20181129Petition.pdf

Avista Corp.
l4l I East Mission P.O. Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
RTCTIVED
?il$ HCli 29 Al{ l0: 2l #wsf,:n
tatp.
November 28,2018
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
P O Box 83720
Boise, lD 83720-0074 Avn- E- tg . t3
RE: In the Matter of the Joint Petition of Avista Corporation and Clearwater Paper Corporation
for Approval of an Electric Service Agreement.
Enclosed for filing with the Commission is the original and seven (7) copies of Avista Corporation
and Clearwater Paper Corporation's Joint Petition and Request for Modified Procedure. Avista has
also included a CD with the files for your convenience.
Should you have any questions regarding this filing, please do not hesitate to call Joe Miller at (509)
495-4546 or me at [phone]. Thank you in advance for your assistance.
Sincerely,
0r*'"t tt^l-
Patrick Ehrbar
Director of Regulatory Affairs
Enclosures
fli:CilVED
Michael G. Andrea (ISB No. 8308)
Senior Counsel
Avista Corporation
l4l I E. Mission Avenue-MSC-17
Spokane, Washington 99202
Phone: [phone]
[e-mail]
Attorney for Avista Corporation
Michael S. Gadd
Senior Vice President & General Counsel
Clearwater Paper Corporation
601 W. Riverside Ave., Suite 1100
Spokane, Washington 99201
Phone: [phone]
IN THE MATTER OF THE JOINT
PETITION OF AVISTA CORPORATION
AND CLEARWATER PAPER
CORPORATION FOR APPROVAL OF A
POWER PURCHASE AND SALE
AGREEMENT
Peter Richardson
Richardson Adams, PLLC
505 N. 27th Street
P. O. Box 7218
Boise, Idaho 83702
Phone: [phone]
CASENO. AVU-E-I8. '3
JOINT PETITION AND
REQUEST FOR MODIFIED
PROCEDURE
il3'i 29 i1t'i l0: 28
, l."i ..-t; 'j. , *.'.!t Jlr !'U I \i I i
Attorneys for Clearwater Paper Corporation
Bf,,FORE THE IDAHO PUBLIC UTILITIES COMMISSION
Avista Corporation ("Avista") and Clearwater Paper Corporation ("Clearwater")
(Avista and Clearwater are referred to collectively as the "Parties") hereby petition the Idaho
Public Utilities Commission ("Commission" or "IPUC") for an order approving the "Power
Purchase and Sale Agreement" between Avista Corporation and Clearwater Paper
Corporation. The Power Purchase and Sale Agreement ("2018 Agreement") is dated October
30, 2018 and is attached as Exhibit l. Petitioners request that this Petition be processed under
Modified Procedure (IDAPA 31.01.01.201 through .204).
In support of this Petition, the Parties state as follows:
I
JOINT PETITION OF AVISTA AND CLEARWATER PAPER - 1
1. 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 principally engaged in the business of providing electric and natural gas service in the
states of Idaho and Washington, as well as natural gas service in the state of Oregon.
2. Clearwater is a corporation that, among other things, operates a paper
manufacturing facility located in Nez Perce County, Idaho (hereinafter referred to as the
"Facility").
3. Clearwater owns and operates a generation system at the Facility that is capable
of generating approximately 132.2 MVA of energy (the "Generation"). These generators are
Qualifying Facilities ("QF") pursuant to the Public Utility Regulatory Policies Act of 1978 and
18 C.F.R. Part292.
CURRE,NT AGREEMENT BETWEEN CLEARWATER AI\D AVISTA
4. Avista has provided electric service to the Facility for many years. Beginning
on January l, lggz,Avista purchased the Generation output from the Facility, while providing
electric service to the Facility, pursuant to a lO-year Electric Service and Purchase Agreement.
The Commission approved the 1992 Agreement in IPUC Case No. WWP-E-9I-5, Order No.
23858 on August 16,1991.
5. Beginning on July I , 2003, through a I 0-year agreement, Avista purchased the
Generation output, and provided electric service to the Facility, pursuant to a Power Purchase
and Sale Agreement (*2003 Agreement"). The Commission approved the 2003 Agreement in
IPUC Case No. AVU-E-03-07, Order No. 29418, on January 15,2004. Under the terms of
the 2003 Agreement, Avista sold to Clearwater all of its required energy and capacity at
Schedule 25P rates. Those rates changed from time to time as approved by the Commission.
Avista was also the sole purchaser of Clearwater's Generation at a price of 54292 per MWh
JOINT PETITION OF AVISTA AND CLEARWATER PAPER - 2
up to a maximum base generation amount of 543J2A MWhs. All power purchase costs paid
by Avista to Clearwater under the 2003 Agreement were directly assigned to Avista's Idaho
operations. Differences between the Clearwater power purchase expense, and a certain amount
of Clearwater retail revenue based on kWh sales equivalent to the level of Clearwater
generation, versus that included in authorized level of power supply expense, were tracked at
100% through the Power Cost Adjustment mechanism ("PQA") per Order No. 29418.
6. Beginning on July 1,2013, Avista and Cleanvater entered into a new Electric
Service Agreement ("2013 Agreement"). The 2013 Agreement was approved by the
Commission in Order No. 32841 on June 28,2013 (Case No. AW-E-I3-02). The 2013
Agreement was in effect for a five-year term, beginning July 1,2A13 and ending on June 30,
20l8,andwaslaterextendedtoJune30,202l inCaseNo.AVU-E-I5-06. Underthetermsof
the 2013 Agreement, Clearwater's Generation is metered such that Clearwater uses the
Generation to serve its load at the Facility. Clearwater purchases and receives from Avista all
of the electric power requirements at the Facility that exceed the electric power generated by
Clearwater's Generation. Avista seryes Clearwater's additional power requirements under
Avista's "Extra Large General Service To Clearwater Paper's Facility" Schedule 25P rates,
including all applicable rate adjustments.
7. Underthe 2013 Agreement all energy (kwh) consumption is billed at Schedule
25P rates. For purposes of capacity/demand ("kVA"), all kVA billed above 55,000 kVA 1"2n4
Demand Block") is billed at the current rate of $2.50 per kVA. The first 3,000 kVA are covered
under a monthly flat rate (currently $ 14,000 per month), and the next 52,000 kVA (" I't Demand
Block") are billed at the current volumetric demand rate (currently $5.00 per kVA).
8. Under the existing 2013 Agreement, any monthly difference between the actual
Clearwater power purchase expense and the amount embedded in the development of base
JOINT PETITION OF AVISTA AND CLEARWATER PAPER - 3
retail rates in a general rate case (presently $0 under this "net metering" arrangement), are
tracked through the PCA at l00Yo, similar to the accounting treatment for the 2003 Purchase
and Sale Agreement.
2018 AGREEMENT BETWEEN CLEARWATER AIID AVISTA
9. The Parties have met on a number of occasions to negotiate a new agreement
that would provide Clearwater with the opportunity to increase the value received from its
Renewable Energy Credits ("RECs") associated with its Generation. Through the give-and-
take of negotiation, the Parties have reached a new agreement ("2018 Agreement") that
produces an "end result" that the Parties believe is just and reasonable, and in the public
interest. The underlying foundation of the 2018 Agreement is to allow Clearwater the
flexibility to optimize the value of its Generation and the associated REC value, while at the
same time ensuring that the Avista and its customers are held "neutral" as to whether
Clearwater generates into its own load or sells its full energy requirements to Avista.
Under the terms of the 2018 Agreement, Avista will sell to Clearwater all of
Clearwater's required energy and capacity at the new Schedule 25P Block 2 PURPA rate of
$24.50/MWhl and would purchase all of the output from Clearwater's Generation, including
the RECs at the same PURPA rate of $24,50/MWh. The 2018 Agreement addresses the
treatment of Clearwater's RECs, and the sharing of the benefits from the sale of the RECs.
Absent another agreement between the Parties, upon termination or expiration of the 2018
Agreement priorto the expiration of the term of the 2018 Agreement, the Parties will revert
back to the terms of the 2013 Agreement such that it will generate into its own load under the
same rate structure that is in place today. In the event that the Parties revert back to the terms
I The Parties agree that the Block 2 PURPA rate will be grossed up for revenue related expenses associated with
Commission Fees in order to make the new agreement cost neutral for customers.
JOTNT PETITION OF AVISTA AND CLEARWATER PAPER - 4
of the 2013 Agreement, the 2013 Agreement shall be effective during the period of any
suspension of the 2018 Agreement or, in the case of a termination of the 201 8 Agreement until
the earlier of (i) December 31,2023, or (ii) the date the Parties enter into a new agreement
regarding the output of Clearwater's Generation.
The essential terms of the 2018 Agreement, which are interrelated and dependent upon
each other, are as follows:
(a) The term of the 2018 Agreement is four years and eleven months,
beginning on February | , 2019 and ending on Decemb er 31, 2023, Upon the effective date of
the 2018 Agreement, the 2013 Agreement will be superseded in its entirety by 2018
Agreement. To the extent that the 2018 Agreement is suspended or terminated prior to the
expiration of its term, the 2013 Agreement shall be effective during the period of any
suspension of the 2018 Agreement or, in the case of a termination of the 2018 Agreement until
the earlier of (i) December 3 1 , 2023 , or (ii) the date that the Parties enter into a new agreement
regarding the output of Clearwater's Generation. Upon expiration of the 2018 Agreement,
Clearwater and Avista may enter into a new agreement regarding the output of Clearwater's
Generation.
(b) During the term of the 2018 Agreement, Clearwater will purchase and
receive from Avista all of the electric power requirements at the Facility. Avista will serve
Clearwater's net power requirements through its "Retail" meter under Avista's existing "Extra
Large General Service To Clearwater Paper's Facility" Schedule 25P rates, including all
applicable rate adjustments, as modified from time to time by the Commission. Avista will
service all generation related energy provided by Clearwaterto Avistathrough its "Generation"
meter at the new Block 2 "PURPA" rate such that the price of energy sold to Avista is equal
JOINTPETITION OF AVISTA AND CLEARWATER PAPER.5
to the price paid for the energy delivered to Clearwater by Avista as defined below.2 A1l other
Schedule 25P Rates, Terms and Conditions would remain as currently approved, and subject
to future modification as approved by the Commission.
(c) The Parties have agreed that, consistent with present practice,
Clearwater's net retail meter load will be subject to Schedule 25P base rates as follows3: The
first 3,000 kVA would continue to be covered under a monthly flat rate of $14,000 per month,
the next 52,000 kVA would be billed at the current lst Block volumetric demand rate of $5.00
per kVA, and all remaining kVA would be billed at the current 2nd Block volumetric demand
rate of $2.50 per kVA. Under the terms of the 2018 Agreement, Avista will revise Schedule
25P to include a Block 2 PURPA energy rate for the sole purpose of capturing Clearwater's
generation load measured at the generation meter. The Block I retail energy rate will continue
to capture Clearwater's net load at the retail meter priced at the existing Schedule 25P energy
rate. The Block 2 energy rate will capture Clearwater's generation load at the generation meter
priced at the PURPA contract rate of $0.0245 cents per kwh.4 The block 2 PURPA rate
ensures that the price of energy sold to Avista is equal to the price paid for the energy delivered
to Clearwater by Avista. Clearwater and Avista understand that demand and the Block I
energy rates may change from time to time during the term of the 2018 Agreement, as approved
by the Commission. Page I of Exhibit B to the 201 8 Agreement is the draft form of Schedule
2 As a practical matter for billing purposes, all energy sold to Clearwater will flow through the "Retail" meter.
The amount of "Generation" load purchased by Avista from Clearwater, as measured at the Generation meter,
will be deducted from the total "Retail" meter load and priced at the new Schedule 25P Block 2 "PURPA" rate.
3 Base rates refer to the prices detailed on Schedule 25P which recover the Company's costs related to generation,
transmission, distribution and common costs. Base rates do not include other tariffs, such as Schedule 66 (Power
Cost Adjustment), Schedule 9l (Energy Efliciency Rider Adjustment), or any other tariffs that are added to, or
subtracted from, base rates for purposes ofdeveloping overall billing rates.
4 The Block 2 PURPA rate of $0.0245 cents per kWh includes both energy and demand related costs associated
with serving Clearwaters generation load.
JOINT PETITION OF AVISTA AND CLEARWATER PAPER - 6
25P that would be filed with the Commission prior to the Effective Date of the 2018
Agreement.
(d) Clearwater would sell the output of its Generation, including the RECs,
to Avista at the price of $24.50 per MWh ("Contract Rate"). Clearwater would no longer use
its Generation to offset its own [oad. The Contract Rate is a five-year PURPA rate that would
remain in effect for the entirety of the term of the 2018 Agreement.
(e) Avista and Clearwater have contracted with an independent third party
("Third Party") who is to provide Avista with a fixed price per REC delivered at the edge of
Avista's electric system border. The Third Pamy will sell the RECs bundled with energy into
available markets. The term of REC sales may include short-term sales, long-term sales, or a
combination of both. The Third Party will meet Avista's and Clearwater's credit requirements
and other conditions. The 201 8 Agreement is expressly conditioned on the existence of the
agreement with the Third Party. In the event that the agreement with the Third Party is
terminated, for any reason, the 2018 Agreement may be terminated and, in such case,
Clearwater will revert to the generating into its own load pursuant to the terms of the 2013
Agreement.
(0 Sales of Clearwater-related bundled RECs by Avista to the Third Party
will be based on acfual deliveries from Clearwater to Avista. All costs associated with non-
performance by the Third Party will be the sole responsibility of Clearwater, and would be
netted against any future payments from Avista to Clearwater under the 2018 Agreement.
Avista will be held-harmless from the non-perfonnance of obligations by either the Third Party
or Clearwater.
(g) Under the terms ofthe REC deal with the Third Party, I00Yo of the total
REC value from RECs associated with Clearwater's Generation will be directly assigned to
JOINT PETITION OF AVISTA AND CLEARWATER PAPER. T
the Idaho jurisdiction. Of the total REC proceeds from RECs associated with Clearwater's
Generation, Clearwater will receive 90% of the net revenue from RECs sold to the Third Party;
the remainingl0% of the net revenue from RECs sold to the Third Party will flow through the
PCA to all Idaho customers atthe 90W10% sharing. The 90o/o net benefit to Clearwater from
such REC sales will be separately credited directly to Clearwater through a monthly bill credit.
The lUYo net benefit from such REC sales for all Idaho customers will be excluded from retail
ratemaking for base retail rates, and would flow through the PCA subject to the 90%l1A%
sharing.
(h) All other negotiated terms and conditions of Clearwater's sale of energy
and RECs to Avista are contained within the 2018 Agreement.
Table No. I below summarizes the differences between the current 2013 Electric Service
sAgreement and the new 2018 Power Purchase and Sale Agreement:
10. Under the 2003 Purchase and Sale Agreement between Avista and Clearwater,
any monthly difference between the actual Clearwater power purchase expense and the amount
embedded in the development of base retail rates in a general rate case was tracked at l00o/o
through the PCA, per IPUC Order No. 29418. In addition, any change in a certain amount of
Clearwater retail revenue, based on kilowatt-hour sales equivalent to the level of Clearwater
generation, was also tracked atlAAYo through the PCA. The Commission approved similar
treatment in OrderNo, 32841 forthe 2013 Electric Service Agreement. The Parties request
the same treatment under this new 2018 Agreement.
s Consistent with the current terms of Schedule 25P, if Clearwater sells any of the output from its Generation to
any third party, thereby taking all or a larger portion of its retail load from Avista, the second demand block
(above 55,000 kVA) would no longer be applicable, and all demand would be billed at the first block rate, i.e.,
the rate per kVA charged for each kVA from 3,001 kVA to 55,000 kVA.
JOINT PETITION OF AVISTA AND CLEARWATER PAPER. 8
OTIIER PROVISIONS
ll. An integral part of Avista's and Clearwater's agreement to develop a new
Power Purchase and Sale Agreement was ensuring that the overall level of funding provided
by Clearwater administered through the other tariff rider adjustment schedules, remain at the
same level as Clearwater currently provides. Therefore, the Parties agree that the rates for
Schedule 25P that are associated with Schedule 66 (Power Cost Adjustment), Schedule 72
(Federal Tax Rebate), Schedule 9l (Energy Efficiency Rider Adjustment), and Schedule 97
(Earnings Test Rebate) will remain unchanged, and will only be applied to Block I energy
rates of Schedule 25P. In addition, all future tariff rider adjustment schedules will only be
applied to the Block I energy rates of Schedule 25P. Basing the other tariff rider adjustment
schedules on the Block 1 net retail load ensures consistency with current practice, and holds
Clearwater, and all other rate schedules "neutral" as to whether Clearwater is generating into
its own load or selling the output from its Generation to Avista. The rates under these schedules
would change overtime as approved by the Commission. Upon Commission approval of the
contract, Avista will make a "housekeeping" filing of all applicable tariff rider adjustment
schedules with clarifying language that states the rates are only applicable to the Block I
energy rates ofSchedule 25P.
12. The Parties agree that for purposes of all future proposals related to General
Rate Case filings, Cost of Service studies, Production and Transmission Ratio calculations,
and PCA rate calculations etc., "Base Revsnue" will be defined as Clearwater's "net"
generation requirements as measured through the retail meter. Removing the effects of
Clearwater's Generation will provide consistency with current practice, and hold Clearwater,
and all other rate schedules "neutral" as to whether Clearwater is generating into its own load
or selling the output from its Generation to Avista to the benefit of all customers.
JOINT PETITION OF AVISTA AND CLEARWATER PAPER - 9
WHEREFORE, Avista and Clearwater respectfully request that the Commission issue
an order:
(l) approving the 2018 Agreement, and its attached LGIA, including the following
provisions;
(2) approving that 100% of the actual Clcarwater power purchase exp€nsc will be
directly assigned to the ldaho jurisdiction and excluded from thc systcm PCA calculation.
(3) approving that any monthly diflerence between the actual Clearwater power
purchase expense and the amount embedded in the development of base retail rates in a general
rate case is tracked at l00Yo through thc PCA and that any change in a certain amount of
Clearwater retail revenue, based on kilowatt-hour sales equivalent to the level of Clearwater
generation, is also tracked at l00Yo similar to the accounting treatment under the 2003 and
2013 agreements;
(4) direct Avista to file a revised Schedule 25P, substantially in the form of that
included in Exhibit B to the 2018 Agreement, in compliance with the Commission's order
approving this Joint Petition to effectuate the terms of the 2018 Agreement; and
(5) processing this Joint Petition undcr thc rules providing for Modified Procedure.
DATED this J 7 '
day of November 2018.
Clearwater Paper Corporation Avista Corporation
"rfn*r"rM Signature:
Name:f. fu dtcdn^Name:
Date:+Date: I 1
JOINT PETITION OF AVISTA AND CLEARWATER PAPER. IO
Mclrtr / 6-
I
Section
PO\ITER PLIRCHASE A}iD SALE AGREENIENT
BETWEEN
AYISTA CORPORATION
AND
CLEAR\YATER PAPER CORPORATION
I}ipEX TO SEqTIONS
Definitions
Representations, ..
Tenn of Agreernent
Description of Project.
Porver Pulchase frorn Cleanyater bv Avista.
C)perati on o1' Pro.i ect
Porver Sale from Avista lo Clearrrater
Paynrents,
Metering,
R eneruable Energy Celti fi cates
Force lt,lajcure.
Indemnification.. .
Limitation of Liabilitl'
lnsulancc.
Dispute Resolution.. . .
i\ssignmr.'nt
No Unspecifi ed Third-Part1, Beneticiaries. .
No Transfer Rights.
Default
G o\,erln: ental Authority
Several Obligaticns .....
Implenrentation ..
Non-Waiver ......
Entirr Agreement and Amendment
Choiee of La'rv.s and Venue
Courpliance With Larvs
Notices
Exhibits
Page
3
5
6
7
I
9
l0
Itr
1l
t1
l2
l3
l4
15
t?
l7
l7
t7
i8
lg
r9
l9
l9
20
2A
20
20
2t
l.
2.
J.
4.
5.
6.
7.
8.
9.
10.
I r.
12.
13.
t4.
1s.
16,
17.
1 tt.
19.
20.
21.
11
23.
?4.
,q
26.
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28.
Pase - 1 PO\YER PURCIIASI ANI] SAI.E AGREEh{ENT BETWEEN AYISTA CORPORATIC)N AND
CTE,4.RWATER P.\I'ER CORTORAl'ION
This Power PurcJ:asc and Sale Agxeanent ('-Agreement") is enlered into by and betrveen
the CLEARWATER PAPER CORPORATION ("Cleanvater"'). of Spokane, Washineton. a
cr:4roration organized and existing under the larvs of the State of Delalvare. and the AVISTA
CORPORATION ("Avista''; of Spokane. Washington. a corporation organized and existing
under the laws of the State of Washington. hereinafter sometimes rel-ered to collectively as
"Parties" and individualll, as "Par-ty."
WITNESSETH:
WHEREAS. Clesrwater o$'us and operates a paper marrufacturing facility in Nez Percr
Connty. Idahcr. herein referred to as the "l,en,iston Plant": and
WHEREAS. Clearu'ater'owns ar:d operates four thennal electric gencrating units rvith a
cornbinsd total nar:replate capacity of I32.2 MVA {"Pro.ject'"} rs more firllv clescribed in
Exhibit E: and
\YHEREAS. sirce 20.l3. Clearwaterhas used its Project to ssn,e its lt-rad at the Len'istorr
Plaut and has purchased and received from Avista all of the electric po\\rer requirements at the
Leu,iston Plant that exce-eded the electric pou'er geueraled bi the Project under Avista's "Extra
Large General Sen'icc'l'o Cleani'ater Paper's Facilit"v" Schedule 25P rates. includiug all
applicable rate arljuslnents. pursuant to an agreement betrveen Cleanvater and Ar.ista that ivas
first approved by the Cornnrission in Order No. 31841 on June 2.3- :013 (Ca.sc No. AVU-E- l 3-
02). as amended in 201-5. ("101: Agreenrent"): and
WIIEREAS. Avista lras crrtered inlo an aeSeenient ("RE(. Agrecnrcnt"l u,itlr lVlorgan
Stanlel'('apital Group. hrc. (""$ISCG") under u{riclr Avista rvill sell and h4S('G riill purchase the
RECs (as defined heloiv) gcrrerated by the Project bundled with energ.v. For thc tenn of thc REC
Agreement. thefOl-1 Agrccmcnt u'ill be suspended. and Cleanvater u'ill selJ and Avista wili
purchase electric fower truntlled with environmcntal aftributes simultaneousll' and irr real tirne
frorn the Project begirrning on the Effective Date pursuant tr: Section 3(a) of this Agreauent: and
WHEREAS, if the REC Agreement is suspended or tenninated prior to the expiration of
the Tenn. then" unlc.ss or until other*'ise mutually agreed. frrr the period in which tire REC
Agreanent is suspended or, jn the event the REC Agreanent is tenninated for the remainder of
the Tcnn. the Parties shall revert to the 2013 Apreeurent.
WHEREAS. Clearwater and Avista are parties to an existing Large Generator
lnterconnection Agreernent {"lnterct'rnnection Agrcernenl-) AV-TRl3-0315 that provides for and
goverrs the interconnection of the Project rvith r\r'ista's electric sl'stem.
NO\\'. THEREFORE, irr consideration of the murual covenants and agrcements
hereinafter set forth. the Parlics apIree as follo*,s:
Pagc - ! PO\\'UR PLTRCHASE AND SALE AGRIEMENT BET\\/EEN A\TISTA CORPORATION.4ND
CLTAR\\I A'I'TR PAPER CORPORATION
-l'{}
(t)
r. pEFrNrTloNs
In addition to rvt'rrds dcfined elsewhere in this Agreernent as signified by initial
capitalization. whenevlr used in this Agreonent. exhihits. and attachments hereto. the temrs
below shall have the tbilowing nreanings:
(a) *2013 Agreement": shall have the meaning provided in the recitals above ,
(b) "Agreement": means this porver purchase and saie agreement including all exhibits.
attachments and modifi cations tlrereof.
(c) *'Commission": tneans the Idaho Public Lltilities Commission. or its successor
(d) '*Delivered Net Output": shall have the rneaning provided in Section -5{a) of tlris
AgTeernent.
(e)"Effective Datc": nrcans the date this Apeen:ent becomes effective pursuant to
Scction 3(a) of tbis Agreement,
"Ervironmental Attribut€s": nleans Environnrental Attributes as that lenn is deflncd in
tlie REC Agreement.
(g) "Exccss Energy" shall lravc thc meaningprnvided in Scction 5(dt of this Agreeurent.
(h) "Facilit.\'Service Po$er": means the electric energ)* generated and used h,v" thc Pnrjcct
during its operation to opcratc equipment that is auxiliarl'to prilnaq, generatirrn
equipment including. but nnt limited to. generator excitation. cooling r"-rr othcr uperalions
related to the productiori of electric energy.
{i} "FERC": means tlre Federal Energy Regulator,v Comrrissiol), Dr artv othl?r successor
agency rvith substanrially similar jurisdiction o\rer Avista Corporation.
(i) "Forced Outage": rneans any outage that either fully or pafiially curtails the electrical
r:utput of the Project caused by mechanical or electncal equipmerrt failure. plant related
structural fai lure. or unscheduled maintenance.
{k} "Good lndustry Practice": rneans any of the practices- rnethods and a<.ts engaged in or'
approved by a significant portion of the electric industry during the relevant tinre period.
or any of the practices. methods and acts which, in the exercise of reasorrab)e judgrnent in
light trf the facts knoq.n at tlie time the decision rvas rnade, could har.e heen expected to
accomplish the dcsired result at a reasonable cost consistent with good business practices.
reliability. safety and expedition. Cood lndustry Practice is not intended to be limitcd to
lhe optimum practicc. rnetlrod. or act to the exclusion of all othcrs. but rather to bc
acceptable practices, methods. or acts generally accepted in the region.
Pagc - 3 POWER PURCIIASE AND SALE AGREEMENT BETWEEN A\TISTA CORPOE- .TION AND
CLEAR\\'A1'ER PAPER CORPORAT]ON
-{g
(t)"Governmental Authoritr"'' means any t'ederal, state or local grrvcmment, political
subdivision thereof or other govemrnelrlal, reguiatory. quasi-govemmcntal, judicial.
public or starutory instrumentality, authority. body. agenc),. department. bureau. or other
entity with authority to bind a Parry at law,
(m) "Governmentrl Rules": means any law. ru1e, regulation" ordrnance. order, code. pennit.
interpretation. judgment. decree. directive. guideline. policy or similar fonn of decision
of any Governrnental Authority having the effect of law or regulation, provided that
Govemrnental Rules shall not include any enactment or ather action by Clearwater
undertaken fol the purpose of abrogating. repudiating or uni)aterally amending the
Agreernent. hul this exception does not include any powrr of eminent dornain that
Cleanvater n: ay I ara'fu I I y ex erci se notrvithstand ing this Agreenr ent.
(n) [Reserved]
{o) "Net Revenue from Sales of the Product"r mcans the grrrss rcr/enue received from flre
sale rrf thc Prrrduct les-r any costs related to tlre sale u,ith the Energy, Price and the cost of
Energy in thc RECs Agreement netting to S0. includin-e. but not lirnited to all reasonahle
transmissir.tn ard REC Agreement enforcement costs. emission factr)r true up- or r-rther
co.sls incurred by Ar.i.sta that arise fion an1'MSCG breach of the REC Agreernent.
includiug the costs associated with any Energy deiivcred to MSCC f"or rvhich MSCG has
failed to pay Ar,ista. A sar::ple calculation is provided in Exhibit C far illuslrative
purposes on1y. In llre event tJrc costs inr:uned h1, Avista associeled with salcs of the
Product exgeed the rer.enues recetved bv Avistu firrrn sales of the Prodrrct. subiect to
adjustrncnl if costs incurrcd irr one montlr due to I\4SCC non-pedonnanrl' arc Lccolerrcl
in a subscquent month" Avista u'ill hill Clearrvater tirl such costs iri excess of rct,enues
fhr the billittg perioti.
(p) "NERC": mcans the North American Eiectric Reliability Corporation or its successor
t:rganizatiorr.
(q) "Opcrafing Year": ,neans the 12-month period tiorn Janualy 1 tluuugh Decernber 3 I
(r)"Points of Deliverl'": lreans the points at which tlie Project and Avisla's eleclric s1'.stem
are connected. as showu in ExhiLrit D.
(s) "Premi$e": means the sitc uporr which the Project is ltlcated
(t)"Product": means the RECs generated by thc Projecl hundled together with energy
geirerated hy the Projcct and delivered to Avista.
(u) "Project": strall have the nreaning provided in the Recitals above and shall include the
electric generaling fuciliti,. including all eqr"ripment and $trucfurcs necessary to generate
and supply electric po\l'ff all a.t mr-rre fully described in Exhibit E.
Page- -1 PO\lrER PLTRCHASE Ai-\'D S-.\.Lh ACRIEI\{ENl I]ET\\'EEN AVISTA COR-PORATION A}rll
CLEARWATER PAP ER CORPORATION
--"{K
(t')
(r')"Qualif;'ing Facilih'": means a generating facility u,hich meets the requirernents f(lr
Qualilf ing Facility ("QF ") status under the Puhlic Utility Regulatory Policy Act of 1978
and part 29? of FERC's Regulations. 18 C.F.R. Part 292, and which has obtained
certifisation of its QF status.
1rv) "REC Agrcement" means the Trarrsaction Confinnation beEwecn Avista aud MSCG
dated Decernber 15, 2018. undff which Avista is to sell and MSCG is to buy the RECs
generaled by the Project bundled with energy, as such Trar:saction Confinnation ma.v be
amended rvith Clearwater consent frorn tirne to time. such consEnt shall not be
unreasonahl y u,i thhel d. conditioned" or d elayed.
(x)"REC Reporfing Rights": means the light to leport exclusivc ou,nership of a REC to
any agency. authority. or othgr party under any present or future domestic. intematioual.
or foreigu emissions hadiug program.
"Renervahle Enerp' Certificate' or "IIEC": means the rerrewable energy certificates
or cledits generated b1'Cleartater's Project and shall irrclud,"" allright,litle. and interesl
in and to the Environmer:tal Attributes. plus the associated REC Reporling Rights, One
Reneu,able Energv Certificate represeilts the Enviromnenlal Attributes attributabie tc tlre
generation and delir,u'y trr the Points of Dclilery of I M\\'lr of enelg_r".
(zl "Schedule 25P Base Rates": means the then-currerrt ScJredule J5P rate-s approved [:r,
the Conunission in Avisla's Idaho electric tarifl. Base Rates do not include olher hillir:g
rates that are applicable tt'r Schedule 25P. as detailcd in thc Schedule l5P taritf and as
apprcved bv the Cr)nntrission. Thc total monthlv bill for Clcanrater undcr Schedule lSP
shali be tlre total rnontlilv nretered energy usage. demand usilge (kve1. and ptimary
r,oltage discr-runt. nrultiplied h1'the applicable Comnrission approved billing rates.
(aa) "Terill": .shall har,c the rneaning provided in Section 3(a) of this Agrcemenl
(bb) "\YECC": means the lVestem Electricity Coordinating Council or its succcs.sor
organization.
2. REPRESENTATIONS
(a) Clearwater represents that it is the sole owner oithc Pnlject. Clearwater wan'arnts
and represents that: (a) Clear"water has investigated and determined that it has authority to and is
capahle of performing and rvill perfonn the obligations hereunder and has not relied upon the
adr.ice. experience or expertise of Avista in connection rvith the transactions contemplated by
this Agrecment: {tr} all prnfessionals and experts including, but not limited to. engineers"
attcnreys or accoulttal)ts. that Clearu'ater may har,e cunsulted or relied on irr undcfiaking tlte
transactions contemplated by this Agreement have been solely those of Cleanvater: {c)
Clearw.ater rvill conrply rvith ail applicable laws and regulations and shall obtain and compll'
with applicable licenses. permits and approvals in the design, construction, operation and
maintenance of the Project: and (d) the Prrrject is, arrd during the Temt of this Agreen:ent will
remain" a Qualiffing Fauility. Cleanvater's failure 1o rnaintain Qualitl,'ing Facilitv starus n'ill bc
Page - -s PO\\"ER PURCHASH ANl, SALE AGREEI,IENT BETI\'EEN A\rlST.4 CORPORAI lON AND
CLEARW ATER PAP ER CORPORAT ION
Yfi
a material breach of this Agreement. Avista resen,es the right tr: review the Project's Qualifying
Facilit.v status and associated support and compliance documents at aay time during the Tcrm of
this Agrcement. Clearu,ater further represents that. if this Agr eanent becomes e ffe ctive . this
AgSeernent is a legally binding instrumenl upon Clearrvater, and Cleanvater's signato4' is
authorized to execute the Agreairent.
{b) Clearwater rryresents and warants that tluoughout the Term of this Agreement
that: (i) the Project quali{ies and is certified by the California Energy Conrmission as an eligible
Renewable Energy Resou'ce as such term is defirred in Califonria Public Utilities Code Sectio:r
399.l? or Section 399.16. and (ii) the Product delivered to Avista is eligible to qualiff as PCCl
or PCC2 RECs under the reguironents of the California Renewable Portlhlio Standard if such
Product is delivered from the Delively Point in the REC Agreement to Califomia in accordance
w'ith the rcquireinents for PCC 1 or PCC2 RECs under the Caiif<mia Renewable Portfolio
Standard, Clearwater disciairns any obligation of perfbnnance or education with legard to the
delivery olthe Product from the Delivery Point to Califomia. To the exlent a changc in lau'
occurs aftel executiou of thjs Apeement that causes lhis representation and rl'arranl1,to be
materially t'alse or rnisleading. it shall nol be zur Event of Default if Cleanvater lias used
commercially reasonable eflorts to comply with such clrange in lau'.
(c) Avista reprcsents ti:at. if this Agreernent becr:rnes eft'ective. this Agreentent is a
le*ually binding instrument upon Avista" and Avista's signatory is authorized to execute the
Agreemcnt. Avista makes no rvarranfies. cxpressed or irnplied. regarding an1'aspect of
Cleanr,atcr's design. specilicatioris- equipment or facilities. incJuding. but nol linrited to. saf'eg'
durabilit;-. reliability. strength. capacity. adequacy or economic fcasihilin. and an1,rc\,isu'.
accepta:rce or failure to revieu'Clcan,ater-s design. spccifications. crluipment or Proiect shall
not be zur endor.senrent or a cor:finnation by Arista. Avista assunles no responsibility or
obligation rvith regard to any NERC andior \ryECC reliability standard assor'iated u'ith tirc
Projecl or the delivery of electric cnergy frorn the Prcject to the Points of Delivery.
3. TER\I OF AGREE]\IE}{T
{a) This Agreernent shall be effective on Decernber 1.5. 2018 or such olher date set by
Cornmission Order (''Effeclive Date";. and shall tenninate at 2400 hours on December 31. 2023.
unless tenninated earlier pursuant to this Agrecment, On the Effective Date and continuitig
while this Agreernent is in effect. thls Apreernent shall suspend the l0l3 Agreement. Upnn the
tcrmination or suspension oithis Agreenrent prior to December 31. 2023. the 2013 Agreement
shall come back into effect. Al1 ohligations incurred under the 2013 Agreeinetrt prior to
strspension sl:all survive until satisfied. Notwithstanding aay'thing to the contary in the X)13
Agreenent. in the evcnt that the 3013 Agreernent cornes back into effect pursuant to the lerms of
this Agreement, tbe 2013 A-creernent sball be eff'ective frrrm the date it colnes back into cfflect
until thc earlie.r of (i) Decen:ber 3 i. 1023. or (ii) the date upon which the Partics enter into a nelv
agreenrent regarding the output of the Project. Notwithstanding anl,thing in this ap:eement, this
Secticrn 3 shall survive tennirration of this Agreernent.
(b) Cleanvater and Avista shall jointly petition the Crxnmission for an rrrder
approving flris Agreemerrt, Thjs Agreemen( is conditioned uporr Commi.ssion approval of this
Page - fr POWER PURCHASE AhD SALE AGR-EEMENT BET\UEEN A!'ISTI\ CORPOI{ ,TILIN ANI)
CLEARW.C.I'F.R PAP ER CORPORATION
Y&
(1)direct as.signment to Avista's Idaho cperations of all costs paid by Avista to
Clear$'ater under this A greernent ;
t2)changes to Schedules 25P of .{r'ista's electric Tafiff (l,P.U.C No.28) as described
in Section 7 below:
(3) all diltelences hetu,een the cunent revenues and expenses a:ibedded in retail
rates" or included in tl:e authorized Porver Cost Adjustnrent ("'PCA'"1 base. and the
new Cleanvater Schedule25P revenue and purchased power expense related to
Cleanvater generation. to be lrackcd in Avista's PCA mechanism at 1009'0. or
otheru,isc reci:r.ered in full by Ar"ista througl base rates: and
an)'agreenrent or filing necessaly to irnplen:e:rt the temrs set fo:1h in Seetion l0
of this Aggecmcnt.
(c) Fnllou'ing the initial tpproval of this Agreemenl by tJre Comnrissjon. Avista shall
have the rigltt to tenninatc this Agreement by providilg Clearwater written nt'rtice of tsrtr:ir:atjon
within 120 days follou,ing any subsequent order of the Con:rnissitrn nhich disapprrx'es this
Agreenrenl. or disallon's reco\ie4' in Avista's retail rates of costs arising tiom purchase's ol'
electric power hundled u,ith enr,irr;nmcntal altrihutes pulsuanl to this Agreen:enl" lf the
Commissiort issues an ordcr that imposcs conditions that adversely afiect the financialhenefit crf
thc Agreemel'rl to either Avista or Cleanvaler. llien the udversell' afl'ectect Party rnay tcnuinatc
tlrc Agreemenl hy giving wdtten notice lo the other within 120 days of the issuance of sucir
order. If either Party exercises its ri-eht to tenninate the Agleertient pursuant 1o thjs scction- such
tennination .shall be efteclir e ten da1,s afler the date olsuch Party's notice of terminatiuu.
Within 30 da;-s of receipt of an urder frorn the Cornmission setting forth a disapproval,
disalLru'ance or adverse cottditiotts. :\vista shall noti{-v Cleanvater of sucir order and the possihlc
effects thereof.
(d) Except for the ohligation to purchase and sell electnc pou'er hrurdlcd u'ith
environmental attributes as set ftrrth herein, all obligations required to be perfonned by the
Parties are presen ed ur:til -qatisfied. without regard to the tennination or expiration of this
Agreernent rvhere so rcquired hv tsrms and corrditions of this Agreernent.
,T, DESCRIPTION OF THE PROJECT
Tlre Project consists of four steam turbirre/generators f'urther described in Exhihit E
Pagt - 7 POWI:R PtJR('tl,A.SE AND SALI ACR-EINILNT BI]I'\VI:EN AVISI A COR]ORATION AND
CLEARW A] L:R P.,\IER I'ORPORATION
(4)
YE
Agreement without material rnt-rditlcation or conditions. Clearwater rvill suppori any filings
made to the Cornmission seeking approval of,
5. POWER PI"IRqHASE FROnI CLEARWATER BY AYISTA
(a) Cleanvatev acknorvledges that Avista has entered into the REC Agreement.
attached hereto as Exhibit F. Avista and Clearwater agrec that Cleanxater sJrall sell and deliver.
and Avista shall purchase. at the Points of Delivcry tlre total amount of electric power generated
hy the Projcct bundled uith all RECs associated rvith such electric po\r'er generated by the
Project and delivered to Avista at the Poinls of Delivery ("Delivered Net Outpul"). t he Parties
understand that nr:t all electric polver generated by the Project will have RECs associated rvith
such electric power zurd. therefore" Clear'*'ater shall provide Avista such infomtatio:r as may be
reasonably necessary for Avista to determine the amount of electric powef generated by the
Project that has RECs associated with such electric power. Porver metcrs located at the Points of
Delivcry (as defined il the Interconnectior: Agreement) shall register the utility tie line energy.
Except as other*,ise cxpressll'provided in Section 5(d) of this Agreement. for the Ternr of this
Agreernent CIeatu'atcr shall sell to Avista the Delivered Net Output pursuant to the tenrrs of this
Agreement.
(b) Tlie utilitl, tie line powcr rreters shall record electric power that flows fiom and to
the Project. and from and ttr Avista's electlic s),slem. Generationporn'er rncters (as defined in the
lntcrconnection Agreernenl) shall register the energv from each Project generfllor. Alista end
Cleanvater both shall have ahe right to read and rcccivc' readings frorn the utility tie line power
nteters arrd thegcneratiorrporvermetcrs. Avista shall rcad thenteter and record the readirrgs at
Ieast trnce per inu:tlt, The Dclivered Nct Output in any monlh shall hc calculaled ba.sed on
inlomration fi'om such tneter readings f as defined iu Exhihit D). Monthly metcr ru'adings may be
adjusted h1, prorating:nctcrcd amounts to the numlter of days in such iltonth.
(c) Avista shall pav Clearwater rnonthl-y for Dslivered Net Outpul at thc ratcs set
lbrtli in Exhibit B.
(d) MSCG Failr.rre to Pert'orm
{i) If Avista iras the rigjrt under the REC Ag'eement to terminate the REC
Agreement or suspend its performance under the REC Agreernent due to I!{SCG's
Event of Default under the REC Agreement. Avista u'ill so notifo Cleann ater and
the Parties shall pror:rptly confer on u,l:ether the REC Agreenrcut should he
suspended or terminated. lf Clearwater requests thal the REC Agreernert be
terminated, Avista shall take sleps to terminate the REC Agrealent in accordanue
with the terrns olthe REC Agreement. lf Avisla has the r-ight and ahility to
terminate the REC Agreernent. but Cleanvater does not reguest that the RE('
Agreement he tenninated. Avista may suspend the REC Agreur:cnt until suclr
tinre as the issue girring rise to the right to tentinate or suspend thc REC
Agreernent has been cured. Notwithstanding the foregoing. nothirrg irerein shall
require Avista tcr terminate or suspend the REC Agreernent if, in its sole
dclennination. Avista determines that it does not have the right or ability'trr
tenninate rrr suspcnd the REC Agleement. Clcanvater shall reirnburse Avista for
an_y l'easonable costs incun'ed by Avista as a result of any suspcnsion or
Page - f{ POWER PLrR['H..1.SE A}.D SAI F AGRffMENT IIETWEEN AVISTA CORPORATIC)N AND
CLEA RW.ATER PAP HR CURPORAT]ON
YX}
tcnnination of the REC Agrcement. Clearwater is not responsible fo:'paf ing to
Av"ista any lenlination payrnent payable by haSCG under the REC AE'eeurent-
(ii) If, at any tirne during the Terrn of thjs Agreement, the REC Agreemeut is
suspended. or if the REC Agreernent is tenninated prior to the expiration of the
Term. lhen. unless or until othenr.ise mutually aEeed. for the period in rvhish the
REC Agreement is suspended or. in the event the REC Agreernent js tenninated
fbr the remainder of the Term. the 2013 Agreernent shall be in effect and tl:is
Agree.rncnt shall not be effective during any period in which the 2013 Agreernent
is in effect.
6. OPERTTION OF TROJECT
(s) Cleanvater shall operale and nraintain the Project in accordance u,ith
Covernrrental Rules and Good Industrv Practice.
(b) lnterconnection of the Project rvith Avista's electrical system shall tre grtven:ed
by the lnterccrmection Agreernent. Avisra's obligations under this Agreement are expressil'
conditioned upon the existcnce of a valid arrd eft'ective Intercomeuticrr: Agrcement. As agrced to
by'the Parties in Section 9.6.I of tlre lntcrcoruiectiur: Agrecment. Cleantaler slrall use its hest
effor1s to maintain a minimurl trrowff factor of 9591r or higher tlurrughout the tcrnr of tlts
Agrecrnent. Ar,ista shall rrot be liable {br anv loss or damage incured by Clearu'ater resullirrg
solel1' liorn ['lea:rvater-s {ailure to rnaintain a powel fbctor of 959/u or higher.
(c) Either Party nrav intenupt. suspend or cunail dclivcry. receipl or accepla:rcc of
delivery of electric po\r'cr at thc Points of Delivery. if either Partv detennines that the failure to
rlo so:
{1}May endanger arU/ persr)n or irropsrty. or either Parly's faciiities or customers. or
au1' electric .svsl('m s'ith n-hich Avista's svstem i.\ intelconnrcled:
(21 May cause. or contritrute to, afl imrnincnt significarrt disruptiori o'l'utility sen"ice
to either Party or its customers,
(3)N4ay interfere u'ith any corsructior:, installation. inspection. testing. rqrair.
replacement. inrprovenrenl, alteratiorr, modi fi cation. op eration, u se or
arairterrance ol. or addition to either Pafly's iacilities;
(4)May cause. conlrihute to. or necessilate operation of any olAvista"s hl,droelectric
projccts in violation af any license or other regulatory recluirernents; or
(5) [s contrarv to (iood Industry Practice.
A Party.shall prornptll, notil-v the other Part;- in accordance with Exhibit A of the reasons for atr.v-
such discormcction. intem:ptiorr^ suspcusion or curtailrrrent. Such Party shall use its best
reasonable eftbfis to mitigate and limit the duration of ury such disu:olnection. ir:tcmrpliott.
supen'ision or curtailment.
Prge- 9 PO\\ [R PUITCIIASL AND SALE AGRTEIi'IENT BETWEEN A\'lSTn CORPORATION A,{t)
CLE..\RW ATER P,A.P[R COR?ORAT ION
-t[)
7. POWER S,{LE FROhT A1,'ISTA TO CLEARWATER
(ai Except as provided in Secticrn s(d)(ii) of this Apeenrent or those times when the
2013 Agreement is no longer suspended by this Agreernent. Cleanvaler rvill purchase all of its
r-equu'ed energy for the Leu'istrrn Plant from Avista pursuart to Avista"s Clornmission-apprrrved
tariff, Schedule 25P. as it may be amended and approved by the Cornmission from tirne to time.
Coincident rvith the fiiing ofthis Agreernent for approval with the Commissir-rn. Avista r+'ill request
Cornmission approval to rer"ise the energy charges under Schedule 25P to be as f<rllows:
Block I Net Relail Load
Block I Generation Load
s0.044s:/k\\rh
s0.02450.,,1$,rh
The Block 2 rate rvill be grosscd up t'or revenue related e\psnsss associated with Cr:murission fecs.
Notrvithstanding the fcx'egoing. all Clear*,aier dernand shall continue to be at the rate specified in
Avista's Commission-approved tariff^ Schedule 25P. nreasured net of genelation. as it may be
atnended and approved hy the Cornmission from lime to timc.
(lr) The rates I'ur Schcdule 3-sP that arc associated \vith Schedule 66 [Pou'er Cost
Adjustnrcnt). Schedulc ?2 (Federal Tax Rcbate). Schedule 9l (Energy Efficiencl' Rider
Adjustr:renti. and Schcdulc 97 (Eumings Test Reirate) rvould rcn:ainunchanged- and n,oulcl orrll,
be applied to the Blor:k 1 Net Retail hrad enelgy rates (which is thc prcsent condition under the
currenl Electric Services Agreenrent). Nonvilhstanding t[:e forcgoin,u. the dollal an'rounts lirr
Cleanvater t'or these Sr'hcdules, and uthcr tariff schedules approvcd hy the Cournrission. shall lre
a1 tlre level rcquired [r1'Ar,ista's Cru'unri.ssion-approled tariffschedulcs as they rnav bc anrended
and approved b1, thg Cottl:rission {i'ttm linrc to time.
8. PAYhTENTS
(a) Parnrents to Clcanr'geI. Avista shall prcpare and submit to Clcarrvaler nrouthh'
statements during the Tenr based upon Delivered Nel Outpul delivered to Avista during the
previous month. Paymcnts o*'ed by Avista shall be paid no later than the tr.ventieth (20flr) day of
tlre rnonth tbllowiug the end of the rnonthly billilg pcriod or five {5) days a{ter the receipt of a
rnonthl;- statement. whichever is later. If the duc date falls on a rron-business day. then the
palment shall be due on the next busincss day.
(b) Pa_yrn_ents to Avista:_O-ffset. Avista shall prcpare and submit to Clcar*,ater a
monthly bill for electric sen'ice pror.ided pursuant to Section 7 of this Agreement. Pal.rnents
owed by Clearwater shall bc paid no later than the tu'entieth {20t}'i day of the month following
tlre end of the rnonthiy billing period or five (5 ) days after the receipt of a monthly bill.
rvhichever is later. Avista shall prepate and present a single net bill reflecting the offiet of sums
owed betwem the Parties as a result of the sale and delivery of electric po\uer during a month.
The Parll,owir:g ftrnds in accordance with the net bill shall pay the other Part;- no later than thc
trventicth 1300') rlal' uf the uronth foliorving the eird of the rnonthly billing period or f"n'ri { 5 ) days
afterthereceiptofarnonthlvstatentent-rvhicheverislater. Iftlreduedatelhllsorlanorl-
busincss dav, tlren the payrnent shall lre due on thc nexl business day.
Page - I0 PO\I,'ER PURCHASE .dNIl SALE AGR-EIN'IENT BET\\'EEII A\:ISTA CORPORATION -AND
CLEAR\\IAT}-R P.,\.PER C'(]RPOR A1 ION
u(u
(c) The Panies agree that jf either is ohligatcd to urake any paynert or refund
pursuant to this Agreemcrt or pursuant to any applicable tarift" that Party may oflset such
palnnerrt or refund amount against axy current payments due under th.is Agreernent.
(d) If a Parqv is obligated to make any payrnent to the otlrer Party undcr the terms of
this Agreement for any reason other than the sale and delivery of electrir: powel'. the Party to
rvhom payment is orved shall bill the owing Party. The owing Party shall pay thc billing Party
no later than rhe twentieth (J0tl') da1,of the month fcrlkrwing the end of the rnonthl-v billing
period or five (5) days after the receipt of a monthly statement, rvhichever is later. lf the due
date falls on a nnn-husiness day. then the payment shall be due on the next business day. If a
Pa:11, tails to pa), the entire amount of any r.urdisputcd hill by the Due Date, the other Pzu-t1, will
have the right to assess a late charge on the unpaid balance from the Due Date until paid in full.
at a rate of one percent per nrontli.
(e) ACH cr Wire Transfcr. All paFnents shall be ntade b1, ACH or rt ire lransfer.
9. NIETERING
Ir4etering. including o*nership of ttecessarry metering cquipment. shall be pursuant to the
Intcrcorulection Agreerrient. Avista shull he responsihle for any rneter readings required hr-v this
Agrcement. Mctering shall be govcmted hv the provisions of Exhibit D,
I(). RENEWABLEENERC\'CERTIFICATES
(a) AII Prorluct, iuu:ludirrg RECs, generated hv thc Proiect f'or an-y period during the
Tenn uf lhis Agreen:cnt lhat is dclivered to Avista shnll he orvrlerl h3,Avista.
(h) Avistu will sell I00 percent of the Protiuct to MSCG pursuant to the REC'
Agreement. Subject ttr suhpart (e) of this Section" Clearu,ater and Avista u,ili
give prioritl, to transactions that rield the greatest lalue for the Pruduct.
(c) Avista sliall provide Clearr+'ater a monthly report summarizing the quantifv of the
Product sold to. and the price paid by. MSCG for such Product rJuring the
imrnediately preccding rnonth. To tlre extcnt that Avista realizes any addilional
revcnue or costs fiom ary oi the Environnrental Attributes associated rvith the
Proiect. Avista rvill include in the nionthly report any sucit re\renue cr costs.
(d) Avista shall receive all payrnents lrorn the sale of tl:e Protluct to lr{SCG pursuant
to tlre RE(' Agreemelt. Clearu,ater shall receive 90 percent of all Net Rer,snue
frorn Sale.s of the Product to MSCG in accordancc' rvith this Section 10, Ar,ista
shall retain 1() percent of all Net Revenue fi'orr Sales of tle Produtt pursuant to
this Section I0 and will. suhject to Conlmissi,:n approval. florv such net revenue
thr-r-rugh the PCA. To the extent that Alista realizes any other revenuE or costs
frorn the Product associatcd rvith the Project. Ciearu,atet and Avista r,r'ill sinrilarly
slure anv such net reverrucs and costs on a 90% Clearwateri 10')o Ar,ista basis.
Avista u,ill t>ror.idc Cleanvater any arnounts due to Clezu-u,ater related to its 909rr,
Page - i 1 PQWER PLIR( HASL AND SAIE AGRLEI\{ENT IlEl \1IEEN AVISI'A CORPOIL.L1-I(IN AND
CLI,A,R\YATIR P,A-PER (1)RPOIL4TION
-0s\*J
share undcr this Section. as a credit to Clearuatcr's itemized rnonthly hill f'or
clectric senrice t'rrr the month immcdiately following any palm€nt fi'om MSCG to
Arista,
(ei Clearwater expressly aglees and acknowledges that Avista rnay sell Avisla's
eDerg]' or enr"irorunental or ot]rer attributes that are not gencrated by or associated
with the Project. sorne or all of which may be similar to the Environmenta!
Attributes and Product gencrated by or associated rvith the Project, and tlrat: (i)
Avista's ahilitl,or inahilitl,to sell such other environrnentsl or other attributes, (ii)
the quantity of such eu'u'ironnrental or other attrihutes that Avisla rnay sell. and
{iii) the price that Avista may receive for such environrnental or other attributes.
shall not be used by Clearu,ater in any,nanner. including as evidence" in any'
dispute belueen Avista zurd Cleanr.aler of Avista's abilitl'or inabilitl to sell. or
tlre pricing of. thc Eirvironmental Attributes or Product generatcd by or associated
u'ith the Pnrject. Accordingly. notlrrng herein shall be constnred as limiting
Avista's riglrt to rnarkel its environmental or other attributes that arc not generatcd
by or associated rlith thc Project on ternrs and conditions of its orvn clioosing.
Avista slrall be responsible fbr all Westem Rencu'sble Generatir-rn lntcrnnation
Systern uploads. transfers. i:nd qualified reporting cntity liurctions relatir:g to the
Plo.iect itnd sale of the Product.
h: thc evcnt t:f a change in lau' that nratcrially impacts thc lau'fuI ahiliti' of thc
Proiect t() generfllc and dcliver any Producl to Avista. tlic Parties sltnll rneet in
good faith to all*,rr,r, to ncgotiale an amendment to. irr rcplacenrenl oi. this
Agreemenl that. to thr: extcnd practical. preserving the benefits and otrligations af
each Party as prrrvidcd herein.
I1. FORCE ]\IA.IEUR[
(a) Neithcr Party shall be liable to the other Party for. or be considcred to be in
breach of or default under this Agreernent. ou account of any delay in perl'onnance due tn an,"- of
the following events. rvhich eveat or circumstarce was not artie:ipnlgd as of thc Eflective Datc
1"'Force Maier::'e",:
( I ) ,fui1' cause or condition bei'ond such Paqv's reasonable controi *'hich is not
substantially the result of such Partl''s negligence and such Pafiy' is urabL' to
oyercome by the exercise of reasonable diligence. including but not limited tol
fire. flood. earthquake. voicanic activity. wind. drougl'rt and other acts of the
elements: court order and act of civil, nrilitary or govemrnental autl'rorifu*; strike
lockout afld othel }abor disputc: riot. insurrection. sabotage or wal fedcral. state.
or othcr govemmcntal la*'s, orders, decrees. restraints. or regulations: Forced
Outagc: breakdown of or darnage to facilities or equipment: elet-trical distulhance
originating in or trarumitted through such Partv's electric svstcrn or an)' elcctric
svstern uitb t-hich such Pafi1''s system is intercomected: anl iirterruption tlf
transrnission sen icc required for the perfonnance of thjs Agreernenl that is
Page - i! PO\trER PLIRCH.{SE i\ND SAI.E AGR-EEMENI BETWEEN AVISTA ('{)RPOR-qTIO)r..\ND
CLEARih ATIR PAPER CORP0RATION
(0
(c)
=4,
excuscd b1' reason of lrorce N{a.ieure or uncontlollahle f'orces undcr a Partl's
contract with a lransnilssion sen ice provider: and, any act or omission of any
persorl or enlitl, r-rther than such Pafiy. and Pafl5"s contmclors or suppliers of any
tier or anyone acting on behalf of such Party; or
(2)Any action taken by such Par['nhich is. in &e sole judgrnent of sr,rch Party.
necessary or prudcnt to protect the operation. performance, integrity, reliability or
stability of its facilities or any electric -systenl n'ith w'hich such Partl"s eleclric
system is interconneeted, r+,hether such actions occur automatically or manuali-"-.
(b) Nothing contained in this section shall require any Party to settle any srike.
lockorrt or other labor di.spute. Il the evcnt of a Force lr'lajeure occurence. which shall affect
perfomrance under this Agreement- the non-perfonning Party shall provide the uther Party
written notice rvithin -seven (7 ) da1,s ^n.,' lJre occurrence of the Force Majeure er.ent. Suclr
notjce shall include the particulars of the occurence. as-surances that suspension of perfonlance
is of no -qreater scope and ol'no longel duration than is required by the Force lv'Iajcure and that
best efforts are heing used to remedy its inability to perfonn. The non-perfomring Parry shall
renredy the Force lr,lajerire occurrel)ce with all reasonable dispatch, The perlomring Partl, shall
not be requiled to perl-crmr or re.ilrlne pertirnnance of its obligations to the non-perfirmrir:g Partv
con'esponding to thc obligations t-r'l'the perfonning Party excused by the Forue N'lajeure
occurTgllce.
(e) Force lr4ajeure tlues ntit irrclude change.s jn tlre orvnership, occupancv. or
operation of the Pnrject or Avista if .suclt changes trceur hecause of normal business occun'cnces
u'hich inulude hut are nol linrjted to: changes in husine.ss econornis cvclcs: recessiorrs.
bankruptcies: tax lax' changes: sales of husinesses; closurc of businesses: changes in production
ievelst and changes in svstenr operations.
(d) Force }r4ajeure does nol excuse an1' Pafl.t, tron: makirrg paytients of nro:rcy due
undcr this Agreernent.
I2. INDEMNIFICATION
(a) To the fullest cxtenl peunitted by app)icable larv" Clearwater slrall defend.
indernnif;' and save irannless Avista from anv clairn (u,hether valid tir invalid), liability. loss,
expense (includir:g rcasonahle attorney fees) or damage {coilectively'. a "Loss") arising fi'om r>r
grox,ing out of injury to pelsons. including death or damage to property. u'hich may occur on
Cleanrater's elecrric s)'stcm ou its side of the Points of Delivery. Where such claim or Loss is
caused by the concurrent negligence of Cleann'ater. its agents or employees. and Avista. its agents
or en:ployees. Ciearualer shall indernriify- defend and save Avista hannless frorn all sucir Loss to
the extent that such Loss rvas causcd by tire negligence of Clearw..ater. its agents or ernplol,'ees and
in such arnounts as attrihutable to damage caused by Clearu'ater. its agerts ol empluyees. To the
fullest e.rtent pennitted bv applicable larv. Cleanuater shall also defer:d. indcmnil,v and save
hamrless Ar,"ista lrom an;- Loss arising frorn or grorving out of Cleanrater's breach of a nraterial
obligation under this Agreentent.
Page - l3 POWER PUR('IIASI: AND SALE .,\GRLLIvIENT BET\YEEN AVISTA CORPORATION ANII
CLEAR WATEIT PAP[R C(]RPOR'\TION -*{g
(b) To tlie fullest sxtent pennitted by applicable lan,. Avista shall defsid. indunrnily
and save hannless Clearw'ater from any Loss arising from or growing out of injury to psrsons.
irrcluding death. or damage to property. rvhich ]na)'occur on Avista's electric s),stenl on its side
of the Points of Dclivery. Where such claim or Loss is caused by the concurrent negligence of
Avista, its agents or ernployecs, and Clearwater" its agents or employees- Avista shall indemniS'.
defend and sat,c lrarmless Clearwater from all such Loss to the extent that such Loss was caused
by the negligence of Avista^ its agents or ernployees and in such amounts as attributable to darnage
caused by Avista, its agents or eruployees.
(e) Except (i) for claims or Losses ansing li'om a Party,'s gross negJigence. *'illful
misconduct. intentioual misconduct or fraud, 1ii) to flre extent covered by insurance required to be
carried by a Party under this Agrecment. or (iii) to the extcnt that such darnages are sufTered by a
thild-par1y ald included iu a Loss for x'hich one Par1.v is requirsd to indemnify the other under this
Agieement. ueither Parly shail be liable for any special. indirect. punitive or consequential
clamages arising frottt the construclion. installation. repair. maintenanse or operation of the
clectrical tacilities including. rrithout lirnitation. the otlrer Partl"s loss oi actual or auticil:ated
profits (othcrthan lrrss crf actual or anticipated profits included as an elErnent r:f direct damagcs).
Ioss because of shutdown. ilou-opcration. increased expense of its faciiities or opelatjons. or cosl
of capital.
(d) This Section shall not (i) negate- abridgc. or otherq,ise recluce anv right or
obligation of i:rdcmlil5'that othenvise exists. (ii) limit thc aurount or type of darnages.
cornpensation or henefits payabie b), or for Avista or aD)'of its subconlracto:'s or suppliers under
workers' contpensation acts, disabilitv benetit acts. or other enipln),ce hgnefit acts. rrr"{iii) lirnit thc
amount or t)?e crf insurancc co\icrage iequirerl by tJris Agreuncnt.
(e) Each Partr"s ohligations undcr this Sectin:r Il shall survivc'the expiration or
temrination of this Agreemcnt.
(O CLEAR1VATER AND A\IISTA SPECIFICALL}'\l.ARruNT THAT THE
TER.I\{S AND CONDITIONS OF THE FOREGOING INDEI\INITY PROVISIONS ARE THE
S{.}BJECT OF IT{UTUAL NECOTL{TION BY THE PARTTES, AND ARE SPECIFICALL}'
AND EXPR-ESSLY AGREED TO IN CONSII}ERATION OF THE ITTUTUAL BENEFITS
DERIYED UNDER THE TER]\[S OF THE AGREE]I{ENT.
13. LINTITATION OF LIABILITY
(a) Limitation of Li4bjlitv. EXCEPT AS EXPRESSLY PRO\TDED I{EREIN.
II{EITHER PARTY SI{ALL BE LIASLE U}\'DER ANY PROYISION OF TI{IS
AGREE IUENT FOR AI{Y SP E CIAL, INDIRECT, INCI DENTAL, CON SEQ UENTIAL, OR
PUn*IT[\/E DAMAGES, In*CLUDING BUT NOT LIIWTED TO LOSS OF PROIIIT.
SA\/INGS OR REVENUE. LOSS OF THE USE OF EQ[TIPMENT, COST OF CAPITAL, OR
cosT oF TEI\TPORARY EQUIPNTENT OR SERVICES, WHETHER BASED rN \ryHOLE
OR IN PART IN CONTRACT, IN TORT,INCLUDING NEGLIGENCE. STRICT
LIABILITY, OR ANY OTI{ER THEORY OF LIABILITY.
Ila-r:e - 1.1 POWER PURCIIASE AND SALI ACRIEN!ENT BETR'EEN AYISTi\ CORP0]L{flON ANI)
CL E.,\RWI\TE R PAPER ('ORPORATION
-'ls
(b) Limitation of Liabilis for WIS Parties, Notu ithstanding any other provisions
uf this Agreement. ifholh Avista and Clearwater are parties to the Agreerncnt Limiting Liability
Arnong Westem lnterconnected Systerns (WIS) Agreanent. then the WIS Agreement shall, to
the extent applicable. control their liabilities with respect to damages Io the Project, the
Interconnection facilities. or Avisla's Elcctric Svstem.
T4. INSURANCE
(a) Ipsurance. Each party shall, at its oum expense. nraintain il force thloughout tlrc
period of this Agleement" and until released by the cther Party, the fcrlloruing rninirnum
insurance coverages. rvith insurcrs authorized to do business in the State of ldal'ro:
( I l Emplot'ers' Liability artd Workers' Cl'tmpensation lnsurance proriding statutory
bencfits in accordance u'ith thc larrys and regulatious ol'the State of ldaho.
(l) General Llahilifl'. Comnrercia] General Liability Irrsurarce including prcmises
and operations. persoral injury, bload thmr property,da:nagc. hroad lbrrr lrlanket
contractual liabilit1'c(rverage (including cr)r erage for the contractual
indernnification) products and cornpieted opelations co\ierage. cor,eragc thr
cxlrlositln. co)lapse ald underground hazards. indepcndent contractoni covcmge
and a cross liatrilitl'endorsement, witli minirrum limits of Orre lv{illion Dollars
(S1.000.0t){J) pcr occurrenc'c/Onc lt4illion Dollars (S 1.000"0()0} aggregate
comhincd siuglc lirrit firl pcrsonal in-jury. brrdilf injuq,. iircluding death aud
propertl, danragc..
(3)Comprehensive Automobile Liahilitv Irtsurancc for coverage of ou.led ;rnd r:r-rn-
on'ned and liircd vehicles. trailers or serni-trailers designed for trar,el cln public
roads. rvith a niinirnu:n" conrhined single lirnit of One Million Dollars
(l;I,00{).()00) per occurrence fbr bodiil.'injury. iocluding death. and propert;v
danrage,
('1 )Excess Public Liahility.'lnsurance over and above the Employrrs' Liability
Commercial General Liability and Comprehensivc Automobile Liability
Insurance coverage. with a minirnum cornhined single limit of Ten Million
Dollars ($ 1 0"000.000) per occurrence/fen ll4illion Dollars (S I 0.000.000)
aggre8atc.
(5) The Comxrercial Cenelal Liability lnsurance. Corr:prehensive Autornobiie
lnsurance and Excess Public Liahility lnsurance poiicies sha]l narne the other
Partr-. its parent- associatcd and Affiliate companies and their respectir,c dircctors.
t-rfficers. agents. scn ants atd ernployees ("Other Party Croup") as additioual
insured. All policies shall cortain provisions u,hereby thc insurers waive all riglrts
of subrogation in accordance with the provisions ot'this Agreement against the
Other Party Group and piovidc thirty (30) Calendar Days advance rvntteu notice
tc the Other Pafiy Group prior to ariniversary date of carccllation.
Page - l5 PO\VI;R fURCHASE ,\ND .SALL AGREEMEN'I llt'l\UEEN AYISTA CORPaTR TION AI.;l)
CLEAF.WAT ER P,4} ER ('ORPOR,{TION
-{s>
(6)The Cornn: erci al C erteral Liabil ity Insurancc. Comprehensi ve Automtibil e
Liabiliry lnsurance and Exccss Public Liabiiity lnsurance policies sliall contain
provisions that specifo that the policies are primary and shall apply to such extent
without considcration for other policies separately canied and shall state lhat each
insured is provided coverage as though a separate policy had hecn issued to each"
sxcept the insurer's liability shall nr:t be increased beyond the arnounl for whjch
the insurer would have been liable had only orre insured been covercd. Each Party
shall be responsible for its respective deductibies or retentions.
(7)The Cormnerci al C eneral Liabiliry In surance. Cornprehensive A utorn obil e
Liability Insurance and Excess Puhlic Liability Insurance policies. if u,fitten crn a
Claims First Madc Basis. shall be rnaintained in full force and effect for t*,o (2)
years after tennination of this Agreemcnt, which coverage may he ir: the lbnn of
tail covcrage trr cxtended repofling period coycrage if agreed by tlre Parties,
(8)The lequiremcnts r:onfaincd lterein as to the tyres ald liniits of all insurance (o be
maintaincd by the Parlies are no1 intended tt-r and shall not in any rrarlrler- lin'rit or
qualifo ths liabilitics and obligations assunred hy tlrc Partjes under this
Agreernent.
t9)Within ten ( I t)) davs fbllowing execution of tlris Agreement. and as s()Lln as
practicable after lhe end of each fiscal year or at the reneu'al of the insurance
polic.v anrl in any cvenl s,ithin ninety (90) tlays thercafter. each Partv shall
pnl,ide certiflcation o1'ai1 insurance rec;uired in this Agreement. executed ht, cach
insurer or hv an inrthirrized represcnlativu o1'eaclr insurer.
1 10 ) I.Jotwilhstanding the ftrrcgoing. each Parly ma.v self'-insurc to meet the nrinirnum
insuriurce requireruents of Articlcs 14(aXl) tirrough {8) to the exteill it maintains a
self-i:rsuranc*progrilm: providcd thal. such Parly's senior securcd dehl is rated al
inveslnrent grade- or belter bv Standard & Poor's or N{oodr"s and that its sell'-
insurance pr(,gran nleets the n:irrimum insuralce requirements of Articles
1a(aX2) tlunugl: (8). For an_y period of tirne that a Parfy's senior sccurcd debt
is unrated bv Standard & Poor's or Moody's or is rated at less tltan invcstrnent
grade b,r.. Standard & Poor's or Moody's. such Party shall compiy u,ith tlre
insurance requirements applicable to it under Ailicles 14(a)(3) tluough (9). ln the
cvent that a Pany is permitted to seliinsure pursuant to tlus article, it shall notift
the other Partv thal it rneets thc requirements to self-insure and that its sclf-
insurance prograil meets the nrmlrnunt insurance requirements in a 1nanller
consistent with that speuified in Article 1a(aX9).
( I 1 ) The Partics aErcc to report to each othcr in writing as sclon as plactical all
accidents or occurrences resulting in iujunes to any persorl, including deatl:. and
any property darlage arising out of tltis Agreernent.
Page - 16 PO\ULR PLTRCIIi\SL AND S.'\L[ A(IREI]\{Er.N t BET'UIEEN AYIST.A (ORPOR,q II()}i ANf)
CLEAR\UA'I'E R PAPLR COR.PORJI.TION
_-('$
I5. DISPUTE RESOLUTION
Each Party shall shive to lesoh'e any and all differences during the Term of the
Agrec:rncnt. If a disputc cannot be resolved within a rcasonabie time. not to exceed thi*y days.
each Part.v shall escalate the unresolvcd dispute to a senior oftiscr-designated by eaclr such Party
lf the senior officers are not able to resolr.e the dispute rvithin ten busi:ress days of escalation.
then either Party may either agree to enter into binding arbitration to resolve the dispute or
request a hearing before the Corumission.
I6. ASSIGNIT,IENT
(a) Clearwater shall not assign its rights or delegate its duties under this Agreement
without the prior u'riflen consent of Avistu t'liich con.cent shall not be unreasonably rvitlrlrcld.
Sub-iect to the ltrregoing restrictions on assignments. tliis Ag7'eernenl shall be fully hinding uporl.
inure ltr the benefit of and be enfbrceable by the Parties and their respective successors. hcirs and
assigns.
(b) Cleani'ater shall have thc right. rvithout Avista's consert. hut n,itlr a rhini' day s
priorlrritten roticeto Avisla. to make collatelal assigrrmcnls of its rigl:ts unclet'lhis Aqrecrncrrt
to satisfl,lhe requiremenls of any develttpnrerlt. construction. or otlrcr reasonable long-tenn
Iurancirrg. A ctrllateral assi-urrnrcnt shall not constitutr a dr-legalion of Clelru'ater-s obligations
under this Agreemenl. and this AE'ecment shall not bind the ctillateral assignee. Ar:r'collateral
assignee succecding to anl, porlion of the ou,nership interest of Clcanvater sl',all bc consiclered
Cleanvalcr's successrlr in interr,'s1 and shalI thereatier be bound b1'this ABr(-enlenl.
(c) Rcimbursement of Cr-rsts. A Party u'ho receit,es a request from llre other Partv
aurecs to executc and deliver .such tJocunents as n:a1'he reastrnahll, necr""ssaru to accrrnl:li-*h urv
assignr:rcnt. transt'er. pledge or di.spositiou of rights as proridcd for in this Sectiorr 1{r. stl long as
tbe rights of the Par1y. u'hrrse receives thc requcst, are not altered. arnended. dinrinished or
oth,enlise irnpaired. and su long as the l)arty. rvho lerrdcrs ilre rcquesl. reimburses the Parl;'. rvho
receiles lhe request. l'or ali reasrrnable costs incuned in comection rvith the revicrv. cxccnlion nr
delivery of such documcnts.
17. NO UNSPECIFIED THIRI).PARTY BEryEf'tCIARIES
Except as specitically provided in tlris Agrecment. there are no third-party bcncficiaries of this
AEeemcnt. Nothing cofltained in this Agrecment is intended trr conf'er any right or interest on
an)'.ine other thzur thc Parties- and their respective successors. heirs and assigns penuitted under
Section 16.
1E. NO TRANSFER RIGHTS
Nothing in this Agreerrrent shall be eonstrued as grar:ting Clcarq'aler an.v right of acces-s.
or an) crther rights. to Avista's distribution t-rrtransnrission s1'stems.
Iagr - 17 PO\\'ER PURCII..L5E AND S.\LE ACREEMENl BEl \UELN A\rlST.{ ('(}RPORAII.JN .A.NIJ
CLT.- AR\UATER PA}EI( C'i )RPOR,\T] ON
-{\!
19. DEFAULT
(a) Al "Evenl ol'Default" shall mean. u'ith respect to a Par11, la "Detaulting Partir').
the occurrence of any of the following:
( I ) the l'ailure to rnake. when due. any paleuent required pursuant to this
Agreanent if such failure is not remedied within three (3) business days
after delivery of written notice;
{2\ aDy represerrtation or wan'anty madc by such Party herein is false or
misleading il any rnatcrial respects ,,r,hen made or rvhen deemed madc or
repcated;
(3) thc failure to perfomr any naterial corenatrt orobligation set forth in tiris
Agrcemeut (except to the extent corrstifuting a separate Event of Default)
if such tailure is not lernedied in accordance u'ith subseclion (b). belorv:
{4) such Parly hecornes Bankn:ptl or
(-5) such Partl' consolidates or arnalgamates with. or ilrergcs rvith or into. or
trattstbrs all or snbstantially all crf its assets to another entitv and. at the
tinre of sur:h consolidatiou. amalgarnation. merger or t'ansfer, thr:
resulting. .run'ivin-e or lransferee eltitl,fails to assrune all tlrc obligatious
r-'lsuch Panv urrder this Agreer"nent to u,hich it or its preclcccssor n'as a
purv b1' opcralicrn of lau or pursuant to an agreelrrett reasonahle
satisfactorv to (hc other Par1.v".
{b) ln the Er.cnt of Default. thc folloruing shaii apply:
( I ) The non-dcfaulting Party shall give u'ritterr notice to thc Dcfaulting Party
of the Event of Default in accordance with this Agreement,
(2) Except for an Event of Default thal arises liom failure to make money
pa),ments or frorn a Party becorring lrankrupt, it. after 20 days followilg
rcceipt ol'suclt notice. the Defaulting Party has not cured the Event of
Default. the non-dcfaulting Part-,- ma1,. at its option. te.rminate this
Agreement; prot'ided, ltovrever, if the defaulting Party. within such 20-day
period. collunences and thereafter proceeds u'ith all due diligencE te cure
such default, such 20-day period shall be extended up to six months after
wfitten notice to the defaulting Par1y, as may be necessary to cure the
er,enl of default with all due diligence. For an Evrmt of Def-ault that arises
frorn the thilure to make money pa).ments, tlre non-defaulting Party may.
at its optitxr- tcnninate this Agreement if the Defaulting Partl'.shall have
failed to cure the failure to pay u,ithin three (3 ) husiness rlays f'ollou'ing
recript of nolice of such failure. For an Event of Dcfault that arises from a
I'age - 1S TOWER PURCII-qSE AND SALt nGRrE\,llN'r BET\YEEN _Avls-tA CORPORATION ANl)
CLEAIi\I'AI }.R PAPEI{ CORPO RATION
*tB
Party becorning banknrpt. the non-defaulting Party niay, a1 its option.
immediately terminate this Agreernent upon notice to the Defaulting Party.
(3) Upon the Evcnt of Default and an c.xpiration of any period to cure granted
herein, the non-defaulting Party may. but has no obligation. to terminate
this Agreement cffective upon notice to the Defaulting Party and may
exercise all t-rther righls and remedies availahle to the ron-defaulting Parly
under appiicable larv. Whe,ther or not the non-defaulting Party elects to
tenninate this Agreement. it may. in addition tn other remedics provided
fiuherein, pursue such renredies as are available at Iaw or in equity
inciuding suspension of ils perfonnance so long as the Event of Defauit is
cor:tinuing and ltas not been cured,
(c) Anv rigJtt or rcmedy aflbrded to either Parlv under any provisior: of this
Agrecnrcnt on account of the breach ar default by the other Party is in addition to. and not in lieu
of, all otlrer rights r:r rcrnedies affordc'd lo such Party under any other provisit'rrrs of this
Agleeurent. hy iaw or othcru,ise un account of thc brearh ar default.
?0. C,O\TER}iNIENTALALTTHOEIT}'
This Agrceurerrt is subject to all applicable Govermnental Rules. AII Clrveilrrrlsntal
Rulcs norv or herealier in cffbct tlut arc required to he incorporatcd in agreenrcnts of this
character are by this reference incorporated in tiris Agreement.
21. SE}'ERALOBLICATI.ONS
Thc duties" ohligatirrns arrd liabilities of tlie Parties arc intended lcr hc several not joint ot
collectit'e. This Agrcement shall rrot hc interprcted or c()lxtrud to create an associittiolr. joint
veirturc or putrrerslrip hetu'cen the Parties or to irnpose an)'parulcrship obligation ot liabilit.v
upo:r eithcr Party. Each Pafi1'shall bc individually'and severail5.'liable for its orvn ubligations
under this Agreernent. Furlher. neither Party shail have afly rights, p{rrver or authority to enter-
into any agreement or urrdertaking fbr or on behalf of. to act as to be an agent or reprcsentative
ot. or to otlrenvise bind the other Parly.
22. IITPLEI\TENTATION
Each Paily shall take such action (including- but not linrited to, the execulion.
achrotvledgement and delivcry of docunrcnts) as rna)'rcascurably be requested by thc other Partr'
for the implementation or continuing performance of this Agreement-
23. NON-}'AIVER
The failure of eithr-r Part1, to insist upon or enlirrce stricl perfbmrance ht' the otiicr Partl'
of anr, provision of this Agrecrner:t or to exercise any right under this Agreement shall ltrt he
construed as A rvair,er or rr-'linquislmrent til an)'exlent of such Partl"s riglrt to assert ol rely upon
Pagc - l9 PO\['ER PURCHASL AND S,\I-E AGREEI{ENT BET\\'EEN ..\VlSf e C'ORPOL{TION ANIJ
Ct I-]ARWAT LR PAIJER C()RIIOR*{TI0N -s
rny such provisiorl or dght in that (r:'any otlter instance: rather. the same shall be and renraiu ir:
full force and etfect.
74. ENTIB.E AGREEI\{EI\IT AND AN'IENDh{ENT
This Agreerncnt together with its exhibits constitutes the entire agrecnrenl of the Parties
Irereto and supersedes and replaces any prior agreements or ulderstandings between said Parties.
entered into for the same or similar purposes. No chzurge. ameudment or modification of any
provision of this Agreement slull be valid unless set fortlr in a written amentlment to this
Aggeement signed by both Parties.
23. CHOICE OF LA\\/S-A|{D VENUE
This Agreernent shallhc construed and inlerpreted i:r accordance nith the lan's of thc
State of Iduho. Anl,action at [aw'or in equity to enftrrcc the lemrs and conditions o{this
Agleement that are not subjcct to the jurisdictiori of the Comnrission shall be brought in the
Llnited States District Coirrt fbr 1lre District of ldaho.
26. CoIIPLIANCE \+]TH LA\I'S
Both Parlies shall con'rply rvit} all applicahlc larvs and rcgulalions of govermrrental
agencies having jirri-sdiction over the Proicct arid the operntions of the Pl*ies. Clearuatc.r shall
obtairr all retluired approvals or aritl:tuization trorn goven'rnental agencies having jurisdictinn
()r'cr tiie sale rrf elc'cfric porvcr tiorn tire Fro-iect.
77. r\*O]'ICES
All u,ritten notiecs required b-v- this Agreement shall be rnailed or deliveled as follori's:
Tt-r Alistn Direclor. Poler Supplv
Avista Corporation
i4l I E. Mission: P.O. Box 3727
Spokanc- Washington 99220-37 27
To Clcarwater:Senior \rice President and General Counsel
CIcaru'ater Paper Corporati on
601 West Riversidc Ave. Suite I100
Spokane. \VA 99201
Changes in persons or addresscs tbr subrnittal of ra'ritten notices by a Party to this Agtrecmuit
shall be made in u,nting to the otJrcr Puly and delivered in acconlancc rvith this Scctiou 27. Any
verbal notice required hereby. u,hich affects the paynerrts to be nrade irereundel shall be
contjtnred in u'riting as plornpll5, as practicable after tlre verbal noticc is givcn. E.xhibit A.
hereirr. shall goven: oral conrnuriications bchvcen the Parties,
Page - 3i,r PO\I'LR PIIRCII.,\Sl: ANI) SAI-I' ACREII{I:N r HETWIEN A\i]STA C{)RPOtu\IIrlN .q.ND
('I-EARWAI LR PAPIIR ('0RPORATlON
HS
28. EXHIBITS
This PowEr Purchase and Sale Agrecinent includes the follou'ing exhibits. u'hich are
attached and. with the exception of Exhibit E. incorporated by reference herejn:
Exhibit A
Exhibit B
Exhibit C
Exhibir D
Exhibit E
Exhibir F
f;tt.,\
In \\'ITNESS WI{EREOF. the Parties hereto have caused this Agreement to be
executed by their duly arrthorized representatjves as of the date(s) set fcrrth belou':
CLEARWATER PAPER CORPORAT]ON A\XISTA CORPORATION
1..-)f o\'r,5 - l lrl. i i,t1r J l, I
(Tlpe Nanre)
Communications
Porver Purchase Pal'rnent Rate and Sehedule 25P Rates
Illustrati'r.e Calculatiou of Net Revenue frorn Sales of thc Product
l\4etering
Description of the Project
REC Agreanert
"1
1ltl /1 /?r tg
(Tlpe Name)\
Tirle: Li. ,lAt1^f
Datc Date:
Pa_qe - 2l PO\\/F-lt PURCHASI AND SALE AGREEI{ENT BEIW[,EN A\,1SlA ( ORPORAI loN ANI)
CI-EAR\\'ATER PAPIR C'ORPORATION
I t
Exhibit A
Communi-cations
A-1. \/erbal Cr:m:lunicatio:ts
All verbal communications bctrvpen Clearu'ater and Avista lefen'ed to in thc Agreenrent
shali be done by notilying the following parties:
(a) Pre-schedule (5:30 am to approximately 1:30 pm on nornral business days):
Avista Pre-Scheduler (509) 495-491 1
Alternate Plrone Number [phone]
Enr ail - #r: orppresch edu I e(lipvi st ac orp. coln
Cleanr,aler Principal Engineer Phone [phone]
Utility Shift Super,''isor Altemate Phone Numher (2081 791-436ti
(b) Real-Tirre Schedulc (avaiiable f4 hours per da1'):
Ar.ista Real-Tir:re Scheduler (50q) {95-8534
Clear\\'a1e r Principai Engineel Phone [phone]-+2
Utility Shifi Supervisur Altemate Phone I,umher (2{}il) Ttrl -4i6t{
{c)During mrnr:al business ltorrrs. all r erbal comrrrunications rclrlirtu to iuterruptions a:rr.i
outages:
Avisla S),stc:r'l C)pcrator (509) 195-49 I I
Alrcmarc Phone Number (-i09) 495-4q.34
Errrai 1 - # co rppres chedul crg, av j st a crrrlt, cou
Clrramater Principal Engineer Phone (509i 790-0342
Utilit.v Shitl Supenisor Alternate Phone r.,*umbcr (:08) 791-4-1(rB
(d)Outside of nonnal business hours (nighls. weekends. and holidays). all verbal
commutricaticns relating tr-r interruptions and outages sliall take place between tlre
following perstrnnel:
Avista Syslern Operatr-rr {509} 495-4105
Altcmate Phone Number (509) 495-49-?4
Cleanrater Principal Engineer Phone [phone]
Lltililv Shift Supen.isor Altemale Phone Number (208) 791-4-168
Cleanlat*r slull noti!'Avista's s)'sldrn operalor. as s(')r)n as is practicul- tfictrevm the
Prcrject is or is expectcd to irt- lrrought ou lirre, or takelr off line.
A-2
Exhibit A
Yg
A-3. Changes in persons or phone numbers for r.erbal communications hy a Party 1o this
Agreorrcnt may be made vertrally'to the othcl Party in accordance with this Exhibit but
shall be confinned in uiritirrg as an amended Exhibit A, A copy of said zunended Exhibil
A shall bc rnailed or delivercd to the represertatives of the Parties desiggrated in Section
21.
Erhibit -{
-(s
Exhibit B
Pot'cr Purcha$e Pavment Rate and Schedule 25P Bstes
Pan'er Purchtse Poyrtsnl Rote
As provided in Section 5la) of this Agreement. Avista agrees to buy the Delivered llet Output at
the Schedule 2-5P Block 2 Geileration Load rate (grossed up fbr rerlenus related expenses
associated with Conmrission Fees lu order to makc Avista cost neutral), as may be amended and
approved by the Comrrissiorr fi'om time-to-tin:e. which is curre.ntly $24.50 per MWh.
Srhedult 25P Rctcs Pursuunt to Scctitttt 5{dl o.f the ..lgrcement
The Panies havc agtreed lhat Clcanvater rvill he subicct to Scltedule ?5P hase rates as firllou,sl:. Thc trrst -1-000 k\rA rvould r:ontinue to be covercd under a niouthly flat rate of Sl4-000
per rnonth.. f}c nexl -51.()00 kVA wcruld be [ri]led at the current 1'l Block volunretric dsnond rate of
55.00 per k\/A. and all rernaini::g kVA n'ould be hillcd al tlre current 2nr Block
volunrc,lric dernru:d rate crf $2.50 per k\rA. The calcuiat'ion rrf detnancl is providcrd in
Exhibit D.. The retail encrgy rate (hat calfttres Cleanvater's load at the retail mctet'will be priced at
the existing Scheclule ?5P cnr-r'g1'rate- That rate is nrrw clescrihcd as Block 1 Nct Rctail
Loarl.
Thc abor,e tirrec hullets maintain the status quo tronr a hil)ing perspective betrveen the prc.scnt
Elecrric Sen.icc Agreetnent and thrs nerv Pcru'er Purclrase and Sales -Agrccnrent.
Under tlic tenns ol this Agreemenl- Avista has revised Schedule 25P ttr include a ne\1'
energ), block - Block 2 Ceneratitxi Load - for the sole purpo.sc of capturing Ciearu,ater's
generation load n:easured al the generation meter. The Blosk 2 Generation Load rate wili
capture Clearrvaler's gcneration load at the generation nreler priced at the PURPA contract
rate of S0.024-{ cents per kWh.: The Block 2 Ceneration Load rate ensures thnt tlic price
of energy sold to Clearu,ater is equal to the price paid for the energry delivered to Avista hy
C'learwater.
Cl!'anvater and Avista undcrstand that dernand and energy ratcs may change from titne to tin:e
during the term of the 2018 Agreement as approved by the Commission, Pages 1-2 of Exhibit B
1 Base rates refer to the prices detailed on Schedule 25P which recover the Company's costs related to
generation, transmission, distribution and common costs, Base rates do not include other tariffs, such as
Schedule 65 (Power Cost Adjustment), Schedule 72 (FederalTax Rebate), Schedule 91 (Energy Efficiency
Rider Adjustment), Schedule 97 (Earnings Test Rebate), or any other tariffs that are added to, or subtracted
frcm, base rates for purposes of developing overall billing rates.
2 The Block 2 PURPA rate of $0.0245 cents per kWh includes both energy and demand related costs
associated with serving Clearwater's generation load,
Erhibil B
I
'-(b\
to the 2018 Ageernent is the draft firrm of Scheduie 25P that would be filed u'ith the Commjssicrn
prior to the Effective Datc of the 201 I Agreen:ent.
Lxhibit R --{s
AVISTA CORPORATION
d/b/a Avista Utililies
SCHEDULE 25P
EXTRA LARGE GENERAL SERVICE TO CLEARWATER PAPER'S FACILITY. IDAHO
{Three phase, available voltage)
AVAILABLE:
To Clearwater Paper Corporation's Lewiston, ldaho Facility
APPLICABLE:
To general service supplied for allpower requirements with a demand of not less than
2,500 kVA but notgreaterthan 110,000 kVA. The average of the Custorner's demand for
the most recent twelve-month period must fall within these demand limits for service under
this schedule. Customer shall provide and rnaintain alltransformers and other necessary
equipment on its side of the point of delivery and enter into a written contract for five (5)
years or longer.
MONTHLY RATE: The sum of the following demand and energy charges
Energy Charge:
Block 1 Retail Meter 4.4529, per kWh
Block 2 Generation Meter 2,456fi per kWh
Demand Charge as measured at the Retail Meter:
$14,000.00 for the first 3,000 kVA ol demand or less,
lur Dernand Block: $5.00 per kVA for each additional kVA of demand up to
55,000 kvA.
2nd Demand Block: $2,50 per kVA for each additional kVA of demand above
55,000 kvA.
Primary Voltage Discount as measured at the Retail Meter:
lf Customer takes service at 1'1 kV (wye grounded) or higher. it will be atlowed
a prirnary voltage discount of 200 per kVA of demand per month.
Minimum:
The demand charge unless a higher minimum is required under contract to
cover special conditions,
ANNUAL MINIMUM: $657,720
Any annual minimum deficiency will be determined during the April billing cycle for the
previous 12-month period. The annual minimum is based on 916,667 kWh's per month priced
at the Block 1 per kWh rate, plus twelve months rnultiplied by the monthly minimurn demand
charge for the first 3,000 kVa of demand. The annual minimum reflected above is based on
base revenues only. Any other rcvenues paid in billed rates (such as the DSM Tariff Rider
Schedule 91) do not factor into the annual minirnum calculation.
lssued October 19, 201E Eifective December 15, 2018
l.P.U.C. No.28
ls y Avista Utitilies
Twelfth Revision Sheel 25P
Canceling
Eleventh Revision Sheet 25P
By Patrick Ehrbar, Director of Regulatory Affairs
Page 1 of 2
:.[)
AVISTA CORPORATION
dba Avista Utilities
SCHEDU LE 25P (continued)
DEMAND:
The average kVA supplied during the 3O-rninute period of rnaximum use during the
current month as measured by Company's rnetering equipment.
The Demand rate for all kVA above 55,000 is directly related to the terrns and
conditions of to the Service Agreernent between Clearwater Paper and Avista, which is
effective on December 15, 2018 through December 31,2023. Avista and Clearwater
agree that Clearwater's load under Schedule 25P will increase during planned generation
outages, intermittent Cleanarater generation outages, and other variations in Clearwater
Facility load. lf, however, Clearwater sells any of its generation output to any third party,
thereby taking all or a larger portion of its retail load from Avista, the second dernand block
described above would no longer be appllcable, and all demand would be billed at the first
biock rate. i.e., lhe rate per kVA charged for each kVA from 3001 kVA to 55,000 kVA.
SPECIAL TERMS AND CONDITIONS:
All Special Terms and Conditions are addressed in the Service Agreernent between
Avista and Clearwaler Paper Corporation as approved by the Commission effective
December XX, 201 8.
The rates for Schedule 25P that are associated with all present and fulure tariff rider
schedules (such as the DSM Tariff Rider Schedule 91) are applied to the Block 1 Retail
Meter load only.
For purposes ol all proposals related to General Rale Case Fllings, Cost of Service
studies, Production and Transmission Ratio calculations, and Power Cost Adjustmenl rate
calculations etc., "Base Revenue" will be defined as Cleanrrater's ''net. generation
requirements as measured through the Block 1 Reiail Meler.
lf, at any time, the Agreement is terminated or suspended prior to its expiration,
Clearwater will generate into their own load and be billed at the Block 1 Retail Meter rate.
Service under thls schedule is subject to the Rules and Regulations contained in this
tariff, The above Monthly Rates are subject to increases or decreases as set forth in Tax
Adjustment Schedule 58, Temporary Power Cost Adjustment Schedule 66, Federal
Permanenl lncome Tax Rate Credit Schedule 72, Energy Efficiency Rider Adjustment
Schedule 91 and Earnings Test Deferral Rebate Schedule 97.
lssued October 19, 2018 Effective December 15,2018
l.P.U.C. No.28
lssued by
By
Sixth Revision Sheet 25PA
Canceling
Fifth Revision Sheet 25PA
Page 2 o( 2
ta es
Patrick Ehrbar, Director of Regulatory Affairs
1{L
Exhibit C
Illustrative Calculahon of lt{et Re),enue from S.ales of the Product
Example of Net REC Revenue to Clearwater Paper
Average Month assuming 730 hrs
1 RECs Generated (40 aMW, 730 hrs)
2 PCC1 Eundeled Product Sold to Purchaser
3 PCC1 REC Price
4 REC Revenue (Bundled RECs sold x REC Price)
5 Transmission Expense (Current Transmission Rate
o, S2.00/kWmo x 40,000 kW]
6 Net REC Revenue (REC Revenue less Trans'nission Expense)
7 Clearwater Allocation of REC Revenue
8 Net REC Revenue to Clearwater Paper
9 Net REC Revenue Included ln PCA {rernaining Net REC Revenue}
29,200 MWh
29,200 MWh
5e.00 /nEC
$262,800
$80,ooo
$182,s00
9Ao./o
S164,s20
518,280
L Assumes any non-REC generation is retained by Avista and not scheduled for sale
2 Assumes all RECs generated are sold as PCCI..
3 PCCl price. PCCZ price will be lower.
4 REC Revenue only . Doesn't include index-based ener8y price.
5 Will be based on actual transmission rate at the time. Currently $z/kw/mo.
6 Assurnes 100 capacity factor on transmission usage-
7 Negotiated Clearwater Paper allocation.
8 REC Revenue less rnonthly transmission expense.
9 Assumes remaining Net REC Bevenue is not included in base rates.
Exhibir (
't-4{5
ExhiEit D
Iletering Configuration correlated to Proposed N'todilieations to Schedule 25P
Simplified Metering Diagram
Ulility Tie # 1 Ulility Tie # 2
Meter Meter
Put:
Qutr
Load Load Load
Meler Meter Meter
Pur:
Qrrr
Generation
Unit #1
Generaticn
Unit #2
Generation
Unit #3
Generation
Unil #4
Fol thc pu{pr}ses of tliis Agleenrent. llre Parties have agrecd that Facility Service Pou'ur is I l5 k\\t
per opcrating generating unit. Clcan ,ater shall nrrtii'r,Avista u'hen substaltial char:ges ar!. made
to the Project that rll'ects lhe an:ount of Faciiitr, Service Pou,er. In addition. for the 1:utpc,scs of
this Agreernent. thc Parties have agTeed tltat Losses are l0(l kW.
Dctermination of Demand. Block I Net Retail Load. lnd Block 2 Generation Lo*d.
Btsis for Dema!o!! Chargeq under Sehedulc 25P
For the pulposes of thjs Agreement. denrand as discussed in Exhibit B will oniy be calculated for'
Blcck I Nct Retail Load througli the gon:bilation r-rf the metcr reads (lvll altd M2) for Utility Tie
#l and #2. which is thc arrangement undcr Clearw'ater's present lilcctrir: Services Agrernrerrt,
"Demand" (Drr,:,). Expresscd in k\/a,
(P,, ): + (p,,, )'
"tltilit)'l'ie Aclive llou'e:"'{Pu,). Tlre ttltal active power delir,ered to Cieanryater. nleasured at eac}r
of thc trvo (2) Points of Delivery expressed in L:W"
Pur = Pwt + P*t: lltll') I),-lit'crrd lo {lcont'oter
D,,
Eshibit D
\\>
Meter
Y
I
()
"Lltilitl,Tie Reactive Powcr" (Q,r). The tr-rtal reactive po\\,er delivered to Cleanvater. rneasured at
each of the trvo (l) Poinls of Delivery expressed in kVAR.
Q* = Qntt + Q*: {kl"l/') Delivarcd to Cleonratcr
Basis for Block I n*et Retail Load undcr Schedule 25P
"Energy'Sold" (E'-elacr r) for Block 1 Net Retail Load. Tlrc amount of energy that Clearwater
purchases from Avista consistent rvith ths presenl Electric Serr,ice Agreement. in kE'lr in each
hour.
Es-Atntk t - Put * Time (kll'h)
Basis for Block 2 G.cneration Lo.aj under Schedule 25P and Porver Purchased from
Cleanrater
.'Polr'cr Ge:reraterl" ((lr. G:. C:. & Gi). The electric po$,er measured at each operatirrg unit
expressr'd in kW.
Gu: Gt - (i1+ Gr + 6--r - (l35kll'*{thc nuntbcr ql'oycrating gencrutiug unirs)) - {Losscsl
"Energl' Soid" (E,.r..r,*-r.:) ftrr Block I Gctteration Load. Fol Blor:k f uniler Sclrcdulr"' 25P. the
iunounl nf "Energ) Sold" bl Cleanvatcr I'aper fi'ont Ar ista rlill lre equivalenl to lhe antounl of
"Energv Purchased".
llr r/o.r : = (irt * Tinc (kll'h)
"Energv Purchased" (Ep). Thr ulrrount of cncrgy tlrat Avista purchases fron: Cieanvatcl generated
[rl'the Ploject in kWh in earh hour,
Ep = Gn t lirrtc (kll'h)
E.'dribn L)
a[)
ExhiFit E
Description of the Eroiect
I ) Unit No. I Turbine Generator ( 1 950): Description - Qf83- 144-000
(a) The unit No. I turbirre, General Electnc serial number U3530. is a ninc stage
3600 RPN{.600 PSIG stean: turbine
(b) The unit No. I generator. Ceneral electric serial nurnber 6784659. is rtameplate
rated al 12.,500 kVA
ic) GE SCR Excitation S1'steu (1984)
Excitcr N{odel # 357931SA520, Cat. No. 0503X0700201. l(" 7q3 i
ML Nun:ber M5030700
Equipnient Inst, Bcrnk: CEK-8381
(d) Turbine Govenror infonnatiort
Bail tsearing T)pe. Position Cut-Ofl'- Fluid Dartpi:rg
GE Cornpany Instructions GEI-19500
Pilot Valve antl Drive (1953) GEI-46103
2) Unit No. I TurbinE Generutor (19771: Description - QF'83-1.+l-()(X)
ti,r) The unit No. f lurbine. Geueral Eicctric serial nuniher 1977-11. is a sir stage.
-1(100 RPM. 600 PSIC steanr tulbinc
(b) ]'he unit No. 2 generator. Ccnerai Electrir": scrial nurnber 31 fiXl 88. is nanreplate
raled al I I .l SB kVA
(c) CE Static Excitcr (ED-43969). SCT i PPT
3S?q3 1 EA520G7: Elem. 41C309642
{d ) Prcssure Cor.ernr,r GEI-87044D
Speed Covenror CEK-2 70(15A
3) Uuit No. 3 Turhine Cencratcr (1981); Description - QF83-143-000
(a) The unil No. 3 turbine- General Electric serial runbeL 197ti36. is a tq,ch,e slage"
36tX) RPIr{ l:50 PSIG steanl turbine
(b) The unit No. 3 gerierator. Cer:eral Electric serial number 316X--17.1. is nameplate
rated at dl.6{10 kVA t{.,30 PSIC H2
tct Excitation: Shati Driver: Comn:utaticrn GE-M-134 Excitatiorr Systerr - SCT i
PPT
3S793 I EA-s33C4: Diag. 2068488e
L-rhibir E
1$
(rl) Gover:ror - Elcctrohydraulic Control (EHC)
GEK-81497 11979\ Ivlark IIB
:1) Linit No. 4 Turbine Cenerator (1990): Dcscription - QF92-67-000
(aj The unit No. 4 hirbine- ABB order rumher N'18275226. is a 3600 RPM steam
hntrine. DEEK S25-Sl0AlL144-200: ABB Order-NR: l-,+l I 868
(b) The unit No. 4 gcnerator, ABB serial nurnber HM300516. is narneplate rated at
66.916 kVA. Ccnerator Type WY l6L-054LLT
(c) Brushless Excitel ABB Tyrc WBT 74i508/30. Serial No. Hllt 300 603
Pilot Excjter Tlpe: WPE35-9-4Rf0. Serial No. HM300 604
irl) Cor,entor: Pro Contrul Pl3: Order No. l -41 1868: Drvg. I1TDC 3(17 794
Erhibit E .ts
Contract II):
Avista Corporation
Avista n n Stan
Contract lD;
Deal N{uker; Bill Johnson Deal N{aker: John trVilkinson
I)hone: 509-495-4046 Phone: [phone]
Fux: 509-495-88-16 Fzx
TRAI{SACTION CONFIRMA T]ON
Rcsource Contingrnt Bundled REC - Enorgl'anrl Green Attribules
'fhis Trznsaction fionfirmation (this "Confirqra]ion"] is entcred into this l9th dav oI Octohcr 201tt
l"Effectivc l)atc"), b)' and betrveen Avista Corporation ("Av_!S!g" or "Ssllcr'-) and Morgu Stanlcy
Cepital Group Inc. ("MSCG" or '*Buyer"). each rcf'cned to hcrein individually as a "Pg4y" and
colllstilcll as the "l-artjgg"" rc.girrding the puruh:ue ud sale of the Product (as defincd trelorr'l under (hr'
tenns and uondition.r hclorv. Thi.s Crrnt'rrmotiLrn supplernentsr t'onrts u part of, and is suhject tu tlru [Sl)r\
Mastcr Aqrecment bctx'een the Parlics dated as of Septemher l. l0il6 (together rvilh the Schedule unrJ
.ulrcxss theruto, all ls anrcntled frorn time to tinre. thc "^\la-stcr Agrccmcnt"). In tlrr cvr:nt that thr:rc is r,r
conflict hetu'ccn tle Mastcr Agreemcrrt and t}is (lonl'rmation, thi.s CcrnJirrrutir:n shall clntrol, Additional
dejinitir-rns crc inr;ludcd undcr thc "Definitiotts / Intcrprrtations" section trclow, The Mastcr Agrceltrclrl
ald this Ctlntjm:atirrn -shall bc collcutivcly rct'cnt'tl to hr'rein es the "iBrc'c,tnqnt." Citatitrn-s to thc \\'SPl'
Agreenrcn: Schedulr: (' and R .ne to thL' currcntly effective WSPP .,\grccnrcnt as suclt agrcurncilt ntal' bc
mcnded from time to time.
Sellgr:
Buyer:
ProductTran{aclion
Description:
r\r-ista
\{s('G
PCCl-Rerource Conlinqcnt Bundle.{ _BECsi [lcctricity prtrducc,i b.v thr-
l'rujeut(s) ("Pmject Lntrgy'") bundlcd ,*'ith thc as.sociatcd Reneuatrlc Energl
Ceflificatcs ("RECS") dcliverrd on an hourly busis, rvithuut substituting Encrgy
trom anothcr soursc. to the Delivery Point ("Rundlcrl Oreen Energy") that qualifie.s
as Rssr.rurcu Coniingent Bundled RIC as described in WSI'P r\grccment, Schedule
R, Section R-?.3.4. Such trunsactions are eligible to meet fie RPS compliuncc
rcquirements lbr Portfolio Content Catcgtrry I as -sct forth in ItUtl Codc
399.16(bXl)(A) and Calit'urniu Pubtic Utilities Commission ("CPtl(''; l)ccision
ll-12-05? C'PCCI Regulations") if scheduled fron: the Projecl into a Calitbnria
baluneing authtrrity area without substituting elcctricity kom another sourcc.
lluycr sha.ll be rcsponsiblc for seheduling the Produrt from Ge Delivcrv Poinl to it
C'alifomia bolancing authoriry arca. Buyer sholl pay Scller thc applicable Flrrcrgy
Price and PCCf I R-EC pricc for Bsndled (irecn L)uergy dr-livcrcd 1o Buyer at tlte
Delivery Point.
Environmcnlal
Altrihults:
Projcct;
Tstsl Conlroct
Quantity
Of Energ, an4
RECs:
PQ,Q2-Besource Continggnt Ilundled R"ECs: - Rcncwablc Energl' Cenillcetes
("It-ECs") that arc generated but not scheduled to a Califi:ruia balancing autlorlty,
rcC2 Bundlcd frEC.r In hours rvhere Seilcr schcdulcs Energy from the Projcct to
thc Delivery l'oint that is less than rhc hourly metered Project Energy gencratd b)'
thc Projcct, lhc RIlCls associated with such melcrud Project Finergy that i.r in exc€ss
of the scheduled Energy ("Ercess Energy") shall be dcemed "PCC2llundled
RECs", Thc Parries hercby acknowlcdge and agree that (aj Sellrr shall reiail such
Hxcess linergy ; ar:il (b) &e PCC2 Bundled RECS shall bc traruferred tu the
Buycr in acuorrJnncc rvith Scttlements ilnd Paymcnts scction bclow. $uycr shall
pay Scller thc PCCI RliC pricc lbr:iucb PCCI Bundlcrj RECs^
llrogram Anributcs as dcscribed u:rder thc "Califomia Program" in thc dcllnitions
section hereof.
The Clearwatcr Paper CEC Ceniticd biom*ss fauility loc:eted in i.ewiston. Idaho.
CEC ID WRE,CIS II) CARB If)
Olcarwatcr Paper 6053-1A Wll8, \\'l:9 .QU5578
CARB Ernissinns Factor: 0.0.1 tunncs C01e pcr MWh
Scllcr shell providc Duyer rvith the llroject Ccrtilimte evidencing etigibilitr rvith
('li(' certiluation.
lip [o 4t]u,(100;\I\lft of firm W-SfP Schedule L- I'.n:rg1'cach couu'uct vsar tor l"hu
Delivery 'I'crm anrl the RECs TPCCI anrl PCC?) issociatcd wih such Praject
Unergy as lurlher described herein. Scller does not Eilrarantee thr total delivr"'rcd
quantity will hc 400.000 MWh; rathcr, thc actual tolal ctrntract quafllity shall
depcnd on the acrual Projcct Eneryy gcncratcd by thc Pro.lcct and drlivcrcd to
r\visEr during tbc Delivery 'l'enn. ln no evcl:L shall Avista bu' requircd to procute
any rcplacement F,nergy or RliCs frum a rs-sourcc other than thc Projcct. Seilcr will
make commercially reasonable effons to notify Buycr of planned ard lorced
oulages ofttrc Project on a regular basis,
?
Hourl-y Controcl
Quantiry otfrECs:The Contrast Quantity crf R[Cs tbr each hour in r,r'hiclr Seller de,livers linerg,l tu
Buyer.shall be totsl o{l
(i) Thc numbcr of PCCI cligiblc RPltls deljvered to Buyer at thr Delivury
Point in each hour based on the actual hourly amounl o[ Bunt]lcd Green
IJncrgy delivsrcd to Buyer as repressnrrd on the NERC e-lflgs, ond
(ii) 'I1* numbcr of PCCI Bundled RliCs gcncratcd in each hour.
Dtlircry Tern:Subjcct to thr tenns of this Coufirmalion. the Partic.s anlicipare rhat the I)clivrri'
I'erm shall be: ['lE 0100 PP'l'Decernber l5.Zfjlt, and contimting throug]r Hli
2400 PPT Deecmbcr 11.202-1, and con'tinuing through the crrmpletion ot'thc
transfer of ull of the Produut, inuluding all RECs through WREGIS, to lluyrr cud
thc payrnent of all amounts due Sellcr pursuaxt to thi.s Con{irnration; providrd.
huwevsr, Uut all crILh* R-ECs associa*d with the Pro.icct Energy'and RIi(]s shall bt
transibrrc.I to Buyrr no later than April 15,2024.
l.lotrr-irhstanding the foregoi-ug, this Contirmation shall not bccomc slfiiclivo uriess
or until such tinre as Gc Idaho Puhlic Lrtilities Conrmission f '[PI I(:") afFrovcs rhc
l'ou'cr Purchase and Salc Agn:c.ment fJr,rtr+'een Avista Corprrraiior: arr.l L icaru'atcr
Papcr Corporatic.n datctl Dccember l5,30lE ("ClcarwatcrAgreetnenl") and, to the
rrtcnt n€ce$sary'. thc Delirery Tcrrn stated in this scction shall be xutouinti.Jll\
irdjustt-d to {l) conrnrcncc al lhe latcr of {i) IIE 0100 PP'l or: thr'r:ftsctivr tlatu r.rt'
*re Cleanlatcr Agrccment that is approvcd by the Cornrnission or (ii) l{[ 0100 P[yl'
on l)eccmbcr l-5, 1018. and (l) end at thc cnrlicr of HIi 2400 P1'1'Dcccmhcr.il,
1023 or such other drtc ;rs thc IPIIC ntay so ordcr: : Ttrovkletl, huv.ever, [lra1 thr
tcrnrs ol this Ctrnlirmation shail surviys the e.xpiration r:r tcnninutian ut' the
Clcaruntcr Agrccmcnt pursuant to thls paragrrph lo thc cxtclll n*ccsiiln' to trarrsl'L'r
to Buycr any Product associated wirh output frorn the Project that was gcncrute.l
prior to such expiraiion or temination and to T}lL'estent neue.{sary fbr tsuycr to ply
all smounts duc to Scllcr ftrr zuch Product dclivcrcri to Buyer"
Dtlivery Poinl:AVA-/BPAT or LOI,O or an) other uncon-shaincrl pr)inl on the Ar.irtr S_1'stem :rs
mutually agrced.
Coilcacl Price:Thc Conract Pricc shall consisl of thc Energv Price and the RI:Cs Pricc.s, as
lfrtlows:
"Encrgy Price" shall equnt the applicable Porverdex Mid-Culumbia Ilourly
Price per MWh (or mulually agreed to altsmative) multiplied by thc.sum of
all Encrgy delivered to Buyer for such applicablc hour.
Thc PCC I RIjC llricg shall cqual S9.00i'lU\\'h multiplied hy the Cunlracr
Quantity of PCCI RllCs that arc transfr,.rred trom Sellcr to Buycr through
.1
Schedxling:
I'ailure kt lleliver
or lteceive Energj;;
Eorly Terminatictn:
Togging:
WRUCIS wherc lhc PCC I RLC Contract Quuntiry shall be dctr:rmincd as
ttre lesscr of (i) the hourly mctered generution (thc "Metered Fincrgy"') and(ii; the hcurly anrount schcduled to thc Delivery Puint (drc "Seheduled
F.nergy'J
I'hc PCCZ REC Pricc shall equal $4.50 for gach RFIC rnultiplied by the
Corttrucl Quandly of PCCS R-ECs that are kanefenud from Seller ro Buyer
tlrough WRECIS where thc PCCZ REC Contract Quantity shall he equal to
thr positive difttrence between the Mclered Encrgy ancl the .Scheduled
Energy.
Scller shall schedule all Bundlcd Grccn Hncrgy to the Dclivery l)oint according to
the prevailing scheduling protocols uf the WECC. Seiler will notify Bu1'cr h1' 053i1
PPT of the hourly Projecl linergy' magnitude and Pro]ecr [nergy prolilc of thc
PCCleligible RECs lbr thc following preschedule period. l'hc delivery schedule
shall be between 0-50 MW ns dctcrmined by Seller on u prcschcdule bosis.
Scllcr shall cndcavor to suhudule Prrrje ct Energy in a rnamer thlt marim izt".s lhc
nunher ol PCCI eligible R.LCs;rvaihbie tu Buver. Buy'er shall bc responsihlr lor
schcduling and delivering all Rlitls and Projcct Encrgy lrorn the Delivery l'oint.
ll'e ither Sr:llcr or Buyer tails to recL'i\'(" or delivc'r. cs applicahlc. Frrcrgy at l)rliv*r.r'
Point, Damagcs shall be calculated in accordance urth WSPP Schedulc R, Section
R-91 provided howcvcr, in ths evrjnt Sellcr's failure to delivrr is due kr a
bankruptcy errnL by Cleant'atcr Papcr Corporation f"Clea$'alcr llankruptcl'")_
utrdcr thE Clearwatcr Agrcentent and Sellcr dcsignata; on liarly l'ermination l)atc
thcrcundcr as r result of such Clcaruater Bantnrptcy ('.he "Clearwatsr
Trnaination";, thcn Seller shall ttre right wi*rin [10] I]usincss Day.s aftcr such
Clsanlrter Terminadon to designae an Early 'I'crrnination L)ate hereundsr and
thcrc shall be no Tr:rmination Payzncnt calculated or payuhi* in respcct o[ such
early ternrination. Such rarly turmination shall uot reiievc a Party ol'its oblig:rtions
incurrcd prior to the t)arly Tennination Date hereund.er.
Buyer shall grnerate lhc etrgs. Buyer and Selle r shall rliscuss a rnutuilly rgru-ablc
Delivcry Point(s) no latcr than 0630 PPT so that the Buyur can inclutlc the Prr:ject
CFIC Ccrlification Numher in the miscellancous fieltl on the c-tag physical path.
Real-tirne e-tagging adjustmenls will be complcted ir.s necessar, to accommodote
generation- pattr. and sink changes and to optimizc thc de [ircly ol'PCCI RliCs.
4
Sctllentens and
Ptymenl:
Dcta freporls:
Changc in Lon'
Provisions:
Sellcr slull invr.rice llu;-er un a munthly basis as lollows
(a) Ilrcrject -Hnor(v. Scllcr shall invoice and Buyer shall poy fcrr llnt:rgy dclivered
to the Dclivcry Point at the Energ3, Price in accordance with thc Masler
Agn:cment,
fhl RE(-s. For cach month of thc DeJivery'lerm, Sellcr shall dclivcr und crrnvey
the Conmct Quonrity of RECs {PCC I and PCC2 RECIs) to Buvcr hv
ranslurring thc WREGIS Cr:rril'icatr:s to Buyer rvi&in ten ql0t llusines.s D:rys
affer thc cnd of the msnth in rvhic.h thc WRECIS Certificatr:s are credited tt
Seller's WREGIS ilccount. The tmnsfu.r shall he madc in accordancc u'ith thc
rule.s and regularions of WR-EGIS. Payrncnts ol amounts o*ed t'-v Bu-ver to
Sellcr for RECI transferred hffeunder shall bc calr:ulated bascd upon the
applicablc RIC I'ricc (ra-*(ll lUrC Pricc or PCC2 RIiC Pricc. as applicabtc) anri
shall be duc antl payable aftsr the WR-trClS Certihcalcs flor suchRE('s have
been transferred to lluysy's WRIjGIS aucount. in accordance uith the Mitslsr
-{grr.crnent.
(c) Emissi$ls Fac,tor (IjF) True-Lip. '[he lixJrccted F]F olthc Project Energv is 0.0{
l.onncs ('Ole / !\'IWh. I}e ljcbruar.v invoicc ol'eash ycar will be rcducetl trr
increased by *y positive tlr ncgg.tivc diftbrsnce hef\reen the CARli-a:signcd
l:missions Factor ("EFraxn") of thr Project F,rrr:rgy" anrl the ThrsshrrlJ
[nrissiunc Factor ("EF6*r,") of 0.0-i lilnncs (lo;c / hlWh multiplicd try' thc
volume of the lincrgy delivcred to thc Dclivur;y Point and b.v thc averagc
Califomia Carkrn r\llowmce pricc tor the prior calerrdu venr.
)io luter than tcn (10) calendrr days a{Lcr the end of cach calendor month during thr:
I)clivrr1, Temr, Seller shail providr: Bu1'cr with thc hourl-v nteter dutrr lnrm the
Projcct. or olher data as rcccssnr/ to validate thc Product, including thc irnrounl of
PCCI eligiblc RfCs and PCC2 cligible R[']Cs delivered to thc Delivcr-v Prlinl i.n
cach calendar month.
Regulatorily Continuing (WSPP Agreemcnt, SchcduL- R, Sccticrn R-5,2.1(bl),
n-quiring thar Seller maku cummcrciully rtasonabb efforLs trr obhin conrpliurcc
rvith Changes in l"aw in the drsignatcd Applicable Program, providcd that surh
costs should not be grraler tban $5,000.00 (the "eagpgd_Amoun!"). I[ Sellcr
cannot eomply affer spending the Capped Amount. Buycr shall have thc right" brrt
not the obligation, to obtain compliance or terrninste this transactitln up(in l0 day'-i
prior wrilten notic.e to Seller, and the'rcaftcr:
all Bundled Grcen linergy not thcrt alrtady transf(1rrcd antlior dtlivcre'd i:y
Seller to Buyer shail be terminated ;urd Seller shall have rtt ohligation t(!
5
(it
make nny funher dcliverius, iutd l3uycr shall have no obligation trr acccpt
any de liverics. of Bundlcd (irccn Encrgy (or rny componenr thrrcolJ; a:rd
(ii'I neithcr Party sh:ill havc atry fulher ubligations Lo ilrr: olher hcreundcr (ofter
tla.n for per{brmance already crrmplcted prior ro such tcrminarionl.
If Iluyer dor's nst tcrminate this 'liansaction rvithin 30 days ol' rhc Changc in Lrw,
thun the Agrccment shalt continrre in e ffc'c.t and the I'ransacliori slrall become "liot
Regulutorily Continuing'" (wsPP Agreemcnt, schedulc R- sucriun R-5-l-2{s)), f,nd
lluyer may not therea{Ier terminate rhis Confinnntion due to lhe Change rn Law.
sPEC{A,I, PIIQYISI0!i$ :
A. l{oq-Mod ifisblc $tan d*f d,'termr s nd CoJ di tion r
(l; "Green ..tttributcs' rncans an1' and all crr:dits, bcnefits, cmissions reductir.rns, ollsets, and
allorvances. hows<rcv*r entitlcd. altrihutable to Oc generation from thc Project, and its avoirlcd cmission
rrf pullutants. Grcen Attritrutes include but arr not Iinrited ttr R-EC-s.:rs rrell as: (ll any avoidrd.n)i.ssii)lt
oI pollutants to t}c uir. soil or Ea[r.]r such us sultur t -xitics (SOx), nitrogen oxirlcs (li().xt. crrh..rn
moaoxidc (COi and olhcr polluunls: (2) any avoided emissions of carbon dioxidc (CO21. rnethanc (Cf t.{ },
nitrou.r oxidc, h1'drotluorocarbuns. perJluorucarbons, sulfi:r hcx;rlluoride md orhur greenhoutu g$\L-:i
tGlIGs) t}at havr: trcen dctcrminc,J by tlre Unitcd Nation-s Inlcrgor,ernmcntalPanel on Climate Ul.;urgc. r,rr
otherrl'ise by larv. trr contributc to thr: acturl r"rrptttcntial thrEal ul'altcring tlre Harth's clinrute h.v trapping
htitt itr thu utmr:.sphcrc:l (iJ the rcponing rigfrts to thu'sc ar.r-rided "-missions. such as Grecn Tag Reprrrting
Itighrs. (ireen 'l ag Rirptrr'tlng Rights are the right oI a Crecn 'fag tsuyrr to ruport thc ur,uership ot'
accumulated Grc'en Tags in ctrmpliancs rvith i'rdcral or state llrv, if :rpplicahic. and t,r e fbderul Lrr srulc
ag*ttul- orally rr(hsr pall)- at the (irr:cn 1'ag Bul'er's Jiscrelir)n, anrl ineludc without limitatirrn tirrrse (ircen
'['lrg Rept*ing Rights accruing undur Seclion l60i(bt of 'I'he lincrg;* f'olicy Act of lt]9? and arly Frcscnr
or futurc fcderal, state, or lucal la*', rcgulatiurt r:r bill, und international or frrreign emissions tra.ling
prugrsnl. Grcen 'l'rgs urr: scctrnulated on a hl\*'h basis and one Green 1'ag rcprescntg thc Cjrcsn
Atlributes associated with one (1) MWh o[ Encrgy. (keen ,\ttributes do not include (it any energ].
r:apncity- relioFrilit;- (rr r)thl:r pou'ur attributss from the Projcct. (ii) prr:duction u.r-r crcdits aqsocilrrd u'ifi
the comlruction ur trptration ol' the Projcct and other finxnciol inecntivc.s in the tbrm ul credit.s.
rcduutions. or allowances assnciatci.l with thc Prujcct that arc applicable to a slate or fuderal irrconr*
taretirln obligation, liii) fucl-related subsidies cr "tipping t'ces'' that rnay trc p'.rid to Seller to s.celr ccrtain
Iucls, or local subsidiL's received by the generator for the destruction of particular preexisting pollutalts or
the prom<-rtion uf local cnvironmental bcnefits, rrr (iv) cmi.ssion rcduction crcdits enc.umtrrred or use'tl b.v-
thc Froject tbr uornpliancc with local, sLate, or federal ogrrating andlor air quality pennits. If thr Prujucr is
a biomass or biogas facilitv anrl Scller receives any trarlable (ireen Atrributes based on thc grcenhor"lqc gas
rr:duction benefits or othcr crnission oflbcls atuibuted to its fuel usagc. ii slrall pror.idc lJuler r,r'ith
sullicient Grren Altributcs to ensur€ that lhere .Irr- zcro net erni.ssions cssor;iatcd with the prtrduclion of
elccu'iciry from thr Project. ISTC 2, R-ECs end Grern Atlributes, Non-Modifiable.J
I Avurdci! err:rssauni rrur\ o, rnu-! nor hors u:y voluc for 0l l(i tompliuncc putposcr. r\llhough riloidcd cmllisions irrr incluJert in thc lirt ot-
(irccn .{rtributcs, lbis:nclusirur tturs nui sreirli: any right to ure lhosr utoideJ cmi$ions (o r0nrpl]^wiLh anl GH(l rclrrlulor;. Ilotrdrn.
6
Gteen Attributes: Seller lrercby-pruvirlcs and ctrnvcys all Cireen Attributes as-sociated wrth oll electricit,v
gencration lrorn thc Project to RuJier as part of the Producl being dclivered. Suller represents anrl \rurr.nts
that SelJer holds the rights to all Grsun ;ltnibutes from thc plgject, ernd Seller xgrees to cnnr-*y and
hcreby conve)'$ all such Green Attrihutcs to Buycr as includcd in the delivery of the Producl t'rorn the
Projccr. ISTC 2 - RECs and Creen Attributrs, Iton-Modifiehle. D.0L0.l-009 (3.2)l
(21 Eligibilitv: Sellcr. a:rd, if applicablc. ils successors, represcnts and wftftents thal throughout the
Delivery Term olthis Agru'cment that: (il the Projcct qua!ifies and is uertilied by tlrc CEC as an liligible
Rencwahle I'.ncrgy Rcsuurce (-ERR*) as such lerm is de[inerl in Public lJtilities (]ode Seclicn i99.lJ or
Section 199.16: and (ii) thc Projcct's outpul dclivered to [lu1'er qrralilics undcr the requirr:ments of lhc
California Rcncwahlcs Portfblio Shrrdartl. To thc extent a ch;urge in law occurs after cxL:culion of this
Agreernenl that causes this representation and warrrng to be nrat*rialll' falsc or misicading, it shall not hc
an Evcnt o[Del'nult il- Seller hrrs uscd commcrci:r.lly reasonable efforls 1rr comply with such change in law.
JSTC 6, Non.Modifiable, (Source: D.07-l l-025, Atlachment A.) D.0t-{14-0091
(3)Applicahlq t"arv. Covcming [.aw. This Agrcementand thc rights md dutics of the Padisshrrcunder
strall be govcrned b-v and construsd, enforoed and perfomrcd in auconiance *ith thc laws of 6e Statc of
Califomic, withor.rt regard to principles trf confliclq trf larv. .lir the Extenl cnlirrccaLrlc ut such time. each
Fertl'uaivcs its rcspeclive right tr) cn] jury trial t'ith rcspecr t() anv litigation ansing unJrr or in
conner:ti,:n u'ith this Agreernent. [S'[C t7, Appticable Lsw, iYou-lHodiliable. (fiource: D.07-l l-025,
Attacb rnent A) I).08-0,1-0091.
{4t l,ra.ns.|ef. .r_IIensrIghle_EplIlr}' Cred11s; Scllcr zrnd, if applicablc, its successtrrs, represent]i and
lv:rnants ahal fiJoughrrut the Drlivery 'l'enn of this Agreernent the rcncwalrle cnerg!' crrdils trarulcned to
Buy'cr conlurm to the dellnition and attributes rcquircd fnr con:pliance rvitj: lhe Caliti:mia Rr.'ncrrirblcs
Ptrnfolio Standard. as sct tbnh in Califomia Public Utilities Cummission Dccisii:n 08-08-028, and a-s may'
bc nrodificd h.v subsequent deci-sion of the Califtrmia Puhlic Utilities Commi$sion or hv suhsr'ilurnl
lcgislation. 'l'o the cxlcnl u chasgc in larv occurs afi.L'r execution ol this ,lgreemcnl thal causr.;s thi.s
represcntstion and lvarrunry to trc mnterially talse or mislcading, it shall not bc an l:vcnt of Dcfault il'
Sellcr ha*rr used commercially'reasonublc efftlrts trr cLrmpl-u *'ith sueh changc in lau.. ISTC RXC-1, ]on-
morliliable. D. I I -0 I -.0251
{5} lrnckinq rif REC's in WRL]GIS: Seil{-'r w&rrants that all neuessar} step$ tL} allou't-h* Itcnewable
Energy Credits transfcrred to Bu1'er to be lracked in the Westem Renewable Energy (icneration
Intbrmarir:n Systenr will hc taken prior to tle first dclivcrl' undcr thc conlract. ISTC ttEfl-?, Non-
morl iirable. t).1 t-01 4251
B. Addifinnal'l'crErs +q$LCo$ditionr
{l) Seller Rerrresentation.s-flnd Warranties: Seller reprusents and warrants throughout the Deliv*ry' I'erm
that:
(.a) Scller has lor sold thc Product or any Grcen Atuibutr:s of the Product to bc trarrstcned to Buvcr to
ony other pcrseln rlr elltifyi
1b) cach Creen Auribute mc.cls thc spccilicalicns sct lorrFr hcruin;
a
(c) the Product is generatcd by thc Projcct;
(d) All riglris, titlc and intcrest in zurd to ths Product are free and clear ol'irny l,txcs or securiry inleresrs
except for ony right or interest by any entity clairning thror:gh lluyer:
(c) the f:nvironmental Atlributes havc not been rrsed to meet any t-ederal, stote or local renervablu
ensrgy requirement, r$newable €ncrg), procursment, rcnewablc pofifcrlicr stlndsrd, or uth*r rcncryat:lg.
encrgy mnndatc by Seller or, to Seller's knowledgc, any third party:
(f) for cach monlh r:I t]rc DeJivcrl' -l erm, Sellcr shall dclivor and ucrnvcy thc RECs in accordancc rvitlr
the WREGIS Operuting Rulcs, inlo Buyer's WRE(ilS ascount such that all right, titlc and inlert'st in
and to sush r*E.E(ilS Ccrtificates shall transfer tiom Scllcr to ISuyer; and
(B) Sell,:r has. and during the Delivery'fr;nn shall continue to maintain. csrtificc.tion from WREGIS.
(-1) CEC Certifica.liun: Scller shall provide Buyer wl& n copy of the CEC ccrtificatir:n ol'the l,rrrjerr(sl as
r:tigibie fur Califomia's Rcncwnblc F,nergy Standard under thc criteria established in the Rcncwahles
Ptrrtfrrlio Standurd Eligibilitl'Guideh'ruk. 7th Fdition, dutr'd April 30, 2013, and for rmh [rRR sirrll alstr
;rruvi.lc the individual F'EIIC lD nuntbcr, MiRC ID numbcr and EIA ID nunitrcr. if avarlablc.
{5) &cyis'w: 'lir monir<rr compliancc with this Ctrnfirmation. cach l''arty n*scn'cs the right to retierr during
norrnal busincss hour.s and at ils o*a crpense. Ior up tu lwo (2.1 ycars ftrlluwing delivery of rhe Product
uudct this Confimralion, cnd with reosonahlc advancc noticu to thc other Pany :urd lo lhc cxtcnt th.rt such
athcr Partf ir in prrs.tession of suuh infr;mraliou rcquireri to teriti' thai the (ireen r\ttrihutes -qoltl undcr this
Cunlirmation lvcrc not othenvisc sold by licllcr to u third pn1^.
(6) Rustlatorr:: Thc Parties intr:nd thc rates, terms and ocrndiliuns r:f scrviue specitied in this Conilmutiun
to rcmain trxr"'d throughrrut thr: Dclivcry 'l'crm ol this Confirnlalion regordless <.rI' any changcs in
underlying eosts thal would junify a change in ratcs undcr tr:rditional cost of servicc principles.
(7) R.fS Clonfrdcntialilt. Notwit}rstanding anything in this Agrecmcnl to the contrary- ei*rer Puty shull
be permittcd io disclrse thc tirih:wirrg tcilxs to the CPIJC or \I'R-ECIS r+'ith rcspcct Io this Conllrmltion:
Partl'narnes, resourcc q'pc. Delivcry Tcrm. Projr:ct locntion, and Projcct capaciry,
E
(81 Contact I nfofnralip.q.
All l\otices:
Street: I4l I East Mission Avenue, MSC-7
City: Spokane, WA 99202
Ann: Bill Johrson. Wholcsalc lvlarketing Managcr
Phone: [phone]
l'acsimilc: (-509) 495-8856
Duns: 00-794-3764
Fcdcral Ta.t ID Numbcr; Ci-0462470
Invoicus;
Attn: Resource Accuunting
Phone: [phone]?
Facsirnile: (r09J 777 -9750/9340
r:M G
All Notices: Commodities Dcpt. - I lloor
Strcct: 1585 llroadway Ave.l f loor {13
City: Ncw Yorli NY 10036
Attn: Ifuren Kochonies
Phone:[phone]
Facsimile: 2 I ?.507.3758
Iluns: I30198013
Fetleral Tax ID Number: I3-32tm368
Invoices:
AtLr:: Managcr, Por*cr Ops
Phone:[phone]?9
Fscsimilc: 9i {.!25.9306
Payments:
Atur: Rcsource r\ccuunting
Phone: t509)495-2432
irucsimile: 1-5001 777-9?50'9:40
lVirc Trausfer:
DNK: Wells F'argo Bank. San Francisco, CA
ABA: 121000248
ACCT#: 4168814'170
ACCT Name: Avista Corporation
Credit and Collectionr:
Atbr: Wholesale Contracts antl Credit Managcr
Phone: [phone]J,'116.+5
Facsimile: [phone]
Email cofl]
Defeults:
With additional Noticcs of an Event of Default or
Potential Event of Default to:
Attn: GeneralCounrel
Phone: [phone]
l'acsimile: [phone]
Pa3'mrntr:
Attn: Manager, Porver Ops
Phone: [phone]
Facsimilc: I 1,1.22i.9306
Wirr Trsnsfer:
Banli: l'lrthcrn -lrust Inlernatiunal N Y
ABA: 026001122
ACCT: 102897-20010
Morgan Stanley Capital Group lrrc.
Crcdit End Collections:
Ann: Credit Manager * Commodities
Phone: [phone]
Facsimi [c : 212.1 62.03 14
Defruhs:
With additional Noticcs of an l:vent of
Detault or Potential Hverrt oIl)ct'ault to:
Attn: Morgan Stanlcy Capital(iroup [nc"
1585 Broadway
Ncw York, New York i0036-11293
Attcntion: Close-oul Nuticcs
Phonc:N/A
Facsimile: v'ilh a
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Sellen Avists
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l'acsimile No.: f l].507"4622
C. F'LIRTHDR'I'ERMS AI\.T} CONDITIOI$
(l) ScutiunT, Trons.{er of the lvlaster Agrcement shall, solcly for purprrses of tlris L-onlimration. be
deletcd in its entirety'and replaced with thc tbllowing: "Neither Party shall tansfer. assign or sell its
righs as set forth in this Confirmarion, to .x3y third pon1. without lirst obtaining thc prior $Trttcn conscnt
of thc othcr Part-r', which sr'rnsent shall no1 be urucasonabl_v lvithheld. Nolwithstanding the tirregoing. no
such canscnt shall he required [o the extent that the transfer or sale occurs (i) to an affiliatc of a Pa:ty by
operotion of [alv, thrcrugh mergcr or acquisition. or as the resrr]t o[ the sale or transt'er of all or
substantialll'dl of thc uansferring I'an1''s asseLs. and thc rcsulting cntilr''s crr.:ditrvrr*hincss is eqttal to r-rr
higher than that of such Party as of ihe Ell'cctive l)ste of this Corfrrmatiun. ur (i.ij thc otrligatiuns uf such
Affiliate are Suararteed bi' such Puly or it.s Gurrlntcrr. if aay. in accorda.ncs rvilh ir grrirrulY agrcement in
fonn and substance -ratistactory to thc other Part-v, antl liii) transicr ur ussign this Ci'uli:'rnttion is to anr
IJerson or entity succecding to all or substantially all of thc assets ol'such Parl;- u'hrrsc crcditwnrthincss is
equal to r-'rr irigher lhan that of such Party or its (iuarantor. if any. as of the Elluctivc Dute of *ris
Confinr:atlun."
(ll \{qtual ReFrcsenfirtions gnd_[lrrantie-,.. During thr Tcrrn. cac.h Partv rcprcsunts cnd wanants to tbc
other Lhat: ii) it is an "eligiblc comrnercial entit1," and an "eligiblc cirnlract panicipant" wjthjn thr:
meaning of Llnited Statcs Commodity Exchange Act $$la(l1) and ta(l?j, resFcctivcly. and this
Traruaction hls been subject to indivitJu:tJ ncgodatit rt b-v thc Pitniss.
(a) Abse.nl the agrccrncnl of all Partiss to the proposcd changc, the standard of rcvicrv litr
changes ro sn)'rate. chargc, classilication, lcrm or conditirrn of lhis Agrcement. rvhcther pr()Foscd
b;r a Pany (to th,: cxtcnt that any waivcr in subscction (hl below is unenforcetble or ineifcctivr-'as
tu such Purty), a non-psrty crr FERC acting sutt sponle. shtrll solcll' bc thc "puhiic interest''
application of thc *Just and rcasonable'= stsndard of review set foflh n Unitetl 6a.s Pip* t,itrc ()o
v. t{obile Cus Scrvice Curp..350 U.S. 332 (tq)56) and Federul .Po',ver ('ommistion v. Sierru
Pactfic Pnvar C1o..350 U.S. 348 (1956) nnd clarified by Morgan Stanley Capital Group, lnc. r,.
Pubiic {i(il. Dist. No. I o/ Snohomi.rh,554 U.S. 527 (2008), and .VrtC Puvver Mar*eting l,LC v.
Mcine Puhlic Utiliav (omtnission, 558 U.S. 527 (2010).
(b) In addition, and notrvithstanding thc l'oregoing subsection (a), trr thc fullcst crtent
purmittcti try applicahle law. eauh Palty'" frrr itself and its successors and ussigns. herehy expressly
and irrevocably lvaivcs an1'rights it can or rnay have. now or in the tutr.rc. whcthcr undcr scctiorus
t0
l
f3) IIERC Standgrd of Rtvie' ': \'lohile .\icrrn R/aner
?05 andior 206 of th.: l'crlsrlll Pou'cr Act or othen*'isc, to scek Lo pbtoin trorn FERC l:y ony'
mcans. ilirectl;" ur indirr"'ctly (thrrrugh complaint. invc.stigution or othenvise), and cach hercby
coyenanu and agrues not &t uny timc to scck to so ohtuin, an order tiam I'ERe cbangiug ury
.section of this Agreement spccilying thc ralc. clrargu, classification, or othur lunn or condition
agrccd to b.v thc Panies. it being the express intent of the Partics that. to t}e l'ullest extcnt
pennitted by applicable law, ncither Pany shall uniiatcnrlly scck to obtain fr:m FHRC an-y rclisf
charrging the ratc. chargc, classifitxtion, or ol}er term or condjtion nf thls Agreernenl..
ntrtwitlstanding arry subscgucnt changcs in applicable law or markef cr'rnditions thal may rlccur. Ll
the evcnt it wcrc tr: tre dctcrmined that applicable law precludes rhe Parlics frrrm w$ving Uruir
rights to seek changcs from I]ERC to their mffket-based porver sales confracts (inciuding entering
into covcnants nol to do so) thcn this subsection (b) shail not apply, pr*vided that. mnsistcnt ruith
thc foregoing subsection (a), ncither Pany sha1l seck an1' such changes e.xccpt solely undcr thc
'public interest" application oi'the "lrrst and rcasonable" sturdald of review and otherr+.is'e as sct
forth in thc lbrcgoing scction (a).
DE!'INITI0.\S / INTEBPRETATIONS: For purposes of this Confirmation thc lollowing rlcfinitions
und nrlcs uf intcrpretations shrll apply:
"Applicahle Law* nrean,s all lcgall-'" binding corrsti{utiorts. Iru'atie"\. statulcs" lurvs. .rrdinunccs. rulcs.
regulutiorx, ordcrs. ir:tcrprcutions, pernrits, judgmcnts, dccrces, iljunctiuns, *'rits a-ld urders o[ an.v
Covernrncntnl Authority or arbitrator that appll' 1o the Applicatrle Prognrm or iuly onc ur both of th.'
Puties or thr Lcrms hercoL
"Applicable Progmm" means the Calilornia Rcncwflhrls Porttbljo Standard as de finrrl herein.
"Buyer" shall have lhu sanli nreaning ilr ''Buyer" underthc Ma.sterAgrccrtrenl and, for purpus$s of th.is
Confirmation shrll n:cun lvlorgur Stanlcl'Capital (iroup Inc-
*CAISO" menns the Calilbrnia lndepcndcnt Systcnt Opcrator, ur ik surxcssor.
"California Program"- "Cnlifornia Rencwebles Portfolio Slanderd" or "California RP5" nteans the
renervahle cnurgy prograrn and policius, cotlil-red in California Puhlic Utilities Codc Scctions 3q9.1 I
through.]q9.30 and Clalifr:mia Public Resuurues (\rdc Scctions 25?40 thrrtuEh 25751, as such prt')visir-)ns
are umcndcd or supplcmcrcd from limc to limc.
'CEC" mean$ the California lincrgy Commission or its regutatory succcssor.
"CEC Certificrtion" msans. if applicabJc, thc ccrtilication by the Certification Authoril.v of the
Califonila RPS program of ti) thc cruation and cha:acteristics of a REC, (ii) the qualification o[ a
I{cnewuble F.nergy Fauility or a Rcnc*able [incrgy Source undrr the California RPS prograrti, (iii)
Dclivery trf a [tljC or (iv) other compliunce with lhc rcquircments of (he California RPS progrun.
'iCPUC" oleans thl' Califomia Public Utiiitics Commission or its rcgulatory successor.
"!)nergy'' rneans all electric cnerg)' riciivcrcd to Iluyer at the Delivery Point, including any Bundled
Crc*n Energy. PCCI Bundlccl RECs, or other clectric eacrgy delivered to Buyer at the l)elivcr;* Irtrrul.
il
"FERC" meiln$ thc lcderol Encrgy Rcgulatory Comrnissiort ur its regulatttry successur.
&Govcrnmcntel Authority" mcars any intemational, natir.:nai, fcderal. provincial, slate, municipal.
county, rcgional or [oca! g(]vcrnmenl, administrativc, judiciol or regulatory entity opcrating undcr an,v
Applicablc Laws and includcs any department. commission. bureau boad. administrarive ogenc)/ or
regulatory body of uny gor.urnment.
"lIE' means thc hour rndiug.
"()ff-Peak (LLH)" means all hours other than ()n-Peak lrours
"()n-Pesk (HLII)" rneans 6x16 1ltonday ttrough Saturday. IIh, 0700 - HI: 32U(t PP'l'. cxrluding Nl-.R(l
hoiidays.l.
"Project" hcs the meaning.xt forrh on the first pagc h,:reof,
"Project Energy' merns thc hourly Encrgy produced by the Project.
"PPT" rnLrarrs Pacific prevailing timc.
*REC" or "Rtnclrysblc f,rergy Crrdir" meirns thc right to claim titlc to Grccn Atuibutcs attribunlrlc to
the gcneration of elcctric crcrgy front renewahlc cnergy rcsources. RECs arc mcasured in unc megsr*'rlt-
hour iucrements and evidcnccd by a r}?FIGIS Ccnificate A RIC includcs all (irccn .{ttrihutes aiising es
u resrrlt ollhc generation uf clectricity isst,ciated wiG the RI:C,
*STC* strnds thr Standard l'r,-nrn irnd Conditi,rrrs rrl'thc (IPLI('relatin-s to purchasc ald s.rlcr ol(irccu
Atrrit utes,
"WE(:C" mcans the Wcstern Elcctricity Cur:rdinating, ()ouncil or its -succc.ssor urganizatir,ns.
"\YRE(;[S" mcars the Wc.stem Rcncu'ablc Ilnergy Ccnr:ratirrn Ilfonnarion System or its surcessor
systenrS.
"\ryREGIS CertifrcatcsF has tle sarne meaning as ''Cr*ificatc" as dcfinud hy \VRICIS in rhc WRFGIS
Operating Rulcs ond arc dcsignatcd as cligible tirr complying with thc Catifomia Rr:neu'ables Prrrtli.rli,r
Standard.
"WRIIGIS Operatirrg Rulcs" means those operating nrlus and rcquircrncnls arioptcd by WR.EGIS as ol'
June 4, 2007. as suhsequently amended, supplemented or replaced {in whrrle or in part) ktrm time Io 1ime.
Reaainder of page lntentiouolly Mad*
I]
Notwitlxtanding anylbing contained in the Master Agrcerncnt to the cortrary, this Confirmation .shall
only be effcctive when exccuted by both pufiies.
IN WITN'ESS WIIEREOI, the Parties have srgned this Corfinnstion eflectivc as of the Eft'ectivc llats.
Avisla Corporatioq MorganT.t.
By:
Stanley Capital Gmup Inc.
l'.-tt-. . /*'Ur
Nnmc;
Title:l) .-v rv r( - tll rZ.{-{ tt'
l'.Z,a. > r O,- -: .
l"i-ame; Farker CerlfinTitle: \Iice Presirtenr
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