20191231Petition.pdf

RECEIVED
;'0t9t)EC3l Pll l:53For Aviste Corporetion
Michael G. Andrea (lSB No. 8308)
Senior Counsel
Avista Corporation
l4l I East Missioru MSC-]7
Spokane, WA 99202
Phone: [phone]
For Stimson Lumber Company
Lisa Zentner
Dircctor of Purchasing
Stimson Lumber Company
520 SW Yamhill. Suite 700
Portland. OR 972O4
IN THE MATTER OF THE JOINT PETITION
OF AVISTA CORPORATION AND
STIMSON LI,''IMBER COMPANY FOR
APPROVAL OF POWER PURCHASE A}iD
SAI,E AGR-F,EMENT
r iLlU
IMtssl0N
BEFOR.E, THE IDAHO PUBLIC UTILITIES COMMISSION
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CASENO.AVU-E.:C.ILL
JOIhIT PETITION OF AVISTA
CORPORATION AND S'I'IMSON
LUMBER COMPANY
Avista Corporation ("Avista") and Stimson Lumber Company ("Stimson")
(collectively, the "Parties') hereby petition the I&ho Public Utilities Commission
("Commission") for an order approving the Power Purcbase Agreement ("Agreement")
between Avista and Stimson anached her€to as Atlachmert l. The proposed efective
date ofthe Agreement is January l, 2020 and the tenn shall be for one year following the
effective date.
1. Nemec end Addrrsseo of Petitioners
Page - I JOINT PETffiON Or AVISTA CORPORATION AND STIMSON LTIMBER
COMPANY
Avista Corporation
l4 I I East Mission Avenue
Spokane, WA 99202
Stimson Lumber Company
520 S.W. Yamhill
Suite 700
Portland, OR 97204
2. Nrture of Businesses
Avista is a corporation crealed and organized under the laws ofthe State of
Washinglon with its principal office in Spokane, Washington- Avista is an investor-
owned utility engaged in, among other things, the business of generating, transrnitting,
and disributing electric power to wholesale aad retail customers in Idaho and
Washington. Avista also provides natural gas service to customers in ldaho, Washingloru
and Oregon. As such, Avista's rates, chorges, services and praclices are regulatcd, in
part, by this Commission.
Stimson is a corporation organized under the laws of the State ofOregon that
operstes a thennal wood wastc small power electric generation plant located at Plunmer,
Idaho ("Facility"). The Facility is capable of generating up to approximately 6.5
megawatts ofenergy. The Facility is a Qualifying Facility pursuant to the Public Utility
Regulatory Policies ofAct of 1978 ("URPA').
3. Nrmes of Representetives
All communicatiors, pleadings, and orders wirh respect to this proceeding should
be dirccted to:
For Avista Corporetion:
Kevin Holland
Wholesale Marketing Manager
Avista Corporation
l41l E. Mission Ave., MSC-7
Spokane, W A99202
Phone: [phone]
E-mail: kevin.hollandr4,avistacorp.com
Michael G. Andrea
Senior Counsel
Avista Corporation
14l I E. Mission Ave., MSC-17
Spokanc, wA 99202
Phone: [phone]
E-mail: michael.tstacorp.c()m
Page - 2 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
For Stimson Lumber Compeny:
Lisa Zentner
Dircctor of Purchasing
Stimson Lumber Company
520 SW Yamhill, Suite 700
Portland, OR 97204
Daniel McFaIl
coo/cFo
Stimson Lumber Company
520 S.W. Yamhill, Suile 700
Portlan4 OR 97204
Direct: 503-J78- I 551 / Shonel l-ist: 7-i5l
Fax:[phone]
Cell: 503-593-1974
E-mail: [e-mail]
4. Dcacription of Agreement
The Agreement replaces a prior power purchase agreement urhich was originally
approved by the Commission in Order No. 30224, which was issued in Case No. AVU-E-
06- I0 on January 19,2007.t If approved by the Commission prior to February 21,2020,
the term ofthe Agrecmcnt will cornmence on January l, 2020, and will extend for a term
ofone year following the effective date.
Avista witl purchase all ofthe output (net of Facility Service PoweP; ofthe
Facility. Except for any outpul that is Surplus Energr, Avista shall purchase for all Net
Delivered Output at the applicable rate based upon t}e On-Peak or Off-Peak Avoided
Cost Rates for Non-Fueled Projects Smaller than Ten Average Megawatts per month-
Non-Levelized as se1 forth in Exhibit E to the Agreemenl For all Surplus Eenergy,
Avista will pay the cunent month's Market Energy Cost per megawau-hour orthe Net
DelivEred Cost, whichever is lower.
I The original tcrm of the prior power purchasc agrccmcnt was through Deccmber 3 I, 201 l. Thd power
purchasc sgrecment was latcI ancnded to cxtcnd its term through D€cember 3 I , 20 I 9.
2 Except as cxpressly dcfined in lhis petition, capitalizld terms shsll havc thc meaning set forth in the
Agr€emcnl
Page - 3 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
'l o allow for the continuous operation ofthe Facility, the Agrcement allows
Stimson to deliver energy from tle Facility to Avista and for Avista to pay Stimson for
such energy deliveries effective Januar.v l,2020. ln the event the Commission does not
approve the A$eement by February 21,2020, or approves it subject 10 conditions
unacceptable to the Parties, the Agrcement will terminate. In such event, Stimson shall
refund certain amounts to Avista pursuant to Section 5.4 of the Agxeemenl.
5. Conclusion
Avista and Stimson jointly respectfi:lly request that the Commission issue an
order approving the Agreement with an effectivc date of January I , 2020.
. i\7
Respectfully submined this 7 th day ofD ecember 2Q{
AVISTA CORPORATION
Michael G. Andrea
Senior Counsel
STIMSON LUMBERCOMPANY
n
Zentner
ofPurchasing
Page - 4 JOINT PETITION OF AVISTA CORPORATION AND STIMSON LUMBER
COMPANY
J.
FINAL
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TERM OF AGREEMENT.,...
POWER PURCIIASE ACREEMEIIT
BETWEEN
STIMSON LUMBEN COMP^}IY
ANI)
AVISTA CORfORATION
Ii\]DEX
DEFrNrTrONS..................
PURCHASE AND SALE OT POWER,
NSURANCE
CURTAILMENT. INTERRTJPTION OR REDUCTION OF DELIV!,RY
OPERATION
METERTNG
PURCHASE PRrcES AND METHOD OF PAYMENT
FORCE MAJEURE ..... .....................
INDEMhTTY..
ASSIGNMENT
NO UNSPECIFIED THIRD PARTY BENEFICIARIES
DE,FAULT
ARBITRATIO}i
RELEASE BY PROJECT DEVELOPER
GOVERNMENTAL AUTHORITY
EOUAL OPPORTUNITY
SEVERAL oBUGAT|ONS......... .
IMPLEMENTATION
NON-WAMR......-...
AMENDMENT
CHOICE OF LAWS....
NO RELIANCT ON AVISTA,..........,.,.
WAR.RANTIES...
CONDMO}iS TO ACCEPTANCE OF ENERGY....-....-
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I'I;UAL
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26. COMPLIAITCEWITH LA\YS...........
VENTJE
HEADINGS
NOTICES
EXHIBITS
USE OF FACIUTIES
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Communication md Rcportiog
Form of Ergirccrt Ccrtifcadon of Opcrrtions od Meincrnncc Policy
lnrErEorulrctioo AgrrcmErr
Dactiptioo of thc Faciiity
ftrch$. Pricc
2t.
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30.
3r.
Erhi-oir A
Erhibit B
Exhibil C
Er.hibit l)
Ex}ibit E
FTNAL
I2TWI9
Tbis Ag!.mcnt with en Effectivc thtc r prcvided in Scdion 5.I bclow ir rude by and
bctwc€ Avista Corporatioo, r washingtr)n srqx)l-ali(It ("Avisa"), ard Stimson hmb€r
Conptoy ("ProiEt Ddelo,pcf l AvilE r,ld Pmjec Devclopcr rrc somcdim?s lrfcrrEd !o hcrcir
indivirirnlly lr a'Parqf md collcctiwly rs thc 'Partiea.'
WITNEliSf,TH:
wllEltf,As, PftiGd Developer pl!t3 lo continue to opcr.te . 6.5 }{w clcctric
ScncruinS rmi{s} ('Facility') u Plummsr, ldrho: nd
WEEREAS. hrrjcct Dcvclopc bas obteinod rU rccrrsar-v rights rDd udortict o on n
and opcrtc 0rc Facility, inchrding rll ncccrsary rights and suthtritics ftom thc ('ocur d'Alcnc
Tribc of lndians: ard
WIIEREAS, tbe Fecility may prod'.rcc pnrrcr frorn timc to timc *'hich is in cxccss lo
Projd DcvclGpcr's nccds and which Projcct Dcvclopcr dcsitcs !o srli to Avisli; snd
WIrEREAS, Pnrjed Deteloper anC Avisla are panies:o sn agrcerne porsuant lo which
Avista prrdrascs the onput of $c Frilitl which Urccrna cxpit$ by i$ oyn lcflns on
Dcccrnbcr 3l, 201* md
WH.ERf,AS, the Facility rs cooncctcd h a msnlE such lhsl paralld r:pcraion wrt\
Avigul clectricrl syrtcm ocf,urx ard
WHEREAS, Avist and Projcct Dcveloper are panies :o the lrnclronnecdon AErerrEnL
wLich is sa fordr ot Exhibit C. hqrin. and irrorpon'cd rs a pgd of this AErccmcltt: ucd
WHEIIEAS. Projd Dwclopcr dcsirrs to sdl ard Aviste dGires ro prct[rc powcr fiorn
th€ Faliliry nrbject to approvrl ofthc ldrho hrblic Uti:i:rcs Commissioni and
WHEREAS. Projoci Dcvelopcr is <rshall bc e Qualifying F*ility within thc n*aning of
the hrblic Utility RcEulelory Policis Act of lc78 snd tlrc rulcs md rcgulatiom thsrcundqi and
NOW, TIIEREFORE. in consi&ration of the mutual covsunr and sgrocmenr
hercinaftcr ict fofit thc Partics egrcc ar fotlowr.
I. DEFI\ITIONS
Whcnsvcr us€d in this Agrrcrnenr ud sxhibib hcrcto, drc following tenns shdl havc the
following mcanirgr:
'Aerosm.trt" meos this Powcr hrrchrsc furEcorenL ircludiag all cxhibits. aod
any wrioco aaandrrnu.
l.l
1.2 "$_rtry- means average MW
IJ
rcspcctiv€ IucaniB8S 'ct forth abovc.
1.4 'Etrcctiv. D.t." shlll hrve the nr€anrng pmvided in Section 5.1 .
l.5 -Enr,lroEDcotal Altdbutca' nrca6 all csrtifratc$. qedirs, banefits, cnissiorn
rducrions. cnvironmcirtrl sir qurlity crcdits sDd cmislioo.s rEduclion ercdiE, otrscls !"1d
allowaom, howrocvcr cobtld, rsulting iom the avoidaacc of frc crnrssion of ury gar
ch€rnical, or olhcr subflrtr rtl.ibot blc to tE Fsciliry or'Jr gcncratim of cnergy by thc
Facility, and thc delivrr_v ofsuch arcrgy lo 0le cl.c{ricily grid- and irrlude without limitetion,
,ny ofthe ssmc arising ou! ofary curEnt or fuure leSklsriofl ar retulation concerncd with
oxidcs of nitrogcn. sulfur. q: ca:ton. witl pniorlatc nunsr. lqrt onDcrcury, or implcmcnting
thc Unitcd Nations Fnmewort Convcation oo Clirnatc Change ("LiliFCCf-) or dc Kloro
ft,olocol to thc UNI'CCt or grcditrng "arly aaion' with a via, to thc UNfC-'CC. or lann or
ttguledor,s involvinS or admifilslstd by thc Clcan Air Martos Division cf thc F.nvimrm(v:tal
hotection Ag€oc!, r succcssor rdmhirraror (collcctively rryith a:rv statc or feJerrl entrtv giver:
jurisdiction over a prognm involvin3 mnslcrability of Environmcaul Aribut s, the'tAMD-),
but spcificrlly cxcluding invcsrncnt isr crEdifr p(oduction trx !,redild and cash gans
asstrciatcd wi& thc construction or opcr.ti.Jo of thc Friliry ard ofrcr lmancisl incadvcs in thc
fom: of credits, rcductions, o'r allowanccs associatcd with ouincrship ofthc f'acilily ttrrl Ers
applicabl€ to a rtrr. or fodcral incornc :rx obligrdoq if any. Envi:oorrntrl ABributEs also
rnclu& the reponing rights or Renewable Energy Cerdficrtes {"REC\') ssx--iaied *ith rhcse
Envirorrrentel AttribuEr. RECS rr€ &c'.mul{ed on ! Mwh tasis ard onc REC reprErcnts thc
Enviroruncntsl Attributcs rssocietad with onc Mr h of cncrglr. Iinvironmcntri At[ibuGs do ;roa
irludc (i) any cncqy. caprciry. rclilbility or othcr powcr sttdbuas from thc Facility.
1.6 "[rlrllq" mernr thc sla,tric EctErering facilit:cs. including all oquipnent md
stoctu:ls oecessary to gmerec md supply po$er, more peflic'.rlarly described er Erhibir I)
(Dcscription of he Facilityl
1,7 "Frcilltv Srn'lce Porcr" stc ns lhc clcctric powcr uscd by tbc Feility duriog
its opcretion, inch:ding but not ncccssarily limi:cd to punpin& gcncrstor cacitrtiorl cooliug or
o6.r*'is. rcl cd to lhe production of cloctriciry bv thc Far;iliry.
l.t *fEBg rxesns the Fodcral Encrgy Regulatory Comrnission,
lJ 'lrdco.ndatrr Ensin€.rire Cfftificrtlotr" mcans ccrtifications prondcd byr
pmfcssionrl enginocr rcghtcrcd in Wsshingtoa or ldrho, urho has no dirtc: or indircct, lcgd a
egurtable, ownrrship inranst in thc Facility.
l.l0 tlataconncdion Aerscment" Thc Gcncroticvr Inlc,,,*onnectjon Agrccangnt by
wticb N€t Dclivcrcd Ougl rnay be dctivcrcd ino fic ransrnrssion sys:cm of Avi$s d 6c Point
^1
FINAL
ly2ule
FTNIL
t 2/2419
of Dclivery during the rcrar of drir Agrurcnt. Tbe lntsrcornectior Agrc€rn€nl is sa forth in
full d Erhibir c.
Ll l- "I!!sEs@$99!-bix!tr" mcan cll hcilirics rcquircd o intsrconn ct the
Fecility for dclivcry of Na Dctivcrcd Oupul lo thc Avists trusmissim systccr includilg
conncction, ranrfonnedon. switctiog rclaying erd safety equipmcoL htcraonncction Faci:itics
ghsll also include 8ll reltrndry. rDelcring. c=luler tctephone. and/or cornmunicrtion equipmant
roquirod mder this Agr€em€nL ,tgrrdlels of location.
l.l2 "!!!Q' mcans thc ldaho Public Lltilitics Cornmission or its succcrsor
l.la "Mrrlrt Enerev Co.ai rnerns eighty-five perceflt (85%) of oe weightcd
avu'agc of thc ft:tcrcoltincotrl Erdungc ('ICEJ doily frrm Mid{olumbir Mid{ Pcrt Avg
lnd Mid{ Ofi-Pcak Avg lndcx ficcs (*Mid{ Indcx"), or ir suctssor. cr as rgrccd lo by hc
portics whcrc m succcrsor cxisB: pmvidcd howes. if thc Mid{ ludcx is lcss than zcm, &e
Martd Elre'rgy C$t shall bc ooc-hundred rnd fiftccn pcrccnt ( I I 5%) of the wcighlcd aveogc of
the Mid{ lnder-
l.ts "Ii4Ddi!91d',1fu!1;t!" nrcam all elcctric qrcr5i Scncratrd cy $e Fxility. nct
of Fecilfty Scwicc Po*s.
r.16 'Ng.DdiylE Lflht!|U.lcIrt' :rrcrns thc ralc rn dolla:s po m-1awac-hou:. m be
paid by Avisa fr dl N€i Delive(Ed Outpuq rubject ro any timjhtiorE ufidcr this Agrcen:en.
Thc Nc Delivcrsd orrqrl Cofl is $ecified in Seaion I l. I .
f.l7 'Off-Perk" rrcars ali tours othcr than On-Pcah hours
t.lt "qEIc.!' meam thc hour: crdiry 07m thmuBh ?200 Plcitlc P;evailing time.
Montlay thrwgh Sudal including NERC holidays.
l.l9 "Oocrrrirp Ycrri rncans crct l2-nsrft pcriorl ftom JanEary I througlr
Dcc€srb.r 3l.
frO 'Poiot of Ddivcrv" meurs thc location whcre thc Fecility is clcctrically
incrconneqed vith Avislr's rransmissioa syshr.
lJl "Prudc[t Utllltv Pr.cticrr' murs the prscticcs, mclhods. and sct3, iocluding
bul not lirniLd to practics mshodr ard sclr cngagcd io or approvcd by a signifrant portio:r of
thc clcctric power gcncration rnd tnnsmissioo industry. in dr cracrsc of rcaroobtc judgrrrnr
in tir liSht of rh! frcts lnowl or tlrat chould hrve beer krowa el rhe tinc ! decision ir'rs msd!.
that would l"rve bcen erpectcd :o acromplish the desired result in r manfler co{rsisre with iaw,
rcgulation. rcliability, safety. cnviro:rrrntd prot*lion, ecornray. and cxpedition.
5
l.l3 "!!lu' mcans rrcgctran. Orc thoussnd kilowatG cquals onc mcgtn att.
T'INAL
t2J2At9
1,J.2 "fidldulcd Out is" ole nsany outa8e which is scheduled by Oe Pmjeu
DcveloDcr to removc electricel c mcchanieal cquipmcnt fnrm scn'icc for r0air. rcPlaccmcnt,
rnsinicnmcc, safety or any olhcr rcssot1 and which lh.r€by limiB the 8cn.6lng capbrlity of the
Fscility to lcss thm its full tcsd Ep.bility.
l:! 'ltgIIlt|fEICIE" mcans: (l ) Nel Dclivcrcd output p.od'tccd by thc Projcct
Devclopcr's Facitity .nd dctiycrcd lo the Avisla clccrical ryxtcm dunng the monlh whidt
cxceeds I 10'/6 of thc monlhly Net Dclivered OuPur €slifluale ffl the corBponding ,Istlh
spcc'ificd in Scction 6.3; or (2) if dte Na Dclivcrcd OuPur produccd by thc Projcct Dcvcloper's
Facility and dclivaod io thc Avitt!.lccfical sFrcrr duriog thc month is less than 90?i of thc
rmothly Na Dclivcrcd Outpur cstimrtc for thc corrtspoodmg month spccificd in Scctiro 6..3,
thco dl Nct f,telivc'rrd Ouprrt ddivcrcd by thc Frcility ro rlrc Avisrr clccrical systcrr, for thet
givar rnonlr. For clarification, Net Dctiwrd Oulput that ir Surplus F:nergy pursutnt to *.iE
&fmition shall be sold to Avisr at $e price s€t foflh in Section I 1.2.
LJ| "Surohr Energv Cort" mcans *lc ratc in dollrrs pcr mcglwrli-hour. !o bc paid
by Avista fa all Surphrs Eacrgr, subirt to any limiotions un&r this AgrctmcnL ThE Surplus
Eocrry Co6( ii spccified in Scctirm | 1.2.
Ll PLiticct nctet,ntr hA ndcnt 1ry451. Propct Dcvclopcr wanans ad
rtprcscnts to AvisL thrt io cnrnng ino ftis Agrcamnt a:rd drc undcroking by Ptojcct
Dcryelopcr of thc obliptins sa fimh hcrcin" Projc.cr Dwclopcr has im'csrigttcC and dcncrmincd
tiat it is c8p.blc of perfcming hereunder end hr not reliod upoc the rdvice. erptrierB ot
cxpenise of Aviso in conn€ction with the rrrnsrdions cotefiplarad by this AgEdnent.
22 Proiccr Dc*'clopcr Exrns. All profcssionals o{ cxpcrls insluditrg but not limited
to. engincqs, grtoracys fi rccounts r, rst Pto.pt Dcvclopcr rny havc coosultod or rcliod on in
urdcrtating thc tnnrac{ions contc plrtcd by t\ir Agrccmcnt he1,c been solcly thcs of Projcct
thvelopcr.
3. E48&ttTtES
3.t N-o__]l1pgnry bf Aviso. Any :cvieu acccptancc or tiilur ro rcvicw Projcct
Dcvclopct's dcaign, +ccific.lions. oquipmetrt or facilitics shqll not bc an cado(3emcfi or a
confirnuior by Avi$e" and Avisrs rrrrta m unn-an:ics, erprliscd or amplied" rGgrrding eny
8spccl of Pruject Derelope/3 design spcr"ificerionr. equipmcnt cr far.ilities. inslulin& but nol
limitcd tq safery. dunbility. rcliabilit-v, r&En8th capscity, adcquacy or eonomic fcasibiiiry.
3.2 Oualifvinc Fecilitv Status Projccr Dcvclopcr warrants thrt thc Fscility is a
'Qurlifyicg frcitiq/. I(t t t€rrr is llssd lnd defiocd in 18C.F.R. $$ 292.10t.292.207. Afte/.
initial qrnlificdion. Pmject Dcvelopo 6hall trlte ruch strps 6 may b. r€quired to e@tnrcly
mrintain thc Facility's Q.r.alifying Facility sLtus during thc rcrm of thir Agreoncnt snd Prujcct
Dcwlopcds failurc to adoquetcly mainuin Qualifyica Faciliry saurs will be a matcrid brtech of
his Agccment" Avi.Ets rcscwes lhc ridrt to rwicw thc Projcct Dcvelopcr's Qualifring Facility
2. rc-BELIANEIQNSVITTA
f IN.4L
t2nal9
5t!IE md Bsocirtsd $rt porr and c.mplir,nce docurmts et any time dunng thc tetm of this
AgEcricnL
Prior to thc Effcctiw Date thc following ecdqr rnust havc c.ccu:rcd:
4l Liccnsrs. Permits ard Aomrvalr Pursront to applirble federaJ" sl8te. tribal r
locrl rcgulationc hrjccr Dcvclopcr $all ltrintaii in gurd $ading rnd cftca ell liccr$cs, p.rmits
c ryrovels n€ccslry fot Projcct Dcvclopct's opcratiors ircluding. brn aa limitod o, ccnliancc
wi& Sr$pon B. I t CJ.R 0 29220?. Liccrucs, pcrmits and ryprorrals rbell imi.tdc but shall not
bG timitcd m lribal, stst? and local htsiqess l,cEns€s. dwironmcnul pcrmiu approvalt for Fd
srorag!, walcr righK and othcr necessery aes.flrelr end lcas€s
a3 lnsurarrcc. Pro,let Dcvelryer stul) havc cornplicd with Sccrion 7, lnsururcc
as hitiEl Yclr Monthty Nd Dclivcrcd OutDur ADsuqts| Projcct Developct rhEll
hrve pmvidcd to Avi6E thc lnitial Ycar Moodrly Ncl Ddivriod Olrpul Eslirnet6 in lccordancc
witb Seclion 6.3. l.
a l'Etllr ol' AcRr-EililaN'l
5.1 Subjoct to &e ptovisions of drir Scction 5. this Agrccn:cnt shrll bc cffcctivc el
fi)00 houn oo Jrnuary l. 2020. or nrh otlEr dae as ondgrcd by Lhc IPUC, (*Etfcdivc Darc').
Pos{f Jxr chrscs pur$rnt to (his Agrecrneot shdl coorcE re r4or tlre Eftbctivt Det.E.
5J Proix;t Dcrclopcr rnd Avirtr stulljointly pctition tlrc IPUC ior en orda
rpproviag tbc Agrer@rat This Agrwncnt b couditioned upon thc appmval ud daeminuiou
by tbc U'UC th8t *rc pri*s o bc pald for clcoic powcr are jun ard rcasonrblc, in thc ptblic
inlcras( dd rftn hc ccts fururrad by Aviso fm rurtfuscs of eloctric powcr fiom Scllcr arc
legitimare cxp€nrd.
5J In thc cvcm $!t tllc IPUC frils m is-srx r finrl or&r 4proving thir Agrucnrmr by
Fcbrurry 2 I, 2020, neittcr Psrty shall havc any funhcr obli6arions o purchrsc or scll elcctic
powe hcranndcr. md this Agrccrurt rhall tcrmimtc on Fcbruary 21. 2020.
5.4 In tle evenr $.r this Agrermcn: is terrninrrd lxrsue,:ll lo Secrions 5.2 or 5.3,
excepl as olherwis€ pmvide4 the Pmjcct llveloper shsll refund .nrounts lo Ayise. Thc refund
rmount for elch [oal} xhell bc cqual tc lbc arpunt Fwionsiy peid by Awisu for elcctnc powe
rccaivcd by Avira during srrch monrh lcss drc alithmctic product that is obairEd by muhiplying
thc nurnbcr of mcgr*rtl-hourl during such :mnth fc whi*r Avkrr hrs paid. by thc lcsser of: (i)
the Ne, f,ieliv€rcd Ourput Corl 3cl folth lll Sectioa I l.l br such moorb. or (ii) tbe Mrrtet Encrgy
Cost for such mooth. ln the ervenr rhar Avis', h!3 not paid fc ehcric power dclivered by frojoct
Developcr bcfcr this AgrEsncat is Eminrcd pursuant to Scctions 5.2 or 5.3, Avisn slull pey
for such powcr at thc lcsscr of: (i) Sc Net DclivErEd Ouput Co6t s:t fonh in Scction I l.l for
sucb mndr. u (ii) thc Msrta Encrry Cost for such month.
T'INAL
l2/2419
5-5 The l.fm of thc ASrefiicnt sh.ll bc fcr ofl. ( | ) year following '.he Effeclive Drte,
uolc's laminetcd carlia by tcrms ud conditions conuincd herein.
6 PURC'IIASE AND SALE OF rc
6'l Prolrr Dcveloper sh&[ sel: rnd dclivcr to lhe Poa of Dclivcry and Avistr shell
purcblEc rU Net Hivcrcd Orlput
Cl Thc Fscility is d6i8ncd, aDd hr Prcjca Devclopcr shall op€r8tc '&c FEility in E
manncr slrch that thc trorly rhcdulcd rmourrt of Nct Dclivcrcd Ougut docs rnt crcced 6.5 MW
in rny hour. Avistr Bh.ll hrve the right bld ool fr. obligation to ptrrcharc rny Na Dcliverd
Ouprir ftom thc Fscilhy in eroess 016.5 MW in any hour. The maximum mnu&l srnount of
clrrrric powcr thrt Avirta is obligrtcd o puchac haurndcr shdl bc 56.X0 rnsgrw.[-houn in
any Opcrathg Ycar which ir ! norFlsp Yct, or 57,0'96 rncllwa:t-bous in any OJrrating Ycar
whhh is a l-cap Ycar.
6.3 Nei Dclivered Clutnut Amoun:r.
63.1 lnitial Na Dclilclsd_Qctrut E$indHi.. Projcct Devclopcr shall pmvidc to
Avist! Ncr Dclivcacd Ou+qt e:tirDltr! for clct of tirc twclvc comecu:ivc nroaths thrt
bcgin with thc mom} c,ontrining thc Effodivc Datc. counting lhc month during whic}t thc
Effcclive Drtc occul:I mrth onE (lritiel Ycar Monthl:r \ct Dclivcrcd OuPul
Esrimatcs). Flojcct Dcvclopcr shdl provid. to Arisrr such tnilid Yer Monthly Net
Delivcrcd Ourput Ertir arcs by writtarl noticc in eccordencc with Socrion 29 no lata thrn
fivc (5) calcndar ibys prior m thc Effoctivc Duc.
63.2 Suhcqu$t M-o$hly Ng.0clir:c'rrrl O_ltlulLlrimflIe$. At thg crd of
nrali ninc bllowing frc Efrc.iivc D!tc. ad !t lhc crd of cvcry third nro:rth thsrcrftcr,
Prcji.ct Developcr shall providc o Avisn Nct Dcliv€{Ed Ourpm esrims:6 pcr'oaning r,o
each ofthc additiornl con*cutive three moflths for which Projerl Dcvclupcr hrc not ya
Cclivcrtd to Avisb Na Dclivercd ()upn: crinnrcs, so lhsr hoirt DcveLopa'shdl tuve
providcd io rdvaacc on a rolliag basb to Avl5tr slx mo:rthr ofNa Dclivcrcd Oulput
calirnst6. Projco Dandoper shall provitL nrt Nd Del:Errd Ou+ur cstimstcs lo
Avisn by witten no:rcc in accordnrcc with Scction 29. no htcr lhm 5:00 p.m. of thc h*
hrincss dey of thc monlh during whidr fiey lrr Equir€d !o be providcd-
C3J Coacnt of Na Dclivrcd Ournrl Esrimatcs. Atl Na Dclivcrcd Outpnt
cotimatrs shall bc cnpn*ecd in kilowtt-houn by manttr.
63.a Flilure to Prolide Ncr Delivcred Ourout Esrimares. lf the Project
Devclopa fails o pror'ide ro Avistl Nar DclivereC Ourput €limrt* whan requrred herer
pcnrining to my mooth or nmo*s, Avisa siull &tcminc the Net llclivered Ouput
cstimatcs pnaining to srrh roonth or montlrs, and thc Na Dclivcr.d Output cstirritB
g
FIi\AL
l2,2Al9
shall be binding for F'trpo,ses of lhc Agccrcnt as drough th€y werc prcpereC by Projecl
Derrc.loper and povided lo Avisl,o as rquircd by the Agrtcnrent.
633 Proiect Dcvclon:r's Revisions of Na Dclivcrcd Output [stimatcs. Aftcr
thc EtTcctivs Dstc, Projca Devclopcr may rcvisc my funrrc Ncr DclivcrEd Outptit
estimrtB by proviliag wriacn noticc m htcr than 5 PM Prcific San&rd tim. on llc 25u
dry of the rnonth thal is prior to th€ rnffth to be rcviscd If th€25d doy of th. month
hlls m a rryeelald or holidry, thcn *rilrat roticc must be received on lhc lr3l bosincss
dsy p,rior to ah€ 25'h &y of the rnon6. For exrrnplc, if Project Dcvclopcr wanrc to revisc
O|c Nci Dcli\rcrEd Ourpul csdmEtE for Autusi, ftojccr Dcvclopcr must submit a rwiscd
sch.dulc no hEr iba! July 25t or thc last busincss day pior to July 256.
63.6 Avisu Adiustmcd of Nct Dclivcrcd outout lstimarc. lf Avisra b cxcuscd
frora rccepthg fic Prtojcc't Dcvelopear Nc( Delivrfcd OuFut ar sp€cif)ed in S.ctior 92
or if uc Projccl Developct dcclrts a Suspension of Encrgr Delivcrics as ryccified in
Scction 9.3 and thc Projcct Dcvclopcr declarud Suspcnrioo of Ena1ry Dclivcrics is
ac*ptcd by Avisr+ thc Nct D€livqEd Orryrr c*imarc rs spcsificd in Scctim 6.3.1 for
thc spccific rnonth in which thc rtducrion or suspcnsion under Scctioo 9.2 or9.1 occurs
will be rcduced in accordoncc with thc iollowrng:
Whwe:
NDO-
SGU - (s)
(b)
TH-
Raultim frrmuh bcing
Cuntac Mootb' s Na Delivcrcd orr@ut €stirnatc
lr'Avist8 k cxqlscd fron accrpring lhe Projcct Devclopc's Net
Delvcrld Ourput !s epecified Ll Seclion 9-2 thls vdue will be
equal ro 'ihe perccntsSe of curailrn nt I specified by Avi3re
multiplitd by tlrc TGU r &finod bclow.
If &c Pnjoct Dcvclopcr dschrcs r Suspcosion of Na Ddivctcd
orlgrt ss rpccifrcd ir Scctior 9J thir value will hc lhc grncntion
unit size rating of 6.5 MW..
Gcrcradon unit sia :ating of 6.5 MW,
Actu8l hour6 thc F*itity's lia Dclivcrtd Ouput war cithcr
rcctrccd or sispcndcd under Scstic'os 9-2 or 9.3.
Ac al rorEl hou-s in thc cur:cnt monlh
Adjnstcd
Ncl DclivcrEd
Output
=*--((SGU x NDO
TGU
BSII ))x (
- 10-
TH
TGU =
R,SH _-
FI:iAL
t 2/2419
llris Adjuxcd Net Dclivcred OuFol estirnetc sill be usad in applir'eble Surplus Eoeqgy
calcularims for only thc spccific rrontlr in which Avista was ercused &om accepdnS the Net
Dclivcred Outpnt or dtc Projcct Dcvelopcr dcclercd a Suspcnsion of Elrcrgr,
6.4 Eaviroqmcntal Amibutcs. Owucrship of Environrncntal Attributd Ehsll bc daermincd
conriircnr with sppliceblc Sutc urd Fc&tal law.
7. !Nq8^!,eE
7.a Bu:incss lnsursncc. Prior to opaating thc Facility, Pmjcct Dcvclopcr. rt bis ow[
cos( shdl obtrio 8rld maintdn lhc foliowing insrancc in forcc ovcr tbc Terar of this Agttlcmcnt
ard shall provi& ccrtificatcs ofell insunncc polichs. Avistr's ecccplancc of thc ccrrificatc of
imr-uancc is not intlrdEd lo, and will no( rtduoc, ii:nil. affec:. or modi! the prirnary obligatims
ard licbilitics of Ptojcct Devclopcr under thc provisioos of is Agrccment, Project Davclopcr
must proviJc noticc of carrcllrtion or notic,c of ch.n5€ in policy tcrms d least 60 dE)6 prir !o
rey chaogc or cmi.nation of drc policics.
7.1.1 (jsrcra] Liabiliw. Projoct llcvclopcr shell carry and rminrun
compehansive gmcrrl liability insurucc in r fonn acrxptable to Avisa wirb coverlga of
not less than 52,000,000 pcr occurrsnc., including covcagc of bodily injury. propcrty
darage liability,.nd cor rrctrral liability spccifically rclaai o thc in&mnity plovisionr
of this Agrctatc(n. Thc dcducrible will rnt crcccd thc Projcct Dcvckpcr's liurrirl abitiry
to cover claics and will mt bc grcrrcr dtan prcvriling, practiccs for similar opcrarions in
thc Sratc of ldrho .
7.1.2 Progcnv lnsurancc. kojccr Developcr shall carry onc ruinain pmpcrty
insururcc for thc firll ,r?hcErn€nt valuc ofthc Facility in a form arceplablc to Avist& e
dcducliblc oor to cxccod the Projcct Devclopcr's firumial rbility, and will oot bc grcrtcr
then praailing praciccs for similrr ogcatkrns in rhc Snrc of ldaho.
7.lJ Oualifying Insurance. The insurare coverage requied by tiis Section
7.1.1 must bc obtrincd from !n inslnancu l'8rief, liLused to c(rdu(, busirrs$ in :hr state
in *tich thc Scrvices arc lo bc Fcrformed, murr bc lcccptablc to Avinn rucn alrccpt.ncc
not !o bc u[rrssoorbly wittbeld. but in no 6,cDt b!\rE lcss th.n an A.M. Bcst Rlting of
A-. Class VlIl. Thc poticics rcqrircd urd:r tnir Agff ncrrt mrrst irclu& (i) provirions ot
endorscrrcnts naming Aviru ard i:s dircctot\ oflics: rnd cnployecs as sldilional
insurtds. (ii) Avieir ar e lcs peyce as applicrble, (iiil ! crose-liebility and sevenbility of
intt 6t clalss. snd (iv) proviriom srch tht the policy is primary insurence with respesl
o &c intcr*a of Avisli lod &ar ory dircr insrrancc mair:.eined by AvistE is cxccss and
uot mnfibutory.
7.2 Ensinccrino Cfiiicstions. Projrt Developer shall maintrin cumsnt and effectivc
lrdcper,dent Enginecring Ccrtification!.r to thc rdcquEy of $c Operations end Mdntmricc
Policy srbsnndslly in the form 6 shown in Exhibit B ard shall, at Avisla's reulorublc wriucn
rqulst, povidc to Aviste copics of nid Ccrtificstiotrs within sixty (60) days rftcr $ch rcqucst.
Failurc o pmvidc such docrgDcflEtion shall bc dccmcd to bc a default urdcr Soqion 15. I .
. .
FI!TAL
t 2n0/t 9
& CLRTAIL}IE\T. INTf,RRUTTIO:\ OR Rf,DUCTIO:\ OF DET,IVERY
Ar.ist! ruy trguirc Projcct Dcvelopa'to curtsil. intcrrupt or rcducc dclivcry of Na
Delivacd OutF.rt if, b accordgncc with Scctioo 9.2, Avisu dB'rftlincs that cufiailrncn'.
LncrrupliJd o,r rBducrion is rscgsrry bccausc of fore mnjeurc or to prolcct pcrsons rrd pmpcrty
frcm injuy or demaga. or b€ccusc of €mergcncts! nocc&rary systsrn ,Eirrcrsnce. $atsm
modificalim or specid opcrating circum$rncrs Avista shall usc its reasonrble efforB to Leep
any pcrM ofcrntailmenL intcrruption. or rcduction o r rninimurn. In ordcr not to intcrftrr
unrcasonably with hoj€cl Dcvclopcr opcnsoos, Avistr Ehdl girc Projcct Dcvclopcr rctoruble
prior noticc of rny curl8ilmsnf i crrup:ir. or rcductioL thc reason for is occurrcncc ard irs
protsble durstion.
9.1 Corununicatrons and Reoorlinc. Avista and drc Projcct Dcvclopc stdl tnriatain
appmpriatc opcratiag communicalioru thrurglr Avistr's flesignacd Dispotch Facility in
accordancc with Erhibit A of thir Agrccrnem.
9J Eri;14elernlcssptrtec_e-[.ElrcQle.!_Brycr.
9-2.t Avisu moy intcrntpt" susgcod or curu:l delivery. rcccipa or Ecccplrsce ol
dclivcry of porvct ifAvista rcasonably derrmincs consistcnt y.ilh Pn dcrfl (Jlility
F:ecticc thn fhe failure ro rb so:
9J,l.l May cn<lengcr lny pcfsror or prof,crly, or Avista'r clcctric
sysrrn or rny elccric systrrn wift which Avistal systen is intscanncclot
9.2. I J May caurc. or cooributc to, m imminent significanr disruprirr
of clcctric scwicc :o Avrstr'r q smth€r rl.iliry's customcrs:
9.2.t3 May intcrfert with any crrnstrrrtioc. insldhtion. inspecrion.
terting rwcir, rEplsr,crncn( irnpmvcmrnt" sltcration. modificqtion. operation, usc
s maintoncc of. or addittoo o, Aviltsh clccr,ric syslcor or otircr popcrty of
Avirts.
9J2 Avisu sh8ll promptly nod$ Project tlvelopr of the Ersons for my sucn
interruptitxl, suspe$ion or cutuilnent providal for in Scrrirn 9.2.1. sbov€. Avirl. shsll
usc rceroarble cfiorB to lirnit $r dultioo of uy auch disconaection, hicrruptioa.
sr.rspcnsion or eurtailmqrt
- 12-
9. OPERATIOT{
} TNAL
tL2Ul9
9.-1 Proiecl l)r'l'clopcr :)cili:r(d Suso$1si(,n o, [.:rrfs\ Dcirr.'rr.:
93.1 lfthe Prujccr Devclopcr/s Facility cxpcnences r forced outage duc to
€guipmc ftiluE which k mt c.us€d by rn cvcrt of fotce ,nri6lrE or by cglEct,
Cisrcpqir or lael of rdcguatc prwcnutivc mainrcrrs,rE€ of thc Pmjcct Detclopcr's
Facility, Projrxt Dcvclopcr m!y, afrer givrng noticc as proudcd in Stuion 9.3.2 bctos,
brnponrily $rsFnd all deliverics of Net Deliv€rtrd Energy lo Avisra frfir thc facitity for
frorn individual gcneradoi uni(s) wirhin the Frcility impact d by fie forccd ourage fc,r a
pcriod of mt less tlun 4E hous to concct tre forccd outagc condition ("Declared
Sucpcmio of Erctpr Delivcricr'). Ttc Projcct Dcvclopcfs Dcclarcd Su+ension of
EDErS/ Dclivcd.x will begi! 81 thc srur of ilE trod fu[ hqr follorving thc Pmjcct
Denrlop.t's tcleptonc rrctificatior rs rpecifrcd in Scctioo 9.3.2 and will continuc 6r dre
lime as sp€cilied (oot l€ss lhrn 4t hours) in rhe wriu€n noti{icltion provided by rhe
Projccr D€velopcr. Ir the noflb(s) in whicn the Dechred Suspe'uion ofEnergr occuned
thc Na Dcli!rcrcd Encrgr Amounl will bc adjutcd as sprxified io Scction 6J.5.
93.2 lf $c Prcj€ct Dsvclopcr drsirB to initiatc a tlcchrcd Suspensi:o of
Ercrg5l Delivcries ls pmvided in Soctior: 9.3. I , dtc PmjcJr Do'clopcr shall notify thc
DBigrar.d Disp.tch F0cilitv by rclc?bone. T'he beginning hour of thc Declarcd
Suspcnsion of Energy Deiiverics will bc et lhc earliesa:he rext full hour aftci
makint tclephonc contact wilh Avigo. Thc hoieo Developcr shell, *'itbin 24 hours
afrrr tbc acl.phac contrcl" pmvidc Avista a wrinen maicc in accsdancc with Scc'rion 29
thsl will coltrin lhe bcgrn-oing hour rnd duntion ofthc Dcclartd Suspansior of Encrgr
Dclivc:itr 8nd a dcscripioc of rhc conditions that cousc{ :hc Projcct Dcvclopcr to
iniriere s Declsrtd Susprrsion of Encrgy Dcliveries. Avistr srell:wiew the
doanmentetion poovidod by thc Projca Devclopcr ro dcterming Avistr'B acqrrncc of
Oc dcscribcd forccd ouugc ss quili&int for s Dcclarcd Suspcnrion of Encrgy
Dclivcriss es Epccif cd in Scction 9.3. l. Avista's acccprnee of thc Projcl Dcvelopcr's
forDod outltc as an acccpablc forcrd outrgc will bc bascd upon thc clcar documcntdion
providcd by thc Projccl Dc'vclop€r rhrt thc forced outagc is no: duc to an cvcm of FoEc
Majeurc or by neglecr, dkteprir or lacl of rdcqute prevot live crain:eruncc of the
Project Develop€r's FL*il i t-v.
9A Schcdulcd MEintosocc. Oo or bcforc Janua"? 3 I oi cach calendar ycar. Projcct
Dcvclopcr shatl subtnit a writcn propoccd maintcnancc rhcdule of significrnt Frcility
mahtcnancc for that calcndrr ),c!r md Avista anC Prujccr Dcvelopcr s!.all mutually rgrcc rs lo
th€ lcccp$ility of tbe propoec<i schcdulc. The Psnres dcternioatioo as ro thc accc?kbility of
rhe Projecr DeyeloFr's tit:r€able fur schalulcd maintmnce shall uke into considcretion
Prud€at Utility Pilricci, Avist! sysEm rcquirErnctrts .rd thc Proicct Dcyelopcf's prcfcrrEd
schedula Neithcr Party shall unrcasoubly withhold ecceptance of dic proposcd maintrnarEr
schcdulc. Thc Parrics shall coopcnrc in dclcnnining mutualty acc?tablc Facility dorrn rimcs a
mainEolcc slrutdowns.
-l]-
FTNAL
t2.4Ul9
95 Comolisncc with Plrmits. Lrccrrs!'r. ,\uirrxir:atiunb and Othcr Righs. Project
DEveloper shall obtrin end cornply wit"\ rll pcrmits, liccmcs, suthoriz!:iona &1d ol.tr righb
roquiral to o\yn opcrsle, u$e and maillsin thc Facility, 86 rhey mry changg from :ime !o iimc.
Proirt Dcvclopcr stull furrish to Avirls o.l rcqucst copicr of rll daumcnts grntint"
cvidcaciog or otlrcrwiec rclucd to srch pcruri.s, liccnscs suhorizations rnd rigbts.
95 Proj€ci DcycloFr! Ri.t. Pmjcct Dcveloper sl[ll orvn, opcnarc. usa and oraiottio
lhe Facility at iu own rirk rnd erDqtsc in complirncc wi'.h all rpplicable lsw!' ordinloces, ruhs,
rcSuhtioos, cdcrs rd otbcr rcquircrsrts, mw or hcrcafto in cIEc! of any govcrnmcnul
authority.
9.7 4UfU&fb,elrslcct. Prlojo.t Dsvclopcr shsll pcrmit Avisu lo inspcct fic
Facility or t}e operatho. urc or meiotauoc-c of 6c Frility. Pmjccl Deoelopcr rhall providc
Avista rt sonrbl. sdvancc notice of my such tar or inspccrioo by or d thc direction of Projcct
Develqcr.
9J Proiccr Dcvclooct Obligtions inAqxrdaoc_c-rrUhfudc_0t UuliltIrasdm.
P'o!:ct Devclopcr shall own, opcntc and meintein thc Frcility and rny Pmjcc-t Devclopcr.owncd
lnrcrconDccliqr Faciliri€s so ts ro tliow rtiiable gcr:eration md cielivery ofelccnic cffrgy to
Avinr for thc full lrrn of thc Agrearx* io reordancr wirh Prudcnt Utility Praclic€r.
t O. IIt ETE RIIi G
la.l A powcr ntcaer qrrcally locstcd sr lhc Pcint ofDclivcry at Projcct Dcvclo,pcr'3
erp€rr* will reglsrer the Ncr Dciivered Outprt g*r€rarcd snd delivcre(, to Avila on an horly
besis.
lg.2 Ttrc powcr mctr:r will record powcr. which flows f;om tbc Facrlity to Avistr.
AvifB lnd Pmjc.r Davelopcr both siall havc thc riEht to rrrd and rcccivc rcadings tmm the
powcf, mctcf,. Avistr shsll rcrd ahc mdcr at least ooce a month to dcrcrrninc dr amount of Nct
Dcliv€red Oulpur in eech caleadar mnth. Po*=r dcliveries in fiy nondt shall bc cdcuirr€d
boscd on information from metcr readints with thc al8l€ sdjl6tmcltt rudc by pronting muered
amounts lo E numbo of drys in suct moorh A*ual rxonthly Nct Detivercd Ouput slnll rc
dacrmiacd tom rhc rccod dcvchpod Avista rhrll oyn and ngi:trail ail mtrrs rrscd to
dacrninc thc billing hcrcun&r ad tbc mcrc(s) shlll hc lmrd as spccificd in thc
Inrrrconnc.jql Agrccrr.cnl Such r-Et{r(s) shrll bc tcstcd ard inspocted in B&ordance with
Avisal metcr reotiag pmgnrn !s lilcd with tlr Washingron Udlirica ard Tramportrtron
Commissim Andor the ldrlo Pr,blic Utiliics Cqnmirsion. If requcsrul by Pyoj@t Developer,
Avistr sball provi& copics of rppliceblc lcrt rnd clibr.tioo rccords urd calcuhfions. Avisr.
shall pcrmit a rcprcscnt ivE of Projlct Dcvdopcr to bc prcscnt at rll timcs thc macrs arr bcing
lcstcd. Addhiondly. AvisB rtrrll tcst cny or a.ll of such mctcrr ar mry bc rcasonebly bc rcquircd
by ftojcd Developer. Prclrt Dercloper shall Jxy reaeonable costs for such mqu.s:ed lest
unlcss eny of thc meEr3 i$ fqrnd to be insccurel. in \rtich ce3e Avist shrtl lny for $rdr Esr.
- 14.
FINAL
tznut9
l0J Adjustments shrll b. mad: in mEle, reldings ad billiogs fo( crmrs i, a rrcter
resdinS or billing discovercd within twclvc ( l2) rhon$s of $c sior. Avista slull Dolify Projccl
Developcc of any crmrs &rising torn rract calibntion. reading or billing. Avisb stLll p.rmit
ruArcscntativco of Pmlrt Dwelopcr o inspccr all of Avista's rccords rclating to thc dc)ivcry of
clectsiel cocrgy b and purchasc ofclec-tricrl cncrgy by Avish hqarnder.
I I. PURCHASE PRICES .\\D Mf,THOD OI' PAYMf,NT
I1.2 Sumlw Encrey.(_osL For ail Srplus Encrgy, Avisn siull pay to lhe Projcct
Dcvclcpcr the orncat rnonfi'E Mutct Encrgr Co,rt pc megzwatt-hxr or thc Na Dclivcrod
Outrirl Cos: sFcificd in Scctioo I l.l. whictcvcr is lsrver.
I tJ P0gncots to Pro,c.t Dcvclopcr. For cach month during Lhc IGrn of this
Agreancnt so loog 8s lhaa d! ster6/ dcliv€rier m.de aod,'or pa)'mcrls du€ h€rrulder, AviEL
sb.ll prtDarc s strtefitnt brrad upfi Nct Delivered orrtprt -:d SurpluE Enrgr deftvcred o
Avisu- Paynrcat by Avistr for rmounts billed stnll bc pard no larrr tran thel5s day of the
rnooth fultowing ltlc prior calcrdu monh billing pcriod. If thc Duc Datc frlts on s roo$urincss
day of cithcr Pany, thcn thc plymcnt shall bc drr on thc ncxt following busincss day.
ll.a Paync{r6 t(!,\risB. lfPmjecl DeveloJrer is cblig&ed to m&ke any peyment o.
rcfund ro Avist& Avhr 6hdl bill Projcct Dcvclopcr for such pr!,mEnt& Prujecl Dcvciopcr $all
pny Avisr on or beforc ttrc l5th day of thc mnth follo* ing thc prior ol<rrdrr mcrth billing
pcrbd or lco ( t0) drys afrcr reecip ofthc bill. whichcvct is lrtct.
ll5 lorcr6r. Any FynerB by Avista io Projod Dcvclorcr oI by Pmjed Dcvclopcr
ro Avisrr. if rlol paid in ftrll within thc linritadons sct fmh in SGcrions I l.l rrd I 1,4 rbove. shrll
b€ ldc. ln addition b &e ltlnqjics for such an cvenr of d.fauk trnyunt to Secrion 16, the l*e-
poying Psny shrll bc rrcsscd e chlryc for late prymant equal to thc lcsss ofscvcn arrl rx* helf
Frccar (7.5%) pcr annurL r thc gBrimuro rrtc dlowcd by thc laws of tbc Sno of ldato,
mrltiplied by tfic ovctdue amqut.
tt.6 Ser-Olr. Pmjccr Dar?lopcr !8r1e3 dur Avista may sct ofrany and rll arnounE
owod by Prolxr Developer lo Avis., again* any currurt c futurt FyncnE dtr Projo.ct
Developcr un&r tbis AErEeme
ll.7 Wirc Tnmfc(. e,ll paymant shall bc rnadc by ACH or w:r. ransfcr in
actordrrcc with furthlr sgrurore of the Perrix.
- l5 -
ll.f Na Delivcrcd Or.rmut Cost For ell Na Delivcrcd Output rcccived by Avina foreh hour that is nol Surplu$ EDCTB, Avista shall pey $c rpplieble na bascd upon the
fotlowiag On-PcaI or Off-PcaI Avoidcd Crrst Rst6 For Non-Fudcd Projear Smllcr Than Tcn
Avcrlgc Mcg.w!t6 pcI oonrh - Nm-Levclizcd er shown in Erhibii E
FINAL
t 2,oal9
IL FORCf, ]\I,.1JEURE
l2.r Ncithcr Pany uhall bc liablc o $c othcr Party for, or be considcrql to bc in
brcach of or dcfrult urdcr this Agrecrncnt, on rcorrn of my dclay in pcrformrncc duc to anyof
thc follouriry cvcotB or any dclry or failure o producc Na Dcliv('d OUFUL q to, rcctivc or
acccpt N€t Delivcrcd Output duc m any ofthc follow:ng cvcnts:
l2,l,l Any cEuse or cordilion bclond such Prdy's rs.sonabic contml which $uch
Party is umblc to ovcrcorr by tlr cxarcie. of rcasoruble diligcnce (incluling bu not
limitcd to: fire' food. carfiquake, volcr-'ric sctivity, \vin4 droosrrt E d ottcr acts of ttre
clcrBcnb: court ordcr and aa ofcivil :nilitary or govcmmotd sufhodlyi flrilc hEkoul
and orher labor disputc; riot, iosuntaiol. sabotrgc or wrr, brceldo*n ofor danngc ro
hciliries or cquipmcatl electrical disturbance aiginating n or trsnsrnitled througi such
Panys electric syslcrn or eny electric cystcrn with which r{rch Prrty's rystan is
intrrcoancctEd: rrd, arr or ornission of ury pecon or cntity olher *ran su,ch Patq. and
Party's corlraaors or supplicrs ofrny ticr or anyorc e'ting or bchalfofsnch P!rty): or
l2.lJ Any aeion utcn by srch Parry which is, in thc solc judgurcnt ofsuch
Pany, rrceis&? or pndent to Fot€d tle oFratioq perfofinance, integnty, reliebility or
stability of sl.Eh Prrlyr cloctric syttsn or rny electric sy$em *ith which such Pn/s
elccfic systern is inlcrEonncctcd, whctlEr srxfi rCsrs occur aul,o[uti€rlly or rnsnuslly.
lzJ h thc cvmr of ary forcc Majcurt ocourcncc. thc tinrc for performsncr dEtcby
&laycd dull bc exEndcd by a pcri:d of tim€ rcaronably noccsssrJ to cornpcrsatc for such
delay- Avisn shall not be rcquired Io poy for Availeble OutFJt whach, a.s r rsult of any force
fiujcurc cvenq is not <lcliyqred. Nothang conuincd h this Section shall requirc any Pany to
Ettlc Eny sfike, loctour or othcr labor disputc. In thc evcnt ot-a forcc mrjeure occrrrrsrcc which
rvill atfta pqformrncc undcr this Agrccm.[t, thc nonpcrformrng Prry shrll providc t]rc ot]rct
Prrty wrificn noticc witfiin founeco ( 14) dr)6 lfcr thc occtrmnoc of thc forc majane cl/ent.
Srch mticc ehall Lrludc tlc Fniculars of lhc ocunrncc. rsumnccs !h&t suspcnsion of
pcrfmrmnce is of m graret *ope and of ao Iorger du.ration ths is requirEd by the force
majanre. ud that bcrt cffo.lr are bcing us.d 'o rensdy ils inability !o p(rform.
IZJ Forcr rnejanrc shell iocludc an ci*tricrl disturbaocc thlt prcvcas rny clectric
dclivcrics fiorn ocarring ar thc Poid of Dclivcr.v.
13. IIT.DEMNTry
l3.l Projct Devcbpcr sball il&mni!, dcfcnd and hold hamdcss Avisla" ils dirtctors.
offtccrE. Employc6 sg.ntr 8rd rEpItscfltativcs, against md fior: any and all locscs. cxpcnscs,
liabilitic. claima or actiors {hcrcafrcr 'Loss"), ba*d upon or arising out ofbodity inj'.rics o:
.tri'ges to pensoo6, ioslu.ling wi'trour limimioo death resultiag *sttoar. o. phpical demagee
to or lo6s€s ofproprriy casod by, arising out ofor sustained rn connection with the consltuctioi\
op<raticn c maintcnsncc of the Facilily. Avista shall indcmnify, dcfard and hold htrmlcss
Proirt Develqcr, is directors, ofrccrr, coployccs. rgcas, rnd rcprcscutativcr agrios ard
from any Loss. crwed by, arising orn of or rustzined in conrcior. with *rc construcim,
- 16-
FINAL
t2nu19
op€rrtidr or mlintanencc of ias clcclrical syslcm. tn the ev€'nt thrt Ery ,uch Loss is caused by
thc ncgliguu of bodr Fojoa Devclopcr mC Aviua, inclrding 'Jrcir entplolrar& agfits,
suplicrs atd snbooxrtclqrs, lhc Loss 3hdl b. bomc by Projcd Dcvclopcr and Avisu in thc
proportion tha thcir rcrpcaivc ncaligrncc bcers to thc toul rrgligencc causing thc Loss.
I3J TO THE EXTENT PERMITTED BY APPLICAALE IAW. PROJECI
DEVELOPER AND AVISTA EACH WAryE ANY IMMUNIry UNDER EXISTING
WORKERS COMPENSATION LAW APPLICABLE TO THE TN,ISDICNON \ITIERE THE
FACILTTY IS To BE L]OCATED AS NECESSARY TO NDEMNIFY AND HOLD
HAR.MLESS THE OTT{ER FROM SUCH LOBS. TO THE EXTENT SET FORTH IN
SECTION l3.r.A.BoVE.
I3J PROJECT DEYEI.OPER AND AVISTA SPtCIf ICALLY WARRAN T TH.AT
THE TERMS AND CONDITTONS OF THE FORECOING INDEMNITY PROVISIONS ARE
TTIE SUBJECTOF MUTUAL NEGOTIATION BY THE PARTIES, AND ARE
SPECFrcALLY AN'D EX?RESSLY AGREED TO IN CONSIDERATION OF THE
ITIUTUAL BENEFITS DERIVED UNDER THE TERMS OF THE AGR.EEMENT.
t3.{ Oticr Oan as erprts.cly p:ovrded for :n dra Agreernert. neither Pany shall be
liablc urdc, any Fovirioo of this Agreernerr for.ny lc6€s, drftrgcs, co6a or expenscs for any
spccial, indinct, irridcntal" conscquential, or punitiw damagss. including but not limilrd to loss
of pmfit or rwcauc. loss cf thc usc of cquig,ncm, cost ol capiisL cct of lcolponry cquipmEnt or
serviccs. whctu boscd in wholc a il prn in cooarsct. io tort irhdiog negligcocc, strict
liabilily. r any othcr Sffiy of l:.biliry: p:ovidcc. howorcr, :hrl dsmrgss for which a Panl :noy
be lieble to rhe othrtr Peny unda enothcr agrccnrnt will rot be com:dered to bc speciel. indirect.
incidcrEl" or consequcntial daniScs lrreundar.
14. ASSIGNMENT
la.l Proixt Dcvclopcr sha.ll rot voluntarily resign its riBrlc or dclcgatc i's du:rcs
urder this Agrecnant, or aay Iror of $rct ridlts or duti= without lhc wrineo conscnt of Avista.
Such consc,rr shall nor unrcaloosbly be withhcld Fulhr'. no ssgignmcnt by Projcd llevelopct
shail rrlicvc or rdclsc ia lo thc cx'€r of uy of is obl:glrions hercundcr. Sublocr to tte
forcgoing nsrrictions on nssignmot tbis Agwmcai shlll bc fully bindirg upor. imrc to lrc
bcnefit of8!d bG cnforccrblc by thc Partics and thcir rts?cctivc srrccssfis hci6 enC Essigns.
112 Proi.ct Dcteloper shall hlw lic right, subjecr to the obligrrim to pmvide
socurity hcruucicr, without tlrc otls PL-ty3 oorscnt, but with a thirly (3O) dlyl pr;o: *ritlfi
noticc m ttc othcr Party. to rnlcc collarctd rssignncas of ite rigbr undcr this Agrccrrot o
sstis! Jr rrquirctncm of ony dcrrcloFnrirl con$ructlon oa othcr long tcrm finaming- A
collatcral arsignmcn! slall not cfiti ts a &lcgation of Pmjcct Dcvclopcrs' obligations undcr
this Agrcemeot, ad ftis Ageartat steli not bind fie colhtcml rssignee. Aay collrteral
Essignee sLcceoding lo sny portio, ofthe ownership inreresl of Projed Developer shall b€
considercd Prrpct Develope/s succcsso in intcrrst arxl shall ttrcrcaflrr be bowd by th:s
Agrrrct€nt.
-l'l-
FlNrlL
l2r2Ml9
I5. NO UNSPECTT'If,D TIIIRD PARI}' BENEFICTARIF^S
Erctpt es spccifically povidcd i:r this Agrecrncnt thcrt ere no third prtty bcncficisria
of rhit f,gcr.tlco1 t.loltrlg cfitaincd ir this Agrecmcnl is irtcodcd lo confcr sny rigbt or
inlercst on an)boc ofirr tur lhc Partics. and their resFctiyc suecessors. hciar and assigns
Pcn rined urd€r section 14.
T5. DE}'AULT
16.l ln tbc cl/sot fut cit r P"rty hils o pcrforo the teEus arxl conditions sct forttr in
this Agrcerneot (a braech of o dcfrult undcr ttrie Agrccnrnt). includiog withoJt linit ior dre
hilure to provide N{r D€liver€d Output wheo etriloble and delivetrbh to A} jsta, at lhe titnet or
in the amoumr rcquired by thir Agrec[renr. the 6llo*'ir:g shall aogly:
16.l.l Thc non-dcfulting Prty sbu givc wriucn noticc m rhc &&ulth8 Prlty
of thc breach ofs dcftult undcr lhi! Agr€cmcrrt.
!6-1.2 where default lc for frilue to pry vrms which are due ard peyable ud.:
this Agreanarl'Jlen the defruldng Paty shril have 30 days following receipl ofwrinan
noticc to crne fic dcfrult, aftcr which pcriod the non-.dcfeulting Party may unilercrally
Eminstc tltis Agrccmcot.
15.13 Excc.ct as providod :n Sections l6- 1.2 tnd 16.1.4. in all other crscs of
breach m default, th€n th" defeulting hy :rLlsr b€gin to cure the breach or def&Jl
within 30 days and sball com ct such curr within 90 dlys ofrcccipt of writtfir noric.,
or clsc thc no+dehulting Party may unilatcrally rrmimtc ft1s 6grEcrncnt.
t6.1.{ lf a brcach or dcfault occtrc undcr Scdions 15.2.1. 16.3.1. 16.3.2, 15.3.1.
16.1.4, thco thc tsdcfaulting pany mey trrmindc this Ag:tsrlcrlr aftcr thc rcspectivc
c,r-ne psriod(s) rs exptE$ly Fovidod fo'r in such Scaions.
16., Notwithsturding any claim of :brcc nuja,nc, Projc* Dcvelopcr slull bc in &fruhil
I5-2,1 Proicct Devcloper hrs a:andonod $c Facilityl or
l62J Tttrt hrcc bcen no erugy &liverics to Avisu from the Fl,ility for a
pcriod of trlclw (12) consccutivc rrmds: or
15"23 Na lhlivcrcd Ouqrt dcliv€rcd lo Avisa fails o crcccd 42.048
ra€Srwrtl+ouB durlllg ery rolling period of nrye ry-four (2,1) consccuti\re c.leodlr
moorh6: or
15.2,4 Iacility ccascs to b,c a Q.uliffing Faciiiry.
- lt -
l6J For purposcs of this .{grcrrDr t, rnd without limiting thc gencrality of sccrion
16.1. r Party shll aho bc in dcfrult if ic
l5J.l Beco.ncs insolvcnt (e.9., is umblc o mcct iu obligrtions as thcy bccome
due or its liibiliti.s crceetl iu cssets), or
l6JJ Mstcs r Sacrel EsignrDcot of nrbctrntirlly a.l of itr asrcts for thc bcBfit
of is crcdimrs, files s pctitio:l for brnlruplcy or rmrpoization o! scGks orhcr trlicf undcr
ary applicahlc imtlvarcy hwr; or
t5JJ Hrr filed ,grinst ir a pcrilion for bsntruprcy, reocgmization m other nlief
undcr a.ry applicrble insolr,tncy hw rtd such petition is not di$Tisscd o. steyed *ilhin
rixty (60) rlayc affcr it ir filcd.
l5J,a k in dchuh undcr rny Tnnsmission Agr€emcnt pmvidcd lh Avistr
shell havc thc oblig ioc to noti& Pmjcd Dcr.clo,pct of any dcfrult undcr ony
Tranrmi**ion Agrcerncrr! 8id pmvide Prqiect Develap€r wi(h rcvmay-lwo l72l houn
ftom the cceipt of noaicc of &ftull b crn! srrch default urdcr any Tnrrrnissicm
At5rsnEnL
l6-a Any right or rancdy affordcd o eithcr Parry undct any govision ofthis
Agr€cmcnl o:) Eccounr ofthc brcach ofor dcfauh un&r t\is Ag:ccrncot by lhc othcr Prrty ir in
addirlm io, and not in liar of, ell other righlr or rmdics lffordod ro sllch PIty undcr siy o{tret
fovisions ofrhis AgrcerEnt, by lerr or otharrise on account ofthe breach or default"
Each Parry stull striw to resolvc any rnC all diffcrencca during the tcrm ofrhc
Agrcrtrat. If r dispra clnrroa bc crotve( eech Peny shill rx€ &rblnation bcforc rcq*strng e
hcaring beforc lhc IPUC. The arbit'aion shell bc c.o:rductrrJ pursusnt to thc Disp.rrc Rcoluion
hoccduro, Attrhrrnr 5. to Oc lntcrcormetion AE ccrncnt. Thc Prtics agrec thrt thc IPUC
shall havc conrinuiag jurisdictirxr ovrr &is Ageemcnt.
t& RELE/LSE BY PROJEC'T DEVELOPIR
Projcc Developcr rclorscs Avists from any mC all claims, looss, herr:r. liabllitiat
drtrrgEs,. costs rod qpGnrcs to thc arcnt rcrutting ftorn any
l&l Ehcric disturtaosc or fluctu*ion that migra.tes. diructly or indircctly. frorr
Avisol dccrric elarern !o lhc Ftcility;
I &2 lnrcrruptiorL $Bpcnsion or swtailment of elsctric scrvicc to thc Fssili! or rny
o$rr prwaiscs cn'ne{ ps*ssod, cootnolled or scrvcd by Pmjccr Dcvclopcr. which inrcrruptictrL
- t9-
FINAL
l2/2419
17. ARBITRATION
FINAL
I220/19
suspetuion d curtailrnent ir cruscd or contribured to by 0u Facility or tbc iouconocaion o! thc
Facility witl any clcctric sysraru or
ItJ Disconncaio4 inrcmrptioo. suspcnsion or curtilrDcm by Avists pursuant to
tcros of this Agrccr:rcot or thc lrmrcmocctim Agrcalcnt.
l&a Dbconmctioq inlern pdorL sulp€nsion q curteilmrt of tranr,tissioo servicc by
r mnsmi[ing enrity or any unfcrcsecn ocl fi incrcase in cofits .o Projecr Ddcloper inpoocd by
r Etnsmitrirg cDtity.
19. covf,RNMEITTALAUTUOS!T!'
This AgrG€trtrcnt is 6ubi)cl to the nrl€s, regulauons, orders lnd otber r€quirements :rcw or
heraftcr in effec! ofell govemnrcntal auho.llies hlf ing jurigiicrion ova the Facility, this
AgrErmcnt, thc Panics or ciths of thcrn. All lals. odirunccs. rulcs, rcgulatiom. or&rs crd
othcr rcquircocas, now or bg:saicr ia cffcc! of Sovcrn Dsrtll authoritrcs thrt sc rcCuirEd to bc
incorporarcd in agrccmants of this cbaraacr are by this rcfcrcrEc inmrpora:ed in lhrs Aglcctrtct .
20. t:OLAI.OPP'ORTU\l'r\
hojet Dcvelopcr sbll cunply wi$ ell applicable raul opportnity lews, ordinanccs.
ordus, rults ud rcgulrrioas.
2r. SEV__ERALOBLIGAIIO:{S
Except whcrr spc.ific.lly stated ir dlis ASrrcment rc be oaherwise. rhc dulicr obli8rroni
urd liabilitics of $c P!rd6 sE i Erdcd to bc sflcr8l not lrint or collectivc. This AgreErnci
shail mt bc inrctpracd or coasturd io cnslc an rssocretioo, joiat vcon$e or prnoctship hvccn
th€ Pani{x or tD impdc iny paltncfrtrip obligations or liability upon cithcr Parry. F.!.fi Prny
shdl be individually urd socrally lirblc for iB owc obiigarions und.r thiu Agrearnt- Funlrt
neither Prny shell h{ve ary righr" power or authoriry ro coer inlo any rgre.nrn( or undaneling
for or on bdralf of, to &1 as to bc rn E8cnt or nprEscntEtivr of, or tr.r utherwise brnd the erhe:
Psty.
2L IMPLIIMENTATION
Erch Pary shall promprly lrle $ch lction (includin& bur rxr limited to. thc excrurion,
acknowledgatart and &livcry of docurmts.l s may be rcaronbly rup.stal by the olh€r Prny
for trc ioplcoenEi:o or oominuing pcrfornance of tbis AttElmmt.
2A NON.WAIVER
The failure ofeithcr Prrry b insasl upon or enforce stri.ct perfonrran!'c by the orbet Peny
of any provision of thir Agnlcmcnl ff tro excrcisc any ri8ht undcr this AErc€mlnt shrlt Dot bc
coElrucd sr s wrivcr a rclinluishrpnt to atry crlEl of such Parf/s right to assen or rdy upoo
?0
FINAL
t znut 9
lny sucb FDvisio, a rigit itr thlt or 0ny olhcr irE&nce; rath.t. thc samc sbrll bc and rEmain in
full fo(tc ed eltect.
24. ArUtNoMEliT
No changc, amcndmcnt or modificetion of any provision of this Agrconcn: shall be vrlid
unlcss sei fstl in ! wrillen smandnmr to lhrs Agreenrent siEned by borh Panier.
23. ClrOlCE OF LAWS
This Agemat stutl bc consmod ald i[Erprctcd in acaordrncr witb thc lawr of thc
Stit! of ldlho.
26" COMPLTANCIWTTHLAWS
Both Prrtics sbrll conply wi6 all applicablc tews and rcgulatirxs of govcrnnnral
agcacics luving juricdiaion ovcr rhc Pmjcct and thc opcrrtions of thc Penics.
27. VENUE
Any actioo er law a i:r equity o cnforcc &c acrmr and cooditions of this Aguemart shdl
bc hwglt in ldaho.
2& IIEADINGS
Tbc saim hcrdingr in fiis Agrcanur: are for coovenicnce only and siull :rct bc
considcrcd put of or uscd in thc intcrpEt8tho of thb A8r€filqrt.
z). NoTreE$
All qrritt€n nodceo Fquircd by 6iB Powr hrdusa Agreemcnt shrll be rrailcd o,
&livcred !6 Hlows:
to Avistr: Dircrtor, Powe Supply
Avists Co.pordion
P.O. Bor 3727
Spo&en€, wA 9220
to Projtxt Dcvclopcr:Pnridcat rod Caicf Exccutiw Officcr
Stinton [mb.t
520 S.W. Yamhill
slriE ?00hlil(OR 972fi
a;td
-2t -
FINAL
ty2ut9
Vice Pnsidcnt ^ Mmufacmring
Stimson Lumbcr
520 S.lv. Yamhitl
SuitE 700
Porhn4 OR 97204
Eirlrc. Party may d!8nge ils addrffr rpccificd above by giving ',he o(hcr Prrty notice of
slEh chmgc in 8ccordmce with lhis Seclion. All mticcs. raqu€s13, allhoriraticns, direclions or
o&cr cosmunic.tio$ by . hfty thill bc dccord dclivcrcd whcn mailcd rs providcd in th'is
Section or pcrmnally delivcrcd to thc othcr Party. lny vcrbgl noticc rtquircd hcrcby which
efhcc tbc peyurente to bc rnadc bcrc{odcr shall bc mnfonrcd in w:itiag tccrjfied suiU rs
poorpdy rs praaicrblc cfter tfie vcrb.l mtice is Evar.
]0. EXHIBITS
Tbis Powcr Purphasc Agrccmcnt irludcs tbc following exiibis which arc acrtcd ad
rncorporatcd by refertnec bercin:
Erhibir A
Exhibh B
Exhibit C
Erhibit D
Exnibit t,
1I. USE OF FACILTilT.S
Pro;cct Devclopct is drc tole uss of certrin l3.t kV hcilitics irselle4 owncd. opantcC
and rnriotaincd by Avista in Aviso's Plumutc $rb6atioo. Projcct Dcvclopcr shall pay a
rrcothly usoof-frilitict chrrgc for tbc solc use of such frcilitics.
Solr Usc lnvest natl: 960,99 1
Annurl Cost Rrtio: 13.86%
Annual Solc Urc Chergs: 160,991 X 0.1 386 = S&1s{yyEar
Mothly Soh Usc Chargc: [7(X/nr,onth
lN WlfiF-SS WHEREOF. tiE Partics hercro hale causcd this AgrserEol to h cxccutcd
by thcir duly authorizal nF rscrtstivcs ss of lhe firs: drtc ttcrein above sa fonh.
STLVSON LUMBER COMPANY AVISTA CORPORATION
By
Prin
{fut,,v Bv;
Printed Name: -;r-n |i,,. ..-
Titlq '
Com:nunica'js:.c srd Rcponing
Fsnr ofEngine.ds Ccrrificrtion of Opcnrions and Mlint€nince Policy
Intercoancctim Agocrncrt
Dcscriprkm of tbc Frility
Purcture Priccs
Titlc:
Datc:
22
DrlE: t2..2j r) _
)
Fl^.:.4L
I U)0/19
Erhibir A
(e)
and out ges:
During normal busincss hr.x:s. all vertal sommunic.:.lions n lating to rnterulliotls
r\vista Syslcm Opcrator ( 509 ) 495-41 0-r
Ahrmnc Phonc Numbcr (509) 495{914
Project Detekryxr Managcr, Plumrncr Kevin Crii,cr (S09) R63-3'145
Alternrte Phonc Nurnber: Many Kyler (20Ef691{8{x
{b) Ouldde ofnofmsl busincrs hrrun (nights. weelcdds, afil h.rlidayi}, rll verbsl
communicrtiur$ rElrring t(| interruplions and oulrgtrs sh.ll 'ake pl8cE beth-c€o the following
ttcT\.on nci :
Avista SWcm OpEraror [phone]
Altcmstc Phooc Numbr'r: [phone]
P.ojeo Delel<'Jrcr Maneger. SIimmn Plummcr Slwn:rll
(-ell phre: [phone]
Altcmatc Phone Numbcr Regional Ccncrel Managcr
Ccll phnc: (lOE) 691-4t06
!:l El€ctronic uommunicatioos dunng all hr:uni rclllrnt to inlcrrupti(,ns arx! oubger:
Arisa Corp
P:olcct Dcvclogrr
k crid!'r(a;sl imson lumber. co rr':
mlyle4i;sdmsoolumber.com
l/gtlltt(r rr :.trrrr\onlurnhcr.irrtn
bgray(rrstimurn I umtrr.c on:
Erhibrl A
FIN,4L
1U2419
Erhbh E
ForE of E[elrccr'r Ccrilllcrdon of Operrtioas rld ]hlnt?nrtrce Pollcr'
Thii Exhibil b woivcd .s Stiftrori is rn €risting facility.
Exlibir B
FINAL
t 2i2ar 9
ErtiHl C
I nlcrcopncrtiotr Ag'ecpcDt
Exisring lntcrconncclion AgrEcmcnr on t-rlc wifi Avista Trarunission
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Avista ConEact No. AV-TR06-021?
GENDRATOR
INTERCONNECTION AGREEMENT (GIA)
Between
AVISTA CORPORATION
AND
STIMSON LUMBER COMPAI.IY
TABLE OF CONTENTS
ARTICLE I, SCOPE AI\TD IIMITATIONS OF AGREEMENT
ARTICLE 2. AUTTIORIZATION AND RIGHT OF ACCESS
ARTICLE 3. EFFECTIVE DATE, TERM, TERMINATION, AND
DISCONNECTION
ARTICLE 4. CONTAST INFORMATION
ARTICLE 5. COST RESPONSIBLTTY FOR INTERCONNECTION
FACILITIES
ARTICLE 6. ASSIGNMENT. LIABIUTY, INDEMNTTY, FORCE MAJEURE,
CONSEQUENTTAL DAMAGES, AND DEFAULT.
ARTICLET. INSURANCE
ARTICLE 8. DISPIJTES
ARTICLE 9. MISCELLANEOI]S
ARTICI,E IO. NOTICES
ARTICLE II. SIGNATIJRES
Attschment I - Glossary of Tcrrns
Attachment 2 - Description of the Small Generaring Facility, Intcrconnection
Facilities, and Metering Equipment
Attachment 3 - One-linc Dagram Depicting the Small Generating Facility,
Interconnection Facilities and Metering Equipment
Attschment 4 - Additional Operating Requir€ments for the Interconnccting
Utility's Electric System and AJfected Systems Needed to Support
the Interconnection Customer's Needs
Paee No.
1
1
4
6
6
6
l0
l0
l1
13
15
-l-
Attachment 5 - Dispute Resolution Procedures
This lnterconnectron Agreement ("Agreement") is made and entered into th is /l
day of October 2006, by Avista Corporation ("Interconnecting Utility"), and Stimson Lumber
Company ("lnterconnection Customer") each hercinafter sometimcs referred to individually as
"Party" or both referred to collectively as the "P8rties."
Interconnecting Utility: Avista Corporation
Attention: Manager, Transmission Services
Address: l4l1 E. Mission Avenue
City: Spokane State: Washington Zip: 992O2-1%2
Phone: (509) 409{500 Fax: [phone]
Interconneclion Customer Information
lnterconnection Customer: Stimson Lumber Company
Attention : Prcsidcny'CEO
Address: 520 S.W. Yamhill; Suite 700
City: Portland State: Oregon Zp: 972M
Phone: [phone] Fax: [phone]
Stimson l,umber Company - Plummer Office
Attention: Manager
eddress: 732 106 St.
City: P]ummff Stare: Idaho Ap: 83851
Phone: [phone]
Regional Gcneral Managcr Phone: [phone]
lntcrconncction Customer Application No: Already an exiting Interconnection
h consideration of the mutual covenants set fonh herein, the Parties agree as follows:
ARTICLE 1. SCOPE AND I,IMITATIONS OF AGREEMENT
l.l This Agreement govems thc terms and conditions under which the
lnterconnection Customer's Small Generating Facility will interconnect with, and operate in
parallel with, the Interconnccting Utilily's Elecbc Systcm.
1.2 This Agreement does not constitutr an agrcenrnt to purchasc or deliver the
Interconnection Customer's power. The purcbasc or delivery of power and other services that the
Interconnection Customcr may rcquirc will be covered under s€parate agrc€ments, if any. The
lnterconnection Customer will be responsible for separatcly making all nccessary arrangements
(including scheduling) for delivery of electricity with the applicable Interconnecting Utility.
1.3 Nothing in this Ag€ement is intended to affect any othsr agreement between the
Stimson Generator lnlerconnection Agreement (GlA)-1
Interconnecting Utility Information
lnterconnecting Utility and the Interconnection Customer.
L.4 Resgonsibilitics of the Parties
1.4.1 The Partics shall pcrform all obligations of this Agreement in accordance
with all Applicable l-aws and Regulations, Operating Requtements, and Good Uti'lity
Practice.
L4.2 Thc lnterconnection Customer shall construct, interconnect, operate and
maintain its Small Generating Facility ard consruct, opcrate, and maintain its
I-nterconnection Facilities in accordance with the applicable manufacturer's recommended
maintenance schedule, and in accordance with this Agreement, and with Prudent Utility
Practices.
1.4.3 The Interconnecting Utility shall construct, opcrat€, and maintain its
Electric System and Interconnection Facilities in accordance with this Agreement, and
with Prudent Utiliry Practices.
1.4.4 The InErconnection Customer agrces to operate irs facilities or systems in
accordance with applicable specifications that meet or cxcecd those provided by the
National Electrical Safcty Code, the Amencan National Standards Institule, IFF F,
Underwriter's l-aboratory, and Operating Requirements in effcct at the time of
constructioD and other applicable national and state codes and standards. The
Interconnection Customer agrEes to maintain and operatc its Small GeneratinS Facility so
as to rcasonably minimize the likelihood of a disturbance adversely affecting or impairing
the system or equipmcnt of the lnterconnecting Utility and any Affected Systcms.
1.4.5 Each Party shall operate, maintain, repair, and inspert, and shall be fully
rcsponsible for the facilities that it now or subsequently may own unlcss otherwise
spccified in the Attachments to this Agrcement. Each Party shall be responsible for the
safe installation, maintenance, repair and condition of their respective lines and
appurtenances on their rcspecrivc sides of the point of change of ownership. The
lnterconnecdng Utility and the Interconnection Customer, as appropriate, shall prcvide
Interconnection Facilities that adequately protect the Intcrconnecting Utility's Ele€tric
System, personnel, and other persons from damage and injury. The allocation of
responsibility for the design, installation, op€ration, maintcnance and ownership of
Inrcrconnection Facilities shall be delineated in the Attachments to this Agreement.
1.4.6 The Interconnecting Utility shall coordinate with al! Affccted Systems to
support the intcrconncction.
1.5 Parallel Ooeration Oblis,ations. The Interconn@tion Customer shall abide by all
rules and procedures pertaining to the parallel operation of the Small Generating Facility in the
applicable control area, including, but not limited to; l) the nrles and pmccdurcs concerning the
operaton of generation set by the &pplicable systcm operator(s) for lhe lnterconnectng Utility's
Stimson Gcnemtor Intcrconncction Agreement (GlA) - 2'
Electric System and; 2) the Operating Requiremens set forth in Attachment 4 of this Agreement
1.6 Metering. The Interconnection Customer shall be responsible for the
lnterconnecting Utility's reasonable and necessary cost for the operation, maintenance, testing,
repair, and replacement of metcring and data acquisition equipment specified in Attach.dents 2
and 3 of this Agreemeot. The Ilterconnection Customer's metering (and data acquisition, as
required) equipment shall conform to applicable industry nr.les and Operating Requirements.
1.7 Reactivc Powcr. The Interconnection Customer shall design its Small Generating
Facility to maintain a composite power delivery et continuous rated power output at the Point of
Interconnection at a power factor within the range of 0.95 leadilg to 0.95 lagging, unless the
Interconnecting Utility has established differcnt requrrements thar apply to all similarly situaled
generators in the contol area on a comparable basis.
1.8 Capitalized terms used hercin shall have the mcanings specified in the Glossary of
Terms in Aftachment I or the body of this Agreement.
ARTICLE 2. AUTIIORIZATION, AND RIGIIT OF ACCESS
Z.l Authorization Reouircd For to Parallel Operation
2.1.1 The Irterconnecting Utility shall use Reasonable Efforts to list applicable
parallel operation requirements in AttachEenl4 of this Agreement. Additionally, the
Interconnecting Utility shall notify the Interconnection Customer of any changes to these
requilements as soon as they are known. The Interconnecting Utility shall male
Reasonable Efforts to coopcrate with lhe Interconnecdon Customer in mectng
requirements necessary for the Interconnection Customer to commence parallel
operations.
2- I .2 The Interconnection Customer shall nol operate its Small Gencrating
Facility in parallel with the Interconnecting Utility's Electric System without first
complying with section 2.3 of Attachment 4.
2.2 Rieht of Access
2.2.1 Upon reasonable notice, the Interconnecting Utility may send a qualified
person to thc prcmises of thc Intcrconncction Customer to inspcct the interconnection,
and observe thc operatron of the Small Generating Facility.
2.2.2 Following the inspection process described above, at reasonable hours,
and upon reasonable notice, or at any time without notice in the event of an emergency or
hazardous condition, the Interconnecting Utility shall have access to the Interconnecton
Customer's premises for any reasonable purpose in connection with the performance of
thc obligations imposcd on it by fiis AgrEement or if neccssary to mect its lcgal
Stimson Generator Interconnection Agrcement (GIA)3-
obligation to provide service to iE clstomefli.
2.2.3 EachParty shall be responsible for its own costs associated with following
this article.
ARTICLE 3. EFFECTIVE DATE, TERM, TERMINA'I'ION, DISCONNECTION
3.I Effective Datc. This Agreement shall become effective upon execution by the
Parties subject to acceptance by any regulalory body of competent jurisdiction (if applicable).
The Intercomecting Utility shall promptly file this Agreement with any rcgulatory body of
competent jurisdiction upon execution, if required.
3.2 Term o[ Aerccment. This Agrecment shall become effective on thc Effective
Datc and shall remain in effect for a period of five years from the Effective Datc unless
terminated in accordance with Anicle 3.3 of this Agreement. This Agreement shall remain in
effect beyond the initial five ycar period unless affirmatively terrinated in writing upon a 30
days notice by either Party to the other Party.
3.3 Termination. No tcrmination shall become effective until the Parties have
complied with all Applicable Laws and Regulations applicable to such termination, including the
filing with any regulatory body of competent jurisdiction of a notice of tcrmination of this
Agreement (if required), which notice has been accepted for filing by the regulatory body of
competent j urisdlction.
3.3.1 The Interconnection Customat may terminatc this Agreement at any time
by giving the Interconnecting Utility 30 day's written notice.
3.3.2 Either Party may terminat€ this Agreement aftBr Default pursuant to
Anicle 6.6.
3.3.3 Upon termination of th.is Agrecment, the Small Generating Facility will be
disconnected from thc Interconnecting Utility's Electric System. All costs required to
effectuarc such disconnection shall be borne by thc terminating Pany, unless such
termination resultcd from the non-terminating Pany's Default of this GIA or such non-
terminating Party otherwise is responsible for thcse costs under this CIA.
3.3.4 The t€rmination of this Agrecment shall nor relievc cither Party of its
liabilities and obligations, owed or continuing at thc time ofthe tcrmination
3.3.5 The provisions of this article shall survivc tcrmination or cxptation of this
Agrcement.
3.4 Temoorarv Dsconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under Prudent Utility Practices.
Stimson Gcnerator Interconne.tion Agreemcnt (GtA)-4-
3.4.2 Routine Maintenance. Construction. and Repair. The Interconnecting
Utility may interrupt interconncction scrvice or curtail the output of the Small Generating
Facility and temporarily disconnect the Small Generating Facility from the
Intcrconnecting Utility's Electric System when neccssary for routine maintenance,
consftuction, and repain on the Interconnecting Utility's Electric System. The Parties
shall cooperate in deterrnning mutually acceptable Small Generating Facility down times
or maintenance shuldowns The Interconnecting Utility shall use Reasonable Efforts to
coordinate such reduction or temporary disconnection with the Interconnection Customer.
3.4.3 Forced Outaees. During any forced outage, the Interconnecting Utility
may suspcnd interconnection service to effcct immediate rcpairs on the lnterconnecting
Utility's Electric System. Thc Interconnecting Utility shall usc Reasonable Efforts to
providc thc Interconncction Customer with prior notrce. If prior notice is not given, the
Interconnecting Utility shall, upon request, provide the Interconncction Customer writtcn
documcntation after thc fact explaining lhe circumstances of the disconnection.
3.4.4 Adverse Ooeratine Effects. The lnt,crconnecting Utility shall norify the
Interconnection Customer as soon as practicable if, based on Prudent Utility Practiccs,
operation of the Small Generating Facility may cause disruption or deterioration of
servicc to othcr customers servcd fmm the same electric system, or if operating the Small
Cenerating Facility could cause damage to the Interconnecting Utility's Electric System
or Affected Systems. Supporting documentation used to reach the decision to disconnect
Stimson Generator Interconncction Agrecment (GIA)
3.4.1 Emergencv Conditions - "Emergency Condition" shall mean a condition
or situalion: (l) that in the judgment of the Party making the claim is imminently likely
to endanger life or propertyi or (2) that, in the case of the Interconnecting Utility, is
imninentJy likely (as determined in a non-discriminatory manner) to cause a matErial
adverse effect on the security of, or damage to the Elcctric System, rhe Interconnecdng
Utility's Intcrconnection Facilities or thc Electric Systcms of others to which the
Interconnecting Utility's Etectric System is drrectly connected; or (3) that, in the case of
the lnterconnection Cuslomer, is imminently likely (as determined ir a non-
discriminatory manner) to cause a material adverse effect on the security of, or damage
to, the Small Generating Facility or the Interconnection CustomeCs lnterconnection
Facilities. Under Emergency Condihons, the Interconnecting Utility may imm€diately
suspend interconnsction service and temporarily disconnect the Small Generating
Facility. The Intcrconnecting Utility shall notify the Interconnection Customer promptly
when it becomes aware of an Emergency Condition that may reasonably be cxpcctcd to
affect the lnterconnection Customer's operation of the Small Generating Facility. The
Interconnection Customer shall notify the Interconnccting Utility promptly when it
becomes aware of an Emergency Condition that may reasonably be expected to affect the
lnterconnecting Utiliqy's Electric Sysrcm or any Affected Systems. To the extent
information is known, the notification shall dcscribe the Emergency Condition, the extent
of the damage or deficiency, the expectcd effect on the operation of both Parties' facilities
and operations, its anticipated duration, and thc neccssary corrcctivc action.
shall be provided to the Interconnection Customer upon rEquest. If, after notice, the
lnterconnection Customer fails to remedy the adversc operating effect within a
rcasonable time, the Interconnscting Utility may disconnect the Small Generating
Facility. Thc Intcrconnecting Utility shall provide the lnterconnection Customer with
five Business Day notice of such disconnection, unlcss thc pmvisions of article 3.4.1
apply.
3.4.5 Modification of the Sruall Generating Facility, The Ilterconnection
3.4.6 Reconnection. The Parties shall cooperate with each other to restorc the
Small Generating Facility, Interconnection Facilities, and the Interconnecting Utility's
Electric System to their normal operating state as soon as reasonably practicable
following a temporary disconnection.
ARTICLE 4. CONTACT INFORMATION
4.1 Contect Information. Any contact or communications between Interconnecting
Utility and lnterconnection Customer rcquircd for operation of the Small Generating Facility
shall take place in accordancc with Anachment 6.
ARTICLE 5. COST RESPONSIBILITY FOR INTERCONNECTION FACILITIES
5.1 Intcrconnection Facilities. The Intcrconnection Customcr shall bc responsible for
its share of all reasonable expenses associaM with (1) owning, operating, maintaining, repairing,
and rcplacing its own Intcrconneclion Facilities, and (2) operating, maintaining, repainng, and
replacing the Interconnecting Utility's Interconnection Facilities.
ARTICLE 6. ASSIGNMENT, LIABILITY, II\TDEMNITY, FORCE MAJEI.]RE,
CONSEQUENTIAL DAMACBS, fu\D DEFAULT
6.1 Assisnment. This Agreement may be assigned by either Party upon 15 Business
Days prior written notice and opportunity to object by the othcr Pany; provided that:
6.1 . I Either Party may assign this Agreemcnt without the consent of thc other
Party to any affiliate of the assigning Party with an equal or greater crcdit rsting and with
the legal authority and operational ability to s*isfy the obligations of the assigning Party
Stimson Generator Interconncction Agreement (GlA)6-
Customer must rpceive written authorization fmm thc Interconnecting Utility before
making any change to the Small Generating Facility that may have a material impact on
the safety or reliability of the Electric System. Such authorization shall not be
urneasonably withheld. Modifications shall be done in accordance with Prudent Utility
Practices. If the Interconnection Customer makes such modification without the
lnterconnecting Utility's prior writteu authorization, the latter shall have the right to
temporanly disconnect the Small Gencrating Facility.
under this Ag.reement, provided that lhe Interconnection Cusromer promptly notifies the
Intcrconne.dng Utility of any such assignment;
6.1.2 The lnterconnection Customer shall have the right to assign this
Ageement, without thc consent of the lntcrconnecting Utility, for collateral se.udty
purposes to aid in providing frnancing for the Small Generating Facility, provided that the
Interconnection Customcr will prcmptly notify thc Interconnecting Utility of any such
assignment.
6.1.3 Any attempted assignmEnt that violates this articlc is void and ineffective.
Assignment shall not relieve a Party of its obligatrons, nor shall a Pany's obligations be
enlargcd, in wholc or in part, by reason thereof. An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the InterconDection Customer.
Whcrc required, consent to assignment will not be uffeasonably withheld, conditioned or
delayed.
6.2 Limitation of Liabilitv
6.2.1 Each Party's liability to the other Party for any loss, cost, claim, injury,
Iiability, or cxpense, including rcasonabl€ anorney's fees, relating to or ansing ftom any
act or omission in its performance of this Agrcemcnt, shall be limited to the amount of
direct damage actually incurred In no event shall cither Party be liable to the other Party
for any indirect special, consequential, or punitivc damages, except as authorized by this
Agr€ement.
6.2.2 Limitation of Liability for WIS Panies. If both Interconnecting Utility and
Intcrconnection Customer are panies to the WIS Agreement, thcn the WIS AgrEcment
shall control their liabilities with respect to damages to rhe Small Generation Facility, the
Interconnection Facilities, or Inrcrconnecting Utility's Electric System.
6.3 Indemnitv
6.3.1 This provision protects each Party ftom liability incurred to third parties as
a result of carrying out ths provisions of this Agreement. Liabili(y undcr this provision is
exempt from the general limitations on liability found in anicle 6.6.
6.3.2 Interconnection Customer shall indemnify, defend and hold harrnless
lnterconnectiDg Utility, its dirEctors, offrcers, employees, agents, and representatives,
against and from any and all lossas, expenses, liabilities, claims or actions (herEafter
"Loss"), based upon or arising out of bodily injuries or damages to penons, including
without limitation dcath resulting thcrefrom, or physical damagcs to or losscs of propcrty
caused by, adsing out of or sustaincd in connection with the construction, operation or
maintenance of thc Small Generating Facility. lnterconnecting Utility shall indemnify,
defend and hold harmless Interconnection Customcr, its directors, ofllcers, employees,
agents, and reprcsentatives, against and from any Loss, caused by, arising out of or
-7Stimson Generator lnterconnection Agreement (GIA)
sustained in connection with the construction, operation or maintenance of its electncal
system. In the event that any such Loss is caused by the negligence of both
Interconncction customer and Interconnecting utility, including their employees, agents,
suppliers and subcontractors, the [,oss shall be bome by lnterconnection Customer and
Interconnccting Utility in the proponion that their rcspective negligence bears to thc total
negligence causing the Loss.
6.3.3 TO THE EXTENT PERMITTED BY APPUCABLE LAW,
INTERCONNECTION CUSTOMER,L\D INTERCONNECTING UTILITY EACH
WAIVE ANY IMMUNITY I.II\IIDER E)(ISTING WORKER'S COMPENSATION LAW
APPUCABLE TO TIM JI,JRISDICTION WHERE THE FACILITY IS TO BE
LOCATED AS NECESSARY TO INDEMNIFY AND HOLD HARMLESS TTIE
OTHER FROM SUCH LOSS, TO THE EXTENT SET FORTH IN SECIION I3.1,
ABOVE.
6.3.4 INTERCONNECTION CUSTOMER AND UTIIJTY SPECIFICALLY
WARRAI{T T}IAT TIIE TERMS AND CONDMONS OF THE FOREGOING
INDEMNTTY PROVISIONS ARE TI{E SI,JtsJEC"T OF MUTUAL NEGOTIATION BY
THE PARTIES, AND ARE SPECIFICALLY A}.iD EXPRESSLY AGREED TO IN
CONSIDERATION OF THE MUTUAL BENEFTTS DERIVED TINDER THE TERMS
OF T}IE AGREEMENT.
6.3.5. If an indcmnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonsble oppornrnity to proceed uflder this anicle, !o assume the defense of such claim,
such indcmnified person may at the expense of the indemnifying Party conte.st, setde or
consent to the entry of any judp.ent with resp€ct to, or pay in full, such claim.
6.3.6 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmiess undcr this article, the amount owing to the indemnified
pcrson shall bc the amount of such indcmnified person's actual loss, net of any insurance
or other recovcry.
6.3.7 Promprly after rcceipt by an indemnificd person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation as
to which the indcmnity provided for in this anicle may apply, the indemnified person
shall notify the indemnifying pany of such fact. Any failure of or delay in such
notification shall not affect a Party's indemnification obligation unless such failure or
delay is materially prejudicial to the indemnifying party.
6-4 Consequential Damases. Other than aii expressly provided for in this Agrcement,
neither Parry shall be liable under any provision of this Agrcement for any lo6ses, damages, costs
or cxpenses for any special, indirect, incidental, consequentiai, or punitive damages, including
but no1 limited to loss of profit or revenue, loss of the use of cquipment, cost of capital, cost of
temporary equipment or services, whether based in whole or in pafl in contract, in torl, including
Stimson Generator lnterconnection Agreement (GlA)-8-
negligence, stdct liability, or any other theory oI liability; provided, however, that damages for
which a Party may be liable to the other Party under another agreement will not bc considercd to
be special, indirect, incidental, or consequential damages hereunder.
6.5 Force Maieure
6.5.1 As uscd in this anicle, a Force Majeue Event shall mean
6.5.1 .l Any cause or condition beyond such Party's rcasonabl€ control
which such Party is unable to overcome by the exercise of reasonable diligence
(including but not limited to: fire, flood, earthquake, volcanic activity, wind,
&ought and othcr acts of the elcments; court order and act of civil, military or
govemmentsl authority; strike lockour and other labor dispute; riot, insunection,
sabotage or wa6 breakdown of or damage to facilities or equipment; electrical
disturbance originating in or transmitted through such Pany's electric systcm or
any electric system with which such Pafly's system is interconne.cted; and, act or
omission of any person or entity other than such Party, and Party's conlractors or
suppliers of any tier or anyone acting on behalf of such Pany); or
6.5.1.2 Any action taken by such Party which is, in rhe solejudgment of
such Pany, nccessary or prudent to protect the operation, performance, integnty,
reliability or stability of such Pany's electric system or any electric system with
which such Party's eleclric system is interconnscted, whether such actions occur
automaticall y or manually.
6.6.1 No Default shall exist where such failure to discharge an obligation (other
than the payment of money) is the rcsult of a Force Majeure Event as defined in this
Agreement or the result of an act or omission of the other Pany. Upon a Default, the
nondefaulting Party shall give written notice of such Default to the defaulting Party.
Except as providcd in article 7.6.2, the defaulting Party shall havc 30 calcndar days from
Stimson Generator lnterconnection Agreement (GIA)9
6.5.2 If a Force Majeurc Evcnt prevents a Party from fulfitling any obligations
un&r this Agreement, the Party affectcd by the Force Majeure Event (Affected Party)
shall promptly notify the other Party, either in writing or via thc tclephone, of the
existence of the Force Majeure Event. The notification must spccify in reasonable detail
th€ circumstances of the Force Majeure Event, is expected duration, and the stcps that
the Affccted Pafty is taking to mitigatc the effects of the cvent on its performance. The
Affected Party shall keep the other Party informed on a continuing basis of developments
rElatlng to thc Forc€ Majeure Event until the cvent ends. The Affected Party will be
entitled to suspend or modify is performance of obligations under this Agrecment (other
than the obligation to make payments) only to the extent that the effect of the Force
Majeue Event cannot be mitigated by the usc of Reasonable Efforts. Ths Affected Party
will use Reasonable Efforts to resume its performance as soon as possible.
6.6 Default
receipt of the Default notlce withir which to cure such Default; provided however, if
such Default is not capable of cure within 30 calendar days, the defaulting Party shall
commence such curc within 30 calendar days after notice and continuously and diligently
complet€ such curc within 90 calendar days from rcceipt of the Default notice; an4 if
cured within such time, the Default specified in such notice shall cease to exist.
6.6.2 If a Default is not cued as provided in this anicle, or if a Default is not
capable of being curcd within the period provided for hercin, the non-defaulting Party
shall have the right to tenninatc this Agreemcnt by written notice at any time until curc
occurs, and be relieved of any further obligation hereunder and, whether or not that Party
terminates this Agreement, to Ecover from the defaulting Pany all amounts due
hereunder, plus all other damages and remedies to which it is entitled at law or in equity.
The provisions of this article will survive tcrmination of this Agle€ment.
ARTICI,E 7. INSTJRANCE
1-l The lntcrconnection Customer shall, at its own expense, maintain in force general
liability insurance without any exclusion for liabilities rclated to the intcrconnection undertaken
pufsuant to this Agre€ment. The amount of such insurance shall be suflicicnt to insurc against
all reasonably forcseeable direct liabilities given the size and nature of the generating equipment
being interconnected, the inlerconnection itsclf, and the charduteristics of the system to which the
interconnection is made, provided that at a minimurn Interconnection Customer shall obtain
commercial general liability insurance for bodily injury and property damagc with limis equal to
$ 1,000,000 for each occurrence, combincd single limit. The deductible for such insurance shall
be consistent with current insurance udlity practlcos for a similar property. The lnterconnection
Customer shall obtain additional insurance only if necessaqr as a function of owning and
operating a generating facility. Snch insurance shall be obtained from an insurancc provider
authorized to do business in the State where the interconnection is located. Certification that
such insurance is in effect shall be provided upon rcquest of the lnterconnecting Utility, except
that the Interconnection Customer shall show proof of insurance to the Interconnecting Utility no
later than ten Business Days prior to the anticipated coEmercia.l operation date. An
lnterconnection Customer of sufficient credit-worthiness may propose to self-insure for such
liabilitics, and such a proposal shall not be unreasonably rejected.
'1 .2 The lnterconnecting Utility agrees to maintain general liability insurance or self-
insurance consistent with the lntcrconnccting Utrlity's commercial practice. Such insurance or
self-insurance shall not cxclude coverage for the Interconnecting Utility's liabilities undertaken
pursuant to this Agreement.
7.3 The Partics further agrce to notify each othcr whenever an accident or incidcnt
occurs resulting in any injuries or damages that arc included within the scope of coverage of such
insurancc, whether or not such coverage is sought.
Stimson Generator Interconnection Agreement (CIA)-10-
ARTICI,E 8. DISPUTFS
8.t Any claim or disputc which eithcr Party may havc against thc otber arising out of
or relating to this Agre€ment or the breach, terminarion or validity thereof (any such claim or
dispute, a "Dispute") shall be submitted in writing to the other Pany. Upon such notice, the
Panies shall follow the applicable Dspute Resolution procedures in Anachment 5.
9.1 GoverninE [,aw. Resulatory Authority. &nd Rules. The validity, interpretation
and enforcernent of this Agreement and each of its provisions shsll be govemed by the laws of
the state of ldaho (wherc the Point of Interconnection is located), without rcgard to its conflicts
of law principles. This Agrecment is subject to all Applicable Laws and Regulations. Each
Party cxpresly reserves the right to scck changes in, appeal, or otherwise contcst any laws,
orders, or regulations of a Governmental Authority.
9.2 Amendment. The Paflies may amend this Agreement by a wrinen instnunent
duly executed by both Panies.
9.3 No Third-Partv Beneficiaries. This Agrcement is not intended to and does not
create rights, remedies, or bcnefits of any charactcr whatsoever in favor of any persons,
corporations, associations, or entities other than the Panies, and the obligations herein assumed
are solely for the use and benefit of the Parties, their successors in intercst and where permitted,
their assigns.
9.4 Waiver.
9.4.2 Any waiver aI any time by either Party of its rights with respect to this
A$eement shall not bc dccmcd a continuing waiver or a waiver with respect to any other
failu.re to comply with any other obligation, right, duty of this Agrecment. Termination
or default of this Agre€ment for any reason by Interconnection Customer shall not
constitute a waiver of the Interconnection Customels legal rights to obtain ar
interconnection from the lnterconnecting Utility. Any warver of this A$eement shall, if
rcquested bc provided in writing.
9.5 Entirc Aerc€ment. This Agreement, including all Attachments, constitutes the
entirc agreement between the Partics with refercncc to the subject rEtter hereof, aad supcrsedes
dl prior and contemporancous understandings or agreements, oral or written, betwecn the Parties
with rcspcct to the subjcct matter of this Agreement. There are no other agreements,
rEpresentations, warranties, or covenants which constimte any part of the consideration for, or
- 11-
ARTICLE 9. MISCELLANEOUS
9.4.1 The failure of a Party to this Agrecment to insist, on any occasion, upon
strict pcrformance of any provision of this Agreement will not be considered a waiver of
any obligation, right, or duty of, or imposed upon, such Party.
Stimson Generator Interconnection Agreement (GIA)
any condition to, either Party's compliance with ils obligations under this Agreement.
9.6 Multrole Countemans. This Age€ment may be exccuted in two or more
countcrparts, €ach of which is dcemcd an original but all constitute one and thc same instrument.
9.7 No Partnership. This Agreement shall nol be interpreted or construed to crsate an
association, joint venturc, agcncy relationship, or partnership bctwcen the Parties or to impose
any pannership obligation or partnership liability upon either Pany. Neither Pany shall havc any
right, power or authority to cntcr into any agrecment or undenaking for, or act on behalf of, or to
act as or be an agenl or rcpresentadve of, or to otherwise bind, the other Party.
9.9 Securitv Arrangements. Infrastructure secudty of electric system equipment and
operations and control hardware and software is essential to ensur€ day-to{ay rcliability and
operational security. FERC expects dl Interconnecting Utility's, market participanB, and
Interconnection Customers interconnccted to electric systems to comply with the
recommendations offered by the President's Critical Infrastructure Protection Board and,
eventually, best practice recommendations from the electric reliability authority. All public
utilities are expected to meet basic standards for system inftastnrcture and operational security,
including physical, opcrational, and cyber-secudty practices.
9.10 Environmenml Releases. Each Pany shall notify &e other Party, first orally and
then in writing, of the release of any hazardous substances, any asbestos or lead abatement
sctivities, or 8Dy type of remediation activities related to the Small Generating Facility or the
lnterconnccdon Facilities, each of which may reasonably be expected to affect the other Party.
Thc notifying Party shall (l) provide the notice as soon as practicable, provided such Party
makes a good faith effort to provide the notice no larr than 24 hours after such Party becomes
aware of thc occurrence, and (2) promptly fumish to the othcr Party copies of any publicly
availablc reports filed with any govemmental authorities addressing such events.
9.1 I Subcontractors. Nothing in this Agrcement shall prevent a Party from utilizing
the services of any subcontractor ss it deems appropriate to p€rform its obligations under this
Agrccment; provided, howcver, that each Party shall require its subcontractors to comply with all
applicable terms and conditions of this Ageement in pmviding such services and each Pany
shall remain primarily liable to the other Pafiy for the performance of such subconractor,
9.ll.l Thecrcation of any subontract relationship shall not rclieve the hiring
Party of any of its obligations undcr this Agreement. The hiring Pany shall be fully
rcsponsible to the other Pafly for thc acts or omissions of any subcontractor the hiring
Stimson Generator Interconnection Agreement (GIA)-t2-
9.8 Severabilitv. If any provision or portion of this Ag€ement shall for any rcason be
held or adjudged to be invalid or illegal or uncnforceable by any court of competent jurisdiction
or other Govemmental Authority, (l) such ponion or provision shall be deemed separate and
indepcndent, (2) the Panies shall negotiatc in good faith to rastorc insofar as practicablc thc
benefis ro each Party thBt werE affected by such ruling, and (3) the remainder of this Agreement
shall remain in full force and cffect.
Party hires as if no subcontract had been made; provided, however, that in no event shall
the Interconnecting Utility be liable for the actions or inactions of the Interconnection
Customer or its subcontractors with respect to obligations of the Interconnection
Customer under this Agrcement. Any applicable obligation imposed by this Agreement
upon the hiring Party shall bc equally binding upon, and shall bc construed as having
application to, any subcontractor of such Party.
9.1 1.2 The obligations un&r this article wiU not bc limited in any way by any
limiation of subcontractor's insurdnce.
10.1 General. Unless otherwise pmvided in this Agreement, any written nodce,
demand, ot request required or authorizcd in connection with this Agrccment ("Notice") shall be
dccmcd properly given if delivered in pcrson, dclivercd by rccognized national currier service, or
6ent by first class mail, postagc prcpaid, to thc person specified below:
lf to the lnterconnection Customer:
Interconnection Customer: Stimson l-umber Company
Attention : President/CEO
Address: 520 S.W. Yamhilll Suite 700
City: Portland State: Orcgon Zp: 97204
Phone: [phone] Fax: [phone]
If to the Interconnecting Utility:
lntcrconn ecting Utility: Avista Corporation
Attentiou: Manager, Transmission Services
Address: l4l I E. Mission Avenue
City: Spokane StatE: Washington Z,rp: 99202- 19O2
Phone: [phone] Far: [phone]
10.2 Billins and Pavment. Billings and payments shall be sent to lhe addresses set out
below:
lnterconnection Customer: Stimson Lumber Company
Anention: Manager
Address: 732 l0'h St.
City: Plummer State: Idaho Zp: 8385I
Irterconnecting Utility: Avista Corporatron
Amendon: Manager, Transmission Services
Address: l4l1 E. Mission Avenue
-13-Stimson Generator Intcrconnection Agrcement (GIA)
ARTICLE IO. NOTICES
City: Spokane State: Washington Ztp: 99202-1902
10.3 Altemative Forms of Notice. Any notice or rcquest required or p€mitted to be
given by either Party to the other and not required by this AgrEement to b€ given in writrng may
be so givcn by telephone, facsimile or e-mail to the telephone numbers and e-marl addrcsses set
out below:
If to the Intcrconnection Customec
Intcrconnection Customer: Stimson lmbcr Company
Attendon: Manaser
lddress: 732 10[ St.
City: Plummer Statc: Idaho Zip: 83851
Phonc: [phone]
Regional Genera.l Manager Phone: [phone]
If to the lnterconnecting Utility:
Interconnecting Utility: Avista Corporation
Attention: Manager, Transmission Services
Address: 1411 E. Mssion Avenue
City: Spokaae State: Washington Z,tp: 99202-1902
Phone: (509) 489{500 Fax: [phone]
i0.4 Desisnated Operating Rcorcsentative. Thc Partres may also dcsignate operating
reprcsentatives to conduct the cornrnunications which may be necessary or convenienl for lhe
administration of this Agreement. This person will also serve as the point of contact with respect
to operations and maintenance of the Party's facilities.
Interconnection Customer's Operating Representative:
Interconnectioo Customer Stimson Lumber Company
Attention: Manager
Address: 732 106 St.
City: Plummer State: Idaho Zp: 83851
Phone: [phone]
Rcgioral General Manager Phone: [phone]M
Intdconnecting Utility's Operating Reprcscntative:
lnterconnecting Utrlity: Avista Corporation
Anention: System Operator, Transmission Opcrations
Address: l4ll E. Mission Avcnue
City: Spokane State: Washingron Z,rp: 99202-19O2
Phone: [phone] Fax: [phone]
Stimson Generator Interconnection Agrcement (GlA)-14-
10.5 Chanses to the Notice Information. Either Party may change this information by
giving five Business Days written notice prior to the effective date of the change.
ARTICLE I 1. SIGNATIJ'RES
IN WITNESS WHEREOF, the Parties have caused this Ageement to be executed by
their respective duly au&orized representatives.
For the Interconnectins Utilitv
Name:
Signature:
TitIC:
Date:
Name:
Signature
Titlc:
Date:
William
Jeff Schlect
Manager, Transmission Services
Qc--t<s6s 7 q
^006
For thc Interconnect:on Customer
E. Percssiri "ll)0,lwuttrt
Vice President / CFO
tJ 0b
Stimson Gcncrator lntcrconncction Agreerncnt (GlA)-15-
Attachment I
Glossary of Terms
Afrecled System - An electric $ystem other than thc Interconnecting Utilityk Electric System
that may be affected by the proposed interconnection.
Applicable Laws and Regulatlons - All duly promulgated applicable fcderal, state and local
laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or
adnunistrative ordcrs, pcrmits and other duly authorized actions of any Govemmental Authonty
Business Day - Monday through Friday, excluding Federal Holidays.
Default - The failure of a breaching Pafly to cure its brcach under the Small Generator
lnterconnection Agreement.
Electric System - The facilities owned, controlled or operated by the Interconnecting Uulity
Good Utility Practice - Any of the practices, methods and acts engaged in or approved by a
significant portion of the electric industry during the relevant time period, or any of the practices,
methods and acts which, in the exercise of reasonoble judgment in light of the facts known at the
time the decision was made, could have been expected to accomplish the desLed rcsult at a
rcasonable cost consistent with good business practices, reliability, safcty and expedition. Good
Utility Practice is not intended to be limited to the optimum practice, method, or act to the
cxclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted
in the region.
Goveramental Authority - Any fedcral, state, Iocal or other govemmental rcgulatory or
administrative agency, court, commission, department, board, or other govemmental subdivision,
Iegislature, rulemaking board, tribunal, or other goverDmental euthority having jurisdiction over
the Parties, their rcspective facilities, or the respective services they provide, and exercising or
entitled to exercise any adrninistrativc, executivc, police, or taxing authority or power; provided,
howcver, that such term does not include the Interconnection Customer, the lnterconncction
Provider, or any Affiliate thereof.
Interconnecting Utility - The public utility (or its designated agent) that owns, controls, or
operates transmission or distribution facilities uscd for the [ansmission of electricity in inlerstate
coltmerce.
Glossary of Terms I
Distribution System - The Interconnecting Utility's facilities and equipmenl used to transmit
electricity to ultimatc usage points such as homes and industries dircctly from ncarby generators
or from intcrchanges with higher voltage transmission networks which transport bulk power over
longer distances. The voltagc levels at which Distribution Systems op€rate differ arnong areas.
Intercotrnection Customer - Any entity that proposes to interconnect its Small Generating
Facility with the Intcrconnccting Utility's Electric System.
Interconnection Facilities - The hterconnecting Utility's Intercofflection Facilities and the
Intenonnection Customer's Interconnection Facilities. Collectively, Iaterconnection Facilities
include all facilities and equipment between the Small Generating Facility and the Point of
Interconnection, including any modification, additions or upglades that are necessaty to
physically and electrically interconnect the Small Generadng Facility to thc lnterconnecting
Utility's Electric System.
lnterconnection Requcst - The Interconnection Customer's requcst to interconnect a new Small
Generating Facility, or to increase the capacity of, or make a Material Modificatron to the
operating characteristics of, an existing Small Gcnerating Facility that is intcrconnscrcd with the
Interconnectrng Utility's Electric System.
Material Modilicedon - A modification that has a material impact on the cost or timing of any
Interconnection Request with a later queue priority date.
Operating Requirements - Any operating and technical requircments that may be applicable
due to Regional Trsnsmission Organization, Independcnt System Operator, control area, or the
lnterconne.ting Utility's rcquirements, including those set fonh in the Small Generator
Interconnection Agrccmcnt.
Party or Parties - The lnterconnecting Utility and l-nterconnection Customer
Point of Interconnection - The point where the Interconnection Facilities connect with the
Interconnecting Utility's Electric Systcm.
Reasonable Efforts - With respect to an action required to b€ attcmpted or takon by a Party
under ths Small Generslor Interconnection Agreement, efforts that are timely and consistcnt with
Good Utility Practice and are otherwise subsantially equivalent to those a Party would use to
protect its own interests.
Srmll Generating Pacility - The Interconnection Customer's device for the production of
elcctricity identified in the Interconnection Request, but shall not include the Interconnection
Customer's lnterconnection Facilities.
WIS Agreement - Means the Agreement Limiting Liabiliry Among wesrem Inrerconnectcd
Systcms.
Glossary of Terms -')
.4,ttachment 2
Description of the Small Generating Facility,
Interconnection Facilities, and Metering Equipment
Descriotion of lnterconnection Facilities. Ownership and Costs
Avista-Owned lnterconnection Facilities
The following equipment are existing interconnection facilities owned by Avista:
Vr'cstinghouse Type ES-560 oil circuit rccloser, l4.4kV, 560 amp, 8000 amp intcmrpting,
complete with a Bitronics thre€-phase solid state demand ammeter, three phase and one ground
Westinghouse T1'pe CO overcurrcnt relays, one Westinghousc Type RC reclosing relay, and six
I200:5 A multi-ratio bushing current transformers.
Thrce S&C 15 kV, 6m A single-pole single-throw disconnect switches.
Thrce S&C 15 kV, 600 A single-pole tandem-transfer disconnect switches.
One General Electric Type JVW-5 70:l ratro potential transformer with secondary disconnectrng
device.
Three Gcncral Electric Type IKW-5 400:5 A current tansformers
Thrcc 10 kV distribudon class lightrdng arresters.
One wood feeder bay, complete \,r/ith insulators and conductors.
One General Electdc Typc AB-40 voltmeter.
The following equipment was installed for this project lo facilitate ir interconnection of the
generation. This equipment was originally paid for by Plummer Forest Products but
Avista will own the equipmenL
One 78" high standard 19" equipment rack with panel segrnents.
One thrre element solid state bidirectional watt/varhour mcter with mass memory, Scientific
Columbus Type JEM 603 J-P-MM.
One microprocessor based protective rclay, Schweitzer Engineering l-aboratories Type SEL-351
for feeder overcurrcnt, under/overflEquency, under/over voltage, voltage unbalance and hot
bus/dead line reclosing functions.
-l
Four Statcs Typc FMS l0 pole test swiahes for thc above metcr and relay
One RFL telemetry tone rack with power supply and cards for continuous transmrssion of
inEtantancous wans and vars, and hourly transmission of kilowatthour quantities.
One fiberglass telephone equipment cabinet with SNC telephone isolation equipment
Approximately 40' of 2'' Schedulc 80 PVC conduit for trew telephonc circuit, trenched, installed
and bacldilled
Avista drawing L-31123 is anached (included in Attachment 3) which is an interconnection one
line diagam of the metcring points and locations.
There are no Terminal Voltage Regulators on this project. The generators follow voltage of the
Avista systcm bus.
Generator-Owned Itrterconnection Facilities
The generation facility consists of a 6,250 kW, 3600 rpm, 2t100 / 416O Volt, Westinghouse
tubine generator unit consisting of an impulse type condensing steam turbine connected to a
5,000 kW,0.80 p.f. 6,250 kVA, air-coolcd generator, with direct connected 125 Volt excitcr.
The steam generator is a Riley Generating wood fired, traveling grate sprEadcr, sroke type, with
capacity of 70,000 lbs-/hr. of 750 degree (F) steam at 420 psig.
The overall oneJine diagram of the Generation Facility is attached- The power is transformed
through a three phasc 6.25 MVA Delta-Y 4160 / l38m Volt ransformer, thar is protected by a
560 Amp l5 kV breaker. Between the brcal<er and Plummer Substation is a 13.8 kV distribution
line owncd by Stimson Lumber Company. The conductor of this distribution line is 4/0 ASCR
and is approximately % mile long. Thc point of inlcrcomection and point of change of
ownership is a breaker inside Plummer Substation that is uscd solely for the Stimson L,umber
Company generation connertion and is owned by Avista.
Drawing 1305-1841 (Pacific Crown Powcr Transmission One-.line) is attached (included in
Anachmcnt 3) as additional information.
Attachment 3
One.line Diagram Depicting the Small Generating Facility, Interconnection
Facilities, and Metering Equipment
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Attachment 4
Additional Operating Requirements for the Interconnecting Utility's
Electric System and Alfected Systems Needed to Support
the Interconnection Customer's Needs
l. Generallnterconnectionrequiremen for senerators srcater than 5000 kW
1.1 Generating Facility will be interconnected at transmission voltage levels only
unless systgm studies indicate disuibution connections are acceptable.
1.2 Generating in parallel with Generating Company's load will be acceptable only if
Ganerating Facility can be installed at disuibuuon primary voltage levels.
1.3 Ccncrating Company will be rcsponsible for ail transformation. Transformers
will be delta-wye,/grd connected (wye on the primary sidc), unlcss otherwise agreed to by Avista.
Avisu must approve all transformer specifications.
1.4 All generator sizes will requirc detailed studies to determine the extent of the
impact on Avista's electrical system and the scope of required interconnection facilities.
1.5 All generators of this size will be synchronous machines unless approved by
Avista.
1.6 Depending on the size, location, and separat€ contractual arrangements for the
generalion, Avista may requirc rea.l-timc status of some elements of the Generating Facility, as
weU as direct voice communications with the operations personnel at the Facility.
2. Meterins. Communications and Data.
2.1 Avista will install a bidircctional encrgy meter with time-referenced recording of
kWh and kVARh (at Generating Facility's cxpcnse).
2.2 All generators of this sizc will requirc tclcmelry of real and reactive power, as
well as krir'h and kVARh transmittcd to Avista's System Operations Office.
2.3 Verbal communications will be rrquired bctwe€n Generating Facility's operator
and Avista's System Operations Office for all Generation of this size before Ccneraring Facility
is put on line, or taken off line.
3. Protection.
3.1 Depending on size and location, Gcneration Facility may be required to
panicipate in any Remedial Action Schemes designated by Avista, NERC, WSCC, NWPP, or
any other regional operation authority.
3.2 All gcnerators will be requircd to have minimal prolection as specified in
Section 3 of this Agrcement. Additional protection may bc nccded depending on the lrsults of
systcm studies, (up to and including communication-aided tripping schemes).
4. Voltase ld Frcquencv.
4.1 Steady state and transient voltage and frequency support will be required from all
generatoE of this size.
4.2 All generators will be supplied with high response excitation systems specified
and tested in accordance with ANSyIEEE Standard 42.1 through 42.5, including
latest revisions or additions. Specific rcsponse characteristics, regulation abilities,
and operating rangeE must b€ agreed upon by Avisu before interconnection to
Avista's electrical system.
4.3 Any gencrator of this sizc shall include a power system stabilizer if its excitation
system is suitablc for such usc. All new gencrators shall bc spcified for
construction with a suitable ercitation system, (per WSCC policy)..
4.4 All generaton will be supplied with speed govcming of their prime mover.
Govemor controls will comply with NERC, WSCC, and ANSVTFFF Standards
for speed/load contrcl. At a minimum, govemor droop will be set at 5% and
deadband will not excecd plus or minus 0.06%.
4.5 Grncrating Facility and/or associatcd loads must have the capability of opcrating
at a power factor of 95% or bcttcr (leading or lagging) as scheduled by Avista's
Sysrcm Opcrations Office. In Addition, Avista's System Opcrations Office will
have the right to request generator operation outsidc of 95% power faclor as long
as the machine's capabilities are not exceeded-
4.6 It must bc recogniz€d that generators of this size will be expected to operate
temporarily outsidc of normal voltage and frequency ranEes in order to support
area or regiona.l distubanccs and prevent widesprcad outageE. This becomes vcry
2
important for larger generating units. The Generating Company will be expecled
to wort closely with Avista's technical staff in the preparation of all machine
specifications .
-3-
Attachment 5
l. Statements of Dispute. The Dispute Resolution provisions of this Agreement
shail be invoked by either Party to resolve any Dispute arising under this Agreement. Within
fourteen (14) calendar days of a Party's request that the arbitration process be commenced, each
Party shall submit a statement in wdting to the other Party, which statement shall set fonh in
reasonable detail the nature of the Dispurc and the issues to be arbitrated.
2. Selection of an Arbitrator. Within ten (10) calendar days foliowing the
submission of th€ statements described in Section I above, the Parties shall s€lect an arbirator
familiar with and knowledgeable about the technical and regulatory requirements for gencration
interconnection. If thc Parties cannot agree upon an arbitralor, or do not agree on a means of
selecting an arbitrator that differs from that set forth herEin, thc Parties shall apply to the Idaho
Public Utilities Commission, for the appoinunent of an arbitrator. Absent the expr€ss written
consent of all Parties as to any particular individual, no person shall be eligible for selection as
an arbitruor who is a past or present officcr, mcmber of the goveming body, employcc of, or
consultant to any of the Parties, or of an entity related to or affiliated with any of the Parties, or
whose interests aIe otherwise affected by the matter to be arbitrated. Any individual designated
as an arbitrator shall make known to the Pafiies any such disqualifying relationship, and a new
arbitrator shall bc dcsignated in accordance with the provisions of this Section.
3. Procedural Rules. Thc arbitrator shall dcterminc discovery procedures,
compliance with intervention requirEments, how evidcnce shall be taken, what writtcn submittals
may be made and other such proccdurEl matters, taking into account the complexity of the issues
involved, the extent to which factual matters are disputed and the extent to which the credibility
of witnesses is relevant to a resolution of the dispute. Interveners shall have the same procedura'l
rights as penics to the dispute. Each party to the dispute shall produce all evidence dctermined
by thc arbitrator to be rrlevant to the issues presented. To the exte[t such evidcncc involves
propnetary or conlidential information, the arbitrator shall issue an appropriate protectivc ordcr
that shall be complied with by all parties to the dispute. The arbitrator may elect to rcsolve the
arbifation matter solely on the basis of written evidence and arguments.
Dispute Resolution Procedures
-l-
4. Intervention. The arbitrator shall admit as irterveners iD tie Dispute Resolution
pmcess any pany that rcquests intervention and demonstrates to the arbitrator good cause for
intervention. Absenr the agreement to the contrary of all parties, no party shall be pcrmitted to
inlervene unless, as a condilion of its intervcntion, it agrces to be bound by the provisions of this
Attachment 5 in regard to the arbitration, including the provisions rclated to deference on appeal
to the FERC or state regulatory commission set forth in Scction 8.
5. Evidence. The a$itrator sha.ll take evidence submitted by the drsputing p&rties in
accordance with procedures established by the arbitrator and may request additlonal information,
including thc opinion of recognized technical bodies. All disputing parties shall bc afforded a
rcasonable opponunity to rebut any such additional information. Other affecrcd cntities may
request in writing that the aftitmtor consider additional information, and the arbitrator may
consider such additional information, subject to a right of the disputing parties to have a
reasonable opportunity to rebut such additional information.
6, Subslantive Standards and Decision. As soon as practicable, but in no event
later than one hundrcd fifteen (115) calendar days after his or her selection as arbitrator, the
arbitrator shall render a written decision and reasons therefore. ln reaching his or her dccision,
the arbitrator shall consider the intcnt of this Agrcement; other applicable agreements, laws or
rcgulations; or applicable technical standards and criteria not inconsistent with this Agreement.
A wrinen &cision, including specific findings of fact, explaining the basis for the award sha.ll be
provided by the arbiuator with the written notice to the disputing parties. Awards shall be based
only on the evidence on the record before the a$irators. No award that is not appealcd shall be
deemed to be precedential in any oth€r arbiuation rclated to a different dispute.
7. Compliance ard Cost$
7.7 Compliance witb the Arbitrators' Award. Immediately upon the
decision by the arbitrators, cxcept during the period of appeal as providcd for in Section 8, the
disputing parties shall commence to take, and thercafEr diligently prosecute to completion,
whatever action is rcquired to comply with thc selccted award to the extent the selecrcd award
does not require regulatory action. To thc extent the sward requires approval or regulatory action
by a local, tnbal, state, federal or provincial body of competent jurisdiction; FERC review of an
award involving a federal power marketing agency; or a FERC filing by a transmission provider
subject to Scctions 205 or 206 of the Federal Power Act, 16 USC 0$824d and 824e; the affccted
a
disputing party shall promptly submit and support thar portron of the award with the appropriatc
authority except as provided in Section 8. Any and all costs associarcd with thc arbitration Out
not including dre disputing partics' costs a$ociated with attomey and witncss fees) shall be
borne by the disputing pany or partres whose proposed award was not selected, unless the
disputing parties agrce to an a.ltemate method of allocating costs, or unless the aftitrator
determines il would be appropriate to allocate all or a portion of such costs to one or morc
lntervencrs
7.2 Effect of Award. Except for it not being precedential, an award that is not
appealed shall be deemed to have the sanre force and effect as an order entered by the
appropriate regulatory agency.
8. Grounds for Appca.l. Within thirty (30) calendar days of the issuance of any
arbitration award, any pany to an arbitration may apply to the FERC or ro a state regulatory
comrnission to hear an appeal of such award with respect to matten to which a regulatory agency
has jurisdiclion, but only upon the grounds that the award is contrary to or beyond the scope of
this Agreement or is unjust, unreasonable, unduly discriminatory or prcferendal or otherwise
incorsistent with then applicable standards or policies or applicable law. Any appeal shall be
based solely upon the rccord assembled by the a$itrator; provided however, that any ordcr by aa
arbirrator excluding material frcm the adiuation record or any ruling that is alleged to vioiate
due process may bc explicitly appealcd by a pafiy as a pafl of an appcal undcr this Section 8.
Psrties to a$itratons agrce that (i) substantial defcrcnce shall be afforded to the factual frndings
of the aftitrator; (ii) the portion, if any, of the award rclating to issucs not of first impression
(i.e., maners previously decidcd by the FERC, I slate rcgulatory commission, or a court of
compctcnt jurisdiction in cases involving comparable facts and circumstances) should be
afforded appropriat€ defercncei and (iii) the portion, if any, of the award relating to issues of fint
impression should be afforded no defcrence. Implernentation o[ the award shall be stayed
pending an appcal unlcss and until, at the rcquest of a disputing parry, an ordcr shortening or
extending the stay.
9, No Expansion of Fsctual Record. No party m an arbitation shall seek to
cxpand the factual record beyond lhat assembled by the arbitrator, except that any party to an
arbitration may submit such additional evidence or argument as may be needed to respond to
ncw evidence or arguments raised by interveners who were not pafiies to the arbitration.
-3-
10. Judiclal Enforcemenl Subject to the right of any party o appeal, and
exhaustion of remedies, any party shall be entitled to seek enforcement of thc award in any court
of competent jurisdiction.
4
Contact lnformation
1 Verbal Communications. All communicatrons betwe€n Generating Company and
Avista shall be done verbally by notifying the following panies:
(a) Pre-Schedule (5:30 a.m. to approximately l:30 p.m. on normal Business Days):
Avista Pre-Scheduler (509) 495-49 1 I
Altemate Phone Number: (509) 4954073
Stimson Lumber Manager, Stimson Plummcr Sawmill [phone]
Altemate Phone Number: Regional Gcneral Manager
(208) 6674304
(b)Real-Time Schedule (available 24 hours per day):
Avisu Real-Time Scheduler (509) 495-853a
Stimson Lumber Manager, Stimson Plummer Sawmill [phone]
Altemate Phone Number: Regiona! General Manager
(208) 6674304
(c)During normal business hours, all verbal communications relating to intemrptions
and outages:
Avista System Operator (509) 4954105
Altemale Phone Number: (509) 4954934
Stimson Lumber Manager, Stimson Plurnmer Sawmill (208) 68G9080
Alternate Phone Number: Regional General Manager
(zOE)ffi7-43w
(d) Outside of normal business hous (nighs, weekends, and holidays), ail verbal
communications rclating to intemrptions and oulages shall take place between the
following personnel:
Avista System Opcrator (509) 4954i05
Altemate Phone Number: [phone]
Stimson Lumbcr Manager, Stimson Plummer Sawmill
Cell phone: [phone]
Alternate Phone Numbcr Regiona.l General Manager
Ccll phone [phone]
Either Party may provide writtcn notice to the other Party setting forth differ€nt contsct
numbers.
I
Attachment 6
T'INAL
t L20/t e
Erhibil D
Dccrtotion Of thc frcllin'
This Exhibit is wEivcd as Stirnsfi is ao cxising faciln;r.
Erhibit D
FINAL
IznAt9
Rcplrccucnt f,rhlbit E
Purcbm Priecr
Thc pricing ioftilntion providcd hcrain ie bcscd oo cuncnr ovoided cost ratcr in ldsho (Augurt
30.201 l) rDd b $bjccl !o dunge.
Tbc priciug +plictblc to drc pojcct will bc consiltcnt with tbc rvoidcd cost retcs thrr erc in
cffoct et drc tirnc thst lbc prrtics eotcr imo r dcfrnitivc rgrc*rnurt.
Perio'd Hcavy lood Hours
ft4u&
Light Lred Hours
sarwb
53J7
4t.67
51.57
48.17
37.47
48.t7
2020 Ja+. Fcb
2020 Mar-Jun
2020 Jul-Dec
Elhibir E
I