered into by and between the UNITED STATES OF AI\,{ERICA, acting by and through the U.S. Department of Energy, Bonneville Power Administration ("Grantor") and Avista Corporation ("Grantee"). For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor does hereby remise, release and quitclaim unto the Grantee, its successors and assigns, subject to the reservations, covenants and conditions hereinafter contained, all Grantor's right, title, interest in and to the following described parcel of land: The tract of land recorded January, 28, 1970 in Warranty Deed, VoI 53 Page 1772, Assessors No. 470126, and knorvn as BPA Tract CY-T-4-A-20.1 in the county of Spokane, in the State of Washington. CONDITIONS OF THIS CON\IEYANCE: This grant is subject to easements and reservations for public roads and highways, public utilities, railroads, pipelines and other encurnbrances of record, and also existing easements, if an1', not shown of record. This grant is subject to the terms and conditions contained in the AGREEMENT FOR THE PURCHASE AND SALE OF THE CHENEY AND FOUR LAKES TAP LINES ("Agreernent"), executed on .- \ r ,\.i 7 ? , 2018. All terms and conditions of the Agreement are incorporated helein by this ref6rence. This instrurnent does not authorize use of the propert5, described in this instrument in violation of applicable land use laws and regulations. Before signing or accepting this instrument. the person or entity acquiring title to the property should check rvith the appropriate city or county Planning Departtnent to verifu approved uses. 18TX- 16630, Avista Corporation Case No. 20150101 Exhibit C Quitclaim Deed Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 1 of2 Page22 of 23 'l4cv , d . ttl t+/ t g Lt /0: l-7 an y1 a-, l-.rl trt. (t?r) IN WI'I'NESS WH.BiH-E;U}', the Grantor. by rts duly autlronzed representatlve has executed this deed pursuant to authority contained in the Act of August 20, 1937 (16 U.S.C. $ 832a), as arnended, and applicable orders and regulations promulgated thereunder. Dated tnis Z) aavor Ju 4.. 2018. UNITED STATES OF AMERICA Department of Energ.v Bonneville Administration By Michael J. Realty Specialist, Real Property Services STATE OF OREGON ) ) ss: )County of Multnornah On this day personally appeared before me Mike DeKlyen, known to me to be the Realty Specialist, Real Property Services, Bonneville Power Administration, who subscribed to and executed the within and foregoing instrument and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GI\EN under rny hand and official seal this 23 day of 2018. Notary Public tate of County of Multnomah My Commission expires Print 5.rns \,r.J F*au, -t*t*) @ OFFICIALSTAMP WLUAM JOSEPH ZMMERMAN NOTARY PUBLIGOREGON coMMlsstoN No.93620t MY COMMISSION EXPIBEE BERI'ARY09,2019 18TX- 16630. Avista Corporation Case No.20150101 Exhibit C Quitclaim Deed Attachment A - Cheney-Four Lakes Purchase and Sale Agreement Page 2 of 2 Page 23 of 23 'l4cv'd . tt/tltf ,t /o: l-|nz-, n'o t-J A - 67h Contract No. 18TX-16631 TRANSFER OF OWNERSHIP AGREEMENT executed by the UNITED STATES OF AMERICA DEPARTMENT OF ENERGY acting by and through the BONNEVILLE POWER ADMINISTRATION and AVISTA CORPOBATION For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, AVISTA CORPORATION (Avista) does hereby transfer ownership of the substation terminal equipment listed and described in the table below (Equipment) to the UNITED STATES OF AMERICA, Department of Energy, Bonneville Power Administration (BPA). BPA and Avista are sometimes referred to individually as a "Party" and collectively as "Parties." BPA's Hatwai Substation is located in Section 13, Township 36 North, Range 5 West, Boise Meridian, Nez Perce County, Idaho, and shown on BPA's official plan drawing No. 1529008 and plot plan No. 211959. Avista and BPA have entered into Letter Agreement, Contract No. 18TX-L6632 (Letter Agreement) regarding this Equipment's transfer of ownership. All terms and conditions of the Letter Agreement are incorporated herein by this reference. BPA'S HATWAI SUBSTATION 230kV Equipment Location Position Dispatch No. Equipment type Date Installed Hatwai Substation 230 kv Bay 4 Main Bus Disconnect MB A.113 Pascor VB 3122t20t2 Hatwai Substation 230 kv Bay 4 Line Side Disconnect LS A-113 Pascor VB 9129/20L2 Hatwai Substation 230 kv Bay 4 Auxiliary Bus Disconnect AB A-113 Pascor VB 9129120t2 Hatwai Substation 230 kv Bay 4 Relays HR0530 Schweitzer 912012013 Hatwai Substation 230 kv Bay 4 Breaker A-113 0- 03765 ABB Gas Puffer 312712012 Attachment B - Hatwai PCB Sale - Transfer of Ownership Page 1 of2 t1cv'7 . t ltlf tt a,t /o:r7*,, vi u tr / €x 6v. BPA understands and agrees that the Equipment is being conveyed "AS-IS" and without warranties of any kind. Avista disclaims all implied or express warranties, including, without limitation, warranties of frtness or merchantability. This Transfer of Ownership Agreement (Agreement) may be executed in several counterparts, all of which taken together will constitute one single agreement. The Parties have executed this Agreement as of the last date indicated below. AVISTA CORPORATION UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration /)_(By: Name: Pri.nt./Type Title: By: Name: Print /Ttpe Title: Date:Date:b/,, /r s b,rn,-i ,P V.nrr'//, ; Pt", tfu*-t- Angela DeClerck Senior Transmission Account Executive Ck-r- l( >al'/, U I 18TX- 1663 1, Avista Corporation Case No. 20150101 Transfer of Ownership Agreement Attachment B - Hatwai PCB Sale - Transfer of Ownership Page 2 of 2 Page2ol2 l1Lv',a , Vl tr/t 6 (Lt lv,t ta..n vl w t 4t L_*. ct1 121 Department of Energy Bon neville Power Adm inistration P.O. Box 61409 Vancouver, WA 98666-1409 TRANSMISSION SERVICES June 7,2018 In reply refer to: TSE[PP-2 Contract No. 18TX- 16632 Letter Agreement Jeff Schlect, Senior Manager FERC, Policy and Transmission Services Avista Corporation 1411 East Mission Avenue Spokane, WA 99220-3727 Dear Mr. Schlect, By this Letter Agreement, Contract No. 18TX-16632 (Letter Agreement), the United States of America, Department of Enerry, Bonneville Power Administration (BPA) agrees to accept title to the substation terminal equipment listed and described in the table below (Equipment), frorn Avista Corporation (Avista). BPA and Avista are sometimes individually referred to herein as a "Party" and collectively as the "Parties". BPA's Hatwai Substation is located in Section 13, Township 36 North, Range 5 West, Boise Meridian, Nez Perce County, Idaho, and shown on BPA's offrcial plan drawing No. 1529008 and plot plan No. 211959. BPA'S HANYAI SUBSTATION 280kV Equipment Location Position Dispatch No.Equipment tvpe Date Installed Hatwai Substation 230 kV Bay 4 Main Bus Disconnect MB A.1T3 Pascor VB 3122120L2 Hatwai Substation 230 kV Bay 4 Line Side Disconnect LS A-T13 Pascor VB 912912012 Hatwai Substation 230 kV Bay 4 Auxiliary Bus Disconnect AB A.113 Pascor VB 912912012 Hatwai Substation 230 kV Bav 4 Relavs HRO530 Schweitzer 9l2Al20t3 Hatwai Substation 230 kV Bav 4 Breaker A-1r3 0-03765 ABB Gae Puffer 3n7DA72 Attachment C - Hatwai PCB Sale - Letter Agreement Page 'l of 5 , 1. 2. For and in consideration of the promises and conditions set forth herein, and other good and valuable consideration, the receipt and suffrciency of which are hereby acknowledged, the Parties agree to the following terms and conditions: EFFECTIVE DATE This Letter Agreement shall be effective upon signature of both Parties. RESPONSIBILITIES OF THE PARTIES Avista shall transfer ownership of the Equipment to BPA by a Transfer of Ownership Agreement, Contract No. 18TX-16631, included with this Letter Agreement for your approval and signature. The Parties agree to execute all documents necessary to implement the provisions of this Letter Agreement. (b)Upon transfer of ownership of the Equipment to BPA, Avista and BPA agree to modify the Maintenance Obligations and Ownership Agreement No. 16TX-16252, as amended, to reflect that Avista will no longer be responsible for operations and maintenance charges related to the Equipment. BPA agrees to accept the responsibility for future replacements, operation and maintenance expenses related to the Equipment. SUCCESSOBS OR ASSIGNS The terms and conditions of this Letter Agreement are binding on all successors or assigns of the Parties. CHOICE OF LAW Interpretation of this l,etter Agreement shall be governed by Federal law, where applicable. Where Federal law is not applicable, this Letter Agreement shall be governed by the laws of the State of Washington. 5. STANDARD PROVISIONS (a)Amendment No amendment of this Letter Agreement shall be of any force or effect unless set forth in a written instrument signed by authorized representatives of each Party. (b)Entire Agreement This Letter Agreement, including documents expressly incorporated by reference, constitutes the entire agreement between the Parties. It supersedes all previous communications, representations, or contracts, either written or oral, which purport to describe or embody the subject matter of this Letter Agreement. 18TX- 16632, Avista Corporation (a) 3. 4. Attachment C - Hatwai PCB Sale - Letter Agreement Page 2 of 5 3 No Third Party Benefieiaries This Letter Agreement is made and entered into for the sole benefit of the Parties, and the Parties intend that no other person or entity shall be a direct or indirect beneficiary of this Letter Agreement. Uncontrollable Forces The Parties shall not be in breach of their respective obligations to the extent the failure to fulfill any obligation is due to an Uncontrollable Force. "I-Incontrollable Force" means an event beyond the reasonable control of, and without the fault or negligence of, the Party claiming the Uncontroilable Force, that prevents that Party from performing its contractual obligations under this Agreement and which, by exercise of that Party's reasonable care, diligence and foresight, such Party was unable to avoid. Uncontrollable Forces include, but are not limited to: (1) strikes or work stoppage; (2) floods, earthquakes, or other natural disasters; terrorist acts; and (3) final orders or injunctions issued by a court or regulatory body having competent subject matter jurisdiction which the Party claiming the Uncontrollable Force, affer diligent efforts, was unable to have stayed, suspended, or set aside pending review by a eourt ofcompetent subject matter jurisdiction. Neither the unavailability of funds or financing, nor conditions of national or Iocal economies or markets shall be considered an Uncontrollable Force. The economic hardship of either Party shall not constitute an Uncontrollable Force. Nothing contained in this provision shall be construed to require either Party to settle any strike or labor dispute in which it may be involved. If an Uncontrollable Force prevents a Party from performing any of its obligations under this Letter Agreement, such Party shall: (1) immediately notifu the other Party of such Uncontrollable Force by any means practicable and confirm such notice in writing as soon as reasonably practicable; (2) use its best efforts to mitigate the effects of such Uncontrollable Force, remedy its inability to perforrn, and resume full performance of its obligation hereunder as soon as reasonably practicable; (3) keep the other Party apprised ofsuch efforts on an ongoing basis; and (4) provide written notice of the resumption of performance. Written notices sent under this section must comply with section 6, Notices. 18TX- 16632, Avista Corporation (c) (d) Attachment C - Hatwai PCB Sale - Letter Agreement Page 3 of 5 4 6 (d)Waiver No waiver of any provision or breach of this Letter Agreement shall be effective unless such waiver is in writing and signed by the waiving Party, and any such waiver shall not be deemed a waiver of any other provision of this Letter Agreement or any other breach of this Letter Agreement. NOTICES Any notice or other communication related to this Letter Agreement shall be delivered in person, or with proof of receipt by email, facsimile, First Class Mail or overnight delivery service. Notices are effective on the date received. Either Party may change the contact information by providing notice of such change to the following person and address: To Avista Corporation:To Bonneville Power Administration 1411 East Mission Avenue Spokane, WA 99202-2600 Attention: Jeff Schlect Title: Senior Manager, FERC Policy and Transmission Services Phone: (509) 495-8856 Fax: (509) 495-4851 Email: Jeff.sqltlect'g avistacorp.qgnr Attention: Transmission Account Executive for Ayista Corporation - TSE/IPP-2 Phone: (360) 619-6016 Fax: (360) 619-6940 Email: txsalescontractstr! bpa.qov First Class Mail: Bonneville Power Administration P.O. Box 61409 Vancouver, WA 98666 Overnight Delivery Serviee: Bonneville Power Administration 905 NE llth Avenue Portland, OR 97232 18TX- 16632, Avista Corporation Attachment C - Hatwai PCB Sale - Letter Agreement Page 4 of 5 llLV'L. Ull+l lY t"-e 'v ' ' '-" ' vt tp tz-et t-x.urr ) SIGNATURES This Letter Agreement may be executed in several counterparts, all of which taken together will constitute one single agreement and the Letter Agreement may be executed and delivered electronically. The Parties have executed this Letter Agreement as of the last date indicated below. If you have any questions, please contact Jennifer Gumm at (509) 822-460L or Angela DeClerck at (360) 619-6007. AVISTA COBPORATION UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration 5 7 By Name: Denruts f,V.rmill,on Title: Prcs'd4"L Date: L-13't S 18TX-16632, Avista Corporation By: Name: Title: Senior Transmission Account Executive /): Date O4/re- tq >il ( 0 I Attachment C - Hatwai PCB Sale - Letter Agreement Page 5 of 5