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HomeMy WebLinkAbout20120522Direct & Exhibits Guy.pdfY GIVEESLE LLP LAW OFFICES Gary G. Allen Steven J. Hippler Deborah E. Nelson 601 W. Bannock Street Peter G. Barton Donald E. Knickrehm Kelsey J. Nunez P0 Box 2720, Boise, Idaho 83701 Christopher J. Beeson Debora K. Kristensen W. Hugh ORiordan, LLM. TELEPHONE: 208 388-1200 Clint R. Bounder Anne C. Kunkel Angela M. Reed FACSIMILE: 208 388-1300 Erik J. Bounder Michael P. Lawrence Justin A. Steiner WEBSITE: www.givenspursley.com Preston N. Carter Franklin G. Lee Kenton H. Walker Jeremy C. Chou David R. Lombardi Robert B. White William C. Cole Emily L. McClure Deborah B. Nelson Michael C. Creamer Kenneth R. McClure Retired den®givenspursley.com Amber N. Dies Kelly Greene McConnell Kenneth L. Purstey Elizabeth M. Donick Alex P. McLaughlin James A. McClure (1924-2011) Thomas E. Dvorak Christopher H. Meyer Raymond D. Givens (1917-2008) Jeffrey C. Fereday L. Edward Miller Justin M. Fredin Patrick J. Miller Martin C. Hendrickson Judson B. Montgomery May 29, 2012 —1 VL4 HAND DELIVERY rn r\) C) ci.J. o m Ms. Jean Jewell Commission Secretary - Idaho Public Utilities Commission E5 ç 472 W. Washington Boise, ID 83702 C.0 p Re: GNR-E-11-03 - Direct Testimony and Exhibits of Richard Guy Dear Ms. Jewell: Enclosed please find Idaho Wind Partners I, LLC, resubmitted prepared Direct Testimony of Richard Guy in the above-referenced docket. The testimony is identical to that submitted on May 21, 2012 except that line numbering has been added. Per the Commission's Rules of Procedure, we have enclosed an original and nine (9) copies, as well as a CD containing a copy of the testimony in Word format. Sincerely, Deborah E. Nelson DEN/kml 1486318_i Enclosures Deborah E. Nelson, ISB # 5711 Kelsey J. Nunez, ISB# 7899 GIVENS PURSLEY LLP 601 W. Bannock St. Post Office Box 2720 Boise, Idaho 83701-2720 Telephone: 208-388-1200 Facsimile: 208-388-1300 11067-6147024812 RECEIVED ri 11.4; . r1- ._,. J UT LHL' Attorneys for Idaho Wind Partners I, LLC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE COMMISSION'S REVIEW OF PURPA QF CONTRACT PROVISIONS INCLUDING THE SURROGATE AVOIDED RESOURCE (SAR) AND INTEGRATED RESOURCE PLANNING (IRP) METHODOLOGIES FOR CALCULATING PUBLSIHSED AVOIDED COST RATES Case No. GNR-E- 11-03 DIRECT TESTIMONY OF RICHARD GUY ON BEHALF OF IDAHO WIND PARTNERS I, LLC May 21, 2012 Guy DI- 1 Idaho Wind Partners I, LLC I Q. Please state your name and business address for the record. 2 A. Richard Guy, 450 Alan Drive, Jerome, ID 83338. 3 Q. Who is your employer and what is your position? 4 A. I am the General Manager of Reunion Power, LLC, which is the Managing Member of 5 Idaho Wind Partners 1, LLC. 6 Q. What is your educational and professional background? 7 A. I have been working in the energy field for 35 years. I have provided my Curriculum 8 Vitae.' 9 Q. What is the purpose of your testimony in this proceeding? 10 A. The purpose of my testimony is to provide comments on Idaho Power Company's 11 proposal to apply a new economic curtailment tariff (Schedule 74) against existing fixed-rate QF 12 contracts. 13 Q. Does IWP have facilities that would be affected by the proposed curtailment tariff? 14 A. Yes. 1WP owns and operates eleven wind projects in Idaho with a combined capacity of 15 183 MW ("IWP Projects"). The IWP Projects are Qualifying Facilities ("QFs") pursuant to the 16 Public Utility Regulatory Policies Act of 1978 ("PURPA"). Eight of the IWP Projects—Burley 17 Butte, Golden Valley, Milner Dam, Oregon Trail, Pilgrim Stage Station, Salmon Falls, Thousand 18 Springs, and Tuana Gulch—have year 2005 Firm Energy Sales Agreements ("FESAs")2 with 19 Idaho Power, approved by the Idaho Public Utilities Commission ("Commission").3 Three of the 20 IWP Projects—Camp Reed, Payne's Ferry and Yahoo Creek—have year 2009 FESAs 4 with 21 Idaho Power, approved by the Commission.5 Each of the 1WP Projects agreed, in its Generator 'See Exhibit 2 10 1. 2 The 2005 FESAS are attached as Exhibits 2102 (Burley Butte), 2103 (Golden Valley), 2104 (Milner Dam), 2105 (Oregon Trail), 2106 (Pilgrim Stage Station), 2107 (Salmon Falls), 2108 (Thousand Springs), and 2109 (Tuana Gulch). Order Nos. 29813 (Burley Butte), 29814 (Golden Valley), 29948 (Milner Dam), 29772 (Oregon Trail), 29771 (Pilgrim Stage Station), 29951 (Salmon Falls), 29770 (Thousand Springs), and 29773 (Tuana Gulch). ' The 2009 FESAs are attached as Exhibits 2110 (Camp Reed), 2111 (Payne's Ferry), and 2112 (Yahoo Creek). Order Nos. 30924 (Camp Reed), 30926 (Payne's Ferry), and 30925 (Yahoo Creek). Guy DI -2 Idaho Wind Partners I, LLC I Interconnection Agreement ("GIA") with Idaho Power, to be subject to Generator Output 2 Limiting Control ("GOLC")6 pursuant to Commission Order No. 30414 in docket IPC-E-6-21. 3 Q. How much money has been invested in development of the IWP Projects to date? 4 A. Approximately $450 million. 5 Q. Do the IWP Projects provide economic benefits in Idaho? 6 A. Yes. The operating IWP Projects contribute approximately $2.4 million annually in 7 wages and locally-purchased goods and services; approximately $860,000 annually in various 8 state and local taxes; and approximately $820,000 annually in landowner payments. The IWP 9 Projects provide 18 high-wage permanent full-time jobs with medical and other benefits. 10 Q. Did IWP build the IWP Projects and secure financing based on certain 11 expectations? 12 A. Yes. The Projects secured both debt and equity financing based on revenue projections, 13 which in turn were based on the fixed energy prices set forth in the FESAs, the known power 14 generation characteristics of the turbines, and a forecast of the available wind resource. Our 15 revenue projections included no allowances for economic curtailment since that right is not 16 provided to Idaho Power by any of the IWP Projects' FESAs. 17 Q. What is your understanding of the 1WP Projects' agreement to be subject to 18 GOLC? 19 A. Each of the Projects elected in its GIA to be subject to GOLC pursuant to the 20 Commission's Order No. 30414 (August 29, 2007) in docket IPC-E-6-21. This Order approved 21 a Settlement Stipulation between Idaho Power and certain QFs that called for the installation of 22 GOLC technology to facilitate a specific curtailment called "Cassia Redispatch."7 6 See Attachments 4 and 5 of the GIAs. The GIAs are attached as Exhibits 2113 (Burley Butte), 2114 (Pilgrim Stage Station), 2115 (Camp Reed, Oregon Trail, Payne's Ferry, Thousand Springs, Tuana Gulch, Yahoo Creek), 2116 (Golden Valley), 2117 (Milner Dam), and 2118 (Salmon Falls). The Settlement Stipulation was attached to the Joint Motion to Approve Settlement and to Dismiss Complaint, attached as Exhibit 2119. Guy DI -3 Idaho Wind Partners I, LLC I Q. What is your understanding of when Cassia Redispatch could occur? 2 A. GOLC could only be used in limited circumstances. The Commission explains in Order 3 No. 30414 at page 4: "Idaho Power will call for a Cassia Redispatch only when necessary to 4 respond to system emergencies or when identified transmission lines are out of service." 5 Q. Are there any other circumstances under which you understand the Projects may be 6 curtailed? 7 A. The 1WP Projects' FESAs set forth very narrow circumstances for curtailment: (1) an 8 event of Force Maj cure, Forced Outage or temporary disconnection of the Facility in accordance 9 with Schedule 72; or (2) if Idaho Power reasonably determines our operation is unsafe or may 10 otherwise adversely affect Idaho Power's equipment, personnel or service to its customers 11 (Sections 14.2.1 and 14.2.2, 2005 FESAs; Sections 12.2.1 and 12.2.2, 2009 FESAs). 12 Q. Based on the direct testimony of Idaho Power witness Tessia Park and the proposed 13 Schedule 74, can you determine the extent of economic curtailment that IWP may 14 experience? 15 A. No. The proposal lacks the necessary specificity to determine the specific circumstances 16 in which Idaho Power could cease purchases under the 1WP Projects' FESAs. 17 Q. Are you familiar with the FERC Rule 304(f) that Idaho Power witness Tessia Park 18 states is the basis for the proposed Schedule 74? 19 A. Yes. Like witness Park, I am not a lawyer, but I am familiar with Rule 304(f) and 20 associated FERC orders, and I do not believe this rule applies to QFs with fixed-rate contracts 21 like the IWP Projects' FESAs. 22 Q. What is your understanding of when Rule 304(1) is intended to apply? 23 A. FERC explains in its Order adopting the rule (FERC Order No. 69)8 that section 304(f) 24 applies to those QF contracts where the rate is determined based on the avoided costs at the time 25 of delivery (i.e. in "real time"), as opposed to being fixed in the initial contract. FERC explains 26 that 304(f) was intended to deal with a certain condition that can occur during light loading 27 periods: if a utility operating only base load units during these periods was forced to cut back 8 The excerpt from FERC Order No. 69 (February 19, 1980) containing relevant pages 75-77 is attached as Exhibit 2120. - Guy DI-4 Idaho Wind Partners I, LLC 1 output to accommodate purchases from QFs, then the base load units might not be able to 2 increase output rapidly when the system demand later increased. As a result, the utility would be 3 required to use less efficient, higher cost units with faster startup to meet the demand. FERC 4 was worried that this situation, when applied to a QF contract whose avoided cost rate is 5 determined at the time of delivery, could actually force the QF to have to pay the utility to take 6 its power. To avoid this situation, FERC proposed a rule to require the utility to identify periods 7 during which this would occur so the QF could cease delivery during those periods. 8 Q. What is the basis for your understanding that Rule 304(f) does not apply to fixed- 9 rate QF contracts? 10 A. FERC specifically explains in Order 69, at page 77, that Rule 304(f) does not apply to 11 contracts where the avoided cost rate was pre-determined and fixed in the contract: 12 The Commission does not intend that this paragraph [304(f)] 13 override contractual or other legally enforceable obligations 14 incurred by the electric utility to purchase from a qualifying 15 facility. In such arrangements, the established rate is based on the 16 recognition that the value of the purchase will vary with the 17 changes in the utility's operating costs. These variations ordinarily 18 are taken into account, and the resulting rate represents the average 19 value of the purchase over the duration of the obligation. The 20 occurrence of such periods may similarly be taken into account in 21 determining rates for purchases. 22 FERC confirmed this distinction between real-time and fixed-rate contracts again just a 23 few months ago in the Entergy Order that was cited in Tessia Park's testimony as demonstrating 24 a utility's ability to curtail QF purchases.9 What witness Park did not add was that, in that Order, 25 where FERC actually rejected a proposed curtailment, FERC explained that fixed-rate contracts 26 already take into account the anticipated average or composite avoided costs for the life of the 27 contract, including the potential times for negative avoided costs. On the other hand, the Entergy 28 Order noted, for contracts where the avoided cost rate is determined "in real time" and could 29 potentially be negative, the rule applies to allow the QF to cease deliveries. FERC concluded: 30 "In neither case is the utility authorized to curtail the QF purchase unilaterally." Order on Compliance Filing, 137 FERC ¶ 61,199 (December 15, 2011). Guy DI -5 Idaho Wind Partners I, LLC 1 Q. Based on FERC's statements, do you agree with witness Park's assertion that Rule 2 304(f) applies to existing fixed-rate contracts such as the IWP Projects? 3 No. The fixed rates set forth in IWP Projects' FESAs reflect the parties' and the 4 Commission's determination, at that time, of the anticipated avoided costs for the twenty-year 5 term of the FESAs. This necessarily means that during some operational circumstances, Idaho 6 Power's real-time avoided costs may be below the rates, at other times, the real-time avoided 7 costs may be above the rates. As FERC explained, Rule 304(f) cannot be used to avoid 8 purchases under fixed-rate contracts in these circumstances. 9 Q. What operational and economic impacts might IWP experience if the proposed 10 economic curtailment is implemented? 11 A. Curtailment has a direct impact on our revenues. Revenues are based directly on hours of 12 operation. 1WP is not otherwise compensated for fixed costs that will continue during 13 curtailment. This could affect the IWP Projects' ability to comply with existing credit terms with 14 the IWP Projects' lenders, the effect of which could lead to various penalties and, ultimately, 15 default of the debt financing. 16 Curtailment also has a direct impact on our sale of Renewable Energy Credits ("RECs"). 17 Under the 1WP Projects' FESAs, IWP owns the RECs, and we can and do sell them. We 18 produce RECs only if we produce energy, so if curtailment causes us to produce less energy then 19 we produce fewer RECs and suffer a further reduction in revenue. 20 At the same time curtailment causes revenues to go down, it causes operating expenses to 21 go up. When a wind project is shut down, especially if it is done on short notice, it causes 22 mechanical difficulties. In addition to the additional wear and tear this places on the turbines and 23 other equipment, specific items may fail with a shutdown. For example, there are fuses (ranging 24 from approximately $10 to $1 0,000/per fuse) that may blow at any given time with a shutdown. 25 IWP would incur the hard and soft costs to physically replace these parts. Further, the IWP 26 Projects do not uniformly come back online with a simple remote switch but rather frequently 27 require on-site crews and manual adjustments to get the system fully operational again, all 28 causing further lost delivery hours and lost revenues beyond the actual period of curtailment. 29 And, low loading load periods typically occur in the middle of the night, which is of course an 30 expensive and challenging time to mobilize crews and to safely make the necessary repairs. Guy DI -6 Idaho Wind Partners I, LLC I Q. What impacts on others do you believe may occur if the proposed economic 2 curtailment is implemented? 3 A. To the extent IWP has lower revenues, then its landowners also receive less money, 4 causing indirect impacts in their communities. Also, the production taxes the IWP Projects pay 5 in lieu of property tax (3% of gross revenue) will decline as revenues decline. Most importantly, 6 investment in all regulated industries will be discouraged if contracts are perceived to be so 7 easily undone. 8 Q. What does IWP request the Commission to do in this docket? 9 A. IWP requests the Commission not to apply the proposed Schedule 74 to existing fixed- 10 rate QF contracts. 11 Q. Does this conclude your testimony in this proceeding? 12 A. Yes, it does. Guy DI -7 Idaho Wind Partners I, LLC CERTIFICATE OF SERVICE I hereby certify that on the 29th day of May, 2012 the foregoing was served upon the following individuals by the means indicated: Original plus 9 copies: Jean Jewell IIJ U.S. Mail, postage prepaid Secretary Express Mail Idaho Public Utilities Commission Z Hand Delivery 472 W. Washington [1 Facsimile P.0. Box 83720 M E-Mail Boise, ID 83720-0074 jean.jewell(puc.idaho.gov Service copies: Donovan E. Walker L U.S. Mail, postage prepaid Jason B. Williams Express Mail Idaho Power Company LI Hand Delivery P0 Box 70 LI Facsimile Boise, ID 83707-0070 Z E-Mail E-mail: dwalker@idahopower.com jwilliams(äidahopower.com Idaho Power Company Michael G. Andrea LI U.S. Mail, postage prepaid Avista Corporation Express Mail 1411 E. Mission Ave. F1 Hand Delivery Spokane, WA 99202 fl Facsimile E-mail: michael.andrea@avistacorp.com Z E-Mail A vista Corporation Daniel Solander U.S. Mail, postage prepaid PacifiCorp / dba Rocky Mountain Power fl Express Mail 201 S. Main St., Suite 2300 LI Hand Delivery Salt Lake City, UT 84111 LI Facsimile E-mail: daniel.solander(pacjficorp.com E-Mail Pacificorp, dba Rocky Mountain Power Guy DI -8 Idaho Wind Partners I, LLC Donald L Howell, II U S Mail, postage prepaid Kristine A. Sasser Express Mail Deputy Attorneys General El Hand Delivery Idaho Public Utilities Commission El Facsimile 472 W. Washington (83702) Z E-Mail P0 Box 83720 Boise, ID 83720-0074 E-mail: don.howepuc.idaho.gov kris.sasser(äpuc.idaho.gov Peter J. Richardson J U.S. Mail, postage prepaid Gregory M. Adams Express Mail Richardson & O'Leary, PLLC El Hand Delivery P0 Box 7218 E Facsimile Boise, ID 83702 E-Mail E-mail: peter@richardsonandoleary.com greg(richardsonandoleary.com The Northwest and Intermountain Power Producers Coalition, JR. Simplot Company, Grand View Solar II, Exergy Development Group of Idaho, LLC, The Board of County Commissioners ofAdams County, Idaho, and Clearwater Paper Corporation Robert D. Kahn E U.S. Mail, postage prepaid Executive Director El Express Mail Northwest and Intermountain Power El Hand Delivery Producers Coalition Facsimile 1117 Minor Ave., Suite 300 Z E-Mail Seattle, WA 98101 E-mail: rkahn(nippc.org The Northwest and Intermountain Power Producers Coalition Don Sturtevant U.S. Mail, postage prepaid Energy Director E Express Mail J.R. Simplot Company El Hand Delivery P0 Box 27 El Facsimile Boise, ID 83707-0027 Z E-Mail E-mail: don.sturtevant(sjmplot.com JR. Simplot Company Guy DI -9 Idaho Wind Partners I, LLC Robert A. Paul LI U.S. Mail, postage prepaid Grand View Solar II LI Express Mail 15690 Vista Circle LI Hand Delivery Desert Hot Springs, CA 92241 LI Facsimile E-mail: robertapau108(gmail.com E-Mail Grand View Solar II James Carkulis LI U S Mail, postage prepaid Managing Member LI Express Mail Exergy Development Group of Idaho, LLC LI Hand Delivery 802 W. Bannock St., Suite 1200 LI Facsimile Boise, ID 83702 E-Mail E-mail: jcarkulis@exergydevelopment.com Exergy Development Group ofIdaho, LLC Dr. Don Reading LI U.S. Mail, postage prepaid 6070 Hill Road LI Express Mail Boise, ID 83703 LI Hand Delivery E-mail: dreading(mindspring.com LI Facsimile Exergy Development Group of Idaho, LLC E-Mail Ronald Williams LI U.S. Mail, postage prepaid Williams Bradbury, P.C. LI Express Mail 1015 W. Hays St. LI Hand Delivery Boise, ID 83702 LI Facsimile E-mail: ron@williamsbradbury.com E-Mail Renewable Energy Coalition John R. Lowe LI U.S. Mail, postage prepaid 12050 SW Tremont St. LI Express Mail Portland, OR 97225 LI Hand Delivery E-mail: iravenesanmarcosyahoo.com LI Facsimile Renewable Energy Coalition E-Mail R. Greg Ferney LI U.S. Mail, postage prepaid Mimura Law Offices, PLLC LI Express Mail 2176 E. Franklin Rd., Suite 120 LI Hand Delivery Meridian, ID 83642 LI Facsimile E-mail: greg@mimuralaw.com E-Mail Interconnect Solar Development, LLC Guy DI-l0 Idaho Wind Partners I, LLC Bill Piske, Manager U.S. Mail, postage prepaid Interconnect Solar Development, LLC E Express Mail 1303 E. Carter Hand Delivery Boise, ID 83706 Facsimile E-mail: billpiske@cableone.net Z E-Mail Interconnect Solar Development, LLC Ronald L. Williams E U.S. Mail, postage prepaid Williams Bradbury, P.C. Express Mail 1015 W. Hays Street fl Hand Delivery Boise, ID 83702 fl Facsimile E-mail: ron@williamsbradbury.com Z E-Mail Dynamis Energy, LLC Wade Thomas E U.S. Mail, postage prepaid General Counsel 0 Express Mail Dynamis Energy, LLC El Hand Delivery 776 W. Riverside Dr., Suite 15 LI Facsimile Eagle, ID 83616 Z E-Mail E-mail: wthomas@dynamisenergy.com Dynamis Energy, LLC C. Thomas Arkoosh U.S. Mail, postage prepaid Capitol Law Group, PLLC Express Mail 205 N. 10th St., 4th Floor LI Hand Delivery P0 Box 2598 Facsimile Boise, ID 83701 Z E-Mail E-mail: tarkoosh(capitollawgroup.com North Side Canal Company Twin Falls Canal Company Brian Olmstead U.S. Mail, postage prepaid General Manager Express Mail Twin Falls Canal Company El Hand Delivery P0 Box 326 El Facsimile Twin Falls, ID 83303 Z E-Mail E-mail: olmstead(tfcanal.com Twin Falls Canal Company Ted Diehl U.S. Mail, postage prepaid General Manager Express Mail North Side Canal Company [I] Hand Delivery 921 N. Lincoln St. El Facsimile Jerome, ID 83338 Z E-Mail E-mail: nscanal(cableone.net North Side Canal Company Guy DI- 11 Idaho Wind Partners I, LLC Don Schoenbeck LI U.S. Mail, postage prepaid RCS LI Express Mail 900 Washington Street, Suite 780 LI Hand Delivery Vancouver, WA 98660 LI Facsimile E-mail dws@,L-c-s-inc.com Z E-Mail Lori Thomas LI U.S. Mail, postage prepaid Capitol Law Group, PLLC LI Express Mail P. Box 2598 LI Hand Delivery Boise, ID 83701-2598 LI Facsimile E-mail: lthomas@caDitollawgroup.com Z E-Mail Bill Brown, Chair LI U.S. Mail, postage prepaid Board of Commissioners LI Express Mail of Adams County, ID LI Hand Delivery P0 Box 48 LI Facsimile Council, ID 83612 Z E-Mail E-mail: bdbrown@frontiemet.net The Board of County Commissioners of Adams County, Idaho Ted S. Sorenson, P.E. LI U.S. Mail, postage prepaid Birch Power Company LI Express Mail 5203 South 11th East LI Hand Delivery Idaho Falls, ID 83404 LI Facsimile E-mail: ted(tsorenson.net Z E-Mail Birch Power Company Glenn Ikemoto LI U.S. Mail, postage prepaid Margaret Rueger LI Express Mail Idaho Windfarms, LLC LI Hand Delivery 672 Blair Avenue LI Facsimile Piedmont, CA 94611 E-Mail E-mail: glenni(envisionwind.com m&garet(envisionwind.com Idaho Windfarms, LLC Dean J. Miller LI U.S. Mail, postage prepaid McDevitt & Miller, LLP LI Express Mail 420 W. Bannock St. (83702) LI Hand Delivery P0 Box 2564 LI Facsimile Boise, ID 83701 E-Mail E-mail: joe(mcdevift-miller.com Idaho Windfarms, LLC and Ridgeline Energy, LLC Guy DI- 12 Idaho Wind Partners I, LLC Chas F McDevitt El U S Mail, postage prepaid McDevitt & Miller, LLP El Express Mail 420 W. Bannock St. (83702) El Hand Delivery P0 Box 2564 El Facsimile Boise, ID 83701 E-Mail E-mail: chas@mcdevitt-miller.com Idaho Windfarms, LLC and Ridgeline Energy, LLC M.J. Humphries El U.S. Mail, postage prepaid Blue Ribbon Energy LLC El Express Mail 4515 S. Ammqn Road El Hand Delivery Ammon, ID 83406 El Facsimile E-mail: blueribbonenergy@gmail.com E-Mail Blue Ribbon Energy LLC Arron F. Jepson El U.S. Mail, postage prepaid Blue Ribbon Energy LLC El Express Mail 10660 South 540 East El Hand Delivery Sandy, UT 84070 El Facsimile E-mail: arronesg(aol.com E-Mail Blue Ribbon Energy LLC Dean J. Miller El U.S. Mail, postage prepaid McDevitt & Miller, LLP El Express Mail 420 W. Bannock St. (83702) El Hand Delivery P0 Box 2564 El Facsimile Boise, ID 83701 E-Mail E-mail: joeCmcdeviU-miller.com Renewable Northwest Project Megan Walseth Decker El U.S. Mail, postage prepaid Senior Staff Counsel El Express Mail Renewable Northwest Project El Hand Delivery 421 SW 6th Avenue, Suite 1125 El Facsimile Portland, OR 97204 E-Mail E-mail: megan(mD.org Renewable Northwest Project Guy DI-13 Idaho Wind Partners I, LLC Benjamin J Otto fl U S Mail, postage prepaid Idaho Conservation League Express Mail 710 N Sixth Street (83702) Hand Delivery P0 Box 844 Facsimile Boise, ID 83701 E-Mail E-mail: botto(idahoconsewation.org Idaho Conservation League Liz Woodruff U S Mail, postage prepaid Ken Miller fl Express Mail Snake River Alliance fl Hand Delivery P0 Box 1731 Facsimile Boise, ID 83701 E-Mail Email: lwoodmff(,snakerivera1liance.org kmillersnakerivera11iance.org Snake River Alliance Mary Lewallen U.S. Mail, postage prepaid Clearwater Paper Corporation Express Mail 601 W. Riverside Ave., Suite 1100 Hand Delivery Spokane, WA 99201 Facsimile E-mail: marv.lewallen(c1earwater,aper.com E-Mail Clearwater Paper Corporation Tauna Christensen fl U S Mail, postage prepaid Energy Integrity Project [1 Express Mail 769 N 1100 E Hand Delivery Shelley, ID 83274 fl Facsimile E-mail tauna(energyintegntyproject org E-Mail Energy Integrity Project Deborah E. Nelson GuyDI - 14 Idaho Wind Partners I, LLC RICHARD J. GUY SUMMARY Electric power executive with significant successful experience in all areas of business development, all aspects of generation and transmission project development and generation facility management. Primary skills complimented by obtaining non-recourse project financing, electric generation facility life cycle planning and negotiation and administration of construction, fuel supply, operations and maintenance contracts and financing agreements EXPERIENCE IDAHO WIND PARTNERS 1, LLC, Boise, ID 2010 to Present A portfolio of]] wind powered generation facilities with a combined capacity of]83MW General Manager Responsible for construction, commissioning and all ongoing ownership activities. SKYFUEL, INC., Albuquerque, NM 2009 to 2010 Supplier of high technology parabolic trough solar concentrators Chief Project Officer Responsible for all aspects of business development and technology commercialization GENPOWER SERVICES, LLC, Newton, MA 2007 to 2009 The power project development joint venture of First Reserve Corp. and GenPower, LLC Senior Vice President, Development Responsible for generation project origination, development and acquisition. GENERAL ELECTRIC ENERGY FINANCIAL SERVICES, Stamford, CT 2006 The energy asset ownership and lending division of General Electric Co. Linden General Manager Responsible for all ownership activities associated with the then newly acquired 960 MW Linden, NJ cogeneration facility. PPL DEVELOPMENT COMPANY, Allentown, PA 2004 to 2005 The acquisition and development division of PPL Corp. Director of Business Development Responsible for solid fuel power project identification and development including asset Acquisition. DTE ENERGY SERVICES, Ann Arbor, MI 2001 to 2004 The non-regulated power and industrial energy division ofDTE Energy Corp. Director of Business Development Responsible for managing all aspects of solid fuel power project identification and development. Exhibit 2101 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 1989 to 2001 GPU INTERNATIONAL, Parsippany, NJ The non-regulated multinational power division of GPU Corp. Vice President, Business Development 1993 to 2001 Director, Business Development 1991 to 1993 Director, Project Development 1989 to 1991 QUAKER STATE CORP., Oil City, PA Coal mining division Director, Sales 1984 to 1989 Manager, New Business Development 1981 to 1984 SANTA FE RESOURCES, Albuquerque, NM Coal mining division of Santa Fe Railroad Senior Planner 1980 to 1981; Strategic Planner 1979 to 1980 NERCO, INC., Portland, OR Coal mining division ofPacifi Corp Business Development Analyst 1978 to 1979 Assistant to the Manager of Business Development 1977 to 1978 1981 to 1989 1979 to 1981 1977 to 1979 UNITED STATES AIR FORCE, Pilot 1971 to 1973 EDUCATION THE PENNSYLVANIA STATE UNIVERSITY, State College, PA MS Mineral Economics, completed all course work except thesis, 1975-1977 Completed courses in core Mining Engineering, 1974-1975 BA English Literature 1971 Exhibit 2101 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND BURLEY BUTTE WIND PARK LLC TABLE OF CONTENTS Article TITLE 1 Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy 5 Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection 10 Disconnection Equipment 11 Metering and Telemetry 12 Records 13 Protection 14 Operations 15 Indemnification and Insurance 16 Force Majeure 17 Land Rights 18 Liability; Dedication 19 Several Obligations 20 Waiver 21 Choice of Laws and Venue 22 Disputes and Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modification 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire Agreement Signatures Appendix A Appendix B Appendix C 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) BURLEY BUTTE WIND PARK LLC Project Number: 31765170 THIS AGREEMENT, entered into on this day of May 2005 between BURLEY BUTTE WIND PARK, an Idaho limited liability company (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." W1TNESSETH: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: 1.1 "Commission" - The Idaho Public Utilities Commission. 1.2 "Contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. 1.3 "Designated Dispatch Facility'- Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.4 "Disconnection Equipment" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.5 "Facility" - That electric generation facility described in Appendix B of this Agreement. - 1- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 I 1.6 "First Energy Date" - The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 1.7 "Generation Interconnection Process" - Idaho Power's generation interconnection application and engineering review process developed to ensure a safe and reliable generation interconnection in compliance with all applicable regulatory requirements, Prudent Electrical Practices and national safety standards. 1.8 "Inadvertent Energy" - Electric energy Seller does not intend to generate. Inadvertent energy is more particularly described in paragraph 7.3 of this Agreement. 1.9 "Interconnection Facilities" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.10 "Initial Capacity Determination" - The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 1.11 "Losses" - The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement. 1.12 "Market Energy Cost" - Eighty-five percent (85%) of the weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid- Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.13 "Material Breach" - A Default (paragraph 22.2. 1) subject to paragraph 22.2.2. - 2- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 1.14 "Maximum Capacity Amount" - The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.15 "Metering Equipment" - All equipment specified in Schedule 72, the Generation Interconnection Process, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter power flows between the Seller's electric generation plant and Idaho Power's system. 1.16 "Net Energy" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include inadvertent Energy. 1.17 "Operation Date"-The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.18 "Point of Delivery" - The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.19 "Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, safely, dependably, efficiently and economically. 1.20 "Scheduled Operation Date" - The date specified in Appendix B when Seller anticipates achieving the Operation Date. 1.21 "Schedule 72"— Idaho Power's Tariff No 101, Schedule 72 or its successor schedules as approved by the Commission. 1.22 "Season" - The three periods identified in paragraph 6.2.1 of this Agreement. 1.23 "Special Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule 72 or the Generation interconnection Process required to safely interconnect the Seller's Facility to the Idaho Power system. 1.24 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. -3- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 1.25 "Surplus Energy" - (1) Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month which exceeds 110% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2. or (2) If the Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month is less than 90% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.26 "Total Cost of the Facility" - The total cost of structures, equipment and appurtenances. ARTICLE II: NO RELIANCE ON IDAHO POWER 2.1 Seller Independent Investigation - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined that it is capable of performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent Experts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE ifi: WARRANTIES 3.1 No Warranty by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qualifying Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term -4- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 is used and defined in 18 CFR §292.207. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE 1V: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 CFR 292.207. 4.1.2 Opinion of Counsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4. 1.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter will be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1.3 Initial Capacity Determination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. -5- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.4 Engineer's Certifications - Submit an executed Engineers Certification of Design & Construction Adequacy and an Engineer's Certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.5 Insurance - Submit written proof to Idaho Power of all insurance required in Article XV. 4.1.6 Interconnection - Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed. 4.1.7 Written Acceptance - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V: TERM AND OPERATION DATE 5.1 Term - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shall continue in full force and effect for a period of twenty (20) Contract Years from the Operation Date. 5.2 Operation Date - The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and safe manner and has requested an -6- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Operation Date in written form. d)Seller has requested an Operation Date from Idaho Power in a written format. e)Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power. 5.3 Seller's failure to achieve the Operation Date within ten (10) months of the Scheduled Operation Date will be an event of default. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivery and Acceptance of Net Energy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2.1 Initial Year Monthly Net Energy Amounts: Month kWh March 3,612,966 Season 1 April 2,787,964 May 2,095,176 July 1,513,939 August 1,662,174 Season 2 November 2,387,942 December 3,351,561 June 1,939,187 September 2,387,420 Season 3 October 2,734,798 January 1,496,471 February 2,659,638 -7- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 6.2.2 ongoing Monthly Net Energy Amounts - Seller shall initially provide Idaho Power with one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts) and beginning at the end of month nine and every three months thereafter provide Idaho Power with an additional three months of forward generation estimates. This information will be provided to Idaho Power by written notice in accordance with paragraph 28.1, no later than 5:00 PM of the 5 th day following the end of the previous month. If the Seller does not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy amounts. 6.2.3 Seller's Adjustment of Net Energy Amount - 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance with paragraph 28.1, the Seller may revise all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 3 rd month after the Operation Date and at the end of every third month thereafter: (1) the Seller may not revise the immediate next three months of previously provided Net Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than 5:00 PM of the 5th day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts will be deemed to be an election of no change. 6.2.4 Idaho Power Adjustment of Net Energy Amount - If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 and the Seller's declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy -8- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with the following: Where: NEA = Current Month's Net Energy Amount (Paragraph 6.2) SGU = a.) If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 this value will be equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. b.) If the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 this value will be the sum of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspension of Energy Deliveries. TGU = Sum of all of the individual generator ratings of the generation units at this Facility as specified in Appendix B of this agreement. RSH - Actual hours the Facility's Net Energy deliveries were either - reduced or suspended under paragraph 14.2.1 or 14.3.1 TH = Actual total hours in the current month Resulting formula being: Adjusted / (SGUX NBA ) x ( I ) ) Net Energy = NBA -TGU Amount TH This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific month in which Idaho Power was excused from accepting the Seller's Net Energy or the Seller declared a Suspension of Energy. 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Net Energy Purchase Price - For all Net Energy, Idaho Power will pay the non-levelized energy price in accordance with Commission Order 29646 with seasonalization factors applied: Season 1 - (73.50 %) Season 2 - (120.00 %) Season 3 - (100.00 %) Year Mills/kWh Mills/kWh Mills/kWh 2005 37.00 60.41 50.34 2006 37.85 61.80 51.50 2007 38.73 63.23 52.69 2008 39.62 64.68 53.90 2009 40.53 66.17 55.14 2010 41.46 67.69 56.41 2011 42.42 69.25 57.71 2012 43.39 70.85 59.04 2013 44.39 72.48 60.40 2014 45.42 74.16 61.80 2015 46.47 75.86 63.22 2016 47.54 77.62 64.68 2017 48.63 79.40 66.17 2018 49.76 81.24 67.70 2019 50.91 83.11 69.26 2020 52.07 85.02 70.85 2021 53.28 86.99 72.49 2022 54.51 88.99 74.16 2023 55.76 91.04 75.87 2024 57.05 93.14 77.62 2025 58.37 95.29 79.41 2026 59.72 97.50 81.25 7.2 Surplus Energy Price - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.1, whichever is lower. 7.3 Inadvertent Energy - 7.3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was delivered. (For example January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be - 10- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Inadvertent Energy.) 7.3.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 Payment Due Date - Energy payments to the Seller will be disbursed within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy and Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A. 7.5 Continuing Jurisdiction of the Commission —This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power Company v. Idaho Public Utilities Commission and Afton Energy, Inc., 107 Idaho 781, 693 P.2d 427 (1984); Idaho Power Company v. Idaho Public Utilities Commission, 107 Idaho 1122, 695 P.2d 1 261 (1985); Afton Energy, Inc. v. Idaho Power Company, 111 Idaho 925, 729 P.2d 400 (1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR §292.303-308. ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the production of energy from the Seller's Facility. ARTICLE 1X: FACILITY AND INTERCONNECTION 9.1 Design of Facility - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full - 11- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X: DISCONNECTION EOUIPMENT 10.1 Except as specifically provided for in this Agreement, the required Disconnection Equipment will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operations and monthly maintenance expenses. ARTICLE XI: METERING AND TELEMETRY 11.1 Metering and Telemetry -Idaho Power shall, for the account of Seller, provide, install, and maintain Metering Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with Schedule 72, Generation Interconnection Process and Appendix B of this Agreement. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. All Metering Equipment and installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting and testing such equipment at reasonable intervals at Idaho Power's actual cost of providing this - 12- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Metering Equipment and services. The Metering Equipment shall be at the location described in Appendix B of this Agreement. All meters used to determine the billing hereunder shall be sealed and the seals shall be broken only by Idaho Power when the meters are to be inspected, tested or adjusted. 11.2 Meter Inspection - Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed as specified in Appendix B of this Agreement. If requested by Seller, Idaho Power shall make a special inspection or test of a meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall be notified of the time when any inspection or test shall take place, and each Party may have representatives present at the test or inspection. If a meter is found to be inaccurate or defective, it shall be adjusted, repaired or replaced, at Idaho Power's expense in order to provide accurate metering. If a meter fails to register, or if the measurement made by a meter during a test varies by more than two percent (2 %) from the measurement made by the standard meter used in the test, adjustment (either upward or downward) to the payments Seller has received shall be made to correct those payments affected by the inaccurate meter for the actual period during which inaccurate measurements were made. If the actual period cannot be determined, corrections to the payments will be based on the shorter of (1) a period equal to one-half the time from the date of the last previous test of the meter to the date of the test which established the inaccuracy of the meter; or (2) six (6) months. 11.3 Telemetry - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility. ARTICLE XII - RECORDS 12.1 Maintenance of Records - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy - 13- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 and maximum generation (kW) records in a form and content recommended by Idaho Power. 12.2 Inspection - Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. ARTICLE Xffl - PROTECTION 13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix B of this Agreement, Prudent Electrical Practices, the National Electrical Code, the National Electrical Safety Code and any other applicable local, state and federal codes. Seller acknowledges receipt of the Generation Interconnection Process. If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such interruption prior to its occurrence as provided in paragraph 14.9. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. ARTICLE XIV -OPERATIONS 14.1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. - 14- 514/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 14 .2 Energy Acceptance - 14.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeure, or if Idaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance requirements, emergencies, electrical system operating conditions on its system or as otherwise required by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure, Idaho Power requires such a curtailment, interruption or reduction of Net Energy deliveries for a period that exceeds twenty (20) days, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 14.2.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 14.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 14.3 Seller Declared Suspension of Energy Deliveries 14.3.1 If the Seller's Facility experiences a forced outage due to equipment failure which is not caused by an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility, Seller may, after giving notice as - 15- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy to Idaho Power from the Facility or from individual generation unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours to correct the forced outage condition ("Declared Suspension of Energy Deliveries"). The Seller's Declared Suspension of Energy Deliveries will begin at the start of the next full hour following the Seller's telephone notification as specified in paragraph 14.3.2 and will continue for the time as specified (not less than 48 hours) in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net Energy Amount will be adjusted as specified in paragraph 6.2.4. 14.3.2 If the Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in paragraph 14.3.1, the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveries will be at the earliest the next full hour after making telephone contact with Idaho Power. The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Article XXVffl that will contain the beginning hour and duration of the Declared Suspension of Energy Deliveries and a description of the conditions that caused the Seller to initiate a Declared Suspension of Energy Deliveries. Idaho Power will review the documentation provided by the Seller to determine Idaho Power's acceptance of the described forced outage as qualifying for a Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's forced outage as an acceptable forced outage will be based upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 14.5 Voltage Levels - Seller, in accordance with Prudent Electrical Practices shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of - 16- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 14.6 Generator Ramping - Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or following reconnection to Idaho Power's electrical system. Generation ramping may be required to permit Idaho Power's voltage regulation equipment time to respond to changes in power flow. 14.7 Scheduled Maintenance - On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 14.9 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XV: INDEMNIFICATION AND INSURANCE 15.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or - 17- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 maintenance of, or by failure of, any of such Party's works or facilities used in connection with this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 15.2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 15.2.2 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 15.3 Seller to Provide Certificate of Insurance - As required in paragraph 4.1.5 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 15.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by paragraph 15.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute a Material Breach of this Agreement. ARTICLE XVI. FORCE MAJEURE 16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause - 18- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XVII: LAND RIGHTS 17.1 Seller to Provide Access - Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to - 19- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power's approval and in recordable form. 17.2 Use of Public Rights-of-Way - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with paragraph 17.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint Use of Facilities - Subject to Idaho Power's compliance with paragraph 17.4, Idaho Power may use and attach its distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to paragraph 17.2, attaching Seller's Interconnection Facilities to such newly constructed facilities. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.3. 17.4 Conditions of Use - It is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Article XVH. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method of apportioning these costs, the dispute will be submitted to the Commission for -20- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 resolution and the decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XVII. ARTICLE XVIII: LIABILITY; DEDICATION 18.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XIX: SEVERAL OBLIGATIONS 19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. ARTICLE XX: WAIVER 20.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XXI: CHOICE OF LAWS AND VENUE 21.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of -21- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 the Fourth Judicial District of Idaho in and for the County of Ada. ARTICLE XXII: DISPUTES AND DEFAULT 22.1 Disputes - All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. 22.2 Notice of Default - 22.2.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 22.2.2 Material Breaches - The notice and cure provisions in paragraph 22.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 22.3 Security for Performance - Prior to the Operation Date and thereafter for the full term of this Agreement, Seller will provide Idaho Power with the following: 22.3.1 Insurance - Evidence of compliance with the provisions of paragraph 15.2. If Seller fails to comply, such failure will be a Material Breach and may only be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 22.3.2 Engineer's Certifications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0 -22- 514/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 & M) from a Registered Professional Engineer licensed in the State of Idaho, which Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and 22.3.3 Licenses and Permits - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4.1.1 or to provide the documentation required by this paragraph, such failure will be an event of default and may pply be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XXffl: GOVERNMENTAL AUTHORIZATION 23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE XXIV: COMMISSION ORDER 24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXV: SUCCESSORS AND ASSIGNS 25.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without the written consent of both Parties being -23- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights, obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies. ARTICLE XXVI: MODIFICATION 26.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXVII: TAXES 27.1 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXVffl: NOTICES 28.1 All written notices under this agreement shall be directed as follows and shall be considered delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows: To Seller: Burley Butte Wind Park, LLC 1424 Dodge Ave. Helena, MT 59601 -24- 514/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 To Idaho Power: Original document to: Vice President, Power Supply Idaho Power Company P 0 Box 70 Boise, Idaho 83707 Copy of document to: Cogeneration and Small Power Production Idaho Power Company P 0 Box 70 Boise, Idaho 83707 ARTICLE XXIX: ADDITIONAL TERMS AND CONDITIONS 29.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications ARTICLE XXX: SEVERABILITY 30.1 The invalidity or unenforceability of any term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXXI: COUNTERPARTS 31.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. ARTICLE XXXH: ENTIRE AGREEMENT 32.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the -25- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed in their respective names on the dates set forth below: Idaho Power Company Burley Butte Wind Park L.L.C. By / By VJ4'ii ..Z,-,9- ( N. Vern Porter - Mgr Power Supply Operations &/ James T. Carkulis - Managing Member Dated Dated JIL Y MAy_,_2cü5 ____________ "Idaho Power" "Seller" -26- 514/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 APPENDIX A A —1 MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. -27- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 S. Guy: Idaho Wind Partners I, LLC Page 28 Project Name Address City Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Number: Phone Number: State Zip Facility Station Station Metered Output Usage Usaae Maximum Generation Meter Number: End of Month kWh Meter Reading: kW Beginning of Month kWh Meter: Difference: Times Meter Constant: Net Generation kWh for the Month: Metered Demand: Breaker Opening Record Breaker Closing Record Date Time Meter Reason Date Time Meter * Breaker Opening Reason Codes 1 Lack of Adequate Prime Mover 2 Forced Outage of Facility I hereby certify that the above meter readings are true and correct as of Midnight on the last day of the 3 Disturbance of IPCo System above month and that the switching record is accurate 4 Scheduled Maintenance and complete as required by the Firm Energy Sales 5 Testing of Protection Systems Agreement to which I am a Party. 6 Cause Unknown 7 Other (Explain) Signature Date -28- 5/4/2005 Exhibit 2102 GNR-E-1.1 -03 R. Guy: Idaho Wind Partners I, LLC Page 29 A-2 ROUTINE REPORTING Idaho Power Contact Information Daily Energy Production Reporting Call daily by 10 am., 1-800-356-4328 or 1-800-635-1093 and leave the following information: • Project Identification - Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unplanned Project outages Call 1-800-345-1319 and leave the following information: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coming back online Seller's Contact Information 24-Hour Project Operational Contact Name: Telephone Number: Cell Phone: Project On-site Contact information Telephone Number: -29- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31765170 BURLEY BUTTE WIND PARK B-i DESCRIPTION OF FACILITY The Facility will consist of 7 Wind turbines; model GE sle with individual generator ratings of 1.5 MW for each unit, for a total Facility generator rating of 10.5 MW. B-2 LOCATION OF FACILITY Near: Burley, Idaho Sections: 6 Township:11 S Range:22 E County:Cassia Idaho. B-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected October 30. 2005 as the estimated Scheduled First Energy Date. Seller has selected December 31. 2005 as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. Idaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 72 and the Generation Interconnection Process. B4 MAXIMUM CAPACITY AMOUNT: This value will be 10.5 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection process. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. -30- 514/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 B-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power Generation Interconnection process will determine the specific Point of Delivery for this Facility. Upon completion of the Generation Interconnection process the Point of Delivery identified by this process will become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at anytime during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. B-7 METERING AND TELEMETRY The Idaho Power Generation Interconnection process will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry - -31- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-7 SPECIAL FACILITIES The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Special Facility cost will be included in the calculation of the Monthly Operation and -32- 514/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 33 Maintenance Charges specified in Schedule 72. B-8 REACTIVE POWER The Idaho Power Generation Interconnection process will determine the reactive power required to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The Generation Interconnection process will specify the equipment required on the Idaho Power system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-9 DISCONNECTION EQUIPMENT Disconnection Equipment is required to insure that the Seller's Facility will be disconnected from Idaho Power's system in the event of (I) the Sellers delivery of energy exceeds the Maximum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's Facility. The Idaho Power Generation Interconnection process will determine the Disconnection Equipment specifications and requirements for this Facility, this equipment is for protection of the Idaho Power system and equipment only. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller -33- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire and conduit necessary for the operation of the Disconnection Equipment. Through the Generation Interconnection process, Idaho Power will supply details for the disconnection panel and will test the equipment prior to any operations of the Facility, Seller will provide drawings of their interconnection wiring for engineering approval prior to installation. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Disconnection Equipment cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-10 COSTS The Idaho Power Generation Interconnection process and this Agreement will identify all cost for this Facility to interconnect to the Idaho Power system, including but not limited to the cost of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection equipment, Protection equipment and Interconnection Equipment. As specified in the Generation Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, installation and construction charges as specified above, during the term of this Agreement, Seller will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following the date which Idaho Power has completed installation of the Idaho Power provided equipment and the interconnection equipment is available for use by the Facility. The monthly operations and maintenance charge will be based upon the initial cost paid -34- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will be adjusted to reflect the actual cost incurred by Idaho Power and previously charged monthly operation and maintenance expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adjusted monthly operations and maintenance charge within sixty (60) days of the determination of this amount. B-li SALVAGE No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished Interconnection Facilities as required under Schedule 72, the Generation Interconnection Process and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. will 5/4120Q5 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and Burley Butte Wind Park LLC as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and is hereinafter referred to as the "Project." 4.That the Project, which is commonly known as the Burley Butte Wind Park Project, is located in Section 61 Township uS, Range 22E, Boise Meridian, Cassia County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the Project's producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. -36- 514/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 -37- APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and Burley Butte Wind Park LLC as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Burley Butte Wind Park Project, is located at 250 South, 650 West, Burley, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the remaining years of the Agreement. -38- 51412005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 9.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date -39- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 APPENDIX C ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer", hereby states and certifies to Idaho Power as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter 'Agreement", between Idaho Power as Buyer, and Burley Butte Wind Park, LLC as Seller, dated 3.That the cogeneration or small power production project, which is the subject of the Agreement and this Statement, is identified as IPCo Facility No and is hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Burley Butte Wind Park Project, is located in Section 6, Township 11 , Range 22 E, Boise Meridian, Cassia County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a (__.) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 8.That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. 9.That the Project has been constructed in accordance with said plans and specifications, all -40- 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a __________ (_) year period. 11.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date 5/4/2005 Exhibit 2102 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 -41- D.c FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND GOLDEN VALLEY WIND PARK LLC TABLE OF CONTENTS Article TITLE I Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy S Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection 10 Disconnection Equipment 1 1 Metering and Telemetry 12 Records 13 Protection 14 Operations 15 Indemnification and Insurance 16 Force Majeure 17 Land Rights 18 Liability; Dedication 19 Several Obligations 20 Waiver 21 Choice of Laws and Venue 22 Disputes and Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modification 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire Agreement Signatures Appendix A Appendix B Appendix C Exhibit 2103 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 5/4/2005 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) GOLDEN VALLEY WIND PARK LLC Project Number: 31765160 THIS AGREEMENT, entered into on this day of May 2005 between GOLDEN VALLEY WIND PARK, an Idaho limited liability company (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." WITNESSETH: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: 1.1 "Commission" -The Idaho Public Utilities Commission. 1.2 "Contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. 1.3 "esignated Djpatch_Facility" - Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.4"Di scot) nethonEqjgment" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.5 "Facility" - That electric generation facility described in Appendix B of this Agreement. Exhibit 2103 GNR-E-1 1-03 - 1 R. Guy: Idaho Wind Partners I, LLC Page 2 5/4/2005 1.6 'First Energy Date" - The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 1.7 "ration Interconnec tion Process" Idaho Power's generation interconnection application and engineering review process developed to ensure a safe and reliable generation interconnection in compliance with all applicable regulatory requirements, Prudent Electrical Practices and national safety standards. 1.8 "Inadvertent Eper" - Electric energy Seller does not intend to generate. Inadvertent energy is more particularly described in paragraph 7.3 of this Agreement. 1.9 'Interconnection Facilities" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. • JO -"Initial Capacity _Determination" -The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW pet, month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. .11 "Losses" - The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement. 1.12 "MarketEnergy Cost" - Eighty-five percent (85%) of the weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid- Columbia index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.13 "Material Breach" - A Default (paragraph 22.2. 1) subject to paragraph 22.2.2. Exhibit 2103 GNR-E-1 1-03 -2- R. Guy: Idaho Wind Partners I, LLC Page 3 5/4/2005 1.14 "Maximum Capacity Amount" - The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.15 "Metering Equipment" All equipment specified in Schedule 72, the Generation Interconnection Process, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter power flows between the Seller's electric generation plant and Idaho Power's system. 1.16 "Net neig" - Al! of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net energy does not include Inadvertent Energy. 1.17 "Operation Date" - The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. .18 "Point of Delivery" - The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.19 "Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, safely, dependably, efficiently and economically. 1.20 "Scheduled Operation Date" -The date specified in Appendix B when Seller anticipates achieving the Operation Date. 1.21 "Schedule 72" —Idaho Power's Tariff No 101, Schedule 72 or its successor schedules as approved by the Commission. 1.22 ""- The three periods identified in paragraph 6.2.1 of this Agreement. 1.23 "Sjja1 Facilities - Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule 72 or the Generation Interconnection Process required to safely interconnect the Seller's Facility to the Idaho Power system. 1,24 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. GNR-E-11--03 -3- R. Guy: Idaho Wind Partners I, LLC Page 4 51412005 125 "jplus_Energy" - (I) Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month which exceeds 110% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2. or (2) If the Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month is Less than 90% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.26 "Total Cost of the Facility" - The total cost of structures, equipment and appurtenances. ARTICLE II: NO RELiANCE ON IDAHO POWER 2.1 Seller Independent mv jgition - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations sat forth herein, Seller has investigated and determined that it is capable of performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Indpent Experts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE III: WARRANTIES 3.1 No Warranty by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qualifyiacilitygs - Seller warrants that the Facility is a "Qualifying Facility," as that term GNRE1103 -4- R. Guy: Idaho Wind Partners I, LLC Page 5 5/4/2005 is used and defined in 18 CFR §292.207. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV; CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 CFR 292.207. 4.1.2 Qpjpjomof Counsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4.1, above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter will be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991) 4.1.3 Initial Capacity Determination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. Exhibit 2103 GNR-E-1 1-03 -5- R. Guy: Idaho Wind Partners I, LLC Page 6 5/4/2005 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4,1,4Engineer's CertIflcIiQp - Submit an executed Engineer's Certification of Design & Construction Adequacy and an Engineer's certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.5 Insurance - Submit written proof to Idaho Power of all insurance required in Article XV. 4.1.6 Interconnection - Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed. 4.1.7 Written Acceptance - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V: TERM AND OPERATION DATE 5.1 fm - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the (late first written and shall continue in full force and effect for a period of twenty (20) Contract Years from the Operation Date, 5.2 Operation Date - The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and safe manner and has requested an Exhibit 2103 GNR-E-1 1-03 -6- R. Guy: Idaho Wind Partners I, LLC Page 7 5/4/2005 5.3 IMF 6.2 Operation Date in written form. d)Seller has requested an Operation Date from Idaho Power in a written format. e)Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power. Seller's failure to achieve the Operation Date within ten (10) months of the Scheduled Operation Date will be an event of default. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY Delivery and Acceptance of Net Eneigy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2.1 Initial Year Monthly Net gyis Month kWh March 3,612,966 Season 1 April 2,787,964 May 2,095,176 July 1,513,939 August 1,662,174 Season 2 November 2,387,942 December 3,351,561 June 1,939,187 September 2,387,420 Season 3 October 2,734,798 January 1,496,471 February 2,659,638 Exhibit 2103 GNR-E-1 1-03 7 R. Guy: Idaho Wind Partners I, LLC Page 8 5(4/2005 6.2.2 Ongoing Monthly Net Energy Amounts - Seller shall initially provide Idaho Power with one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts) and beginning at the end of month nine and every three months thereafter provide Idaho Power with an additional three months of forward generation estimates. This information will be provided to Idaho Power by written notice in accordance with paragraph 28.1, no later than 5:00 PM of the 5" day following the end of the previous month. If the Seller does not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy amounts. 6.2.3 Seller's Adjustment of Net Ei1gEgy Amount -- 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance with paragraph 28.1, the Seller may revise all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 3rd month after the Operation Date and at the end of every third month thereafter: (1) the Seller revise the immediate next three months of previously provided Net Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than 5:00 PM of the 5111 day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts will be deemed to be an election of no change. 6.2.4 Idaho Power Adjustment of Net Energy_Amown - If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 and the Seller's declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy Exhibit 2103 GNR-E-1 1-03 8 R. Guy: Idaho Wind Partners I, LLC Page 9 5/4/2005 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with the following: Where: NEA = Current Month's Net Energy Amount (Paragraph 6.2) SGU = a.) If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2,1 this value will he equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. b.) If the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 this value will be the sum of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspension of Energy Deliveries. TGU = Sum of all of the individual generator ratings of the generation units at this Facility as specified in Appendix B of this agreernent. RSH - Actual hours the Facility's Net Energy deliveries were either - reduced or suspended under paragraph 14.2.1 or 14.3.1 TH = Actual total hours in the current month Resulting formula being: Adjusted Net Energy = NEA ( ( TOU X NEA ) X (11 ) ) Amount TH This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific month in which Idaho Power was excused from accepting the Seller's Net Energy or the Seller declared a Suspension of Energy. 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent. (10%) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. Exhibit 2103 GNR-E-1 1-03 9 R. Guy: Idaho Wind Partners I, LLC Page 10 51'l/2005 ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Net En Purchase Price - For all Net Energy, Idaho Power will pay the non-levelized energy price in accordance with Commission Order 29646 with seasonalization factors applied: Season 1 (73.50%) Season 2 - (120.00 %) Season 3 -(100.00 %) Year Mills/kWh Mills/kWh Mills/kWh 2005 37.00 60.41 50.34 2006 37.85 61.80 51.50 2007 38.73 63.23 52.69 2008 39.62 64.68 53.90 2009 40.53 66.17 55.14 2010 41.46 67.69 56.41 2011 42.42 69.25 57.71 2012 43.39 70.85 59.04 2013 44.39 72.48 60.40 2014 45.42 74.16 61.80 2015 46.47 75.86 63.22 2016 47.54 77.62 64.68 2017 48.63 79.40 66.17 2018 49.76 81.24 67.70 2019 50.91 83.11 69.26 2020 52.07 85.02 70.85 2021 53.28 86.99 72.49 2022 54.51 88.99 74.16 2023 55.76 91.04 75.87 2024 57.05 93.14 77.62 2025 58.37 95.29 79.41 2026 59.72 97.50 81.25 7.2 - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.1, whichever is lower. 7.3 Inadvertent iirgy - 7,3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho l'ower at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was delivered. (For example January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be Exhibit 2103 GNR-E-1 1-03 - 10- R. Guy: Idaho Wind Partners I, LLC Page 11 5/4/2005 Inadvertent Energy.) 7.3.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 Payment Due Date - Energy payments to the Seller will he disbursed within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy and Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A. 7.5 Continuing Jurisdiction of the Commission —This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power Company v. Idaho Public Utilities Commission and Afton Energy, Ii., 107 Idaho 781, 693 P.2d 427 (1984); jijo Power Coipany v. Idaho Public Utiliti es Commission, 107 Idaho 1122, 695 P.2d 1 261 (1985); Afton Enrgy, 1i-ic,v. Idaho Power Company, 111 Idaho 925, 729 P.2d 400 (1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR §292.303-308. ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the production of energy from the Seller's Facility. ARTICLE 1X: FACILITY AND INTERCONNECTION 9.1. 1csign oCfacjijIy - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full GNR-E-11-03 Ft Guy: Idaho Wind Partners I, LLC Page 12 514/2005 term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X: DISCONNECTION EQUIPMENT 10.1 Except as specifically provided for in this Agreement, the required Disconnection Equipment will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operations and monthly maintenance expenses. ARTICLE XI: METERING AND TELEMETRY 111 Idaho Power shall for the account of Seller, provide, install and maintain Metering Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with Schedule 72, Generation Interconnection Process and Appendix B of this Agreement. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. All Metering ruipnent and installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting Exhibit 2103 and testing such equipment at reasonable intervals at Idaho Powers actual cost of providing this GNR-E-11-03 - 12- R. Guy: Idaho Wind Partners I, LLC Page 13 5/1/2005 Metering Equipment and services. The Metering Equipment shall be at the location described in Appendix B of this Agreement. All meters used to determine the billing hereunder shall be sealed and the seals shall be broken only by Idaho Power when the meters are to be inspected, tested or adjusted. 11.2 Meter Inspection -Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed as specified in Appendix B of this Agreement. If requested by Seller, Idaho Power shall make a special inspection or lest of a meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall be notified of the time when any inspection or test shall take place, and each Party may have representatives present at the test or inspection. If a meter is found to be inaccurate or defective, it shall be adjusted,. repaired or replaced, at Idaho Power's expense in order to provide accurate metering. If a meter fails to register, or if the measurement made by a meter during a test varies by more than two percent (2 %) from the measurement made by the standard meter used in the test, adjustment (either upward or downward) to the payments Seller has received shall he made to correct those payments affected by the inaccurate meter for the actual period during which inaccurate measurements were made. If the actual period cannot he determined, corrections to the payments will be based on the shorter of (3) a period equal to one-half the time from the date of the last previous test of the meter to the date of the test which established the inaccuracy of the meter; or (2) six (6) months. 11.3 fmetry - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Sellers Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility. ARTICLE XII - RECORDS 12.1 Maintenance of Record - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy Exhibit 2103GNRE1103 - 13- R. Guy: Idaho Wind Partners I, LLC Page 14 5/4/2005 and maximum generation (kW) records in a form and content recommended by Idaho Power. 12.2 jpection - Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. ARTICLE XIII - PROTECTION 13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix B of this Agreement, Prudent Electrical Practices, the National Electrical Code, the National Electrical Safety Code and any other applicable local, state and federal codes. Seller acknowledges receipt of the Generation interconnection Process. If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such interruption prior to its occurrence as provided in paragraph 14.9. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. ARTICLE XIV - OPERATIONS 14.1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. 14.2 Egy.Acptimnc GNR-E-11-03 -14- R. Guy: Idaho Wind Partners I, LLC Page 15 5/4/2005 14.2.1 Idaho Power shall he excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeure, or if Idaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance requirements, emergencies, electrical system operating conditions on its system or as otherwise required by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure, Idaho Power requires such a curtailment, interruption or reduction of Net Energy deliveries for a period that exceeds twenty (20) days, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month inparagraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 141.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 14.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 14.3 Seller Declared Suspension of Energy Deliveries 14.3.1 If the Seller's Facility experiences a forced outage clue to equipment failure which is not caused by an event of Force Majeiirc or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility, Seller may, after giving notice as provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy tO Exhibit 2103 GNRE11 03 R. Guy: Idaho Wind Partners I, LLC Page 16 5/4/2005 Idaho Power from the Facility or from individual generation unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours to correct the forced outage condition ("Declared Suspension of Energy Deliveries"). The Seller's Declared Suspension of Energy Deliveries will begin at the start of the next full hour following the Seller's telephone notification as specified in paragraph 14.3.2 and will continue for the time as specified (not less than 48 hours) in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net Energy Amount will be adjusted as specified in paragraph 6.2.4. 14.3.2 If the Seller desires to initiate al)eclared Suspension of Energy Deliveries as provided in paragraph 14.3.1, the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveries will be at the earliest the next full hour after making telephone contact with Idaho Power. The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Article XXVIII that will contain the beginning hour and duration of the Declared Suspension of Energy Deliveries and a description of the conditions that caused the Seller to initiate a Declared Suspension of Energy Deliveries. Idaho Power will review the documentation provided by the Seller to determine Idaho Power's acceptance of the described forced outage as qualifying for a Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's forced outage as an acceptable forced outage will be based upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 14.5 Voltage Levels - Seller, in accordance with Prudent Electrical Practices shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of Delivery, 2103very, in which case Seller shall modify, at Idaho Powers expense, Sellers equipment as GNR-E-11-03 -16- R. Guy: Idaho Wind Partners I, LLC Page 17 514/2005 necessary to accommodate the modified nominal operating voltage level. 14.6 Generator Ramping - Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or following reconnection to Idaho Power's electrical system. Generation ramping may be required to permit Idaho Power's voltage regulation equipment time to respond to changes in power flow. 14.7 Scheduled Maintenance - On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 14.9 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XV: INDEMNIFICATION AND INSURANCE 15.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or maintenance of, or by failure of, any of such Party's works or facilities used in connection with GNR-E-11-03 -17- R. Guy: Idaho Wind Partners I, LLC Page 18 514/2005 this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 15.2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall he consistent with current Insurance Industry Utility practices for similar property. 15.12 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not he canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 15.3 Sellerto Provide Certificate of insurance - As required in paragraph 4.1.5 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 15.4 Seller to_Notify._Idaho Power of Loss of Covg - If the insurance coverage required by paragraph 15.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute a Material Breach of this Agreement. ARTICLE XVI. FORCE MAJEURF. 16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause Exhibit 2103 beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, GNR-E-11-03 - 18- R. Guy: Idaho Wind Partners I, LLC Page 19 5/4/2005 such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. if either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XVII: LAND RIGHTS 17.1 SellerjpPryIc Access - Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient casements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall he subject to Idaho Power's approval and in recordable form. - 19- Exhibit 2103 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 51412005 17.2 Use of Public jjghts-of-Way - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with paragraph 17.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint Use of Facilities - Subject to Idaho Power's compliance with paragraph 17.4, Idaho Power may use and attach its distribution and/or transmission facilities to Seller's interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller Pursuant to paragraph 17.2, attaching Seller's Interconnection Facilities to such newly constructed facilities. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.3. 17.4 Conditions of Use - It is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Article XVII. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method of apportioning these costs, the dispute will be submitted to the Commission for Exhibit 2103 resolution and the decision of the Commission will be binding on the Parties, and (3) shall GNR-E-11-03 _20- R. Guy: Idaho Wind Partners I, LLC Page 21 5/4/2005 provide Seller with an interconnection to Idaho Powers systern of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XV1I. ARTICLE XVIII: LIABILITY; DEDICATION 18.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XIX: SEVERAL OBLIGATIONS 19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. ARTICLE XX: WAIVER 20.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XXI: CHOICE OF LAWS AND VENUE 21.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada. Exhibit 2103 GNR-E-1 1-03 - 21- R. Guy: Idaho Wind Partners I, LLC Page 22 5/4/2005 IIEXXll: DISPUTES AND DLFAVLT 22.1 Disnttes All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. 22.2 Notice of Default - 22.2.1 imJi. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nonclefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 22.2.2 Material Breaches - The notice and cure provisions in paragraph 22.2.1 do not apply to defaults identified in this Agreement as Material Breaches, Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 22.3 Security for Performance - Prior to the Operation Date and thereafter for the full term of this Agreement, Seller will provide Idaho Power with the following: 22.3.1 Insurance - Evidence of compliance with the provisions of paragraph 15.2. If Seller fails to comply, such failure will be a Material Breach and may PD1Y be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 22.3.2 - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0 Exhibit 2103 & M) from a Registered Professional Engineer licensed in the State of Idaho, which GNR-E-11-03 -22- R. Guy: Idaho Wind Partners I, LLC Page 23 5/4/2005 Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and 22.3.3 Licenses and Permits - During the lull term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4.1.1, If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4.1.1 or to provide the documentation required by this paragraph, such failure will be an event of default and mayjy be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XXIII: GOVERNMENTAL AUTHORIZATION 23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE XXIV: COMMISSION ORDER 24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXV: SUCCESSORS AND ASSIGNS 25.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without the written consent of both Parties being Exhibit 2103 first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, GNRE1103 23- R. Guy: Idaho Wind Partners I, LLC Page 24 5/412005 any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights obligations and interests under this Agreement This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies ARTICLE XXVI: MODIFICATION 26.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXVII: TAXES 27.1 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXVIII: NOTICRS 28.1 All written notices under this agreement shall be directed as follows and shall he considered delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows: To Seller: Golden Valley Wind Park, LLC 1424 Dodge Ave. Helena, MT 59601 To Idaho Power: Original document to: Vice President, Power Supply Idaho Power Company P0 Box 70 Boise, Idaho 83707 Exhibit 2103 GNR-E-1 1-03 -24- R. Guy: Idaho Wind Partners I, LLC Page 25 5/4/200S Cony of document to: Cogeneration and Small Power Production Idaho Power Company POBox 70 Boise, Idaho 83707 ARTICLE XXIX: ADDITIONAL TERMS AND CONDITIONS 29.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications ARTICLE XXX: SEVERABILITY 30,1 The invalidity or unenforceability of any term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXXI: COUNTERPARTS 31.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. ARTICLE XXXIF. ENTIRE AGREEMENT 32.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed Exhibit 2103 GNR-E-1 1-03 25- R. Guy: Idaho Wind Partners I, LLC Page 26 5/4/2005 in their respective names on the dates set forth below: Idaho Power Co an den Valley Wind Park LA By By N. Vern Porter Mgr Power Supply Operations James T. Caikutis - Managing Member Dated Dated MA'? S 1 20o5 , , "Idaho Power" "Seller" APPENDIX A A —I MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. Exhibit 2103 GNR-E-1 1-03 -27- R. Guy: Idaho Wind Partners I, LLC Page 28 5/4/2005 Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Name Project Number: Address Phone Number: City State Zip Facility Station Station Metered Outou U.1age Maximum Generation Meter Number: End of Month kWh Meter Reading: kW Beginning of Month kWh Meter: Difference: Times Meter Constant: Net Generation kWh for the Month: - Metered Demand: Breaker Opening Record Breaker Closing Record Date Time :iE'TT f * BreakerOpeningReasonCodes I Lack of Adequate Prime Mover I hereby certify that the above meter readings are 2 Forced Outage of Facility true and correct as of Midnight on the last (lay of the 3 Disturbance of IPCo System above month and that the switching record is accurate 4 Scheduled Maintenance and complete as required by the Firm Energy Sales 5 Testing of Protection Systems Agreement to which I am a Party. 6 Cause Unknown 7 Other (Explain) Signature Date Exhibit 2103 GNR-E-1 1-03 -28- R. Guy: Idaho Wind Partners I, LLC Page 29 5/4/2005 A-2 ROUTINE REPORTING Idaho Power Contact Information Daily Energy Production Repoing Call daily by 10a.m., 1-800-356-4328 or 1-800-635-1093 and leave the following information: • Project Identification - Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unpjpned Project outages Call 1-800-345-1319 and leave the following information: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coining back online Seller's Contact Information 24-Hour Project Operational Contact Name: Telephone Number: Cell Phone: Project _On-site Contact information Telephone Number: ____________ Exhibit 2103 GNR-E-1 1-03 -29- R. Guy: Idaho Wind Partners I, LLC Page 30 5/4/2005 APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31765160 GOLDEN VALLEY WIND PARK B-i DESCRIPTION OF FACILITY The Facility will consist of 7 Wind turbines model GE sk with individual generator ratings of 1.5 MW for each unit, for a total Facility generator rating of 10.5 MW. B-2 LOCATION OF FACILITY Near: Burley, Idaho Sections: B ½. E ½ of 24 Township: 11 S Range:21 E County: ..Cassia _— Idaho. 13-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected .pril 31,2006 _.as the estimated Scheduled First Energy Date. Seller has selected .- June_1,2006 .. as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. Idaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 72 and the Generation Interconnection Process. 13-4 MAXIMUM CAPACITY AMOUNT: This value will be 10.5 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection process. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. Exhibit 2103 GNR-E-11-03 _30- R. Guy: Idaho Wind Partners I, LLC Page 31 5/4t2005 B-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power Generation Interconnection process will determine the specific Point of Delivery for this Facility. Upon completion of the Generation interconnection process the Point of Delivery identified by this process will become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at anytime during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. B-? METERING AND TELEMETRY The Idaho Power Generation Interconnection process will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry Exhibit 2103 GNR-E-1 1-03 -31- R. Guy: Idaho Wind Partners I, LLC Page 32 5/4/2005 equipment must he able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to he reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-7 SPECIAL FACILITIES The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will he in accordance with Schedule 72 and the total Special Facility cost will be included in the calculation of the Monthly Operation and GNR-E-11-03 -32- R. Guy: Idaho Wind Partners I, LLC Page 33 5/4/2005 Maintenance Charges specified in Schedule 72. B-8 REACTIVE POWER The Idaho Power Generation Interconnection process will determine the reactive power required to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The Generation Interconnection process will specify the equipment required on the Idaho Power system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-9 DISCONNECTION EQUIPMENT Disconnection Equipment is required to insure that the Seller's Facility will be disconnected from Idaho Power's system in the event of (I) the Sellers delivery of energy exceeds the Maximum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's Facility. The Idaho Power Generation Interconnection process will determine the Disconnection Equipment specifications and requirements for this Facility, this equipment is for protection of the Idaho Power system and equipment only. These specifications will include but not he limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller Exhibit 2103 GNR-E-1 103 -33- R. Guy: Idaho Wind Partners I, LLC Page 34 5/4/2005 provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power Provided equipment. Seller will install all Seller provided equipment, control wire and conduit necessary for the operation of the Disconnection Equipment. Through the Generation Interconnection process, Idaho Power will supply details for the disconnection panel and will test the equipment prior to any operations of the Facility, Seller will provide drawings of their interconnection wiring for engineering approval prior to installation. The entire Generation Interco nnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Disconnection Equipment cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-lO COSTS The Idaho Power Generation Interconnection process and this Agreement will identify all cost for this Facility to interconnect to the Idaho Power system, including but not limited to the cost of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection equipment, Protection equipment and Interconnection Equipment. As specified in the Generation Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, installation and construction charges as specified above, during the term of this Agreement, Seller will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following the date which Idaho Power has completed installation of the Idaho Power provided equipment and the interconnection equipment is available for use by the Exhibit 2103 Facility. The monthly operations and maintenance charge will be based upon the initial cost paid GNR-E-11-03 -34- R. Guy: Idaho Wind Partners I, LLC Page 35 5/4/2005 by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will be adjusted to reflect the actual cost incurred by Idaho Power and previously charged monthly operation and maintenance expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adjusted monthly operations and maintenance charge within sixty (60) days of the determination of this amount. B- 11 SALVAGE No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished Interconnection Facilities as required under Schedule 72, the Generation Interconnection Process and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. Exhibit 2103 GNR-E-1 1-03 -35- R. Guy: Idaho Wind Partners I, LLC Page 36 51412005 APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned -, on behalf of himself and hereinafter collectively referred to as "Engineer, hereby states and certifies to the Seller as follows I That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter 'Agreement," between Idaho Power as Buyer, and Golden Valley Wind Park, LLC as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and is hereinafter referred to as the "Project." 4.That the Project, which is commonly known as the Golden Valley Wind Park Project, is located in Section E ½, E ½ of 24, Township .U, Range 21 E, Boise Meridian, Cassia County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a . (_) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the -36- 36- Exhibit Exhibit 2103 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 514/2005 APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to ,the Seller as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and Golden Valley Wind Park, LLC as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No, and hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Golden Valley Wind Park Project, is located at 550 South ,700 West, Burley, Idaho 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric Power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the Exhibit 2103 GNR-E-1 1-03 -39- R. Guy: Idaho Wind Partners I, LLC Page 38 51412005 remaining years of the Agreement. 9.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. M. (RE. Stamp) Date Exhibit 2103 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 51412005 -39- APPENDIX C ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned on behalf of himself and hereinafter collectively referred to as Engineer", hereby states and certifies to Idaho Power as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter "Agreement", between Idaho Power as Buyer, and Golden Valley Wind Park, LLC as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as JPCo Facility No and is hereinafter referred to as the "Project. 4.That the Project, which is commonly known as the Golden Valley Wind Park Project, is located in Section /z, B ½ of 24, Township fl, Range 2IE, Boise Meridian, Cassia County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a ) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 8.That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. 9.That the Project has been constructed in accordance with said plans and specifications, all Exhibit 2103 GNR-E-1 1-03 -40- R. Guy: Idaho Wind Partners I, LLC Page 40 514/2005 applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10. That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a ________ (__) year period. 11 That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. UA (P.E. Stamp) Date Project's producing at or near the design electrical output, efficiency and plant factor for a year period. 9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10, That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date Exhibit 2103 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 5/4/2005 .Qf2JTi7 'H. FIRM ENERGY SALES AGREEMENT' BETWEEN IDAHO POWER COMPANY AND '1i MILNER DAM WIND PARK LLC TABLE OF CONTENTS Article TITLE Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy 5 Term and Operation Bate 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection 10 Disconnection Equipment 11 Metering and Telemetry 12 Records 13 Protection 14 Operations 15 Indemnification and Insurance 16 Force Majeure 17 Land Rights 18 Liability; Dedication 19 Several Obligations 20 Waiver 21 Choice of Laws and Venue 22 Disputes and Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modification 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire Agreement Signatures Appendix A Appendix B Appendix C Exhibit 2104 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 10!10/2005 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) MILNER DAM WIND PARK LLC Project Number: 31720190 THIS AGREEMENT, entered into on this f '1 day of 2005 between MILNER DAM WIND PARK, an Idaho limited liability company (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." WITNESSETI-1: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: 1.1 "commission" -The Idaho Public Utilities Commission. 1.2 "contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. 1.3 "Designated Dispatch Facility" - Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.4 "Disconnection Equipment" All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.5 "çilit" - That electric generation facility described in Appendix B of this Agreement. Exhibit 2104 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 2 1011012005 1.6 "First jEnergy ate" - The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article TV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 1.7 "Generation Interconnection Process" - Idaho Power's generation interconnection application and engineering review process developed to ensure a safe and reliable generation interconnection in compliance with all applicable regulatory requirements, Prudent Electrical Practices and national safety standards. 1.8 "Inadvertent_Engy" - Electric energy Seller does not intend to generate. Inadvertent energy is more particularly described in paragraph 7.3 of this Agreement. 1.9"Interconnection Facilities" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.10"Initial _Capiiy_Determination"_— The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 1.11 "g" - The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement, 1.12 "Market Energy Cost" - Eighty-five percent (85%) of the weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid- Columbia index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.13 "Material Breach" - A Default (paragraph 22.2. 1) subject to paragraph 22.2.2. Exhibit 2104 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 3 10/10/2005 1.14 "Maximum Capacity Amount" -- The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.15 "Mrpgcgjpnt" - All equipment specified in Schedule 72, the Generation interconnection Process, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter power flows between the Sellers electric generation plant and Idaho Powers system. 1.16 "Net Energy" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent Energy. 1.17 "Operation." - The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.18 "Point of Delivery" —The location specified in Appendix 13, where Idaho Power's and the Seller's electrical facilities are interconnected. .19 "Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, safely, dependably, efficiently and economically. 1.20 "Scheduled Operation Date" -The date specified in Appendix B when Seller anticipates achieving the Operation Date. 1.21 "Schedule 72" - Idaho Power's Tariff No 101, Schedule 72 or its successor schedules as approved by the Commission. .22 "Season" - The three periods identified in paragraph 6.2.1 of this Agreement. .23 "pçjal_Facilities' Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule 72 or the Generation Interconnection Process required to safely interconnect the Seller's Facility to the Idaho Power system. 1.24 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. Exhibit 2104 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 10/10/2005 1.25 "SurDlus - (1) Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month which exceeds 110% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2. or (2) If the Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month is less than 90% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. I 26 "Total Cost of the Facility" - The total cost of structures, equipment and appurtenances. ARTICLE II: NO RELIANCE ON IDAHO POWER 2.1 Seller IndeMndent Investigation - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined that it is capable of performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent_Expç-ts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE 111: WARRANTIES 3.1 No Warrany by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qualifying_Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term Gi -4- R. Guy: Idaho Wind Partners I, LLC Page 5 1011012005 is used and defined in 18 CFR §292.207. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 CFR 292.207. 4.1.2 Opinion of Counsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4A.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld, The Opinion Letter will he governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1 .3 Initial Capacity Determination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal anchor average operating design conditions and Station Use data. Exhibit 2104 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC 10/10/2005 Page 6 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.4 gipfs Certifications .. Submit an executed Engineer's Certification of Design & Construction Adequacy and an Engineers Certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1 .5 Insurance - Submit written proof to Idaho Power of all insurance required in Article XV. 4.1.6 Interconnect ion — Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed 4. 1 .7 Written Acceptance - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V.JE4M_AND OPERATION DATE 5.1 Tni - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shall continue in full force and effect for a period of twenty (20) Contract Years from the Operation Date. 5.2 Operation Date -The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and safe manner and has requested an Exhibit 2104 GNR-E-1 1-03 -6- R. Guy: Idaho Wind Partners I, LLC Page 7 10/10/2005 Operation Date in written form. d)Seller has requested an Operation Date from Idaho Power in a written format. e)Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power, 5.3 Seller's failure to achieve the Operation Date within ten (10) months of the Scheduled Operation Date will be an event of default. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivery and Acceptance of Net Energy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount, 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2.1 Initialar Month ly Net Energy Amounts: Month kWh March 5,787,962 Season 1 April 4,427,728 May 4,963,825 July 3,214,413 August 3,031,353 Season 2 November 3,732,861 December 4,870,362 June 4,542,022 September 3,874,824 Season 3 October 4,945,819 January 3,863,663 February 4,585,851 -7- Exhibit 2104 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 10110/2005 6.2.2 Ongoing Monthly Net Energy Amounts - Seller shall initially provide Idaho Power with one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts) and beginning at the end of month nine and every three months thereafter provide Idaho Power with an additional three months of forward generation estimates. This information will be provided to Idaho Power by written notice in accordance with paragraph 28.1, no later than 5:00 PM of the 51h day following the end of the previous month. If the Seller does not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy amounts. 6.2.3 Seller's Adjustment ofNet Enr Amount - 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance with paragraph 28.1, the Seller may revise all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the Yd month after the Operation Date and at the end of every third month thereafter: (1) the Seller may not revise the immediate next three months of previously provided Net Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than 5:00 PM of the 5' day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts will be deemed to be an election of no change. 6.2.4 Idaho Power Adjustment of Net Energy Amount - If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 and the Seller's declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy Exhibit 2104 GNR-E-1 1-03 - 8- R. Guy: Idaho Wind Partners I, LLC Page 9 O/IO2O05 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will he reduced in accordance with the following: Where: NBA = Current Month's Net Energy Amount (Paragraph 6.2) SGU = a.) If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 this value will be equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. b.) If the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 this value will be the sum of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspension of Energy Deliveries. TGU = Sum of all of the individual generator ratings of the generation Units at this Facility as specified in Appendix B of this agreement. RSH = Actual hours the Facility's Net Energy deliveries were either reduced or suspended under paragraph 14.2.1 or 14.3.1 TI-I = Actual total hours in the current month Resulting formula being: Adjusted Net Energy = NEA - ( ( a G—U X NBA ) X ( EII ) ) Amount IOU TH This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific month in which Idaho Power was excused from accepting the Seller's Net Energy or the Seller declared a Suspension of Energy. 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy, in any Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. Exhibit 2104 9 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 10/10/2005 ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Net Energy Purchase Price - For all Net Energy, Idaho Power will pay the non-levelized energy price in accordance with Commission Order 29646 with seasonalization factors applied: Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Season I - (73.50 %) Mills/kWh 37.00 37.85 38.73 39.62 40.53 41.46 42.42 43.39 44.39 45.42 46.47 47.54 48.63 49.76 50.91 52.07 53.28 54.51 55.76 57.05 58.37 59.72 Season 2 - (120.00 %) Mills/kWh 60.41 61.80 63.23 64.68 66.17 67.69 69.25 70.85 72.48 74.16 75.86 77.62 79.40 81.24 83.11 85.02 86.99 88.99 91.04 93.14 95.29 97.50 Season 3 - (100.00 %) Mills/kWh 50.34 51.50 52.69 53.90 55.14 56.41 57.71 59.04 60.40 61.80 63.22 64.68 66.17 67.70 69.26 70.85 72.49 74.16 75.87 77.62 79.41 81.25 7.2 tiiI)lus_Energy Pri - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.1, whichever is lower. 7,3 Inadvertent Energy - 7.3,1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was delivered. (For example January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be Exhibit 2104 GNR-E-1 1-03 _10- R. Guy: Idaho Wind Partners I, LLC Page 11 OIIO/2005 Inadvertent Energy.) 7.3.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 Payment Due Date - Energy payments to the Seller will be disbursed within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy and Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A. 7.5 Continuing Jurisdiction of the cQmmission —This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power Company v. Idaho Public Utilities Commission and Afton Energy, nc., 107 Idaho 781, 693 P.2d 427 (1984); Idaho Pow rCmpany v. Idaho Public Utilities Commission, 107 Idaho 1122, 695 P.2d 1 261 (1985); AftonEnergy, Inc. v. Idaho Power Compy, 111 Idaho 925, 729 P.2d 400 (1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR §292.303-308. ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the production of energy from the Seller's Facility. ARTICLE IX: FACILITY AND INTERCONNECTION 9.1 Design of Facility - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full Exhibit 2104 GNR-E-1 1-03 - 11- R. Guy: Idaho Wind Partners I, LLC Page 12 10/10/2005 term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X! DISCONNECTION EQUIPMENT 10.1 Except as specifically provided for in this Agreement, the required Disconnection Equipment will he in accordance with Schedule 72, the Generation interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operations and monthly maintenance expenses. ARTICLE XI: METERING AND TELEMETRY 11.1 Metering and Telemetry - Idaho Power shall, for the account of Seller, provide, install, and maintain Metering Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with Schedule 72, Generation Interconnection Process and Appendix B of this Agreement. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. All Metering Equipment and installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting and testing such equipment at reasonable intervals at Idaho Power's actual cost of providing this Exhibit 2104 GNR-E-11-03 -12- R. Guy: Idaho Wind Partners I, LLC Page 13 0Il0/20O5 Metering Equipment and services. The Metering Equipment shall be at the location described in Appendix B of this Agreement. All meters used to determine the billing hereunder shall be sealed and the seals shall be broken only by Idaho Power when the meters are to be inspected, tested or adjusted. 11.2 Meter pection - Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed as specified in Appendix B of this Agreement. If requested by Seller, Idaho Power shall make a special inspection or test of a meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall be notified of the time when any inspection or test shall take place, and each Party may have representatives present at the test or inspection. If a meter is found to be inaccurate or defective, it shall be adjusted, repaired or replaced, at Idaho Power's expense in order to provide accurate metering. if a meter fails to register, or if the measurement made by a meter during a test varies by more than two percent (2 %) from the measurement made by the standard meter used in the test, adjustment (either upward or downward) to the payments Seller has received shall be made to correct those payments affected by the inaccurate meter for the actual period during which inaccurate measurements were made, lithe actual period cannot he determined, corrections to the payments will be based on the shorter of (1) a period equal to one-half the time from the date of the last previous test of the meter to the date of the test which established the inaccuracy of the meter; or (2) six (6) months. 11.3 Telemetry - Idaho Power will install, operate and maintain at Sellers expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility. UARTICLE Xli- RECORDS 12.1 Maintenance of Records - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy Exhibit 2104 GNR-E-1 1-03 13- R. Guy: Idaho Wind Partners I, LLC Page 14 10JlO/2005 and maximum generation (kW) records in a form and content recommended by Idaho Power. 12.2 Inspection Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (lcW) records pertaining to the Seller's Facility. ARTICLE XIII - PROTECTION 13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix B of this Agreement, Prudent Electrical Practices, the National Electrical Code, the National Electrical Safety Code and any other applicable local, state and federal codes. Seller acknowledges receipt of the Generation Interconnection Process. If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such interruption prior to its occurrence as provided in paragraph 14.9. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. ARTICLE XIV - OPERATIONS 14.1 Communicaiorts - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. Exhibit 2104 GNR-E-1 1-03 -14- R. Guy: Idaho Wind Partners!, LLC Page 15 1011012005 14 .2 Energy Acceptance - 14.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeure, or if Idaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance requirements, emergencies, electrical system operating conditions on its system or as otherwise required by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure, Idaho Power requires such a curtailment, interruption or reduction of Net Energy deliveries for a period that exceeds twenty (20) days, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 14.2.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 14.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 14.3 Seller Declared Suspension of Energy Deliveries 14.3.1 If the Seller's Facility experiences a forced outage due to equipment failure which is not caused by an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility, Seller may, after giving notice as Exhibit 2104 GNR-E-1 1-03 15 R. Guy: Idaho Wind Partners I, LLC Page 16 10/10/2005 provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy to Idaho Power from the Facility or from individual generation Unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours to correct the forced outage condition ("Declared Suspension of Energy Deliveries"). The Seller's Declared Suspension of Energy Deliveries will begin at the start of the next full hour following the Seller's telephone notification as specified in paragraph 14,3.2 and will continue for the time as specified (not less than 48 hours) in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net Energy Amount will be adjusted as specified in paragraph 6.2.4. 14.3.2 If the Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in paragraph 14.3.1, the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveries will be at the earliest the next full hour after making telephone contact with Idaho Power, The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Article XXVIII that will contain the beginning hour and duration of the Declared Suspension of Energy Deliveries and a description of the conditions that caused the Seller to initiate a Declared Suspension of Energy Deliveries, Idaho Power will review the documentation provided by the Seller to determine Idaho Power's acceptance of the described forced outage as qualifying for a Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's forced outage as an acceptable forced outage will be based upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 14.5 Voltage Levels .. Seller, in accordance with Prudent Electrical Practices shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of GNRBI103 - 16- R. Guy: Idaho Wind Partners I, LLC Page 17 1 011012005 Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 14.6 Generator Rampjg Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or following reconnection to Idaho Power's electrical system. Generation ramping may be required to permit Idaho Power's voltage regulation equipment time to respond to changes in power flow. 14.7 Scheduled Maintenance - On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 14.9 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XV: INDEMNIFICATION AND INSURANCE 15.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or Exhibit 2104 GNR-E-1 1-03 - 17- R. Guy: Idaho Wind Partners I, LLC Page 18 10/10/2005 maintenance of, ol- by failure of, any of such Party's works or facilities used in connection with this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 15,2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 15.2.2 The above insurance coverage shall be placed with an insurance company with anA.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 15.3 Seller to Provide Certificate of Insurance - As required in paragraph 4.1.5 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 15.4 Sellerto—Notify Idaho Power of Loss of Coverage - if the insurance coverage required by paragraph 15.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute a Material Breach of this Agreement. ARTICLE XVI. FORCE MAJEURE 16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause Exhibit.2104 GNR-E-1 1-03 - 18- R. Guy: Idaho Wind Partners I, LLC Page 19 10/10/2005 beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occulTence causing the suspension of performance and which could and should have been fully performed before such occurrence shall he excused as a result of such occurrence. ARTICLE XVII: LAN D RIGHTS 17.1 Seller to Provide Access - Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Exhibit 2104 GNR-E-1 1-03 -19- R. Guy: Idaho Wind Partners I, LLC Page 20 10/10/2005 Idaho Power's approval and in recordable form. 17.2 Use of Public Rights-of-Way - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with paragraph 17.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint Use of Facilities - Subject to Idaho Power's compliance with paragraph 17.4, Idaho Power may use and attach its distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to paragraph 17.2, attaching Seller's Interconnection Facilities to such newly constructed facilities. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.3. 17.4 Conditions of Use - It is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Article XVII. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method of apportioning these costs the dispute will he submitted to the Commission for Exhibit 2104 GNR-E-11-03 20- R. Guy: Idaho Wind Partners I, LLC Page 21 10/10/2005 resolution and the decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XVII. ARTICLE XVIII: LIABILITY: DEDICATION 18.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other under any provision of this Agreement shall constitute the dedication of tat Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XIX: SEVERAL OBLIGATIONS 19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership Or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. ARTICLE XX:_WAIVER 20.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XX1: CHOICE OF LAWS AND VENUE 21.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of Exhibit 2104 GNR-E-1 1-03 -21- R. Guy: Idaho Wind Partners I, LLC Page 22 10/10/2005 the Fourth Judicial District of Idaho in and for the County of Ada. ARTICLE XXII: DISPUTES AND DEFAULT 22.1 Disputes - All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will he submitted to the Commission for resolution. 22,2 Notice of Default - 22.2.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 22.2.2 Material Breaches - The notice and cure provisions in paragraph 22.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 22.3 Security for Performance - Prior to the Operation Date and thereafter for the full term of this Agreement, Seller will provide Idaho Power with the following: 22.3.1 Insurance * Evidence of compliance with the provisions of paragraph 1i2. If Seller fails to comply, such failure will he a Material Breach and may Qfljy he cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 22.3.2 Engineer's Certifications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0 Exhibit 2104 GNR-E-1 1-03 -22- R. Guy: Idaho Wind Partners I, LLC Page 23 10/1012005 & M) from a Registered Professional Engineer licensed in the State of Idaho, which Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and 22.3.3 Licenses and Permits - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4.1 .1 or to provide the documentation required by this paragraph, such failure will be an event of default and may 2ILly be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XX1H: GOVERNMENTAL AUTHORIZATION 23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE XXIV: COMMISSION ORDER 24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXV: SUCCESSORS AND ASSIGNS 25.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without the written consent of both Parties being Exhibit 2104 GNR-E-1 1-03 -23- R. Guy: Idaho Wind Partners I, LLC Page 24 IOfl 0/2005 first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights, obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies. ARTICLE XXVI: MODIFICATION 26.1 No modification to this Agreement shall he valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXVII: TAXES 27.1 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed to he paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXVIII: NOTICES 28] All written notices under this agreement shall be directed as follows and shall he considered delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows: To Seller: Milner Dam Wind Park, LLC Attn: James T, Carkulis 515 N27th Street P.O. Box 7218 Boise, Idaho 83702 Exhibit 2104 GNR-E-1 1-03 -24- R. Guy: Idaho Wind Partners I, LLC Page 25 10110/2005 To Idaho Power: Original documentto: Vice President, Power Supply Idaho Power Company P0 Box 70 Boise, Idaho 83707 Copy of document to: Cogeneration and Small Power Production Idaho Power Company P0 Box 70 Boise, Idaho 83707 ARTICLE XXIX: ADDITIONAL TERMS AND CONDITIONS 29.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications ARTICLE XXX: SEVERABILITY 30.1 The invalidity or unènforceability of any term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXXI: COUNTERPARTS 31.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. ARTICLE XXXII: ENTIRE AGREEMENT 32.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter Exhibit 2104 GNR-E-1 1-03 -25- R. Guy: Idaho Wind Partners I, LLC Page 26 1011012005 hereof and supersedes all prior or contemporaneous oral or written agreements between the Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed in their respective names on the dates set forth below: Idaho Power Company Mil ner Dam Wind Park L.L.C. By By 4~~g On I C. Miller, Sr. Vice President, Power Supply James r. Carkulis Dated Dated "Idaho Power" "Seller" Exhibit 2104 GNR-E-1 1-03 -26- R. Guy: Idaho Wind Partners I, LLC Page 27 1011OP_005 APPENDIX A A—] MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will he submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. Exhibit 2104 GNR-E-1 1-03 27- R. Guy: Idaho Wind Partners I, LLC Page 28 10/1 (V2005 Project Name Address City Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Number: Phone Number: State Zip Meter Number: End of Month kWh Meter Reading: Beginning of Month kWh Meter: Difference: Times Meter Constant: kWh for the Month: Metered Demand: Facility Output Station Station Em= Lam Maximum Generation kW Net Generation Breaker Opening Record Breaker Closing Record Date Timc Meter I Reason ftDate Time Meter Breaker Oveninu Reason Codes I Lack of Adequate Prime Mover 2 Forced Outage of Facility 3 Disturbance of IPCo System 4 Scheduled Maintenance 5 Testing of Protection Systems 6 Cause Unknown 7 Other (Explain) 1 hereby certify that the above meter readings are true and correct as of Midnight on the last day of the above month and that the Switching record is accurate and complete as required by the Firm Energy Sales Agreement to which I am a Party. Signature Date Exhibit 2104 GNR-E-1 1-03 -28- R. Guy: Idaho Wind Partners I, LLC Page 29 1011012005 A-2 ROUTINE REPORTING Idaho Power Contact Information PiJv Energy Production Reportin Call daily by 10a.m., 1-800-356-4328 or 1-800-635-1093 and leave the following information: • Project Identification - Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unplanned Project outages Call j00-345-1319 and leave the following information: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coming back online Seller's Contact Information 24-HourErjeciionalContac, Name: Telephone Number: Cell Phone: Prp ject On-site Contact information Telephone Number: Exhibit 2104 GNR-E-1 1-03 -29- R. Guy: Idaho Wind Partners I, LLC Page 30 10/10/2005 I 0 APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31720190 MILNER DAM WIND PARK B-I DESCRIPTION OF FACILITY The Facility will consist of 12 Wind turbines; model 77 GE SLE with individual generator ratings of 1.5 MW for each unit, for a total Facility generator rating of 18.0 MW. B-2 LOCATION OF FACILITY Near: Sections: 25, 26,L Township: TI0&.._ RangesR2OE County: Cassia Idaho. B-3 SCHEDULED FIRST ENERGY AND OPERATION I)ATE Seller has selected November 1, 2006 as the estimated Scheduled First Energy Date. Seller has selected May 1, 2007 as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. Idaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 72 and the Generation Interconnection Process. B-4 MAXIMUM CAPACITY AMOUNT: This value will be 19.2 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection process. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in lime. Exhibit 2104 GNR-E-1 1-03 -30- R. Guy: Idaho Wind Partners I, LLC Page 31 10/10/2005 B-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power Generation Interconnection process will determine the specific Point of Delivery for this Facility. Upon completion of the Generation Interconnection process the Point of Delivery identified by this process will become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at anytime during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. B-7 METERING AND TELEMETRY The Idaho Power Generation Interconnection process will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry Exhibit 2104 GNR-E-1 1-03 -31- R. Guy: Idaho Wind Partners I, LLC Page 32 1011012005 equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Sellers cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Powers use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. J3-7 SPECIAL FACILITIES The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Special Facility cost will be included in the calculation of the Monthly Operation and Exhibit 2104 GNR-E-1 1-03 -32- R. Guy: Idaho Wind Partners I, LLC Page 33 10110/2005 Maintenance Charges specified in Schedule 72. B-8 REACTIVE POWER The Idaho Power Generation Interconnection process will determine the reactive power required to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The Generation Interconnection process will specify the equipment required on the Idaho Power system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will he maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. 13-9 DISCONNECTION EQUIPMENT Disconnection Equipment is required to insure that the Seller's Facility will be disconnected from Idaho Powers system in the event of (1) the Sellers delivery of energy exceeds the Maximum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's Facility. The Idaho Power Generation Interconnection process will determine the Disconnection Equipment specifications and requirements for this Facility, this equipment is for protection of the Idaho Power system and equipment only. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller Exhibit 2104 GNR-E-1 1-03 -33- ft Guy: Idaho Wind Partners I, LLC Page 34 10/10/2005 provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire and conduit necessary for the operation of the Disconnection Equipment. Through the Generation Interconnection process, Idaho Power will supply details for the disconnection panel and will test the equipment prior to any operations of the Facility, Seller will provide drawings of their interconnection wiring for engineering approval prior to installation. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, Operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Disconnection Equipment cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72, 13-10 COSTS The Idaho Power Generation Interconnection l)rOCCss and this Agreement will identify all cost for this Facility to interconnect to the Idaho Power system, including but not limited to the cost of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection equipment, Protection equipment and Interconnection Equipment. As specified in the Generation Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, installation and construction charges as specified above, during the term of this Agreement, Seller will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following the date which Idaho Power has completed installation of the Idaho Power provided equipment and the interconnection equipment is available for use by the Facility. The monthly operations and maintenance charge will be based upon the initial cost paid GNR-E.11-03 34 R. Guy: Idaho Wind Partners I, LLC Page 35 10110/2005 by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will be adjusted to reflect the actual cost incurred by Idaho Power and previously charged monthly operation and maintenance expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adjusted monthly operations and maintenance charge within sixty (60) days of the determination of this amount. B-Il SALVAGE No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished Interconnection Facilities as required under Schedule 72, the Generation Interconnection Process and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. Exhibit 2104 GF'JR-E-1 1-03 35 R. Guy: Idaho Wind Partners I, LLC Page 36 10/10/2005 APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and is hereinafter referred to as the "Project." 4.That the Project, which is commonly known as the is located in Section Township , Range , Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the Exhibit 2104 GNR-E-1 1-03 -36- R. Guy: Idaho Wind Partners I, LLC Page 37 101101200.5 Project's producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. 9.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date Exhibit 2104 GNR-E-11-03 37 R. Guy: Idaho Wind Partners I, LLC Page 38 1 0110/2005 APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Project, is located at 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the remaining years of the Agreement. Exhibit 2104 GNR-E-1 1-03 -38- R. Guy: Idaho Wind Partners I, LLC Page 39 10/10/2005 9. That engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10, That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. (P.E. Stamp) Date Exhibit 2104 GNR-E-1 1-03 -39- R. Guy: Idaho Wind Partners I, LLC Page 40 1011012005 APPENDIX C ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned , on behalf of himself and hereinafter collectively referred to as 'Engineer", hereby states and certifies to Idaho Power as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter 'Agreement, between Idaho Power as Buyer, and as Seller, dated ____________ 3.That the cogeneration or small power production project, which is the subject of the Agreement and this Statement, is identified as IPCo Facility No and is hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Project, is located in Section- -, Township , Range , Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a (.__) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. S. That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. Exhibit 2104 GNR-E-1 1-03 -40- R. Guy: Idaho Wind Partners I, LLC Page 41 10/10/2005 9.That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a __________ (__) year period. 11.That Engineer recognizes that Idaho Power, in accordance with paragraph 5,2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (PE. Stamp) Date Exhibit 2104 GNR-E-1 1-03 - 41- R. Guy: Idaho Wind Partners I, LLC Page 42 1011012005 :C I FIRM ENERGY SALES AGREEMENT BETWEEN IDAI-10 POWER COMPANY AND OREGON TRAIL WIND PARKL.L.C, TABLE OF CONTENTS Article TITLE 1 Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy S Tcrm and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection 10 Disconnection Equipment Ii Metering and relcrneuy 12 Records 13 Protection 14 Operations 15 Indemnification and insurance 16 Force Majeure 17 Land Rights 18 Liability; Dedit nnn 19 Several Obligations 20 Waiver 21 Choice oiLaws and Venue 22 Disputes and Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modification 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire Agreement Signatures Appendix A Appendix B Appendix C 2/15/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (10 aMW or Loss) OREGON TRAIL WIND PARK L.L.C. Project Number: 31315075 THIS AGREEMENT, entered into on this .j18"'.€--day of February 2005 between OREGON TRAIL WIND PARK L.L.C. (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." WITNESS ETI I: WHEREAS, Seller will le5ign rnnelriicl own, maintain antI operate an etecirie generation ticilily; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility, TI-IEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: AR'I'lCLli I: l)lF1Nfl'l()NS As used in this Agreement and the appendices attached hereto, the following terms shall have the following Ilteinlings: • I "Commission" -The Idaho Public Utilities Commission. 1.2 "ct!1I1.itc.LIii[" -. The period commencing each calendar year on the same calendar (late as the Operation l.)ate and ending 364 days thereafter. 1.3 Facility" - Idaho Power's Systems operations Group, or any subsequent group designated by Idaho Power. 1.4 D.jneüonEqujpnient" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any a(ldilional equipment specified in Appendix B. 1.5 "Facility" -That electric generation facility (IL'rJlxAl in Appendix 1-3 of this Agreement. 2/1812005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 L6 - The day commencing at 0001 hours, Mountain Time, following the (Jay that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho l'ower's system at the Point of Delivery. 1.7 "Generation _Interconnection Process" - Idaho Power's generation interconnection application and engineering LCVeW process developed to ensure a safe and reliable generation interconnection in compliance with all applicable regulatory requirements, Prudent Electrical Practices and national safety standards. 1.8 "Inadvertent Energy" - llectric energy Seller does not intend to generate. Inadvertent energy is more particularly described in paragraph 7.3 of this Agreement 1.9 - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.10 ñLiiii _Determination"i— The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 1-11 "Losses" •'l'he loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between tIre point where tIre Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement. 1.12 "Markm Eighty five percent (85%) of the weighted average of the daily on-peak and off -peak Dow Jones Mid-Columbia Index (1)ow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will rnnlnally agree upon it replacement index, which is similar to the Dow Jones Mid- Columbia Index, The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.13 "Material Breach"-- A Default (paragraph 222.1) subject to paragraph 22.2.2. -2- 211 8t2(X)5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 1.14 'um Capacity Amount" - The maximum capacity (MW) of the Facility will he as specified in Appendix B of this Agreement. 1.15 "MIgrj.ljgEcuiprnent" - All equipment specified in Schedule 72, the Generation Interconnection Process, this Agreement and any additional equipment specified in Appendix J3 required to measure, record and telemeter power flows between the Seller's electric generation plant and Idaho Power sy;tem. 1.16 "Net Energy" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include inadvertent Energy. 1.17 "Operation Date" -The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.18 'PoiifDelivet" -The location specified in Appendix 1 -3, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.19 1 tIc1gLjI.Briicjjc_" —Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, aiely, clepclldal)ly, cificiently and cconomically. 1.20 "Scheduled Omration Date" -The (late specified in Appendix 13 when Seller anticipates achieving the Operation Date. 1.21 "Schedule 72" .- Idaho Pawpr' s 'I'ari If No In 1 . ' .v' .v,.h&.diiIet 77 or its Si i'eisnr srh,h ili.s as approved by the Commission. 1.22 "Season" - The three periods identified in paragraph 6.2.1 of this Agreement. 1.23 "Special Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule 72 or the Generation Interconnection Process required to safely interconnect the Seller's Facility to the Idaho Power system. 1.24 "5j.p jJ.." - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. -3- Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 1.25 "ijIergy" ([)Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month which exceeds 110% or the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2. or (2) If ihe Net Energy produced by the Seller's I'aciltty and delivered to the Idaho Power electrical system during the month is less than 90% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.26 "Total _Cost .gf the _ç.jLjt" -The total cost of strueltires, c'cpiipmaul and appiirtnnncas ARTICLE 11: NO RELIANCE ON IDAHO POWER 2.1 - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined that it is capable 01' performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent Exp.erL - All piofessiouals or experts including, but nut lititited to, etlgitteeis, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions conlen)plated by this Agreement have been solely those of Seller. AR'liCLI III: WARRANTIES 3.1 No Warranty l Idaho Power - Any review, acceptance of- failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho l'ower and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qualifying_Facilj(yStatus - Seller warrants that the Facility is a "Qualifying Facility," as that term - 2/18/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 is used and defined in 18 CFR §292.207. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime (luring the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEI'TANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart 8, 18 CFR 292.207. 4. 1.2 Ql! ion .sCounsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the Slate of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4. 1.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, cuuncl ia of the opinion that Sellei iN in ,iit.,sinutial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not he unreasonably withheld. The Opinion Letter will be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (l991). 4.1 .3 Initial CaI?acltyD.eterrnination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity I)eterminaiion. Such dam will include but not he limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. -5- 2/1 W2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.4 Engineer's Cer ti fications - Submit an executed Engineer's Certification of Design & Construction Adequacy and an Engineer's Certification of Operations and Maintenance (O&M) Policy as desci ibed in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may he modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 1.1.5 Insurance - Submit written proof to Idaho Power of all inurnnce required in Article XV 4.1.6 Interconnection.— Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed. 4.1 .7 Wrillen Acç .pfloc_e - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not he unreasonably withheld by Idaho Power. ARTICLE \': TERM AND OPERATION DATE 5.1 :.:w - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shall continue in full force and effect fora period of twenty (20) Contract Years from the Operation Date. 5.2 0 -The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Powers satisfaction that the Facility is complete and able to provide energy in it consistent, reliable and safe manner and has requested an -6- 2/I W20()5 Exhibit 2105 GNR-E-1 1 -03 R. Guy: Idaho Wind Partners I, LLC Page 7 Operation Date in written form. d)Seller has requested an Operation Date from Idaho Power in a written format. e)Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not he unreasonably withheld by Idaho Power. 5.3 Seller's faihire to achieve the Operation Date within Len (10) months of the Scheduled Operation J)ate will be an event of default. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivery Net Energy .. Except wh'n either Party's perfornmnc~ is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. AL no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2. I Initial Year _MoflJ!!yNetEueigy ,'unouut Mouth kWh March 3,1 00,625 Season I April 2,689,296 May 2,501,984 July 1,91.0,208 August 1,781,958 Season 2 November 1,884,234 December 2,425,295 June 2,711,046 September 2,422,340 Season 3 October 2,621,565 January 1,923,853 February 2,559,792 7 2/1812005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 6.2.2 Qggoing Mol !jiy_Ngt cgy,jflQ .ip - Seller shall initially provide Idaho Power with one year of monthly generation estimates (initial Year Monthly Net Energy Amounts) and beginning at the end of month nine and every three months thereafter provide Idaho Power with an additional three months of forward generation estimates. This information will he provided to Idaho Power by Written notice in accordance with paragraph 28. 1, no later than 5:00 PM of the 5 day following the end of the previous month. If the Seller does not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power will use the most recent 3 months of the initial Year Monthly Net Energy Amounts specified in paragraph 61.1 for the next 3 months of monthly Net Energy an)ohlnts. 6.2.3Seller's Asiientof Net ergyAmount - 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance with paragraph 28.1, the Seller may revise all of the pieviotisly provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 3 month after the Operation Date and at the end of every third month thereafter: (I) the Seller may not revise the immediate next three months ot previously provided Net Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than 5:00 PM of the 5th day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts will be deemed to be an ele.'iinn of no change. 6.2.4 IdahoJPower_Ajjmei[fL. pprgyApvji -- if Idaho Power is excused front accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 and the Seller's declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy -8- 2/1 tt/2(X5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners t, LLC Page 9 6.3 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with the following: Where: NEA = Current Month's Net Energy Amount (Paragraph 6.2) SGI I = a.) If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 this value will be equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. b.) If the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 this value will be the sum of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspension of Energy Deliveries. TGU = Sum of all of the individual generator ratings of the generation units at this Facility as specified in Appendix B of this agreement. psi-I = Actual hours the Facility's Net Energy deliveries were either reduced or suspended under paragraph 14.2.1 or 14.3.1 TI-I = Actual total hours in the current month Adjusted = NlA ( ( X NBA ) X ( P511 ) ) Net Eiergy Amount This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific month in which Idaho Power was excused from accepting the Seller's Net Energy or the Seller declared a Suspension of Energy. Unless CXCLISe(l by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least tell pe-reclld (10%) of [lie sum of (lie Initial Yen Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. - 9- 2115/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Net Energy Purchase Price - For all Net Energy, Idaho Power will pay the non-levelized energy price in accordance with Commission Order 2964 with seasonalization factors applied: Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Season I - (73.50 %) Mills/kWh 37.00 37.85 38.73 39.62 40.53 41.46 42.42 43.39 44.39 45.42 46.47 47.54 48.63 49.76 50.91 52.07 53.28 54.51 55.76 57.05 58.37 59.72 Season 2 - (120.00 %) Mills/kWh 60.41 61.80 63.23 64.68 66.17 67.69 69.25 70.85 72.48 74.16 75.86 77.62 79.40 81.24 83.11 85.02 86.99 88.99 91.04 93.14 95.29 97.50 Season 3 -(100.00 %) Mills/kWh 50.34 51.50 52.69 53.90 55.14 56.41 57.71 59.04 60.40 61.80 63.22 64.68 66.17 67.70 69.26 70.85 72.49 74.16 75.87 77.62 79.41 81.25 7.2 - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.1, whichever is lower. 7.3 Iiiaclvcitcnt Energy - 7.3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller dcl ivers to Idaho Power at the Point of Delivery that exceeds 10,000kW multiplied by the hours in the specific month in which the energy was delivered. (For example January contains 744 hours. 744 times 10,000 kW = 7,440,00() kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be Inadvertent - 10- 211812005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Energy.) 7.3.2 Although Seller intends to design and operate the Facility to generate no more than It) average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 Payment Due Data Energy payments to the Seller will bedisbursed within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy and Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A 7.5 Continuing Jurisdiction of the Commis sion —This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power Cornoariv v. Idaho Public Utilities Commission and Afton Hn g Inc., 107 Idaho 781, 693 P.2(1 427 (1984); tlo Power CopjjjyyJthiho Public Utilities Commission, 107 Idaho 1122,695 P.2d I 261 (1985); Afton Energjnc. v. Idaho Power Compar!y, Ill Idaho 925, 729 P.2d 400 (1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR §292.303-308. ARTICLE VIII: _ENVIRONMENTAL _ATI'RIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to, Green Tagi, Green Certificates. Renewable h'oergy Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the production of energy from the Seller's Facility. ARTICLE IX: FACILITY AND INTERCONNECTION 9.1 DrjgpofRtciijty - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full 2/I8/2()O5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Cieneration Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment cost, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. AIrT't(i RXJ)ISCnIECTIONRQIJIPMENT 10.1 Except as Specifically provided for in this Agreement, the required Disconnection Equipment will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operations and monthly maintenance expenses. ARTICLE XI. METERING ANt) TtiLEMLTR\' 11.1 - Idaho Power shall, for the account of Seller, provide, install, and maintain Metering Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with Schedule 7'), citsnrat ion Interconnection Process and Appendix B of this Agreement. The Metering Equipment will he at the location and the type required to measure, record and report the Facility's Net Energy, Station Use. Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. All Metering Equipment and installation costs shall he borne by Seller, including costs incurred by Idaho Power for inspecting and testing such equipment at reasonable intervals at Idaho Power's actual cost of providing this - 12- 2/15/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Metering Equipment and services. The Metering Equipment shall be at the location described in Appendix 13 of this Agreement. All meters used to determine the billing hereunder shall he sealed and the seals shall he broken only by Idaho Power when the meters are to be inspected, tested or adjusted. 11.2 Meter Insoection - Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed as specified in Appendix I) of this Agreement. Ii requested by Seller, Idaho Power shall make a special inspection or test of a meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall he notified of the time when any inspection or test shall take place, and each Party may have representatives present at the test or inspection. If a meter is found to be inaccurate or defective, it shall be adjusted, repaired or replaced, at Idaho Power's expense in order to provide accurate metering. If a meter fails to register, or if the measurement made by a meter during a test varies by more than two percent (2 %) from the measurement made by the standard meter used in the test, adjustment (either upward or downward) to the payments Seller has received shall be made to correct those payments affected by the inaccurate meter for the actual period during which inaccurate measurements were made. If the actual period cannot be determined, Corrections to the pityil lei Its will be based ott the lwi tci of (I) a IXOMI equal to uu ic-h [it l I I te ti i tie ft ott t the date of the last previous test of the meter to the date of the test which established the inaccuracy of the meter; or (2) six (6) months. 11.3 Teleme - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Powers Designated Dispatch Facility. AR'l'ICLE XII - RECORDS 12.1 Maintenance of Record - Seller shall maintain at the Facility or such other location mutually acceptable to' the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy -13- 2118/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 and maximum generation (kW) records in a form and content recommended by Idaho Power. 12.2 Inspeclion - Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to Inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. ARTICLE XIII - PROTECTION 13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix 13 of this Agreement, Prudent Electrical Practices, the National Elvirieal Cnth, flin Niina1 Electrical Safety Code and any other applicable local, state and federal codes. Seller acknowledges receipt of the Generation Interconnection Process. If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power cleenis appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such internil)lion prior to its occurrence as prvielcd in Inuagiaph 14.9. Scilet shall piuvide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing, MiILC.LE Xl./.QPERATiONS 14-1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. 14.2 'gycçpjjiice - 14- 2/18/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 14.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, it it is prevented from doing so by an event of Force Maleure, or if Idaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance requirements, emergencies, electrical system operating conditions on its system or as otherwise required by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure, Idaho Power requires such a curtailment, interruption or reduction of Net Energy deliveries for a period that exceeds twenty (70) days, beginning with the iwenty-iirt day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at it rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 14.2.2 II, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Powers equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as speciheti within Schedule 72 ot take sufAi uttiet reasonable steps as Idaho Power deems appropriate. 14.2.3 Under no circumstances will the Seller deliver Net Energy and/or inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maxintitin Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 14.3 SiJ)ccj.6LeISuspsnsinof Energy Deliveries 14.3.1 If the Seller's Facility experiences a forced outage due to equipment failure which is not caused by an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility, Seller may, after giving notice its provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy to - 15- 211512005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power from the Facility or from individual generation unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours to correct the forced outage condition ("Declined Suspension of Energy Deliveries"). The Seller's Declared Suspension of Energy Deliveries will begin at the start of the next full hour following the Seller's telephone notification as specified in paragraph 14.3.2 and will continue for the time as speciIel (not less tliaii 48 hours) in the wiitteii iiutificitiuii provided by the Seller. In the month(s) in which the Declare(] Suspension of Energy occurred, the Net Energy Amount will be adjusted as specified in paragraph 6.2.4. 1.1 .3.2 If the Seller desirtu; to initiate a Declared Suspension of Energy Deliveries as provided in paragraph 14.3. I, the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveries will be at the earliest the next lull hour after making telephone contact with Idaho Power. The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Article XXV1II that will contain the beginning hour and duration of the Declared Suspension of Energy Deliveries and a description of the conditions that caused the Seller to initiate if Declared Suspension of Energy Deliveries. Idaho Power will review the documentation provided by the Seller to determine Idaho Power's acceptance Of the described forced outage as qualifying for a Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's forced outage as an acceptable forced outage will be based upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majcure of- by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 145 Voltaae Levels - '.11er, in accordance with Pnidenl Electrical Practices shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (180) days notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as - 16- 2IItt/2(t)5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 necessary to accommodate the modified nominal operating voltage level. 14.6 Generator .Ramping - Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or following reconnection to Idaho Power's electrical system. Generation ramping may 1)0 required to permit Idaho Power's voltage regulation equipment time to respond to changes in power flow. 14.7 Scheduled Mai ten cc - On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as In ihe accs'.ptahilily of the. .celhr's tinitnhle for schacliiled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8 Maintenance Coordination The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 14.9 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller aderstatids that iii the ease of ci itci geticy CiICUJ totaijees, cat 6111C upei at kais of the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XV: INDEMNIFICATION AND INSURANCE 15.1 JiWe - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying l'arty's construction, ownership, operation or maintenance of, or by failure of, any of such Party's works or facilities used in connection with - 17- 2118/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 15.2 lnsuranc During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15.2.1 Comprehensive General Liability ttistiiaitcc for built bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall he consistent with current insurance Industry Utility practices for similar tioiei'. 15.2.2 The above insurance coverage shall he placed with an insurance company with an A.M. Best Company rating of A. 01. better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) clays' prior written notice to Idaho Power. 15.3 Sell ero. Provide _Certificate of Insur ance - As required in paragraph 4.1.5 herein and annually Iherealter, 5e1ler shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 15.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by paragraph 15.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the cavprae will conctitute a Material Breach of this Agreement. A RTICLE XVJ. FORCE MAJEURE 16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, - IS- 2/18/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbance-s, earthquakes, fires, lightning, epidemics, sabotage, or changes in Jaw or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall he unable to overcome. If eitlici Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused front whatever performance is affected by the event of Force Majeure, provided that: (I) The non-performing Party shall, as soon as i ratnnahly pn.~.Rihln. aI'l'.r Ilie occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall he of no greater scope and of lit) longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XVII: LAND RIGHTS 17.1 Seller to Provide Seller hereby grants to kluho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall he subject to Idaho Power's approval and in recordable form. - 19- 2/151201)5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 17.2 Use of Public Rights-of-Way - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with paragraph 17.4, Seller agrees that should Seller sock and receive from any local, stale or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim iis of snh pnhli right-of-way for such purposes at any time. Ixcept as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint Use of Facilities - Subject to Idaho Power's compliance with paragraph 17.4, Idaho Power may use and attach its distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to paragraph 17.2, attaching Seller's Interconnection Facilities to such newly coiisti ucied feilitie. Ece1,t its iequiied by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.3. 17ACondition,,; oflJ - It is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Article XVII. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way, lf the Parties are unable to agree on the method of apportioning these costs, the dispute will be submitted to the Commission for resolution and the decision of the Commission will be binding on the Parties, and (3) shall -20- 2/18/2(X)5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XVII. ARTICLE XVIII: LIABIUTY; DEDICATION 18.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. A RTJCL.l: XD(- S1VFfl At. ORI .WIATIONS 19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and notjoint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations wider this Agreement. ARTICLE XX: WAIVER 20.1 Any waiver at any lime by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent. default or other nmtter ART1CL XX1: CHOICE OF LAWS AND VENUE 21.1 This Agreement shall he construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada. -21- 2/1 S/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 ARTICLE XXII: DISPUTES AND DEFAULT 22.1 Disputes - All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will he submitted to the Commission for resolution. 22.2 Notice of Default - 22.2. I Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in writing in be given In the defaulting Party, specifying the manner in which citch default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) clays after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently l)USUC such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 22.2.2 Material Breaches -The notice and cure provisions in paragraph 22.2.1 do not apply to defaults kIei ified hi this Agi ecillel it as Matei ial Bi caches. Materiel l3ieachies lilusi be cured as expeditiously as possible following occurrence of the breach. 22.3 Security for Performance - Prior to the Operation Date and thereafter for the full term of this Agreement, Seller will provide Idaho Power with the following: 223.1 cc Evidence of compliance with the provisions of paragraph 15,2. If Seller fails to comply, such failure will be a Material Breach and may Qniy be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 22.3.2 Engineer',; Certifications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0 & M) from a Registered Professional Engineer licensed in tile State of Idaho, which -22- 2/14/2oo.s Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 Certification of Ongoing 0 & lvi shall he in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and 22.3.3 Licenses and Permits - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year. Seller will update the documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain compliance with the permits and licenses cleseribp.d in paiagraph 4. 1 . I or to provide the documentation required by this paragraph, such failure will bean event of dethult and may only be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XXIII: GOVERNMENTAL AUTHORIZATION 23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE. XXIV: COMMISSION ORDER 24.1 l'his Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall he allowed as prudently incurred expenses for ratemaking purposes. AR:rlCI.E XXV: SUCCESSORS AND ASSIGNS 25.1 This Agreement and all of the terms and provisions hereof shall he binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that 110 assignment hereof by either Party shall become effective without the written consent of both Parties being first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, -23- 2/18/2005 Exhibit 2105 GNR-E-1 1 -03 R. Guy: Idaho Wind Partners I, LLC Page 24 any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights, obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured tights from exercising all rights and remedies available to it tinder law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies. A1T1C1 .R XXVI MODIFICATION 26.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXVII: TAXES 27.1 Each Party shall pay before delinquency all taxes and other governmental charges which, iffailed to he paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXVIIt. NOTICES 28.1 All written notices under this agreement shall be directed as follows and shall be considered delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows: To Seller: Oregon Trail Wind Park L.L.C. Attn: Larry Leib 1424 Dodge Ave Helena, MT 59601 -24- 2 11,112005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 To Idaho Power: Ori2inal document to: Vice President, Power Supply Idaho Power Company P0 Box 70 Boise, Idaho 83707 Co J?Y-qf-doculilent to: Cogeneration and Small Power Production Idaho Power Company P0 Box 70 Boise, Idaho 83707 ARTICLE XXIX: ADDITIONAL TERMS AND CONDITIONS 29 I This Agre'.ment includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix 13 - Facility and Point of Delivery Appendix C - Engineer's Certifications ARTICLE XXX: SEVERABILiTY 30. 1 The invalidity or unenforceubility of any term or provision of this Agreement hatl not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXXI: COUNTERPARTS 31.1 This Agicemeni may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. ARTICLE XXXII: ENTIRE AGREEMENT 32.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the -25- 2/181200 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 Parties concerning the subiect matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement. to be executed in their respect ye names on the dates set forth below: Idaho JPower cpnipeny L.LC. By ./ J By N. Vcrn Porter- Mgr Power Supply Operations James Carkulis Dated Dated f6iL'y 2oo_• . . .../ . ( "Idaho Power" "Seller" -26- 2/18/2003 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 APPENDIX A A-1 MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to: Idaho Power Company Ann: Cogeneration and Small Power Production P Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Lquipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. 27- 2/15/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 28 Idaho Power Company Cogeneration and Sinai] Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Projet Name Project Number: Address Phone Number: City State Zip Facility Station Station Output Lam lle I4 fr End of Month kWh Meter Reading: Beginning of Month kWh Meter: Difference: Metered Maximum Gcneraliu kW Times Meter Constant: Net Generation kWh for the Month: Metered Demand: Breaker Closing Record Tti LT4TIfft I hereby certify that the above meter readings are true and correct as of Midnight on the last day of the above month and that the switching record is accurate and complete as required by the Firm Energy Sales Agreement to which I am a Party. Signature Mite -28- 21 5/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 Breaker Opening Record LffJ! Time JIiI1 itreaker Oncnini Reason Codes I Lack of Adequate Prime Mover 2 Forced Outage of Facility 3 i)istnrhnne of IPCn Systn 4 Scheduled Maintenance S Testing of Protection Systems 6 Cause Unknown 7 Other (Explain) A-2 ROUTINE REPORTING Idaho Power Contact Information i)aiiybnergy Production Reporting Call daily by 10 am, 1-800-356-4328 or and leave the following in formation: • Project Identification - Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Un planned Project outages Call 1800_3451319 and leave the following information: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coming hack online Seller's Contact Information 4LicLQDi0!iaICont act Name: Telephone Number: Cell Phone: Prtijct_ On-site Contact information Telephone Number: 2/1812005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 -29- APPENDIX 13 FACILITY AND POINT OF DELIVERY PROJECT NO. 31315075 OREGON TRAIL WIND PARK B-i 1)ESCRIPTIC)N OF FACILITY The Facility will consist of 7 GE Wind turbines model 77 SLE with individual generator ratings of 1.5 MW for each unit, fora total Facility generator rating of 10.5 MW. 13-2 LOCATION OF FACILITY Near: Jiagerman, Idaho Sections: l?!. Township:.._ Range:...J..2F . County:. Twin Falls R-' SCHl:ffIJlj:D FIRST 1NIRGY AND OPERATION DATE Seller has selected December 31,2005 as the estimated Scheduled First Energy Date. Seller has selected January 15,206 as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted all Operation Date. Idaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 72 and the Generation interconnection Process. B-4 MAXIMUM CAPACITY AMOUNT: This value will be 10.5 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection process. This value is the nlaxiniuin energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. -30- 2/23/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 13-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power Generation Interconnection process will determine the specific Point of Delivery for this Facility. Upon completion of the Generation Interconnection process the Point of Delivery identified by this process will become an integral part of this Agreement. 13-6 LOSSES if the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will he calculated for this Facility. lithe Idaho Power Metering is unable to measure the exact cilergy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% ot the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specilicatiulls, coiLduetul dc) of all of the ckctrkat equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to he agreed to by both pat -ties and used to calculate the kWh Losses for the remaining term of the Agreement. If at anytime during the term of this Agreement. Idaho Power Ietermine that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. 13-7 METERING AND TELEMETRY The Idaho Power Generation Interconnection process will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry -31- 7/18/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Intcreonticction process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipmont and rletlicaterl to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will he in accordance with Schedule 72 and the total metering Cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-7 SPECIAL FACILI'I'IES The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Setter provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Special Facility cost will be included in the calculation of the Monthly Operation and -32- 2/18/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners t, LLC Page 33 Maintenance Charges specified in Schedule 72. B-8 REACTIVE POWER The Idaho Power Generation Interconnection process will determine the reactive power required 10 he supplied by Idaho Power to the Seller, based upon information provided by the Seller. The Generation Interconnection process will specify the equipment required on the Idaho Power systeni to meet the Facility's reactive power rcquircrncnts. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided oqnipmeni The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will he maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation ot the Monthly Operation and Maintenance Charges specified in Schedule 72. B-9 DISCONNECTION EQUIPMENT Disconnection Equipment is required to insure that the Sellers Facility will be disconnected from Idaho Power's system in the event of (I) the Sellers delivery of energy exceeds the Maximum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's Facility. The Idaho Power Generation Interconnection process will determine the Disconnection Hquipment specifications and requirements fr this Faeility, this equipment is for protection of the Idaho Power system and equipment only. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire -33- 211 8121X)5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 and conduit necessary for the operation of the Disconnection Equipment. Through the Generation Interconnection process, Idaho Power will supply details for the disconnection panel and will lest the equipment prior to any operations of the Facility, Seller will provide drawings of their interconnection wiring for engineering approval prior to installation. The entire Generation Interconnection process, including but not limited to the equipment Sl)eCifiCatiOflS and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to he reimbursed to Idaho Power by the Seller. Payment of these Asts will he. in accorrinnne, with Scherhile 77. and the total T)i.ccnnnctinn Equipment cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-10 COSTS The Idaho Power Generation Interconnection process and this Agreement will identify all cost for this Facility to interconnect to the Idaho Power system, including but not limited to the cost of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection equipment. Protection equipment and Interconnection hquipment. As specified in the (ieneration Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, iusialtatin and construction charges as specified above, during the term of this Agreement, Seller will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following the date which Idaho Power has completed installation of the Idaho Power provided equipment arid the interconnection equipment is available for use by the Facility. The monthly operations and maintenance charge will be based upon the initial cost paid by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will he adjusted to 34. 2/i 5/201)5 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 G reflect the actual cost incurred by Idaho Power and previously charged monthly operation and maintenance expense will he revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adjusted monthly operations and maintenance charge within sixty (60) days of the determination of this amount. 13-1 I SALVAGE No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power 611- lisliPil liitrr.nnnretion Facilities as required under Schedule 72. the Generation Interconnection Process and/or described in this Agreement, less the cost of removal and transfer to Idaho Powers nearest warehouse, if the Interconnection Facilities will be removed. If Seller elects not 10 obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power, -35- 2/1 W200S Exhibit 2105 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 36 APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned on behalf of himself and hereinafter collectively referred to as 'Engineer," hereby statci. and certifies in I he Sell erac follows That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho, 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter 'Agreement, between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as lPCo Facility No. and is hereinafter referred to as the "Project." 4.Thai the Project, which is commonly known as the Pinjeet, is k,..nted ill Suction , Townshi1, Range _, Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power Plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M') for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the 36- 2/I5/2Oui Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 Project's producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. That Engineer recognizes that Idaho Power, in accordance with liarugiuph 12 of the Agieeitieiit, is relying on Engineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date 2/18/2()05 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 -37- APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE Thc. undersigned ____._..., on behalf of himself and _________ hereinafter collectively referred to as "Engineer," hereby states arid certifies to the Seller as follows: That Fnginetr is a I .icensncl Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement." between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as lPCo Facility No. and hereinafter referred to as the "Project". 4.That the Project, which is commonly known as I'iujecl, o, located at 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operal ion of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. . That Engineer has made it physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy: that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the -38- 2/181200-' Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 4 remaining years of the Agreement. That Iingmeer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreenient, is relying on tmgineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (l'.E. Stamp) Date -39- 2118/2(X)3 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 APPENDIX C ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned ......, on behalf of himself and hereinafter collectively referred to as "Engineer', hereby states and certifies to Idaho Power as follows: That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter "Agreement', between Idaho Power as }3uyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No and is hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Project, is located in Section _______,Township Range, Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a,___ (_._.__.__) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of th same type as this Project 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 8.That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. -40- 2/1912005 Exhibit 2105 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 41 9.That the Protect has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of' the Agreement and wlth l'iudent Electrical Practices for a year period. II. That Engineer recognizes that Idaho Power, in accordance with paragraph .2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. (P.13. Stamp) Date 21)5/2005 Exhibit 2105 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 -41- ocI4 FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND PILGRIM STAGE STATION WIND PARK L.L.C. TABLE OF CONTENTS Article TITLE Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy 5 Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection to Disconnection Equipment II Metering and Telemetry 12 Records 13 Protection 14 Operations IS Indemnification and Insurance 16 Force Majeure 17 Land Rights 18 Liability; Dedication 19 Several Obligations 20 Waiver 21 Choice of Laws and Venue 22 Disputes and Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modification 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire i\glecineni Signitw e' Appendix A Appendix B Appendix C 2/I Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Pagel 4 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) PILGRiM STAGE STATIONWINI) PARIck.L.C. Project Number: 31315045 THIS AGREEMENT, entered into on this of February 2005 between PILGRIM STAGE STATION WIND PARK L.L.C. (Seller), and IDAI-10 POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." WITNESSETH: WHEREAS, Seller wilt design, construct, own, maintain and operate an electric generation faci lit)'; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: .1 "Commission" The Idaho Public Utilities Commission. 1.2 "Contract - The period commencing each calendar year on the same calendar date its the Operation Date and ending 364 clays throafter. 1.3 - Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.4 "Dsconnectin_Eqpmeni" All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix 13. 1.5 "Facility" That electric generation facility described in Appendix B of this Agreement. - I- 2/120005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 1.6 "First Energy Date .. The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. I .7Generatiolnterconecuon_Pess" -- Idaho Power's generation interconnection application and engineering review process developed to ensure a safe and reliable generation interconilectron in compliance with all applir'ahle regulatory requirements. Prudent Electrical Practices and national safety standards. 1.8 "Inadvertent_ Energy" .- Electric energy Seller does not intend 10 generate. Inadvertent energy is more particularly described in paragraph 7.3 of this Agreement. 1.9 "Interconnection Facilities" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.10 _111ifial itpihgiif.— The process by which Idaho Power confirms that under normal or average design conditions the l::acility will generate at no more than 10 average MW per month and is thcrel'ore eligible to he paid the published rates ill aceuidiiice %Vilh Curirruissiuri Order No. 29632. 1.11 "Losses" -The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result Of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix 13 of this Agreement. .12 'Mrket.Encrgy.Cost" -- Eighty-five percent (85%) of die weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (1)0w Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid- Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. .13 "Material Breach" - A Default (paragraph 22.2. 1) subject to paragraph 22.2.2. Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 1.14 "Maximum pgjtAmount" - The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. • 1.5 "Muterig Eouipmcnt' - All equipment specified in Schedule 72, the Generation interconnection Process, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter power flows between the Seller's electric generation plant and Idaho Power's system. 1.16 "Net Energy" - All of this electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent Energy. 1.17 "QjtLQijjte" --The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. j.i8 "Point of Deliveiy" -The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.19 "Fudent Electrical Practic es" - Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to Operate electric equipment lawfully, nfely, dependably, efficiently and economically. 1.20 -. The date specified in Appendix B when Seller anticipates achieving the Operation Date. 1.21 "ce.dj.e2 - Idaho Power's Tariff No WI, Schedule 72 or its successor schedules as approved by the Commission. 1.22 "isQ.g" The three periods identified in paragraph 6.2. I of this Agreement. 1.23 "Special Facilities" Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule. 72 or the Generation Interconnection Process required to safely interconnect the Seller's Facility to the Idaho Power system. 1.24 "Station _Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. -3- YJ 8/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 1,25 "Surplus Energy" - (1) Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system (luring the month which exceeds 110% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2. or (2) If the Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical System during the month is less than 90% of the monthly Net Energy Amount for the corresponding month specified in paragraph 62, then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.26 Total Cost of the Facility the total cost at structures, equipment and appurtenances. ARTICLE II: NO RELIANCE ON IDAHO POWER 2.1 - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined duit it is capable of' poi I'oi tiling liet eutidei and has Ito! tel led upot the advice, experience or expertise of Idaho Power in connection with the transactions contemplate(] by this Agreement. 2.2 Seller Independent Experts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE Ill: WARRANTIES 3.1 No Warranty by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specitications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Ly. Ll i fyigacUiiyStatus - Seller warrants that the Facility is a "Qualifying Facility," as that term -4- 21 8/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 is used and defined in 18 CFR §292.207. After initial qualification, Seller will take such steps as may he required to maintain the Facility's Qualifying Facility status during the term of this Agieeiiicnt and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 CFR 292.207. 4.1.2 Opinion of Counsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4.1. above are legally and validly issued, are held in the name of the Seller and, based on i rca:onnble independent review, counsel is of the opinion that Seller ic in substantial compliance with said permits as of the slate of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter will be governed by and shall he interpreted in accordance with the legal Opinion accord of the American Bar Association Section of Business Law (1991). 4.1 .3 iJ..IcJ)acity .Delermination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity Determination. Such data will include but not he limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. - 5.. 2/1812005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable tinic 4.1.4 - Submit an executed Engineer's Certification of Design & Construction Adequacy and an Engineer's Certification of Operations and Maintenance ((.)&M) Policy as described in Commission Order No 91600, i'lise ceili ficats will he in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.5 Insurance - Submit Wiittei) proof to Idaho Power of all insurance required in Article XV. 4.1.6 Interconnection Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed. 4. I.? WrittenAcceptance * Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be l)rov(Ie(l within it commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V: TERM AND OPERATION DATF 5.1 TenIn Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shall continue in full force and effect for it period of twenty (20) Contract Years from the Operation Date. 5.2 Operation Qzt1 -The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Powers satisfaction that the Facility is complete and able to provide energy in a consistent, reliable arid safe manner and has requested an -6- 21 812005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Operation Date in written form. ci) Seller has requested an Operation Date from Idaho Power in a written format. ) Seller has received written confirmation from Idaho Power ol the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power. 5.3 Seller's failure to achieve the Operation Date within ten (10) months ol' the Scheduled Operation Date will be an event of default. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivery and Acceptance of Net Encigy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also he delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 Nç_igegy_Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2. I Initial Year .Monthly Net EngiAmowits: Month kWh March 3,100,625 Season I April 2,689,296 May 2,501,984 July 1,910,208 August 1,78 1,958 Season 2 November 1,884,234 December 2,425.295 June 2,711,046 September 2,422,310 Season 3 October 2,621,565 January 1.923,853 February 2,559,792 -7- 2/1312005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 6.2.2 On going Monthly Net Energy Awg: - Seller shall initially provide Idaho Power with one year of' monthly generation estimates (Initial Year Monthly Net Energy Amounts) and beginning at the end of month nine and every three months thereafter provide Idaho Power with an additional three months of forward generation estimates. This information will be provided to Idaho Power by written notice in accordance with paragraph 28, 1, no later than 5:00 PM of the 5th day following the end of the previous month. If the Seller does not provide the Ongoing Monthly Net Energy amounts in it timely manner, Idaho Power will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy amounts. 6.2.3 - 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance with paragraph 28.1, the Seller may revise all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 3" month after the Operation Date and at the end of every third month thereafter: (I) the Seller 11jayrjot revise the immediate next three months of previously provided Net Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than 5:00 PM of the 5th day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts will be deemed to he an election of no change. 6.2.4 Idaho Power .Adiustment. cf.,NL.intrgy._AnioutiiA -. If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares it Suspension of Energy Deliveries as specified in paragraph 143.1 and the Seller's declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy -8- 2118/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with thc following: Where: NRA = Current Month's Net Energy Amount (Paragraph 6.2) SGU a.) if Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 this value will be equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. h.) If the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3. 1. this value will he the suni of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspension of Energy Deli vciie>. TGU = Sum of all of the individual generator ratings of the generation units at this Facility as specified in Appendix B of this agreement. RSFF - Actual hours the Facility's Net Energy deliveries were either reduced or suspended under paragraph 14.2.1 or 14.3.1 'I'll = Actual total hours in the current month I!1JL_. - Net Enera = NE-'A. ( ( X NRA ) Amount Ly This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific inuinh in which Idaho Powci was excused flow accepting the Seller's Net Energy or the Seller declared a Suspension of Energy. 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. - 9- 2/ I Sf2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 ARTICLE VII: PURCHASE PRICE ANI) METHOD OF PAYMENT 7.1 Net EnergyPurchase Price For all Net Energy, Idaho Power will pay the non-levelized energy 1)iicc in occordancc with Commission Order 29646 with soasonalization factors applied: Season I - (73.50%) Season 2 - (120.00%) Season 3 - (100.00%) Year Mills/kWh Mills/kWh Mills/kWh 2005 37.00 60.41 50.34 2006 37.85 61.80 51.50 2007 38.73 63.23 52.69 2008 39.62 64.68 53.90 2009 4053 6617 5514 2010 41.46 67.69 56.41 2011 42.42 69.25 57.71 2012 43.30 70.85 69.04 2013 44.39 72.48 60.40 2014 45.42 74.16 61.80 201 b 4 6 41 75.86 63.22 2016 47.54 77.62 64.68 2017 48.63 79.40 66.17 2018 49.76 81.24 67.70 2019 50.91 83.11 69.26 2020 52.07 85.02 70.85 2021 53.28 86.99 72.49 2022 54.51 88.99 74.16 2023 55.76 91.04 75.87 2024 57.05 93.14 77.62 2025 58.37 95.29 79.41 2U2b b9.12 97.50 81.25 7.2 So. plus EgergyPjjce - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.1 whichever is lower. 7.3 Inadvertent_Energy 7.3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was delivered. (For example January contains 744 hours. 744 times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be Inadvertent - 10- 2/ 5/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Energy.) 7.3.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 1jayment,_Due Date - Energy payments to the Seller will be dishursed within 10 (lays of iho dait' which Idaho Power receives and accepts the documentation of the monthly Net Energy and Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A. 7.5ConfinuinR Jurisdiction of the Commission —This Agreement is it special contract and, as such, the rates, terms and conditions contained in this Agreement will he construed in accordance with Idaho Power jgyv. Idahojtth!ic Utilities Commission_andt9. 107 Idaho 781, 693 P.2d 427 (1984); Idaho Power Company v. IdahoPublic Utilities Commi.ssion, 107 Idaho 1122,695 1'.2d I 261 (1985); Afton Energy. Inc. v. Idaho Pow .erConipany, Ill Idaho 923, 729 P.2d 400 (1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR §292.303-308. ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to. Green Tags, Green Certificates, Renewable Energy Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the production of energy from the Seller's Facility. ARTICLE IX: FACILITY AND INTERCONNECTION 9.1 Design of Facility - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Deliveiy for the full - I I- 2/18/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 term of the Agreement. 9.2 Interconnection Fes - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in aecordanoe with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as spcil itd in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by 1dho Power for equipment costs, installation costs and Ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X: DISCONNECTION FOUllM 10.1 Except as specifically provided for in this Agreement, the required Disconnection Equipment will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment Costs, iin,tallatiuu costs anal Iiluliu Puwei ongoing iiiuntlity opel atiuiis and monthly maintenance expenses. ARTICLE Xl: METERING AND TELEMETRY 11.1 ieñng and Telemetry Idaho Power shall, for the account of Seller, provide, install, and maintain Metering Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with Schedule 72, Generation Interconnection Process and Appendix B of this Agreement. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. All Metering Equipment and installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting and testing such equipment at reasonable intervals at Idaho Powers actual cost of providing this - 12- 7/18/200.5 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Metering Equipment and services. The Metering Equipment shall be at the location described in Appendix B of this Agreement. All meters used to determine the billing hereunder shall be scaled and the seals shall be broken only by Idaho Power when the meters arc to be inspected, tested or adjusted. 11 .2 MeterjpggjQg - Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed ac specified in Appendix B of this Agreement. if requested by Seller, Idaho Power shall make it special inspection or test ol a meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall be notified of the time when any inspection or test shall take place, and each Party may have representatives present at the test or inspection. 111'a meter is found to be inaccurate or defective, it shall be adjusted, repaired or replaced, at Idaho Power's expense in order to provide accurate metering. If a meter fails to register, or if the measurement made by a meter during a test varies by more than two percent (2 %) from the measurement made by the standard meter used in the test, adjustment (either upward or downward) to the paynients Seller has recel veil shall be iriatic to correct those payments affected by the inaccurate meter for the actual period during which inaccurate measurements were made. If the actual period cannot be determined, corrections to the payments will be based on the shorter of (I) a period equal to one-half the time from the date of the last previous test of the meter to the date of the test which established the inaccuracy of the meter; or (2) six (6) months. 11.3 Tsdemiry - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will he capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Powers Designated Dispatch Facility. ARlIULE X I - RhCOI(l)S 12.1 Maintenance ofRecords - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy - 13- 21151201)5 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 and maximum generation (kW) records in it form and content recommended by Idaho Power. 12.2 Inspection - Either Party, after reasonable notice to the oilier Party, shall have the right, during normal t)usiI)c55 how, to inspect and audit any or all generation, Net Energy, Station Usc, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. ARTICI .F. Xiii -PROTP.CTW)N 13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix B of this Agreement, Prudent Electrical Practices, the National Electrical Code, the National Electrical Safety Code and any other applicable local, stale and federal codes. Seller acknowledges receipt of the Generation Interconnection Process. If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is iinsalè or may otherwise adversely aflèct Idaho Power's equipment., personnel or service to its customers, Idaho Power may physically interrupt the now of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such interruption prior to its occurrence a provided in paragraph 14.9. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. ARTICLE XIV - OPERATIONS 14.1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho lowers Designated Dispatch l-aciliLy in accordance with Appendix A of this Agreement. 14.2 Elleray. Acceptance — - 14- 21 5/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 14.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Mojeute, or if Idaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance requirements, emergencies, electrical system oporatiiig conditions on its system or as otherwise required by Prudent Electrical Practices, If, for reasons other than an event of Force Majeure, Idaho Power requires such it curtailment, interruption or reduction of Net Energy deliveries for a period that exceeds twenty (20) (lays, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro ram daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 14.2.2 Ii, in the reasonable opinion of Idaho Power, Sellet s upetatiuti of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Powers equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 14.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 14.3 Seller _Declared Su spension of Energy Deliveries 14-3.1 If the Seller's Facility experiences a forced outage due to equipment failure which is not caused by an event of Iorce Mateure or by neglect, disrepair or lack or adequate preventative maintenance of the Seller's Facility, Seller may, after giving notice as provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy to 2118/2005 Exhibit Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power from the Facility or from individual generation unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours to correct the forced outage condition ("Declared SuS1)oflaiOn of Energy I)etivorie"). The Soller'a Declared Suspension of Energy Deliveries will begin at the start of the next full hour following the Seller's telephone notification as specified in paragraph 14.3.2 and will continue for the time s specified (not less than 48 hours) in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net Energy Amount will be adusted as specified in paragraph 6.2A. 14.3.2 If the Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in paragraph 14.3.1, the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveries will he at the earliest the next lull hour after making telephone contact with Idaho Power. The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Ai tide XXVIII that will contain the Liegiaiiiiig huw and dui at iui i ut' tIc Declared Suspension of Energy Deliveries and it description of the conditions that caused the Seller to initiate a Declared Suspension of Energy Deliveries, Idaho Power will review the documentation provided by the Seller to determine Idaho Poxver'g acceptance of' the described forced outage as qualifying for a Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's forced outage as an acceptable forced outage will be based upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 14.5 Voltage Levels - Seller, in accordance with Prudent Electrical Practices shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (I 80) (lays' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as 16- 2/1812005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 necessary to accommodate the modified nominal operating voltage level. 14.6 Generator Rampinc - Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or following reconnection to Idaho Power's electrical system. Generation ramping may be required to permit IclaIm Power's voltage regulation equipment time to respond to changes in power flow. 14.7 Scheduled Maintenance - On or bel'nre .laiuiaiy I cif eieh calendar year, Seller shall mhniit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur itiiuhIiuieuusly. 14.9 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XV: INDEMNIFICATION AND INSURANCE 15.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death 0t person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or maintenance of, or by failure of, any of such Party's works or facilities used in connection with - 17- 2/i 8/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 this Agreement. The indemnifying Party shall, 01) the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney fccs that may be incurred by the other Party in enforcing this indemnity. 15.2 Insurance During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15,2.1 Comprehensive General Liability Tnsuranee for both bodily injury and property d;iinge with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall he consistent with current Insurance Industry Utility practices for similar property. 15,2.2 The above insurance coverage shall he placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall riot be cuucled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 15.3 Seller to Provide Certificate of_Insurance - As required in paragraph 4.1.5 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 15.4 Sell er to N Fy Idaho Power of Loss .. Covent go - If the insurance coverage required by paragraph 15.2 shall lapse for any reason. Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the Steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute a Material Breach of this Agreement. ARTICLE XVI. FORCE MAJLURI 16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, - 18- 2/15/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, Hood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, cait]iquakc, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to parform its oblig linus iindnr this Agreement because of an event of Force Majeiire, both Parties shall he excused from whatever performance is affected by the event of Force Majeure, provided that: I) The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the .suspension of performance and which could and should have been fully performed before such occurrence shall be excused its aresult of such occurrence. ARTICLE XVII: LAND RIGHTS 17.1 SjLeu...Eruyi..Access - Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such casements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. - 19- 2118/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 17.2 Use of Public igjLspf-Way - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being con5t ructcd in close proximity. Therefore, subject 1.0 Idaho Power's comp i ianco with paragraph 17.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right, to erect, construct and maintain Seller-furnished Interconnection I-aci Iii ies upon along and over any and all public roads, sI reels and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint of Facilities - Subject to Idaho Power's compliance with paragraph 17.4, Idaho Power may use and attach its distribution and/or transmission facilities 10 Seller's interconnection Facilities, may reconstruel Seller's Iritereumujeutiumi Fuuilities to siccunmurudate Iduimi., l'uwcr's usage or Idaho Power may construct its own distribution or transmission facilities alone, over and above any public right-of-way acquired from Seller pursuant to paragraph 17.2, attaching Seller's Interconnection Facilities to such newly constructed facilities. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights tinder this paragraph 17.3. 17.4 Conditions of Use - H is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Article XVII. Tlierelre, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and tights-of-way. If the Parties are unable to agree on the method of apportioning these costs, the dispute will he submitted to the Commission for resolution and the decision of the Commission will he binding on the Parties, and (3) shall -20- 2118P20(13 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XVII. ARTICLE XVIII: LIABILITY: DEDICATION 18.1 Nothing in this Agreement shall be construed to create any duty to, any standard ci care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XIX: SEVERAL OBLIGATIONS 19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever he construed to create an association, trust, partnership Orioint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. ARTICLE XX: WAIVER 20.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any ether matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent defiiu It or other matter. ARTICLE XXI: CHOICE OF LAWS AND VENUE 21.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada. - 21- 2/I 8/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 ARTICLE XXJI: DISPUTES AND DEFAULT 22.1 Diputca - All disputes rclatcd to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission Ibr resolution. 22.2 Notice ci Default - 22.2. I Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in writing to he given to the defaulting Party, specifying the manner in which such deliuli occurred. lithe defaulting Party shall fail to cure such default within the sixty (60) clays after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) clay period and then fails to diligently pursue such cure, ttieii, the itotidefaulti hg Patty may, at its option, teu itiatc this Agreement and/or pursue its legal or equitable remedies. 22.2.2 MaterialBjicjies . The notice and cure provisions in paragraph 22.2.1 do not apply to (lef niilt identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 22.3ciiijyfo...........- Prior to the Operation Date and thereafter for the fall term of this Agreement. Seller will provide Idaho Power with the following: 22.3.1 Insurance - Evidence of compliance with the provisions of paragraph 15.2. If Seller fails to comply, such failure will be a Material Breach and may n-1-y be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 223.2 jitneer's_CertiFications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0 & M) from a Registered Professional Engineer licensed in the State of Idaho, which 22- 2/i 8/2(5)5 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only he cured by Seller providing the required certificate; and 22.3.3 Licenses an d Permits - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1 .1 of this Agnienr. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year. Seller will update the documentation described in Paragraph 4.1.1. if at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4. 1.1 or to provide the documentation required by this paragraph, such failure will he an event of default and may be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. AUTHORIZATION 23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agieenient. AR'I'1C).j: XXIV: (X)MMISSION ORDER 24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all Payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking put -poses. ARTICLE XXV: SUCCESSORS AND ASSIGNS 25,1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benetit ot the respective successors and assigns of the Parties hereto, except that no assignnient hereof by either Party shall become effective without the wrilten consent ofbodl Parties being first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, -23- MUNI= Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without aced of consent or approval by the Seller, ueeced to all of ldho Power's rights, obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or conhi-ael Idaho Power shall hav the right In ha notified by the financing entity that it is exercising such rights or remedies. ARTICLE XXVI: MODIFICATION 26.1 No modification to this Agreement shall he valid unless it is in writing and signed by both Parties and subsequently approved by the Commission ARTICLE XXV1I: TAXES 27.1 Each Party shall pay before delinquency all taxes and oilier governmental charges which, if failed to be paid when clue, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLEXXVIII: NOTICES 28.1 All written notices under this agreement shall be directed as follows and shall be considered delivered when deposited in the U. S. Mail, first-class postage Prepaid, as follows: To Seller: Pilgrim Stage Station Wind Park, L.L.C. Attn: Larry Leib 1424 Dodge Ave Helena, MT 59601 - 24- 2/18/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 To Idaho Power: riwenUci Vice Piesident, Power 81Pi1y Idaho Power Company P Box 70 Boise. Idaho 83707 Cor,v of document to: Cogeneration and Small Power Production Idaho Power Company P 0 Box 70 Boise, Idaho 83707 ARTICLE XXIX; ADDITIONAL TERMS AND CONDITIONS 29.1 This Agreement includes the following appendices, which arc attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications ARTICLE XXX: SEVERABILITY I Thn, invalidity or unenlorceahility 01 any term or provision of this Agreement shall not affect the validity or entorceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXXI; COUNTERPARTS 31.1 This Agreement may be executed in two or more counterparts, each of which shall he deemed an original but all of which together shall constitute one and the sam m mnt e strue. ARTICLE XXXII: ENTIRE AGREEMENT 32.1 This Agreement constitutes the entire Agreement of (he Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the 25- 2/) 8/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 Parties concerning the subject matter hereof. IN WITNl:SS WJ-IHREOP. The Parties hereto have caused this Agreement to he executed in ih&r ri.'eclive names on the dnte et fni'th hInw Idaho Pr Compy Pilarim Sta $tpn Wind Park L C By / "T i_ By N Vern Porter M,..t Power Supply Dper illon, inics (_ ii kults '_.. Dated Dated i , "Idaho Power" "Seller" -26- 2/1 5/2005 Exhibit 2106 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 27 APPENDIX A A - MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will he the reading on the Idaho Power Meter bqnipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. MIA 2/18/2003 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 28 Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING RE POR'r Month Year Project Name Project Number: Address Phone Number: City State Zip Facility S'tnthm Station Metcied Output j'e Qe Maximum (;enrrsliim Meter Number: End of Month kWh Meter Reading: kW Beginning of Month kWh Meter: Difference: Times Meter Constant: Net Generation kWh for the Month: - = Metered Demand: Breaker Opening Record Breaker Closing Record LIffItI ............... t L'I Breaker Opening Reason Codes I Lack of Adequate Prime Mover 2 Forced Outage of Facility I hereby certify that the above meter readings are 3 Disturbance of IPCo System true and correct as of Midnight on the last day of the 4 Scheduled Maintenance above month and that the switching record is accuratc and complete as required by the Firm Energy Sales 5 Testing of Protection System.s Agreement to which I am a Party. 6 Cause Unknown 7 Other (Explain) Signature Date -28- 2/1812005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 Date Time Meter - — -------- - -- --- ------ A-2 ROUTINE REPORTING Idaho Power Contact Information tEncigy Production Rcportirg Call daily by 10 am., 10:48 or 1-800-635 -1093 and leave the following Information: • Project Identification - Project Name and Project Number • current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unmned Project on tags (';tll I -0-145- 111 () and leave the, following infnnmition: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of l)riecI coming back online Seller's Contact Information 24-Hour Name: Telephone Number: Cell Phone: !~~qjpqt On-site Contact information Telephone Number: 2/ 5I2OO Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 -29- APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31315045 PILGRIM STAGE STATION WIND PARK 13-I DESCRIPTION OF FACILITY The Facility will consist of 7 GE Wind turbines model 77 SLE with individual generator ratings of 1.5 MW for each unit, for a total Facility generator rating of 10.5 MW. B-2 LOCATION OF FACILITY Ncur Hagerman, Idaho Sections: t9,24J Township:7S Range: l2E County: Twin Falls Idaho. 13-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected Decenther3LQ5 as the estimated Scheduled First Energy Date. Seller has selected Janu as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior 10 the project being granted an Operation Date. Idaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 72 and the Generation Interconnection Process. 13-4 MAXIMUM CAPACITY AMOUNT: This value will be 10.5 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection Process. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. 30- 2123/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 13-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. Thc Idaho Power Generation Interconnection process will determine the specific Point of Delivery for this Facility. Upon completion of the Generation Interconnection process the Point of Delivery identified by this Process will become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will he established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss speciticatioiia, conductor :ize. etc) of all of the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at anytime during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. 13-7 METERING AND TELEMETRY The Idaho Power Generation Interconnection process will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry -31- 2/i 8I2OO Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications Will include but itot be liMitud to equipit lent sped l'ications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment Specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, With total Cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule J•2 and the total metering cost will be tncluded in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. 13-7 SP1C1AL rAcIu'I'1Es The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not he limited to equipment specifications, equipment location. Idaho Power provided equipment. Seller provided equipment. and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to he reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Special Facility cost will he included in the calculation of the Monthly Operation and 32- 2/111/2005 Exhibit 2106 GNR-E-11--03 R. Guy: Idaho Wind Partners I, LLC Page 33 Maintenance Charges specified in Schedule 72. B-S REACTIVEA-10 WER The Idaho Power Generation Interconnection process will determine the reactive power required to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The Geneintion Interconnection process will specify the equipment required on the Idaho Power system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but nor limited to the equipment speil'ications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, Operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power Cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. 13-9 DISCONNECTION EQUIPMENT Disconnection Equipment is required to insure that the Seller's Facility will be disconnected from Idaho Powci a system ill the evejit of (I) the Sellers delivery of energy exceeds the Moxinum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's Facility. The Idaho Power Generation Interconnection process will determine the Disconnection Equipment specifications and requirements for this Facility, this equipment is for protection of the Idaho Power system and equipment only. These specifications will include but not he limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller -33- 211 5/2(5)5 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire and conduit necessary for the operation of the Disconnection Equipment. Through the Generation Interconnection process, Idaho Power will supply details for the disconnection panel and will test the equipment prior to any operations of the Facility, Seller will provide drawings of their interconnection wiring for rngiI1eering approval prior to installation. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to he reimbursed to Idaho Power by the Seller. Payment of these costs will he in accordance with Schedule 72 and the total Disconnection Equipment cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. 13-10 COSTS The Idaho Power Generation Interconnection process and this Agreement will identify all cost for this Eneil ily In interconnect to the Idaho Power symcm, including but not limited to the cut of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection equipment, Protection equipment and Interconnection Equipment. As specified in the Generation Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, installation and construction charges as specified above, during the term of this Agreement, Seller will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following the date which Idaho Power has completed installation of the Idaho Power provided equipment and the interconnection equipment is available for use by the Facility. The monthly operations and maintenance charge will be based upon the initial cost paid -34- 21 18/ M-) M5 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will he adjusted to reflect the actual cost ineut ied by Idaho Puwci and pteviously charged monthly operation and maintenance expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adjusted monthly operations and maintenance charge within sixty (60) days of the determination of this amount. B-Il SALVAGE No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished Interconnection Facilities as required under Schedule 72, the Generation lnterconncction Process and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities will he removed. El Seller elects not to Obtain ownership of the Interconnection Faculties but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) duya after receipt of the invoice. Seller shalt have the right to offset the invoice amount against any present or future payments due Idaho Power. -35- 2118/1-005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 APPENDIX C ENGINEERS CERTIFiCATION OF OPERATIONS & MAINTENANCE POLICY The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.Thai Engineer has reviewed the Energy Sales Agreement, hereinafter 'Agreement,' between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPUo Facility No. and is hereinafter referred to as the "Project.' 4 That the PiotuA which is commonly known as the Project, i located in SectIon I own hip - Range -, Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy In Idaho Power fora tweilly (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the 36- 2/I 5/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 Project's producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. 9.That Iingtnccr recognizes that Idaho Power, in accordance with paragraph 5,2 of the Agreement, is relying on Engineer's representations and opinions conttine<l in this Statement. 10.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and thprp.fnn' sets his hand and seal helnw. By (I'.E. Stamp) Date 2/IS/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 -37- APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: That Engineer is it Licensed Professional Engineer in good standing in the State of Idaho. 2.Thai Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and _. as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. _______________ and hereinafter referred to as the "Project". 4.Thai the Project, which is commonly known as Project, is located at 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power fora twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the -38- 2/ 1 8/2m5 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 k. remaining years of the Agreement. 9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Cngincci's representations and opinions contained in this Statcnicnt. JO, That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date - 39- 18/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 APPENDIX C EN(ilNIER'S CERTIFICATION )l DESIGN & CONSTRUCTION ADEQUACY The undersigned , on behalf of himself and hereinafter collectively referred to as Engineer, hereby states tad certifies to Idaho Power as follows: That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter "Agreement", between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or sn)afl power production project which is the subject of the Agreement and this Stalement is identified as IPCo Facility No and is hereinafter referred to as the 'Project. 4.That the Project, which is cornnionly known as the Project, is located in Section _______'Township Range Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a _____________ L....) year period. 6.That l:ngineer has substantial experience in the design, construction and operation of electric lower plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 8.That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. -40- 2/ 1312005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 9.That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudeni Electrical Practices for a __________ (___) year period. II That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineers representations and Oj)ifliol)S contained in this Statement. 12, That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. (P.E. Stamp) Date 2/18/2005 Exhibit 2106 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 -4!- rrj E0 FIRM ENERGY SALES AGREEMENT ::cfl BETWEEN 20 M t: 53 IDAHO POWER COMPANY PUBLIC AND r LCVr1SSO SALMON FALLS WIND PARK LLC TABLE OF CONTENTS Article TITLE Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy 5 Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection 10 Disconnection Equipment 11 Metering and Telemetry 12 Records 13 Protection 14 Operations 15 Indemnification and Insurance 16 Force Majeure 17 Land Rights 18 Liability; Dedication 19 Several Obligations 20 Waiver 21 Choice of Laws and Venue 22 Disputes and Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modification 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire Agreement Signatures Appendix A Appendix B Appendix C IcWlO/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) SALMON FALLS WIND PARK LLC Project Number: 31618100 THIS AGREEMENT, entered into on this /_3 day of (Y C+ 2005 between SALMON FALLS WIND PARK, an Idaho limited liability company (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." WITNESSETH: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: 1.1 "Commission" - The Idaho Public Utilities Commission. 1.2 "Contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. 1.3 "Designated Dispatch Facility" - Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.4 "Disconnection Equipment" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.5 "Facility" - That electric generation facility described in Appendix B of this Agreement. - 1- 10110/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 1.6 'First Energy Date" - The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 1.7 "Generation Interconnection Process" - Idaho Power's generation interconnection application and engineering review process developed to ensure a safe and reliable generation interconnection in compliance with all applicable regulatory requirements, Prudent Electrical Practices and national safety standards. 1.8 "Inadvertent Energy" - Electric energy Seller does not intend to generate. Inadvertent energy is more particularly described in paragraph 7.3 of this Agreement. 1.9 "Interconnection Facilities" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.10 "Initial Capacity Determination" - The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 1.11 "Losses" - The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement. 1.12 "Market Energy Cost" - Eighty-five percent (85%) of the weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid- Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.13 "Material Breach" - A Default (paragraph 22.2.1) subject to paragraph 22.2.2. -2- 10110/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 1.14 "Maximum Capacity Amount" - The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.15 "Metering Equipment" - All equipment specified in Schedule 72, the Generation Interconnection Process, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter power flows between the Seller's electric generation plant and Idaho Power's system. 1.16 "Net Energy" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent Energy. 1.17 "Operation Date" —The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.18 "Point of Delivery" - The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.19 "Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, • safely, dependably, efficiently and economically. • 1.20 "Scheduled Operation Date" - The date specified in Appendix B when Seller anticipates achieving the Operation Date. 1.21 "Schedule 72"— Idaho Power's Tariff No 101, Schedule 72 or its successor schedules as approved by the Commission. • 1.22 "Season" - The three periods identified in paragraph 6.2.1 of this Agreement. 1.23 "Special Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule 72 or the Generation Interconnection Process required to safely interconnect the Seller's Facility to the Idaho Power system. 1.24 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. -3- 10110/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 1.25 "Surplus Energy" - (1) Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month which exceeds 110% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2. or (2) If the Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month is less than 90% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.26 "Total Cost of the Facility" - The total cost of structures, equipment and appurtenances. ARTICLE II: NO RELIANCE ON IDAHO POWER 2.1 Seller Independent Investigation - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined that it is capable of performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent Experts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE ifi: WARRANTIES 3.1 No Warranty by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qualifying Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term -4- 10110/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 is used and defined in 18 CFR §292.207. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 CFR 292.207. 4.1.2 Opinion of Counsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4.1.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter will be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1.3 Initial Capacity Determination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. -5- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.4 Engineer's Certifications - Submit an executed Engineer's Certification of Design & Construction Adequacy and an Engineer's Certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.5 Insurance - Submit written proof to Idaho Power of all insurance required in Article XV. 4.1.6 Interconnection— Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed. 4.1.7 Written Acceptance - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V: TERM AND OPERATION DATE 5.1 Tenn - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shall continue in full force and effect for a period of twenty (20) Contract Years from the Operation Date. 5.2 Operation Date - The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and safe manner and has requested an -6- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Operation Date in written form. d)Seller has requested an Operation Date from Idaho Power in a written format. e)Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power. 5.3 Seller's failure to achieve the Operation Date within ten (10) months of the Scheduled Operation Date will be an event of default. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivery and Acceptance of Net Energy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2.1 Initial Year Monthly Net Energy Amounts: Month kWh March 5,447,744 Season 1 April 5,565,060 May 5,027,172 July 4,065,190 August 3,772,578 Season 2 November 4,041,053 December 5,330,750 June 4,700,332 September 4,470,040 Season 3 October 4,757,415 January 4,203,187 February 3,436,421 -7 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 6.2.2 Ongoing Monthly Net Energy Amounts - Seller shall initially provide Idaho Power with one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts) I and beginning at the end of month nine and every three months thereafter provide Idaho Power with an additional three months of forward generation estimates. This information will be provided to Idaho Power by written notice in accordance with paragraph 28. 1, no later than 5:00 PM of the 5" day following the end of the previous month. If the Seller does not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy amounts. 6.2.3 Seller's Adjustment of Net Energy Amount - 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance with paragraph 28.1, the Seller may revise all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 3d month after the Operation Date and at the end of every third month thereafter: (1) the Seller may not revise the immediate next three months of previously provided Net Energy Amounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than 5:00 PM of the 5th day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts will be deemed to be an election of no change. 6.2.4 Idaho Power Adjustment of Net Energy Amount - If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 and the Seller's declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy -8- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with the following: Where: NEA = Current Month's Net Energy Amount (Paragraph 6.2) SGU = a.) If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14,2.1 this value will be equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. • b.) If the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 this value will be the sum of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspension of Energy Deliveries. TGU = Sum of all of the individual generator ratings of the generation units at this Facility as specified in Appendix B of this agreement. RSH = Actual hours the Facility's Net Energy deliveries were either reduced or suspended under paragraph 14.2.1 or 14.3.1 TH = Actual total hours in the current month Resultine formula beine: Adjusted x NEA x RH ) ) SQU Net Energy = NEA - / ( \ TGU / ( . TI-1 This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific month in which Idaho Power was excused from accepting the Seller's Net Energy or the Seller declared a Suspension of Energy. 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. - 9- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Net Energy Purchase Price - For all Net Energy, Idaho Power will pay the non-levelized energy price in accordance with Commission Order 29646 with seasonalization factors applied: Season 1 - (73.50%) Season 2 - (120.00 %) Season 3 - (100.00 %) Year Mills/kWh Mills/kWh Mills/kWh 2005 37.00 60.41 50.34 2006 37.85 61.80 51.50 2007 38.73 63.23 52.69 2008 39.62 64.68 53.90 2009 40.53 66.17 55.14 2010 41.46 67.69 56.41 2011 42.42 69.25 57.71 2012 43.39 70.85 59.04 2013 44.39 72.48 60.40 2014 45.42 74.16 61.80 2015 46.47 75.86 63.22 2016 47.54 77.62 64.68 2017 48.63 79.40 66.17 2018 49.76 81.24 67.70 2019 50.91 83.11 69.26 2020 52.07 85.02 70.85 2021 53.28 56.99 72.49 2022 54.51 88.99 74.16 2023 55.76 91.04 75.87 2024 57.05 93.14 77.62 2025 58.37 95.29 79.41 2026 59.72 97.50 81.25 7.2 Surolus Energy Price - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7. 1, whichever is lower. 7.3 Inadvertent Energy - 7.3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was delivered. (For example January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be - 10- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Inadvertent Energy.) 7.3.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 Payment Due Date - Energy payments to the Seller will be disbursed within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy and Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A. 7.5 Continuing Jurisdiction of the Commission —This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power Company v. Idaho Public Utilities Commission and Afton Energy, Inc., 107 Idaho 781, 693 P.2d 427 (1984); Idaho Power Company v. Idaho Public Utilities Commission, 107 Idaho 1122, 695 P.2d 1 261 (1985); Afton Energy, Inc. v. Idaho Power Company, 111 Idaho 925, 729 P.2d 400 (1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR §292.303-308. ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits (RECs) and Tradable Renewable Certificates (TRC5) directly associated with the production of energy from the Seller's Facility. ARTICLE IX: FACILITY AND INTERCONNECTION 9.1 Design of Facility - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full - 11- 10/1012005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X: DISCONNECTION EOUIPMENT 10.1 Except as specifically provided for in this Agreement, the required Disconnection Equipment will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operations and monthly maintenance expenses. ARTICLE XI: METERING AND TELEMETRY 11.1 Metering and Telemetry - Idaho Power shall, for the account of Seller, provide, install, and maintain Metering Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with Schedule 72, Generation Interconnection Process and Appendix B of this Agreement. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station • Use, Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this • Facility's energy production into the Idaho Power electrical system. All Metering Equipment and installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting and testing such equipment at reasonable intervals at Idaho Power's actual cost of providing this -12- io/ion.ow Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Metering Equipment and services. The Metering Equipment shall be at the location described in Appendix B of this Agreement. All meters used to determine the billing hereunder shall be sealed and the seals shall be broken only by Idaho Power when the meters are to be inspected, tested or adjusted. 11.2 Meter Inspection - Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed as specified in Appendix B of this Agreement. If requested by Seller, Idaho Power shall make a special inspection or test of a meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall be notified of the time when any inspection or test shall take place, and each Party may have representatives present at the test or inspection. If a meter is found to be inaccurate or defective, it shall be adjusted, repaired or replaced, at Idaho Power's expense in order to provide accurate metering. If a meter fails to register, or if the measurement made by a meter during a test varies by more than two percent (2 %) from the measurement made by the standard meter used in the test, adjustment (either upward or downward) to the payments Seller has received shall be made to correct those payments affected by the inaccurate meter for the actual period during which inaccurate measurements were made. If the actual period cannot be determined, corrections to the payments will be based on the shorter of (1) a period equal to one-half the time from the date of the last previous test of the meter to the date of the test which established the inaccuracy of the meter; or (2) six (6) months. 11.3 Telemetry - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility. ARTICLE XII - RECORDS 12.1 Maintenance of Records - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy -13- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 and maximum generation (kW) records in a form and content recommended by Idaho Power. 12.2 Inspection - Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. ARTICLE Xffl - PROTECTION 13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix B of this Agreement, Prudent Electrical Practices, the National Electrical Code, the National Electrical Safety Code and any other applicable local, state and federal codes. Seller acknowledges receipt of the Generation Interconnection Process. If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such interruption prior to its occurrence as provided in paragraph 14.9. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. ARTICLE X1V - OPERATIONS 14.1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. - 14- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 14 .2 Energy Acceptance - 14.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeure, or if Idaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance requirements, emergencies, electrical system operating conditions on its system or as otherwise required by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure, Idaho Power requires such a curtailment, interruption or reduction of Net Energy deliveries for a period that exceeds twenty (20) days, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 14.2.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the flow of energy from the Facility as specified within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 14.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 14.3 Seller Declared Suspension of Energy Deliveries 14.3.1 If the Seller's Facility experiences a forced outage due to equipment failure which is not caused by an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility, Seller may, after giving notice as -15- 1011012005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy to Idaho Power from the Facility or from individual generation unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours to correct the forced outage condition ("Declared Suspension of Energy Deliveries"). The Seller's Declared Suspension of Energy Deliveries will begin at the start of the next full hour following the Seller's telephone notification as specified in paragraph 14.3.2 and will continue for the time as specified (not less than 48 hours) in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net Energy Amount will be adjusted as specified in paragraph 6.2.4. 14.3.2 If the Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in paragraph 14.3.1, the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveries will be at the earliest the next full hour after making telephone contact with Idaho Power. The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Article XXVIII that will contain the beginning hour and duration of the Declared Suspension of Energy Deliveries and a description of the conditions that caused the Seller to initiate a Declared Suspension of Energy Deliveries. Idaho Power will review the documentation provided by the Seller to determine Idaho Power's acceptance of the described forced outage as qualifying for a Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's forced outage as an acceptable forced outage will be based upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 14.5 Voltage Levels - Seller, in accordance with Prudent Electrical Practices shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of - 16- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 I Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 14.6 Generator Ramping - Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or following reconnection to Idaho Power's electrical system. Generation ramping may be required to permit Idaho Power's voltage regulation equipment time to respond to changes in power flow. 14.7 Scheduled Maintenance - On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 14.9 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XV: INDEMNIFICATION AND INSURANCE 15.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or - 17- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 maintenance of, or by failure of, any of such Party's works or facilities used in connection with this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 15.2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 15.2.2 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 15.3 Seller to Provide Certificate of Insurance - As required in paragraph 4.1.5 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 15.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by paragraph 15.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute a Material Breach of this Agreement. ARTICLE XVI. FORCE MAJEURE 16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause -18- 10/1 0/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XVH: LAND RIGHTS 17.1 Seller to Provide Access - Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to -19- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power's approval and in recordable form. 17.2 Use of Public Rights-of-Way - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with paragraph 17.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint Use of Facilities - Subject to Idaho Power's compliance with paragraph 17.4, Idaho Power may use and attach its distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to paragraph 17.2, attaching Seller's Interconnection Facilities to such newly constructed facilities. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.3. 17.4 Conditions of Use - It is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Article XVH. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method of apportioning these costs, the dispute will be submitted to the Commission for -20- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 resolution and the decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XVII. ARTICLE XVffl: LIABILITY; DEDICATION 18.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XIX: SEVERAL OBLIGATIONS • 19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this • Agreement. ARTICLE XX: WAIVER 20.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XXI: CHOICE OF LAWS AND VENUE 21.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of -21- 1011012005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 the Fourth Judicial District of Idaho in and for the County of Ada. ARTICLE XXII: DISPUTES AND DEFAULT 22.1 Disputes - All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. 22.2 Notice of Default - 22.2.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in • writing to be given to the defaulting Party, specifying the manner in which such • default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. • 22.2.2 Material Breaches - The notice and cure provisions in paragraph 22.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. • 22.3 Security for Performance - Prior to the Operation Date and thereafter for the full term of this Agreement, Seller will provide Idaho Power with the following: 22.3.1 Insurance - Evidence of compliance with the provisions of paragraph 15.2. If Seller fails to comply, such failure will be a Material Breach and may Qfliy be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 22.3.2 Engineer's Certifications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0 -22- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 & M) from a Registered Professional Engineer licensed in the State of Idaho, which Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and 22.3.3 Licenses and Permits - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4.1.1 or to provide the documentation required by this paragraph, such failure will be an event of default and may only be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XXffi: GOVERNMENTAL AUTHORIZATION 23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE XXIV: COMMISSION ORDER 24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXV: SUCCESSORS AND ASSIGNS 25.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without the written consent of both Parties being -23- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights, obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies. ARTICLE XXVI: MODIFICATION 26.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXVII: TAXES 27.1 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXVffl: NOTICES 28.1 All written notices under this agreement shall be directed as follows and shall be considered delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows: To Seller: Salmon Falls Wind Park, LLC Attn: James T. Carkulis 515 N 27th Street P.O. Box 7218 Boise, Idaho 83702 -24- 10/10/2005 Exhibit 2107 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 25 To Idaho Power: Original document to: Vice President, Power Supply Idaho Power Company P0 Box 70 Boise, Idaho 83707 Copy of document to: Cogeneration and Small Power Production Idaho Power Company P 0 Box 70 Boise, Idaho 83707 ARTICLE XXIX: ADDITIONAL TERMS AND CONDITIONS 29.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications ARTICLE XXX: SEVERABILITY 30.1 The invalidity or unenforceability of any term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXXI: COUNTERPARTS 31.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. ARTICLE XXXII: ENTIRE AGREEMENT 32.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter -25- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 hereof and supersedes all prior or contemporaneous oral or written agreements between the Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed in their respective names on the dates set forth below: • Idaho Power Company Salmon Falls Wind Park L.LC. By By UC. Miller, Sr. Vice President, Power Supply James T. Carkulis Dated Dated "Idaho Power" "Seller" -26- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 APPENDIX A A—i MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. -27- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 28 Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Name Project Number: Address Phone Number: City State Zip Facility Station Station Metered Outyu Usage Usage Maximum Generation Meter Number: End of Month kWh Meter Reading: kW Beginning of Month kWh Meter: Difference: Times Meter Constant: Net Generation7 kWh for the Month: - - Metered Demand: Breaker Opening Record Breaker Closing Record Date Time Meter Reason Date Time Meter * Breaker Opening Reason Codes I Lack of Adequate Prime Mover 2 Forced Outage of Facility I hereby certify that the above meter readings are 3 Disturbance of IPCo System true and correct as of Midnight on the last day of the above month and that the switching record is accurate 4 Scheduled Maintenance and complete as required by the Firm Energy Sales 5 Testing of Protection Systems Agreement to which I am a Party. 6 Cause Unknown 7 Other (Explain) Signature Date -28- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 A-2 ROUTINE REPORTING Idaho Power Contact Information Daily Energy Production Reporting Call daily by 10 a.m., 1-800-356-4328 or 1-800-635-1093 and leave the following information: • Project Identification - Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unplanned Project outages Call 1-800-345-1319 and leave the following information: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project corning back online Seller's Contact Information 24-Hour Project Operational Contact Name: Telephone Number: Cell Phone: Project On-site Contact information Telephone Number: 10110/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 -29- APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31618100 SALMON FALLS WIND PARK B-i DESCRIPTION OF FACILITY The Facility will consist of 14 Wind turbines; model GE SLE with individual generator ratings of 1.5 MW for each unit, for a total Facility generator rating of 21.0 MW. B-2 LOCATION OF FACILITY Near: Sections: 25,36 Township:TO8S Range: R12E County: TwinFalls Idaho. Sections: 30._31 Township: TO8S Range: R13E County:Twin Falls Idaho. B-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected November 1. 2006 as the estimated Scheduled First Energy Date. Seller has selected May 1. 2007 as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. Idaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 72 and the Generation Interconnection Process. B-4 MAXIMUM CAPACITY AMOUNT: This value will be 22.40 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection process. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. -30- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 B-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power Generation Interconnection process will determine the specific Point of Delivery for this Facility. Upon completion of the Generation Interconnection process the Point of Delivery identified by this process will become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at anytime during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. B-7 METERING AND TELEMETRY The Idaho Power Generation Interconnection process will determine the specific metering and -31- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-7 SPECIAL FACILITIES The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total -32- 10/1012005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 33 I Special Facility cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-8 REACTIVE POWER The Idaho Power Generation Interconnection process will determine the reactive power required to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The Generation Interconnection process will specify the equipment required on the Idaho Power system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-9 DISCONNECTION EQUIPMENT Disconnection Equipment is required to insure that the Seller's Facility will be disconnected from Idaho Power's system in the event of (I) the Sellers delivery of energy exceeds the Maximum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's Facility. The Idaho Power Generation Interconnection process will determine the Disconnection Equipment specifications and requirements for this Facility, this equipment is for protection of the Idaho Power system and equipment only. These specifications will include but not be limited -33- 10/1012005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire and conduit necessary for the operation of the Disconnection Equipment. Through the Generation Interconnection process, Idaho Power will supply details for the disconnection panel and will test the equipment prior to any operations of the Facility, Seller will provide drawings of their interconnection wiring for engineering approval prior to installation. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Disconnection Equipment cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-lU COSTS The Idaho Power Generation Interconnection process and this Agreement will identify all cost for this Facility to interconnect to the Idaho Power system, including but not limited to the cost of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection equipment, Protection equipment and Interconnection Equipment. As specified in the Generation Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, installation and construction charges as specified above, during the term of this Agreement, Seller will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following the date which Idaho Power has completed installation of the Idaho Power provided equipment and the interconnection equipment is available for use by the -34- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 Facility. The monthly operations and maintenance charge will be based upon the initial cost paid by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will be adjusted to reflect the actual cost incurred by Idaho Power and previously charged monthly operation and maintenance expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adjusted monthly operations and maintenance charge within sixty (60) days of the determination of this amount. B-il SALVAGE No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished interconnection Facilities as required under Schedule 72, the Generation Interconnection Process and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. -35- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned , on behalf of himself and hereinafter collectively referred to as 'Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and is hereinafter referred to as the "Project." 4.That the Project, which is commonly known as the is located in Section Township _______, Range ________, Boise Meridian, ____________ County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the 36 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 Project's producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 -37- APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho, 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. _____________ and hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Project, is located at 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the remaining years of the Agreement. -38- 10t1012005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date 10110/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 APPENDIX C ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer", hereby states and certifies to Idaho Power as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter "Agreement", between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project, which is the subject of the Agreement and this Statement, is identified as IPCo Facility No and is hereinafter referred to as the 'Project". 4.That the Project, which is commonly known as the Project, is located in Section ______, Township ______, Range ______, Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a (_) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 8.That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment -40- 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 Date -41- 41- 9.That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a _________(_) year period. 11.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. (P.E. Stamp) 10/10/2005 Exhibit 2107 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND THOUSAND SPRINGS WIND PARK L.L.C. TABLE OF CONTENTS Article TITLE Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy 5 Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection 10 Disconnection Equipment II Metering and Telemetry 12 Records 13 Protection 14 Operations Is Indemnification and Insurance 16 Force Majeure 17 Land Rights 18 Liability: Dedication 19 Several Obligations 20 Waiver 2! Choice of Laws and Venue 22 l)isputes and Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modi fiatinn 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire Agreement Signatures Appendix A Appendix B Appendix C 2/15/2055 Exhibit 2108 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (JO aMW or Less) THOUSAND SPRINGS WIND PARK L.L.C. Project Number: 31315055 'ri-us AGREEMENT, entered into on this ...j day ofb_njj 2005 between THOUSAND SPRINGS WIN[) PARK L.L.C. (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." WITNESSETFI: WI-IEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS. Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLE 1: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: I.! "Commission" - The Idaho Public Utilities Commission. 1.2 "ontragtYr" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 clays thereafter. 1.3 "Designated Dispatch FagjJit" - Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.4 "DhumdoiEujpzic" - All cyuinJieut ecifled in Schedule 72 cud the cleiieratiuu Interconnection Process and any additional equipment specified in Appendix B. 1.5"Fa.cjjjiy" - That electric generation facility described in Appendix B of this Agreement. JtS/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 1.6 "First Energy Date - The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Powers system at the Point of Detiveiy. 1.7 "Generation Interconnection Process" - Idaho Power's generation interconnection application and engineering review process developed to ensure a safe and reliable generation interconnection in compliance with all applicable regulatory requirements, Prudent Electrical Practices and national safety standards. 1.8 "Inadvertent Energy" Electric energy Seller does not intend to generate. Inadvertent energy is more particularly described in paragraph 7.3 of this Agreement. 1.9 °jnterconnecfacjljties" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.10 "Initial Capacity Determination" — The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 1.11 y.çç" -The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will he as specified in Appendix B of this Agreement. I 12 "Mrki'.I Rnry ft" - Eighty-five percent (85%) of the weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. if the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will isststtially agree upon a replacement index, which is similar to the Dow Jones Mid- Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.13 "Material Breach" -- A Default (paragraph 22.2. 1) subject to paragraph 22.2.2, -2- 2/i 5/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 1.14 "Maximum Canacitv Amount" - The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.15 "Mererinjjtinient" -All equipineiit specified in Schedule 72, tIre Geiresatiori IuLeicuiiriectiuri Process, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter power flows between the Selle?s electric generation plant and Idaho Power's system. 16 "Net Energy" .-- All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent Energy. 1.17 "Qpgtion l)ate" The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. .18 'Point of Delivery" -The location specified in Appendix B, where Idaho Power's and the Seller's electrical läciltttes are interconnected. 1.19 "Prudent Electrical Practices" Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, safely, dependably, efficiently and economically. 1.20 "Scheduled Operation Date" - The date specified in Appendix B when Seller anticipates achieving the Operation Date. 1.21 "Schedule 72" —1dhn Powe.r's Tariff No 101, Schedule. 72 or its successor schedules as approved by the Commission. 1.22 "Season" - The three periods identified in paragraph 6.2.1 of this Agreement. 1.23 "çcial Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule 72 or the Generation Interconnection Process required to safely interconnect the Seller's Facility to the Idaho Power system. 1.24 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. -3- 2/19/20[6 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 1.25 'Su!gngcgy" - (I) Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month which exceeds 110% of the monthly Net Energy Amount for the curiesputiditig month specified in paragiaph 6.2. or (2) If the Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month is less than 90% of the monthly Net Energy Amount for lhe corresponding month specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.26 "IotaLLoLthg1aci!ity" - The total cost of structures, equipment and appurtenances. ARTICLE II: NO RELIANCE ON IDAHO PO WER 2.1 Sellerjndgpegcletfl Investigation - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations sel forth herein, Seller has investigated and determined that it is capable of performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Sdkr In dent Es crts - All prolcasionals or exports including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE III: WARRANTIES 3.1 Ngj Warranty jyIdaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qpiiifyjng Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term -4- 2118/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 is used and defined in IS CFR §292.207. After initial qualification, Seller will take such steps as may he required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Faeility Status will be a Mateiial Bicueti of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACcCE OF ENE RGY 4.1 Prior to the First Energy Dare and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller. Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 CFR 292.207. 4.1.2 Opinion of Counsel - Submit to Idaho Powerari Opinion Letter signed by an attorney admitted to practice and in good standing in the State 01 Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4. I.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understand ,, that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter will be governed by and shall he interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1 .3 - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. - 5- 2/I itf2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.4 * Submit an executed Engineers Certification of Design & Construction Adequacy and an Engineers Certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.5 jinc - Submit Written proof to Idaho Power of all insurance required in Article XV. 4.1.6 Interconnection — Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed. 4. 1.7 Written Acceptance - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall he provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V TERM AND OPERATION DATE 5.1 Term - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the dale first written and shall continue in full force and effect for a period of twenty (20) Contract Yimrs from tl)t,. Opnratinn Date. 5.2 Operation Date - The Operation Date may occur only after the Facility has achieved all of the following: a) Achieved the First Energy Date. h) Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c) Seller has demonstrated to Idaho Powers satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and sale manner and has requested an -6- 2/) 5/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Operation Date in written form. d)Seller has requested an Operation Date from Idaho Power in a written format. e)Seller has received writicu cutufiriiiatiuii ituiii Idaho Powet uf the Opetatiun Date. This confirmation will not be unreasonably withheld by Idaho Power. 5.3 Seller's failure to achieve the Operation Date within ten (10) months of the Scheduled Operation Date will be an event of default. ARTK'UiVI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivery and tniansa..pthal.Energy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point 01 Delivery exceed the Maximum Capacity Amount. 6.2 kLeLhnergy Amoj - Seller intends to produce and deliver Net Energy in the following monthly amounts: 62.1 ioL\ car ..Mooth' Net crAossais: Month kWh March 3,100,625 Season I April 2,689,296 May 2,NJl,94 July 1,910,208 August 1,781,958 Season 2 November 1,884.234 Deenihar 2425,295 June 2,711,046 September 2,422,340 Season 3 October 2,621,565 January 1,923,853 February 2,559,792 -7- 211 8/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 6.2.2 Qpggtng Monthly Nd Energy Amounts - Seller shall initially provide Idaho Power with one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts) and beginning at the end of month nine and every three months thereafter provide Idaho Power with an additional three months of forward generation estimates. This information will be provided to Idaho Power by written notice in accordance with paragraph 28. I, no biter than 5:00 PM of the 5' day following the end of the previous month. If the Seller does not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy amounts. 6.2.3 ll.MimgnLof Net Ener v Amount 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in accordance with paragraph 28.1, the Seller may revise all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 3d month after the Operation Date and at the end of every third month thereafter: (1) the Seller may not revise the immediate next three months of previously provided Net Energy Amounts. (2) but by written notice given to Idaho Power in accordance with paragraph 28. I, no later than 5:00 PM of the Ih day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed amounts will be deemed to be an election of no change. 6.2.4 Idaho Power Adiustment of Net Energy Amount - If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 and the Seller's declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy -8- 2118/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LIC Page 9 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with the following: Where: NEA = Current Month's Net Energy Amount (Paragraph 6.2) SGU = a.) If Idaho Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 this value will be equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. b.) If the Seller declares a Suspension of Energy Deliveries as specified in paragraph 14.3.1 this value will be the sum of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare a Suspension of Energy Deliveries. TGU = Sum of all of the individual generator ratings of the generation units at this Facility as specified in Appendix B of this agreement. RSH - Actual hours the Facility's Net Energy deliveries were either reduced or suspended under paragraph 14.2.1 or 14.3.1 TH = Actual total hours in the current month Resulting _formula Adjusted Net Energy = NEA ((X NEA ) X ( ) ) Amount This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific month in which Idaho Power was excused from accepting the Seltcrs Net Energy or the Seller declared a Suspension of Energy. 6.3 Unless excused by an event of Force Majeure. Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10 91o) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. 9- 2/18/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Net EnerPusgPtjcg - For all Net Energy, Idaho Power will pay the non-levelized energy price in accordance with Cuurutisaiij Oidei 29646 with settauttal _ation factors applied: Season I -(73.50%) Season 2 - (120.0(1 %) Season 3 - (1000) %) Year Mills/kWh Mills/kWh Mills/kWh 2005 37.00 60.41 50.34 2006 37.85 61.80 51.50 2007 38.73 63.23 52.69 2008 39.62 64.68 53.90 2009 40.53 66.17 55.14 2010 41.46 67.69 56.41 2011 42.42 69.25 57.71 2012 43.39 70.05 59.04 2013 44.39 72.48 60.40 2014 45.42 74.16 61.80 2015 46.47 75.86 63.22 2016 47.54 77.62 64.68 2017 48.63 79.40 66.17 2018 49,76 81.24 67.70 2019 50.91 83.11 69.26 2020 5207 05.02 70.85 2021 53.28 86.99 72.49 2022 54.51 88.99 74.16 2023 55.76 91.04 75.87 2024 57.05 93.14 77.62 2025 58.37 95.29 79.41 2026 59.72 97.50 81.25 7.2 Sur l porgy Price - For all Surplus Energy, Idaho Power shall PY to the Seller the current month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.!, = whichever is lower. 7.3 Inadvertent_Ene 7.3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was delivered. (For example January contains 744 hours. 744 times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess 017,440,000 kWh in this example would be tuadvertent - 10- 211 812005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Energy.) 7.3.2 Although Seller intends to design and operate the Facility to generate no more than l() a\'errtge MW and tlieiclute tInes lint iiiteiid to geuci ate Inadvertent Energy, Idaho Power will accept inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 Payment Due Date -- Energy payments to the Seller will be disbursed within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy and Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A. 7.5 Continuing Jurisdiction of the Commission -This Agreement is a special contract raid, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power comanyvJPublic Utilities Commission anL fm[Inergy._Inc., 107 Idaho 781, 693 P.2d 427 (1984); Idaho Power Company v. Idaho Public Utilities Commission, 107 Idaho 1122, 695 P.2d I 261 (195); Afton Energy, Inc. v. Idaho Power Compgfl, ill Idaho 925, 729 P.2d 400(1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and IS CPR 292.303-308. ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes, Environmental Attributes include, but are not limited to. Omen Tags. Green Certificates. Renewable Energy Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the production of energy from the Seller's Facility. ARTICLE IX: FACILITY AND INTERCONNECTION 9.1 Design ofacilit - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full - II- 2/15/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be iii aceonianee with Schedule 72, (he Generation lntcrconncetion Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costa incurred by Idaho Power for equipmenl costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. AR.TIGLE.X.. DISCONNECTION EOU IPM ENT 10.1 Except as specifically provided for in this Agreement, the required Disconnection Equipment will be in accordance with Schedule 72. the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operations and monthly maintenance expenses. ARTICLE Xt: M1T1R1NG AND TELEMRTRY 11.1 Metering and Telemetry -Idaho Power shall, for the account of Seller, provide, install, and maintain Metering Equipment to be located at a mutually agreed upon location to record and measure. fwe,' flows to Idaho Power in accordance with Schedule 72. Generation Interconnection Process and Appendix 13 of this Agreement. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. All Metering Equipment and installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting and testing such equipment at reasonable intervals at Idaho Power's actual cost of providing this - 2- 211812005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Metering Equipment and services. The Metering Equipment shalt be at the location described in Appendix B of this Agreement. All meters used to determine the billing hereunder shall be sealed and the seals shall be broken only by Idaho Power when the meters are to be inspected, tested or adjusted. 11 .2 Meter Inspection - Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed as specified in Appendix B of this Agreement. If requested by Seller, Idaho Power shall make a special inspection or test of a meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall he notified of the, time when any inspection or test shall take place. and each Party may have representatives present at the test or inspection. If a meter is found to be inaccurate or defective, it shall be adjusted, repaired or replaced, at Idaho Powers expense in order to provide accurate metering. If a meter fails to register, or if the measurement made by a meter during a test varies by more than two percent (2 %) from the measurement made by the standard meter used in the test, adjustment (either upward or downward) to the payments Seller has received shalt be made to correct those payments affected by the inaccurate meter for the actual period during which inaccurate measurements were made. If the actual period cannot be determined, corrections to the ,aytiieitts will be taocd Ott the shot tet of (1) it period equal to one-half the time fton the date of the last previous test of the meter to the date of the test which established the inaccuracy of the meter; or (2) six (6) months. 11.3 Telemetry - Idaho Power will install, operate and maintain at Seller' expense metering, communications end telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Sellers Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Powers Designated Dispatch Facility. ARTICLE XII - RECORDS 12.1 Maintenance of Reg - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy -13- 2/18(2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 and maximum generation (kW) records in a form and content recommended by Idaho Power. 12.2 Inspection - Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. ARTICLE XflI PROTECTION 13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix 13 of this Agreement, Prudent Electrical Practices, the National Electrical Code, the National Electrical Safety Code and any other applicable local, state and federal codes. Seller acknowledges receipt of the Generation Interconnection Process It in the reasonable opinion of Idaho Powtr, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Powers equipment, personnel or service to its customers, Idaho Power may physically interrupt the 110w of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such iuteiiuption prior to its occurrence as provided in paragraph 14.9. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho lowr's fihiiis. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. ARTICLE XIV - OPERATION 14.1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. 14.2 Egygcege -. -14- Exhibit 2108 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 15 14.11 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeure, or if Idaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance requirements, emergencies, electrical system operating conditions on its system or as otherwise required by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure, Idaho Power requires such a curtailment, interruption or reduction of Net Energy deliveries fora period that exceeds twenty (20) days, beginning with the twenty-first day of such interruption, curtailment or reduction. Seller will he deemed to he delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 14.2.2 It in the reasonable opinion of Idaho Power, Sellers operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho l'ower's equipment, personnel or service to its customers, Idaho Power may physically interrupt the Ilow of energy from the Facility as specified within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 14.2,3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 1.4.3 Sell leJa Suspension of Energy Deliveries 14.3.1 It' the Seller's Facility experiences a forced outage due to equipment failure which is not caused by an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility, Seller may, after giving notice as provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy to - 15- 2118/2W.5 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power from the Facility or from individual generation unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours to correct the forced outage condition ("Declared Suspcioitnr of Enes gy Deliveries"). The Selle 's Deelsued Suspension of Energy Deliveries will begin at the start of the next full hour following the Seller's telephone notification as specified in paragraph 14.12 and will continue for the time as specified (not less than 48 hours) in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net Energy Amount will be adjusted as specified in paragraph 6.2.4. 14.3.2 If the Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in paragraph 14.3.1, the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour of the Declared Suspension of Energy Deliveries will be at the earliest the next full hour after making telephone contact with Idaho Power. The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Article XXVIII that will contain the beginning hour and duration of the Declared Suspension of Energy Deliveries and a description of the conditions that caused the Seller to initiate it Declared Suspension of Energy Deliveries. Idaho Power will mvicw the documentation provided by the Seller to determine Idaho I'owcr' a acceptance of the described forced outage as qualifying for a Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's fomail outage as an acceptable forced outage will he based upon the clear documentation provided by the Seller that the forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 14.5 Voltgge Levels - Seller, in accordance with Prudent Electrical Practices shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of Delivery, its which case Seller shall modify, at Idaho Power's expense, Seller's equipment as - 16- 21)812)5)5 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 necessary to accommodate the modified nominal operating voltage level. 14.6 Generator Ram io - Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or fulluwitig reconnection to Idaho Powers electrical system. Generation ramping may be required to permit Idaho Power's voltage regulation equipment time to respond to changes in power flow. 14.7 Scheduled Maintenance On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 14.9 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power, ARTICLE XV: INDEMNIFICATION AND INSURANCE 15.1demnifiation - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or maintenance of, or by failure of, any of such Party's works or facilities used in connection with -17- 211512005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim coveted by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney rees that may be iiieuricd by the oilier I'aity ill eiifueiiig this iudeitimiity. 15.2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15.2. I Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 15.2.2 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shalt not he canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 15.3 Seller to Provide c'ertific.e_pfj ge - As required in paragraph 4.1.5 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 15.4 Seller to Notify Idaho Power of Loss of Cove t ge - If the insurance coverage required by paragraph N 2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constittite a Material Breach of this Agreement. ARTICLE XVI. FORCE MAJEURE 16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, - 18- 2/15/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 such Party is unable to prevent or overcome. Force Majeurc includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome, if either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Pa,-ties shalt be excused from whatever performance is affected by the event of Force Majeure, provided that: (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majcure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall he of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XVII: LAND RIQH 17.1 Seller to Provide Aceess -Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Powers Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights oil property of Seller. Seller warrants that. it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Powers approval and in recordable form. - 19- 211s/200S Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 17.2 Use of Public Rights-of-Wy - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with paragraph 17.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public tight-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission faeililhts and Irlaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by paragraph 17,4, Idaho Power shall not he required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint Use of Facilities - Subject to Idaho Power's compliance with paragraph 17.4. Idaho Power may use and attach its distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to paragraph 17.2, attaching Seller's Iutetcu,iiiecuoii Facilities to such newly constructed facilities. Except as required by paiagiaili 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this paragraph 17.3. 17.4 conditions of Use - It is the intention of the Parties that the Seller he te.t't in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Article XVII. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (I) comply with all applicable laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method of apportioning these costs, the dispute will be submitted to the Commission for resolution and the decision of the Commission will be binding on the Parties, and (3) shall -20- 211 &2(X).S Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XVII. ARTICLE XVIII: LIABILITYJEDICATION I 8. 1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other tinder any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XIX: SEVERAL OBLIGATIONS 19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall he individually and severally liable for its own obligations under this Agreement. ARTICLE XX: WAIVER 20.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XXI: CHOICE OF LAWS AND VENUE 21.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada, -21- 2/1812005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 ARTICLE XXII: DISPUTES AND DEFAULT 22.1 jtites - All disputes related to or arising under this Agreeritent, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. 22.2 Notice of Default - 22.2.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in writing to be given to the defaulting Party. specifying the manner in which such default occurred. If the defaulting Party shall fail to core such default within the sixty (60) clays after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can he cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondetaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 22.2.2 Material Breaches - The notice and cure provisions in paragraph 22.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 22.3 Securbfor Performance - Prior to the Operation Date and thereafter for the full term of this Agreement. Seller will provide Idaho Power with the following: 22.3.1 Insuranci - Evidence of compliance with the provisions of paragraph 15.2. If Seller fails to comply, such failure will be a Material Breach and may njy he cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated; 223.2Engineer's Certifications - Every three (3) years alter the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (C) & M) from a Registered Professional Engineer licensed in the State of Idaho, which -22- Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's liilure to supply the required certificate will be an event of default. Such it default may only be cured by Seller providing the required certificate; and 22.3.3 Licenses and Permit - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Salter will update the documentation described in Paragraph 4.1. I. If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4.1 . I or to provide the documentation required by this paragraph, such failure will be an event of default and may o nly be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARtIULt XXIII: (JOVb1(NMNIAL AUtHORIZAIIUN 23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE XXIV: COMMISSION ORDER 24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions horoof wtlinie change or condition and declaration that all payments to he made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXV: SUCCESSORS AND ASSIGNS 25.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without the written consent of both Parties being first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, -23- 21180-005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further aet, and without need of consent or approval by thc Seller, succeed to all of Idaho Powei ' iglits, obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to he notified by the financing entity that it is exercising such rights or remedies. ARIIcLEXXILJ4.ODLFI.CAflQN 26.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXVII: TAXES 27.1 Each Patty shall pay betore delinquency all taxes and Other governmental charges which, it tailed to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXVJthNOflçS 28.1 All written notices under this agreement shall be directed as follows and shall be considered delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows: To Seller: Thousand Springs Wind Park, L.L.C. Attn: Larry Leib 1424 Dodge Ave Helena, MT 59601 24- 211 812005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 To Idaho Power: Original document to: Vice President, Power Supply Idaho Power Company P0 Box 70 Boise, Idaho 83707 c3yLdoument to: Cogeneration and Small Power Production Idaho Power Company P0 Box 70 Boise, Idaho 83707 ART1CLH XXIX: ADDITIONAL -T -1111 M AND CONDITIONS 29.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications ARTICLE XXX-. SEVERABILITY 30.1 The invalidity or nnenfomeability of any term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXXI:_COUNT1RIART 31.1 This Agreement may he executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. ARTICLE XXXII: ENTIRE AGREEMENT 32.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the 25- 2/1812005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to he executed in their respective mimes on the dates set forth below: Idaho Power Coiiy TlmiqusandSaLings Wind Park LL.C. By / ()j By N. Vern Porter - Mgr Power Supply Operations James Carkulis Dated Dated 3.u*y /8. 2a5 _z'L•. /(Y r "Idaho Power" "Seller" 26- 2/18/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 APPENDIX A A—] MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each mouth the following required documentation will he submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded On the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. 27- 2/18/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 28 Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Name Address Phone Number: City Zip IaeIllty station Station Metered Maxintinn cenermmitt,, Meter Number: End of Month kWh Meter Reading: kW Beginning of Month kWh Meter: Difference; Times Meter Constant: Net Generationl kWh for the Month: - = Metered Demand: Breaker Opening Record Breaker Closing Record 1 Reason !MN jhle Meter Breaker Ouenina Reason Codes I Lack of Adequate Prime Mover 2 Forced Outage of Facility I hereby certify that the above meter readings are 3 Disturbance of IPCo System true and correct as of Midnight on the last day of the above month and that the switching record is accurate 4 Scheduled Maintenance and complete as required by the Firm Energy Sales S Testing of Protection Systems Agreement to which I am a Party. ' Cause Unknown 7 Other (Explain) Signature Date 28- 2/15/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 A-2 ROUTINE REPORTING Idaho Por Contact I9fiatjon DaijPiodui.tiuu Reuui tiug Call daily by tO am., 1-800-356-4328 or 1-800-635-10 and leave the following information: • Project Identification - Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Call 1-800-345-13 19 md leave the following intrmaIion • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coming back online Seller's Contact _Information 24-1-lour Project Operational Contact Name: Telephone Number: Cell Phone: Project On-site Contact information Telephone Number: 2/18r-005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 -29- APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31315055 THOUSAND SPRINGS WIND PARK B-I DESCRIPTION OF FACILITY The Facility will consist of 7 GE Wind turbines model 77 SLE with individual generator ratings of 1.5 MW for each unit, for a total Facility generator rating of 10.5 MW. B-2 LOCATION OF FACILITY Near: Hagerman, Idaho Sections: 4.5.8.9 Township: 7S Range: 13 County: Twin Falls Idaho. Sections: 1930 Township:... Range: I 3E County:Twin rails Idaho. 13-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected December 3O05 as the estimated Scheduled First Energy Date. Seller has selected January IS, 2006 as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. Idaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 12 and the Generation Interconnection Process. 13-4 MAXIMUM CAPACITY AMOUNT: This value will be 10.5 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection process. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. -30- 2/23/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 B-5 POINT OF DELIVERY 'Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power Generation Interconnection process will determine the specific Point of Delivery for this Facility. Upon completion of the Generation Interconnection process the Point of Delivery identified by this process will become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering eclllipment is capable of measuring th exact energ.y deliveries by I he Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. if the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will he established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, eoiidueloi sites, o(L;) of all of LILO lcetiicI osluilnhlcIlt betweon 1110 Facility ajid the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining terni of the Agreement, if at anytime during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. 13-7 METERING AND TELEMETRY The Idaho Power Generation Interconnection process will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry -31- 211 8/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 equipment must he able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but riot be limited to eqtnpmerrt pecifieations, equipment location, Idaho Powci provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. 13-7 SPECIAL FACILITIES The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not be limited to equipment specifications, equipment location. Idaho Power provided equipment. Seller provided equipment, and all Costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Special Facility coat will be included in the calculation of the Monthly Operation and -32- 2118/200.5 Exhibit 2108 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 33 Maintenance Charges specified in Schedule 72. B-8 REACTIVE POWER The klahu Puwei Genejetion Interconnection process Will deennijie the IeaCtfl'e power LcquirctJ to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The Generation Interconnection process will specify the equipment required on the Idaho Power system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation Interconnection PrOCeSS, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will he in accordance with Schedule 72 and the total reactive power cost will be included in she calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. 15-9 I)1SCONNIIT10N EQUIPMENT Disconnection Equipment is required to insure that the Seller's Facility will be disconnected from Idaho Power's system in the event of (I) the Sellers delivery of energy exceeds the Maximum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's Facility. The Idaho Power Generation Interconnection process will determine the Disconnection Equipment specifications and requirements for this Facility, this equipment is for protection of the Idaho Power system and equipment only. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment. Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire -33- 2/1 11/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 and conduit necessary for the operation of the Disconnection Equipment. Through the Generation Inter-connection process, Idaho Power will supply details for the disconnection panel and will test tire equipruecu pilot to tury oper adorra ol the Ftreility, Seller will provide drrrwiirgs of their interconnection wiring for engineering approval prior to installation. The entire Generation Interconnection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will he maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Disconnection Equipment cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-10 COSTS The Idaho Power Generation Interconnection process and this Agreement will identify all cost for this Facility to interconnect to the Idaho Power system, including but not limited to the cost of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection equipment, Protection equipment and Interconnection Equiprnem. As specified in the Generation Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, installation and construction charges as specified above, during the term of this Agreement, Seller will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following the date which Idaho Power has completed installation of the Idaho Power provided equipment and the interconnection equipment is available for use by the Facility. The monthly operations and maintenance charge will be based upon the initial cost paid by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will be adjusted to -34- W 8120at Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 reflect the actual cost incurred by Idaho Power and previously charged monthly operation and maintenance expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adjusted irioutirly operations and maintenance charge within sixty (60) days of the determination of this amount. 8 Il SALVAGE No later than sixty (60) days after the termination or expiration of this Agreement. Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished Interconnection Facilities as required under Schedule 72. the Generation Interconnection Process anti/or described in this Agreement, less the cost of removal and transfer to Idaho Powers nearest warehouse, if the interconnection Facilities will be removed. if Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) clays after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. -35- 2111,/2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned , on behalf of himself and - , hereinafter collectively referred to as 'Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as WCo Facility No and is hereinafter referred to as the "Project." 4.That the Project, which is commonly known as the Project, is located in Section ______,Township Range , Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power fora twenty (20) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. S. That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the -36- 211812005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 Project's producing at or near the design electrical output, efficiency and plant factor fora twenty (20) year period. 9. that t3ngiiicer rei.ugiiizes that Idaho Powet, iii titcoidi,iice with paiaiapli 52 of the Agieciiieiit, is relying on Engineer's representations and opinions contained in this Statement. 10, That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (RE. Stamp) Date 211 W2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 -37- APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and _____________ as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPC0 Facility No. ______________ and hereinafter referred to as the Project'. 4.That the Project, which is commonly known as the___________________________________________________________________________________________ Project, is located at 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a twenty (20) year period. 6.Thai Engineer has substantial experience in the design. construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. U is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the -38- Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 remaining years of the Agreement. 9.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's juiptustnitatium and opinions euiitaiited in this Statement. 10.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (RE. Stamp) Date -39- 2/1 FJ2005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 APPENDIX C ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer", hereby states and certifies to Idaho Power as follows: That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter 'Agreement', between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No and is hereinafter referred to as the "Project. 4.That the Project, which is commonly known as the Project, is located in Section _Township Range , Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a _________. ( _) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 8.That Engineer has reviewed the engineering design and construction of the l'roject, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. -40- 2/1812005 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 9.That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a (_.) year period. 11.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement. in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (RE. Stamp) 2/18/2(1(0 Exhibit 2108 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 I Date -41- FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND TUANi\ GULCH WIN!) PARK L.L.C. TABLE OF CONTENTS Article i1'rLE Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy S Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment Environmental Attributes 9 Fad lily and Interconnection 10 Disconnect 11)11 Equipment I Metering and Telemetry 2 Records 3 Protection 4 Operations 15 Indemnification and insurance 6 Force Majeure 17 Land Rights IS Liability; Dedication 19 Several Obligations 20 Waiver 21 Choice of Laws and Venue 22 Disputes anti Default 23 Governmental Authorization 24 Commission Order 25 Successors and Assigns 26 Modification 27 Taxes 28 Notices 29 Additional Terms and Conditions 30 Severability 31 Counterparts 32 Entire Agreement Signatures Appendix A Appendix Ii Appendix (2 21151 toss Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (lOaMW or Less) TUANA GULCH WIN!) PARK, L.L.C. Procct Number: 3 1315065 THIS AGREEMENT, entered into on this— 18"' day oI_jty_. 2005 between TUANA GULCH WINE) PARK L.L.C. (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." wirNassEru: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. 1'HEREPORI3, In consideration of tile mutual covenants and agreements hereinafter set forth, the Patties agree as follows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: 1.1 "Commission" -The Idaho Public Utilities Commission. 1.2 "_i3pjct_Xpç" -The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. .3 "Dcsignated Dispatch Facility" - Idaho Power's Systems Operations Group, or any subsequent designated by Idaho Power. .4 - All equipment specified in Schedule 72 and the Generation Interconnection Process and any &klitioiiitl equipment specified in Appendix B. 1.5 "ic ility" -That electric general ion flicility described iii Appendix 13 ol' this Agiceinent. 2i15'!2(I(i5 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 1.6 "First Energy Date" - The day commencingat0001 hours, Mountain Time, lollowing the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 13 "Generation Interconnection Process Idaho Power's generation tntu'eotimketIOi1 application and engineering review I)OCCSS developed to ensure i Sate and reliable geneL'auon ifltCi'eOflneclion in compliance with all applicable regulatory requirements, Prudent lilectrical Practices and national safety standards. 1.8 "adverteujimg" Electric energy Seller does not intend to generate. Inadvertent energy is mum part iiimlarly de,scriherl in paragraph 7.3 of this Agreement. 1.9 "Interconnection Facilities" - All equipment specified in Schedule 72 and the Generation Interconnection Process and any additional equipment specified in Appendix B. 1.10 "Initial C"affile,iiyDetermhiat f'— The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Lommission Order No. 29632. 1_I1 "Losses" - The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result uf the ii umisium I intium i and tr isnissicimi of energy between the point where the Facility's energy is metered and the point time Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix I) of this Agreement. 1.12 M u Iu,L F'nciC I slit y is it 's /') St ihe weightod isv of Its duly on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Coltimbiti Index price is discontinued by the reporting agency, both Parties will mtmtually agree upon a replacement index, which is similar to the Dow Jones Mid- Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.13 "MaterittlOrsacli" - A Del)mult (paragraph 22.2.1) subject to paragraph 22.2,2. 2;iS'/2utIS Exhibit 2109 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 3 14 -Maximurn —The maximum capacity (MW) of the Facility will be as specifier! in Appendix B of this Agreement. • t 'Melerin.'tEcijQaenl" - All equipment specilied in Schedule 72, the Generation liitereoiiiiectioii Process, this Agreement and any additional equipment specified in Appendix 13 required to measure, record and telemeter power flows between the Sellers electric generation plant and Idaho Power's system. 16 "Net Energy" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at the. Point of flistivery for tht-, full terin of the Agreement. Net Energy does 1101 include Inadvertent Energy. 1.17 "Qtgigo..i~nf' - i'he day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.18 "inofD.cUvciy" -The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.19 "Prudent —Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, surely, delieiithah;Iy, el'fickully ond economically. 1.20 "SgjQpgrjcgjj2" -The date specified in Appendix B when Seller anticipates achieving the Operation Date. 1.21 Schduk72 - Idaho Pow ¼ I iulI No till St h dnle Ty or m, in (g ¼',Ui '. Ii 111114 ¼ mS approved by the Commission. 1.22 "gpij" •-. The three periods identified in paragraph 6.2.1 of this Agreement. I .23 "Special Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Appendix B, Schedule 72 or the Generation Interconnection Process required to salely interconnect the Seller's Facility to the Idaho Power system. 1.24 "Station Use" ... Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. /I 5/11055 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 .25 " jtggy" - (I) Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical systeni dUring the month which exceeds 110% of the monthly Net Energy Amount for the corresponding motinit specified in paragraph 6.2. or (2) if the Net Energy produced by the Seller's Facility and delivered to the Idaho Power electrical system during the month is less than 90% of the monthly Net Energy Amount for the corresponding month specified in paragraph 6.2 then all Net Energy delivered by the Facility to the Idaho Power electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.26 "t'oial Cost of tho Faciliuy" - The trial cost of strictures, equipment and ilt)pttrleflaflces, ARTICLE II: NO RELIANCE ON IDAEIO POVER 2.1 .SecJndepgndgnUycivatjpn - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined that it is capable of performing hereunder and haS not rotted uoti the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 - All pnutesniil oi nii.tudi is. but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. ARTICLE Ill: WARRANTIES 3.1 No Warranty by Jdaho Power - Any review, acceptance or failure to review Seller's design, specifications. equipment or facilities shall not he an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties. expressed or implied, regarding any aspect of Seller's design, speci licationts, equipntientt or facilities, includiitg, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Quihlsin.,, F actlnly St itus Seller warrams tO lit the Facility is i "Qualifying Facility," is that term -4- '118d2003 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 is used and defined in 18 CFR §292.207. After initial qualification. Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to malinalu Qualifying Facility status wi tI be it Matci at Bicitch or this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Dale and as a condition of Idaho Power's acceptance of deliveries ol allergy from the Seller. Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart 13, 18 CFR 292.207. 4.1,2 Qpj9i9i4uaJ - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State 01 Idaho providing an Opinion that Seller's licenses, permits antI approvals as set forth in paragraph 4. 1 above are legally and validly issued, are held in the narne of the Seller and, based on it reooable independent review, counsel is of the opinion that Set Icr is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter will be in a form acceptable to Idaho Power and will acknowledge that the attorney ieiidriiiq (Ile opinion uni lerstanrls that Idaliri Powar is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter will be governed by and shall he interpreted in accordance with the legal opinion accord of (lie American Bar Association Section of Business Law (1991). 4.1.3 Initial CapacitrDetermination - Submit to Idaho Power such data as Idaho Power May reasonably require (0 perform the Initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. 2/150015 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.4Etwineer's Certifications - Submit an executed Enineer Certification of Desien & Construction Adequacy and an Engineers Certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These c.rtificatei: will be in the form specified in Appendix C but may he modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4. I .5 tn5urIuma-..' iihmit wri tan proof to Idaho Power of all insurance required in Article XV. 4.! .6 Intec_omiection— Provide written proof to Idaho Power that all Schedule 72 and Generation Interconnection Process requirements have been completed. 4.1.7 Written Au.p mu. Request and otitaill written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a coninsercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power, ARTICLE V. TER'vl AND OPERATION DATE Ltnt Subject to the provision.-; ol tt ,t iph 2 below, this Agreement shill become LllLetis, on the date first written and shall continue in full force and effect fora period of twenty (20) Contract Years troni the Operation Date- 5.2 operation mite -The Operation ])are may occur only after the Facility has achieved all of thc following: a)Achieved the First Energy Date, b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and able to provide energy in it consistent, reliable and safe manner and has requested an 51151.55 iS Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Operation Date in written form. (1) Seller has requested an Operation Date from Idaho Power in a written format. C) Seller has received written eon fi rmaiton from kltiltu Power of the Opet atiun Date. This confirmation will not be unreasonably withheld by Idaho Power. 5.3 Seller's failure to achieve the Operation Date within ten (10) months of the Scheduled Operation 1)isic will be on event oh default. ARTICLE VI: PURCHASE AND SALE or NET ENERGY 6. I c. qIjNetjji)r- Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the facility will also b delivered by the Seller 10 Idaho Power it the Point of Delivery. Al no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Sefler to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 NetEnemy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts: 6.2. I IOkiiLl Yctir tMolltiltv Nt DicdgyA... Month kWh March 3,100,625 Season I April 2,689,296 May 2.501,984 .luly 1,910,208 August 1.781,958 Season 2 November 1,884,234 Dccmber ?47S20S June 2,711,046 Septeuiihei 2,422,340 Season 3 October 1,02 1,565 January 1,923.853 February 2,559,792 -7- 2!1513005 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 6.2.2 Oneoing Monthly Net Energy _Amounts Seller shall initially provide Idaho Power with one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts) and beginning at the end 01 mouth nine and every three months thereafter provide Idaho Power with an additional three irrouths of forward generation estimates. This information will be provided to Idaho Power by written notice in accordance with paragraph 28. 1, no later than 5:00 PM of the 5h day following the end of the previous month. If the Seller noes not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy anrottots. 6.23 Sol ler's cn[JjtcsgyAatggpi 6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power iii accordance with paragraph 28.1, the Seller may revise all of the previously provided Initial Year Monthly Net Energy Amounts. 6.2.3.2 Beginning with the end of the 3 month after the Operation Date and at the end of every third irrontlr thereafter: (I) tire Seller m ay- r1q revise the immediate next three months of previously provided Net Energy ,mounts, (2) but by written notice given to Idaho Power in accordance with paragraph 28.1, no later than 5:00 PM of the h day following the end of the previous month, the Seller may revise all other previously provided Net Energy Amounts. Failure to provide timely written notice of changed airrounts will be deemed to he an election of no change. 6.2.4 Idaho l'owerAdju.stnieri neI - If Idaho Power is excused front accepting the Seller's Net Energy as specified in paragraph 14.2. I or if the Seller (lectures a Suspension of Energy l)eli series as specified in paragraph 14.3. I and the Seller's declared Suspension of Energy l)livries is accepted by Idaho Power, lire Net Energy - 8- 211s/11)1)S Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Amount as specified in paragraph 6.2 for the specific month in which the reduction or suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with the following: Where: NEA = Current Month's Net Energy Amount (Paragraph 6.2) = a ) If Wallin Power is excused from accepting the Seller's Net Energy as specified in paragraph 14.2.1 this value will be equal to the percentage of curtailment as specified by Idaho Power multiplied by the TGU as defined below. b.) If the Seller declares it Suspension 01 Energy Deliveries as specified in paragraph 14.3- I this value will be the sum of the individual generation units size ratings as specified in Appendix B that are impacted by the circumstances causing the Seller to declare it Suspension of Energy Deliveries. TGU = Suns of all of the individual generator ratings of the generation Linus at this Facility as specified in Appendix B of this agreement. RSH Actual hours this Facility's Net Energy deliveries were either reduced or suspended under paragraphs 14.2.1 or 14.31.1 TH = Actual total hours in the Current month Adjusted Net Energy = NEA ( (x NEA ) x ( RH ) ) Amount This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for only the specific month in which Idaho Power was excused Irons accepting the Seller's Net Energy or the Seller declared it Suspension of Energy. 6.3 Unless excused by an event of ltiice Majeure. Seller's failure to deliver Net Energy in any contract Year In an ailtount equal to at least ten percent (10';7(:) of the sum of the initial Year Net Energy Amounts as specified its paragraphs 6.2 shall constitute an event of default. 9- 2/ 1801115 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.!(J_ggy_Pwchase Price •- For all Net Energy, Idaho Power will pay the non-levelized energy price in accordance with Commission Order 29646 with seasonaltzatton iacLor.s applied: Season I - (73.50 i) Season 2 - (120.00 %) Season 3 -(100.00 %) Year Mills/kWh Mills/kWh Mills/kWh 2005 37.00 60.41 50.34 2006 37.85 61.80 51.50 2007 38.73 63.23 52.69 2008 39.62 64.68 53.90 2009 40.53 66.17 55.14 2010 41.46 67,69 56.41 2011 42.42 69.25 57.71 2012 43.39 10.85 b9.04 2013 44.39 72.48 60.40 2014 45.42 74.16 61.80 2015 46.47 75.86 63.22 2016 47.54 77.62 64.68 2017 48.63 79.40 66.17 2018 49.76 81.24 67.70 2019 50.91 83.11 69.26 2020 52.07 05.02 70.85 2021 53.28 86.99 72.49 2022 54.51 88.99 74.16 2023 55.76 91.04 75.87 2024 57.05 03.14 77.62 2025 58.37 95.29 79.41 2026 59.72 97.50 81.25 7.2 SgpiusEiwrgyjicc - For all Surplus Energy, Idaho Power shall pay to the Seller the current niouth's Market Energy Cost or the Net Energy Purchase Price speciFied in paragraph 7. 1. whichever is lower. 7.3 .ijigdygp4jS.ngigy 7.3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Powc...it the l'oint oF Delivery that exceeds 10,000 k\V multiplied by the hour'; ill the pcei Fic month in which the energy was delivered. (For example January contains 744 hours. 744 times 10,000 kW = 7,440.000 kWh. Energy delivered in January in excess oF 7440, 000 kWh in this exainpk: would be Inadvertent - In- .01512U1)5 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Energy.) 7.3.2 Although Setter intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy 7.4 j_gvnient Due Date - Energy payirients to the Scllci will be disL,uised withiu 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Net Energy and inadvertcnt. Energy actually produced by the Seller's Facility and delivered to Idaho Power as specified in Appendix A. 7.5 çonti _wing Jurisdiction _ the Commission —This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with 4lm Power ntppnyy Idaho Public Utilities Co iisSion all Alton1ogsgy.Ji.ig., 107 Idaho 781, 693 P.2d 421 (1984); klaho Power Comppvv.kkthoPubhicUU01icsCpi))pujti4iQJi, 107 Idaho 1122, 695 P.2d I 261(1985); M o_.crx,io ..hihY r(gjmi, III Idaho 925, 729 P.2d 400(1986); Section 210 of the Public Utilities Regulatory Policies Art of 1979 and 1.8 CFR §292.303-308. ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmenlal Attributes. Envirotintenial Attributes include, but are not limited to, Green l'ag:;, Greeii Ceitificatee, Renewable Energy Credits (RECs) and Tradable Renewable Certificates (TRC5) directly associated with the production ol' energy front the Seller's Facility. ARTICLE IX: FACILITY AND INTERCONNECTION 9.1 Desigp[acWLy - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so its to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the lull 2/15,2150 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 term of the Agreement. -9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule .12. the (.ieneratton Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Powet fot etluipincut Cr515, bwtatlation costs and ongoing monthly Idaho Power operations and maintenance expenses. iMJtCLli X: DI~CONNEc,rIONI:-,Q-QLIIMt~'NT 10.1 Except its specifically provided for in this Agreement, the required Disconnection qtnpnnt will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix 13. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operatiituta and monthly maintenance expenses. i\RTICLt XL: METERiNG ANt) -rE[.FSME'l-Ry 11.1 Meted" and Telemetry - Idaho Power shall, for the account of Seller, provide, install, and alainLain Metering Equipment to he located at a mutually agreed upon location to record and measure power flows to Idaho Power ii aecordanee with Schedu le 72, Generation Interconnection Process and Appendix 13 of this Agreement. The Metering Equipment will be at the location and the type required to measure, record and report the Faci lity's Net Energy, Station Ike. lnadvnrtenr Energy and maxiunhint energy deliveries (kW) in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. All Metering Equipment and installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting and testing such equipment at reasonable intervals at Idaho l'ower's actual cost'oI providing this 2- 2/15/1513.5 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Metering Equipment and services. The Metering Equipment .hall be at the location described a Appendix B of this Agreement- All meters used to determine the billing hereunder shall be sealed and the seals shall he broken only by Idaho Power when tIle meters are to be inspected, tested or adjusted. 1.2 Meter Inspection Idaho Power shall inspect installations annually and test meters on the applicable periodic test schedule relevant to the equipment installed as specified in Appendix 13 of this Anreentent. Ii requested by Seller, Idaho Power shalt make it special inspection or test oft meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall he notified of the time when any inspection or test shalt take place, and mirh Party may hvis representatives present at the test or inspection. if it meter is found to be inaccurate or defective, it shall he adjusted, repaired or replaced, at Idaho Powers expense tn order to provide accurate metering. if it lacier fails to register, or if the measurement made by it meter during it test varies by more than two percent (2 %) from the measurement made by the standard tileter used in the test. adjustment (either upward or downward) to the payments Seller has received shall he made to correct those payments affected by the inaccurate meter for the actual period during which ittacctli'atC measurements were made. lithe actual period cannot he determined, corrections to the payments will be based on the shorter 01(1) a period equal to utte-Itul I' the tulle tsoitt the date of tile last pvious test of tile meter to the date of the test which established the inaccuracy of the tlleter or (2) six (6) months. 1.3 TeJeigpy khttto Power will install, operate and maintain at Seller's expense metering, comntstnications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent l:tsergy proclttcccl and deli verpil to time Idaho Power Point oh' Delivery to Idaho l'ower's Designated Dispatch Facility. ARTICLE XII RFiCORI)S 111 Maintenance ol'Reco - Seller shalt maintain at the Facility or such other location mutually acceptable to tite Parties adequate total gencratiots, Net Energy, StationUse. Inadvertent Energy -13- /taraMJ5 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 and maximum generation (kW) records in it form and content recommended by Idaho Power. 2.2 hispeclign Either Party, after reasonable notice to the other Party, shalt have tIme right, during normal business hours, to inspect and audit any or all generation, Net Energy. Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. AR'FICLI. XIII - PROTECTION 13.1 Seller shall construct, operate and maintain the Facility and Seller-fimrnislied Interconnection Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix Il of this Agreement, Prudent Electrical Practices, the National t:fl.'ctrieat ('oils', the National Electrical Safety Code ,'incl any other applicable local, state and federal codes. Seller acknowledges receipt of the Generation Interconnection Process. If, in the reasonable opinion of Idaho Power, Seller's operation of' the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may physically interrupt the now of energy from the Facility as specified within Schedule 72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller of such interruption prior to Us occurrence as provided iii paragnaph 14.9. Setici shall provide and maintain adequate protective equipment sufficient to prevent damage to the Facility and Seller-furnished Interconnection Facilities. In some cases, sonic of Seller's protective relays will 7rovidC buck no promectiomi for Idaho Power's facilities. In ihz.mi event, Id-die Power will teSt such relays annually and Seller will pay the tctttal cost of such annual testing. jKi1KLE.XtV----1ERtVJ'IQNS I 4 . I Communications Idaho Power and the Seller shall maintain appropriate operating COnhitititllcatiolis through Idaho I'owcr's l)esignatcd Dispatch Facility in accordance with Appendix A of this Agreement. 4.2 gy.A2cgMa9gg-- - 14- Sit 5/2012 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 14.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented Fi-ota doing so by an event OF Force Majeure, or it Idaho f'ower determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction or maintenance- requirements, C1 lcIgelicies, elecijictil system operating eonditions On its system or as otherwise required by Prudent Electrical Practices. if, for reasons other than an event of Force Majeure, Idaho Power requires such a curtailment, interruption or reduction of Net Energy deliveries For ii period that exceeds twenty (20) days, beginning with the twenty-First day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rain daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, cattail ment or reduction is terminated. 4.2.2 It', in the reasonable opinion of Idaho Power, Seller operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Powers equipment, personnel or service to its customers, Idaho Power may physically interrupt the Flow 01' energy From the Facility as specified within Schedule 72 or rake such other reasonable steps as Idaho Power deems appropriate. 4.23 Under no circumIances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds time Max i mum Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 14 5etDesatertSrLslphsanfEnexgikjiye.dcs 14.3.1 If the Sellers Facility experiences a forced outage due to equipment failure which is not caused by an event of Force Maleure or by neglect, disrepair or lack of adequate preventative maintenance of the Sellers Facility. Seller rutty, after giving notice as provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy lo -15- 2/18120(5 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power from the Facility or from individual generation unit(s) within the Facility impacted by the forced outage for a period of not less than 48 hours 10 correct the forced utase condition ("Declared Suspension of tnergy Deliveries"). The Sellers Declared ,, Pn,, Si cit h...,.. ID_AL LU ULLI/Ul LLflItJLl'IJLLL. t11c Sellers telephone notification as specified in paragraph 143.2 and will continue for the tituc as specified (not less than 48 hours) in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net Energy Amount will be adjusted as specified in paragraph 6.2.4. 14.3.2 If the Seller dosioss to initiate a Declared Suspension of Rnergy Delivejies its prnviikvt in paragraph 14.3.1. the Seller will notify the Designated Dispatch Facility by telephone. The beginning hour 01 the Declared Suspension of Energy Deliveries will be at the earliest the next full hour after making telephone contact with Idaho Power. The Seller will, within 24 hours after the telephone contact, provide Idaho Power a written notice in accordance with Article XXV Ill that will contain the beginning hour and duration of the Declared Suspension of Energy Deliveries and a description of the conditions that caused cc Seller to initiate it Declared Suspension of Energy Deliveries. klaho Power will review the documentation provided by the Seller to delerneute Ithilto Fuwet's acceptance of the described forced outage as qualifying for it Declared Suspension of Energy Deliveries as specified in paragraph 14.3.1. Idaho l'ower's acceptance of the Seller's forced outage an in acceptable Forced outage will he ba.cet upon the clear documentation provided by the Seller that the Forced outage is not due do an event of Force Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 45 slligie..Lgiej.s - Seller, in accordance with Prudent Electrical Practices shall minimize voltace I net nations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Prudent Electrical Practices, upon one hundred eighty (ISO) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho Power's expense. Seller's equipment its 16- I 512555 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 necessary to accommodate the modified nominal operating voltage level. 14.6 c;cnertorRampjqg - Idaho Power, in accordance with Prudent Electrical Practices, shall have the right to limit the rate that generation is changed at startup, during normal operation or following reconnection to Idaho Power's electrical system. Generation ramping may be requited to permit Idaho Power's voltage regulation equipment time to respond to changes in power flow. 143 S,cJlriled_Ntningece On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of Use proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled ir,ai ntenance will lake into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's p:'eicrred schedule.. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 14.8Maintenance Coordination . This Seller and Idaho Power shall, to the extent practical, coortlinats their respective line and Facility maintenance schedules such that they occur simultaneously. 14.9 (lofflact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility. Seller understands that in the case or emergency circunistaucca, rcal tii uperaliuiis ut the electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XV: INI)EMNIFICATJON AND INSURANCE 15.1 jaiJcmodcitIon - Each Party shall agree to hold harmless and to indemnify the other Party. its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, ctamnage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or maintenance of', or by failure of, any of such Party's works or facilities used Ui connection with - 17- 51515)5 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 this Agreement. The indemnifying Party shall, on lie other Party's request, defend any suit asserti rig a claim covered by this indemnity. The indemnifying Party shall pay all costs, including reasonable attorney Fees that may be incurred by the other Party in enforcing this indemnity. 15,2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 15.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 15.2.2 The above insurance coverage shall he placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a) An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (h) A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written liOtiCC to Idaho Power. 15 Si,lki to Provide Certificate of insurance As required in paragraph iph 4 I a lu_run and annually thereafter, Setter shalt furnish Idaho Power a certificate ut' illsuraltcc, together With the endorsements required therein, evidencing the coverage asset Fotth above. 15.4 'elluio Notik, lthlio.f,qvg of loss of Cosug If the insurance coverage required by t,artmgrripli 15.2 shalt lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power 01' the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute it Material Breach of this Agreement. ARTICLE XVI. FORCE MAJ FU- RE 16.1 As used in this Agreement. "Force Majeur&' or "an event of Force Majenre" means any cause beyond the control of the Seller or of Idaho Power which, despite lie exercise of due diligence, - 18- 1/i 512(5)5 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of 00(1, lire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, tires, lightning, epidemics, sabotage, or changes in law or regulation occurring alter the Operation Date, which, by the exercise of reasonable foresight such party could sot reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to uvctcuiiie. If either Party is rendered wholly or its part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall he excused from whatever performance is affected by the event of Force Majeure, provided that: I 't'he non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeur, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall he of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall he excused as a result of such occurrence. ARTICLE XVII: LAND RI0IITS 17.1Seller to Provide Acces.s Seller hereby grants to Idaho Prover for the tern) of this Agrecimmi Al necessary rights-of-way and easements to install, operate, maintain, replace, and remove ltl:.iho Power's Metering Equipment, Interconnection Equipment, Disconnection liqttipmcnt. Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adeqtiam and continuing' access rights on property of Seller. Setter warrants that it has procured sufficient casculerits and rigIlls-ol'-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. - 19- 015125(15 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 7.2 Use of Public_Rights-of-Way - The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Iherelona, subject to Idaho Power's compliance with paragraph 17.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Firci rucs upon, along and over any and all pirbl ic roads, strccts and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities arid Idaho Power may ctri Lii was of arch public right_of-way for such purposes at a ny lime. Except as required by Paragraph 17.4, Idaho Power shall not he required to compensate Seller for exercising its rights under this paragraph 17.2. 17.3 Joint .JpJFacilities Sirh1u.t to Id ilto Power's compliance with paragraph 7 4 Idaho Powur may use and auiach its distribution and/or transmission facilities to Seller's interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to paragraph 7.2, attaching Seller's Interconnection Facilities to such newly constructed facilbies. ttxcepi as required by paragraph 17.4, Idaho Power shall not be required to compensate Seller for exercising its rights tinder this paragraph 17.3. 17.4 Cmctrrronjtiui. It izitho intention of the P'urrre (hat the Seller be left in substantially thu condition, both financially and electrically, as Seller existed prior to Idaho FlowdCs exercising its rights trader this Article XVII. Therefor, the Parties agree that the exercise by Idaho Power of ally of the rights enumerated in paragraphs 17.2 and 17.3 shall: (II comply with all applicable laws, codes and Prudent I:ilectrical Practices, (2) equitably share tIre costs of irssralliirg, owning and operating jointly used flici Idles and riglrt-of-way. If the Parties are unable to agree on tire method of apportioning these costs, the dispute will be subnuilted to the Commission for resolution and tile decision of the Commission will be binding on the Parties, and (3) shall -10- Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Article XVII. ARTICLE XVIII: L1ABlLlTY DEDICATION 18.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. AiTtCI .R 19.1 Except where specilically stated in this Agreement to be otherwise, the duties, obligations and iabi!itics of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall over be construed to create an association, trust, partnership or joint vCnitlie or impose it trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreenient. ARTICLE XX: \VAIVER 20.1 Any waiver at any time by either Party of its rights with respect to it default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARl'ICLE XXI: CilO[CE OF LAWS AND VENUE 21,1 This Agreement shall be construed and interpreted in accordance with the laws of the Stut of Idaho without reference to its choice of law provisions. 21.2 Venue For any litigation arising out of or related to this Agreentent will lie in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada. - 21- Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 ARTICLE XXII: DISPUTE'S AND DEFAULT 22.1 puts - All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission br resolution. 22.2 Notice ut Default - 22.2. Defaults. If either Party fails to perform any of the term ,,, or conditions of this Agreement (an event of default"), the nondefau Iti ng Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which tuch default occurred. If the dahiulting Party shall fail to cure such delSnit within the sixty (60) days after service of such notice, 01' if the defaulting Party reasonably demonstrates to the other Patty that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such etire, then, the nondefaulting Parry nay. at its option, terminate (his Agreement and/or pursue its legal or equitable remedies. 22.2.2 .MIttUiicbg The notice and cute provisions in paragraph 22.2.1 do not apply to cict'aults identified in this Agreement as Material l3retclies. Mirteriat Breaches must be cured as expeditiously as possible following occurrence of the breach. 22.3 Security-for Perlornianca - Prior to the Operation Date and thereafter for the full ICI'iTt of this grocn1eet, Stler will provide Idaho Power with the fotlowin: 223.1 Insurance - Evidence of compliance with the provisions of paragraph 5.2. If Seller fails to cotoply, such failure will be a Material Breach and may only he cured by Salter supplying evidence that the required insurance coverage has been replaced or reinstated; 22.3.2 its Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0 & M) from a Registered Professional Engineer licensed in the State of Idaho, which Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 Certification of Ongoing 0 & M shall he in the form specified in Appendix C. Seller's lilitre to supply the required certificate will bean event of default. Such a default may only be cured by Seller providing the required certificate; and 22.3.3 Lim nsejtjand Permits - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agicemetit. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4. 1. 1, If at any tune Seller fails to maintain compliance - with the permits and licenses described in paragraph 4. 1.1 or to provide the documentation required by this paragraph, such failure will bean event of default and may univ he cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. \RTICLEXXIEE:_G0VRNMENThJFU0RIZABQli 23.1 This Agreement is :.ubject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE XXIV: COMMISSION ORDER 24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and L'ovisiotn; hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes, IC1,EX2X3L..S.UCCESQR&AiSI(3NS 25.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inum to the benefit ol the respective successors and assigns of the Parties hereto, except that ito assigniitcnt hereof by either ['ally shall become effective without the written consent of both Parties being first obtained. Such consent shall not be unreasonably wilhltekl. Notwithstanding the foregoing, - "1- 2118/200 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of Consent or approval by the Setter, succeed to all 01 Idaho tower's rights, obligations and interests under this Agreement. This article shalt not pent a financing entity wli recorded or secured rights from exercising all rights and remedies available to it under law or C01111 40. tLlatiu Power Shalt hive the right to be notified by the financing entity that it is exercising such rights or remedies. AR'I'tCLE XXVt: MODIF[CATIOf4 26.1 No modification to this Agreement shall he valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTFCLE X& 11: 'FAXES 27.1 Each Party shalt pay belore delinquency all taxes and other governmental charges which, if failed to he paid when due, could result in it lien upon the Facility or the Interconnection Facilities. ARTICLIft XXVIII:_NOTLCftS .S. I All 'vritien notices tinder this agreement shall be directed as follows and shall be considered delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows: To Seller: Tuana (hi left Wind Park, L.L.C. Larry Leib 424 Dodge Ave Helena, Ml' 59601 24.. 2/i S/20ri Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 To IdahoPower: Ori"itial document to: Vice President, Power Supply Idato Power Company PD Box 70 Boise, Idaho 33707 Copvofdocumentto: Cogeneration and Small Power Production Idaho Power Company PC) Box 70 Boise, Idaho 83707 ARTICLE XXIX: ADDITEONAL TERMS AND CONDITIONS 29.1 This Agreement includes the following appendices. which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certilieadons ARTICLES XXX: SEVERA11111D 30.1 The invalidity or uncuforceahility of any term or provision of this Agreement shalt not affect the validity or citforceahility of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were oniitted. ARTICLE XXXI: COUNTERPARTS 31.1 This Agreement may be executed in two or more couuitetparts, each of which shall be deemed an original but all of which together shall constitute one and the sanic instrument. ARi'ICLN XXX II: LNTIRE AGRI:UMbN'F 32.1 This Agreement constituteS the entire Agreement of the Parties concerning the st.tbjcct matter hereof and supersedes all prior or contemporaneous oral or written tgreemetlls between the - 25- 5/2 05 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 Part es c.oneerit ing the subject rOaRer hereof. IN WITNESS WI-LEREOF, Ilie Parties hereto have caused this Agreement to be executed in their respect ie iaitio uu the dates seE look below; Idaho Power Cornt)anv LiinaGgiciL Wind Park L.LC. By By ..- N. \'eIii I'oitcr - .5'tr Power Supply Operations James Carkulis Dated Dated "Idaho Power' "Seller" 26- 2115/1010 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 APPENIMX A-1 MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end or each month the following required documentation Will be submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P0 Box 70 Boise. Idaho $3707 The Meter readings required on this report will he the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the niaxinlunh generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately admi ilister this Agreement. -27- '2111si)1305 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 28 Idaho PoNver Company Cogeneration and Snialt Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Name Project Number: Address - Phone Number: City State Zip Facility Station Station Metered nOutput aae age Maximum (mastisa .\tater Nwnbor: End of tMonth kWh Meter Reading: kW Beginning of Month kWh Meter: Difference: Times Meter Constant: Net Generation kWh for the Month: Metered Demand: Breaker Opening Record Breaker Closing Record L.-.-.i [.. _...j... ... ... ....... ._J_------- --... ------------..__..1 ltsakm flpnina R,asn,i ( nilis I Lack of Adequate Prime Mover 2 Forced Outage at Facility hereby certify that the above meter readings are trite and correct as of Midnight on the last day of the 3 Omtnrl,ance at System lP( :iltie month and that the switching record is accurate 4 Scheduled Maintenance and complete as required by the Firm Energy Sales 5 Testing of Protection Systems Agreement to which fallia Party. 6 Cause Unknown 7 Other (Explain) Signature Datv -2$- Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 A-2 ROU'rlNI REPORl1NG Idaho Power Contact Information giyjnergy Production Reporting Call daily by 10 an., 1-800-356-4$2 or 1-800-635-1093 and leave the following information: • Project Identification -Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unolanned Protect outages Call 1 800345 1.319 and leave the following information: • Project Identification - Project Name and Project Number • Approxunitte Ii me outage occurred • Esti mated day and time of project coming back online Sellers Contact Information Name: Telephone Number: Cell Phone: Telephone Number: 2it5120{iS Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 - 29- APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31315065 TUANA GULCH WEND PARK B-1 DESCRIPTION OF FACILITY The Facility will consist of 7 013 \-Vtnd turbines model 77 SLE with individual generator ratings of 1.5 MW for each unit, for a total Facility generator rating of 10.5 MW. 13-2 LOCATION OF E:AC1L ITT Near: I tagerman. Idaho Sections: j7i2, iS. 9 Township:. 7S Rauge:_flj_ County: Twin Falls Idaho. Sections Township; 6SRangc--ECounty:--IyJ Idaho. B-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected I cemb r.'j.1 -.-M as the estimated Scheduled First Energy Date. Seller has selected Junuy.l5. 2006 as the estimated Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the proicct being granted an Operation Date. klaho Power, based on the information supplied by the Seller, will schedule its construction in accordance with Schedule 72 and the Generation Interconnection Process. 0-4 MAXIMUM CAPACITY AMOUNT: This value will bu 10.5 MW which is consistent with the value provided by the Seller to Idaho Power in the Generation Interconnection process. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system it any moment in limit. -30- Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 B-S POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Setters Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power UettCi'(ttiOtl Interconnection process will determine the specific Poi fit of Delivery for this Facility. Upon completion of the Generation Interconnection process the Point of Delivery identified by this process will becutiic cii littegial part of this r\gieenicitt. 13-6 LOSSES tithe Idaho Power Motoring equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If file Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho l->ower Point of Delivery. This loss calculation will he initially set at 2% of the kWh energy, production recorded oil the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications. conductor sizes. etc) 01' all or the electrical equipment between the Facility antI the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at anytime during the term of thie Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical equipment between the Facility and the Idaho Power electrical systam. Idaho Power may adjust the etlet lalion and retroactively adjust the previotis months kWh loss calculations. B-I METERING AND TELldlU;TRY The Idaho Power Generation Interconnection process will determine the specific metering and tehenietry requireittents for this Facility. At the ntinimtiin the Metering Equipment and l'eteiactry - 31- Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 eqU)ment 111(151 be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurement,,; required to administer this Agreement. These specifications Will include but not be 111111ted to equipment specifications, equipment location, Idaho Power provided equipment. Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. The entire Generation lutereoiineciton process, including but not limitcd to the equipment specifications and requirements will become an integral part of this Agreement. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power',; use terminating at I lie Idaho Power mci I tic': capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of t'.e Monthly Operation and Maintenance Charges specified in Schedule 72. B-i SPECIAl. PACILITtFS The Idaho Power Generation Interconnection process will determine the Special Facility requirements for this Facility. These specifications will include but not he limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided ccllUpflient. the cot ire Generation Interconnection process, including but not limited to (lie equipment specifications and requirements will become an integral putt of this Agreement. Idaho Power owned equipment will he maintained by Idaho Power, with total cost 01 purchase, installation, operation, and maintenance, including adniinisteihh ye cost to he reinthured iii Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Special Facility cost will be included in the calculation of the Monthly Operation and :01 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 33 Maintenance Charges specified in Schedule 72. B-S REAfJTLVE POWER The Idaho Power Generation Interconnection process will determine the reactive power required to be supplted by Idaho Power to the Seller, based upon information provided by the Seller. The Generation [fl(ercOflflCCtIOn process will specify the equipment required on the Idaho Power system to meet the Facility's reactive power requirements. These specifications will inctude but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and at coats aissociated with the equipment, design and installation of' the Idaho Power provided equipment. The entire Generation Interconnection process, including bait not limited to the equipment specifications and t:jLt tt'enients Will become an integral part of this Agreement. Idaho Power owned equipment will he maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power Cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. B-c) DISCONNECTION EQUIPMENT Disconnection Equipment is required to insure that the Seller's Facility will he disconnected from Idaho Powers system in the event of ( I) the Setters delivery of energy exceeds the Maximum Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's F.iiliLy. 'the Idaho Power ()eneriition Interconnection process will determine the Disconnection Equipment specifications and requirements for this Facility, this equipment is for protection 01 the Idaho Power system and xluiprnent only. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided eqtttpment. Seller - 33- 2/1812005 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 provided equipment, and all costs associated with the equipment, design and installation of he Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire and conduit necessary lor the operation of the Disconnection Equipment. Through the Generation Interconnection process, Idaho Power will supply details for the disconnection panel and will lest the equipment prior to any operations of the Facility, Seller will provide drawings of their interconnection wiring for engineering approval prior to installation. The entire Generation lntercoiinection process, including but not limited to the equipment specifications and requirements will become an integral part of this Agreement. Idaho Power owned equipment will I- ned nia mad hy Idaho Priwar. with total cost of pnn'hnsts, imaallmion, nparaiim , and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total Disconnection Pqti i)il1Ci1l cost will he included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. 13-10 COSTS The Idaho Power Generation Interconnection process and this Agreement will identify all cost for this t'aci I ity In interconnect to the Idaho Power system, including but not Ii fluted to the cost of Metering equipment, Telemetry equipment, Special Facilities, Reactive Power. Disconnection equipment, Protection equipment and Interconnection Equipment. As specified in the Generation Intcccunncctioti process and in accordance with Schedule 72 and this Agreement the SctIcr will reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment, installation and construction charges as specified above, during the term of this Agreement, Seller will pay klili, Power the iliojulily operation and niainiensnce charge specified in Sclie,.luk 72 or is successor schedules(s). The monthly operations and maintenance charge will begin on the first day of the month following file dale which Idaho Power has completed installation of the lilaho Power provided eqtilpinent and [lie interconnection equipment is iVai able for use by the Facility. The monthly operat OilS and maintenance charge will be based upon the initial cost paid 34- 2/I 5(21)55 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance with Schedule 72 the monthly operations and maintenance charge will he adiustecl to rerlect the actual cost incurred by Idaho Power and previously charged monthly operation and maintenance expense will he revised to reflect the actual cost incurred by Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the adtusted monthly operations and toalniornutce charge within sixty (60) days of the determination of this amount. B- I I SALVAGE No later than Sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished Interconnection Facilities as required under Schedule 72, the Generation Interconnection Process and/or described in this Agreement, less the cost ol removal and transfer to Idaho Power's nearest warehouse. if the Interconnection Facilities will be removed. If Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by klzilio Power and Idaho Power shall pay such amount to Seller Within thirty (30) days after receipt or the invoice. Seller shalt hitiVO the right tu offset the invoice amount against any present or future payments due Idaho Power. -35- 2/11V2005 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 APPENDIX C ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersi 'ned , Oil behalf of lii maci I and hereinafter collectively referred to as "Engineer", hereby slates and certifies to Idaho Power as follows: That Engineer is a Liccnscd Professional Engineer in good standing in the State of Idaho. 2. That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter 'Agreement', lWw'on Idaho Power as Buyer, and ... as Seller, dated J. That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as ll'Co Facility No and is hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Project, is located in Section '1'ownshj_, Range , Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a () year period. 6 That it I n& n.t It t substantial experience to the design, construction and operation of electric power plants of the ',tnie type as this Pmject 7. That Engineer has no economic itlat ionsltip to file Design Engineer of this Project and has made the analysis of the plans and specifications ittclepcttdcnt ly. S. 'l'hai Etigirteer has reviewed the engineering design and construction of the Project including the civil work, electrical work, generating equipment, prime mover con vewince system. Seller furnisher] Interconnection Facilities and oilier Project facilities and equipment. - 40- 2/i 5/2(50 Exhibit 2109 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 37 9. That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. tO. That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices For it _...) year period. II. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineers and opinions contained in this Statement- 12, That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below By (P.LStamp) Date 2/I Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 I APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned ___.__.---------------.__. on behalf of himself and , hereinafter collectively referred to as "Engineer," hereby states md cent fies to the Seller as follows: 1.'First Engineer ise Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed tile Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dared 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCO Facility No. and is hereinafter referred to as ire 'Project." 4.That he Project, which is commonly known as the Project. is located in Sectlon , Township Range , Boise Meridian, -. County, Idaho. S. That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for n twenty (20) year period. 6. That Engineer has substantial experience in the design, construction and Operation or electric power plants of the same type as this Project. 7 That Engr aner has no econoitric relal ioiisltip to the Design Engineer of this Project. 8. That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for [hi', Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the - .36- Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 Project's prodtttg at or oear the design electrical output, efficiency and plant factor for a twenty (20) year period. 9.That fngineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and thcrcforc sets his hand and seal bolow. By (PE. Stamp) Date Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 37- APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The inidcrsi"jicd , on behalf of himself and -- hereinafter collectively referred to its "Engineer," hereby states and certifies to the Seller as follows: That Engineer is a Licensed Professional Engineer in good standing in the St',its of lsl:iho. 2.That Engineer has reviewed the Energy Sales Agi'ceinent, hereinafter 'Agreeioent," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as I PCo Facility No. and hereinafter referred to as the Project". 4.That the Protect, which is commonly known as Project, is located at 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power fora twenty (20) year period. 6.That I2ngi near has substantial experience in the design, euisstruetion and Operation ol' electric power plants of the same type as this Project. 7.That littgincer has no economic relationship to the Design Engineer of this Project. ii. That Engineer has made a physical inspection of said Project. its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is ill reasonably good operating condition; littd that if adherence to said O&M Policy eOtutinttes, the Project will continue producing at or near its design electrical output, efficiency and plait factor for the 38- 2111/20115 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 remaining years of the Agreement. 9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineers represonttiiions and opinions contained in this Statement. JO. '[hat Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By T.E. Stamp) Date -39- N 1 5121)05 Exhibit 2109 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND CAMP REED WIND PARK, LLC TABLE OF CONTENTS Article TITLE Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy S Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment S Environmental Attributes 9 Facility and Interconnection 10 Metering and Telemetry It Records 12 Operations 13 Indemnification, and Insurance 14 Force Majeure 15 Liability; Dedication 16 Several Obligations 17 Waiver I 8 Choice of Laws and Venue 19 Disputes and Default 20 Governmental Authorization 21 Commission Order 22 Successors and Assigns 23 Modification 24 Taxes 25 Notices 26 Additional Tcnns and Conditions 27 Severability 28 Counterparts 29 Entire Agreement Signatures Appendix ! Appendix B Appendix C Appendix D Appendix F Appendix F Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) Project Name: Camp Reed Wind Park, LLC Project Number: 3I31_ S ( THIS AGREEMENT, entered into on this ,j,( day of J t 2009 between CAMP REED WIND PARK, LLC (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as 'Party." Wm13SsETn: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTJCLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: 1.1 "Calculated Net Energy Amount" -The Nameplate Capacity of the Facility multiplied by the total hours in the applicable month minus the estimated Lost Energy Production, and minus the estimated Station Use associated with the Lost Energy Production. 1.2 'Commission" - The Idaho Public Utilities Commission. 1.3 "Contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. 1.4 "Delay Liquidated Damages" - Damages payable to Idaho Power as calculated in paragraph 5.3, 5.4, 5.5 and 5.6. 1.5 "Delay Period" - All clays last the Scheduled Operation Date until the Seller's Facility achieves the Operation Date. 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 El 1.6 "Delay Price" - The current month's Mid-Colunjbja Market Energy Cost minus the current month's All Flours Energy Price speciliecl in paragraph 7.3 of this Agreement. If this calculation results in a value less than 0, the result of this calculation will he 0. 1.7 "esigigjDisatchFacjj(" Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.8 "Enemy Shortfall Price" - The current month's Mid-Columbia Market Energy Cost minus the current month's All Hours Energy Price specified in paragraph 7.3 of this Agreement. If this calculation results in a value less than 15.00 Mills/Kwh the result shall be 15.00 Mills/Kwh. 1.9 "Facility" - That electric generation facility described in Appendix B of this Agreement. 1.10 "First gv Date" - The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 1.11 "Forced Outage" - a partial or total reduction of a) the Facility's capacity to produce and/or deliver Net Energy to the Point of Delivery, orb) Idaho Power's ability to accept Net Energy at the Point of Delivery for non-economic reasons, as a result of Idaho Power or Facility: I) equipment failure which was not the result of negligence or lack of preventative maintenance or 2) unplanned preventative maintenance to repair equipment that left unrepaired, would result in failure of equipment prior to the planned maintenance period. The Parties sisall make commercially reasonable efforts to perform this unplanned preventative maintenance during Periods of low wind availability or 3) responding to a transmission provider curtailment order. 1.12 "Heavy Load Hours" -. The daily hours beginning at 07:00 am, ending at 11:00 pm Mountain Time, (IS hours) excluding all hours on all Sundays, New Years Day, Memorial Day, Fourth of .Iuly, Labor Day, Thanksgiving and Christmas. 1.13 "Inadvertent linejgy" - Electric energy Seller does not intend to generate. Inadvertent Energy is more particularly described in paragraph 7.5 of this Agreement. 1.14 "Interconnection Facilities' - All equipment specified in Idaho Power's Schedule 72. -2- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 1.15 itialCgciiy Determination" —The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 116 "Lieht Load Flours" -'file daily hours beginning at 11:00 pm, ending at 07:00 am Mountain Time (8 hours), plus all other hours on all Sundays, New Years Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas. 1-17 "kges" -The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement. 1.18 "Lost Net Energy Production" - A monthly estimate after the fact, prepared and documented by Seller and accepted by the Buyer, of the Seller's Facility's individual generation Unit's energy production that was not delivered as Net Energy due to: 1) periods where the level of Sufficient Prime Mover were outside the manufacturer's acceptable operating range for the wind turbine generator, 2) incidents of Force Majeure, 3) scheduled maintenance, or 4) incidents of Forced Outage. if any of the above listed events (measured on each individual occurrence and individual generation unit) lasts for Less than 15 minutes, then no Lost Energy Production will be calculated. Calculation of the amount of Lost Energy Production will be the verifiable duration (not less than IS minutes) of the event multiplied by the Nameplate Capacity reduction of only the affected generation unit(s) occurring as a result of the event multiplied by the expected capacity factor which would have occurred during this time period less any Losses that would have been associated with this calculated Lost Net Energy Production. It is understood by the Parties, that a specific generation units outage may indirectly impact other fully operational generation units, in which ease the forced outage calculation could extend to the other impacted generation units. Example - if a single turbine with a Nameplate Capacity rating or 2.1 MW suffers a 100% gear box failure that was not a result of negligence or lack of preventative maintenance (Forced -3- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Outage) and it takes 48 hours to replace the gear box, and other generation units in the immediate vicinity of this generation unit operated at a 30% capacity factor during this 48 hour period then the amount of Lost Energy Production will be; 48 hours X 2.1 MW X 30% = 30.24 MWh (30,240 kWh) 1.19 "Market Enemy Reference lce" - Eighty-live percent (85%) of the Mid-Columbia Market Energy Cost. 1.20 "Material Breach" - A Default (paragraph 19.2.1) subject to paragraph 19.2.2. 1.21 "Maximum Capacity Amount".- The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.22 "Mechanical Avai1kjljty" - The percentage amount calculated by Seller within 5 days after the end of each month of the Facility's monthly actual Net Energy divided by the Facility's Calculated Net Energy Amount for the applicable month. Any penalty associated with falling short of the Mechanical Availability Guarantee for each month shall be determined in accordance with paragraph 6.4.4. - 1.23 "Mechanical Availability Guarantee" shall he as defined in paragraph 6.4. 1.24 "Metering EQuiument" - All equipment specified in Schedule 72, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter hi- lirectional power flows between the Seller's Facility at the Seller's individual generation Facilities and the Point of Delivery on the Idaho Power electrical system. 1.25 "Mid- Columbia Marke Enemy cost" - The monthly weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid-Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.26 "Nameplate Capacity" —The full-load electrical quantities assigned by the designer to a generator and its prime mover or other piece of electrical equipment, such as transformers and circuit -4- 71'0/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 breakers, under standardized conditions, expressed in amperes, kilovolt-amperers, kilowatts, volts or other appropriate units. Usually indicated on a nameplate attached to the individual machine or device. 1.27 "Net Enerey" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh) delivered to Idaho Power at the Point of Delivery. Subject to the terms of this Agreement, Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the lull term of the Agreement. Net Energy does not include Inadvertent Energy 1.28 "Operation Date" -The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.29 "Point of Delivery" - The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.30 "Prudent Electrical Practices" Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, safely, dependably, efficiently and economically. 1.31 "Scheduled Oneration Date" - The date specifIed in Appendix B when Seller anticipates achieving the Operation Date. in establishing this date it is expected that the Seller reasonably determines this date is based upon the best known information in regards to equipment availability and construction schedules .32 "Schedule 72" - Idaho Power's Tan If No 101, Schedule 72 or its successor schedules as approved by the Commission. The Seller shall be responsible to pay alt costs of interconnection and integration of this 1-a I cility into the Idaho Power electrical system as specified within Schedule 72. 1.33 "Season" —The three periods identified in paragraph 6.2.1 of this Agreement. 1.34 "Special Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Schedule 72. 1.35 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. To calculate the Station Use value for use 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 in the Mechanical Availability calculation, the previous period's actual Station Use will be used as a basis. 1.36 "$ufficient Prinje means wind speed that is (1) equal to or greater than the generation unit's manufacturer-specified minimum levels required for the generation unit to produce energy and (2) equal to or less than the generation unit's manufacturer-specified maximum levels at which the generation unit can safely produce energy. 1.37 "Surjn" - All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.3 "Total Cost of the Facility" -Tie total replacement cost of structures, equipment and appurtenances. 1.39 "Wind Energy Production Forecast" - A forecast of energy deliveries from this Facility provided by an Idaho Power provided wind forecasting model. The Facility shall be responsible for an :illocated portion of the total costs of the forecasting model as specified in Appendix E. ARTICLE 11: NO RELIANCE ON IDAELOPOW ER 2.1 Seller Independent Investigation - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined That it is capable of performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent Experts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. -6- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 ARTICLE III: WARRANTIES 3.1 No Warranty by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qualifying Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term is used and defined in 18 CFR 292.201 et seq. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Enor' Date and as a condition of Idaho l'ower's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compLiance with Subpart B, 18 CFR 292.201 Ct seq. and a Qualifying Facility certificate. 4.1.2 Opinion of Counsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an Opinion that Seller's Licenses, permits and approvals as set forth in paragraph 4.1.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter -7- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the tbrm will not be unreasonably withheld. The Opinion Letter will be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1.3 Initial capacity Determination- Submit to Idaho Power such data as Idaho Power may reasonably require to perform the initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource chanictetistics, normal and/or average operating design conditions and Station Use data. Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination Within a reasonable time. 4.1.3.1 If the Maximum Capacity specified in Appendix B of this Agreement and the cumulative manufacturer's Nameplate Capacity rating of the individual generation units at this Facility is less than 10 MW, the Seller shall submit detailed, manufacturer-specific, verifiable data of the Nameplate Capacity ratings of the actual individual generation units to be installed at this Facility. Upon verification by Idaho Power that the data provided establishes the combined nameplate rating of the generation units to be installed at this Facility is less than 10 MW, it will he deemed that the Seller has satisfied the Initial Capacity Determination for this Facility. 4.1.4 Namppl tc Cao itv— Submit to Idaho Power Manufacturer's and engineering documentation that establishes the Nameplate Capacity of each individual generation unit that is included within the entire Facility. Upon receipt of this data, Idaho Power shall review the provided data and determine if the Nameplate Capacity specified is reasonable based upon the Manufacturer's specified generation ratings for the specific generation units. 8- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 4.1.5 Enaineer's Certifications - Submit an executed Engineer's Certification of Design & Construction Adequacy and an Engineer's Certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.6 Insurance - Submit written proof to Idaho Power of all insurance required in Article XIII. 4.! .7 Interconnection - Provide written confirmation &om Idaho Power's delivery business unit that Seller has satisfied all interconnection requirements. 4.1.8 Network Resource Designation - 4.1.8.1 Provide all data required by the Idaho Power delivery business unit to enable the Seller's Facility to be designated as a network resource. 4.1.8.2 Receive confirmation from the Idaho Power delivery business unit that the Seller's Facility has been designated as a network resource. 4.1.9 Reserve Accounts - Demonstrate to Idaho Power's satisfaction that the Seller has established and funded (1) a debt service reserve account in a form and with a fund holder which complies with paragraph 19.3.2 and (2) demonstrate to Idaho Power's satisfaction that the Seller has established a maintenance reserve account in a form and with a Rind holder acceptable to Idaho Power. Said maintenance reserve account shall be structured and ftindecl as follows: 4.t.9.1 All funds will be prudently invested, in a guaranteed, insured account and all cost of implementing and operating the maintenance reserve account shall be paid by the Seller. All interest earned on the funds on deposit will be retained in the maintenance reserve account. At the end of the term of this Agreement, any balance remaining in the maintenance reserve account shall be the property of the Seller. 4.1.9.2 Within 60 days after the completion of each contract Year, the Seller will deposit cash in the maintenance reserve account in an amount equal -9- 7/612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 to, or exceeding 5% of the Facility's estimated gross income for the ensuing Contract Year, less an amount equal to the Facility's actual maintenance, repair and replacement expenses (maintenance expenses) incurred during the prior Contract Year. At Seller's option, the cash required hereunder to be maintained in such reserve may be replaced by an irrevocable standby letter of credit in the same amount. 4.1.9.3 The minimum amount of deposit retained in the maintenance reserve account shall be 2,000,000. This minimum amount will be adjusted either upward or downward to reflect current replacement cost of a complete wind turbine/generator. (i.e. tower, nacel(e, generator, control unit, associated wiring, em) This adjustment will ho made at the beginning of each 3t contract year and the replacement value determined by the replacement cost valuation methods as described within paragraph 13.2.6.c. In the event this adjustment results in a balance in this account exceeding 10% of the actual replacement cost of a complete wind turbine/generator then the Seller may request a disbursement of funds as specified in paragraph 4.1.9.6. 4.1.9.4 At the time Seller makes the deposit described in paragraph 4.1.9.2, Seller will provide Idaho Power with an accurate, verifiable report showing the prior Contract Year's actual maintenance expenses, identified by appropriate FERC maintenance account number, and the estimate of the Facility's gross income for the ensuing Contract Year used to compute the deposit amount, together with documentation supporting the estimate of gross income. 4.1 .9,5 If at any time it appears that the maintenance expense for that Contract Year will exceed 5% of the Facility's estimated gross income for that Contract Year, the Seller may request that Idaho Power consent to the - 10- 7/612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 release of funds from the maintenance reserve account in an amount sufficient to pay the anticipated additional maintenance expenses. The request must include documentation supporting the Seller's projection of excess maintenance expense, identified by appropriate FERC maintenance account number, and such documentation shall be submitted to Idaho Power, Upon approval by Idaho Power, the required funds will be released to Seller in accordance with Paragraph 4.1.9.6. 4.1.9.6 Control of the maintenance reserve account will be maintained by Idaho Power through the requirement of dual signatures on the account. The only authorized signers will be the Chief Operating Officer and the Chief Financial Officer of Idaho Power (or their respective designees) and the Treasurer of Seller (or his/her respective designee. Accordingly, funds will only be released from the maintenance reserve account upon the signatures of both Idaho Power authorized signers or one Idaho Power authorized signer and Seller's authorized signer. 4.1.9.7 At the end of each Contract Year, Seller will provide Idaho Power with evidence of compliance with the maintenance reserve account requirements set out in this Agreement. 'this evidence of compliance will be provided in a manner and form acceptable to Idaho Power. The maintenance reserve fund will be subject to the lien rights described in paragraph 4.1.10 below. 4.1.9.8 If the Facility has established a maintenance reserve account in a form and amount that meets or exceeds the maintenance reserve requirements as defined below for compliance with other parties having a financial interest in this Facility, the Seller shall provide Idaho Power with documentation of those requirements and upon Idaho Power's acceptance that the financial maintenance reserve requirements meet or - II- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 exceed the requirements within this Agreement, Idaho Power will accept this financial maintenance reserve account as meeting these requirements If Idaho Power accepts, this financial maintenance reserve account, it will be required that within 60 days of. the end of each Contract Year the Seller provide rdaho Power documentation of the balance within the financial maintenance reserve account and the previous year's activity within the account. Idaho Power reserves the right to require the Seller to provide a maintenance reserve account as specified below at any time during the term of this Agreement if Idaho Power determines that the Seller's financial maintenance reserve account no longer meets or exceeds these requirements. 4.1.10 Security Interests -Provide Idaho Power with acceptable security against Seller's default under this Agreement. Acceptable security will conform to Commission Order No. 21690 and No. 21800 and may include, but will not be limited to (1) title insurance, security interests in the real property associated with the Facility, xtuipment, fixtures, contracts, permits, easements, rights-of-way, land use agreements, funds held in escrow in which Seller has an interest and that relate to the operation of the Facility, and other reasonable security arrangements consistent with the Facility's financing and ownership arrangements; or (2) the seller may Post liquid security in an amount equal to at least thirty live percent (35%) of the Accumulated Overpayment Amount specified for that year in Appendix F. 4.1.10.1 Idaho Power's security interests will be superior and senior to all liens other than the first mortgage lien and other security interests permitted in accordance with paragraphs 4.1.10.2. The Seller shall be responsible for all costs reasonably incurred by Idaho Power to review and perfect this security interest not to exceed $15,000. - 12- 7/612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 4.1.10.2 If Setter desires to incur a first mortgage lien or other security interests that will be superior to Idaho Power's security interests in the Facility, at least twenty-one (21) days prior to their execution, Seller shall provide Idaho Power with draft copies of the deeds of trust, mortgages and other security agreements that will be used to secure such first lien. Upon their execution Seller shall provide Idaho Power with copies of the executed first lien documents. The executed first lien documents shall not be assigned, amended, modified, or extended, and no replacement or refinancing of any nature shall be undertaken, without Idaho Power's prior written consent which consent shall not be unreasonably withheld, in no event will the amount of any first mortgage lien exceed $56,250,000. The total amount of all refinanced or replaced first liens shall not exceed the unpaid principal balance of the first mortgage liens they replace. 1.10.3 Other than the first mortgage liens permitted herein, or temporary mechanic's, statutory or similar liens incurred in the ordinary course of business in an amount not to exceed in aggregate $50,000, Seller will not permit any liens or encumbrances of any nature whatsoever to be placed on the Facility without Idaho Power's prior Written Consent, which consent will not be unreasonably withheld. If any unpermitted lien or encumbrance is placed on the Facility, Seller will provide Idaho Power with a bond, insurance or other security acceptable to Idaho Power in an amount sufticient to secure the full discharge of such unpermitted lien or encumbrance. 4.1.10.4 During the remaining term of this Agreement, Seller shall maintain compliance with all requirements of Idaho Power's security interests described above in paragraph 4.1.10 of this Agreement and - 13- 7/6t2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Comniissjon Order No. 21690. Seller's failure to comply with those requirements, will be an event of default and in addition to any other remedies available under this Agreement, Commission Order No. 21690, and the security interests, Seller will be required by Idaho Power to post liquid security ("Performance Security") in a form as specified in Appendix 0 in an amount equal to at least thirty five percent (35%) of the Accumulated Overpayment Amount specified for that year in Appendix F. Failure to maintain and provide the liquid security required by this Agreement and Commission Order No. 21690 and No. 21800 shall be an event of default. 4, 1.11 Written Acceptance - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been futfille<L Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V; TERM AND OPERATION DATE 5.1 - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shalt continue in full force and effect for a period of twenty (20) Contract Years from the Operation Date. 5.2 Operation Date -The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement iii a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and safe manner, (i) Seller has requested an Operation Dale from Idaho Power in a written format. 14- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 e) Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power. 5.3 Seller shall cause the Facility to achieve the Operation Date on or before the Scheduled Operation Date. 53.1 If the Operation Date occurs after the Scheduled Operation Date but prior to 90 days past the Scheduled Operation Date, Seller shall pay Idaho Power Delay Liquidated Damages calculated monthly as follows: Delay Liquidated Damages are equal to ((Current month's initial Year Net Energy Amount as specified in paragraph 6.2.1 divided by the number of days in the current month) multiplied by the current months Delay Period) multiplied by the current months Delay Price. 5.3.2 If the Seller's Facility has not achieved the Operation Date within 90 days after the Scheduled Operation Date, the Seller shall pay Idaho Power Delay Liquidated Damages calculated as follows: Twenty dollars (520) multiplied by the Maximum Capacity Amount with the Maximum Capacity Amount being measured in KW. 5.4 If Seller fails to achieve the Operation Date within ninety (90) days oIler the Scheduled Operation Date, such failure will be a Material Breach and Idaho Power may terminate this Agreement. 5.5 Seller shall pay Idaho Power any calculated Delay Liquidated Damages within seven (7) days of when Idaho Power calculates and presents any Delay Liquidated Damages billings to the Seller. Seller's failure to pay these damages within the specified time will be a Material Breach of this Agreement and Idaho Power may draw funds from the Delay Security provided by the Seller in an amount equal to the calculated Delay Liquidated Damages. 5,6 The Parties agree that the damages Idaho Power would incur due to delay in the Facility achieving the Operation Date on or before the Scheduled Operation Date would be difficult or impossible to predict with certainty, and that the Delay Liquidated Damages are an appropriate approximation of such damages. 15- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 5.7 Within thirty (30) days of the date of a Commission Order as specified in Article XXI approving this Agreement; Seller shall post liquid security ("Delay Security") in a form as described in Appendix D equal to or exceeding the amount calculated in paragraph 5.7.1. Failure to post this Delay Security in the time specified above will be a Material Breach of this Agreement and Idaho Power may terminate this Agreement. 5.7.1 Twenty dollars ($20) multiplied by the Maximum Capacity Amount with the Maximum Capacity Amount being measured in W. 5.7.1.1 If the Seller provides Idaho Power with certification that a generation interconnection agreement specifying a schedule that will enable the Facility to achieve the Operation Date no later than the Scheduled Operation Date has (I) been completed and the Seller has paid all required interconnection costs or (2) a generation interconnection agreement is substantially complete and all material costs of interconnection have been identified and agreed U0fl and (3) the Seller is in compliance with all terms and conditions of the generation interconnection agreement, the Delay Security calculated in accordance with paragraph 5.7.1 will be reduced by ten percent (101/6). 5.7.1.2 If the Seller has received a reduction in the calculated Delay Security as specified in paragraph 5.7.1.1 and subsequently (I) at Seller's request, the generation interconnection agreement specified in paragraph 5.7.1.1 is revised and as a result the Facility will not achieve its Operation Date by the Scheduled Operation Date or (2) if the Seller (toes not maintain compliance with the generation interconnection agreement, the full amount of the Delay Security as calculated in paragraph 5.7.1 will be subject to reinstatement and will be due and owing within 5 business (lays from the date Idaho Power requests reinstatement. Failure to timely reinstate the Delay Security will be a Material Breach of this Agreement. 5.7.2 Idaho Power shall release any remaining security posted hereunder after all calculated Delay Liquidated Damages are paid in full to Idaho Power and the earlier of (1) 30 days 16- 7/6t2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Lifter the Operation Date has been achieved or (2) 120 days after the termination of this Agreement. 5.7.3 Early Termination Payment At any time after the Operation Date has been achieved, Idaho Power terminates this Agreement due to any default by the Seller, Seller will make a termination payment to Idaho Power. The termination payment will include but not be limited to the Accumulated Overpayment Amount speciliecl in Appendix F of this Agreement. ARTiCLE VE: PURCHASE AND SALE OF NET ENERGY 6.1 jjv' and Accentance of Net Energy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All fliadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts. These amounts shall be consistent with the Mechanical Availability Guarantee. - 17- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 6.2.1 initial Year Monthly Net Ener M Amounts: Month kWh March 6,413,596 Season 1 April 6,196,081 May 5,823,197 July 3,902,847 August 4,045,786 Season 2 November 4,698,332 December 3,394,381 June 5,089,860 September 4,505,676 Season 3 October 5,164,437 January 5,611,897 February 5,307,375 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. 6.4 Mechanical Availability Guarantee - After the Operational Date has been established, the Facility shall achieve a minimum monthly Mechanical Availability of 85% for the Facility for each month during the Li.ilt term of this Agreement. (the "Mechanical Availability Guarantee"). Failure to achieve the Mechanical Availability Guarantee shall result in Idaho Power calculating damages as specified in paragraph 6.4.4. 6.4.1 At the same time the Facility provides the Monthly Power Production and Switching Report, (Appendix A) the Seller shall provide and certify the calculation of the Facility's current month's Mechanical Availability. The Seller shall include a summary of: (a) Forced Outages, (b) Force Majeure events, (c) wind speeds and the impact on generation output and (c) scheduled maintenance and Station Use information thai was used to calculate the current month's Mechanical Availability -18- 716/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 6.4.2 The Facility shall maintain detailed documentation supporting its calculation of the Facility's Mechanical Availability. These records will be retained for three years. 6.4.3 Idaho Power shall have the right to review and audit the documentation supporting the calculation of the Facility's Mechanical Availability at reasonable times at the Seller's offices. 6.4.4 If the current month's Mechanical Availability is less than the Mechanical Availability Guarantee, damages will be calculated as: The Mechanical Availability Guarantee multiplied by the Facility's aggregate Nameplate Capacity of all generation units at the Facility multiplied by the hours of the month minus the current month's measured Losses and Station Use minus the month's actual Net Energy deliveries multiplied by the Energy Shortfall Price. 6.4.5 Any damages calculated in paragraph 6.4.4 will be offset against the current month's energy payment. If an unpaid balance remains after the damages are offset against the energy payment, the Facility shall pay in fttll the remaining balance within tifteen (15) days of the date of the invoice. ARTICLE VII: PURCHASE PRICE AND METE-IOD OF PAYMENT 7.1 gavy Load Purchase Price - For all Net Energy received during Heavy Load Hours, Idaho Power will pay the levelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30744, 30738 and adjusted in accordance with Commission Order 30415 for Heavy Load Flour Energy deliveries, and adjusted in accordance with Commission Order 30488 for the wind integration charge and with seasonalization factors applied: - 19- 716/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Season I - (73.50%) Season 2- (120.00%) Season 3- (100.00 %) Mills/kWh Mills/kWh Mills/kWh 63.65 106.47 87.64 7.2 ,ight Load Purchase Price-- For all Net Energy received during Light Load Flours, Idaho Power will pay the levelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30415 for Light Load Hour Energy deliveries, and adjusted in accordance with Commission Order 30488 for the wind integration charge and with seasonalization factors applied: * Season 1 -(73.50%) Season 2 -(120.00%) Season 3-(100.00 1/16) Mills/kWh Mills/kwh Mills/kWh 58.73 97.73 80.36 7.3 All Hours Energy Price - The price to be used in the calculation of the Surplus Energy Price and Delay Damage Price shall be the levelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30744, 30738 and adjusted in accordance with Commission Order 30488 for Elie wind integration charge and with seasonalization factors applied: Season 1 -(73.50 %) Season 2 -(120.00 %) Season 3 - (100.00%) Mills/kWh Mills/kWh MillsfkWth 61,47 102.58 84.40 7.4 rnjgs Enert'.Pçjce - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Reference Price or the All Flours Energy Price specified in paragraph 7.3, whichever is lower. 7.5 inadvertent Enctgy 7.5.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was -20- '71611,2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 delivered. (For example January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be Inadvertent Energy.) 7.5.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy. 7.6 Payment Due Date Energy payments, less Wind Energy Production Forecasting Monthly Cost Allocation (MCA), will be disbursed to the Seller within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Mechanical Available Guarantee and the Net Energy actually delivered to Idaho Power as specified in Appendix A. 7.7 Continuingjp.risdiction of the Commission This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with kktho Power Company v. Idaho Public Utilities Commission and 4/ion Energ,v, Inc., 107 Idaho 781, 693 P.2d 427 (1984), Idaho Power Company v. Idaho Public Udiiik' Commission, 107 Idaho 1122, 695 P.2d 1261 (1985), iJion Energj4 Inc, v. Idaho Power Company, 111 Idaho 925, 729 P.2d 400 (1986), Section 210 of the Public Utilities Regulatory Policies Act of 1978 and IS CFR 292,303-308 ARTICLE VIII: ENVIRONMENTAL ATFRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes, Environmental Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits (RE-Cs) and Tradable Renewable Certificates (TRCs) directly associated with the production of energy from the Seller's Facility. 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wnd Partners I, LLC Page 22 ARTICLE TX: FACILITY AND INTERcoNNECTION 9.1 Design of 1-'cilit.y - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. JiCLFi X: METERING AND TELEIVICTRY 10. I Mg(eng- Idaho Power shall, for the account of Seller, provide, install, and maintain Metering and Telemetry Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with this Agreement and Schedule 72. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) at the Point of Delivery in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. 10.2 gleictry - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy Produced and delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility. -22- WCV2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 ARTICLE XI RECORDS 11.1 Maintenance of Records - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records in a form and content recommended by Idaho Power. 11 .2 Insoection - Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. LI'ILE XII: OPERATIONS 12.1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. 12.2 Energy Acceotane - 12.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Mijeure, Forced Outage or temporary disconnection of the Facility in accordance with Schedule 72. if, for reasons other than an event of Force Majeure or a Forced Outage, a temporary disconnection under Schedule 72 exceeds twenty (20) (lays, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 12.2.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Powers equipment, personnel or service to its customers, Idaho Power may temporarily disconnect the Facility from Idaho Power's transmission/distribution system as specified -23- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 12.2.3 Under no circumstances will the Seller deliver Net Energy and/or fnadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount at any moment in time. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 12.3 Scheduled . Maintenance - On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance fbr that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 12.4 Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 12.5 Contact Prioi urtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt the interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events, Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. &.21CLE XIII: INDEMNIFICATION AND INSURANCE 13.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its ofticeis, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and Liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or 24- 7/0120(J9 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 maintenance of or by failure of any of such Party's works or facilities used in connection with this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all documented costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 13.2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage; 13.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.2 Alt Risk Property Insurance with minimum limits not less than eighty percent (80%) of tile Total Cost of the Facility. The Property Insurance coverage must he written on a RpIaccment Cost basis and will include: (a)Standard tire policy (b)Extended coverage endorsement; and (c)Vandalism and malicious mischief endorsement. (d)The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.3 Boiler and Machinery insurance with minimum limits not less than eighty percent (80%) of the total Replacement Cost of the equipment covered in (a) below: (a)All boiler and machinery coverage must be written on a "comprehensive form" basis to provide coverage against the sudden and accidental breakdown of alt boilers, machinery and electrical equipment, turbines, generators, and switchgear. (b)Coverage under this insurance must be written on a Replacement Cost basis: and -25- W&2001) Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 (c) The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.4 Earthquake & Flood (catastrophic perils) Insurance with limits not less than eighty percent (801/6) of the Total Cost of the Facility. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.5 Business Interruption (Loss of Income) Insurance with minimum daily limits not less than twenty percent (20%) of the Facility's estimated annual income; (a)Coverage will include Seller's loss of earnings when business operations are curtailed or suspended because of a loss due to an insured peril. Coverage may be written on an actual loss sustained basis. (b)This insurance coverage must be endorsed to both the All Risk Property Insurance Policy and the Boiler and Machinery Insurance Policy; c) The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. (d)The estimated annual income shall be computed on the basis of the Net Energy Amounts contained in paragraph 6.2. 13.2.6 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (ii) An endorsement naming Idaho Power as an additional insured and toss payee as applicable; and (b) A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. (c)In the case of the insurance coverages described in sub-paragraphs 13.2.1, 13.2.2, 132.3, and 13.2.4 above, the Total Cost of the Facility will include any Seller- furnished Disconnection Equipment and/or Interconnection Facilities. The Total Cost of the Facility and total Replacement Cost of equipment will be adjusted either upward or downward to reflect the current replacement cost of the Facility -26- 7/6/2009 Exhibit 2110 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 27 or equipment. This adjustment will be based on either (I) an appraisal made by, or for, the Seller's insurance company, or (2) use of an approved "industrial Cost trend index" published by a national insurer (i.e., Factory Mutual Engineering and Research Building Cost Index; Kemper Replacement Value Cost Trends - Industrial Machinery & Equipment; Industrial Risk Insurers, U.S. Replacement Cost Factors) (3) any other mutually agreed upon methodology of establishing the total replacement cost. Such adjustment shall be made, at a minimum, every fifth Contract Year during the term of this Agreement. A copy of these computations and/or appraisals will be submitted to Idaho Power for Idaho Power's review and approval. 13.2.7 insurance Alternatives - Comprehensive General Liability Insurance as defined in paragraph 13.2.1 will be required at all times throughout the term of this agreement. Alternative arrangements creating equivalent protection for Idaho Power in lieu of the insurance reouirements specified in paragraphs 13.2.2, 13.2.3, 13.2.4 and 13.2.5 of this Agreement may be submitted to Idaho Power for review. Only upon Idaho Power's written acceptance of these alternate arrangements may the Seller be allowed to forgo the insurance requirements of paragraphs 13.2.2, 13.2.3, 13.23 and 13.2.5 of this Agreement. Any and all acceptable alternative arrangements must place Idaho Power in an equal or better position in the event of the occurrence of an insurable event. 13.3 Seller to Provide Certificate of Insurance - As required in paragraph 4J.6 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 13.4 Seller to Notify Idaho Power of Loss of Coysrage If the insurance coverage required by paragraph 13.2 shall lapse for any reason, Seller will immediately notiry Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is 27- 716!2009 Exhibit 2110 GNR-E-1 1-03 R. Guy; Idaho Wind Partners I, LLC Page 28 taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute it Material Breach of this Agreement. ARTICLE XIV: FORCE MAJIiJRfi 14.1 As used in this Agreement, "Force Majeure" or "an event of Force Majcure" means any cause beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence. such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, tires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: 1) The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other ['arty written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XV: LIABILITY: DEDICATION 15.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one -28- Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XVI: SEVERAL OBLIGATIONS 16.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. ARTICLE XVII: WAIVER Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not he deemed a waiver with respect to any subsequent default or other matter. ARTICLE XVIII: CHOICE OF LAWS AND VENUE 18.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 18.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada. -29- 1/612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 ARTICLE 19.1 Disputes - All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. 19.2 Notice of Default - 19.2.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nonde&tulting Patty shall cause notice in writing to be given to the defaulting Party, specit'ing the manner in which such default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Patty that the default can be cured within a commercially reasonable time but not within such sixty (60) (lay period and then fails to diligently pursue such cure, then, the nondefaultitig Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 19.2.2 Material Breaches -The notice and cure provisions in paragraph 19.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 19.3 Security for Performance - Prior to the Operation Date and thereafter for the full term of this Agreement, Seller will provide Idaho Power with the following: 19.3.1 Agurance - Evidence of compliance with the provisions of paragraph 13.2. If Seller fails to comply, such failure will be a Material Breach and may gpy be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated. 19.3.2 Debt Service Reserve Account—The Seller will establish a debt service reserve account. Said debt service reserve account will be separate from the maintenance reserve account and shall be structured as follows: -30- 716i2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 19.12.1 All funds will be prudently invested, in a guaranteed, insured account and all cost of implementing and operating the Debt Service Reserve Account shall be paid by the Seller. All interest earned on the funds on deposit will be retained in the Debt Service Reserve Account. At the end of the term of this Agreement, any balance remaining in the Debt Service Reserve Account shall be the property of the Seller. 19.3.2.2 Control of the Debt Service Reserve Account will be maintained by Idaho Power through the requirement of dual signatures on the account. The only authorized signers will be the Chief Operating Officer and the Chief Financial Officer of Idaho Power (or their respective designees) and the Treasurer of Seller (or his/her respective designee). Accordingly, funds will only be released from the Debt Service Reserve Account upon the signatures of both Idaho Power authorized signers or one Idaho Power authorized signer and Seller's authorized signer. 19.3.2.3 During the period of time in which the Facility acts as security for a first mortgage lien which is senior to Idaho Power's security interest in the Facility as described in paragraph 4.1.10, Seller shall maintain a debt service reserve account in cash or an irrevocable standby letter of credit in an amount equal to twenty percent (20 %) of the Facility's estimated gross Contract Year revenue rounded to the nearest 51,000. The estimated gross Contract Year revenue is calculated to be the sum of the monthly Net Energy Amounts specified in paragraph 6.2 multiplied by the All Energy Price specified in paragraph 7.3. 19.3.2.4 During the period when the Facility is security for a first mortgage lien that is senior to Idaho Power's lieu, funds from the debt service reserve account will only he released to the holder of the first mortgage lien. Funds from said account shall be released only when, and only to the extent that Seller -31- 7/6/2009 Exhibit 2110 GNRE-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 certifies to Idaho Power that after payment of all operating costs, the Facility's revenues are insufficient to make full debt service and/or lease payments on the Facility. 19.3.2.5 Upon full satisfaction of the abovereftronced first mortgage lien and when Idaho Power's security interest becomes the senior security interest in the Facility, a withdrawal from the Debt Service Reserve Account may he requested by the Seller for the amount in the debt service reserve account which exceeds five percent (5 0/6) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1,000. Seller shall maintain a debt service reserve account in cash or an irrevocable standby letter of credit in an amount equal to five percent (5%) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1,000. 19.3.2.6 During the period when Idaho Power's security interest is the senior security interest in the Facility, funds from the debt service reserve account will only be released to pay operating costs for the Facility. 19.3.2.7 For purposes of the debt service reserve account, operating costs are limited to those costs necessary for the operation of the Facility such as taxes, insurance expenses, tease payments and other ordinary and necessary operating expenses. Operating costs shall not include any disbursements other than lease payments which would constitute a profit or return on investment. 19.3.2.3 After any release of funds from the debt service reserve account, Seller shall be obligated to restore the debt service reserve account to the amounts provided for in paragraphs 19.3.2.3 or 19.3.2.5, whichever is applicable, prior to Seller disbursing funds which would constitute a profit or return On investment. UlItli the debt service reserve account is fully restored, Seller will, within sixty (60) days of the completion, of each Contract Year, -32- 71&2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 33 provide Idaho Power with a report prepared by Sellers outside accountants showing that Seller has not breached its obligations under this paragraph 19.3.2. 193.2.9 if the Facility has established a debt service reserve account in a form and amount that meets or exceeds the Debt Service Reserve Account requirements as defined below for compliance with other parties having a financial interest in this Facility, the Seller shall provide Idaho Power with documentation of those requirements and upon Idaho Power's acceptance that the financial debt service reserve requirements meet or exceed the requirements within this Agreement, Idaho Power will accept this financial debt service reserve account as meeting these requirements. If Idaho Power accepts this financial debt service reserve account it will be required that within 60 days of the end of each Contract Year the Seller provide Idaho Power docurnentatjoii of the balance within the financial debt service reserve account and the previous year's activity within the account. Idaho Power reserves the right to require the Seller to provide a Debt Service .eserve Account as specified below at any time during the term of this Agreement if Idaho Power determines that the Seller's financial debt reserve account no longer meets or exceeds these requirements. 19.3.2.10 Any breach of paragraph 19.3.2 by Seller will constitute a Material Breach of this Agreement. 19.3.3 Engineer's Certifications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (O&M) from a Registered Professional Engineer licensed in the State of Idaho, which Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and 33 11612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 19.3.4 Licenses and Permits - During the inli term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every filth Contract Year, Seller will update the documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4.1.1 or to provide the documentation required by this paragraph, such failure will be an event of default and may only be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XX: GOVERNMENTAL AUTHORIZATION 20.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over either Party of this Agreement. ARTICLE X2I;QMMiSSfON ORDER 21.1 This Agreement shall become finally effective upon the Commission's apprqval of all terms and provisions hereof without change or condition and declaration that all Payments to be made to Seller hereunder shell ho allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXII: SUCCESSORS AND ASSIGNS 22.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successOrs and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without, the written consent of both Parties being first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights. -34- 7/0/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 obligations and interest's under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies. fICLE XXIII: MODIFICATION 23.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXIV: TAXES 241 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed to be paid when due, could result in a lieu upon the Facility or the ].iiterconnection Facilities. ARTICLE XXV: NOTICES 25.I All written notices under this Agreement shall be directed as follows and shall be considered delivered when faxed, c-mailed and confirmed with deposit in the U.S. Mail, first-class, postage prepaid, as follows: To Seller: Contract Manager do Exergy Development Group of Idaho, LLC 802 W. Bannock St., 12th Floor Boise, IT) 83702 info®exergydevelopinentgroup.com Copy of document to: Peter Richardson Richardson & O'Leary Law Firm 515 N. 27th Street Boise, ID 83702 peter@richardsonandoleary.com To Idaho Power: -35- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 kieiiLaI document to: Senior Vice President, Delivery Idaho Power Company P C) Box 70 Boise, Idaho 83707 Email:DMinor@idahopower.com Coov of document to: Cogeneration and Small Power Production rdaho Power Company P0 Box 70 Boise, Idaho 83707 E-mail: rallphin@idahopower.com IRIKLE XXVI: ADDITIONAL TERMS AND CONDITIONS 26.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications Appendix D - Poniis of Liquid Security Appendix E - Wind Energy Production Forecasting Appendix F - Accumulated Overpayment Amount ARTICLE XXVII: Sl3YEiABIUTY 27.1 The invalidity or unenforceability of arty term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXVIII: COUNTERPARTS 25.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. -36- 716/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 ART[(1(iX:ENFAGREBLENT 29.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed in their respective names on the dates set forth below: Idaho Power Cotnpy CarnpReed Wind Park. LLC By By________ Dan B. Minor cnior Vice President, Delivery Dated Dated "Idaho Power" "Seller" -37- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 APPENDLX A --I MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to; Idaho Power Company Atm:ogeneration and Small Power Production P 0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement -39- 716n-009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 Project Name Address City Idaho Power Company Cogeneration and Small Power Production MONThLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project N umber: Phone Number: State Zip Facility Station Output Meter Number: End of Month kWh Meter Reading; Beginning of Month kWh Meter; Difference: Times Meter Constant: kWh for the Month: Metered Demand: Breaker Opening Record Date 'rime Nfeter Reason * Breaker Opening Reason Codes I Luck of Adequate Prime Mover Station Metered iLSM M,aimtint Gimern(rnn kW J = Net Generation 1 Breaker Closing Record De Time Meter Z Forced Outage of Facility I hereby certify that the above meter readings are true and correct as of Midnight on the last day of the 3 Disturbance of lPCo System above mouth and that the switching record is accurate 4 Scheduled Maintenance and complete as required by the Firm Energy Sales S Testing of Protection Systems Agreement to which I am a Party. 6 Cause Unknown 7 Other (Explain) Signature Date 39- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 A-2 ROUTINE REPORTING Once the Facility has achieved its Operation Date and has operated in a reliable and consistent manner for a reasonable period of time, the Parties may m utually agree to modify this Routine Reporting requirement. Idaho Power Contact Information Daily _FiergyProduction Re it in Call daily by 10 a.m., 156 or jQQ635-1093 and leave the following infoniiation: • Project Identification -Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unplanned Proiect outates Call 10.Q-345-1319 and leave the following information: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coming back online Seller's Contact Wort-nation 24-Hpur Projegt Oprational Contact Name: Telephone Number- Coll Phone: Project On-site Contact information Telephone Number: _____________ -40- 716/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 APPENDIX 13 FACILITY AND POINT OF DELIVERY PROJECT NO. 31315050 iunp Reed Wind Park, LLC B-I DESCRIPTION OF FACILITY 22.5 MW Installed capacity wind conversion power generation facility utilizing 14 GE Model 1 500 xlc wind turbine generators with standard reactive power range 0.95 lead (reactive power leaving the generator) to 0.90 lagging. 13-2 LOCATION OF FACILITY Near: Hagerman, II) Section 35 - WI/2, 81/2NE114, NI12SE114, SWI/4SE1!4 Township: 7S Range: 12E County: Twin Falls, ID. Section 36 -.ALL Township: 7S—Range: 12C Twin Falls, ED. Section 2 - ALL Township: 8S Range: I2E County: Twin Falls, ID. Section 6— N 1/2 Township: $. Range: jE. County: Twin Falls, ID. Description of Interconnection Location: 400 V. 5900 N, Hagerman, connecting to the King! Bliss 138 kV line. Nearest Idaho Power Substation: Tuana Substation [3-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected September 30.2010 as the Scheduled First Energy Date. Seller has selected September 30, 2010 as the Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. 41- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 B-4 MAXUvIUM CAPACITY AMOUNT: This value will be 22.5 MW which is consistent With the value provided by the Seller to Idaho Power in accordance with Schedule 72. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. B-S POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. Schedule 72 will determine the specific Point of Delivery for this Facility. The Point of Delivery identified by Schedule 72 ;liI become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If (he Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 20/. of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, conductor sizes, etc) of all of Ilic electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at any time during the teun of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical -42- 716/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 43 equipment between the Facility and the fclabo Power electrical system, .Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. 13-7 METERING AND TELEMETRY Schedule 72 will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. -43- 7f612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 44 APPENDIX C ENGINEERS CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement,' between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as iPCo Facility No. and is hereinafter referred to as the "Project." 4.That the Project, which is commonly known as the - Project, is located in Section - Township _________ Range , Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. S. That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") hIr this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the Protect's producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. -44- 716/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 45 That l3ngiuecr recognizes that Idaho Power, in accordance with paragraph 52 of the Agreement, is relying on 6ngineers representations and opinions contained in this Statement. 10. Thai Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date 45- 71612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 46 .r)Ix ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPC) Facility No. and hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the Project, is located in Section Township _______ Rme , Boise Meridian, county, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to fiwnish electrical energy to Idaho Power for a live (5) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that ti is in reasonably good operating condiIion and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant fitctor for the remaining years of the Agreement. -46- 716t2.009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 47 9.That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10.'l'hat Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (PE. Stamp) Date 7!i/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 48 -47- APPENDJX ENGINEER'S CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer", hereby states and certifies to Idaho Power as follows: L That Engineer is a Licensed Prot.ssional Engineer in good standing in the Slate of Idaho. 2. That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter "Agreement", between Idaho Power as Buyer, and as Seller, dated 3. That the cogeneration or small power production project, which is the subject of the Agreement and this Statement, is identified as IPCo Facility No and is hereinafter referred to as the "Project". 4. That the Project, which is commonly known as the Project, is located in Section Township _________ Range _,Boise Meridian, county, Idaho. 5 That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 5. That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, Prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. -48- 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 49 9.That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a twenty (20) year period. 1, 1. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12. That Engineer certifies that the above statements are complete, true and accurate to the cast of his knowledge and therefore sets his hand and seal below. By ___________ (P.—E. Stamp) [)ate -49- 7/612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 50 APPENDIX 0 FORMS OF LIQUID SECURITY The Seller shall provide Idaho Power with commercially reasonable security instruments such as Cash Escrow Security, Guarantee or Letter of Credit as those terms are defined below or other forms of liquid financial security that would provide readily available cash to Idaho Power to satisfy the Delay Security, Performance Security and any other security requirements within this Agreement. For the purpose of this Appendix LI, the term "Credit Requirements" shall mean acceptable financial creditworthiness of the entity providing the security instrument in relation to the term of Elie obligation in the reasonable judgment of Idaho Power, provided that any guarantee and/or letter of credit issued by any other entity with a short-term or long-term investment grade credit rating by Standard & Poor's Corporation or Moody's Investor Services, [tic. shall be deemed to have acceptable financial creditworthiness. Cash Escrow Security - Seller shall deposit funds in an escrow account established by the Seller in a banking institution acceptable to both Parties equal to the required security amount(s). A single escrow account may he established for all security requirements, however detailed accounting of the individual security requirements must he maintained by the Seller and Seller shall be obligated to maintain the appropriate amounts to satisfy each security requirement within the individually identified accounts. The Seller shall be responsible for all costs associated with establishing and maintaining the escrow account(s) 2. Guarantee or Letter of Credit Security Seller shall post and maintain in an ailiOuttt equal to the required security amount(s): (a) a guaranty from a party that satisfies the Credit Requirements, in a form acceptable to Idaho Power at its discretion, or (b) an irrevocable -50- Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 51 Letter of Credit in a form acceptable to Idaho Power, in favor of Idaho Power. The Letter of Credit will be issued by a financial institution acceptable to both parties. A single aggregate Guarantee or Letter of Credit may he provided for all security requirements, however detailed accounting of the individual security requirements must be maintained by the Seller and Seller shall be obligated to maintain the appropriate amounts to satisfy each security requirement within the individually identified accounts. The Seller shall be responsible for all costs associated with establishing and maintaining the Guarantee(s) or Letter(s) of Credit. - SI- 7/6f200L) Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 52 APPENDIX WIND ENERGY PRODUCTION FORECASTING As specified in Conimission Order 30488, Idaho Power shall make use of a Wind Energy Production Forecasting model to forecast the energy production from this Facility and other QF wind generation resources. Seller and Idaho Power will share the cost of Wind Energy Production Forecasting equally. The Facility's share of Wind Energy Production Forecasting is determined as speci lied below. Sellers share will not be greater than 0.1% of the total energy payments made to Seller by Idaho Power during the previous Contract Year. a.For every month of this Agreement beginning with the first full month after the Scheduled First Energy Date as specified in Appendix of this Agreement, the Wind Energy Production Forecasting Monthly Cost Allocation (MCA) will be due and payable by the Seller. Any Wind Energy Production Forecasting Monthly Cost Allocations (MCA) that are not reimbursed to Idaho Power shall be deducted from energy payments to the Seller. As the value of the 0.1% cap of the Facilities total energy payments will not be known until the first Contract Year is complete, at the end of the first Contract Year any prior allocations that exceeded the 0.1% cap shall be adjusted to reflect the 0.1% cap and if the Facility has paid the monthly allocations a refund will be included in equal monthly amounts over the ensuing Contract Year. Ii' the Facility has not paid the monthly allocations the amount due Idaho Power will be adjusted accordingly and the unpaid balance will be deducted from the ensuing Contract Year's energy payments. b.During the first Contract Year, as the value of the 0.1% cap of the Facilities total energy payments will not he known until the first Contract Year is complete, -52- ?1161" 20t)9 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 53 Idaho Power will deduct the Facility's calculated share of the Wind Energy Production Forecasting costs specified in item b each month during the first Contract Year and subsequently refund any overpayment (payments that exceed the cap) in equal monthly amounts over the ensuing Contract Year. c.The cost allocation formula described below will be reviewed and revised if necessary on the last day of any month in which the cumulative MW nameplate of wind projects having Commission approved agreements to deliver energy to Idaho Power has been revised by an action of the Commission. d.The monthly cost allocation will based upon the following formula: Where: Total MW (TMW) is equal to the total nameplate rating of all QF wind projects that are under contract to provide energy to Idaho Power Company. Facility KW (FM is equal to the nameplate rating of this Facility as specified in Appendix E. Annual Wind Energy Production Forecasting Cost (AFCost) is equal to the total annual cost Idaho Power incurs to provide Wind Energy Production ForecasOng, Idaho Power will estimate the AFCost for the current year based upon the previous year's cost and expected costs for the current year. At year-end, Idaho Power will compare the actual costs to the estimated costs and any differnces between the estimated AFCost and the actual AFCost will he included in the next years AFCost. Annual Cost Allocation (ACA) = AFCost X (FMW / TMW) And Monthly Cost Allocation (MCA) = ACA /12 e.The Wind Energy Production Forecasting Monthly Cost Allocation (MCA) is due and payable to Idaho Power. The MCA will first be netted against any monthly energy payments owed to the Seller. If the netting of the MCA against 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 54 the monthly energy payments results in a balance being due Idaho Power, the Facility shall pay this amount within 15 days ot'the date of the payment invoice. -54- W612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 55 APPENDIX F ACCUMULATED OVERPAYMENT AMOUNT PROJECT NUMBER: 31315050 CAMP REED WIND PARK The accumulated total of: The monthly Initial Year Monthly Net Energy Amounts specified in paragraph 6.2J multiplied by the All Hours Energy Price (Mill/kWh) specified in paragraph 7.3 less the same monthly Initial Year Monthly Net l3nergyAniounts specified in paragraph 6.2.1 multiplied by the monthly, seasonalized, Non Levelized rates where the seasonali7.atiorl factors are the same as identified in paragraph 7.3 and Non Levelized rates are in accordance with IPUC order No. 30744 for all expired months of this Agreement and the next 12 months. In addition a cumulative interest Amount will be calculated on the expired month's Accumulated Overpayment Amount and included in the Accumulated Overpayment Amount based upon the Idaho Power overall allowed rate of return in the Idaho jurisdiction, which at the time of the signing of this agreement is 8,U3 %. This Accumulated Overpayment Amount will be initially calculated prior to the First Energy Date and then recalculated annually at the end of each Contract Year. 7/6/2009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 56 APPENDIXJ TABLE OF ACCUMULATED OVERPAYMENT ENERGY RATES AS DEFiNED IN THIS APPENDIX PROJECT NUMBER: 31315050 CAMP REED WIND PARK iUl'UC Order 39744 and 30738 Calendar Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Levelized Fiat Energy Prices for a Project coming online in 2010 Season Season Season 1 2 3 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61,47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 Non Levelized Flat Energy Season Season Season 2 3 52.59 86.82 71.55 54.13 89.56 73.65 55.42 91.84 75.45 56.74 94.18 77.40 58.09 96.58 79.40 59.54 99.16 81.55 60.95 101.67 83.64 62.48 104.38 85.90 63.97 107.01 88.09 65.49 109.71 90.34 67.04 112.48 92.65 68.64 115.32 95.01 7028 118.22 97.44 71.96 121.21 99.92 73.68 124.26 102.47 75.87 127.99 105.57 78.22 131.82 108.77 80.65 135.78 11.2.07 83.14 139.86 115.47 85.72 144.06 118.97 I 87.80 147.47 [21.811 Accumulated Overpayment Season Season Season 2 3 8.88 15.76 12.85 7.33 13.02 10.75 6.04 10.74 8.95 4.73 8.40 7.00 3.38 6.00 5.00 1.92 3.42 2.85 0.52 0.91 0.76 (1.01) (1.80) (1.50) (2.50) (4.43) (3.69) (4.02) (7.13) (5.94) (5.58) (9.90) (8.25) (7.18) (12.74) (10.61) (8.81) (15.64) (13.04) (10.50) (18.63) (15.52) (12.22) (21.68) (18.07) (14.40) (25.41) (21.17) (16.75) (29.24) (24.37) (19.18) (33.20) (27.67) (21.67) (37.28) (31.07) (24.25) (41.48) (34.57) (26.33) (44.89) (37,41) -56- 71612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 57 APPENDIX F EXAMPLE, OF ACCUMULATED OVERPAYMENT CALCULATION The calculation below is for example purposes only to calculate the Accumulated Overpayment Amounts for this Agreement it will be required that the actual values from the agreement are used in this calculation. Example Assumptions: Project becomes Operational as of Jan 1, 2010. Project terminates Agreement as of July 1, 2010. Expired Months: Estimated Mwh (per article 6.2.1 of the Agreement) Accumulated Overpayment Energy Rate Calculated Overpayment Interest applied to expired Months Total Accumulated Overpayment including interest 8.18% Jan-10 15.000 12.85 $192,750 $1,313.91 $194,064 Feb-10 20,000 12.85 $257,000 $1,322.87 $452,387 Mar-10 16,000 8.88 8142,080 83,083.71 $597,551 A2r-10 21,000 8,88 8186,480 84,073.30 $788,t04 May-10 13,000 8.88 $115,440 $5,372.24 $908,916 Jun-10 14,000 12.85 8179,900 $6,195.78 $1,095,012 Plus Next 12 Months: Jul-10 14,000 15.76 $220,640 $1,315,652 Aug-10 15,000 15.76 $236,400 $1,552,052 Sep-10 18,000 12.85 $231,300 $1,783,352 Oct-10 13,000 12.85 8167,050 $,950,402 Nov-10 15,000 15.76 8236,400 $2,186,802 Dec-10 14,000 15.76 $220,640 82,407,442 Jan-11 15,000 10.75 $161,250 $2,568,692 - Feb-il 20,000 10.75 $215,000 $2,783,692__ Mar-il 16,000 7.33 S117,280 82,900,972 Apr-11 21,000 7.33 $153,930 $3,054,902 May-! 1 13,000 7.33 895,290 $3,150,192 Jun-it j 14,000 10.75 $150,500 $3,300,692 Based on this example - if this example Project were to terminate this 'levelized" agreement in July 2011. The calculated accumulated Overpayment Amount would be 93.300,692 which would be payable to Idaho Power in addition to any other damages due Idaho Power. -57- 7/612009 Exhibit 2110 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 58 FIRIv1 ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND PAYNE'S FERRY WIND PARK, LLC TABLE OF CONTENTS Article TITLE Definitions 2 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy 5 Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment 8 Environmental Attributes 9 Facility and Interconnection 10 Metering and Telemetry 11 Records 12 Operations 13 Indemnification and Insurance 14 Force Majeure 15 Liability; Dedication 16 Several Obligations 17 Waiver 18 Choice of Laws and Venue 19 Disputes and Default 20 Governmental Authorization 21 Commission Order 22 Successors and Assigns 23 Modification 24 Taxes 25 Notices 26 Additional Terms and Conditions 27 Severability 28 Counterparts 29 Entire Agreement Signatures Appendix A Appendix B Appendix C Appendix D Appendix 13 Appendix F Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) Project Name: payne's Ferry Wind Park, LLC Project Number: 31315060 THIS AGREEMENT, entered into on thisday of / 2009 between PAYNE'S FERRY WIND PARK, LLC (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter Sometimes referred to collectively as "Parties" or individually as "Party." WITNESS)3TH: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: .1 "Calculated Net Enciy Amount" - The Nameplate Capacity of the Facility multiplied by the total hours in the applicable month minus the estimated Lost Energy Production, and minus the estimated Station Use associated with the Lost Energy Production. .2 "gission" - The Idaho Public Utilities Commission. 1.3 "Contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. 1.4 "Delay Liquidated Damages" - Damages payable to Idaho Power as calculated in paragraph 5.3, 5.4, 5.5 and 5.6. 1.5 "Delay Period" -All days past the Scheduled Operation Date until the Seller's Facility achieves the Operation Date. 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 1.6 "Delay Price" - The current month's Mid-Columbia Market Energy Cost minus the current month's All Hours Energy Price specified in paragraph 7.3 of this Agreement. If this calculation results in a value less than 0, the result of this calculation will be 0. 1.7 "Deignated Dispatch Facility" - Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.8 "Energy Shortfall Price" - The current month's Mid-Columbia Market Energy Cost minus the current month's All Flours Energy Price specified in paragraph 7.3 of this Agreement. If this calculation results in a value less than 15.00 Mills/Kwh the result shall be 15.00 Mills/Kwh. 1.9 "Facijy" - That electric generation facility described in Appendix B of this Agreement. 1.10 "First Energy Date" - The day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 1.11 "Forced Outage - a partial or total reduction of a) the Facility's capacity to produce and/or deliver Net Energy to the Point of Delivery, orb) Idaho Power's ability to accept Net Energy at the Point of Delivery for non-economic reasons, as a result of Idaho Power or Facility. I) equipment failure which was not the result of negligence or lack of preventative maintenance or 2) unplanned preventative maintenance to repair equipment that left unrepaired, would result in failure of equipment prior to the planned maintenance period. The Parties shall make commercially reasonable efforts to perform this unplanned preventative maintenance during periods of low wind availability or 3) responding to a transmission provider curtailment order. 1.12 "Heavy Load Hours".- The daily hours beginning at 07:00 am, ending at 11 :00 pm Mountain Time, (16 hours) excluding all hours on all Sundays, New Years Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas. 1.13 "Inadvertent Energy" .- Electric energy Seller does not intend to generate. Inadvertent Energy is more particularly described in paragraph 7.5 of this Agreement. 1.14 "Interconnection Facilities" - All equipment specified in Idaho Power's Schedule 72. -2- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 .15 "Initial Capacity Determination" - The process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 1.16 "Light Load Hours'- The daily hours beginning at 11:00 pm, ending at 07:00 am Mountain Time (8 hours), plus all other hours on all Sundays, New Years Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas. 1.17 "" -The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement. 1.18 "Lost Net Energy Production . - A monthly estimate after the fact, prepared and documented by Seller and accepted by the Buyer, of the Seller's Facility's individual generation unit's energy production that was not delivered as Net Energy due to: 1) periods where the level of Sufficient Prime Mover were outside the manufacturer's acceptable operating range for the wind turbine generator, 2) incidents of Force Majeure, 3) scheduled maintenance, or 4) incidents of Forced Outage. If any of the above listed events (measured on each individual occurrence and individual generation unit) lasts for less than iS minutes, then no Lost Energy Production will be calculated. Calculation of the amount of Lost Energy Production will be the verifiable duration (not less than 15 minutes) of the event multiplied by the Nameplate Capacity reduction of only the affected generation unit(s) occurring as a result of the event multiplied by the expected capacity factor which would have occurred during this time period less any Losses that would have been associated with this calculated Lost Net Energy Production. It is understood by the Parties, that a specific generation unit's outage may indirectly impact other fully operational generation units, in which case the forced outage calculation could extend to the other impacted generation units. Example - if a single turbine with a Nameplate Capacity rating or 2.1 MW suffers a 100% gear box failure that was not a result of negligence or lack of preventative maintenance (Forced -3- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Outage) and it takes 48 hours to replace the gear box, and other generation units in the immediate vicinity of this generation unit operated at a 30% capacity factor during this 48 hour period then the amount of Lost Energy Production will be; 48 hours X 11 MW X 30% = 30.24 MWh (30,240 kWh) 1.19 "Market Energy Reference Price" - Eighty-five percent (85%) of the Mid-Columbia Market Energy Cost. 1.20 "Material Breach"-. A Default (paragraph 19.2.1) subject to paragraph 19.2.2. 1.21 "Maximum Capacity Amount" - The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.22 "Mechanical Availability" -The percentage amount calculated by Seller within 5 days after the end of each month of the Facility's monthly actual Net Energy divided by the Facility's Calculated Net Energy Amount for the applicable month. Any penalty associated with falling short of the Mechanical Availability Guarantee for each month shall be determined in accordance with paragraph 6.4.4. 1.23 "Mechanical Availability Guarantee" shall be as defined in paragraph 6.4. 1.24 "Meteijng Eguinment" - All equipment specified in Schedule 72, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter bi- directional power flows between the Seller's Facility at the Seller's individual generation Facilities and the Point of Delivery on the Idaho Power electrical system. 1.25 "Mid- Columbia Market EIgy.Cost" - The monthly weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid-Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.26 "Namej,Jte Capacity" —The full-load electrical quantities assigned by the designer to a generator and its prime mover or other piece of electrical equipment, such as transformers and Circuit -4- 7/6/2009 Exhibit 2111 GNR-E-1 1 -03 R. Guy: Idaho Wind Partners I, LLC Page 5 breakers, under standardized conditions, expressed in amperes, kilovolt-amperers, kilowatts, volts or other appropriate units. Usually indicated on a nameplate attached to the individual machine or device. 1.27 "Net h - :ger" - All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh) delivered to Idaho Power at the Point of Delivery. Subject to the terms of this Agreement, Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent Energy. 1.28 "Operation Date" - The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.29 'Point of Delivery" - The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.30 'Prudent Electrical Practices" -Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, safely, dependably, efficiently and economically. 1.31 "Scheduled Operation Date" - The date specified in Appendix B when Seller anticipates achieving the Operation Date. In establishing this date it is expected that the Seller reasonably determines this date is based upon the best known information in regards to equipment availability and construction schedules. 1.32 "Schedule 72" Idaho Power's Tariff No 101, Schedule 72 or its successor schedules as approved by the Commission. The Seller shall be responsible to pay all costs of interconnection and integration of this Facility into the Idaho Power electrical system as specified within Schedule 72. 1.33 "Season" - The three periods identified in paragraph 6.2.1 of this Agreement, 1.34 "Special Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Schedule 72. 1.35 "Station Use'- Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. To calculate the Station Use value for use -5- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 in the Mechanical Availability calculation, the previous period's actual Station Use will be used as a basis. 1.36 "Sufficient Prime Mover" means wind speed that is (1) equal to or greater than the generation unit's manufacturer-specified minimum levels required for the generation unit to produce energy and (2) equal to or less than the generation unit's manufacturer-specified maximum levels at which the generation unit can safely produce energy. 1.37 "plus Energy" - All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.35 "Total Cost of the Facility" - The total replacement cost of structures, equipment and appurtenances. 1.39 "Wind Energy Production Foreca '-A forecast of energy deliveries from this Facility provided by an Idaho Power provided wind forecasting model. The Facility shall be responsible for an allocated portion of the total costs of the forecasting model as specified in Appendix E. ARTICLE 11 NO RELLNCE ON IDAHO POWER 2.1 Seller Independent Investhtation - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined that it is capable of performing hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent Experts - All professionals or experts including, but not limited to, engineen, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. -6- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 ARTICLE ill: WARRANTIES 3.1 No Warranty by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qi-m-1-ify-ing Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term is used and defined in 18 CFR 292.201 at seq. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 FR 292.201 et seq. and a Qualifying Facility certificate. 4.1.2 Opinion of Counsel -Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4. 1.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter -7- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter will be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1.3 Initial Capacity Determination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity Determination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.3.1 If the Maximum Capacity specified in Appendix B of this Agreement and the cumulative manufacturer's Nameplate Capacity rating of the individual generation units at this Facility is less than 10 MW, the Seller shall submit detailed, manufacturer-specific, verifiable data of the Nameplate Capacity ratings of the actual individual generation units to be installed at this Facility. Upon verification by Idaho Power that the data provided establishes the combined nameplate rating oldie generation units to be installed at this Facility is less than 10 MW, it will be deemed that the Seller has satisfied the Initial Capacity Determination for this Facility. 4.1.4epQCapciy— Submit to Idaho Power Manufacturer's and engineering documentation that establishes the Nameplate Capacity of each individual generation unit that is included within the entire Facility. Upon receipt of this data, Idaho Power shall review the provided data and determine if the Nameplate Capacity specified is reasonable based upon the Manufacturer's specified generation ratings for the specific generation Units. -8- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 4.1.5 Engineer's Certifications - Submit an executed Engineer's Certification of Design & Construction Adequacy and an Engineer's Certification of Operations and Maintenance (O&M) Policy as described in Commission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.6 Insurance - Submit written proof to Idaho Power of all insurance required in Article XIII. 4.13 Interconnection— Provide written confirmation from Idaho Power's delivery business unit that Seller has satisfied all interconnection requirements. 4.1.8 Network Resource Designation - 4.1.8.1 Provide all data required by the Idaho Power delivery business unit to enable the Seller's Facility to be designated as a network resource. 4.1.8.2 Receive confirmation from the Idaho Power delivery business unit that the Seller's Facility has been designated as a network resource. 4.1.9 Reserve Accounts - Demonstrate to Idaho Power's satisfaction that the Seller has established and funded (1) a debt service reserve account in a form and with a fund holder which complies with paragraph 19.3.2 and (2) demonstrate to Idaho Power's satisfaction that the Seller has established a maintenance reserve account in a form and with a fund holder acceptable to Idaho Power. Said maintenance reserve account shall be structured and funded as follows: 4.1.9.1 All funds will be prudently invested, in a guaranteed, insured account and all cost of implementing and operating the maintenance reserve account shall be paid by the Seller. All interest earned on the funds on deposit will be retained in the maintenance reserve account. At the end of the term of this Agreement, any balance remaining in the maintenance reserve account shall be the property of the Seller. 4.1.9.2 Within 60 days after the completion of each Contract Year, the Seller will deposit cash in the maintenance reserve account in an amount equal -9- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 to, or exceeding 5% of the Facility's estimated gross income for the ensuing Contract Year, less an amount equal to the Facility's actual maintenance, repair and replacement expenses (maintenance expenses) incurred during the prior Contract Year. At Seller's option, the cash required hereunder to be maintained in such reserve may be replaced by an irrevocable standby letter of credit in the same amount. 4.1,9.3 The minimum amount of deposit retained in the maintenance reserve account shall he $2,000,000- This minimum amount will be adjusted either upward or downward to reflect current replacement cost of a complete wind turbine/generator. (i.e. tower, nacelle, generator, control unit, associated wiring, etc) This adjustment will be made at the beginning of each 3' contract year and the replacement value determined by the replacement cost valuation methods as described within paragraph 13.2.6.c. in the event this adjustment results in a balance in this account exceeding 10% of the actual replacement cost of a complete wind turbine/generator then the Seller may request a disbursement of finds as specified in paragraph 4.1.9.6. 4.1.9.4 At the time Seller makes the deposit described in paragraph 4.1.9.2, Seller will provide Idaho Power with an accurate, verifiable report showing the prior Contract Year's actual maintenance expenses, identified by appropriate FERC maintenance account number, and the estimate of the Facility's gross income for the ensuing Contract Year used to compute the deposit amount, together with documentation supporting the estimate of gross income. 4.1.9.5 If at any time it appears that the maintenance expense for that Contract Year will exceed 5% of the Facility's estimated gross income for that Contract Year, the Seller may request that Idaho Power consent to the -10- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 release of funds from the maintenance reserve account in an amount sufficient to pay the anticipated additional maintenance expenses. The request must include documentation supporting the Seller's projection of excess maintenance expense, identified by appropriate FERC maintenance account number, and such documentation shall be submitted to Idaho Power. Upon approval by Idaho Power, the required funds will be released to Seller in accordance with Paragraph 4.1.9.6. 4.1.9.6 Control of the maintenance reserve account will be maintained by Idaho Power through the requirement of dual signatures on the account. The only authorized signers will be the Chief Operating Officer and the Chief Financial Officer of Idaho Power (or their respective designees) and the Treasurer of Seller (or his/her respective designee). Accordingly, funds will only be released from the maintenance reserve account upon the signatures of both Idaho Power authorized signers or one Idaho Power authorized signer and Seller's authorized signer. 4.1.9.7 At the end of each Contract Year, Seller will provide Idaho Power with evidence of compliance with the maintenance reserve account requirements set out in this Agreement. This evidence of compliance will be provided in a manner and form acceptable to Idaho Power. The maintenance reserve fund will be subject to the lien rights described in paragraph 4.1.10 below. 4.1.9.8 If the Facility has established a maintenance reserve account in a form and amount that meets or exceeds the maintenance reserve requirements as defined below for compliance with other parties having a financial interest in this Facility, the Seller shall provide Idaho Power with documentation of those requirements and upon Idaho Power's acceptance that the financial maintenance reserve rcquirements meet or -11- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 exceed the requirements within this Agreement, Idaho Power will accept this financial maintenance reserve account as meeting these requirements. If Idaho Power accepts, this financial maintenance reserve account, it will be required that within 60 days of the end of each Contract Year the Seller provide Idaho Power documentation of the balance within the financial maintenance reserve account and the previous year's activity within the account. Idaho Power reserves the right to require the Seller to provide a maintenance reserve account as specified below at any time during the term of this Agreement if Idaho Power determines that the Seller's financial maintenance reserve account no longer meets or exceeds these requirements. 4.1.10 Security Interests -Provide Idaho Power with acceptable security against Seller's default under this Agreement. Acceptable security will conform to Commission Order No. 21690 and No. 21800 and may include, but will not be limited to (1) title insurance, security interests in the real property associated with the Facility, equipment, fixtures, contracts, permits, easements, rights-of-way, land use agreements, funds held in escrow in which Seller has an interest and that relate to the operation of the Facility, and other reasonable security arrangements consistent with the Facility's financing and ownership arrangements; or (2) the seller may post liquid security in an amount equal to at least thirty five percent (35%) of the Accumulated Overpayment Amount specified for that year in Appendix F. 4.1.10.1 Idaho Powers security interests will be superior and senior to all liens other than the first mortgage lien and other security interests permitted in accordance with paragraphs 4.1.10.2. The Seller shall be responsible for all costs reasonably incurred by Idaho Power to review and perfect this security interest not to exceed $15,000. 12- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 4.1.10.2 If Seller desires to incur a first mortgage lien or other security interests that will be superior to Idaho Power's security interests in the Facility, at least twenty-one (21) days prior to their execution, Seller shall provide Idaho Power with draft copies of the deeds of trust, mortgages and other security agreements that will be used to secure such first lien. Upon their execution Seller shall provide Idaho Power with copies of the executed first lien documents. The executed first lien documents shall not be assigned, amended, modified, or extended, and no replacement or refinancing of any nature shall be undertaken, without Idaho Power's prior written consent which consent shall not be unreasonably withheld. In no event will the amount of any first mortgage lien exceed $56,250,000. The total amount of all refinanced or replaced first liens shall not exceed the unpaid principal balance of the first mortgage Liens they replace. 4.1,10.3 Other than the first mortgage liens permitted herein, or temporary mechanic's, statutory or similar liens incurred in the ordinary course of business in an amount not to exceed in aggregate $50,000, Seller will not permit any liens or encumbrances of any nature whatsoever to be placed on the Facility without Idaho Power's prior written consent, which consent will not be unreasonably withheld. If any unpermitted lien or encumbrance is placed on the Facility, Seller will provide Idaho Power with a bond, insurance or other security acceptable to Idaho Power in an amount sufficient to secure the lull discharge of such unpermitted lien or encumbrance. 4.1.10.4 During the remaining term of this Agreement, Seller shall maintain compliance with all requirements of Idaho Power's security interests described above in paragraph 4.1.10 of this Agreement and -13- 7/612009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Commission Order No. 21690. Seller's failure to comply with those requirements, will be an event of default and in addition to any other remedies available under this Agreement, Commission Order No. 21690, and the security interests, Seller will be required by Idaho Power to post liquid security ('Performance Security") in a form as specified in Appendix D in an amount equal to at least thirty five percent (35%) of the Accumulated Overpayment Amount specified for that year in Appendix F. Failure to maintain and provide the liquid security required by this Agreement and Commission Order No. 21690 and No. 21800 shall be an event of default. 4.1.11 Written Acceptance -Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. ARTICLE V: TERM AND OPERATION DATE 5.1 fpn - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shall continue in [lull force and effect for a period of twenty (20) Contract Years from the Operation Date. 5.2 Operation Da -The Operation Date may occur only after the Facility has achieved all of the flullowing: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and safe manner. d) Seller has requested an Operation Date from Idaho Power in a written format. - 14- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 e) Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power. 5.3 Seller shall cause the Facility to achieve the Operation Date on or before the Scheduled Operation Date. 5.3.1 If the Operation Date occurs after the Scheduled Operation Date but prior to 90 days past the Scheduled Operation Date, Seller shall pay Idaho Power Delay Liquidated Damages calculated monthly as follows: Delay Liquidated Damages are equal to ((Current month's Initial Year Net Energy Amount as specified in paragraph 6.2.1 divided by the number of days in the current month) multiplied by the current months Delay Period) multiplied by the current months Delay Price. 5.3.2 If the Seller's Facility has not achieved the Operation Date within 90 days after the Scheduled Operation Date, the Seller shall pay Idaho Power Delay Liquidated Damages calculated as follows: Twenty dollars ($20) multiplied by the Maximum Capacity Amount with the Maximum Capacity Amount being measured in KW. 5.4 if Seller tiils to achieve the Operation Date within ninety (90) days after the Scheduled Operation Date, such failure will be a Material Breach and Idaho Power may terminate (his Agreement. 5.5 Seller shall pay Idaho Power any calculated Delay Liquidated Damages within seven (7) days of when Idaho Power calculates and presents any Delay Liquidated Damages billings to the Seller. Seller's failure to pay these damages within the specified time will be a Material Breach of this Agreement and Idaho Power may draw fluids from the Delay Security provided by the Seller in an amount equal to the calculated Delay Liquidated Damages. 5.6 The Parties agree that the damages Idaho Power would incur due to delay in the Facility achieving the Operation Date on or before the Scheduled Operation Date would be difficult or impossible to predict with certainty, and that the Delay Liquidated Damages are an appropriate approximation of such damages. -15- 71612009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 5.7 Within thirty (30) days of the date of a Commission Order as specified in Article XXI approving this Agreement; Seller shall post liquid security "Delay Security") in a form as described in Appendix D equal to or exceeding the amount calculated in paragraph 5.7.1. Failure to post this Delay Security in the time specified above will be a Material Breach of this Agreement and Idaho Power may terminate this Agreement. 5.7.1 Twenty dollars ($20) multiplied by the Maximum Capacity Amount with the Maximum Capacity Amount being measured in W. 5.7.1.1 If the Seller provides Idaho Power with certification that a generation interconnection agreement specifying a schedule that will enable the Facility to achieve the Operation Date no later than the Scheduled Operation Date has (I) been completed and the Seller has paid all required interconnection costs or (2) a generation interconnection agreement is substantially complete and all material costs of interconnection have been identified and agreed upon and (3) the Seller is in compliance with all terms and conditions of the generation interconnection agreement, the Delay Security calculated in accordance with paragraph 5.7.1 will be reduced by ten percent (10%). 5.7.1.2 If the Seller has received a reduction in the calculated Delay Security as specified in paragraph 5.7.1.1 and subsequently (1) at Seller's request, the generation interconnection agreement specified in paragraph 5.7.1.1 is revised and as a result the Facility will not achieve its Operation Date by the Scheduled Operation Date or (2) if the Seller does not maintain compliance with the generation interconnection agreement, the hill amount of the Delay Security as calculated in paragraph 5.7.1 will be subject to reinstatement and will be due and owing within 5 business days from the date Idaho Power requests reinstatement. Failure to timely reinstate the Delay Security will be a Material Breach of this Agreement. 5.7.2 Idaho Power shall release any remaining security posted hereunder after all calculated Delay Liquidated Damages are paid in full to Idaho Power and the earlier of (i) 30 days -16- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 after the Operation Date has been achieved or (2) 120 days after the termination of this Agreement. 5.7.3 Early Termination Payment - At any time after the Operation Date has been achieved, Idaho Power terminates this Agreement due to any default by the Seller, Seller will make a termination payment to Idaho Power. The termination payment will include but not be limited to the Accumulated Overpayment Amount specified in Appendix F of this Agreement. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivervand Accer>tanco of Net Energy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts. These amounts shall be consistent with the Mechanical Availability Guarantee. -17- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 6.2.1 initial Year Monthly Net Energy Amounts: Month kWh March 5,837,644 Season 1 April 5,639,662 May 5,300,264 July 3,552,365 August 3,682,467 Season 2 November 4,276,414 December 4,909,957 June 4,632,782 September 4,101,058 Season 3 October 4,700,661 January 5,107,939 February 4,830,764 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10 0/0) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. 6.4 Mechanical Ava ilability Guarantee - After the Operational Date has been established, the Facility shall achieve a minimum monthly Mechanical Availability of 85% for the Facility for eaclunonth during the full term of this Agreement (the "Mechanical Availability Guarantee"). Failure to achieve the Mechanical Availability Guarantee shall result in Idaho Power calculating damages as specified in paragraph 6.4.4. 6.4.1 At the same time the Facility provides the Monthly Power Production and Switching Report, (Appendix A) the Seller shall provide and certify the calculation of the Facility's current month's Mechanical Availability. The Seller shall include a summary of- (a) Forced Outages, (b) Force Majeure events, (c) wind speeds and the impact on generation output and (c) scheduled maintenance and Station Use information that was used to calculate the current month's Mechanical Availability -18- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 6.4.2 The Facility shall maintain detailed documentation supporting its calculation of the Facility's Mechanical Availability. These records will be retained for three years. 6.4.3 Idaho Power shall have the right to review and audit the documentation supporting the calculation of the Facility's Mechanical Availability at reasonable times at the Seller's offices. 6.4.4 If the current month's Mechanical Availability is less than the Mechanical Availability Guarantee, damages will be calculated as: The Mechanical Availability Guarantee multiplied by the Facility's aggregate Nameplate Capacity of all generation units at the Facility multiplied by the hours of the month minus the current month's measured Losses and Station Use minus the month's actual Net Energy deliveries multiplied by the Energy Shortfall Price. 6.4.5 Any damages calculated in paragraph 6.4.4 will be offset against the current month's energy payment. If an unpaid balance remains after the damages are offset against the energy payment, the Facility shall pay in full the remaining balance within fifteen (15) days of the date of the invoice. ARTICLE VJjJtJRCHASE PRICE AND METHOD OF PAYMENT 7.1 Heavy Load Purchase Price - For all Net Energy received during Heavy Load Hours, Idaho Power will pay the levelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30744, 30738 and adjusted in accordance with commission Order 30415 for Heavy Load Hour Energy deliveries, and adjusted in accordance with Commission Order 30488 for the wind integration charge and with seasonalization factors applied: -19- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Season 1 -(7150%) Season 2-(120.00 %) Season 3 -(100.00%) Mills/kWh Mills/kWh Mills/kWh 63.65 106.47 87.64 7.2 Light Load Purchase Price - For all Net Energy received during Light Load Hours, Idaho Power will pay the levelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30415 for Light Load Hour Energy deliveries, and adjusted in accordance with Commission Order 30488 for the wind integration charge and with seasonalization factors applied: Season 1 -(73.50%) Season 2- (120.00 %) Season 3 -(100.00 %) Mills/kWh Mfli/kWh Mills/kWh 58.73 97.73 80.36 7.3 All Flours Energy Price -. The price to be used in the calculation of the Surplus Energy Price and Delay Damage Price shall be the levelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30744, 30738 and adjusted in accordance with Commission Order 30488 for the wind integration charge and with seasonalization factors applied: Season 1 -(73.50 %) Season 2 - (120.00 %) Season 3 - (100.00 %) Mills/kWh Mills/kWh Mills/kWh 61.47 102.58 84.40 7.4 Surplus.Energyiice - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Reference Price or the All Hours Energy Price specified in paragraph 7.3, whichever is lower. 7.5 Inadvertent Energy - 7.5.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was -20- 7/6/2009 Exhibit 2111 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 21 delivered. (For example January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh in this example would be Inadvertent Energy.) 75.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy. 7.6 Payment Due Date - Energy payments, less Wind Energy Production Forecasting Monthly Cost Allocation (MCA), will be disbursed to the Seller within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Mechanical Available Guarantee and the Net Energy actually delivered to Idaho Power as specified in Appendix A. 7.7 Qptiauing Jurisdiction of the Commission .This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power company v. Idaho Public Utilities Commission and Afion Energy. Inc, 107 Idaho 781, 693 P.2d 427 (1984), Idaho Power company v. Idaho Public Utilities Conwiission, 107 Idaho 1122, 695 P.2d 1 261 (1985), Afton Ene', Inc. v. Idaho Power Company, ill Idaho 925, 729 P.2d 400 (1986), Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR §292.303-308 ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits (RECs) and Tradable Renewable Certificates TRCs) directly associated with the production of energy from the Seller's Facility. -21- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 ARTICLE IX: FACILITY AND INTERCONNECTION 9.1 Design of Facility - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full term of the Agreement. 9.2 pterconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X: METERING AND TELEMETRY 10.1 Metering - Idaho Power shall, for the account of Seller, provide, install, and maintain Metering and Telemetry Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with this Agreement and Schedule 72. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) at the Point of Delivery in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. 10.2 iet - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility. -22- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 AKflCLE XI- RECORDS 11.1 Maintenance of Records - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records in a -form and content recommended by Idaho Power. 11.2 Inspection Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility. ARTICLE XTh OPERATIONS 12.1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. 12.2 1gygcpance - 12.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeure, Forced Outage or temporary disconnection of the Facility in accordance with Schedule 72. if, for reasons other than an event of Force Majeure or a Forced Outage, a temporary disconnection under Schedule 72 exceeds twenty (20) days, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 12.2.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may temporarily disconnect the Facility from Idaho Power's trartsmission/distribution system as specified -23- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 12.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount at any moment in time. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 12.3 Scheduled Maintenance— On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 12.4 Maintenance Coordination -The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 12.5 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt the interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events, Idaho Power may not be able to provide notice to he Seller Drier to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. ARTICLE XIII: INDEMNIFICATION AND INSURANCE 13.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or -24- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 maintenance of, or by failure of, any of such Party's works or facilities used in connection with this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all documented costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 13.2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 13.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.2 All Risk Property Insurance with minimum limits not less than eighty percent (80 1/1 o) of the Total Cost of the Facility. The Property Insurance coverage must be written on a Replacement Cost basis and will include: (a)Standard fire policy (b)Extended coverage endorsement; and (c)Vandalism and malicious mischief endorsement. (d)The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.3 Boiler and Machinery insurance with inininiuni limits not less than eighty percent (80%) of the total Replacement Cost of the equipment covered in (a) below: (a)All boiler and machinery coverage must be written on a "comprehensive form" basis to provide coverage against the sudden and accidental breakdown of all boilers, machinery and electrical equipment, turbines, generators, and switchgear. (b)Coverage under this insurance must be written on a Replacement Cost basis; and -25- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 (c) The deductible for such insurance shall be consistent with current insurance Industry Utility practices for similar property. 13.2.4 Earthquake & Flood (catastrophic perils) Insurance with limits not less than eighty percent (80%) of the Total Cost of the Facility. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.5 Business Interruption (Loss of Income) Insurance with minimum daily limits not less than twenty percent (20%) of the Facility's estimated annual income; (a)Coverage will include Seller's loss of earnings when business operations are curtailed or suspended because of a loss due to an insured peril. Coverage may be written on an actual loss sustained basis. (b)This insurance coverage must be endorsed to both the All Risk Property Insurance Policy and the Boiler and Machinery Insurance Policy; (c)The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. (d)The estimated annual income shall be computed on the basis of the Net Energy Amounts contained in paragraph 6.2. 13.2.6 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shalt include: (a) An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b) A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. c) in the case of the insurance coverages described in sub-paragraphs 13.2.1, 13,2.2, 13.2.3, and 13.2.4 above, the Total Cost of the Facility will include any Seller- furnished Disconnection Equipment and/or Interconnection Facilities. The Total Cost of the Facility and total Replacement Cost of equipment will be adjusted either upward or downward to reftect the current replacement cost of the Facility -26- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 or equipment. This adjustment will be based on either (1) an appraisal made by, or for, the Seller's insurance company, or (2) use of an approved "Industrial cost trend index" published by a national insurer (i.e., Factory Mutual Engineering and Research Building Cost Index; Keinper Replacement Value Cost Trends - Industrial Machinery & Equipment; Industrial Risk Insurers, U.S. Replacement Cost Factors) (3) any other mutually agreed upon methodology of establishing the total replacement cost. Such adjustment shall be made, at a minimum, every fifth Contract Year during the term of this Agreement. A copy of these computations and/or appraisals will be submitted to Idaho Power for Idaho Power's review and approval. 13.2.7 Insurance Alternatives - Comprehensive General Liability Insurance as defined in paragraph 13.2.1 will be required at all times throughout the term of this agreement. Alternative arrangements creating equivalent protection for Idaho Power in lieu of the insurance requirements specified in paragraphs 13.2.2, 13.2.3, 13.2.4 and 13.2.5 of this Agreement may be submitted to Idaho Power for review. Only upon Idaho Power's written acceptance of these alternate arrangements may the Seller be allowed to forgo the insurance requirements of paragraphs 13.2.2, 13.2.3, 13.2.3 and 13.2.5 of this Agreement. Any and all acceptable alternative arrangements must place Idaho tower in an eoual or better oosition in the event of the occurrence of an insurable event. 13.3 Seller to Provide Certificate of Insurance - As required in paragraph 4.1.6 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 13.4 Seller to Notify Idaho Power of Loss of Coveraze - If the insurance coverage required by paragraph 13.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is -27- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 28 taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute a Material Breach of this Agreement. ARTICLE XIV: FORCE MAJEURE 14.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence, such Party is unable to pi -event or overcome. Force Majeure includes, but is not limited to, acts of God, tire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: (I) The nonperfonuing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater Scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been filly performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XV: LIABILITY: DEDICATION 15.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement- No undertaking by one -28W 7/6/2009 Exhibit 2111 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 29 Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XVI: SEVERAL OBLIGATIONS 16.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. ARTICLE XVII: WAIVER 17.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XVIII: CHOICE OF LAWS AND VILJ 18.1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 18-2 Venue for any litigation arising out of or related to this Agreement will He in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada. -29- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 ARI1CLE XIX: DISPjflS ANDJEEAULT 19.1 Disputes - All disputes related to or arising wider this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. 19.2 Notice of Default - 19.2.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement an "event of default"), the nondefaulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 19.2.2 Material Brca - The notice and cure provisions in paragraph 19.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 19.3 Security for Performance -Prior to the Operation Date and thereafter for the full term of this Agreement, Seller will provide Idaho Power with the following: 19.3.1 Insurance - Evidence of compliance with the provisions of paragraph 13.2. If Seller fails to comply, such failure will be a Material Breach and may only be cured by eller supplying evidence that the required insurance coverage has been replaced or reinstated. 19.3.2 Debt Service Reserve Account -The Seller will establish a debt service reserve account. Said debt service reserve account will be separate from the maintenance reserve account and shall be structured as follows: 30- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 19.3.2.1 All funds will be prudently invested, in a guaranteed, insured account and all cost of implementing and operating the Debt Service Reserve Account shall be paid by the Seller. All interest earned on the funds on deposit will be retained in the Debt Service Reserve Account. At the end of the term of this Agreement, any balance remaining in the Debt Service Reserve Account shall be the property of the Seller. 19.3.2.2 Control of the Debt Service Reserve Account will be maintained by Idaho Power through the requirement of dual signatures on the account. The only authorized signers will be the Chief Operating Officer and the Chief Financial Officer of Idaho Power (or their respective designees) and the Treasurer of Seller (or his/her respective designee). Accordingly, funds will only be released from the Debt Service Reserve Account upon the signatures of both Idaho Power authorized signers or one Idaho Power authorized signer and Seller's authorized signer. 19.3.2.3 During the period of time in which the Facility acts as security for a first mortgage lien which is senior to Idaho Power's security interest in the Facility as described in paragraph 4.1.10, Seller shall maintain a debt service reserve account in cash or an irrevocable standby letter of credit in an amount equal to twenty percent (20 %) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1,000. The estimated gross Contract Year revenue is calculated to be the sum of the monthly Net Energy Amounts specified in paragraph 6.2 multiplied by the All Energy Price specified in paragraph 7.3. 19.3.2.4 During the period when the Facility is security for a first mortgage lien that is senior to Idaho Power's lien, funds from the debt service reserve account will only be released to the holder of the first mortgage lien. Funds from said account shall be released only when, and only to the extent that Seller 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 certifies to Idaho Power that after payment of all operating costs, the Facility's revenues are insufficient to make fill debt service and/or lease payments on the Facility. 19.3.2.5 Upon full satisfaction of the above-referenced first mortgage lien and when Idaho Power's security interest becomes the senior security interest in the Facility, a withdrawal from the Debt Service Reserve Account may be requested by the Seller for the amount in the debt service reserve account which exceeds five percent (5%) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1,000. Seller shall maintain a debt service reserve account in cash or an irrevocable standby letter of credit in an amount equal to five percent (5%) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1,000. 19.3.2.6 During the period when Idaho Power's security interest is the senior security interest in the Facility, funds from the debt service reserve account will only be released to pay operating costs for the Facility. 19.3.2.7 For purposes of the debt service reserve account, operating costs are limited to those costs necessary for the operation of the Facility such as taxes, insurance expenses, lease payments and other ordinary and necessary operating expenses. Operating costs shall not include any disbursements other than lease payments which would constitute a profit or return on iivestment. 19.3.2.8 After any release of funds from the debt service reserve account, Seller shall be obligated to restore the debt service reserve account to the amounts provided for in paragraphs 19.3.2.3 or 19.3.2.5, whichever is applicable, prior to Seller disbursing finds which would constitute a profit or return on investment. Until the debt service reserve account is fully restored, Seller - will, within sixty (60) days of the completion of each Contract Year, -32- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 33 provide Idaho Power with a report prepared by Seller's outside accountants showing that Seller has not breathed its obligations under this paragraph 19.3.2. 19.3.2.9 if the Facility has established a debt service reserve account in a form and amount that meets or exceeds the Debt Service Reserve Account requirements as defined below for compliance with other parties having a financial interest in this Facility, the Seller shall provide Idaho Power with documentation of those requirements and upon Idaho Power's acceptance that the financial debt service reserve requirements meet or exceed the requirements within this Agreement, Idaho Power will accept this financial debt service reserve account as meeting these requirements. if Idaho Power accepts this financial debt service reserve account it will be required that within 60 days of the end of each Contract Year the Seller provide Idaho Power documentation of the balance within the financial debt service reserve account and the previous year's activity within the account. Idaho Power reserves the right to require the Seller to provide a Debt Service Reserve Account as specified below at any time during the term of this Agreement if Idaho Power determines that the Seller's financial debt reserve account no longer meets or exceeds these requirements. 19.3.2.10 Any breach of paragraph 19.3.2 by Seller will constitute a Material Breach of this Agreement. 19.3.3Engineer's Certifications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (O&M) from a Registered Professional Imginccr iicensed in the State of Idaho, which Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and -33- 7/612009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 193.4 Licenses and Permits During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4. 1.1 or to provide the documentation required by this paragraph, such failure will be an event of default and may only be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XX: GOVERNMENTAL AUTHORIZATION 20.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over 'ither Party of this Agreement. ARTICLE XXI: COMMISSION ORDER 21.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXII: SUCCESSORS AND ASSIGNS 22.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without the written consent of both Parties being first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights, -34- 7/612009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies. ARTICLE XXI1I: MODIFICATION 23.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXIV: TAXES 24.1 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXV: NOTICES 25.1 All written notices under this Agreement shall be directed as fbllows and shall be considered delivered when faxed, c-mailed and confirmed with deposit in the U.S. Mail, first-class, postage prepaid, as follows: To Seller: Contract Manager do Exergy Development Group of Idaho, LLC 802 W. Bannock St., l2th Floor Boise, 1D 83702 info@exergydeveloprnentgroup.com opvof document to: Peter Richardson Richardson & O'Leary Law Firm 15 N. 27'' Street Boise, ID 83702 peter@richardsonandoleary.com To Idaho Power: -35- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 Original document to: Senior Vice President, Delivery Idaho Power Company P 0 Box 70 Boise, Idaho 83707 Email:DMinor@idahopower.com Copy of document to: Cogeneration and Small Power Production Idaho Power Company P 0 Box 70 Boise, Idaho 83707 E-mail: rallpldn@idahopower.com ARTICLE XXVI: ADDITIONAL TERMS AND CONDITIONS 26.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications Appendix D - Forms of Liquid Security Appendix E - Wind Energy Production Forecasting Appendix F - Accumulated Overpayment Amount ARTICLE XXVII: SEVERABILiTY 27] The invalidity or unenforceability of any term. or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXVIII: COUNTERPARTS 28.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. -36- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 ARTICLE xxix: ENTIRE AGREEMENT 29.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed in their respective names on the dates set forth below: Idaho Power company Payne's Ferry Wind Park, LLC By By Dan Minor Senior Vice President, Delivery Dated 1 Dated "Idaho Power" "Seller" -37- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 APPENDIX A A —I MONTHLY POWER PRODUCI'ION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production PO Box 7O Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any Other required energy measurements to adequately administer this Agreement. -38- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Name Project Number: Address Phone Number: City State Zip Meter Number: End of Month kWh Meter Reading: Beginning of Month kWh Meter: Difference: Times Meter Constant: kWh for the Month: Metered Demand: Facility Station Station Metered Output jjggg Usage Maximum Genera(km kW Net Generation Breaker Opening Record Breaker Closing Record Date je Meter Reason Date Thue Meter I hereby certify that the above meter readings are true and correct as of Midnight on the last day of the above month and that the switching record is accurate and complete as required by the Firm Energy Sales Agreement to which I am a Party. Signature Date -39- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 * Breaker Openine Reason Codes I Lack of Adequate Prime Mover 2 Forced Outage of Facility 3 Disturbance of IPCo System 4 Scheduled Maintenance 5 Testing of Protection Systems 6 Cause Unknown 7 Other (Explain) A-2 ROUTINE REPORTING Once the Facility has achieved its Operation Date and has operated in a reliable and consistent manner for a reasonable period of time, the Parties may mutually agree to modify this Routine Reporting requirement. Idaho Power Contact hifonnatjq Daily Energy Production Reporting Call daily by 10 a.m., 1-800-3564328 or 1-800-635-1093 and leave the following information: • Project Identification - Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unplanned Pqject outages Call 1-800-3451319 and leave the following information: • Project Identification -Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coming back online Seller's Contact Information 24-Hour Project Operational Contact Name: Telephone Number: Cell Phone: Eject On-site Contact information Telephone Number: - -40- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 FACILITY AND POINT OF DELIVERY PROJECT NO. 31315060 Payne's Ferry Wind Park, LLC B-I DESCRIPTION OF FACILITY 21.0 MW Installed capacity wind conversion power generation facility utilizing 14 GE Model 1500 xle wind turbine generators with standard reactive power range 0.95 lead (reactive power leaving the generator) to 0.90 lagging. B-2 LOCATION OF FACILITY Near: Hagerman, ID Section 35 - WI12, Sl/2NE1/4, N1/2SEI/4, SWII4SEI/4 Township: 7S Range: 12 E County: Twin Falls. ID. Section 36-ALL Township: 7S Range: 12E County: Twin Falls, ID, Section 2 - ALL Township: 8S Range: 12E County: Twin Falls, ID. Section 6— N1/2 Township: 85 Range: j.2County: Twin Fails, ID. Description of Interconnection Location: 400 W. 5900 N. Hagerman, connecting to the King/ Bliss 138 kV line. Nearest Idaho Power Substation: jpa Substation 13-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected September 30. 2010 as the Scheduled First Energy Date. Seller has selected September 30. 2010 as the Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. -41- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 B-4 MAXIMUM CAPACITY AMOUNT: This value will be 21. MW which is consistent with the value provided by the Seller to Idaho Power in accordance with Schedule 72. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. B-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. Schedule 72 will determine the specific Point of Delivery for this Facility. The Point of Delivery identified by Schedule 72 will become an integral part of this Agreement. B-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Powerelectrical system at the Point of Delivery, no Losses will be calculated for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrical equipment specifications (transformer loss specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at any time during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical -42- 7/612009 Exhibit 2111 GF'JR-E=1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 43 equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. B-i METERING AND TELEMETRY Schedule 72 will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Idaho Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. -43- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 44 APPENDC ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as lPCo Facility No. and is hereinafter referred to as :he "Project.' 4.That the Project, which is commonly known as the Project, is located in Section Township _________Range ________, Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. S. That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the Project's producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. -44- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 45 That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineers representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.R Stamp) Date -45- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 46 APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned , on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: 1.That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the - Project, is located in Section Township ________ Range ________, Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric :)ower plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the remaining _______ years of the Agreement. -46- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 47 That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date -47- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 48 APPENDIX C ENGINEERS CERTIFICATION OF DESIGN & CONSTRUCTION ADEQUACY The undersigned on behalf of himself and * hereinafter collectively referred to as "Engineer", hereby states and certifies to Idaho Power as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Finn Energy Sales Agreement, hereinafter "Agreement", between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project, which is the subject of the Agreement and this Statement, is identified as JPCo Facility No and is hereinafter referred to as the "Project". 4.That the Project, which is commonly known as the _____Project, is located in Section Township _.Range ______, Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. 8.That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. -48- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 49 Date Date 49- -49- 9.That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10.That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a twenty (20) year period. 11.That Engineer recognizes that Idaho Power, in accordance with paragraph 51 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12.That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 50 JNDIX D FORMS OF LIQUID SECURITY The Seller shall provide Idaho Power with commercially reasonable security instruments such as Cash Escrow Security, Guarantee or Letter of Credit as those terms are defined below or other Forms of liquid financial security that would provide readily available cash to Idaho Power to satisfy the Delay Security, Performance Security and any other security requirements within this Agreement. For the purpose of this Appendix D, the term "Credit Requirements" shall mean acceptable financial creditworthiness of the entity providing the security instrument in relation to the term of the obligation in the reasonable judgment of Idaho Power, provided that any guarantee and/or letter of credit issued by any other entity with a short-term or long-term investment grade credit rating by Standard & Poor's Corporation or Moody's Investor Services, Inc. shall be deemed to have acceptable financial creditworthiness. I. Cash Escrow Security - Seller shall deposit funds in an escrow account established by the Seller in a banking institution acceptable to both Parties equal to the required security amount(s). A single escrow account may be established for all security requirements, however detailed accounting of the individual security requirements must be maintained by the Seller and Seller shall be obligated to maintain the appropriate amounts to satisfy each security requirement within the individually identified accounts. The Seller shall be responsible for all costs associated with establishing and maintaining the escrow account(s). 2. Guarantee or Letter of Credit Security -Seller shall post and maintain in an amount equal to the required security amount(s): (a) a guaranty from a party that satisfies the Credit Requirements, in a form acceptable to Idaho Power at its discretion, or (b) an irrevocable -50- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 51 Letter of Credit in a form acceptable to Idaho Power, in favor of Idaho Power, The Letter of Credit will be issued by a financial institution acceptable to both parties. A single aggregate Guarantee or Letter of Credit may be provided for all security requirements, however detailed accounting of the individual security requirements must be maintained by the Seller and Seller shall be obligated to maintain the appropriate amounts to satisfy each security requirement within the individually identified accounts. The Seller shall be responsible for all costs associated with establishing and maintaining the Guarantee(s) or Letter(s) of Credit. -51- 716/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 52 APPENDIX E WIND ENERGY PRODUCTION FORECASTING As specified in Commission Order 30488, Idaho Power shall make use of a Wind Energy Production Forecasting model to forecast the energy production from this Facility and otherQF wind generation resources. Seller and Idaho Power will share the cost of Wind Energy Production Forecasting equally. The Facility's share of Wind Energy Production Forecasting is determined as specified below. Sellers share will not be greater than 0.1% of the total energy payments made to Seller by Idaho Power during the previous ContTact Year. a.For every month of this Agreement beginning with the first fill month after the Scheduled First Energy Date as specified in Appendix of this Agreement, the Wind Energy Production Forecasting Monthly Cost Allocation (MCA) will be due and payable by the Seller. Any Wind Energy Production Forecasting Monthly Cost Allocations (MCA) that are not reimbursed to Idaho Power shall be deducted from energy payments to the Seller. • As the value of the 0.1% cap of the Facilities total energy payments will not be known until the first Contract Year is complete, at the end of the first contract Year any prior allocations that exceeded the 0.1% cap shall be adjusted to reflect the 0.1% cap and if the Facility has paid the monthly allocations a refund will be included in equal monthly amounts over the ensuing Contract Year. If the Facility has not paid the monthly allocations the amount due Idaho Power will be adjusted accordingly and the unpaid balance will be deducted from the ensuing Contract Year's energy payments. b.During the first Contract Year, as the value of the 0.1% cap of the Facilities total energy payments will not be known until the first Contract Year is complete, -52- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 53 Idaho Power will deduct the Facility's calculated share of the Wind Energy Production Forecasting costs specified in item b each month during the first Contract Year and subsequently refund any overpayment (payments that exceed the cap) in equal monthly amounts over the ensuing Contract Year. c.The cost allocation formula described below will be reviewed and revised if necessary on the last day of any month in which the cumulative MW nameplate of wind projects having Commission approved agreements to deliver energy to Idaho Power has been revised by an action of the Commission. d.The monthly cost allocation will based upon the thllowing formula: Where: Total MW (TMW) is equal to the total nameplate rating of all QF wind projects that are under contract to provide energy to Idaho Power Company. Facility MW (FMW) is equal to the nameplate rating of this Facility as specified in Appendix B. Annual Wind Energy Production Forecasting Cost (AF Cost) is equal to the total annual cost Idaho Power incurs to provide Wind Energy Production Forecasting. Idaho Power will estimate the AFCoat for the current year based upon the previous year's cost and expected costs for the current year. At year-end, Idaho Power will compare the actual costs to the estimated costs and any differences between the estimated APCost and the actual AFCost will be included in the next years AFCost. Annual Cost Allocation (ACA) = AFCost X (F'MW I TMW) And Monthly Cost Allocation (MCA) = ACA I 12 The Wind Energy Production Forecasting Monthly Cost Allocation (MCA) is due and payable to Idaho Power. The MCA will first be netted against any monthly energy payments owed to the Seller. If the netting of the MCA against -53- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 54 the monthly energy payments results in a balance being due Idaho Power, the Facilityshall pay this amount within 15 days of the date of the payment invoice. -54- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 55 APPENDIX F ACCUMULATED OVERPAYMENT AMOUNT PROJECT NUMBER flI PAYNE'S FERRY WIND PARK The accumulated total of: The monthly Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 multiplied by the All Hours Energy Price (Mill/kWh) specified in paragraph 7.3 less the same monthly Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 multiplied by the monthly, seasonalized, Non Levelized rates where the seasonalization factors are the same as identified in paragraph 7.3 and Non Levelized rates are in accordance with IPUC order No. 30744 for all expired months of this Agreement and the next 12 months. In addition a cumulative interest Amount will be calculated on the expired month's Accumulated Overpayment Amount and included in the Accumulated Overpayment Amount based upon the Idaho Power overall allowed rate of return in the Idaho jurisdiction, which at the time of the signing of this agreement is 8.18 %. This Accumulated Overpayment Amount will be initially calculated prior to the First Energy Date and then recalculated annually at the end of each Contract Year. -55- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 56 TABLE OF ACCUMULATED OVERPAYMENT ENERGY RATES AS DEFINED IN THIS APPENDIX PROJECT NUMBER: 31315060 PAYNE'S FERRY WIND PARK Per IPUC Order 30744 and 30738. Levelized Flat Energy Prices for a Project coming online in 2010 Season Season Season 1 2 3 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 Non Levelized Flat Energy Prices Season Season Season 1 2 3 52.59 86.82 71.55 54.13 89.56 73.65 55.42 91.84 75.45 56.74 94.18 77.40 58.09 96.58 79.40 59.54 99.16 81.55 60.95 101.67 83.64 62.48 104.38 85.90 63.97 107.01 88.09 65.49 10931 90.34 67.04 112.48 92.65 68.64 115.32 95.01 70.28 118.22 97.44 71.96 12121 99.92 73.68 124.26 102.47 75.87 127.99 105.57 78.22 131.82 108.77 80.65 135.78 112.07 83.14 139.86 115.47 85.72 144.06 118.97 87.80 147.47 121.81 Accumulated Overpayment 8.88 15.76 12.85 7.33 13.02 10.75 6.04 10.74 8.95 4.73 8.40 7.00 3.38 6.00 5.00 1.92 3.42 2.85 0.52 0.91 0.76 (1.01) (1.80) (1.50) (2.50) (4.43) (3.69) (4.02) (7.13) (5.94) (5.58) (9.90) (8.25) (7.18) (12.74) (10.61) (8.81) (15.64) (13.04) (10.50) (18.63) (15.52) (12.22) (21.68) (18.07) (14.40) (25.41) (21.17) (16.75) (29.24) (24.37) (19.18) (33.20) (27.67) (21.67) (37.28) (31.07) (24.25) (41.48) (34.57) Calendar • Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 -56- 7/6/2009 Exhibit 2111 GNR-E-1 1 -03 R. Guy: Idaho Wind Partners I, LLC Page 57 APPENDIX F EXAMPLE OF ACCUMULATED OVERPAYMENT CALCULATION The calculation below is for example purposes only- to calculate the Accumulated Overpayment Amounts for this Agreement it will be required that the actual values from the agreement are used in this calculation. Example Assumptions: Project becomes Operational as of Jan 1, 2010. Project terminates Agreement as of July 1, 2010. Expired Months: Estimated Mwh (per article 6.2.1 of the Agreement) Accumulated Overpayment Energy Rate Calculated Overpayment Interest applied to expired Months Total Accumulated Overpayment including interest 8.18% Jan-10 15,000 12.85 $192,750 $1,313.91 $194,064 Feb-10 20,000 12.85 $257,000 $1,322.87 $452,387 Mar-10 16,000 8.88 $142,080 $3,083.77 $597,551 Apr-10 21,000 8.88 $186,480 $4,073.30 $788,104 May-10 13,000 8.88 -- $115,440 $5,372.24 $908,916 Jun-10 14,000 12.85 $179,900 $6,195.78 $1,095,012 PlusNext12 Months: Jul-10 14,000 15.76 $220,640 $1,315,652 Aug-10 15,000 15.76 $236,400 $1,552,052 Sep-10 18,000 12.85 $231,300 $1,783,352 Oct-10 13,000 12.85 $167,050 $1,950,402 Nov-10 15,000 15.76 $236,400 $2,186,802 Dec-10 14,000 15.76 $220,640 $2,407,442 Jail- 11 15,000 10.75 $161,250 $2,568,692 Feb-11 20,000 10.75 $215,000 $2,783,692 Mar-11 16,000 7.33 $117,280 $2,900,972 Apr-11 21,000 7.33 $153,930 $3,054,902 May-Il 13,000 7.33 $95,290 $3,150,192 Jun-il 14,000 10.75 $150,500 $3,300,692 Basedonthis example - if this example Project were to terminate this "levelized' agreement in July 2011. The calculated accumulated Overpayment Amount would be S3,300,692 which would be payable to Idaho Power in addition to any other damages due Idaho Power. -57- 7/6/2009 Exhibit 2111 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 58 FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COMPANY AND YAHOO CREEK WIND PARK, LLC TABLE OF CONTENTS MiLe TITLE Definitions 9 No Reliance on Idaho Power 3 Warranties 4 Conditions to Acceptance of Energy 5 Term and Operation Date 6 Purchase and Sale of Net Energy 7 Purchase Price and Method of Payment S Environmental Attributes 9 Facility and Interconnection 10 Metering and Telemetry Records 12 Operations 13 Indemnification and Insurance 14 Force Majeure 15 Liability; Dedication 16 Several Obligations 17 Waiver 18 Choice of Laws and Venue 19 Disputes and Default 20 Governmental Authorization 21 Commission Order 22 Successors and Assigns 23 Modification 24 Taxes 25 Notices 26 Additional Terms and Conditions 27 Severability 28 Counterparts 29 Entire Agreement Signatures Appendix A Appendix 13 Appendix C Appendix D Appendix B Appendix F Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 FIRM ENERGY SALES AGREEMENT (10 aMW or Less) Project Name: Yahoo Creek Wind Park, LL Project Number: 31315070 THIS AGREEMENT, entered into on this .day of It Iy 2009 between YAHOO CREEK WIND PARK, LLC (Seller), and IDAHO POWER COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or individually as "Party." WITNESSETH: WHEREAS, Seller will design, construct, own, maintain and operate an electric generation facility; and WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy produced by the Seller's Facility. THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as Ibllows: ARTICLE I: DEFINITIONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: 1.1 "Calculated Net Energy Amount" - The Nameplate Capacity of the Facility multiplied by the total hours in the applicable month minus the estimated Lost Energy Production, and minus the estimated Station Use associated with the Lost Energy Production. 1.2 "commission" - The Idaho Public Utilities Commission. 1.3 "Contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending 364 days thereafter. 1.4 "Delay Liquidated Damages" - Damages payable to Idaho Power as calculated in paragraph 5.3, 5.4, 5.5 and 5.6. 1.5 "Delay Period" - All days past the Scheduled Operation Date until the Seller's Facility achieves the Operation Date. -1- * )I £JU7 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 .6 "Dejy Price"- The current month's Mid-Columbia Market Energy Cost minus the current month's All Hours Energy Price specified in paragraph 7.3 of this Agreement. If this calculation results in a value less than 0, the result of this calculation will be 0. 1.7 "Designated Dispatch Facility" - Idaho Power's Systems Operations Group, or any subsequent group designated by Idaho Power. 1.3 "Enrgv_Sjiortfall Price" -The current month's Mid-Columbia Market Energy Cost minus the current month's All Hours Energy Price specified in paragraph 7.3 of this Agreement. If this calculation results in a value less than 1.00 Mills/Kwh the result shall be 15.00 Mills/Kwh. 1.9 "Facility" - That electric generation facility described in Appendix B of this Agreement. 1.10 "Ffrst Energy Date" -Me day commencing at 0001 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to Idaho Power's system at the Point of Delivery. 1.11 "Forced Outage" - a partial or total reduction of a) the Facility's capacity to produce and/or deliver Net Energy to the Point of Delivery, orb) Idaho Power's ability to accept Net Energy at the Point of Delivery for non-economic reasons, as a result of Idaho Power or Facility; 1) equipment failure which was not the result of negligence or lack of preventative maintenance or 2) unplanned preventative maintenance to repair equipment that left unrepaired, would result in failure of equipment prior to the planned maintenance period. The Parties shall make commercially reasonable efforts to perform this unplanned preventative maintenance during periods of low wind availability or 3) responding to a transmission provider curtailment order. 1.12 "ll3 Load .jHours" - The daily hours beginning at 07:00 am, ending at 11:00 pm Mountain Time, (16 hours) excluding all hours on all Sundays, New Years Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas. .13 "inadvertent Ener '-Electric energy Seller does not intend to generate. Inadvertent Energy is more particularly described in paragraph 7.5 of this Agreement. 1.14 "Interconnection Facilities" - All equipment specified in Idaho Power's Schedule 72. -2- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 1.15 "Initial Capacity Determination" -Tie process by which Idaho Power confirms that under normal or average design conditions the Facility will generate at no more than 10 average MW per month and is therefore eligible to be paid the published rates in accordance with Commission Order No. 29632. 1.16 "Light Load —The daily hours beginning at 11:00 pm, ending at 07:00 am Mountain Time (8 hours), plus all other hours on all Sundays, New Years Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving and Christmas. .17 "jgrs" -The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result of the transformation and transmission of energy between the point where the Facility's energy is metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The loss calculation formula will be as specified in Appendix B of this Agreement. 1.18 "Lost Net Energy Production" - A monthly estimate after the fact, prepared and documented by Seller and accepted by the Buyer, of the Seller's Facility's individual generation unit's energy production that was not delivered as Net Energy due to: 1) periods where the level of Sufficient Prime Mover were outside the manufacturer's acceptable operating range for the wind turbine generator, 2) incidents of Force Majeure, 3) scheduled maintenance, or 4) incidents of Forced Outage. If any of the above listed events (measured on each individual occurrence and individual generation unit) lasts for less than 15 minutes, then no Last Energy Production will be calculated. Calculation of the amount of Last Energy Production will be the verifiable duration (not less than 15 minutes) of the event multiplied by the Nameplate Capacity reduction of only the affected generation unit(s) occurring as a result of the event multiplied by the expected capacity factor which would have occurred during this time period less any Losses that would have been associated with this calculated Lost Net Energy Production. It is understood by the Parties, that a specific generation unit's outage may indirectly impact other fully operational generation units, in which case the forced outage calculation could extend to the other impacted generation units. Example - if a single turbine with a Nameplate Capacity rating or 2.1 MW suffers a 100% gear box failure that was not a result of negligence or lack of preventative maintenance (Forced -3- Exhibit 2112 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Outage) and it takes 48 hours to replace the gear box, and other generation units in the immediate vicinity of this generation unit operated at a 30% capacity factor during this 48 hour period then the amount of Lost Energy Production will be; 48 hours X 2.1 MW X 30% = 30.24 MWh (30,240 kWh) 1.19 "Market Energy Reference Price" - Eighty-five percent (85%) of the Mid-Columbia Market Energy Cost. 1.20 "Material Breachh" - A Default (paragraph 19.2.1) subject to paragraph 19.2.2. 1.21 "Magm Capcjty Amount" - The maximum capacity (MW) of the Facility will be as specified in Appendix B of this Agreement. 1.22 "Mechanical Availability" -The percentage amount calculated by Seller within 5 days after the end of each month of the Facility's monthly actual Net Energy divided by the Facility's Calculated 1'.Tet Energy Amount for the applicable month. Any penalty associated with failing short of the Mechanical Availability Guarantee for each month shall be determined in accordance with paragraph 6.4.4. 1.23 "Mechanical Availability Guarantee" shall be as defined in paragraph 6.4. 1.24 "Metering Euipment" - All equipment specified in Schedule 72, this Agreement and any additional equipment specified in Appendix B required to measure, record and telemeter bi- directional power flows between the Seller's Facility at the Seller's individual generation Facilities and the Point of Delivery on the Idaho Power electrical system. 1.25 "Mid- Columbia Market Energy Cost" - The monthly weighted average of the daily on-peak and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid-Columbia Index. The selected replacement index will be consistent with other similar agreements and a commonly used index by the electrical industry. 1.26 "Nameplate Capacity" —The full-load electrical quantities assigned by the designer to a generator and its prime mover or other piece of electrical equipment, such as transformers and circuit -4- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 breakers, under standardized conditions, expressed in amperes, kilovolt-amperers, kilowatts, volts or other appropriate units. Usually indicated on a nameplate attached to the individual machine or device. 1.27 "NLra( -All of the electric energy produced by the Facility, less Station Use, less Losses, expressed in kilowatt hours (kWh) delivered to Idaho Power at the Point of Delivery. Subject to the terms of this Agreement, Seller commits to deliver all Net Energy In Idaho Power at the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent Energy. 1.28 "Oneration Date"— The day commencing at 0001 hours, Mountain Time, following the day that all requirements of paragraph 5.2 have been completed. 1.29 "Point of Delivery" —The location specified in Appendix B, where Idaho Power's and the Seller's electrical facilities are interconnected. 1.30 "Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, safely, dependably, efficiently and economically. 1.31 "Scheduled Operation Date'- The date specified in Appendix B when Seller anticipates achieving the Operation Date. In establishing this date it is expected that the Seller reasonably determines this date is based upon the best known information in regards to equipment availability and construction schedules. 1.32 - Idaho Power's Tariff No 101, Schedule 72 or its successor schedules as ,hcdule 72" approved by the commission. The Seller shall be responsible to pay all costs of interconnection and integration of this Facility into the Idaho Power electrical system as specified within Schedule 72. 1.33 "Season" - The three periods identified in paragraph 6.2.1 of this Agreement, 1.34 "Special Facilities" - Additions or alterations of transmission and/or distribution lines and transformers as described in Schedule 72, 1.35 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. To calculate the Station Use value for use -5- Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 in the Mechanical Availability calculation, the previous period's actual Station Use will be used a. a basis. 1.36 "Sufficient Prime Mover" means wind speed that is (1) equal to or greater than the generation unit's manufacturer-specified minimum levels required for the generation unit to produce energy and (2) equal to or less than the generation unit's manufacturer-specified maximum levels at which the generation unit can safely produce energy. 1.37 "Surplus Energy" - All Net Energy produced by the Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date. 1.38 "Total Cost of the Facility" - The total replacement cost of structures, equipment and appurtenances. 1.39 "Wind Energyroduction Forecast" A forecast of energy deliveries from this Facility provided by an Idaho Power provided wind forecasting model. The Facility shall be responsible icr ar allocated portion of the total costs of the forecasting model as specified in Appendix E. ARTICLE IL NO RELIANCE ON IDAHO POWER 2.1 Seller Independent Investigatjg - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has investigated and determined that it is capable of perfonning hereunder and has not relied upon the advice, experience or expertise of Idaho Power in connection with the transactions contemplated by this Agreement. 2.2 Seller Independent Experts - All professionals or experts including, but not limited to, engineers, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been solely those of Seller. -6- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 ARTICLE III: WARRANTIES 3.1 No Warranty by Idaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of Seller's design, specifications, equipment or facilities, including, but not limited to, safety, durability, reliability, strength, capacity, adequacy or economic feasibility. 3.2 Qualifying Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term is used and defined in 18 CFR 292.201 et seq. After initial qualification, Seller will take such steps as may be required to maintain the Facility's Qualifying Facility status during the term of this Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status and associated support and compliance documents at anytime during the term of this Agreement. ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY 4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of energy from the Seller, Seller shall: 4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's operations have been obtained from applicable federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, 18 CFR 292.201 et seq. and a Qualifying Facility certificate. 4.1.2 Opinion of Counsel - Submit to Idaho Power an Opinion Letter signed by an attorney admitted to practice and in good standing in the State of Idaho providing an opinion that Seller's licenses, permits and approvals as set forth in paragraph 4.1.1 above are legally and validly issued, are held in the name of the Seller and, based on a reasonable independent review, counsel is of the opinion that Seller is in substantial compliance with said permits as of the date of the Opinion Letter. The Opinion Letter -7- Exhibit 2112 GNR-E-1 1-03 R. Guy; Idaho Wind Partners I, LLC Page 8 will be in a form acceptable to Idaho Power and will acknowledge that the attorney rendering the Opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance of the form will not he unreasonably wititheld. The Opinion Letter will be governed by and shall be interpreted in accordance with the legal opinion accord of the American Bar Association Section of Business Law (1991). 4.1.3 Initial Capacity Determination - Submit to Idaho Power such data as Idaho Power may reasonably require to perform the Initial Capacity Detennination. Such data will include but not be limited to, equipment specifications, prime mover data, resource characteristics, normal and/or average operating design conditions and Station Use data. Upon receipt of this information, Idaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity Determination within a reasonable time. 4.1.3.1 If the Maximum Capacity specified in Appendix B of this Agreement and the cumulative manufacturer's Nameplate Capacity rating of the individual generation units at this Facility is less than 10 MW, the Seller shall submit detailed, manufacturer-specific, verifiable data of the Nameplate Capacity ratings of the actual individual generation units to be installed at this Facility. Upon verification by Idaho Power that the data provided establishes the combined nameplate rating of the generation units to be installed at this Facility is less than 10 MW, it will be deemed that the Seller has satisfied the Initial Capacity Determination for this Facility. 4.1.4 Namenlate Capacity.- Submit to Idaho Power Manufacturer's and engineering documentation that establishes the Nameplate Capacity of each individual generation unit that is included within the entire Facility. Upon receipt of this data, Idaho Power shall review the provided data and determine if the Nameplate Capacity specified is reasonable based upon the Manufacturer's specified generation ratings for the specific generation units. -S. 716/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 4.1 .5 Engineer's- Certifications - Submit an executed Engineers Certification of Design & Construction Adequacy and an Engineer's Certification of Operations and Maintenance (O&M) Policy as described in Comn,ission Order No. 21690. These certificates will be in the form specified in Appendix C but may be modified to the extent necessary to recognize the different engineering disciplines providing the certificates. 4.1.6 Insurance - Submit written proof to Idaho Power of all insurance required in Article XIII. 4.1.7 Interconnection -Provide written confirmation from Idaho Power's delivery business unit that Seller has satisfied all interconnection requirements. 4.1.8 Network Resource Designation - 4.1.8.1 Provide all data required by the Idaho Power delivery business unit to enable the Seller's Facility to be designated as a network resource. 4.1.8.2 Receive confirmation from the Idaho Power delivery business unit that the Seller's Facility has been designated as a network resource. 4J.9 Reserve Accounts - Demonstrate to Idaho Power's satisfaction that the Seller has established and funded (1) a debt service reserve account in a form and with a find holder which complies with paragraph 19.3.2 and (2) demonstrate to Idaho Power's satisfaction that the Seller has established a maintenance reserve account in a form and with a fund holder acceptable to Idaho Power. Said maintenance reserve account shall be structured and funded as follows: 4.1.9.1 All funds will be prudently invested, in a guaranteed, insured account and all cost of implementing and operating the maintenance reserve account shall be paid by the Seller. All interest earned on the funds on deposit will be retained in the maintenance reserve account. At the end of the term of this Agreement, any balance remaining in the maintenance reserve account shall be the property of the Seller. 4.1.9.2 Within 60 days after the completion of each Contract Year, the Seller will deposit cash in the maintenance reserve account in an amount equal 9- 1i Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 to, or exceeding 5% of the Facility's estimated gross income for the ensuing Contract Year, less an amount equal to the Facility's actual maintenance, repair and replacement expenses (maintenance expenses) incurred during the prior Contract Year. At Seller's option, the cash required hereunder to be maintained in such reserve may be replaced by an irrevocable standby letter of credit in the same amount. 4.1.9.3 The minimum amount of deposit retained in the maintenance reserve account shall be $2,000,000. This minimum amount will be adjusted either upward or downward to reflect current replacement cost of a complete wind turbine/generator. (i.e. tower, nacelle, generator, control unit, associated wiring, etc) This adjustment will be made at the beginning of each 3' contract year and the replacement value determined by the replacement cost valuation methods as described within paragraph 13.2.6.c. In the event this adjustment results in a balance in this account exceeding 10% of the cost of the actual replacement cost of a complete wind turbine/generator then the Seller may request a disbursement of funds as specified in paragraph 4.1.9.6. 4.1.9.4 At the time Seller makes the deposit described in paragraph 4.1.9.2, Seller will provide Idaho Power with an accurate, verifiable report showing the prior Contract Year's actual maintenance expenses, identified by appropriate FERC maintenance account number, and the estimate of the Facility's gross income for the ensuing Contract Year used to compute the deposit amount, together with documentation supporting the estimate of gross income. 4.1.9.5 If at any time it appears that the maintenance expense for that Contract Year will exceed 5% of the Facility's estimated gross income for that Contract Year, the Seller may request that Idaho Power consent to the -10- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 release of funds from the maintenance reserve account in an amount sufficient to pay the anticipated additional maintenance expenses. The request must include documentation supporting the Seller's projection of excess maintenance expense, identified by appropriate PERC maintenance account number, and such documentation shall he submitted to Idaho Power. Upon approval by Idaho Power, the required funds will be released to Seller in accordance with Paragraph 4.1.9.6. 4.1.9.6 Control of the maintenance reserve account will be maintained by Idaho Power through the requirement of dual signatures on the account. The only authorized signers will be the chief Operating Officer and the chief Financial Officer of Idaho Power (or their respective designees) and the Treasurer of Seller (or his/her respective designee). Accordingly, funds will only be released from the maintenance reserve account upon the signatures of both Idaho Power authorized signers or one Idaho Power authorized signer and Seller's authorized signer. 4.1.9.7 At the end of each Contract Year, Seller will provide Idaho Power with evidence of compliance with the maintenance reserve account requirements set out in this Agreement. This evidence of compliance will be provided in a manner and form acceptable to Idaho Power. The maintenance reserve fund will be subject to the lien rights described in paragraph 4. ].10 below. 4.1.9.8 If the Facility has established a maintenance reserve account in a form and amount that meets or exceeds the maintenance reserve requirements as defined below for compliance with other parties having a financial interest in this Facility, the Setter shall provide Idaho Power with documentation of those requirements and upon Idaho Power's acceptance that the financial maintenance reserve requirements meet or - II- ,I,P1AA(' Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 exceed the requirements within this Agreement, Idaho Power will accept this financial maintenance reserve account as meeting these requirements. if Idaho Power accepts, this financial maintenance reserve account, it will be required that within 60 days of the end of each Contract Year the Seller provide Idaho Power documentation of the balance within the financial maintenance reserve account and the previous year's activity within the account. Idaho Power reserves the right to require the Seller to provide a maintenance reserve account as specified below at any time during the term of this Agreement if Idaho Power determines that the Seller's financial maintenance reserve account no longer meets or exceeds these requirements. 4.1.10ps[y..InEerests -Provide Idaho Power with acceptable security against Sellers default under this Agreement. Acceptable security will conform to Commission Order No. 21690 and No. 21800 and may include, but will not be limited to (1) title insurance, security interests in the real property associated with the Facility, equipment, fixtures, contracts, permits, easements, rights-of-way, land use agreements, funds held in escrow in which Seller has an interest and that relate to the operation of the Facility, and other reasonable security arrangements consistent with the Facility's financing and ownership arrangements; or (2) the seller may post liquid security in an amount equal to at least thirty five percent (35%) of the Accumulated Overpayment Amount specified for that year in Appendix F. 4.1.10.1 Idaho Power's security interests will be superior and senior to all liens other than the first mortgage lien and other security interests permitted in accordance with paragraphs 4.1.102. The Seller shall be responsible for all costs reasonably incurred by Idaho Power to review and perfect this security interest not to exceed $15,000. -12- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 4.1.10.2 If Seller desires to incur a first mortgage lien or other security interests that will be superior to Idaho Power's security interests in the Facility, at least twenty-one (21) days prior to their execution, Seller shall provide Idaho Power with draft copies of the deeds of trust, mortgages and other security agreements that will be used to secure such first lICO. Upon their execution Seller shall provide Idaho Power with copies of the executed first lien documents. The executed first lien documents shall not be assigned, amended, modified, or extended, and no replacement or refinancing of any nature shall be undertaken, without Idaho Power's prior written consent which consent shall not be unreasonably withheld. In no event will the amount of any first mortgage lien exceed $56,250,000. The total amount of all refinanced or replaced first liens shall not exceed the unpaid principal balance of the first mortgage liens they replace. 4.1.10.3 Other than the first mortgage liens permitted herein, or temporary mechanic's, statutory or similar liens incurred in the ordinary course of business in an amount not to exceed in aggregate $50,000, Seller will not permit any liens or encumbrances of any nature whatsoever to be placed on the Facility without Idaho Power's prior written consent, which consent will not be unreasonably withheld. If any unpermitted lien or encumbrance is placed on the Facility, Seller will provide Idaho Power with a bond, insurance or other security acceptable to Idaho Power in an amount sufficient to secure the full discharge of such unpermitted lien or encumbrance. 4.1.10.4 During the remaining term of this Agreement, Seller shall maintain compliance with all requirements of Idaho Power's security interests described above in paragraph 4.1.10 of this Agreement and -13- Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 commission Order No. 21690. Seller's failure to comply with those requirements, will be an event of default and in addition to any other remedies available under this Agreement, Coimnission Order No. 21690, and the security interests, Seller will be required by Idaho Power to post liquid security ("Performance Security") in a form as specified in Appendix D in an amount equal to at least thirty five percent (35 01a) of the Accumulated Overpayment Amount specified for that year in Appendix F. Failure to maintain and provide the liquid security required by this Agreement and Commission Order No. 21690 and No. 21800 shall be an event of default. 4.1.11 Written Acceptance - Request and obtain written confirmation from Idaho Power that all conditions to acceptance of energy have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's request and will not be unreasonably withheld by Idaho Power. AWFJCLE V: TERM AND OPERATION DATE 5.1 Term - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on the date first written and shall continue in full force and effect for a period of twenty (20) Contract Years from the Operation Date. 5.2 Operation Date.. The Operation Date may occur only after the Facility has achieved all of the following: a)Achieved the First Energy Date. b)Commission approval of this Agreement in a form acceptable to Idaho Power has been received. c)Seller has demonstrated to Idaho Powers satisfaction that the Facility is complete and able to provide energy in a consistent, reliable and safe manner. d)Seller has requested an Operation Date from Idaho Power in a written format. -14- 7/6/2009 Exhibit 2112 GNR-E-1 1 -03 R. Guy: Idaho Wind Partners I, LLC Page 15 e) Seller has received written confirmation from Idaho Power of the Operation Date. This confirmation will not be unreasonably withheld by Idaho Power. 53 Seller shall cause the Facility to achieve the Operation Date on or before the Scheduled Operation Date.. 5.3.1 If the Operation Date occurs after the Scheduled Operation Date but prior to 90 clays past the Scheduled Operation Date, Seller shall pay Idaho Power Delay Liquidated Damages calculated monthly as follows: Delay Liquidated Damages are equal to ((Current month's Initial Year Net Energy Amount as specified in paragraph 6.2.1 divided by the number of days in the current month) multiplied by the current months Delay Period) multiplied by the current months Delay Price. 5.3.2 If the Seller's Facility has not achieved the Operation Date within 90 days after the Scheduled Operation Date, the Seller shall pay Idaho Power Delay Liquidated Damages calculated as follows: Twenty dollars ($20) multiplied by the Maximum Capacity Amount with the Maximum Capacity Amount being measured in KW. 5.4 If Seller fails to achieve the Operation Date within ninety (90) days after the Scheduled Operation Date, such failure will be a Material Breach and Idaho Power may terminate this Agreement. 5.5 Seller shall pay Idaho Power any calculated Delay Liquidated Damages within seven (7) days of when Idaho Power calculates and presents any Delay Liquidated Damages billings to the Seller. Seller's failure to pay these damages within the specified time will be a Material Breach of this Agreement and Idaho Power may draw funds from the Delay Security provided by the Seller in an amount equal to the calculated Delay Liquidated Damages. 5.6 The Parties agree that the damages Idaho Power would incur due to delay in the Facility achieving the Operation Date on or before the Scheduled Operation Date would be difficult or impossible to predict with certainty, and that the Delay Liquidated Damages are an appropriate approximation of such damages. Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 5.7 Within thirty (30) days of the date of a Commission Order as specified in Article XXI approving this Agreement; Seller shall post liquid security ("Delay Security") in a form as described in Appendix D equal to or exceeding the amount calculated in paragraph 5.7.1. Failure to post this Delay Security in the time specified above will be a Material Breach of this Agreement and Idaho Power may terminate this Agreement. 5.7.1 Twenty dollars ($20) multiplied by the Maximum Capacity Amount with the Maximum Capacity Amount being measured in kW. 5.7-1 -1 if the Seller provides Idaho Power with certification that a generation interconnection agreement specifying a schedule that will enable the Facility to achieve the Operation Date no later than the Scheduled Operation Date has (1) been completed and the Seller has paid all required interconnection costs or (2) a generation interconnection agreement is substantially complete and all material costs of interconnection have been identified and agreed upon and (3) the Seller is in compliance with all terms and conditions of the generation interconnection agreement, the Delay Security calculated in accordance with paragraph 5.7.1 will be reduced by ten percent (10%). 5.7.1.2 If the Seller has received a reduction in the calculated Delay Security as specified in paragraph 5.7.1.1 and subsequently (I) at Seller's request, the generation interconnection agreement specified in paragraph 5.7.1.1 is revised and as a result the Facility will not achieve its Operation Date by the Scheduled Operation Date or (2) if the Seller does not maintain compliance with the generation interconnection agreement the full amount of the Delay Security as calculated in paragraph 5.7.1 will be subject to reinstatement and will be due and owing within 5 business days from the date Idaho Power requests reinstatement. Failure to timely reinstate the Delay Security will be a Material Breach of this Agreement, 5.7.2 Idaho Power shall release any remaining security posted hereunder after all calculated Delay Liquidated Damages are paid in full to Idaho Power and the earlier of (1) 30 days - 16- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 after the Operation Date has been achieved or (2) 120 days after the termination of this Agreement. 5.7.3 Early Termination Payment - At any time after the Operation Date has been achieved, Idaho Power terminates this Agreement due to any default by the Seller, Seller will make a termination payment to Idaho Power. The termination payment will include but not be limited to the Accwnulated Overpayment Amount specified in Appendix F of this Agreement. ARTICLE VI: PURCHASE AND SALE OF NET ENERGY 6.1 Delivery and Acceotance of Net Energy - Except when either Party's performance is excused as provided herein, Idaho Power will purchase and Seller will, sell all of the Net Energy to Idaho Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the Setter to Idaho Power at the Point of Delivery. At no time will the total amount of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery exceed the Maximum Capacity Amount. 6.2 Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly amounts. These amounts shall be consistent with the Mechanical Availability Guarantee. Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 6.2.1 jatijal Year Monthly Net Energy Amounts: Month kwh March 5,735,994 Season 1 April 5,541,459 May 5,207,971 Jullyvember ugust Season 2 December June September Season 3 October January February 3,490,508 3,618,345 4,201,949 4,824,460 4,552,111 4,029,647 4,618,809 5,018,995 4,746,646 6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Year Net Energy Amounts as specified in paragraph 6.2 shall constitute an event of default. 6.4 Mechanical. Availability Guarantee - Alter the Operational Date has been established, the Facility shall achieve a minimum monthly Mechanical Availability of 85% for the Facility for each month during the full term of this Agreement (the "Mechanical Availability Guarantee"). Failure to achieve the Mechanical Availability Guarantee shall result in Idaho Power calculating damages as specified in paragraph 6.4.4. 6.4.1 At the same time the Facility provides the Monthly Power Production and Switching Report, (Appendix A) the Seller shall provide and certify the calculation of the Facility's current month's Mechanical Availability. The Seller shall include a summary of: (a) Forced Outages, (b) Force Majeure events, (c) wind speeds and the impact on generation output and (c) scheduled maintenance and Station Use information that was used to calculate the current month's Mechanical Availability - 18- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 6.4.2 The Facility shall maintain detailed documentation supporting its calculation of the Facility's Mechanical Availability. These records will be retained for three years. 6.4.3 Idaho Power shall have the right to review and audit the documentation supporting the calculation of the Facility's Mechanical Availability at reasonable times at the Seller's offices. 6.4.4 If the current month's Mechanical Availability is less than the Mechanical Availability Guarantee, damages will be calculated as: The Mechanical Availability Guarantee multiplied by the Facility's aggregate Nameplate Capacity of all generation imits at the Facility multiplied by the hours of the month minus the current month's measured Losses and Station Use minus the month's actual Net Energy deliveries multiplied by the Energy Shortfall Price. 6.4.5 Any damages calculated in paragraph 6.4.4 will be offset against the current month's energy payment. If an unpaid balance remains after the damages are offset against the energy payment, the Facility shall pay in full the remaining balance within fifteen (15) days of the date of the invoice. ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT 7.1 Heavy Load Purchase Price - For all Net Energy received during Heavy Load Hours, Idaho Power will pay the [evelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30744, 30738 and adjusted in accordance with Commission Order 30415 for Heavy Load Hour Energy deliveries, and adjusted in accordance with Commission Order 30488 for the wind integration charge and with seasonalization factors applied: -19- Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Season 1 -(73.50 %) Season 2- (120.00 %) Season 3 - (100.00%) Mills/kWh Mills/kWh Mills/kWh 63.65 206.47 87.64 7.2 Light Load Purchase Price - For all Net Energy received during Light Load Hours, Idaho Power will pay the lcvelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with Commission Order 30415 for Light Load 1-Jour Energy deliveries, and adjusted in accordance with commission Order 30488 for the wind integration charge and with seasonalization factors applied: Season 1 -(73.50 %) Season 2- (120.00 %) Season 3 -(100.00 % MiiçWj Mills/kWh Mills/kWh 58.73 97.73 80.36 7.3 All flours EnergiPrice - The price to be used in the calculation of the Surplus Energy Price and Delay Damage Price shall be the levelized energy price for a Facility scheduled to come on-line during calendar year 2010, for a contract term of twenty (20) years in accordance with commission Order 30744, 30738 and adjusted in accordance with Commission Order 30488 for the wind integration charge and with seasonalization factors applied: Season 1 - (73.50 %) Season 2 -(120.00 %) Season 3 -(100.00%) Mills/kWh Mills/kWh Mills/kWh 61.47 102.58 84.40 7.4 Surplus Energy Price - For all Surplus Energy, Idaho Power shall pay to the Seller the current month's Market Energy Reference Price or the All flours Energy Price specified in paragraph 7.3, whichever is lower. 7.5 inadvertent Energy -- 7.5.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW multiplied by the hours in the specific month in which the energy was -20- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 delivered. (For example January contains 744 hours. 744 hours times 10,000 kW 7,440,000 kWh. Energy delivered in January in excess of 7,440, 000 kWh ii) this example would be Inadvertent Energy.) 7.5.2 Although Seller intends to design and operate the Facility to generate no more than 10 average MW and therefore does not intend in generate Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy. 7.6 Payment Due Date - Energy payments, less Wind Energy Production Forecasting Monthly Cost Allocation (MCA), will be disbursed to the Seller within 30 days of the date which Idaho Power receives and accepts the documentation of the monthly Mechanical Available Guarantee and the Net Energy actually delivered to Idaho Power as specified in Appendix A. 7.7 Continuing Jurisdiction of the Commission This Agreement is a special contract and, as such, the rates, terms and conditions contained in this Agreement will be construed in accordance with Idaho Power company v. Idaho Public Utilities Commission and Afton Energy, Inc., 107 Idaho 781, 693 P.2d 427 (1984), Idaho Power company v. Idaho Public Utilities Commission, 107 Idaho 1122, 695 P.2d 1 261 (1985), Afton Energ', Inc, v. Idaho Power company, 111 Idaho 925, 729 P.2d 400 (1986), Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18 CFR 292.303-308 ARTICLE VIII: ENVIRONMENTAL ATTRIBUTES 8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits (RECs) and Tradable Renewable Certificates (]'Rcs) directly associated with the production of energy from the Seller's Facility. -21- /1UI2UU Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 ARTICLE IX; FACILITY AND INTERCONNECTION 9.1 Pign.oFacility - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full term of the Agreement. 9.2 Interconnection Facilities - Except as specifically provided for in this Agreement, the required Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B. The Seller is responsible for all costs associated with this equipment as specified in Schedule 72 and the Generation Interconnection Process, including but not limited to initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly Idaho Power operations and maintenance expenses. ARTICLE X: METERING AND TELEMETRY 10.1 Metering- Idaho Power shall, for the account of Seller, provide, install, and maintain Metering and Telemetry Equipment to be located at a mutually agreed upon location to record and measure power flows to Idaho Power in accordance with this Agreement and Schedule 72. The Metering Equipment will be at the location and the type required to measure, record and report the Facility's Net Energy, Station Use, Inadvertent Energy and maximum energy deliveries (kW) at the Point of Delivery in a manner to provide Idaho Power adequate energy measurement data to administer this Agreement and to integrate this Facility's energy production into the Idaho Power electrical system. 10.2 I.eneI1y - Idaho Power will install, operate and maintain at Seller's expense metering, communications and telemetry equipment which will be capable of providing Idaho Power with continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility. -22- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 ARTICLE Xl- REcORDg 11.1 Maintenance of Records - Seller shall maintain at the Facility or such other location mutually acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records in a form and content recommended by Idaho Power. 11.2 Inspection - Either Party, after reasonable notice to (he other Party, shall have the right, during normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility, ARTICLE XII: OPERATIONS 12.1 Q9mmunications - Idaho Power and the Seller shall maintain appropriate operating communications through Idaho Power's Designated Dispatch Facility in accordance with Appendix A of this Agreement. 12.2 Energy Accetanee - 12.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of Delivery, if it is prevented from doing so by an event of Force Majeure, Forced Outage or temporary disconnection of the Facility in accordance with Schedule 72. If, for reasons other than an event of Force Majeure or a Forced Outage, a temporary disconnection under Schedule 72 exceeds twenty (20) days, beginning with the twenty-first day of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net Energy at a rate equivalent to the pro rata daily average of the amounts specified for the applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption, curtailment or reduction is terminated. 12.2.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may temporarily disconnect the Facility from Idaho Power's transmission/distribution system as specified = -23- I/OIf 009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 within Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. 12.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount at any moment in time. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. 12.3 Scheduled Maintenance - On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 12.4 Maintenance Coordination -The Seller and Idaho Power shall, to the extent practical, coordinate their respective line and Facility maintenance schedules such that they occur simultaneously. 12.5 Contact Prior to CQuitailment - Idaho Power will make a reasonable attempt to contact the Seller Prior to exercising its rights to interrupt the interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events, Idaho Power may not be able to provide notice to the Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho Power. RICLE XIII: INDEMNIFICATION AND INSURANCE 13.1 Indemnification - Each Party shall agree to hold harmless and to indemnify the other Party, its officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage, expense and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifying Party's construction, ownership, operation or -24- 716/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 maintenance of, or by failure of, any of such Party's works or fitcilities used in connection with this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit asserting a claim covered by this indemnity. The indemnifying Party shall pay all documented costs, including reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity. 13.2 Insurance - During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 13.2. t Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.2 All Risk Property Insurance with minimum limits not less than eighty percent (80%) of the Total Cost of the Facility. The Property Insurance coverage must be written on a Replacement Cost basis and will include - (a)Standard fire policy (b)Extended coverage endorsement; and (c)Vandalism and malicious mischief endorsement. (d)The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.3 Boiler and Machinery insurance with minimum limits not less than eighty percent (80%) of the total Replacement Cost of the equipment covered in (a) below: (a)All boiler and machinery coverage must be written on a "comprehensive form" basis to provide coverage against the sudden and accidental breakdown of all boilers, machinery and electrical equipment, turbines, generators, and switchgear. (b)Coverage under this insurance must be written on a Replacement Cost basis; and -25- Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 (e) The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.4 Earthquake & Flood (catastrophic perils) Insurance with limits not less than eighty percent (80%) of the Total Cost of the Facility. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 13.2.5 Business Interruption (Loss of Income) Insurance with minimum daily limits not less than twenty percent (20 0/6) of the Facility's estimated annual income; (a)Coverage will include Seller's loss of earnings when business operations are curtailed or suspended because of a loss due to an insured peril, Coverage may be written on an actual loss sustained basis. (b)This insurance coverage must be endorsed to both the All Risk 1roperr Insurance Policy and the Boiler and Machinery Insurance Policy; (c)The deductible for such insurance shall be consistent with current insurance Industry Utility practices for similar property. (d)The estimated annual income shall be computed on the basis of the Net Energy Amounts contained in paragraph 6.2. 13.2.6 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a) An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. (c)in the case of the insurance coverages described in sub-paragraphs 13.2.1, 13.12, 13.2.3, and 13.2.4 above, the Total Cost of the Facility will include any Seller- furnished Disconnection Equipment and/or Interconnection Facilities. The Total Cost of the Facility and total Replacement Cost of equipment will be adjusted either upward or downward to reflect the current replacement cost of the Facility -26- 716/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 or equipment. This adjustment will be based on either (I) an appraisal made by, or for, the Seller's insurance company, or (2) use of an approved "industrial cost trend index" published by a national insurer (i.e., Factory Mutual Engineering and Research Building Cost Index; Kemper Replacement Value Cost Trends - Industrial Machinery & Equipment; Industrial Risk insurers, U.S. Replacement Cost Factors) (3) any other mutually agreed upon methodology of establishing the total replacement cost. Such adjustment shall be made, at a minimum, every fifth Contract Year during the term of this Agreement. A copy of these computations and/or appraisals will be submitted to Idaho Power for Idaho Power's review and approval. 13.2.7 Insurance Alternatives - Comprehensive General Liability Insurance as defined in paragraph 13.2.1 will be required at all Limes throughout the term of this agreement. Alternative arrangements creating equivalent protection for Idaho Power in lieu of the insurance requirements specified in paragraphs 13.2.2, 13.2.3, 112.4 and 13.2.5 of this Agreement may be submitted to Idaho Power for review. Only upon Idaho Power's written acceptance of these alternate arrangements may the Seller be allowed to forgo the insurance requirements of paragraphs 13.2.2, 13.2.3, 13.2.3 and 13.2.5 of this Agreement. Any and all acceptable alternative arrangements must place Idaho Power in an equal or better position in the event of the occurrence of an insurable event. 13.3 Seller to Provide Certificate of Insurance - As required in paragraph 4.1.6 herein and annually thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 13.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by paragraph 13.2 shall lapse for any reason, Seller will immediately notil' Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is -27- 7i&2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 28 taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute a Material Breach of this Agreement. ARTICLE XIV: FORCE MAJEU 14.1 As used in this Agreement, "Force Maj cure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence. such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law Or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: (I) The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. ARTICLE XV: LIABILITY: DEDICATION 1 5.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement. No undertaking by one -28- 716/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 Party to the other under any provision of this Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of Idaho Power as an independent public utility corporation or Seller as an independent individual or entity. ARTICLE XVI: SEVERAL OBLIGATIONS 16.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall ever be construed to create an association, trust, partnership or joint venture or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. ARTICLE XVII: WAIVER 17.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. ARTICLE XVIII: CHOICE OP LAWS AND VENUE 18,1 This Agreement shall be construed and interpreted in accordance with the laws of the State of Idaho without reference to its choice of law provisions. 18.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of the Fourth Judicial District of Idaho in and for the County of Ada. -29- JIo/20U9 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 A1kTIçL111XLPJPUTES AND DEFAULT 19.1 Dispu - All disputes related to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. 19.2 Notice of Default - 19.2.1 Defaults. if either Party fails to perform any of the terms or conditions of this Agreement (an "event of default"), the nondefaulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 19.2.2 Material Breaches - The notice and cure provisions in paragraph 19.2.1 do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 19.3 Security for Performance - Prior to the Operation Date and thereafter for the fbll term of this Agreement, Seller will provide Idaho Power with the following: 19.3.1 Insuranee - Evidence of compliance with the provisions of paragraph 13.2. If Seller fails to comply, such failure will be a Material Breach and may paly be cured by Seller supplying evidence that the required insurance coverage has been replaced or reinstated. 19.3.2 Debt Service Reserve Account - The Seller will establish a debt service reserve account. Said debt service reserve account will be separate from the maintenance reserve account and shall be structured as follows: -30- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners?, LLC Page 31 19.32.1 All funds will be prudently invested, in a guaranteed, insured account and all cost of implementing and operating the Debt Service Reserve Account shall be paid by the Seller. All interest earned on the funds on deposit will be retained in the Debt Service Reserve Account. At the end of the term of this Agreement, any balance remaining in the Debt Service Reserve Account shall be the property of the Seller. 19.3.2.2 Control of the Debt Service Reserve Account will be maintained by Idaho Power through the requirement of dual signatures on the account. The only authorized signers will be the chief Operating Officer and the Chief Financial Officer of Idaho Power (or their respective designees) and the Treasurer of Seller (or his/her respective designee). Accordingly, funds will only be released from the Debt Service Reserve Account upon the signatures of both Idaho Power authorized signers or one Idaho Power authorized signer and Seller's authorized signer. 19.3.2.3 During the period of time in which the Facility acts as security for a first mortgage lien which is senior to Idaho Powers security interest in the Facility as described in paragraph 4.1.10, Seller shall maintain a debt service reserve account in cash or an irrevocable standby letter of credit in an amount equal to twenty percent (20 %) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1,000. The estimated gross Contract Year revenue is calculated to be the sum of the monthly Net Energy Amounts specified in paragraph 6.2 multiplied by the All Energy Price specified in paragraph 7.3. 19.3.2.4 During the period when the Facility is security for a first mortgage lien that is senior to Idaho Power's lien, funds from the debt service reserve account will only be released to the holder of the first mortgage lien. Funds from said account shall be released only when, and only to the extent that Seller -3]- //OIbUU) Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 32 certifies to Idaho Power that after payment of all operating costs, the Facility's revenues are insufficient to make full debt service and/or lease payments on the Facility. 19.3.2.5 Upon full satisfaction of the above-referenced first mortgage lien and when Idaho Power's security interest becomes the senior security interest in the Facility, a withdrawal from the Debt Service Reserve Account may be requested by the Seller for the amount in the debt service reserve account which exceeds five percent (51/o) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1,000. Seller shall maintain a debt service reserve account in cash or an irrevocable standby letter of credit in an amount equal to five percent (5%) of the Facility's estimated gross Contract Year revenue rounded to the nearest $1 ,000. 193.2.6 During the period when Idaho Power's security interest is the senior security interest in the Facility, funds from the debt service reserve account will only be released to pay operating costs for the Facility. 19.3.2.7 For purposes of the debt service reserve account, operating costs are limited to those costs necessary for the operation of the Facility such as taxes, insurance expenses, lease payments and other ordinary and necessary operating expenses. Operating costs shall not include any disbursements other than lease payments which would constitute a profit or return on investment. 19.3.2.8 After any release of funds from the debt service reserve account, Seller shall he obligated to restore the debt service reserve account to the amounts provided for in paragraphs 19.3.2.3 or 19.3.2.5, whichever is applicable, prior to Seller disbursing funds which would constitute a profit or return on investment. Until the debt service reserve account is fully restored, Seller will, within sixty (60) days of the completion of each Contract Year, -32- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 33 provide Idaho Power with a report prepared by Sellers outside accountants showing that Seller has not breached its obligations under this paragraph 19.3.2. 19.3.2.9 If the Facility has established a debt service reserve account in a form and amount that meets or exceeds the Debt Service Reserve Account requirements as defined below for compliance with other parties having a financial interest in this Facility, the Seller shall provide Idaho Power with documentation of those requirements and upon Idaho Power's acceptance that the financial debt service reserve requirements meet or exceed the requirements within this Agreement, Idaho Power will accept this fInancial debt service reserve account as meeting these requirements. If Idaho Power accepts this financial debt service reserve account it will be required that within 60 days of the end of each Contract Year the Seller provide Idaho Power documentation of the balance within the financial debt service reserve account and the previous year's activity within the account. Idaho Power reserves the right to require the Seller to provide a Debt Service Reserve Account as specified below at any time during the term of this Agreement if Idaho Power determines that the Seller's financial debt reserve account no longer meets or exceeds these requirements. 19.3.2.10 Any breach of paragraph 19.3.2 by Seller will constitute a Material Breach of this Agreement. 19.3.3 Engineer's Certifications - Every three (3) years after the Operation Date, Seller will supply Idaho Power with a Certification of Ongoing Operations and Maintenance (O&M) from a Registered Professional Engineer licensed in the State of Idaho, which Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's failure to supply the required certificate will be an event of default. Such a default may only be cured by Seller providing the required certificate; and -33- //OLWU9 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 1 9.3.4 Licenses and Permit - During the full term of this Agreement, Seller shall maintain compliance with all permits and licenses described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply Idaho Power with copies of any new or additional permits or licenses. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain compliance with the permits and licenses described in paragraph 4.1.1 or to provide the documentation required by this paragraph, such failure will be an event of default and may 201y be cured by Seller submitting to Idaho Power evidence of compliance from the permitting agency. ARTICLE XX: GOVERNMENTAL AUTHORIZATION 20.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over ei Elier Party of this Agreement. ARTICLE XXI: COMMISSION ORDER 21.1 This Agreement shall become finally effective upon the Commission's approval of all terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes. ARTICLE XXI1: SUCCESSORS AND ASSIGNS 22.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the respective successors and assigns of the Parties hereto, except that no assignment hereof by either Party shall become effective without the written consent of both Parties being first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing, any party which Idaho Power may consolidate, or into which it may merge, or to which it may convey or transfer substantially all of its electric utility assets, shall automatically, without further act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights, -34- 716/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 obligations and interests under this Agreement. This article shall not prevent a financing entity with recorded or secured rights from exercising all rights and remedies available to it under law or contract. Idaho Power shall have the right to be notified by the financing entity that it is exercising such rights or remedies. ARTICLE XXIII: MODIFICATI.QN 23.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXIV: TAXES 24.1 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities. ARTICLE XXV: NOTICES 25.1 All written notices under this Agreement shall be directed as follows and shall be considered delivered when faxed, c-mailed and confirmed with deposit in the U.S. Mail, first-class, postage prepaid, as follows: To Seller: Contract Manager do Exergy Development Group of Idaho, LLC 802 W. Bannock sL,, le Floor Boise, ID 83702 info©exergydevelopmentgroup.com Cccv of document to: Peter Richardson Richardson & O'Leary Law Finn 515 N. 27h1 Street Boise, ID 83702 peter@richardsonandoleaIy.com To Idaho Power: -35- Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 Original document to: Senior Vice President, Delivery Idaho Power Company P 0 Box 70 Boise, Idaho 83707 Eniail:DMüioridahopower.com Copy of document to: Cogeneration and Small Power Production Idaho Power Company P 0 Box 70 Boise, Idaho 83707 E-mail: railphin®idahopower.com ARTICLE XXVI: ADDITIONAL TERMS AND CONDITIONS 26.1 This Agreement includes the following appendices, which are attached hereto and included by reference: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point of Delivery Appendix C - Engineer's Certifications Appendix D - Forms of Liquid Security Appendix B - Wind Energy Production Forecasting Appendix F - Accumulated Overpayment Amount ARTICLE XIl: SEVERABILITY 27.1 The invalidity or unenforceability of any term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall be construed in all other respects as if the invalid or unenforceable term or provision were omitted. ARTICLE XXVIII: COUNTERPARTS 28.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. -36- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 ARTJCLE XXJXNTIRE AGREEMENT 29.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements between the Parties concerning the subject matter hereof. IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed in their respective names on the dates set forth below: Idaho Power company Yahoo Creek Wind Park, LLC By By______ Dan B. Minor Senior Vice President, Delivery Dated I Dated O7 2's "Idaho Power" "Seller" -37- ,,6ruOs' Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 APPENDIX A A-1 MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end of each month the following required documentation will be submitted to: Idaho Power Company Attn: Cogeneration and Small Power Production P 0 Box 70 Boise, Idaho 83707 The Meter readings required on this report will be the reading on the Idaho Power Meter Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any other required energy measurements to adequately administer this Agreement. -38- 7/0/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Year Project Name Project Number: Address Phone Number: City State Zip Facility Station Station Metered Out0lIt ilssm Usage MaaimueLcenerao% Meter Number: End of Month kWh Miter Reading: kW Beginning of Month kWh Meter: Difference: Times Meter Constant: Net Generation kWh for the Mouth: Metered Demand: Breaker Opening Record Breaker Closing Record Pate Time Meter 1 I I Reason I r Date Time Meter * Breaker O pening Reason Codes I Lack of Adequate Prime Mover 2 Forced Outage of Facility I hereby certify that the above meter readings are true and correct as of Midnight on the last day of the 3 Disturbance of IPC0 System above month and that the switching record is accurate 4 Scheduled Maintenance and complete as required by the Firm Energy Sales 5 Testing of Protection Systems Agreement to which I am a Party. 6 Cause Unknown 7 Other (Explain) Signature Date -39- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 40 A-2 ROUTINE REPORTING Once the Facility has achieved its Operation Date and has operated in a reliable and consistent manner for a reasonable period of time, the Parties may m utually agree to modify this Routine Reporting requirement. Idaho Power Contact Information Daily Energy Production Reporting Call daily by 10 a.m., 1-800-356-4328 or 1-80Q-635-1093 and leave the following information: • Project Identification -Project Name and Project Number • Current Meter Reading • Estimated Generation for the current day • Estimated Generation for the next day Planned and Unplanned Project outages Call 1-800-345-1319 and leave the following information: • Project Identification - Project Name and Project Number • Approximate time outage occurred • Estimated day and time of project coming back online Seller's Contact Information 24-1-lour Proicct Opetional Contact Name: Telephone Number: Cell Phone: jgjcctOi-site Contact information Telephone Number: -40- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 41 APPENDIX B FACILITY AND POINT OF DELIVERY PROJECT NO. 31315070 Yahoo Creek Wind Park. LLC B-I DESCRIPTION OF FACILITY 21.0 MW Installed capacity wind conversion power generation facility utilizing 14 GE Mode] 1500 xle wind turbine generators with standard reactive power range 0.95 lead (reactive power leaving the generator) to 0.90 lagging. B-2 LOCATION OF FACILITY Near: Hagerman, ID Section 35 - W1/2, Sl/2NEI/4, N1/2SEI/4, SWI/45E1/4 Township: 7 S Range: JZE County: Twin Falls, ID. Section 36- ALL Township: IS Range: 12 County: Twin Falls, U). Section 2 - ALL Township: 83 Range: 12 County: Twin Falls, ID. Section 6— NI/2 Township: 8S Range: 125 County: Twin Falls, ID. Description of Interconnection Location: 400 W. 5900 N. Hageaman, connecting to the j.jng / Bliss 138 kV line. Nearest Idaho Power Substation: Tuana Substation B.-3 SCHEDULED FIRST ENERGY AND OPERATION DATE Seller has selected Setcmber 30, 2010 as the Scheduled First Energy Date. Seller has selected September 30, 201 Oas the Scheduled Operation Date. In making these selections, Seller recognizes that adequate testing of the Facility and completion of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project being granted an Operation Date. -4]- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 42 B-4 MAXIMUM CAPACITY AMOUNT: This value will be 21.0 MW which is consistent with the value provided by the Seller to Idaho Power in accordance with Schedule 72. This value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to the Idaho Power electrical system at any moment in time. B-5 POINT OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers Facility's energy is delivered to the Idaho Power electrical system. Schedule 72 will determine the specific Point of Delivery for this Facility. The Point of Delivery identified by Schedule 72 will become an integral part of this Agreement. 13-6 LOSSES If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will be established to measure the energy losses kWh) between the Seller's Facility and the Idaho Power Point of Delivery. This loss calculation will be initially set at 2 1/0 of the kWh energy production recorded on the Facility generation metering equipment. At such time as Seller provides Idaho Power with the electrica l equipment specifications (transformer loss specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the Agreement. If at any time during the term of this Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual kWh losses attributed to the electrical -42- 716/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 43 equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous months kWh loss calculations. B-7 METERING AND TELEMETRY Schedule 72 will determine the specific metering and telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry equipment must be able to provide and record hourly energy deliveries to the Point of Delivery and any other energy measurements required to administer this Agreement. These specifications will include but not be limited to equipment specifications, equipment location, Idaho Power provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Idaho Power provided equipment. Seller will arrange for and make available at Seller's cost communication circuit(s) compatible to Idaho Power's communications equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of providing Who Power with continuous instantaneous information on the Facilities energy production. Idaho Power provided equipment will be owned and maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total metering cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. -43- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 44 APPENDIX C ENGINEER'S CERTIFICATION OF OPERATIONS & MAINTENANCE POLICY The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter 'Agreement,' between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as IPCo Facility No. and is hereinafter referred to as the "Project." 4.That the Project, which is commonly known as the _Project, is located in Section Township ________ Range ________,Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period. 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. S. That Engineer has reviewed and/or supervised the review of the Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has been designed and built to appropriate standards, adherence to said O&M Policy will result in the Projects producing at or near the design electrical output, efficiency and plant factor for a twenty (20) year period. -44.- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 45 That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10, That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. By (P.E. Stamp) Date -45- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 46 APPENDIX C ENGINEER'S CERTIFICATION OF ONGOING OPERATIONS AND MAINTENANCE The undersigned - , on behalf of himself and _________ hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: I. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project which is the subject of the Agreement and this Statement is identified as JPCo Facility No. and hereinafter referred to as the "Project". 4 That the Project, which is commonly known as the - Project, is located in Section Township ________ Range ________, Boise Meridian, County, Idaho. 5.that Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period, 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project. 8.That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. It is Engineer's professional opinion, based on the Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy; that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the Project will continue producing at or near its design electrical output, efficiency and plant factor for the remaining ______ years of the Agreement. -46- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 47 9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. (P.E. Stamp) Date -47- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 48 ,PPENDJC ENGINEER'S CERT1FICA7I1ON or DESIGN & CONSTRUCTION ADEQUACY The undersigned on behalf of himself and hereinafter collectively referred to as "Engineer", hereby states and certifies to Idaho Power as follows: 1.That rmginanr is a Licensed Professional Engineer in good standing in the State of Idaho. 2.That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter "Agreement", between Idaho Power as Buyer, and as Seller, dated 3.That the cogeneration or small power production project, which is the subject of the Agreement and this Statement, is identified as IPCo Facility No and is hereinafter referred to as the "Project', 4.That the Project, which is commonly known as the Project, is located in Section - Township ________ Range Boise Meridian, County, Idaho. 5.That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy to Idaho Power for a five (5) year period 6.That Engineer has substantial experience in the design, construction and operation of electric power plants of the same type as this Project. 7.That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis of the plans and specifications independently. S. That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. -48-- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 49 Date Date 49- -49- 9. That the Project has been constructed in accordance with said plans and specifications, all applicable codes and consistent with Prudent Electrical Practices as that term is described in the Agreement. 10, That the design and construction of the Project is such that with reasonable and prudent operation and maintenance practices by Seller, the Project is capable of performing in accordance with the terms of the Agreement and with Prudent Electrical Practices for a twenty (20) year period. ii. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and opinions contained in this Statement. 12. That Engineer certifies that the above statements are complete, true and accurate to the best of his knowledge and therefore sets his hand and seal below. (P.R Stamp) 71612009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 50 APPENDIX D FORMS OF LIQUID SECURITY The Seller shall provide Idaho Power with commercially reasonable security instruments such as Cash Escrow Security, Guarantee or Letter of Credit as those terms are defined below or other forms ofliquid financial security that would provide readily available cash to Idaho Power to satisfy the Delay Security, Performance Security and any other security requirements within this Agreement. For the purpose of this Appendix D, the term "Credit Requirements" shall mean acceptable financial creditworthiness of the entity providing the security instrument in relation to the term of the obligation in the reasonable judgment of Idaho Power, provided that any guarantee and/or letter of credit issued by any other entity with a short-term or long-term investment grade credit rating by Standard & Poor's Corporation or Moody's Investor Services, Inc. shall be deemed to have acceptable financial creditworthiness. I. Cash Escrow Security - Seller shall deposit finds in an escrow account established by the Seller in a banking institution acceptable to both Parties equal to the required security alnount(s. A single escrow account may be established for all security requirements, however detailed accounting of the individual security requirements must be maintained by the Seller and Seller shall be obligated to maintain the appropriate amounts to satisfy each security requirement within the individually identified accounts. The Seller shall be responsible for all costs associated with establishing and maintaining the escrow account(s). 2. Guarantee or Letter of Credit Security Seller shall post and maintain in an amount equal to the required security amount(s): (a) a guaranty from a party that satisfies the Credit Requirements, in a form acceptable to Idaho Power at its discretion, or (b) an irrevocable .50- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 51 Letter of Credit in a form acceptable to Idaho Power, in favor of Idaho Power. The Letter of Credit will be issued by a financial institution acceptable to both parties. A single aggregate Guarantee or Letter of Credit may be provided for all security requirements, however detailed accounting of the individual security requirements must be maintained by the Seller and Seller shall be obligated to maintain the appropriate amounts to satisfy each security requirement within the individually identified accounts. The Seller shall be responsible for all costs associated with establishing and maintaining the Guarantee(s) or Letter(s) of Credit. -51- 7/6/2009 Exhibit 2112 GNR-E--1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 52 APPENDIX E WIND ENERGY PRODUCTION FORECASTING As specified in Commission Order 30488, Idaho Power shall make use of a Wind Energy Production Forecasting model to forecast the energy production from this Facility and other QF wind generation resources. Seller and Idaho Power will share the cost of Wind Energy Production Forecasting equally. The Facility's share of Wind Energy Production Forecasting is determined as specified below. Sellers share will not be greater than 0.1% of the total energy payments made to Seller by Idaho Power during the previous Contract Year. a. For every month of this Agreement beginning with the first fisH month after the Scheduled First Energy Date as specified in Appendix of this Agreement, the Wind Energy Production Forecasting Monthly Cost Allocation (MCA) will be due and payable by the Seller. Any Wind Energy Production Forecasting Monthly Cost Allocations (MCA) that are not reimbursed to Idaho Power shall be deducted from energy payments to the Seller. • As the value of the 0.1% cap of the Facilities total energy payments will not be known until the first Contract Year is complete, at the end of the first Contract Year any prior allocations that exceeded the 0.1 % cap shall be adjusted to reflect the 0.1% cap and if the Facility has paid the monthly allocations a refund will be included in equal monthly amounts over the ensuing Contract Year. lithe Facility has not paid the monthly allocations the amount due Idaho Power will be adjusted accordingly and the unpaid balance will be deducted from the ensuing Contract Year's energy payments. h. During the first Contract Year, as the value of the 0.1% cap of the Facilities total energy payments iI1 not be known until the first Contract Year is complete, -52- 7/612009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 53 Idaho Power will deduct the Facility's calculated share of the Wind Energy Production Forecasting costs specified in item b each month during the first Contract Year and subsequently refund any overpayment (payments that exceed the cap) in equal monthly amounts over the ensuing Contract Year. c.The cost allocation formula described below will be reviewed and revised if necessary on the last day of any month in which the cumulative MW nameplate of wind projects having Commission approved agreements to deliver energy to Idaho Power has been revised by an action of the Commission. d.The monthly cost allocation will based upon the following formula: Where: Total MW (TNW) is equal to the total nameplate rating of all QF wind projects that are under contract to provide energy to Idaho Power Company. Facility MW (MAD is equal to the nameplate rating of this Facility as specifIed in Appendix B. Annual Wind Energy Production Forecasting Cost (AFCost) is equal to the total annual cost Idaho Power incurs to provide Wind Energy Production Forecasting. Idaho Power will estimate the AECost for the current year based upon the previous year's cost and expected costs for the current year. At year-end, Idaho Power will compare the actual costs to the estimated costs and any differences between the estimated AFCost and the actual AFCost will be included in the next years AFCosI. Annual Cost Allocation (ACA) = AFCost X (FMW / TMW) And Monthly Cost Allocation (MCA) = ACA / 12 e.The Wind Energy Production Forecasting Monthly Cost Allocation (MCA) is clue and payable to Idaho Power. The MCA will first be netted against any monthly energy payments owed to the Seller. If the netting of the MCA against -53- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 54 the monthly energy payments results in a balance being due Idaho Power, the Facility shall pay this amount within 15 days of the date of the payment invoice. -S4- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 55 APPENDIX F ACCUMULATED OVERPAYMENT AMOUNT PROJECT NUMBER: 31315070 YAHOO CREEK WIND PARK The accumulated total of: The monthly Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 multiplied by the All [-lours Energy Price (Mill/kWh) specified in paragraph 7.3 less the same monthly Initial Year Monthly Net Energy Amounts specified in paragraph 6.2.1 multiplied by the monthly, seasonalized, Non Levelized rates where the seasonalization factors are the same as identified in paragraph 7.3 and Non Levelized rates are in accordance with IPUC order No. 30744 for all expired months of this Agreement and the next 12 months. In addition a cumulative interest Amount will be calculated on the expired month's Accumulated Overpayment Amount and included in the Accumulated Overpayment Amount based upon the Idaho Power overall allowed rate of return in the Idaho jurisdiction, which at the time of the signing of this agreement is 8.18%. This Accumulated Overpayment Amount will be initially calculated prior to the First Energy Date and then recalculated annually at the end of each Contract Year. - 55- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 56 APPENDIX. TABLE OF ACCUMULATED OVERPAYMENT ENERGY RATES AS DEFINE)) IN TI-ITS APPENDIX PROJECT NUM1ER: 31315070 YAHOO CREEK WIND PARK Per IPUC Order 30744 and 30738 Calendar Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Level ized Flat Energy Prices for a Project coming online in 2010 Season Season Season 2 3 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 61.47 102.58 84.40 Non Levelized Flat Energy Prices Season Season Season 1 2 3 52.59 86.82 71.55 54.13 29.56 73.65 55.42 91.84 75.45 56.74 94.18 77.40 58.09 96.58 79.40 59.54 99.16 81.55 60.95 101.67 83.64 62.48 104.38 85.90 63.97 107.01 88.09 65.49 109.71 90.34 67.04 112.48 92.65 68.64 115.32 95.01 70.28 118.22 97.44 71.96 121.21 99.92 7168 124.26 102.47 75.87 127.99 105.57 78.22 131.82 108.77 80.65 135.78 112.07 83.14 139.86 115.47 85.72 144.06 118.97 87.80 147.47 121.81 Accumulated Overpayment EnersvRate Season Seaôn Season 1 2 3 8.88 15.76 12.85 7.33 13.02 10.75 6.04 10.74 8.95 4.73 8.40 7.00 3.38 6.00 5.00 1.92 3.42 2.85 0.52 0.91 0.76 (1.01) (1.80) (1.50) (2.50) (4.43) (369) (4.02) (7.13) (5.94) (5.58) (9.90) (8.25) (7.18) (12.74) (10.61) .(8.81) (15.64) (13.04) (10.50) (18.63) (15.52) (12.22) (21.68) (18.07) (14.40) (25.41) (21.17) (16.75) (29.24) (24.37) (19.18) (33.20) (27.67) (21.67) (37.28) (31.07) (24.25) (41.48) (34.57) (26.33) (44.89) (37.41) -56- 7/612009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 57 APPENDIX F EXAMPLE OF ACCUMULATED OVERPAYMENT CALCULATION The calculation below is for example purposes only - to calculate the Accumulated Overpayment Amounts for this Agreement it will be required that the actual values from the agreement are used in this calculation. Example Assumptions: Project becomes Operational as of Jan 1, 2010. Project terminates Agreement as of July 1, 2010. Expired Months: Estimated Ad wh (per article 6.2.1 of the Agreement) Accumulated Overpayment Energy Rate Calculated Overpayment Interest applied to expired Months Total Accumulated Overpayment including interest 8.18% Jan-10 15,000 12.85 $192,750 $1,313.91 $194,064 Feb-10 20,000 12.85 $257,000 $1,322.87 $452,387 Mar-10 16,000 8.88 $142.080 $3,083.77 $597,551 Apr-10 21,000 8.88 $186,480 $4,073.30 $788,104 May-10 13,000 8.88 $115,440 $5,372.24 $908,916 Jun-10 14,000 12.85 $179,900 $6,195.78 $1,095,012 Plus Next 12 Months: Jul-10 14,000 15.76 $220,640 $1,315,652 Aug-10 15,000 15.76 $236,400 $1,552,052 Sep-10 18,000 12.85 $231,300 $1,783,352 Oct-10 13,000 12.85 $167,050 $1,950,402 Nov-10 15,000 15.76 $236,400 $2,186,802 Dec-10 14,000 15.76 $220,640 $2,407,442 Jan-11 15,000 10.75 $161,250 $2,568,692 Feb- 11 20,000 10.75 $215,000 $2,783,692 Mar- 11 16,000 7.33 $117,280 $2,900,972 Apr-11 21,000 7.33 $153,930 $3,054,902 May-11 13,000 7.33 $95,290 $3,150,192 Jun-11 14,000 10.75 $150,500 $3,300,692 Based on this example - if this example Project were to terminate this 'levelized" agreement in July 2010, The calculated accumulated Overpayment Amount would be $3,300,692 which would be payable to Idaho Power in addition to any other damages due Idaho Power. -57- 7/6/2009 Exhibit 2112 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 58 Idaho Power Company Generator Interconnection Agreement #105 & 301 LP.U.C. No. 29, Tariff No. 101 GENERATOR INTERCONNECTION AGREEMENT Schedule 72 Burley Butte Wind Park (including Expansion) Projects #105 & 301 21.3 MW Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 Idaho Power Company Generator Interconnection Agreement # 105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 1 of 1 TABLE OF CONTENTS RECITALS.............................................................................................................................................. AGREEMENTS...................................................................................................................................... 1 I. Ca0efized Terms ................................................................................................................. I 2.Terms and.Conditions .............................................. .......... .................................................. 3.This Agreement; lanaI anagreementto purchase. Selle,søower.........................................1 4.Attachments- ......................................................... . ................... . ............ .. ............................. 1 5.Effective Date. Term; Termination and:Disconnectiori.......................................................... 5.1 TermofAöj-eemant..............................................................................................................2 5.2 Termination . ......................................................................................................... ........ ........ 2 5.3 Temporary Disconnection ............................................................................................. ........ 2 6.Assignment. Liability, Indemnity. Force maleure. Conseauential Damages and Default. ...... 5 7.Insurance. .......................................................................... .................................................. 7 8.Miscellaneous...... ................................................................................................................ 7 9.Notices. ...................... ... .............................. ......................................................................... S 10.Signatures ............................................................................................................................ 9 Attachment1 ..........................................................................................................................................1 Attachment2..........................................................................................................................................1 Attachment3..........................................................................................................................................I Attachment4..........................................................................................................................................1 AttachmentS ...........................................................................................................................................1 Attachment 6..........................................................................................................................................1 Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 Idaho Power Company Generator Interconnection Agreement # 105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 1 of 9 This Generator Interconnection Agreement ("Agreement) under Idaho Power Company's Schedule 72 is effective as of the day of September, 2010 between Idaho Power Company - Delivery ("Company" or "Transmission Owner') and Burley Butte Wind Park, LLC, an Idaho Limited Liability Company, ("Seller" or "interconnection Customer"). RECITALS A.Seller will own or operate Generation Facilities that qualify for service under Idaho Power's Commission-approved Schedule 72 and any successor schedule. B.The Generation Facilities covered by this Agreement are more particularly described in Attachment t AGREEMENTS 1.Capitalized Terms Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement. 2.Terms and Conditions This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Seller's Generation Facilities will interconnect, with, and operate in parallel with, the Company's transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72, Schedule 72 shall prevail. 3.This Agreement is not an agreement to purchase Seller's power. Purchase of Seller's power and other services that Seller may require will be covered under separate agreements. Nothing in this Agreement is intended to affect any other agreement between the Company and Seller. 4 Attachments Attached-to this A'greemanhand included by -reference are the following: Atfaohmept I - Description: and- Costs- of the Generation Facilities, Interconnection Facilities, and -MeteringEquipment Attachment 2— One-line Diagram Depicting the Generation Facilities, Interconnection Facilities, Metering.Equipment;and -Upgrades Attachment3.•— Milestones For interconnecting the Generation Facilities. Attachment- * - Additional. Operating Requirements for the Company's Transmission System Needed to Support the Seller's Generation Facilities. Attachment-&— ReactivePower: Attachment 6— Description of Upgrades required to integrate the Generation Facilities and Best Estimate of Upgrade Costs. 5. Effective Date. Term, Termination and Disconnection. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 Idaho Power Company Generator Interconnection Agreement # 105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 2 019 5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions of this Agreement, this Agreement shall become effective on the date specified above and remain effective as long as Seller's Generation Facilities are eligible for service under Schedule 72. 5.2 Termination. 5.2.1 Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. 5.2.2 After a Default, either Party may terminate this Agreement pursuant to Section 6.5. 5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation Facilities will be disconnected from the Company's transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination. The provisions of this Section shall survive termination or expiration of this Agreement. 5.3 Temporary Disconnection. Temporary disconnection shall continue only for so long as reasonably necessary under "Good Utility Practice." Good Utility Practice means 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 reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by the power purchase agreement. 5. a i Emerqency Conditions. "Emergency Condition" means a condition or situation: (1) thatin the judgment of the Party making the claim is imminently ilkely to endanger life or property; or (2) that, in the case of the Company, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to the Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in a non- discriminatory manner) to cause a material adverse effect on the reliability and. security of; or damage to, the Generation Facilities or the Seller's Interconnection Facilities. Under Emergency Conditions either the Company or the- Seller may immediately. suspend interconnection service and temporarily disconnect: the Generation. Facilities. The Company shall notify the Seller promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect. the Seller's operation of the. Generation Facilities. The Seller shall notify the Company promptly when it: becomes aware of an Emergency Condition. that may. reasonably be expected: to affect the. Company's equipment.: or service to the company's customers To the extent information is known, the notification shall describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Idaho Power Company Generator Interconnection Agreement #105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 3 of 9 5.3.2 Routine Maintenance, Construction, and Repair. The Company may interrupt interconnection service or curtail the output of the Seller's Generation Facilities and temporarily disconnect the Generation Facilities from the Company's transmission/distribution system when necessary for routine maintenance, construction, and repairs on the Company's transmission/distribution system. The Company will make a reasonable attempt to contact the Seller prior to exercising its fights to interrupt' interconnection or curtail deliveries from the Seller'sFacility, Seller understands- that in the case of emergency circumstances, real time; operations, of the elecfrlcaf systems and/or unplanned events, the Company may-not be-able-to provide notice to: the Seller Prior to interruption, curtailment- or reduction of electrical energy deliveries to the Company. The Company shall- use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 5.3.4. Maintenance Coordination. The Seller and the Company shall, to the extent practical, coordinate their respective transmission/distribution system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facilities and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. 5.3.5 Forced Outages. During any forced outage, the Company may suspend interconnection service to effect immediate. repairs on the Company's transmission/distribution system. The Company shall use reasonable efforts to -provide the Seller with prior notice. If prior notice is not given, the Company shall, upon request, provide the Seller written documentation after the- fact- explaining- the circumstances of the disconnection, 5.3.6 Adverse Operating Effects. The -Company shall notify the Seller as soon - as practicable if, based on Good Utility Practice, operation of the Seller's Generation Facilities- may cause disruption - or deterioration - of- service to other customers- served from the same- electric system; or if. operating- the Generation Facilities could. cause damage to the;- Company's transmission/distribution - system or other affected: systems Supporting documentation-used to reach- the decision-to disconnect- shall be provided: to the -Seller upon requesf If; after notice, the Seller fails to--remedy the adverse operating effect within a reasonable time, the Company--may disconnect, the Generatlon-Facilities. The Company shall' provide, the Seller with- reasonable notion: of'such; disconnection; unless the provisions of Article.531'apply. 5.3.7 MOdification of the Generation Facilities. The Seller must receive- written authorization from the Company before making any change to the Generation Facilities that may have a material impact on the safety or reliability of the Company's transmission/distribution system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Utility Practice, If the Seller makes Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 Idaho Power Company Generator Interconnection Agreement #105 & 301 LP.U.C. No. 29. Tariff No. 101 Pane 4 of 9 such modification without the Company's prior written authorization, the latter shall have the right to temporarily disconnect the Generation Facilities. 5.3.8 Reconnection. The Parties shall cooperate with each other to restore the Generation Facilities, Interconnection Facilities, and the Company's transmission/distribution system to their normal operating stale as soon as reasonably practicable following a temporary disconnection. 5.3.9 Voltacie-Levels. Seller, in accordance with Good Utility Practices, shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Interconnection Point, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 5.4 Land Rights. 5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment; Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller wan-ants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. 5.4.2 Use of Public Rights-of-Way. The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that. would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-fumishedlnterconnectlon Facilities upon, along -and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho - Power of such public right.ofway for construction and/or maintenance of electric distribution and: transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time Except as required by Paragraph £4;4, Who Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4:2. 5:43 Joint.bise.of'Faeilitles. Subject. to - Idaho. Power's- compliance with. Paragraph 15.4:4, IdahoPbwermay-use. andattachitsdistributionand/or transmission facilities to Seller's Interconnection. Facilities,. mayreconstruct-Se(Ier's Interconnection. Facilities to -accommodate. Idaho Power's-usage. or Idbho Power may construct is own distribution: or, transmissioii facilities along over and abovez any public rigl7t.of way acquired from Selier pursuant to Paragraph 542 attaching Seller's Interconnection Facilities tot such: newly as netrueted' facilities. Excepti as- requirer.i'- by, Paragraph. 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4.3. 5.4.4 Conditions of Use. if is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Idaho Power Company Generator Interconnection Agreement # 105 & 301 I.P.LLC. No. 29, Tariff No. 101 -Pace 5 of 9 to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility Practices (2) equitably share the costs of installing owning and operating jointly used facilities and rights-of-way,- if the Parties are unable to agree on the method of apportioning these. costs, the dispute will be submitted to the Commission for resolution and the decision of the Commission will-be binding on- the .Parties, and (3) shalt provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Paragraph 5.4; 6 Assignment, Liability, (ndemnfty Force majeure, Consequential Damages and Default. 6.1 Assignment This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to object by the other Party; provided that: 6.1.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 61.2 The Seller shall have the right to contingentl$' assign this Agreement, without the consent- of the Company, for collateral -security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment. 6.1.3 Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Patty of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Seller. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. 6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost claim injury liability or expense including reasonable attorneys fees relating to or arising from any actor omission in its performance of this Agreement; shall be limited to the amount of direct damage- actually incurred; In no event shall'either Party be liable to the other Party for any indirect, special, consequential, or punitive :damages ; except: as authorized by this Agreement. 6.3 Indemnity, 8.3.1 This provision protects each Party from liability incurred to third parties as a result ofoarrying out-the provisions-of this Agreement Liability under this-provision is exempt from the, general-limitations on liability found in Article 62 6.32 The Parties shall at aIltimes-indemnify, defend; and. hold the other Patty harmless from, any and all damages, losses, claims, including: claims and actions relating to injury to or death- of any person- or damage to property; demand, suits 1 recoveries, costs -and expenses, court costs, attorney fees, and- all , other obligations by or to third-parties, arising, out of or resulting , from the other Party's- action or, failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party. 6.33 If an indemnified person is entitled to indemnification under this article as a result of a claim by a third party, and the indemnifying Party falls, after notice and Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Idaho Power Company Generator Interconnection Agreement # 105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 6019 reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim. Failure to defend is a Material Breach. 6.3.4 if an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery. 6,3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party. 8.4 Force Maieure. As used in this Agreement, Force Majeure" or an event of Force Majeure" means any cause beyond the control of the Seller or of the Company which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Ma/euro, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shell be of no greater scope and of no longer duration than is required by the event ofForce Majeure. (3)No obligations of either Party which arose before- the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 Idaho Power Company Generator Interconnection Agreement #105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 7 of 9 8.5 Default and Material Breaches. 6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (a "Default" or an "Event of Default"), the nondef.aulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred If the defaulting Party shall: fail to cure such Default within the sixty (60) days after service of such notice, or lithe defaulting .Party reasonably demonstrates to the other Party that' the. Default can be cured within a commercially reasonable time but not within such sixty (60)-day period, and then fails to diligently pursue such cure, then, the nondefaultingPartymay, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 6.52 Material Breaches. The notice and cure provisions in Paragraph 6.6 .1 do not apply to Defaults identiflod in this Agreement as Material Breaches. Material Breaches must, be cured as expeditiously as possible following occurrence of the breach. Insurance. During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 7.1 Comprehensive General Liability Insurance for both bodily infamy and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 7.2 The above insurance coverage shalt be placed with an insurance company with an A. M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating That such policy shall not be canceled or the limits of liability reduced without 'sixty (60) days prior written notice to Idaho Power. 7.3. Seller fo.Proyjde.Certifjcate.of Insurance.. As required inParagraph. 7 herein-and annually thereafter, Seller shall furnish the Company a.certiflcate.ofinsurance, together with the endorsements required.therein, evidencing the coverage as set forth above, 7.4: Seller to Notify Idaho Power of Loss of'Covere;- lf'the insurance coverage requiredby Paragraph 7.1. shall lapse for any reason, Seller will-immediately notify Idaho Power in writing. The notice will advise .Idaho, Power .of. the. specific. reason: for the. lapse and. the steps Seller is taking to reinstate, the coverage. Failure to' provide. this. notice: and to.- expeditiously reinstate or replace the coverage will' constitute grounds. for a temporary disconnection under Section 5.3 and will be ,a Material Breach. Miscellaneous; 8.1 Governing Law. The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard to its conflicts of law principles. 8.2 Salvage. No later than sixty (60) days alter the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Idaho Power Company Generator Interconnection Agreement # 105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 8019 of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. Notices. 9.1 GeneraL tin/ass otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement (Notice") shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by first class mail, postage prepaid, to the person specified below: If to the Seller: Interconnection Customer: Idaho Wind Partners 1, LLC Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: steve.eisenbergreunionpowercorn If to the Company: Company: Idaho Power Company - Delivery Attention: Operations Manager 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-5669 Fax: 208-388-5504 9.2 Bi/(jngancj.Payment. Billings and payments shall be sent to the addresses set out below: Ifta the Seller Idaho .Wind Partners 1, LLC Attention: RP Wind 11) LLC, Managing.Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802.382.9148 Email: steveeisenbergreunionpower.com . Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 Idaho Power Company Generator interconnection Agreement # 105 & 301 LP.U.C. No. 29, Tariff No. 101 Page 9of9 If to the Company: Idaho Power Company - Delivery Attention: Corporate Cashier P.O. Box 447 Salt Lake City, Utah 84110-0447 Phone: 208-388-5697 Email: asloan@idahopower.com 9.3 Designated Operating F?epresentative. The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the 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. Seller's Operating Representative: Idaho Wind Partners 1, LLC ole RP Operations Company, LLC Attention: General Manager Address: Alan Drive Jerome, ID 83338 Phone: Fax:__________________ Company's Operating Representative: Idaho Power Company - Delivery Attention: Regional Outage Coordinator- Regional Dispatch 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-2633, 388-5125, or 388-5175 during regular business hours (after hours Southern Region 208-388-5190). 9.5 Changes to the Notice information. Either Party may change this information by giving five (6) Business Days written notice prior to the effective date of the change. 10. Signatures. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives. For. the S&Ier, Buieyutp;4/ind Park LLC Name -- - - - Title:; Date: "I For. Name: Title: Managr, Grid Operations - Idaho Power Company, Delivery Date: 9/?3/7cVO Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29, Tariff No. 101 Page 1 of 2 Attachment I Description and Costs of the Generation Facility, Interconnection Facilities and Metering Equipment In this attachment the Generation Facility and interconnection Facilities, including Special Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company. As provided in Schedule 72, Payment For Interconnection. Facilities, the Company will provide a best estimate itemized cost, of its Interconnection Facilities, including Special Facilities, upgrades and Metering Equipment. General Facility Description The proposed project will consist of Idaho Power's standard overhead generation interconnection package including a recloser, metering package, local service transformer, disconnect switches, and a relay/control box. Upgrades to approximately seven miles of existing feeder are also necessary prior to interconnecting the new project The project is located in Cassia County, Idaho and connects to the 34.5 kV system out of Idaho Power Company's Milner Substation. The total project output is 21.3 MW. Interconnection Point The Interconnection Point for the Burley Butte Wind Project will be on the customer side of Idaho Power's X-222 disconnect switch. The project's location is Cassia County, Idaho. A drawing identifyingthe Point of Interconnection is included as Attachment 2. Seller's Interconnection Facilities The Seller will install generators, disconnect switches, distribution collector system, transformers, appropriate grounding measures, and associated auxiliary equipment, Seller will build facilities to the Interconnection Point for the generator facility including the cable placed-inside-the provided polo riser. All interconnection equipment electrically located on the generator side of the Interconnection Point shall be owned and maintained by the Seller. Other Facilities Provided by Seller Telecommunications The Seller will provide two communication circuits between the interconnection site and -3 location j or locations, specified by Idaho Power Company. One of the circuits will be a dedicated 4-wire teased analog, circuit connected to the SEL 311 C relay and the other will be a POTS dial-up circuit to the revenue meter. The Seller, is responsible for supplying and coordinating the installation of the phone lines and paying the monthly service charges. The communication circuits will need to be installed and operational prior to generating into the Idaho Power system. Idaho Power Company's. Interconnection Facilities Idaho Power, will install a. standard generation interconnection package on the existing distribution feeder (Milner 041) at 240.8 660 W in Burley, ID. Included in the interconnection package will be a pole riser for the Generator' to install cables to make interconnection to the Idaho Pôwersystem. The new interconnection package will include four distribution poles- to mount a local' service transformer, solidi blade disconnects, primary metering package, recloser, relays, fuses: and: riser , necessary for the package.. The interconnection will be controlled:bya.SEL-31IC. protection relay. The relay will be located in a pole mounted enclosure and-wig also contain a test switch(TS4), SLSS, dialup. modem, 202 modem, isolation interface, power supply, DC converter, control switch and surge protector Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29, Tariff No. 101 Page 2of2 All interconnection equipment electrically located on the utility side of the Interconnection Point shall be owned, operated, and maintained by Idaho Power. Estimated Cost & Generation Facilities: Provided by the customer Customer N/A TOTAL N/A Interconnection Facilities: Overhead distribution Interconnection Package IPC $200,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29, Tariff No. 101 Page 1 of I Attachment 3 Milestones: 7/30110 Construction Fundr Received by IPC 11/12110 Interconnection Facility Commissioning Complete for Reduced Generation: Output of up to 7.5MW 414/11 ;ZPCO Construction Complete 4/18/11 IPCO Gommi.rsioningomplete Agreed to by: For the Interconnection Date____________ For the Transmission Provider Date______ Idaho Power Company, Delivery Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Idaho Power Company Generator Interconnection Agreement #105 & #301 l.P.tJ.C. No. 29, T ariff No. 101 Paqe I of 2 Attachment 4 Additional Operating Requirements for the Company's Transmission System and Affected Systems Needed to Support the Seller's Needs The Company shall also provide requirements that must be met by the Seller prior to initiating parallel operation with the Company's Transmission System. Operating Requirements The project is required to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they may be updated from time to time. Seller will be able to modify power plant facilities on the generator side of the interconnection point with no impact upon the operation of the transmission system whenever the generation facilities are electrically isolated from the transmission system via the X-222 disconnect switch and a terminal clearance is issued by Idaho Power Company's Grid Operator. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. 11 is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. Low Voltage Ride Through The project shall remain interconnected upon the occurrence of a three phase or single phase to ground fault down to a voltage of zero at locations on Idaho Power's system as close to the interconnection customer's facilities as Idaho Power Company's Milner Substation prior to the fault being cleared for the minimum times stated below before tripping off-line: • Three phase fault: Normal clearing that takes up to 9 cycles. • Single phase to ground fault: Delayed clearing that takes up to 50 cycles. Ground Fault Equipment The Seller will install Wye-Grounded transformer configurations and will limit the contribution of ground fault .current to 20 amps or less. Commercial Operation Requirements The Seller will be granted a requested Commercial Operation Date only when all requirements have been met under this GIA and Idaho Power Company's Power Sales Agreement. A transmission service request (iSR') for this generation has been submitted to Idaho Power Company's Grid Operations group under TSR 72734375(10.5MW) & 73965262 (10.8MW). Generator Output Limit. ConfrolrRe-dispatch" or "GOLCY The Burley Butte Wind Project will be allowed to deliver the net output of 10.5 MW at. the Interconnection Point subject to reductions directed by Idaho Power. Company Grid Operations during transmission system contingencies until the Generator Output Limit Control ('GOLC) is tested and in operation. The Seller has elected to be subject to GOLC under. Idaho Public Utility. Commission ("IPU.C").Order No. lPCE-06.21, Once the Buriey: Butte •Wind Project , is in operation, it will beable.to generate up to. rated net. output of 10.5 MW subject to the provisions of IPUC Order No. IPC-E-06-21 and Exhibit C below referenced by that Order. The following Exhibit C is included herein from the Company's Joint Motion to Approve Stipulation and to Dismiss Complaint dated June 13, 2007 in IPUC Case No. IPC-E-06-21. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 Idaho Power Company Generator Interconnection Agreement #105 & #301 I.P.U.C. No. 29. Tariff No. 101 Paie2ot2 Exhibit C The following Idaho Power Network transmission facilities have been identified to be affected by the addition of the Requesting Projects in the Twin Falls area. An outage of any of these facilities may result in overloads on the remaining facilities. Such outages may require the initiation of Cassia Redispatch (also Generation Output Limit. Control). Boise Bench - Midpoint 230 Ky transmission line Boise Bench - Rattle Snake 230 KV transmission line Rattle Snake— Midpoint 230 KV transmission line Dram - Midpoint. 230 KV transmission line Hubbard - Danskin 230 KV transmission line King 138/230 KV transformer Danskin - Mountain Home Junction 138 Ky transmission line Upper Salmon - Mountain Home Junction 138 K transmission line Lower Malad - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 KV line reactor Lower Malad - Mountain Home Junction 138 KV line reactor Lucky Peak - Mountain Home Junction 138 KV line reactor Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29, Tariff No. 101 Page 1 of 1 Attachment 5 Reactive Power RegWrements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided by the Seller. The Company will specify the equipment required on the Company's system. to meet the Facility's reactive power requirement& These specifications will include but. not be limited to equipment specifications, equipment location, Company- provided equipment, Seller provided equipment; and all costs associated with the equipment, design and installation of the Company-provided equipment. The equipment-specifications and requirements will become an integral part of this Agreement: The Company-owned equipment will be maintained by the Company, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. The project must be controlled to operate at unity power factor. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. It is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29, Tariff No. 101 Page 1 of 4 Attachment 6 Company's Description of Special Facilities and Upqrades Required to Integrate the Generation Facility and Best Estimate of Costs As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including Network Upgrades, and provides an itemized best estimate of the cost of the Upgrades. Distribution Upgrades Idaho Power will upgrade approximately 7 miles of the existing distribution feeder, 1.5 miles of which is ur,derbuild on the transmission system, to accommodate the Burley Butte Wind Park and Expansion generation. The existing conductor will be upgraded to 336 AAC conductor. The associated support structures will be rebuilt as necessary to accommodate the larger conductor. The feeder will be rebuilt from the Milner substation to the interconnection site. Upgrades to Distribution: . Line reconductorto336AL 'IPC $975,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Transmission Network Upgrades Network Upgrades for this project were detailed in a separate Facility Study Report for the Joint Study Group identified in the March 14, 2008 System Impact Study Report (SISR) for up to 353 MW of New Generation on the 138kV Transmission System in the Twin Falls Area. 1) Regulatory Requirements: A.A number of generation projects seeking Network Resource Interconnection Service, (as that term is defined in FERC Order 2003 and the Company's FERC approved Open Access Transmission Tariff ("OATT")) including the Generation Facility, propose to interconnect to the portion of the Company's transmission system is located in the Twin Falls, Idaho geographic area, and have submitted interconnection requests to the Company during the period January 1, 2005 through October 1, 2007 (collectively, the "Requests or "Requesting Projects"). B.In accordance with FERC Order 2003, the Company's OATT, Commission Order- No. 30414 and in the interest of maintaining comparability and economic efficiency in responding to the Requests, the Company has established "Joint Study Group One (1)" for-the Requesting Projects, C Seller is ready and willing, to start immediate construction of the Generation Facility. One or more Requesting Projects which precede or follow Seller in the Joint- Study Group One are not yet prepared 'for immediate construction or may notl be constructed at alt- 2) Generation OutPut Limit Control: The Generator Facility is a PURPA OF, Seller wilt at its sole expense, install, operate and' maintain the equipment- and communications facilities. necessary-to enable- the Generation Facility to reduce its Maximum Hourly Output-to a not-to-exceed set point; within ten (10) minutes- of- when the Company calls- for the reduction. The Company will specify the. set. point. when it. notifies. Séllbr of the need- to. initiate Generation. Output Limit- Control Generation- Output: Limit: Control cannot' be used to - increase the Generation Facility's output above such-Maximum Hourly -Output'fos then existing-turbine and--wind conditions. Seller-will normally, subject to those conditions, seek to maximize the energy output of the Generation Facility, but Generation Output Limit Control will limit the output of the Generation Facility whenever the Maximum Hourly Output level would otherwise exceed the required set point in any scheduling hour. Seller has elected to be subject to Generation Output Limit Control. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29, Tariff No. 101 Pane 2 of 4 3)Cost Risk for Network Upgrades: Network Upgrade costs will be allocated to each Requesting Project, including the Generation Facility, based on: a) their election of whether to be subject to Generation Output Limit Control, b) their order in the Joint Study Group One, and c) based on the megawatt interconnection capacity of each Requesting Project, their prorata share ofthe cost for the Network Upgrade required to interconnect one or more Requesting Project and the added interconnection capacity of that particular Network Upgrade. The Seller will pay non-reimbursed amounts of no more than 25% of the actual as-constructed cost of the Generator Facilities currently- allocated share of the Network Upgrades required to interconnect, the Generation Facility without Generation Output Limit Control (see paragraph below - Sharing of Network Upgrade Costs. 4)Generation Output Limit Control. Rights: The Company may issue a set- point or limit and initiate Generation Output Limit Control to respond to transmission system emergencies, or respond to circumstances whore the transmission line(s) identified in Commission Order No. 30414 are out of service and for which Generation Output Limit Control was determined necessary and did lower the amount of Network Upgrade cost obligation to the Generation Facility. In most circumstances, Generation Output Limit Control will not be required when all the lines specified in Commission Order No. 30414 are in service. Any use of Generation Output Limit Control to establish a set point below the Generation Facility's capacity shall be pro-rata with other Requesting Projects subject to Generation Output Limit Control. The Company will not purchase or pay for energy which would have been produced by the Generation Facility, but for operation of Generation Output Limit Control. 5)Responsibility for Network Upgrade Costs: In addition to funding all costs of directly Interconnecting the Generation Facility to the Company's system, the Seller will pay its pro-rata share of the Network Upgrade costs actually incurred by the Company to provide firm Network Resource Interconnection Service to the Generation Facility but the Generation Facility shall not be obligated to share the on-going operation and maintenance costs of such Network Upgrades. Seller recognizes that the final cost of its share of the Network Upgrades will not be known until construction is completed. The Seller also recognizes that its share of the final Network Upgrade cost will increase or decrease, subject to the provisions of paragraph 6, depending on whether other Requesting Projects, both earlier and later in the Joint Study Group One are constructed. 5) Sharing of Network Upgrade Costs: A. The Seller and the Company will share the five phases of Network Upgrade costs attributable to the Generation Facility as follows: 1.Phase 1: the Company will assume 100% cost responsibility for Phase I and include this cost in its rate base. 2.Phases 2, 3, 4 and 5: (a)25% of the costs will be provided by the Generation Facility as a non-refundable contribution in aid of construction (ClAC"). (b)25% of the costs will be funded by the Company and included in the Company's rate base (c)50% of the costs will be funded by Generation Facility as an advance in aid of construction (AlAC") subject to refund as provided in paragraph 7 below. As refunds are made, the refunded amounts will be included in rate base using standard regulatory accounting principles. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29. Tariff No. 101 Pane 3 of 4 B. As projects in the Joint Study Group One are interconnected, the Company will reallocate the CIAC. and AIAC portions of the costs of Phases 2 through & For example, when additional projects in the Joint Study Group One are constructed after the Generation Facility is constructed, the Company will collect monies from those subsequent projects and refund monies to Seller. It is the Company's intent that each OF Project in the Joint Study Group One will pay its respective pro-rate share, based on nameplate generation capacity, of each phase of the Network Upgrade they utilize. Tables- B-7, 8, 9 and- 10 in the Settlement' Stipulation adopted in Commission Order No. 30414 illustrate how this re-allocation would occur on a hypothetical basis. 7)Refund Provisions: The Seller will be entitled to a cash repayment in monthly, equal installments, for the total AIAC amount the Seller advances to the Company for Network Upgrades, including any tax gross-up or other tax related payments associated with the AIAC for Network Upgrades. Repayment will be made in accordance with Article 11.4 of the Large Generator Interconnection Agreement ("LGlA) included in the Company's OA1T and occur over a term not to exceed ten (10) years after the date the Generation Facility achieves commercial operation. Monthly repayments will be contingent on the FESA's being in good standing (no uncured defaults) and upon the Generation Facility achieving a mechanical availability in that month in excess of 50%, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month. In computing the mechanical availability, the capacity available in each hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is defined in the FESA) or a reduction in generation due to Generation Output Limit Control required by the Company as described in paragraphs 2 and 4. 8)interest on Refunds; Monthly refund payments on AIAC amounts shall include interest calculated in accordance with the methodology set forth in FERC regulations at 18 C.F.R. 35.19a(aX2)(iii) from the date of any payment for Network Upgrades through the date on which Seller receives final repayment. 9)SecurIty, for Payment: Until it is finally determined which of the Projects in the Joint Study Group One will be constructed and interconnected and the final cost of those interconnections is determined, upon execution of this Interconnection Agreement- Seller will provide and maintain a cash escrow or a letter of credit to the Company in a form and by an issuer satisfactory to the Company as security for payment, initially in the amount ofthe Generator Facility's allocation of Network Upgrade costs as provided herein and adjusted from time to time pursuant to the status of the Requests. The total security amount- at- any time will not exceed the amount thatwould be owed. if the Requests then. remaining in the Joint Study. Group One that are scheduled for construction later than the Generation Facility is not constructed. Other-OF participants in the Joint.Study Group One will be held to a.similar. requirement; 10)Generation. Outt,ut: Limit Controli Protocols: This- interconnection Agreement' addresses. interconnection -oftheGeneration Facility, to the.Companyfransmission system with.Netvvoilc-. Resource Interconnection Service. However i. Seller, acknowledges that, until' sufficient' Network Upgrades are installed z to allow, the- Generation Facility to qualify for Network' Resource Interconnection Service, the Generation Facility will be subject to Generation Output Limit Control as described in paragraphs 2and-4: 11)Network' Uparade; Cost Determlnatlonv Network Upgrade- costs i allocated to the Generation Facility for initial funding, will be determined in a comparable manner and with the same criteria used by the Company when studying the interconnection of other generation, whose output can be changed within ten (10) minutes, at other locations on its transmission system. Upon request by the Generation Facility, the Company will provide a written explanation of the methods and assumptions leading to any such allocation of Network Upgrade cost obligation to the Generation Facility. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power Company Generator Interconnection Agreement #105 & #301 LP.U.C. No. 29. Tariff No. 101 Page 4 of 4 12)Request Uncertainty: The Company will follow good utility practice, the LGIP and SGIP, and all Commission orders in processing the Joint Study Group One within Idaho Power Company's Generator Interconnection Queue. Any Requests that fail to meet those requirements to remain in the Joint Study Group One, or fail to proceed to construct their interconnection or fail to initially fund or secure their allocated share of the Network Upgrade costs will forfeit their position in the Idaho Power Company Generator Interconnection Queue and their rights to the interconnection and transmission system capacity associated with their Request. 13)GenerationFacility Responsibilityfor Network Up-grade Costs: The Company will initially and throughoutthe life of-the Generation Facility, consistent-with good utility practice, determine the least cost solution, given the current status of the Requests in the Joint Study Group One, that will result in the lowest reasonable allocation of initial funding responsibility for Network Upgrades to the Generation Facility. The Company will apply the same criteria to all Projects in the Joint Study Group One. 14)Seller Construction Responsibility Transmission Network Upgrades (described in Section C below): Description C1wnrhin Ftrmi,d (ni JPhase I transmission network upgrades under the Joint System Impact- Study Report to be paid for by Idaho Power Company ]PC N/AJ Total I ne nnaI cosr ww be anocatea to tIie participants remaining in Joint Study Group One upon completion of the project. C. Allocation of Transmission Network Upgrade Costs Seller and Idaho Power will share the actual Network Upgrade costs attributable to the project as follows: 1.25% of the costs will be provided by Seller as a non-refundable contribution in aid of construction (CIAC"). 2.25% of the costs will be funded by Idaho Power and Included in Idaho Power's rate base. 3.50% of the costs will be funded by Seller as an advance in aid of construction ('AIAC") subject to refund. As refunds are made the relundedamounts will be included in rate base using standard:regulatory accounting principles. Exhibit 2113 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 Idaho Power Company Generator Interconnection Agreement# 116 I.P.LJ.C. No. 29, Tariff No. 101 GENERATOR INTERCONNECTION AGREEMENT Schedule 72 Pilgrim Stage Wind Park Project# 116 10.5 MW Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 Idaho Power Company Generator Interconnection Agreement # 116 I.P.U.C. No. 29, Tariff No. 101 Pace I of 'I TABLE OF CONTENTS RECITALS............................................................................................................................................. I AGREEMENTS.....................................................................................................................................1 1.Capitalized Terms ................................................................................................................1 2.To rms and Conditions................................................................. ......................................... 1 3.This Aøreementis not an.aareenient to pwvhase $elIers power .............. . .................... ......I 4.Attachments ......................................... ................................................................................ 1 5.Effective Date, Term, Termination and Disconnection. ......................................................... 1 5.1 Term of Apreement . .............................................................................................................. 2 5.2 Termination . ......................................................................................................................... 2 5.3 Temporary Disconnection ..................................................................................................... 2 6.Assignment, Liability. Indemnity. Force majouro, Consequential Damages and Default. ...... 5 7.Insurance . ............................................................................................................................ 7 8.Miscellaneous .. ................................................................................................................ .....7 9.Notices. ................................................................................................................................ 8 10.Signatures . ........................................................................................................................... 9 Attachment I .........................................................................................................................................I Attachment2 .........................................................................................................................................1 Attachment3 .........................................................................................................................................I Attachment .........................................................................................................................................1 Attachment5 .........................................................................................................................................I Attachment 6 .........................................................................................................................................I Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 Idaho Power Company Generator Interconnection Agreement #116 LP.U.C. No. 29, Tariff No. 101 Paae I of 9 This Generator Interconnection Agreement ("Agreementy under Idaho Power Company's Schedule 72 is effective as of the - day of September, 2010 between Idaho Power Company - Delivery ("Company" or "Transmission Owner") and Pilgrim Stage Wind Park, LLC an Idaho Limited Liability Company, ("Seller" or "Interconnection Customer"). RECITALS A.Seller will own or operate Generation Facilities that qualify for service under Idaho Power's Commission-approved Schedule 72 and any successor schedule. B.The Generation Facilities covered by this Agreement are more particularly described in Attachment 1. AGREEMENTS 1.CapitalIzed Terms Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement. 2.Terms and Conditions This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Sellers Generation Facilities will interconnect with and operate in parallel with, the Company's transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72, Schedule 72 shall prevail. 3.This Agreement is not an aareementto ijurchase Seller's power. Purchase of Seller's power and other services that Seller may require will be covered under separate agreements. Nothing in this Agreement is intended to affect any other agreement between the Company and Seller. 4 Attachments: Attached to this Agreement and included by reference are the following; Attachment 1. - Description and Costs of the Generation Facilities, Interconnection Facilities, and Metering Equipment. Attachment 2.— One-line Diagram DepictIng the. Generation Facilities, Interconnection Facilities, Metering. Equipment-and Upgrades. Attachment 3— MitesfonesFor Interconnecting the GenerationFàcilities; Attachment 4— Additional Operating Requirements for the Company's. Transmission System Needed to S upport the Seller's Generation Facilities. Attachment?5!— Reactive Power; Attachment 6— Description of Upgrades required to integrate the Generation Facilities and Best Estimate of Upgrade Costs. 5. Effective Date, Term, Termination and Disconnection. Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 Idaho Power Company Generator interconnection Agreement # 116 LP.U.C. No, 29, Tariff No. 101 Page 2 of 9 5.1 Term of AgreemenL Unless tenninated earlier in accordance with the provisions of this Agreement, this Agreement shall become effective on the date specified above and remain effective as long as Seller's Generation Facilities are eligible for service under Schedule 72. 5.2 Termination, 5.2.1 Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. 5.2.2 After a Default, either Party may terminate this Agreement pursuant to Section 6.5. 5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation Facilities will be disconnected from the Company's transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Patty of its liabilities and obligations, owed or continuing at the time of the termination The provisions of this Section shall survive termination or expiration of this Agreement. 5.3 Temporary Disconnection. Temporary disconnection shall continue only for so long as reasonably necessary under "Good Utility Practice." Good Utility Practice means 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 reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable ccci consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by the power purchase agreement. 5.3.1 Emergency Conditions. "Emergency Condition" means a condition or situation; (1) that in the judgment , of the Party making the claim is imminently likely to endanger life or property; or (2) that, in the case of the Company, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage' to the Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment of the Company's customers; or , (3)- that, in the case of the Seller, is imminently likely (as determined in a non- discriminatory manner) to cause a material adverse effect on the reliability and security of; or damage to, the Generation Facilities or the Seller's Interconnection Facilities; Under Emergency Conditions, either the Company or the Seller may immediately' suspend interconnection 'service and temporarily disconnects the Generation' Facilities: The ' Company shallnofify the Seller promptly when it becomes aware ofan Emergency Condition that' may reasonably be expected' to' affect the Seller's operation. of the Generation Facilities. The Seller shall notify the Company promptly when it becomes aware: of an Emergency condition: that may reasonably' be" expected to' affect the' Companys: equipment: or service to. the. Companys customers To the extent information.is: known, the notlfication'shall'describe.:tlie Emergency Condition, the extent: of the damage' or deficiency, the expected effect on the operation of both Parties' faifities and operations, its anticipated duration, and the ery cnrri'ictiv action. Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Idaho Power Company Generator Interconnection Agreement # 116 LP.U.C. No. 29, Tariff No. 101 Pane 3 of 9 5.3.2 Routine Maintenance. Construction, and Repair. The Company may interrupt interconnection service or curtail the output of the Seller's Generation Facilities and temporarily disconnect the Generation Facilities from the Company's transmission/distribution system when necessary for routine maintenance, construction, and repairs on the Company's transmission/distribution system. The Company will make a reasonable attempt to contact the Seller prior, to exercising. its rights to interrupt interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances real time operations of the electrical system, and/or unplanned events, the Company may not be able to provide notice to the Seller prior to interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 5.3.4. Maintenance Coordination. The Seller and the Company shall, to the extent practical, coordinate their respective transmissionldistribiition system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facilities and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. 5.3.5 Forced Outages. During any forced outage; the Company may suspend interconnection service to effect immediate repairs on the Company's transmission/distribution system. The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not given, the Company shall, upon request, provide the Seller written documentation after the fact. explaining the circumstances of the disconnection. 5.3.6 Adverse OperatingEffocts. The Company shall notify the Seller as soon as practicable if, based on Good Utility Practice, operation of the Seller's Generation Facilities may cause disruption or deterioration of service to other customers served from the same electric system, or it operating the Generation Facilities could cause damage to the Company's transmission/distribution system• or other affected: systems. Supporting documentation used to reach the decision to disconnect shall be provided to the Seller upon request; If, after notice, the Seller fails to remedy the adverse operating effect within a reasonable time, the Company may disconnect the Generation Facilities. The Company shall provide the Seller with reasonable notice at such disconnection, unless the provisions:ofArticfe5:3 1 apply. 5.3.7 Modifiaetipnpf.(he. Generation Facilitios The Seller must- receive written authorization from the Company before making any change to the Generation Facilities that may have a material impact on the safety or reliability of the Company's transmission/distribution system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Utility Practice. If the Seller makes Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 Idaho Power Company Generator Interconnection Agreement # 116 I.P.U.C. No. 29, Tariff No. 101 Pane 4 of 9 such modification without the Company's prior written authorization, the latter shall have the right to temporarily disconnect the Generation Facilities. 53.8 Reconnection. The Parties shall cooperate with each other to restore the Generation Facilities, InterconnectIon Facilities, and the Company's transmission/distribution system to their normal operating state as soon as reasonably practicable following a temporary disconnection. 5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Interconnection Point, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 5.4 Land Rights. 5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the term -of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. 5.4.2 Use of Public Rqhfs-of-Way. The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished -Interconnection -Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and- transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required- by Paragraph 5.44; Idaho Power- shall not be required- to compensate Seller for exercising its rights under this Paragraph 5.42. 5.4.3 Joint-Use of -Facilities. Subject to Idaho Power's compliance with Paragraph 15.44, Idaho Power may use .and attach its- distribution -and/or transmission facilities -to Seller's Interconnection- Facilities, may reconstruct- Seller's Interconnection - Facilities to accommodate Idaho-Power's usage • or Idaho. Power, may constructits own. distribution or transmission, facilities along, over and' above , any public fight-of-way acquired' from Seller pursuant to Paragraph 5:42, attaching- Seller's Interconnection' Facilities- to such newly- constructed facilities. Except, as- requfreci'by. Paragraph, 5.44: Idaho Power shall not be required. ta. compensate Seller for exercising its. rights. under this Paragraph 5.43; 5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Idaho Power Company Generator Interconnection Agreement ft 116 LP.U.C. No. 29, Tariff No. 101 Page 5of9 to Idaho Power's exorcising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility Practices, (2) equitably share. the costs of installing, owning and operating jointly used facilities and: rights,-ofway; if the Parties are unable to agree on the method of apportioning these costs, the dispute. wiff be submitted to the. Commission. for resolution and the decision of the CommissionwiIl be bindJngon the. Patties, and (3) shall provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existedprior to Idaho Power exercising its rights under this Paragraph 5:4; 6. Assignment; Liability. Indemnity, Force majeure. Consequential Damages and Default. 6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to object by the other Party; provided that: 6. 1.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.2 The Seller shall have the right to contingently assign this Agreement, without the consent of the Company, for collateral security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment. 6.1.3 Any attempted assignment that violates this article is void and ineffective. Assignment shalt not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Seller. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. 6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost, claim; injury, liability, or expense, including reasonable attomes fees, relating to or arising from any actor omission in its performance. of this Agreement; shall be limited to the amount. of direct. damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special, consequential, or punitive damages, except as authorized by this Agreement 6.3 lndemnitv 6.3.1 This provisiOn protects each Party from liability incurred to third parties as a result, of carrying out. the provisions -of this Agreement; Liability under this provision is exempt from the generallimitations-on liability found -in Article 6.12.-- 8:3:2: The Parties shall. at all. times indemnify, defendi andMold- the -other- Party harmless from, any and. all damages, losses ; claims, including claims and actions relating: to injury to or death of any, person or damage to property, demand, suits, recoveries costs:and'expenses, court costs, attorney-fees; and;alltofher obligations -by. or to..thir8 parties; arising' out, .ofior resultlng from. the; other. Partj(.s-: action fáilür& to. meet, its: obligations. -under this:Agreementon behaJloi the 'indemnifying;Pa.rty,-. except in cases of gross negligence or intentional .wrongdoing bythe indemnified Party. 6.3.3 If an indemnified 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 Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Idaho Power Company Generator interconnection Agreement # 116 I.P.U.C. No. 29, Tariff No. 101 Page of 9 reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim. Failure to defend is a Material Breach. 6.3.4 if an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery. 6.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party. 6.4 Force Maieure. As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of the Company which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome, if either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that: (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations-of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result.of such occurrence. Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 Idaho Power Company Generator Interconnection Agreement #116 LP.U.C. No. 29, Tariff No. ioi Page7of9 6.5 Default and Material Breaches. 6.5.1 Defaults if either Party fails to perform any of the terms or conditions of this Agreement (a "Defaulr or an "Event of Default"), the nondofaulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the. defaulting Party shall fail to cure such Default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the DefaultS can be cured -within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure i then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 8.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do not apply to Defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 7. Insurance. During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 7.1 Comprehensive General Liability Insurance for both• bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 7.2 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be: canceled or the limits of liability reduced witho ut sixty (60) days'prior written notice to Idaho Power. 7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 7.4 Seller to Notify Idaho Power of Loss of COveraoe - It the insurance coverage required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power in writing: The notice will advise Idaho Power of the specific reason for , the lapse and- the steps Seller is- taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute grounds for a temporary disconnection under Section 5.3 and will be a Material Breach, 8: Miscellaneous. 6.1 Governi,tgLaw The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard. to its conflicts of law principles. 8.2 Salvage. No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value Exhibit 2114 GNR-E--1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Idaho Power Company Generator Interconnection Agreement # 116 LP.UC. No. 29, Tariff No. 101 Page 8 of 9 of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the interconnection Facilities will be removed. If Seller elects not to obtain ownership - of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net. salvage value as estimated by Idaho Power and Idaho Power shell. pay such -amount to Seller within thirty (30) days after receipt' of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. 9. Notices. 9.1 General. Unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement ("Notice") shall be deemed properly given if delivered in person, delivered by recognized national courier sell/ice, or sent by first class mail, postage prepaid, to the person specified below: If to the Seller: Interconnection Customer: Idaho Wind Partners 1, LLC Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: steve.eisenbergøjreunionpowor.com If to the Company: Company: Idaho Power Company - Delivery Attention: Operations Manager 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-5869 Fax: 208-388-5504 9.2 Billing and Payment. Billings and payments shalt be sent to the addresses set out below: If to the Seller: Idaho Wind Partners 1, LLC Attention: RP Wind ID LLC, Managing Member 82 Elm Streets P.O. Box 2049 Manchester center, VT 05255- Phone: 802362-9147 Fax: 802-362-9148. Email: steve;eisenberg©reunionpower.com- Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 Idaho Power Company Generator Interconnection Agreement #116 I.P.U.C. No. 29, Tariff No. 101 Pacje 9 of 9 If to the Company: Idaho Power Company - Delivery Attention: Corporate Cashier P.O. Box 447 Salt Lake City, Utah 84110-0447 Phone: 208-368-5697 Email: asloan©idahopower.com 9.3 Designated Operating Representative. The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the 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. Seller's Operating Representative: Idaho Wind Partners 1, LLC c/a RP Operations Company, LLC Attention: Genera! Manager Address: Alan Drive Jerome, ID 83338 Phone: Fax:_________________ Company's Operating Representative: Idaho Power Company - Delivery Attention: Regional Outage Coordinator - Regional Dispatch 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-2633. 388-5125, or 388-5175 during regular business hours (after hours Southern Region 208-388-5190). 9.5 Changes to the Notice Information. Either Party may change this information by giving five (5) Business Days written notice prior to the effective date of the change. 10. Signatures. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives. FortheS'eller. Pikwim Ski6 Wind Park. LLC Name: Date: ' Name fX1/.4/1) Title: ManagÔr Grid Operations:— Idaho PöwerCompany, Delivery Date: ___________ Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Idaho Power Company Generator Interconnection Agreement # 116 I.P,U.C. No. 29, Tariff No. 101 Paae 1 of 2 Attachment 1 Description and Costs of the Generation Facility. Interconnection Facilities and Metering Equipment In This attachment the Generation Facility and Interconnection Facilities, including Special Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company. As provided in Schedule 72, Payment For Interconnection: Facilities, the Company will provide a best estimate itemized cost of its Interconnection Facilities, including Special Facilities, upgrades and Metering Equipment. General Facility Description The proposed project will consist of Idaho Power's standard overhead generation interconnection package including an overhead recloser, metering package, local service power transformer, disconnect switches, and relays. Upgrades to approximately one half mile of existing feeder are also necessary prior to interconnecting the new project. The project is located in Twin Falls County, Idaho and connects to the 34.5 kV system on Idaho Power Company's Fossil Gulch (FSGL-041) distribution line. The total project output is 10.5 MW. Interconnection Point The Interconnection Point for the Pilgrim Stage Wind Park Project will be the spade located on the Generator side of the disconnect switch (defined as X37 on drawing 210-61952) on the Generator side of the interconnection package. The project's location is Twin Falls County, Idaho. A drawing identifying the Point of Interconnection is included as Attachment 2. Seller's Interconnection Facilities The Setter will install generators, distribution collector system, appropriate grounding measures, and associated auxiliary equipment. Setter will build facilities to the Interconnection Point for the generator facility including the cable placed inside the provided pole riser. All interconnection equipment electrically located on the generator side of the Interconnection Point shall be owned and maintained by the Generator. Other Facilities Provided by Seller Telecommunications The Seller will provide two communication circuits between the generation interconnection site and a location, or locations, specified by Idaho Power. One of the circuits will be a dedicated 4-wire leased analog circuit connected to the SEL 311 C relay and the other will be a POTS dial-up circuit to the revenue meter. The Seller is responsible for supplying and coordinating the installation of the phone lines and paying the monthly service charges. The communication circuits will need to be installed and operational prior to generating into the Idaho Power system. Ground Fault-Equipment The Setter will install transformer configurations that, will limit the contribution of ground fault current to 20 amps Qr, less. Additionally, the high side distribution system must. be a grounded-wye connection into Idaho Power's system. Monitoring.-Information. If. the Seller requires the ability to monitor information related to the Idaho Power recloser in the generation interconnection package they are required to supply their own communications circuit to the Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 Idaho Power Company Generator Interconnection Agreement #116 I.P.U.C. No. 29, Tariff No. 101 Page 2012 Idaho Power Company's Interconnection Facilities Idaho Power will install a standard generation interconnection package on the existing distribution feeder (FSGL-041). Included in the interconnection package-will be a pole riser for the Generator to install cables to make interconnection to the Idaho Power system. The new interconnection package will include four, distribution poles to mount a local service transformer, solid blade disconnects. primary metering package, recloser, relays, fuses and riser necessary for the package. The interconnection will be controlled by a SEL-3110 line protection relay. The relay will be located in a pole mounted enclosure and will also contain a test switch (TS4), SLSS, dialup modem, 202 modem, isolation interface, power supply, DC converter, control switch and surge protector. All interconnection equipment electrically located on the utility side of the Interconnection Point shall be owned, operated, and maintained by Idaho Power. Estimated Cost & Ownership: The following good faith estimates are Generation Facilities: Provided by the customer ..-Customer. .N/A Interconnection Facilities: Overhead Generation Interconnection Package IPC .$150,000 TOTALf $150,000: Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Idaho Power Company Generator Interconnection Agreement #116 LP.U.C. No. 29, Tariff No. 101 Page 1 of 1 Attachment 3 Milestones: (not including the Transmission Network Upgrades) 6/20110 construction Funds Received by IPC 11119/10 lPCO Construction Complete 12/3/10 IPCO Commissioning Complete Agreed to by: For the Interconnection For the Transmission Provider Idaho Power Company, Delivery Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Idaho Power Company Generator Interconnection Agreement # 116 LP.U.C. No. 29, Tariff No. 101 1 Page 1 of 2 Attachment 4 Additional Operating Requirements for the. Company's Transmission System and Affected Systems Needed to Supnort the Sellers Needs The Company shall also provide requirements that must be met by the Seller prior to initiating parallel operation with the Company's Transmission System. Operating Requirements The project Is required to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard 519-1982 IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they may be updated from time to time. Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with no impact upon the operation of the transmission system whenever the generation facilities are electrically isolated from the transmission system via the X37 switch and a terminal clearance is issued by Idaho Power Company's Grid Operator. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. It is preferable to bring each generating unit: online separately to minimize voltage flicker on the distribution system. Low Voltage Ride Through The project shall remain interconnected upon the occurrence of a three phase or single phase to ground fault down to a voltage of zero at locations on Idaho Power's system as close to the interconnection customer's facilities as Idaho Power Company's Fossil Gulch Substation prior to the fault being cleared for the minimum times stated below before tripping off-line: • Three phase fault: Normal clearing that takes up to 9 cycles. • Single phase to ground fault: Delayed clearing that takes up to 50 cycles. Ground Fault Equipment The Seller will install transformer configurations that will limit the contribution of ground fault current to 20 amps or less. Commercial Operation Requirements The Seller will, be granted a requested' Commercial Operation Date only when all requirements have been met under this GIA and Idaho Power Company's Power Sates Agreement. A transmission service request (TSR") for this generation has been submitted to Idaho Power Company's Grid Operations group under TSR 72734375 (10.5 MW). GeneratorOulput.LimitControl.(Re-dIspatch" or NGOLC) The Pilgrim Stage Wind Project will be allowed to deliver the net output of 10.5 MW at the Interconnection Point subject to reductions directed by Idaho Power Company Grid Operations during transmission system contingencies until the Generator Output Limit Control "GOLC") is tested and. in operation The Seller has elected to be subject to. GOLC under Idaho. Public Utility. Commission (!'lpUC"). Order .No lPC-E-0621; Once the Pilgrim Stage Wind:Project.is inoperation, it-will be able to generate: up-to ratednetoutput of. 10.5. MW. subjectto the provisions of IPUC.Order No. IPC-E-06-21 and Exhibit C below referenced by that Order. The following: Exhibit C is included: herein from the Company's JoInt MOtion toApproveStipulation and:toDismiss Complaint dated June 13, 2007 in IPUC Case No. IPC-E-06-21. Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29, Tariff No. 101 Page 1 of 1 Attachment 5 Reactive Power Requirements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided by the Seller. The Company will specify the equipment required on the Company's system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Company- provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Company-provided equipment. The equipment specifications and requirements will become an integral part of this Agreement. The Company-owned equipment will be maintained by the Company, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. The project must be controlled to operate at unity power factor. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. It is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power Company Generator Interconnection Agreement #116 I.P.U.C. No. 29. Tariff No, 101 Page2of2 Exhibit C The following Idaho Power Network transmission facilities have been identified to be affected by the addition of the Requesting Projects in the Twin Falls area. An outage of any of these facilities may result in overloads on the remaining facilities. Such outages may require the initiation of Cassia Redispatch (also Generation Output Limit Control). Boise Bench - Midpoint 230 KV transmission line Boise Bench - Rattle Snake 2-30 KV transmission line Rattle Snake - Midpoint 230 Ky transmission line. Dram - Midpoint 230 KV transmission line Hubbard - Danskin 230 KV transmission line King 1381230 KV transformer Danskin - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 KV transmission line Lower Malad - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 KV line reactor Lower Malad - Mountain Home Junction 138 KV line reactor Lucky Peak - Mountain Home Junction 138 Ky line reactor Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Idaho Power Company Generator Interconnection Agreement # 116 LP.UC. No. 29, Tariff No. 101 - Page I of 4 Attachment 6 Company's Descriø(ion of Special Eacifities and ticarades Required to Integrate the Generation Facility and Best Estimate of Costs As provided. in Schedule 72 this Attachment; describes Upgrades, Special Facilities, including Network Upgrades, and provides an itemized best estimate of the cost of the Upgrades Distribution Upgrades Upgrades to approximately one half mile of existing feeder are necessary prior to interconnecting the new project. Line Recenductor and New Recloser $200,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Transmission Network Upgrades Network Upgrades for this project were detailed in a separate Facility Study Report for the Joint Study Group identified in the March 14, 2008 System Impact Study Report (SISR) for up to 353 MW of New Generation on the 138kV Transmission System in the Twin Falls Area. 1) Regulatory Requirements: A.A number of generation projects seeking Network Resource Interconnection Service, (as that term is defined in FERC Order 2003 and the Company's FERC approved Open Access Transmission Tariff ("OA -W)) including the Generation Facility, propose to interconnect to the portion of the Company's transmission system is located in the Twin Falls, Idaho geographic area, and have submitted interconnection requests to the Company during, the period January 1, 2006 through October 1, 2007 (collectively, the "Requests" or Requesting Projects"). B.In accordance with FERC Order 2003, the Company's OATT, Commission Order No. 30414 and in the interest of maintaining comparability • and economic efficiency in responding to the Requests, the Company has established Joint Study Group One (1)" for the Requesting Projects. C Seller is ready and willing to start immediate construction of the Generation Facility. One or more Requesting Projects which precede or follow Seller in the Joint Study Group One are not yet prepared for immediate construction or-may not be constructed atalt 2) Generatlpn.Output Limit; Control: The Generator Facility is- a PURPA OF. Seller wilt, at its sole expense, install, operate and maintain the equipment and communications facilities necessary to enable the Generation Facility to reduce its Maximum Hourly Output to a not-to-exceed set point,. within - ten . (10) minutes of when the Company- calls- for the reduction. The Company will specifyi the. set point' when it' notifies Seller; of the need to initiate Generation Output Limit- Control Generation: Output , Limit Control cannot be used to. increase: the Generation. Facility's: output above. such Maximum Hourly Outut;for then existing turbine and wind 'conditions: Seller will normally, subject to those- conditions, seek- to maximize-the energy.- output; of' the Generation FaciIity but' Generation Output' Limit; Control will limitf the outputs of the Generation: Facility; whenever the Maximum Hourly Output: level :wouId:othenwise.exceedthe..required'setcpoir1tiflafly; scheduling :hOUr Seiteihaselected' to be subject; to Generation •Output Limit Control. 3) Cost Risk for Network Uparades: Network Upgrade costs will be allocated to each Requesting Project, including the Generation Facility, based on: a) their election of whether to be subject to Generation Output Limit Control, b) their order in the Joint Study Group One, and c) based on the megawatt interconnection capacity of each Requesting Project, their prorata share of the cost for the Network Upgrade required to interconnect one or more Requesting Project and the added Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 Idaho Power Company Generator Interconnection Agreement # 116 I.P.U.C. No. 29, Tariff No. 101 Page 2 of 4 interconnection capacity of that particular Network Upgrade, The Seller will pay non-reimbursed amounts of no more than 25% of the actual as-constructed cost of the Generator Facilities currently- allocated share of the Network Upgrades required to interconnect the Gneration Facility without Generation Output Limit Control (see paragraph S below - Sharing of Network Upgrade Costs. 4)Generation Output Limit . ControlRights. The Company may issue a set pointor limit and initiate Generation Output: Limit Control to respond to transmission system emergencies, or respond to circumstances where the transmission line(s) identified in Commission Order No. 30414 are out of service and for which Generation Output Limit Control was determined necessary and did tower the amount of Network Upgrade cost obligation to the Generation Facility. In most circumstances, Generation Output Limit Control will not be required when all the lines specified in Commission Order No. 30414 are in service. Any use of Generation Output Limit Control to establish a set point below the Generation Facility's capacity shall be pro-rata with other Requesting Projects subject to Generation Output Limit Control. The Company will not purchase or pay for energy which would have been produced by the Generation Facility, but for operation of Generation Output Limit Control. 5)Responsibility for Network Upgrade Costs: In addition to funding all costs of directly interconnecting the Generation Facility to the Company's system, the Seller will pay its pro-rata share of the Network Upgrade costs actually incurred by the Company to provide firm Network Resource Interconnection Service to the Generation Facility but the Generation Facility shall not be obligated to share the on-going operation and maintenance costs of such Network Upgrades. Seller recognizes that the final cost of its share of the Network Upgrades will not be known until construction is completed. The Seller also recognizes that its share of the final Network Upgrade cost will increase or decrease, subject to the provisions of paragraph 6, :depending on whether other Requesting Projects, both earlier and later in the Joint Study Group One are constructed. 6)Sharing of Network Upgrade Costs: A. The Seller and the Company will share the five phases of Network Upgrade costs attributable to the Generation Facility as follows: 1, Phase 1: the Company will assume 100% cost responsibility for Phase 1 and include this cost in its-rate base. Phases 2, 3, 4 and 5: (a)25% of the costs will be provided by the Generation Facility as a non-refundable contribution in aid ofoonstruction ("CIAC). (b)25% of the costs will be funded by the Company and included in the Company's rate base. (c)50%. of the costs will be funded by Generation Facility, as an advance 'in aid of construction ("AIAC") subject to refund as provided in paragraph 7 betow, As refunds are made, the refunded amounts will be included in rate base using standard regulatory accounting principles. B; As projects, in. the. Joint Study: Group One are interconnected the Company will reallocate the CIAC and AIAC portions of the costs of Phases 2 through 5. For example, when additional projects in the Joint Study Group One are constructed after the Generation Facility is constructed, the Company will collect monies from these subsequent projects and refund monies to Seller. It is the Company's intent that each QF Project in the Joint Study Group One will pay its respective pro-rata share, based on nameplate generation capacity, of each phase of the Network Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 Idaho Power Company Generator Interconnection Agreement # 116 LP.U.C. No. 29, Tariff No. 101 Page 3 of 4 Upgrade they utilize. Tables 8-7, 8, 9 and 10 in the Settlement Stipulation adopted in Commission Order No. 30414 illustrate how this re-allocation would occur on a hypothetical basis. 7)Refund Provisions: The Seller will be entitled to a cash repayment, in monthly, equal installments, for the total AIAC amount the Seller advances to the Company for- Network. Upgrades, including any tax gross-up or other tax related payments associated with the AIAC for Network Upgrades. Repayment will be made in accordance with Articles 11.4 of the Large Generator - Interconnection Agreement (aLGIA) included in the Company's OATT and occur over a term not to exceed ten (10) years after the date the Generation Facility achieves commercial operation. Monthly repayments will be contingent on the FESA's being in good standing (no uncured defaults) and upon the Generation Facility achieving a mechanical availability in that month in excess of 50%, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month. In computing the mechanical availability, the capacity available in each hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is defined in the FESA) or a reduction in generation due to Generation Output Limit Control required by the Company as described in paragraphs 2 and 4. 8)Interest on Refunds: Monthly refund payments on MAC amounts shall include interest calculated in accordance with the methodology set forth in FERC regulations at 18 C.F.R. 35.1 9a(a)(2)(iii) from the date of any payment for Network Upgrades through the date on which Seller receives final repayment. 9)Security for Payment: Until it is finally determined which of the Projects in the Joint Study Group One will be constructed and interconnected and the final cost of those interconnections is determined, upon execution of this Interconnection Agreement Seller will provide and maintain a cash escrow or a letter of credit to the Company in a form and by an issuer satisfactory to the Company as security for payment, initially in the amount of the Generator Facility's allocation of Network Upgrade costs as provided herein and adjusted from time to time pursuant to the status of the Requests. The total security amount at any time will not exceed the amount that would be owed if the Requests then remaining in the Joint Study Group One that are scheduled for construction later than the Generation Facility is not constructed. Other QF participants in the Joint Study Group One will be held to a similar requirement. 10)Generation Output Limit Control Protocols: This Interconnection Agreement. addresses interconnection of the Generation Facility to the Company transmission system with Network Resource Interconnection Service. However, Seller acknowledges that, until sufficient Network Upgrades are installed to allow the Generation Facility to qualify for Network Resource Interconnection Service, the Generation Facility will be subject. to Generation Outputs Limit Control as described in paragraphs 2 and 4. 11)Network Upgrade Cost Determination: Network Upgrade costs, allocated to the Generation Facility for initial' funding, will be -determined In - a- comparable manner and- with the same criteria used by the Company when studying-the interconnection of other generation, whose output-can be changed within ten (10) minutes, at other locations on its transmission system. Upon request-by the Generation Facility, the Company will provide a written explanation of the methods and assumptions leading to any such allocation of Network Upgrade cost obligation to the-Generation Facility. 12). Request Uncedainty The- Company will: follow, good utility practice, the LGIP and- SGIP, and all Commission orders in processing the Joint Study Group One within Idaho Power Company's Generator inieiunr ctüi Queue. Any Requests that fell to meat those requirements to remain in the Joint Study Group One, or fail to proceed to construct their interconnection or fall to initially fund or secure their allocated share of the Network Upgrade costs, will forfeit their position in the Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power Company Generator Interconnection Agreement # 116 LP,UC. No. 29. Tariff LNo. 101 Page 4of4 Idaho Power Company Generator Interconnection Queue and their rights to the interconnection and transmission system capacity associated with their Request. 13)Generation Facility ResponslbIlltv for Network Upnrade ço: The Company will initially and4hroughoutthe1ifeoftheGeneratiow Facility..j consistent, with good:utihty practice, determine the least cost. solution;, given the eurfentstatus.ofthe Requests in the Joint , Study Group One, that will result in the lowest: reasonable allocation of initial , funding responsibility for Network Upgrades to the Generation Facility. The Company will apply the same criteria to all Projects in the Joint Study Group One. 14)Seller Construction Responsibility Transmission Network Upgrades (described in Section C below): Updated cost allocation based on the System Impact Stuct Report for up to 353 MW of New Genertion on the 138kV Transmission System in the Twin Falls Area dated March 14, 2008. Phase I transmission network upgrades to be paid for by Idaho Power (nrnntn/ IPC I N/ The final cost will beaflocated 10 the participants remaining in Joint Study Group One upon of the project. C. Allocation of Transmission Network Upgrade Costs Seller and Idaho Power will share the actual Network Upgrade costs attributable to the project as follows: 1.25% of the costs will be provided by Seller as a non-refundable contribution in aid of construction (CIAC"). 2.25% of the costs will be funded by Idaho Power: and included in Idaho Power's rate base; 3.50% of the costs will be funded by Seller as an advance in aid of construction (AlAC') subject to refund: As refunds are made the refunded amounts will be included in rate base using standard regulatory accounting principles. Exhibit 2114 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 GENERATOR INTERCONNECTION AGREEMENT Schedule 72 THOUSAND SPRINGS (Camp Reed Wind Park, LLC (22.5 MW); Oregon Trail Wind Park, LLC (13.5 MW); Payne's Ferry Wind Park, LLC (21 MW); Thousand Springs Wind Park, LLC (12 MW); Tuana Gulch Wind Park, LLC (10.5 MW); and Yahoo Creek Wind Park, LLC (21 MW)) for 101.5 MW Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 Page 1 of I TABLE OF CONTENTS RECITALS.............................................................................................................................................. AGREEMENTS...................................................................................................................................... I. Capitalized Terms................................................................................................................ 2.Terms and. Conditions ........................................................................................................... 1 3.This Agreement is not , an agreement to pu,hase. Se!ler,s power .........................................1 4.Attachments ......................................................................................................................... 1 5.Effective Date, Term, Termination andDjsconnectk,n.. ........................................................ 2 5.1 Term of Agreement.. ............................................................................................................ 2 5.2 Termination . ............................................................................................................... .......... 2 5.3 Temporary Disconnection ..................................................................................................... 2 6.Assignment, Liability, indemnity, Force maieure. Consequential Damages and Default. ...... 5 7.Insurance. .................................................................. ........................................ .................. 7 6. Miscellaneous . .......................... ............. ................... ........................................................... 7 9.Notices. ................................................................................................................................ 8 10.Signatures . ...... ................................... .................. ................................................................ 9 AttachmentI .......................................................................................................................................... Attachment2...........................................................................................................................................1 Attachment3..........................................................................................................................................1 Attachment4 ...........................................................................................................................................1 Attachment5..........................................................................................................................................1 Attachment6..........................................................................................................................................1 Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 Idaho Power Company Generator Interconnection Agreement # 117 I.P.U.C. No. 29, Tariff No. 101 Page 1f 10 This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's Schedule 72 is effective as of the day of September, 2010 between Idaho Power Company - Delivery ("Company" or "Transmission Owner") and Idaho Wind Partners 1, LLC, an Idaho Limited Liability Company, acting in its capacity as agent for communications, billing, and payment, without. any right to transmission capacity hereunder ("Agent), and executing this agreement on behalf of Camp Reed Wind Park, LW (22.5 MW); Oregon Trail Wind Park, LLC (13.5 MW); Payne's Ferry Wind Park, LLC (21 MW),; Thousand. Springs Wind Park, LLC (12 MW); Tuana Gulch Wind Park, LLC (10.5 MW); and Yahoo Creek Wind Park, LLC (21 MW); each an Idaho Limited Liability Company, (collectively, "Seller" or "Interconnection Customer. RECITALS A.Salter will own or operate Generation Facilities that qualify for service under Idaho Power's Commission-approved Schedule 72 and any successor schedule. B.The Generation Facilities covered by this Agreement are more particularly described in Attachment 1. AGREEMENTS 1.CapitalIzed Terms Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement. 2.Terms an d Conditions This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Seller's Generation Facilities will interconnect with, and operate in parallel with, the Company's transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72, Schedule 72 shall prevail. 3.This Agreement is not an agreement to purchase Seller's power. Purchase of Seller's power and other services that Seller may require will be covered under separate agreements. Nothing in this Agreements is intended to affectl any other agreement between - the Company and Seller. 4.Attpchmepts Attached to this Agreement and included by reference are the following: Attachment 1. - Description and Costs of the Generation Facilities, interconnection Facilities, and Metering Equipment Attachment 2 -. One-line Diagram Depicting- Generation Facilities, Interconnection Facilities, Metering EquipmentandUpgrades Attaehmenf3—MIlestones.For Inferconnoctingcthe Generation Facilities. Attachinen( 4' - AddifienaI Operating RequiremeritG, for the. Company's Transmission System Needed to Support the Seller's Generation Facilities. Attachment 5— Reactive Power. Attachment 6 - Description of Upgrades required to integrate the Generation Facilities and Best Estimate of Upgrade Costs. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 Idaho Power Company Generator Interconnection Agreement # 117 LP,U.C. No. 29, Tariff No. 101 Page 2 of 10 5. Effective Date, Term. Termination and Disconnection. 5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions of this Agreement, this Agreement shall become effective on the date specified above and remain effective as long as Seller's Generation Facilities are eligible for service under Schedule 72. 5.2 Termination. 521 Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. 5.2.2 After a Default, either Party may terminate this Agreement pursuant to Section 6.5. 5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation Facilities will be disconnected from the Company's transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination. The provisions of this Section shall survive termination or expiration of this Agreement. 5.3 Temporary Disconnection. Temporary disconnection shall continue only for so long as reasonably necessary under "Good Utility Practice." Good Utility Practice means 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 reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by the power purchase agreement. 5:3:1 Emerqency Conditions; "Emergency Condition" means a condition or situation; (1) that in. the judgment- of-the Party making the claim is imminently likely to endanger. 06 or property; or (2) that ) in the case of the Company, is imminently likely (as determined in a. non-discriminatory manner) to cause a material adverse effect on the security of, or damage to the Company's transmission/distribution system, the Company's- Interconnection Facilities or the equipment , ofthe Company's customers; or (3) that; in; the case of the Seller; is imminently. likely (as determined- in- a nn discriminatorymanne4 lo-cause. a material adverse. effect; on-the. reliability and security,. of, or damage to, the Generation? Facilities- or the. Seller's- interconnection: Facilities. Under. Emergency- Conditions ; either the- Company- or the Seller may immediately suspend. interconnection service, and: temporarily disconnect- the - (3neratlon. Facilities. The'cbmpany shall'notify the Seller-promptly whenitbecomesawareof an Emergency Condition, that- may reasonabfy be: expected: to' affect- the; Seller's operation of the Generation , FaeiIitles, The Se/len shell. notify -the Company promptly when- 1t becornes aware of an- Emergency Condition that may reasonably be expected to affect the Company's equipment or service to the Company's customers. To the extent information is known, the notification shall describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Idaho Power Company Generator Interconnection Agreement U 117 I.P.U.C. No. 29, Tariff No. 101 Page 3 of 10 5.3.2 Routine Maintenance. Construction, and Repair. The Company may interrupt interconnection service or curtail the output of the Seller's Generation Facilities and temporarily disconnect the Generation Facilities from the Company's transmission/distribution system when necessary for routine maintenance, construction, and repairs on the Company's transmission/distribution system. The Company will make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt. interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events, the Company may not' be able to provide notice to the Seller prior to interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 5.3.3 Scheduled Maintenance. On or before January31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for That calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 5.3.4. Maintenance Coordination. The Seller and the Company shall, to the extent practical, coordinate their respective transmission/distribution system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facilities and Seller-furnished Interconnection Facilities, in some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. 5.3.5 Forced Outaqes. During any forced outage, the Company may suspend interconnection service to effect immediate repairs on the Company's transmission/distribution system. The Company shell use reasonable efforts to provide the Seller with-prior notice. If prior notice is notgWen the Company shall, upon request, provide the Seller written documentation after the fact explaining the circumstances of the disconnection. 5.3.6 Adverse Operatinq.Effects, The Company shall notify the Seller as soon as practicable if based- on Good Utility Practice; operation of the Seller's Generation Facilities. may. cause disruption. or deterioration of service, to other customers., served from the same electric system, or if operating the. Generation Facilities, could cause damage to the Company's transmission/distribution system or other affected systems Supporting documentation used tb.reach the decision to. disconnect shall be provided 'to the Seller, upon request. If; after notice, the Seller fails to' remedy the aderse'operating effect within t&reasonable time, the Company may. disconnect, the Generation: Facilities. The Company shall provide the Seller with. reasonable, notice of such , disconnection ; unless the provisions of Article 5.3.1 apply. 5.3.7 Modification of the Generation Facilities. The Seller must receive written authorization from the Company before making any change to the Generation Facilities that may have a material impact on the safety or reliability of the Company's transmission/distribution system. Such authorization shall not be unreasonably withheld. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 Idaho Power Company Generator Interconnection Agreement # 117 IP.(j.C. No. 29, Tariff No. 101 Page 4 of 10 Modifications shall be done in accordance with Good Utility Practice. If the Seller makes such modification without the Company's prior written authorization, the latter shall have the right to temporarily disconnect the Generation Facilities. 5.3.8 Reconnection. The Parties shall cooperate with each other to restore the Generation Facilities, Interconnection Facilities, and the Company's transmission/distribution system to their normal operating state as soon as reasonably practicable following a.temporary disconnection. 5.3.9 Voltage. Levels. Seller, in accordance with Good Utility Practices, shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Interconnection Point, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 5.4 Land Rights, 5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, interconnection Equipment, Disconnection Equipment, Protection Equipment- and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. 5.4;2 Use of Public Rights-of-Way. The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with Paragraph 5.4.4, Seller agrees that. should Seller seek and receive from any local, state or federal governmental , bodythe right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller- of such public fight-of-way• shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except- as required by Paragraph 5:4.4, Idaho Power shall not be required. to compensate Seller for exercising-its rights under this Paragraph .8:42: 543: Joint- Usa.ofFacillties, Subjeaf to Idaho; Power's compliance with Paragraph 15.4:4 k. Idaho Power may use-and attach- its- distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct, Sellar's- Interconnection Facilities to accommodate Idaho Power'a.usage or Idaho -Power mayoonstrucfits own- distribution, or transmission - fbcilities: along, over and- above- any public. right-of-way acquired from Seller pursuant, to Paragraph attaching.- Seller's- Intersonnection- Facilities to such newly constructed facilities. Except as- required - by Paragraph 54:4; Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4.3. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Idaho Power Company Generator Interconnection Agreement #117 I.P.U.C. No. 29, Tariff No. 101 Page 5 o 10 5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility Practices, (2) equitably share the costs of installing, owning. and- operating jointly used facilities and. fights-of-way; if the Parties are unable to agree on the method of apportioning these costs, the dispute. will be submitted -to the Commission for resolution and the decision of the Commission will be binding on- the Parties, and (3) shall provide Seller with an interconnection to Idaho Power's- system , of, equal capacity and durability as existed prior to Idaho Power exercising its rights under this Paragraph 5.4. Assignment, Liability, Indemnity, Force maieure. Consequential Damages and Default. 6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to abject by the other Party; provided that: 6.1.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.2 The Seller shall have the right to contingently assign this Agreement, without the consent of the Company, for collateral security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment. 6.1.3 Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Seller. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. 622 Limitatloivof Liability. Each Party's liability to the other. Party for any loss, cost, claim; injury, liability, or expense, including reasonable attorney's fees, relating-to or arising from- any-act or omission in its performance of this Agreement, shall be limited -to the amount of direct damage actually incurred. In no event- shall either Party be liable to the other Party for any indirect, special, consequential, or punitive damages, except as authorized by this Agreement. 6.3 Indemnity; 6.3; 1 This; pro vision.protects.each Party from iiability;incurredto third. partles.aa. a resultofcareying-out.the. provisions offhisAgreement. liability-under, this provision-is. exemptfrom-the general-limitations on-liability found. inArticle 62. 6:3:2-p The - Parties shall;at:all:timosindemnifj defend; and-hoW the-other- Party- harmless: from any- andtl allf damages ;- losses;, claims, ineluding claims. and actIons, relating; to. injury to- or death. of- any parson- or damage - to property demand,, suits; recoveries, costs and. expenses, court costs; attorney fees, and all other obligations- by or to third parties, arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Idaho Power Company Generator Interconnection Agreement # 117 I.P.U.C. No. 29, Tariff No. 101 Page 6 of 10 6.3.3 if an indemnified 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 reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim. Failure to defend is Material Breach. 6.3.4 If an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery. 8.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnify provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party. 6.4 Force Majeure. As used in this Agreement, 'Force Ma/aura" or 'an event of Force Majeure" means any cause beyond the control of the Seller or of the Company which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension, of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension Ofperformance and which could and should have been fully performed before such occurrence shall 'be excused as a resultofsuch •occurrence; 6.5 Default and;MaterjafBraaches.. 65.1 Defaults, If either Party fails to perform any. of the terms or conditions. of this'Agreemeni(a "Default or -an 'Event; ofDefault!); thnondefaulflng3Parfyshalfcause noticoin. writing 'to be given :to the'defliultingParty,- specifyingthemannerinwhich such default occurred: If - the defaulting, Party shalt fail' (ci cure: such 'Dfaultwithin the sixty (60) days after service of such notice, or if the defaulting. Party reasonably demonstrates to the other Party that the Default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 Page 7 of 10 6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do not apply to Defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 7. Insurance. During the term of this Agreement, Seller shall secure and continuously cony the following insurance coverage: 7.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance industry Utility practices for similar property. 7.2 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 73 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 7.4 Seller to Notify Idaho Power of Loss of Coverage - if the insurance coverage required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute grounds for a temporary disconnection under Section 5;3 and will be a Material Breach. 8. Miscellaneous 8.1 Governing. Law. The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard to its conflicts of law principles. 8.2 Salvage. No later than sixty (60) days after the termination or, expiration of this- Agreement, Idaho Power will prepare. and. forward. to Seller an estimate of the remaining value. of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or described in this Agreement; less the cost of removal and transfer to Idaho Power's nearest warehouse, if the lntbrconnection Facilities will be removed If Seller elects not to obtain ownership of' the - Interconnection Facilities but instead wishes that Idaho Power-reimburse: the Seller fOr said Facilitie the - Seller, may invoice. Idaho Power for the net; salvage' value- as estimated by Idaho: Power and Idaho Power shall-pay such amount, to Seller, within:fhirty '30, days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 PaQe 8 of 10 9. Notices. 9.1 General. Unless otherwise provided in this Agreement, any written notice, demand, or request, required or authorized in connection with this Agreement ('Notice shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by firstt class mail, postage prepaid, to the person specified below: If to the Seller: Interconnection Customer: Idaho Wind Partners 1, LW, as Agent Attention: RP Wind ID LLC, Managing-Member Address: 82 Elm Street, P.O. Box 2049. Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: steve. eisenbergreunionpower. corn If to the Company: Company: Idaho Power Company - Delivery Attention: Operations Manager Address: 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-5669 Fax: 208-388-5504 9.2 Billing and Payment. Billings and payments shall be sent to the addresses set Out below: Interconnection Customer: Idaho Wind Partners 1, LLC, as Agent Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Idaho Power Company - Delivery Attention: Corporate Cashier P.O. Box 447 Salt Lake City, Utah 84110-0447 Phone: 208-388-5697 Email: asIoanidahopower.com 9.3 Designated Operating Representative. The Parties may also designate operating. representatives to conduct: the communications which may be necessary or convenient- for the administration of this Agreement This person will also serve as the point, of contact with .respect, to. operations and maintenance of the Partysfacilities Interconnection CUstomer's'OporatlngRepresenfotive: Idaho.Wind!Partn era. 1 LLLC c/o RPOperafIons COmpany, LLIC: Attention: General- Manager Address: Alan Drive Jerome, ID 83338 Phone: Fax. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 Page 9 of 10 Company's Operating Representative: Company: Idaho Power Company Delivery Attention: Regional Outage Coordinator - Regional Dispatch Address: 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-2633, 388-5125, or 388-5175 during regular business hours (after hours Southern Region 208-388-5190). 9.5 Chancies to the Notice Information, Either Party may change this information by giving five (5) Business Days written notice prior to the effective date of the change. 10. Signatures. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives. For omer, Name: Idaho Wind Partners 1, LLC, as Agent ;~'. ett Tide: f1 j I Date: For the Interconnection Customer Camp 'Wed VYndP Name: Title: / - Iqi —r ( Date: g b101, Ore go ilWind- a(i / Name: Tiflö: /4czeyri ' '-"i Date: Payne 's.freny wfr,p,_L.re/.: Name: Title: Date: Thouspriiigw LIC Name: i litIe: r- Date: Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Idaho Power Company Generator Interconnection Agreement # 117 LP,U.C. No. 29, Tariff No. 101 Page 10 of 10 Tuane Gufr14I1nd Pr' Name.' Tide: /1e'i 0 IN Date: Name: Title: / Dale: / -cì For thi9mPan Name: Title: Manage) Grid Operations - Idaho Power Company, Delivery Date: Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 Page 1 of 2 Attachment I Description and Costs of the Generation Facility, Interconnection Facilities and Metering Equipment In this attachment the Generation Facility and Interconnection Facilities Including Special Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company, As provided in Schedule 72, Payment For Interconnection: Facilities , the Company will provide a best estimate itemized cost of its Interconnection Facilities, including Special Facilities, upgrades and Metering Equipment. General Facility Description The proposed project will consist of a substation yard with a building, fiber communications on distribution to the station and a transmission line tap in Twin Falls County, Idaho and connect to the 138 W system on Idaho Power Company's Bliss - King transmission line. The total generation output is 101.5 MW. Interconnection Point The Interconnection Point for the Thousand Springs Project will be the Idaho Power owned 101B air break switch north of the customer-owned transformer. Idaho Power will install and own the air break switch; the customer will install and own the bus from air break switch 1018 to the transformer. The project's location is Twin Falls County, Idaho, about 1/2 mile north of the intersection of 400E and 5900N. A drawing identifying the interconnection Point is included as Attachment 2. Seller's Interconnection Facilities The Seller will install a 138-34.5kV substation yard with a building, distribution circuits to the six wind parks and generation facilities for the following customer-identified wind parks: Thousand Springs (12MW), Oregon Trail (13.5MW), Tuana Gulch (10.5MW), Camp Reed (22.5MW), Payne's Ferry (21MW) and Yahoo Creek (21MW). Idaho Power Company requires that the high-side of the customer owned transformer be a grounded-wye configuration. All interconnection equipment electrically located on the generator side of the Interconnection Point shall be owned and maintained by the Generator with the exception of each wind park's distribution metering packages, which are owned and maintained by Idaho Power. Other Facilities Provided by Seller. Telecommunications Idaho Power will install a communication circuit to the substation for IPC use (SCADA, metering and protection): It. will be ADSS fiber and located on an existing Idaho Power: distribution feeder. Idaho Power requires that each wind park be metered individually and Idaho. Power will install a metering package for each park. If the metering package needs to be located away from the substation ; the Seller will provide a communication circuit between the metering site and a location, or locations, specified by Idaho Power; It will be a pQp3: dialup circuit to the revenue meter. The Seller is responsible for supplying and coordinating the installation of the phone lines and paying the monthly service charges. The communication circuits will need to be installed and operational: prior tO generating into the Idaho Power. system. Property, Site Work and -Station Building The Seller will provide. land clearing, site' leveling; grounding, fencing and acquire property for the switching station. A building within the switching station will be provided by the Seller and space will be allocated for Idaho Power Company facilities. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 Page 2012 Idaho Power Company's Interconnection Facilities Idaho Power Company will install a tap to the Bliss - King 138kV transmission line with a non-load break switch, a dead end structure, 138kV circuit breaker, 2 air-break switches, and associated relaying, control and metering equipment in the substation yard. and building to the Interconnection Point for the generator facility. Idaho Power will also install fiber communications to the substation. See attached single line drawing 210-61603 included-as Attachment 2. All interconnection equipment electrically located on the utility side of the Interconnection Point shall be owned, operated, and maintained by Idaho Power. Idaho Power will install a 34.5kV metering package for each of the six wind parks. They will be overhead or underground equipment as specified by the customer. The primary total metering will be done at 138kV at the customer-owned Tuana substation. Estimated Cost & Ownership: The following good faith estimates are provided in 2009 dollars Generation Facilities: .0 Thousand Springs Customer $N/A Interconnection Facilities: • Transmission Tap IPC $50,000 Fiber Communications Circuit TPC $100,000 138kV Interconnection Facility IPC $900,000 Distribution Metering Packages ]PC S110,000 TOTAL - $1,160,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Idaho Power Company Generator Interconnection Agreement # 117 I.P.U.C. No. 29, Tariff No. 101 Page 1 of I Attachment 3 Milestones: (not includine the Transmission Network • 6/7/10 Construction Funds Received by Idaho Power - 12131/10 IPCO Construction Complete 12/31/10 * !PCO commissioning Complete The above referenced Milestone dates are estimates only, and not guarantees of meeting or not meeting any specific date or Milestone. *This is a revised date, upward in time from 1/15111, based upon Interconnection Customer's needs and requests. Idaho Power will use reasonable efforts to have IPC's commissioning completed by 12/31/10. This revised completion date is contingent upon all materials being delivered on their scheduled delivery dates, the transmission line outage occurring as scheduled, receiving all necessary local, state and federal permits, including FERC and NEPA, and construction & regional resources being available. The parties hereby acknowledge that Idaho Power shall not be liable for any possible damages associated in any way with Renewable Energy Credits or Attributes, the firm energy sales agreements, and the like, attributable to Interconnection Customer, or any of the various projects named on page one of the GIA, should the 12/31/10 date not be met. Under normal efforts to bring the projects online a normal amount of overtime is utilized. Because of the interconnection Customer's desire to meet an IPC commissioning date of 12131110, Interconnection Customer hereby authorizes IPC to incur additional expenses, including additional overtime, lodging, travel, and other expenses needed to bring in other IPC resources and personnel from other IPC regions as necessary-to wo on this -interconnection. Note: Idaho Power will use best- efforts to meet the customer desired construction completion date f 11/1.5/10. Agreed to by; /7 For the Interconnection Customer' / Date/ / For the-Transmission-Provider .., J Idaho Power Company, Delivery JI4. O - Date _//2.)/ ? Exhibit 2115 GNR-E-11-03 R. Guy: Idaho Wind Partners I, LLC Page 15 Idaho Power Company Generator Interconnection Agreement # 117 I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2 Attachment 4 Additional Operating Requirements for the Company's Transmission System and Affected Systems Needed to Support the Seller's Needs The Company shall also provide requirements that must be met by the Seller prior to initiating parallel operation with the Company's Transmission System. Operating Requirements The project is required to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they may be updated from time to time. Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with no impact upon the operation of the transmission system whenever the generation facilities are electrically isolated from the transmission system via the 10IB switch and a terminal clearance is issued by Idaho Power Company's Grid Operator. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. It is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. Low Voltage Ride Through The project shall remain interconnected upon the occurrence of a three phase or single phase to ground fault down to a voltage of zero at locations on Idaho Power's system as close to the interconnection customer's facilities as Idaho Power Company's King Substation prior to the fault being cleared for the minimum times stated below before tripping off-line: • Three phase fault: Normal clearing that takes up to cycles. • Single phase to ground fault: Delayed clearing that takes up to 50 cycles. Ground Fault Equipment The Interconnection Customer will install transformer configurations that provide a ground source to the transmission system. Commercial Operation Requirements The Interconnection Customer will be granted a requested Commercial Operation date only when all requirements have been met under. this.GIA and Idaho Power Company's Power Sales Agreement. A transmission service request ('TSR') for this generation has been submitted to Idaho Power Company's Grid Operations group under TSR 72734375. Generator Output Lihilt Control ("Re-dispatch" or "GOLC The Thousand Springs Wind Project will be allowed to deliver the - net output of 101.5MW at the Interconnection Point , subject- to reductions directed by Idaho Power Company Gild Operations during transmission system contingencies until the Generator Output Limit Control ('GOLC") is tested and in operation. The Seller has elected to be subject. to GOLC under. Idaho Public Utility. Commission ('IPUC") Order- No. lPC-E-0621. Once the Thousand Springs Wind Projectis in operation, it ,. will be able to generate uptrated netoutput of 101:5 -MW subject'to the previsions ofIPUC Order. No. IPC-E- 06-21 and Exhibit: C below referenced by that Order. The following Exhibit C is incltxde& herein from the Company's Joint Motion to Approve Stipulation and to Dismiss Complaint dated June 13, 2007 in IPUC Case No. IPC-E-06-21. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No. 29, Tariff No. 101 Page 2 of 2 Exhibit C The following Idaho Power Network transmission facilities have been identified to be affected by the addition of the Requesting Projects in the Twin Fails area. An outage of any of these facilities may result in overloads on the remaining facilities. Such outages may require the initiation of Cassia Redispatch (also Generation Output Limit Control) Boise Bench - Midpoint , 230 KV transmission line Boise Bench - Rattle Snake 230KV transmission line Rattle Snake - Midpoint 230 KV transmission line Dram - Midpoint 230 KV transmission line Hubbard - Danskin 230 KV transmission line King 1381230 KV transformer Danskin - Mountain Home Junction 138 Ky transmission line Upper Salmon - Mountain Home Junction 138 KV transmission line Lower Malad - Mountain Home Junction 138 Ky transmission line Upper Salmon - Mountain Home Junction 138 KV line reactor Lower Malad - Mountain Home Junction 138 KV line reactor Lucky Peak - Mountain Home Junction 138 KV line reactor Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Idaho Power Company Generator Interconnection Agreement # 117 IP.1fl.C. No. 29, Tariff No. 101 Page 1 of 1 Attachment 5 Reactive Power Requirements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided by the Seller. The Company will specify the equipment required on the. Company's system , to. meet the Facility's reactive power. requirements. These specifications will include but not be limited to equipment specifications, equipment location, Company- provided equipment, Seller provided equipment; and all costs associated with the equipment; design and insfallbtlon of the Company-provided equipment; The equipment specifications and requirements will become an integral part of this Agreement. The Company-owned equipment will be maintained by the Company, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. The project must be controlled to limit the Var output to +/-8 War. The Seller will be provided a voltageNar schedule from Idaho Power Grid Operations prior to Commercial Operation of the project that will provide detailed operational requirements within the var limitations. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 Idaho Power Company Generator Interconnection Agreement # 117 LP.U.C. No 29, Tariff Nd. 101 Pane I of 4 Attachment 6 Company's Description of Special Facilities and Upgrades Required to Integrate the Generation Facility and Best Estimate of Costs As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including Network Upgrades and provides an itemized best estimate of the cost of the required facilities. Distribution Upgrades Idaho Power will upgrade 34 mile of Idaho Power Company's 138W Bliss - King transmission line from the Fossil Gulch tap to Idaho Power Company's King substation to accommodate the addition of the Thousand Springs generation. Replacement of seven air break switches at King substation will also be required. Due to line outage constraints on the Idaho Power system, the transmission line reconstruction between the Fossil Gulch Tap and the King Substation will not be feasible until the fall of 2010 Both of these upgrades are necessary prior to interconnecting at the proposed Interconnection Point Upgrades to Distrtbrrnon Bliss-King Transmission Line Upgrade IPC . $400,000 King Substation Upgrades . IPC . $275,000. TOTAL $615,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Transmission Network Upgrades Network Upgrades for this project were detailed in a separate Facility Study Report for the Joint Study Group identified in the March 8 2008 System Impact Study Report for up to 353 MW of New Generation on the 138kV Transmission System in the Twin Falls Area 1) RepuIatoryReguirements: A. A number of generation projects seeking Network Resource Interconnection Service, (as that term is defined in FERC Order 2003 and the Company's FERC approved Open Access Transmission Tariff ('OAlT")) including the Generation Facility, propose to interconnect to the portion of the Company's transmission system is located in the Twin Falls, Idaho geographic area, and have submitted. interconnection requests to the Company during the period January 1, 2005 through October, 1 2007 (collectively, the 'Requests" or , 'Requesting Projects"). B In accordance with FERC. Order 2003; the Company's OATT, Commission Order No. 30414 and in the interest, of maintaining comparability and economic efficiency in responding to the Requests, the Company has establlshed:'Joint Study Group One (1)" for the -Requesting Projects. C Seller is ready. and willing, to start immediate construction of the Generation Facility. One.or more Reqiesting.Ptojects which precede:or follow-Seller- in-the Joint Study Group One are not yetpreparedIor immediate; construetion or'may;nobbe construeted;at'alL 2) GeneratIon Outbut Limit: Control:, The Generator Facility is a PURPA QE. Seller will; at its sole expense, install, operate and maintain the equipment and communications facilities necessary to enable the Generation Facility to reduce its Maximum Hourly Output to a not-to-exceed sot point, within ten (10) minutes of when the Company calls for the reduction. The Company will specify the set point when it notifies Seller of the need to initiate Generation Output Limit Control. Generation Output Limit Control cannot be used to increase the Generation Facility's output above such Maximum Hourly Output for then existing turbine and wind conditions. Seller will normally, subject Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 Idaho Power Company Generator Interconnection Agreement #117 I.P.U.C. No. 29, Tariff No. 101 Page 2 of 4 to those conditions, seek to maximize the energy output of the Generation Facility, but Generation Output Limit Control will limit the output of the Generation Facility whenever the Maximum Hourly Output level would otherwise exceed the required set point in any scheduling hour. Seller has elected to be subject to Generation Output Limit Control. 3)Cost Risk for Network Upgrades: Network Upgrade costs will be allocated to each Requesting Project, including the Generation Facility, based on: a) their election of whether to be subject to Generation Output Limit Control, b) their order in the Joint Study Group One, and c) based on the megawatt interconnection capacity of each Requesting Project, their prorata share of the cost for the Network Upgrade required to interconnect one or. more Requesting Project, and the added , interconnection capacity of that particular Network Upgrade. The Seller will pay non-reimbursed amounts of no more than 25% of the actual as-constructed cost of the Generator Facilities currently- allocated share of the Network Upgrades required to interconnect the Generation Facility without Generation Output Limit Control (see paragraph 6 below - Sharing of Network Upgrade Costs. 4)Generation Output Limit Control Rights: The Company may issue a set point or limit and initiate Generation Output Limit Control to respond to transmission system emergencies, or respond to circumstances where the transmission line(s) identified in Commission Order No. 30414 are out of service and for which Generation Output Limit Control was determined necessary and did lower the amount of Network Upgrade cost obligation to the Generation Facility. In most circumstances, Generation Output Limit Control will not be required when all the lines specified in Commission Order No. 30414 are in service. Any use of Generation Output Limit Control to establish a set point below the Generation Facility's capacity shall be pro-rata with other Requesting Projects subject to Generation Output Limit Control. The Company will not purchase or pay for energy which would have been produced by the Generation Facility, but for operation of Generation Output Limit Control. 5)Responsibility for Network Upgrade Costs: In addition to funding all costs of directly interconnecting the Generation Facility to the Company's system, the Seller will pay its pro-rata share of the Network Upgrade costs actually incurred by the Company to provide firm Network Resource Interconnection Service to the Generation Facility but the Generation Facility shall not be obligated to share the on-going operation and maintenance costs of such Network Upgrades. Seller recognizes that the final cost of its share of the Network Upgrades will not be known until construction is completed. The Seller also recognizes that its share of the final Network Upgrade cost will increase or decrease, subject to the provisions of paragraph 6, depending on whether other Requesting Projects, both earlier and later in the Joint Study Group One are constructed. 6)SharingofNetwork UpgradeCosts: A. The Seller and the Company will share the five phases of Network Upgrade costs attributable to the Generation Facility as follows: 1.Phase 1: the Company will assume 100% cost responsibility for Phase 1 and include this costJnitsrate base: 2.Phases 2, 3, 4 and 5: (a)23% of the costs will be provided by the Generation Facility as a non-refundable contribution in aid of. construction ('CIAC"). (b)25% of:thecosts wilIbe funded--by.-the Company and-included-in the Company's rate base. (c)50% of the costs will be funded by Generation Facility as an advance in aid of- construction ("AIAC") subject to refund as provided in paragraph 7 below. As refunds are made, the refunded amounts will be included in rate base using standard regulatory accounting principles. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power Company Generator Interconnection Agreement # 117 IP.U.C. No. 29, Tariff No. 101 Page 3of4 B. As projects in the Joint Study Group One are interconnected, the Company will reallocate the CIAC and AIAC portions of the costs of Phases 2 through 5. For example, when additional projects in the Joint Study Group One are constructed after the Generation Facility is constructed, the Company will collect: monies from these subsequent projects and refund monies to Seller. It is the Company's intent, that each QF Project in the Joint Study. Group One will pay its respective pro-rata share s based on. nameplate generation capacity, of each phase of the Network Upgrade they utilize. Tables 3-7, 8, 9 and 10 in the Settlement Stipulation adopted in Commission Order No. 30414 illustrate how this re-allocation would occur on a hypothetical basis 7)Reftmd:Provisions: The Seller will be entitled to a cash repayment ; in monthly, equal installments, for the total MAC amount the Seller advances to the Company for Network Upgrades, including any tax gross-up or other tax related payments associated with the AIAC for Network Upgrades. Repayment will be made in accordance with Article 11.4 of the Large Generator Interconnection Agreement ('LGIA°) included in the Company's OATT and occur over a term not to exceed ten (10) years after the date the Generation Facility achieves commercial operation. Monthly repayments will be contingent on the FESA's being in good standing (no uncured defaults) and upon the Generation Facility achieving a mechanical availability in that month in excess of 50 11/6, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month. In computing the mechanical availability, the capacity available, in each hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is defined in the FESA) or a reduction in generation due to Generation Output Limit Control required by the Company as described in paragraphs 2 and 4. 8)Interest on Refunds: Monthly refund payments on AIAC amounts shall include interest calculated in accordance with the methodology set forth in FERC regulations at 18 C.F.R. 35.19a(a)(2)(iii) from the date of any payment for Network Upgrades through the date 'on which Seller receives final repayment. 9)Security for Payment: Until it is finally determined which of' the Projects in the Joint Study Group One will be constructed and interconnected and the final cost of those interconnections is determined, upon execution of this Interconnection Agreement Seller will provide and maintain a cash escrow or a letter of credit to the Company in a form and by an issuer satisfactory to the Company as security for payment, initially in the amount of: the Generator Facility's allocation of Network Upgrade costs as provided herein and adjusted from time to time pursuant to the status of' the Requests. The total security amount at any time will not exceed the amount that: would. be owed if the Requests then remaining in the Joint. Study. Group One that: are scheduled for construction later than the Generation Facility is not. constructed, Other QF participants in the Joint Study Group Onewill be held to a similar requirement. 10)GeneratIon Qutogti Lirnit Control. ProtocolS This Interconnection Agreement addresses interconnection .ofthe;Generetion 'Facility, to theCompanytransmission:system.witI1 Network: Resource Interconnection Service. However, SelIer acknowledges that until' sufflcientt Network Upgrades are installed to allow the Generation Facility to. qualify for Network' Resource Interconnection Service, the Generation Facility, will be: subject to Generation Output. Limit Ontrot as described' in paragraphs 2and4i ii) Notworki Ubrade: Cost Detenulnatlon:. Network Wpgrade; costs, allocated- to the. Generation Facility for initial fUnding, will be determined' in a comparable manner and with' the same criteria used by the Company when studying the interconnection of other generation, whose output can be changed within ten (10) minutes, at other locations on its transmission system. Upon request by the Generation Facility, the Company will provide a written explanation of the methods and assumptions leading to any such allocation of Network Upgrade cost obligation to the Generation Facility. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 Idaho Power Company Generator interconnection Agreement # 117 I.P.U.0 No. 29, Tariff No. 101 Page 4of;4 12)Request Uncertainty: The Company will follow good utility practice, the LGIP and SGIP, and all Commission orders in processing the Joint Study Group One within Idaho Power Company's Generator Interconnection Queue. Any Requests that fail to meet those requirements to remain in the Joint Study Group One, or fall to proceed to construct. their interconnection or fail to initially fund or secure their allocated share of the Network Upgrade costs, will forfeit their position in the Idaho Power Company Generator , Interconnection Queue and their rights to. the interconnection and transmission system capacity associated with -their Request 13)Gengration-Faclift., Responsibility for NetWork Upgrade. costs The Company will initially and throughout the life of the Generation-Facility, consistent with good utility practice, determine the least- cost solution; given the current status of the Requests in the Joint Study Group One, that will result in the lowest reasonable allocation of initial funding responsibility for Network Upgrades to the Generation Facility. The Company will apply the same criteria to all Projects in the Joint Study Group One. 14)Seller Construction Responsibility Transmission Network Upgrades (described in Section C below): Updated cost allocation based on the System Impact Study Report for up to 353 MW of New Generation on the 138kV Transmission System in the Twin Fells Area dated March 14, 2008. Description Ownership Estimated Cost Phase 2 138kV DRAM Series Reactor for Thousand Springs IPC $655,000 Phase 3 138kV Mtn Home Junction Series Reactor for Thousand Springs IPC $352,373 Total $1,007,373 The final cost Will be allocated to the participants remaining in Joint Study Group One upon completion of the project. C. Allocation of Transmission Network Upgrade Costs Seller and Idaho Power will share the actual Network Upgrade costs attributable to the project as follows: 1.25% of the costs will be provided by Seller as a. non-refundable contribution in aid of construction ('CIAC"). 2.25% of the costs will be funded by.. Idaho Power, and includedinldaho Powers rate base. 3.50% of- the costs- will: be funded by Seller as: an advance in aid of construction ('AIAC") subject to refund. As refunds are made the refunded amounts. will be included in rate base using standard regulatory accounting principles. Repaymentof Credits for Network- Upgrades in accordance with 1PUCOrdor No. 30414: Transmission Owner Costs (25%) . $25t843.25; Seller Non-reimbursable Costs •(25%). . . $251,843.25: Seller Reimbursable COsts (50 9/6). $503;68650. It should be noted: thabthere- are-other proposed intercenneodon projects. in the same. areas that will; be using thesamefaeilities that Misr project, wilI need, This will' affbet the. the.preposed facilities IPC is unable at this time to estimate your pro rata share of the overall costs, as the total cost is dependent on the level of participation of other parties in the Generator Interconnection queue. Exhibit 2115 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 Idaho Power Company Generator Interconnection Agreement #155 & 299 LP.U.C. No. 29, Tariff No. 101 GENERATOR INTERCONNECTION AGREEMENT Schedule 72 Golden Valley Wind Park Projects #155 & 299 12 MW Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 Idaho Power Company Generator Interconnection Agreement # 155 & 299 I.P.U.C. No. 29, Tariff No. 101 Page 1 of I TABLE OF CONTENTS RECITALS.............................................................................................................................................. 1 AGREEMENTS............................................................................................................ .......................... 1 1.Capitalized Terms.................... . ............................. . ............................... ............................... I 2.Terms and Conditions .......................................................................................................... I 3.This Agreement is not an agreement to purchase Seller 's power . ...................................... ..1 4.Attachments ......................................................................................................................... I 5.Effective Date, Term. Termination and Disconnection .......................................................... I 5.1 Term of Agreement. 5.2 Termination. ......................................................................................................................... 2 5.3 Temporary Disconnection ..................................................................................................... 2 5, Assignment, Liability, Indemnity, Force ma/euro. Consequential Damages and Default . ...... 5 7.Insurance . ............................................................................................................................ 7 8.Miscellaneous . ........................................................ ............................................................. 7 9.Notices . ................................................................................................................................ 8 10.Signatures . ....................................................................................... .................................... 9 Attachment1 ..........................................................................................................................................I Attachment2..........................................................................................................................................I Attachment3.......................................................................................................................................... Attachment4..........................................................................................................................................I Attachment5..........................................................................................................................................I Attachment6..........................................................................................................................................I Exhibit 2116 GNR-E--1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 Idaho Power Company Generator Interconnection Agreement #155 & 299 I.P.U.C. No. 29, Tariff No. 101 Page 1 of 9 This Generator Interconnection Agreement ('Agreement) under Idaho Power Company's Schedule 72 is effective as of the - day of September, 2010 between Idaho Power Company - Delivery ("Company or "Transmission Owner") and Golden Valley Wind Park, LLC, an Idaho Limited Liability Company, ("Sc/er" or "Interconnection Customer"). RECITALS A.Seller will own or operate Generation Facilities that qualify for service under Idaho Power's Commission-approved Schedule 72 and any successor schedule. B.The Generation Facilities covered by this Agreement are more particularly described in Attachment 1. AGREEMENTS 1.Capitalized Terms Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement. 2.Terms and Conditions This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Seller's Generation Facilities will interconnect with, and operate in parallel with, the Company's transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72, Schedule 72 shall prevail 3.This.Agreernent is not an agreement to nurchase Seller's power. Purchase of Seller's power and other services that Seller may require will be covered under separate agreements. Nothing in this Agreement is intended to affect any other agreement between the Company and Seller. 4 Attachments Attached to this Agreement—and—included by reference are the following., Attachment 1. - Description and Costs of the Generation Facilities, Interconnection Facilities, and Metering:Equipment Attachment 2.— One-line Diagram. Depicting, the Generation Facilities, Interconnection Facilities MbtoringEquipment;andUpgredes Attachment 3 - Milestones-For Interconnecting the Generation-Facilities. Attachment' 4— Additional Operating Reqiirements for the Company's. Transmission. System NOedècLto&ipportthe. Sefier'a. GenerationFacilItlOs. Attachment — Reactive. Power. Attachment 6 - Description of Upgrades required to integrate the Generation Facilities and Best Estimate of Upgrade Costs. 5. Effective Date. Term, Termination and Disconnection. Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 Idaho Power Company Generator interconnection Agreement # 155 & 299 LP.U.C. No. 29, Tariff No. 101 Page 2 of 9 5.1 Term of AcyreemenL Unless terminated earlier in accordance with the provisions of this Agreement, this Agreement shall become effective on the date specified above and remain effective as long as Seller's Generation Facilities are eligible for service under Schedule 72. 5.2 Termination. 5.2.1 Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. 5.2.2 After a Default, either Party may terminate this Agreement pursuant to Section 6.5. 5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation Facilities will be disconnected from the Company's transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination. The provisions of this Section shall survive termination or expiration of this Agreement. 5.3 Temporary Disconnection. Temporary disconnection shall continue only for so long as reasonably necessary under Good Utility Practice." Good Utility Practice means 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 reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by the power purchase agreement. 5.3.1 Emeruency Conditions. "Emergency Condition" means a condition or situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (2) that; in the case of the Company, is imminently likely (as determined in a. non-discriminatory, manner) to cause a- material adverse effect on the security of or damage to the Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in a non- discriminatory manner) to cause a material adverse effect on the reliability and security of;. or damage to, the Generation Facilities or. the Seller's interconnection FaciIitIes Under Emergency- Conditions; either the. company or. the- Seller may immediately suspend. 'interconnection: service., and temporarily , disconnect. the Generation Facilities. The Company shall notify the Seller promptly- when it becomes aware of an Emergency Condition that may reasonably be expocted to- affect the. Seller's operation of' the Generation Facilitlesz The Seller shall:notify the Company promptly when it becomes aware: of an Emergency. Condition that may.- reasonably be expected to affect the company's equipment.-, or. service: to: tile. Company's- customer&- To the - extent information is known, the notification shalt describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action. Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Idaho Power Company Generator Interconnection Agreement # 155 & 299 LP.U.C. No. 29, Tariff No. 101 Page 3 of 9 5.3.2 Routine Maintenance. Construction, and Repair. The Company may interrupt interconnection service or curtail the output of the Seller's Generation Facilities and temporarily disconnect the Generation Facilities from the Company's transmission/distribution system when necessary for routine maintenance construction and repairs on the Company's transmission/distribution system The Company will make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events, the Company may not-be able to provide notice to the Seller prior to interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 5.3.4. Maintenance Coordination. The Seller and the Company shall the extent practical, coordinate their respective transmission/distribution system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facilities and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. 5.3.5 Forced Outies. During any forced outage, the Company may suspend interconnection service to effect immediate repairs on the Company's transmission/distribution system. The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not given, the Company shall, upon request, provide the Seller written documentation after the fact explaining the circumstances of the disconnection. 5.3.6 Adverse Operating Effects, The Company shall notify the Seller as soon as practicable if, based on Good Utility Practice, operation of the Seller's Generation Facilities may cause disruption or deterioration of service to other customers- served from the same electric system or if operating the Generation Facilities could cause damage to the Company's transmission/distribution system- or other affected systems. Supporting documentation used-to reach the decision to disconnect shall be provided to the Seller upon request If, after notice, the Seller falls to remedy the adverse operating effect within -a:reasonable time, the Company may disconnect, the Generation Facilities. The- Company she/V provide the Seller with- reasonable notice of such- disconnection, unless- the provisions oPArticle5.31appIy. 5.3.7 Modification of the Generation Facilities. The Seller must-receive written authorization from the Company before making any change to the Generation Facilities that may have a material impact on the safety or reliability of the Company's transmission/distribution system. Such authorization shall not be unreasonably withheld. Modifications shall be done In accordance with Good Utility Practice. If the Seller makes Exhibit 2116 GNR-E--1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 Idaho Power Company Generator Interconnection Agreement #155 & 299 I.P.U.C. No. 29, Tariff No. 101 Page 4 of 9 such modification without the Company's prior written authorization, the fatter shall have the right to temporarily disconnect the Generation Facilities. 5.3 .8 Reconnection; The Parties shall cooperate with each other to restore the Generation Facilities, Interconnection Facilities, and the Company's transmission/distribution system to their normal operating state as soon as reasonably practicable following a temporary disconnection. 5.3.9 Voltage Levels. Seller, in- accordance with Good Utility Practices, shall minimize voltage fluctuations and- maintain voltage levels acceptable to Idaho Power; Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Interconnection Point, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 5.4 Land Rights. 5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. 5.4.2 Use of Public Rights-of-Way. The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities uponi along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and. Idaho Power may claim use of such public right-of-way for such purposes at- any time. Except as required by Paragraph 5.44 ; Idaho Power- shall not be required- to compensate Seller for exercising its -rights-under this:Paragraph 5.4; 2: 5.4.3 JointUseof Facilities; Subject to Idaho Power's- compliance.- with Paragraph 15.4:4, Idaho Power may use:and-attach its dlstribution-and/oriransmission facilities- to Seller's Interconnection Facilities, may reconstruct- Sellerfs- Interconnection Facilities to accommodate Idaho. Power's usage. or Idaho. Power may constructs its own distribution or transmission facilities along; over and: above;- any public right'.ofway acquired from Seller pursuant: W Paragraph 5:42 attaching; Seller's: interconnection Facilities to such: newly constructed- facilities. Except as; required:by: Paragraph; 5;44; Idaho- Power shall not be required to compensate Seller for exercising its - rights under this Paragraph 5.4.3. 5.4.4 Conditions of Use. It Is the intention of the Parties that the Seller be left in substantially the same condition, both financially and electrically, as Seller existed prior Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Idaho Power Company Generator Interconnection Agreement # 155 & 299 LP.U.C. No. 29. Tariff No. 101 Page 5 of 9 to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way; if the Parties are unable to agree on the method of apportioning these costs, the dispute will be- submitted to the Commission for resolution and the decision of the Commission will be binding on the Parties, and (3) shall-provide Seller with an interconnection to 'Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising-its-rights- under this-Paragraph 54 6. Assignment; Liability, Indemnity. Force majeure. consequential Damaqes,andDefault, 6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to object by the other Party; provided that: 6.1.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.2 The Seller shall have the right to contingently assign this Agreement, without the consent of the Company, for collateral security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment 6.1.3 Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Party of its obligations, nor shall a-Party's obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Seller. Where required, consent to assignment will not be unreasonably withheld conditioned or delayed 6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from any actor- omission in its performance -of this Agreement; shad-be llmited:to the amount of-direct- damage actually incurred; In no event shall either Party be liable- to the-other Party for any indirect, special, consequential, or punitive damages, except as authorized by this Agreement 6.3 Indemnity. 6.3.1' This provision protects eachParty from liability incurredto-third-partfes as aresuIt-ofcanying out the provisions-of this-Agreement Liabilityiinder this provision is exempt;from ;thegeneraI limitations on.liabilityfOund-inrArtic!e.61 6.3.2 The- Parties shall: at alI:times-indemnify, defend; and -hoIdfIts other. Party harmless from, any and: all damages, losses, claims ; including? claims and: actions- relating to: injury' to' or death- of anyl person: or damage to property, demand; suits, recoveries;, cosffiand:expenses; court, casfs, attorneylees,. and?a1Iother'obllgatiorie by or to: tbirdpadies arising i out of or, resulting., from the- other Pei1ys action: or failure to: meet its obligations-under this Agreement on behalf of the' indemnifying-Party, except- in- cases of gross negligence or intentional wrongdoing by the indemnified Party. 6.3.3 If an indemnified 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 Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Idaho Power Company Generator Interconnection Agreement # 155 & 299 I.P.U.C. No. 29, Tariff No. 101 Page 6 of 9 reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim. Failure to defend is Material Breach. 6.3.4 If an indemnifying party is obligated to indemnify and hold any indemnified person. harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnifIed person's actual loss, net of any insurance or other recovery; 6.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party. 6.4 Force Maieure. As used in this Agreement, Force Majeure" or an event of Force Mojeure" means any cause beyond the control of the Seller or of the Company which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. if either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 Idaho Power Company Generator Interconnection Agreement #155 & 299 LP.U.C. No. 29, Tariff No. 101 Pane 7 of 9 6.5 Default and Material Breaches. 6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (a Default" or an Event ofDefaulr), the nondefaulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the defaulting Party shall fail to cure such Default within the sixty (60) days after service of such notice; or if the defaulting Party reasonably demonstrates. to the other Party that the Default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6 .1 do not apply to Defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. Insurance. During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 7.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 72 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 7.4 Seller to Notify Idaho Power of Loss of Coverage - if the insurance coverage required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify- Idaho Power in writing. The notice will advise Idaho. Power of the specific reason for the lapse. and the steps Seller is taking to reinstate the coverage. Failure to provide this- notice and to. expeditiously reinstate or replace the coverage will constitute grounds for a. temporary disconnection under Section 5;3 and will be a Material Breach. 8;1 Miscellaneous. 8.1 Governing Law. The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard to its conflicts of law principles. 8.2 Salvage. No later than sixty (60) days after the termination or expiration of this. Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Idaho Power Company Generator Interconnection Agreement # 155 & 299 LP.U.C. No. 29, Tariff No. iOi PageS of 9 of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities w1I be removed. If Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shalt pay such amount to Seller within thirty (30) days after receipt: of the invoice. Seller shalihave the right to offset the invoice amount against any present or future payments due Idaho Power. Notices: 9.1 General. Unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement ("Notice) shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by first class mail, postage prepaid, to the person specified below: If to the Seller: Interconnection Customer: Idaho Wind Partners 1, L.LC Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802362-9147 Fax: 802-382-9148 Email: sfeve.eisenberg©reunionpower.com If to the Company: Company: Idaho Power Company - Delivery Attention: Operations Manager 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-5669 Fax: 208-388-5504 9.2 Billing and Payment. Billings and payments shall be sent to the addresses set out below: If to the Seller: Idaho Wind Partners 1, LLC Attention: RP Wind ID LLC, Managing Member- 82 Elm Street, P.O; Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: steve.eisenbergreunionpowercom Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 Idaho Power Company Generator Interconnection Agreement # 155 & 299 I.P.U.C. No. 29 Tariff No. 101 Pace 9 of 9 If to the Company: Idaho Power company - Delivery Attention: Corporate Cashier P.O. Box447 Salt Lake City, Utah 84110-0447 Phone: 208-388-5697 Email: asloan@idahopower.com 93 Design alert Operating Represenfafwe. The Parties may also designate operating: representatives to conduct the communications which may be necessary or convenient for the 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. Sellers Operating Representative Idaho Wind Partners 1, LLC ale RP Operations Company, LLC Attention: General Manager Address: Alan Drive Jerome, ID 83338 Phone: Fax: Company's Operating Representative: Idaho Power Company - Delivery Attention: Regional Outage Coordinator - Regional Dispatch 1221 W. Idaho Street Boise, Idaho 83702 Phone 208-388-2633, 388-5125; or 388-5175 during regular business hours (after hours Southern Region 208-388-5190). 9.5 Changes to the Notice Information. Either Party may change this information by giving five (5) Business Days written notice prior to the effective date of the change. 10. Signatures. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly, authorized representatives. Park LW Name: Date: 7 Name: Title: Manager, Grid' Operations:_ Idaho Power COmpany, Delivery Date: 9/z 3/ , Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Idaho Power Company Generator Interconnection Agreement # 155 & 299 LP.IJ.C. No. 29, Tariff No. 101 Pane 1 of 2 Attachment 1 Description and Costs of the Generation Facility, Interconnection Facilities and Metering Equipment In this attachment the Generation Facility and Interconnection Facilities, including Special Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company. As provided in Schedule 72, Payment For lnferconneqtion FaciIities the Company will provide a best estimate itemized cost of its Interconnection Facilities, including Special Facilities, upgrades and Metering Equipment. General Facility Description Interconnection Service will be provided at 12.5 kV for the integration of the Golden Valley Wind Farm Project. The proposed generation project will consist of replacing 2 distribution circuit breakers at Idaho Power company's Golden Valley Substation, reconductoring the existing GNVY-01 3 distribution feeder, and installing interconnection facilities for the wind farm in Cassia County, Idaho. Idaho Power will install and own the interconnection facilities and tie to Idaho Power Company's GNVY- 013 distribution feeder. The Seller will install and own the wire from the X-10 structure to the wind farm. See single line drawing included as Attachment 2. The total project output is 12 MW. Interconnection Point The Interconnection Point for the Golden Valley Wind Project will be the generator side of Idaho Power Company's X-10 disconnect switches on Idaho Power Company's 12.5 kV (GNVY-013) distribution line, in Cassia County. Idaho (near Township 11 South, Range 22 East, Sections 29 and 32). A drawing identifying the Interconnection Point is included as Attachment 2. Seller's interconnection Facilities The Seller will install the distribution circuits to the wind park and generation facilities for Golden Valley Wind Park. All interconnection equipment electrically located on the generator side of the interconnection point shall be owned and maintained by the Seller. Other Facilities Provided by Seller Telecommunications The Seller will install two communication circuits between the interconnection site and a location, or locations, specified by Idaho Power Company. One of the circuits will be a dedicated 4-wire leased analog circuit connected to the SEL 311C relay and the other will be a POTS dial-up circuit to the revenue meters The Seller is responsible for supplying and coordinating the installation of the phone lines and paying the monthly service charges. The communication circuits will need to be installedand operational prior to generating into the Idaho Power system. Property, Site Work and Station Building The Seller. will clear, the area of all vegetation and level the area where Idaho Power's interconnection equipment will be instalIed Seller will make sum this area will be kept clear of weeds and vegetation throughout the lifeof the project Easementsand:Rightof Way, The Sellerwill provide an easement(10fset; 5 feet on each side ofthe centerline) forthe new distribution interconnection facilities being installed for the project Idaho Power Company's Interconnection Facilities Idaho Power Company will install a tap to the Golden Valley 013 distribution line with 2 disconnect switches, 12.5 kV recloser, and associated relay and metering equipment in the substation yard to the Interconnection Point for the generator facility. See attached single line drawing. Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 Idaho Power Company Generator Interconnection Agreement # 155 & 299 IP.U.C. No. 29, Tariff No. 101 Pac*e.2of2 Idaho Power will install a standard generation interconnection package in line with the existing distribution feeder. The new interconnection package will include four (4) distribution poles to mount a local service transformer, solid blade disconnects primary metering package recloser, relays fuses and riser necessary for the package. The interconnection will be controlled by a SEL-311C line protection relay. Idaho Power will provide an interconnection point -for an overhead • connection to the wind farm on the last pole containing the X-1 0 disconnect switches. If desired by customer, a 2" conduit Will be installed alongside the underground primary to facilitate information exchange to the customer about the recloser. (The Seller is responsible for providing and installing the appropriate cable and conduit.) All interconnection equipment electrically located on the utility side of the interconnection point shall be owned, operated, and maintained by Idaho Power Company. Estimated Cost & Ownershie (in 2008 dollars) Description Owner Estimated lCost Generation Facilities ___________ Golden Valley Wind Park ISeller Nil Interconnection Facilities 12.5 kV Interconnection Facility [company $145,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Milestones (not includina the Network Uoarades for the Joint Study Group) 6 iUlmtrnr Construction Funds Received by IPC 1115110 Interconnection Facility Commissioning-Completefor-Reduced:Generation Output of up to 6-MW 1115111 IPCO Construction complete 2/1/Il IPCO Commissioning complete Idaho Power Company Generator Interconnection Agreement U 155 & 299 LP.U.C. No. 29, Tariff No. 101 Page 1 of I Attachment 3 Agreed to by: For the Interconnection Customer For the Transmission Provider Idaho Power Company, Delivery Exhibit 2116 GNR-E--1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Idaho Power Company Generator Interconnection Agreement # 155 & 299 I.P.U.C. No. 29, Tariff No. 101 Paae 1 of 2 Attachment 4 Additional Operating Requirements for the Company's Transmission System and Affected Systems Needed to. Support, the Seller's Needs The Company shall also provide requirementsthat must be met by the Seller prior to initiating parallel operation , with the Company's Transmission System. Operating Requirements The project is required to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they may be updated from time to time. Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with no impact upon the operation of the distribution system whenever the generation facilities are electrically isolated from the distribution system via the R-9 Recloser and the X-10 disconnect switches and a terminal clearance is issued by Idaho Power Company's Grid Operator. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. It is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. Low Voltage Ride Through The project shall remain interconnected upon the occurrence of a three phase or single phase to ground fault down to a voltage of zero at locations on Idaho Power's system as close to the interconnection customer's facilities as Idaho Power Company's Golden Valley Substation prior to the fault being cleared for the minimum times stated below before tripping off-line: • Three phase fault: Normal clearing that takes up to 9 cycles. • Single phase to ground fault: Delayed clearing that takes up to 50 cycles. Ground FaultEquipment The Seller will install transformer configurations that will limit the contributionof ground fault current to 20 amps or less Commercial Operation Requirements The Seller will be granted a requested Commercial Operation Date only when all requirements have been met under this G1A and Idaho Power Company's Power- Sales Agreement A transmission service request- ('TSR") for this generation has been submitted to Idaho Power Company's Grid Operations group under TSR 72734375. Generator -Output -Limit. Control ('Re-dispatch" or "GOLC") The Golden Valley Wind Project will be allowed- to deliver the net' output - Of 11.52- MW at the Interconnection Point-subject-tO reductions directed by- Company. Grid Operationsduring- transmission system- contingencies. until-the Generator- Output Limit Control ('GOLC) is-tested and in operation. The Seller has , elected.to be- subject; to GOLC under Idaho Public Utility Commission ('iPUc"). Order No. IPcE06;21c Once: the: GoldenVaIley Wind- Project is- in- operation, it; willbe- able- to generate up to rated; net*, output;of- 1:1.62 MWsubject- to. the provisions-of lPUCOrderNo IPC-E-06-21 and: Exhibit C below, referenced by- that Order. The following Exhibit; C --is included- herein from the Company's Joint Motion to Approve Stipulation and to Dismiss Complaint dated June 13, 2007 in IPUC Case No. IPC-E- 06-21 - Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 Idaho Power Company Generator Interconnection Agreement #155 & 209 I.P.U.C. No. 29, Tariff No. 101 Pace 2pi2 Exhibit C The following Idaho Power Network transmission facilities have been identified to be affected by the addition of the Requesting Projects in the Twin Falls area. An outage of any of these facilities may result in overloads on the remaining facilities. Such outages may require the initiation of Cassia Redispatch (also Generation Output Limit Control). Boise Bench - Midpoint 230 K transmission tine Boise Bench - Rattle Snake 230 K transmission line Rattle Snake - Midpoint 230 KV transmission line Dram - Midpoint 230 KV transmission tine Hubbard - Danskin 230 KV transmission line King 1381230 KV transformer Danskin - Mountain Home Junction 138 K transmission line Upper Salmon - Mountain Home Junction 138 KV transmission line Lower Malad - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 K line reactor Lower Malad - Mountain Home Junction 138 KV line reactor Lucky Peak - Mountain Home Junction 138 KV line reactor Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power Company Generator Interconnection Agreement # 155 & 299 J.P.U.C. No. 29, Tariff No. 101 Page 1 of I Attachment 5 Reactive Power Requirements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided: by the Seller. The Company will specify the equipment required' on the company's system to meet the Facility's reactive power. requirements; These specifications will include but not be limited to equipment specifications, equipment location, Gompany- provided equipment. Seller provided equipment, and all costs associated with the equipment, design and installation of the Company-provided equipment. The equipment specifications and requirements will become an integral part of this Agreement. The Company-owned equipment will be maintained by the Company, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. The project must be controlled to operate at unity power factor. Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Idaho Power Company Generator Interconnection Agreement # 155 & 299 I.P.U.C. No. 29, Tariff No. 101 Page 1 of 4 Attachment 6 Company's Description of Special Facilities and Uxades Required to Integrate the Generation Facility and Best Estimate of Costs As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including Network Upgrades, and provides an-itemized best estimate of the cost of the required facilities Distribution Upgrades The proposed project will consist of replacing 2 distribution circuit breakers at Idaho Power Company's Golden Valley Substation, reconductoring the existing GNVY013 distribution feeder, and installing interconnection facilities. olden Valley Substation Breaker Replacement lCompany $178,000 Upgrade GNW-013 Distribution Feeder Company $150,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Transmission Network Upgrades Network Upgrades for this project were detailed in a separate Facility Study Report for the Joint Study Group identified in the March 14, 2008 System Impact Study Report (SISR) for up to 353 MW of New Generation on the 138kV Transmission System in the Twin Falls Area. 1) Regulatory Requirements: A.A number of generation projects seeking Network Resource Interconnection Service, (as that term is defined in FERC Order 2003 and the Company's FERC approved Open Access Transmission Tariff ("OATT")) including the Generation Facility, propose to interconnect to the portion of the Company's transmission system is located in the Twin Falls. Idaho geographic area, and have submitted interconnection requests to the Company during the period January 1, 2005 through October 1, 2007 (collectively, the Requests" or 'Requesting Projects"). B.In accordance with FERC Order 2003, the Company's OATT, Commission Order No. 30414 and in the interest of maintaining comparability and economic efficiency in responding to the Requests, the Company has established 'JointStudy Group One (1)" for the Requesting Projects. C Seller is ready and willing to start immediate construction of the Generation Facility. Oneor.-more Requesting Projects which precede or follow Seller in the Joint Study Group One are not: yet-prepared for immediate construction or.may not be constructed -at-all. 2) Generation OutputUrnitConttok The Generator- Facility isa-PURPAQF. Seller will ; at its- sole: expense install operate and- maintain: the equipment and- communications facilities necessary to. enable the- Generation: Facility to reduce-its: Maximum: Hourly Output- to a not-to-exceed' set point; within ten (10) minutes of when the Company calls for the reduction. The Company- will specify- the set- point when it: notifies Seller of tile need; to initiate Generation Output Limit Control. GéneretlOnr OUtput Limit- Control cannot- be used to increase the: Generation Facility's output above such:MaximumHourIyOutputforthenexistingtiJrbineand;windconditIons; Seller wiIlnormaUy subjecti to- those: condltions seek to maximize- the- energy- output: of the Generation Facilityi. but Generation. Output Limit Control will limit the output of the Generation Facility whenever the Maximum Hourly Output level would otherwise exceed the required set point in any scheduling hour. Seller has elected to be subject to Generation Output Limit Control. 3) Cost Risk for Network Upgrades: Network Upgrade costs will be allocated to each Requesting Project, including the Generation Facility, based on: a) their election of whether to be Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 Idaho Power Company Generator Interconnection Agreement # 155 & 299 l.P.U.C. No. 29. Tariff No. 101 Paae2of4 subject to Generation Output Limit Control, b) their order in the Joint Study Group One, and c) based on the megawatt interconnection capacity of each Requesting Project their prorata share of the cost for the Network Upgrade required to interconnect one or more Requesting Project and the added interconnection capacity of that particular Network Upgrade The Seller will pay non reimbursed amounts of no more than 25% of the actual as-constructed cost of the Generator Facilities currently- allocated share of the Network Upgrades required to interconnect the Generation Facility without Generation Output Limit Control (see paragraph 6 below - Sharing of Network Upgrade Costs. 4)Generation Output Limit Control Rights: The Company may issue a set point or limit and initiate Generation Output Limit Control to respond to transmission system emergencies or respond to circumstances where the transmission line(s) identified in Commission Order No 30414 are out of service and for which Generation Output Limit Control was determined necessary and did lower the amount of Network Upgrade cost obligation to the Generation Facility. In most circumstances, Generation Output Limit Control will not be required when all the lines specified in Commission Order No. 30414 are in service. Any use of Generation Output Limit Control to establish a set point below the Generation Facility's capacity shall be pro-rata with other Requesting Projects subject to Generation Output Limit Control. The Company will not purchase or pay for energy which would have been produced by the Generation Facility, but for operation of Generation Output Limit Control. 5)Responsibility for Network Upgrade Costs; In addition to funding all costs of directly interconnecting the Generation Facility to the Company's system, the Seller will pay its pro-rota share of the Network Upgrade costs actually incurred by the Company to provide firm Network Resource Interconnection Service to the Generation Facility but the Generation Facility shall not be obligated to share the on-going operation and maintenance costs of such Network Upgrades. Seller recognizes that the final cost of its share of the Network Upgrades will not be known until construction is completed. The Seller also recognizes that its share of the final Network Upgrade cost will increase or decrease, subject to the provisions of paragraph 8, depending on whether other Requesting Projects, both earlier and later in the Joint Study Group One are constructed. 6)Sharing of Network Upgrade Costs: A. The Seller and the Company will share the five phases of Network Upgrade costs attributable to the Generation Facility as follows: 11 Phase 1: the Company Will assume 100% cost responsibilityfor Phase 1 and include this cost in its rate base. 2. Phases 2, 3,4 and 5: (a)25% of the costs will be provided by the Generation Facility as a non-refundable contribution in aid of construction (CtAC"). (b)25% of thecosts will be funded by the Company andincludedin the Company's rate base. (C): 500/6 of the costs will: be: funded by Generation Facility as an advance in aid of: construction CAM") subject to refund: as provided , in paragraph below As refunds are made, the refunded amounts will be included in rate base using standard regulatory accounting principles. B. As projects in the Joint Study Group One are interconnected, the Company will reallocate the CIAC and AIAC portions of the costs of Phases 2 through 5. For example, when additional projects in the Joint Study Group One are constructed alter the Generation Facility is Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 Idaho Power Company Generator Interconnection Agreement #155 & 299 LP.U.C. No. 29. Tariff No. 101 Page 3 of 4 constructed, the Company will collect monies from these subsequent projects and refund monies to Seller. It is the Company's intent that each QF Project in the Joint Study Group One will pay its respective pro-rata share, based on nameplate generation capacity, of each phase of the Network Upgrade they utilize. Tables 8-7, 8, 9 and 10 in the Settlement Stipulation adopted in Commission Order No. 30414 illustrate how this re-allocation would occur on a hypothetical basis. 7)Refund Provisions; The Seller will be entitled-to a cash repayment, in monthly, equal installments, for the total AIAC amount the Seller advances to the Company for Network Upgrades, including any tax gross-up or other tax related payments associated with the AIAC for Network Upgrades. Repayment will be made in accordance with Article. 11.4 of the Large Generator Interconnection Agreement ("LGIA") included in the Company's OATT and occur over a term not to exceed ten (10) years after the date the Generation Facility achieves commercial operation. Monthly repayments will be contingent on the FESA'S being in good standing (no uncured defaults) and upon the Generation Facility achieving a mechanical availability in that month in excess of 50%, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month. In computing the mechanical availability, the capacity available in each hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is defined in the FESA) or a reduction in generation due to Generation Output Limit Control required by the Company as described in paragraphs 2 and 4. 8)Interest on Refunds: Monthly refund payments on AIAC amounts shall include interest calculated in accordance with the methodology set forth in FERC regulations at 18 C.F.R. 35.19a(a)(2Xi0) from the date of any payment for Network Upgrades through the date on which Seller receives final repayment. 9)Security for Payment: Until it is finally determined which of the Projects in the Joint Study Group One will be constructed and interconnected and the final cost of those interconnections is determined, upon execution of this Interconnection Agreement Seller will provide and maintain a cash escrow or a letter of credit to the Company in a form and by an issuer satisfactory to the Company as security for payment, initially in the amount of the Generator Facility's allocation of Network Upgrade costs as provided herein and adjusted from time to time pursuant to the status of the Requests. The total security amount at any time will not exceed the amount that would be owed if the Requests then remaining in the Joint Study Group One that are scheduled for construction later than the Generation Facility is not constructed. Other QF participants in the Joint-Study Group One willbe held to a similar. requirement. 10)Generation Output Limit. Control Protocols: This Interconnection Agreement. addresses interconnection of the Generation Facility to the Company transmission system with Network Resource Interconnection Service. However, Seller acknowledges that, until sufficient Network Upgrades are installed to allow the Generation Facility to qualify for Network Resource Interconnection Service, the Generation Facility will be subject to Generation Output Limit Control- as described IA: paragraphs 2 and 4. 11)Network Upqçade Cost Determination: Network Upgrade costs, allOcated to the Generation Facility fOr- initial- funding, wiWbe determined in a- comparable manner andwith the same criteria used- by the Company when studying the -interconnection of;other generation i whose:outØut:can be chenged-withinten-(10) minutes, atother locations'-on its-transmission systemz Upon.requestibythe Generation Facility, the Company will provide a written explanation of the methods and assumptions leading to any such allocation of Network Upgrade cost obligation to the Generation Facility. 12)Request Uncertainty: The Company will follow good utility practice, the LGIP and SGIP, and all Commission orders in processing the Joint Study Group One within Idaho Power Company's Generator Interconnection Queue, Any Requests that fail to meet those requirements to Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power Company Generator Interconnection Agreement # 155 & 299 I.P.U.C. No. 29 Tariff No. 101 Page. 4of 4: remain in the Joint Study Group One, or fail to proceed to construct their interconnection or fail to initially fund or secure their allocated share of the Network Upgrade costs, will forfeit their position in the Idaho Power Company Generator Interconnection Queue and their rights to the interconnection and transmission system capacity associated with their Request. 13)Generation. Facility Responsibility. for Network Upgrade. Costs* The Company will initially and throughout the life, of the Generation Facility, consistent: with.good.utility practice, detemilne the least costs solution, given the current status of the Requests in the Joint Study Group One thatwill result in the lowest reasonable allocation of initial funding responsibility for Network Upgrades to the Generation Facility. The Company will apply the same criteria to all Projects in the Joint Study Group One. 14)Seller Construction Responsibility Transmission Network Upgrades (described in Section C below): nrnnnn Ownershio Estimated Cost Phase 5 transmission network upgrades under the Joint System impact Study Report IPC $685,87 Total $685,875 C. Allocation of Transmission Network Upgrade Costs Seller and Idaho Power will share the actual Network Upgrade costs attributable to the project as follows: -1. 25% of the costs will be provided by Seller as a non-refundable contribution in aid of construction ('ClAC"). 2 25% of the costs will be funded by Idaho Power and included in Idaho Power's rate base. 3. 50% of the costs will be funded by Seller as an advance in aid of construction (AlAC) subject. to refundi As refunds are made the refunded amounts will be included, in. rate base using. standard regulatory accounting principles. I Company: Costs (25%) $171 ,468.75 Non-reimbursable CIAC Costs (25% $171,468,75 [ Reimbursable AIAC Costs (50%) $342,937.501 The final cost will be allocated to the participants remaining in Joint Study Group One upon completion of the project. Exhibit 2116 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 Idaho Power Company Generator Interconnection Agreement # 157 IP.U.C. No. 29, Tariff No. 101 GENERATOR INTERCONNECTION AGREEMENT Schedule 72 Milner Dam Wind Park Project #157 19.92 MW Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29, Tariff No. 101 Pane 1 of 1 TABLE OF CONTENTS RECITALS............................................................................................................................. ................. 1 AGREEMENTS...................................................................................................................................... I 1.Capitalized Terms................................................................................................................1 2.Terms and Conditions..........................................................................................................1 3.This Agreement is not an agreement to purchase Seller's power . ........................................ 1 4.Attachments.........................................................................................................................1 5.Effective Date, Tern,, Termination and Disconnection :......................................................... 1 5.1 Term of Agreement...... ................................................... ..................................................... 2 5.2 Termination . ......................................................................................................................... 2 5.3 Temporary Disconnection ..................................................................................................... 2 6.Assignment, Liability, Indemnity. Force majeure, Consequential Damages and Default . ...... 5 7.Insurance . ......................................................................................................................... ...7 8.Miscellaneous . ..................................................................................................................... 7 9.Notices . ................................................................................................................................ 8 10.Signatures. ........................................................................................................................... 9 Attachment1 ..........................................................................................................................................I Attachment2..........................................................................................................................................1 Attachment3..........................................................................................................................................1 Attachment4..........................................................................................................................................I Attachment5..........................................................................................................................................I Attachment6..........................................................................................................................................I Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 Idaho Power Company Generator Interconnection Agreement # 157 I.P.U.C. No. 29, Tariff No. 101 Pane 1 of 9 This Generator interconnection Agreement ("Agreement') under Idaho Power Company's Schedule 72 is effective as of the day of September, 2010 between Idaho Power Company - Delivery ("Company" or "Transmission Owner") and Milner Dam Wind Park, LL C, an Idaho Limited Liability Company, ("Seller" or "Interconnection Customer"). RECITALS A.Seller will own or operate Generation Facilities that qualify for service under Idaho Power's Commission-approved Schedule 72 and any successor schedule. B.The Generation Facilities covered by this Agreement are more particularly described in Attachment 1. AGREEMENTS 1.Capitalized Terms Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement. 2.Terms and Conditions This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Seller's Generation Facilities will interconnect with, and operate in parallel with, the Company's transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72, Schedule 72 shall prevail 3.This Agreement is not an agreement to purchase Seller's power. Purchase of Seller's power and other services that Seller may require will be covered under separate agreements. Nothing in this Agreement is intended to affect any other agreement between the Company and Seller. 4.Attachments Attached to this Agreement and included by reference are the following: Attachment I - Description and Costs of the Generation Facilities, Interconnection Facilities, and Metering Equipment. Attachment 2 - One-line Diagram Depicting the Generation Facilities, Interconnection Facilities, Metering Equipment and Upgrades. Attachment 3— Milestones For Interconnecting the Generation Facilities. Attachment 4 - Additional Operating Requirements for the Company's Transmission System Needed to Support the Seller's Generation Facilities. Attachment 5— Reactive Power. Attachment 6 - Description of Upgrades required to integrate the Generation Facilities and Best Estimate of Upgrade Costs. 5, Effective Date, Term, Termination and Disconnection. Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29, Tariff No. 101 Page 2 of 9 5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions of this Agreement, this Agreement shall become effective on the date specified above and remain effective as long as Seller's Generation Facilities are eligible for service under Schedule 72. 5.2 Termination. 5.2.1 Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. 5.2.2 After a Default, either Party may terminate this Agreement pursuant to Section 6.5. 5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation Facilities will be disconnected from the Company's transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination. The provisions of this Section shall survive termination or expiration of this Agreement. 5.3 Temporary Disconnection. Temporary disconnection shall continue only for so long as reasonably necessary under "Good Utility Practice." Good Utility Practice means 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 reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by the power purchase agreement. 5.31 Emergency Conditions. "Emergency Condition" means a condition or situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (2) that, in the case of the Company, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to the Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in a non- discriminatory manner) to cause a material adverse effect on the reliability and security of, or damage to, the Generation Facilities or the Seller's Interconnection Facilities. Under Emergency Conditions, either the Company or the Seller may immediately suspend interconnection service and temporarily disconnect the Generation Facilities. The Company shall notify the Seller promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller's operation of the Generation Facilities. The Seller shall notify the Company promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Company's equipment or service to the Company's customers. To the extent information is known, the notification shall describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action. Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29, Tariff No. 101 Page 3 of 9 5.3.2 Routine Maintenance, Construction, and Repair. The Company may interrupt interconnection service or curtail the output of the Seller's Generation Facilities and temporarily disconnect the Generation Facilities from the Company's transmission/distribution system when necessary for routine maintenance, construction, and repairs on the Company's transmission/distribution system. The Company will make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events, the Company may not be able to provide notice to the Seller prior to interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 5.3.4. Maintenance Coordination. The Seller and the Company shall, to the extent practical, coordinate their respective transmission/distribution system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facilities and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. 5.3.5 Forced Outages. During any forced outage, the Company may suspend interconnection service to effect immediate repairs on the Company's transmission/distribution system. The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not given, the Company shall, upon request, provide the Seller written documentation after the fact explaining the circumstances of the disconnection. 5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon as practicable 11 based on Good Utility Practice, operation of the Seller's Generation Facilities may cause disruption or deterioration of service to other customers served from the same electric system, or if operating the Generation Facilities could cause damage to the Company's transmission/distribution system or other affected systems. Supporting documentation used to reach the decision to disconnect shall be provided to the Seller upon request. If, after notice, the Seller fails to remedy the adverse operating effect within a reasonable time, the Company may disconnect the Generation Facilities. The Company shall provide the Seller with reasonable notice of such disconnection, unless the provisions of Article 5.3.1 apply. 5.3.7 Modification of the Generation Facilities. The Seller must receive written authorization from the Company before making any change to the Generation Facilities that may have a material impact on the safety or reliability of the Company's transmission/distribution system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Utility Practice. If the Seller makes Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 Idaho Power Company Generator Interconnection Agreement # 157 I.P.U.C. No. 29. Tariff No. 101 Paae 4 of 9 such modification without the Company's prior written authorization, the latter shall have the right to temporarily disconnect the Generation Facilities. 5.3.8 Reconnection. The Parties shall cooperate with each other to restore the Generation Facilities, Interconnection Facilities, and the Company's transmission/distribution system to their normal operating state as soon as reasonably practicable following a temporary disconnection. 5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the interconnection Point, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level. 5.4 Land Rights. 5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Powers Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. 5.4.2 Use of Public Rights-of-Way, The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4.2. 5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to Paragraph 5.4.2, attaching Seller's Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4.3. 5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in sub.stantk!Iy the same condition, both financially and electrically, as Se!!er existed prfrr Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Idaho Power Company Generator interconnection Agreement # 157 I.P.U.C. No. 29, Tariff No. 101 Page 5 of 9 to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility Practices, (2) equitably share the costs of installing, owning and operating jointly used facilities and rights-of-way; if the Parties are unable to agree on the method of apportioning these costs, the dispute will be submitted to the Commission for resolution and the decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an interconnection to Idaho Powers system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Paragraph 5.4. 6. Assignment, Liability, Indemnity. Force majeure. Consequential Damages and Default. 6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to object by the other Party; provided that: 6.1.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.2 The Seller shall have the right to contingently assign this Agreement, without the consent of the Company, for collateral security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment. 6.1.3 Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Seller. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. 6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from any act or omission in its performance of this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special, consequential, or punitive damages, except as authorized by this Agreement. 6.3 Indemnity. 6.3.1 This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in Article 6.2. 6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party. 6.3.3 If an indemnified 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 Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Idaho Power Company Generator Interconnection Agreement #157 I.P.U.C. No. 29,Tariff No. 101 Pacie6of9 reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim. Failure to defend is a Material Breach. 6.3.4 If an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery. 6.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party. 6.4 Force Maieure. As used in this Agreement, Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of the Company which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure. both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure. (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29, Tariff No. 101 Page 7 of 9 6.5 Default and Material Breaches. 65. I Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (a Default" or an Event of Default"), the nonde faulting Party shall cause notice in writing to be given to the defaulting Party, specifying the manner in which such default occurred. If the defaulting Party shall fail to cure such Default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the Default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do not apply to Defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 7. Insurance. During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 71 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 7.2 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 7.3 Seller to Provide Certificate of insurance. As required in Paragraph 7 herein and annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 7.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute grounds for a temporary disconnection under Section 5.3 and will be a Material Breach. 8. Miscellaneous. 8.1 Governing Law. The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard to its conflicts of law principles. 8.2 Salvage. No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Idaho Power Company Generator Interconnection Agreement # 157 LPU.C. No. 29, Tariff No. 101 Page 8 of 9 of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest warehouse, if the Interconnection Facilities will be removed. if Seller elects not to obtain ownership of the interconnection Facilities but instead wishes that Idaho Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. 9. Notices. 9.1 General. Unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement ("Notice") shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by first class mail, postage prepaid, to the person specified below: If to the Seller: Interconnection Customer: Idaho Wind Partners 1, LLC Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: steve.eisenberg@reunionpower.com If to the Company: Company: Idaho Power Company - Delivery Attention: Operations Manager 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-5669 Fax: 208-388-5504 9.2 Billing and Payment. Billings and payments shall be sent to the addresses set out below: If to the Seller: Idaho Wind Partners 1, LLC Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: steve.eisenberg@reunionpower.com Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 Idaho Power Company Generator Interconnection Agreement # 157 I.P.U.C. No. 29, Tariff No. 101 Page 9 of 9 If to the Company: Idaho Power Company - Delivery Attention: Corporate Cashier P.O. Box 447 Salt Lake City, Utah 84110-0447 Phone: 208-388-5697 Email: asloan©idahopower.com 9.3 Designated Operating Representative. The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the administration of this Agreement. This person will also servo as the point of contact with respect to operations and maintenance of the Party's facilities. Seller's Operating Representative: Idaho Wind Partners 1, LLC do RP Operations Company, LLC Attention: General Manager Address: Alan Drive Jerome, ID 83338 Phone: Fax: Company's Operating Representative: Idaho Power Company - Delivery Attention: Regional Outage Coordinator - Regional Dispatch 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-2633, 388-5125, or 388-5175 during regular business hours (after hours Southern Region 208-388-5190). 9.5 Changes to the Notice Information. Either Party may change this information by giving five (5) Business Days written notice prior to the effective date of the change. 10. Signatures. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives. FortheSeller, 5J1áejD p?,Wind Park, LLC Name: ,474 Title: /'-161itAf Date: For 6oipai, Name: (A J4i/ Title: Manager, Grid Operations - Idaho Power Company, Delivery Date: Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Idaho Power Company Generator Interconnection Agreement # 157 I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2 Attachment I Description and Costs of the Generation Facility, Interconnection Facilities and Metering Equipment In this attachment the Generation Facility and Interconnection Facilities, including Special Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company. As provided in Schedule 72, Payment For Interconnection Facilities, the Company will provide a best estimate itemized cost of its Interconnection Facilities, including Special Facilities, upgrades and Metering Equipment. General Facility Description The proposed project will consist of adding a new 138134.5 kV 22.4MVA transformer at Milner Substation. Capacity at the substation will be increased by adding this new 138/34.5 kV transformer into an existing bay and opening the station bus so that only the feeder with the wind park is on this transformer. Five miles of distribution and two miles of transmission will be rebuilt to accommodate the new generation. Interconnection facilities will be added to connect the wind farm to the Idaho Power Company's 34.5 kV (Milner 043) distribution circuit. The existing distribution feeder serving this area is MLNR-043. Three miles of this feeder are underbuilt on existing transmission lines. Two miles of the transmission lines needs to be rebuilt to accommodate the larger distribution conductor. Five miles of MLNR-043 feeder will be reconductored with 336AA conductor. The interconnection facilities include 2 disconnect switches, a local service transformer, recloser, metering, and relaying. The total generation output is 19.92 MW. Interconnection Point The Interconnection Point for the Milner Darn Wind Farm Project will be the generator side of Idaho Power Company's X-83 disconnect switches located at the interconnection site. The project's location is NE /4 Section 17, TI1S R21E, Cassia County, Idaho. A drawing identifying the Interconnection Point is included as Attachment 2. Seller's Interconnection Facilities Seller will build an overhead distribution circuit connection to the Interconnection Point for the generator facility. All interconnection equipment electrically located on the generator side of the interconnection point shall be owned and maintained by the Seller. Other Facilities Provided by Seller Telecommunications The Seller will install two communication circuits between the interconnection site and a location, or locations, specified by Idaho Power Company. One of the circuits will be a dedicated 4-wire leased analog circuit connected to the SEL 311 C relay and the other will be a POTS dial-up circuit to the revenue meter. The Seller is responsible for supplying and coordinating the installation of the phone lines and paying the monthly service charges. The communication circuits will need to be installed and operational prior to generating into the Idaho Power system. Property, Site Work and Station Building The Seller will clear the area of all vegetation and level the area where Idaho Power's interconnection equipment will be installed. Seller will make sure this area will be kept clear of weeds and vegetation throughout the life of the project. Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29, Tariff No. ioi Page 2 of 2 Easements and Right of Way The Seller will provide an easement (10 feet 5 feet on each side of the centerline) for the new distribution interconnection facilities being installed for the project. Metering As shown on the Milner Dam Wind Park Generation Single Line diagram in Attachment 2, Idaho Power Company will install bi-directional revenue grade 12.5 kV metering for the Milner Dam Wind Park Project, to determine real time kilowatt, kilovar, and voltage and accumulated kilowatt hour and kilovar hour billing quantities in each direction at the Interconnection Point. Idaho Power Company's Interconnection Facilities Idaho Power Company will install a tap to the Milner 043 distribution line with 2 disconnect switches, recloser, and associated relay and metering equipment in the substation yard to the Interconnection Point for the generator facility. See attached single line drawing. Idaho Power will install a standard generation interconnection package in line with the existing distribution feeder. The new interconnection package will include four (4) distribution poles to mount a local service transformer, solid blade disconnects, primary metering package, recloser, relays, fuses, and riser necessary for the package. The interconnection will be controlled by a SEL-311C line protection relay. All interconnection equipment electrically located on the utility side of the Interconnection Point shall be owned, operated, and maintained by Idaho Power Company. Estimated Cost & Ownership (in 2009 dollars) Description Owner Estimated Cost Generation Facilities Milner Dam Wind Park Seller NI/ Interconnection Facilities, including metering IPC $145,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 Attachment 3 Milestones (not includina the Network Upgrades for the Joint Study Group) Date 7120/10 Ill (our Construction Funds Received by IPC 11/19/10 Interconnection Facility Commissioning Complete for Reduced Generation Output of up to 6 M 4/15/11 IPCO Construction Complete 5111I1 IPCO Commissioning Complete Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 28, Tariff No. 101 Page 1 of I Agreed to by: For the Interconnection Customer For the Transmission Provider Idaho Power Company, Delivery Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Idaho Power Company Generator Interconnection Agreement # 157 I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2 Attachment 4 Additional Operating Requirements for the Company's Transmission System and Affected Systems Needed to Support the Seller's Needs The Company shall also provide requirements that must be met by the Seller prior to initiating parallel operation with the Company's Transmission System Operating Requirements The project is required to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they may be updated from time to time. Seller will be able to modify power plant facilities on the generator side of the Point of Interconnection with no impact upon the operation of the transmission system whenever the generation facilities are electrically isolated from the transmission system via Idaho Power Company's X-83 disconnect switches and a terminal clearance is issued by Idaho Power Company's Grid Operator. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. It is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. Low Voltage Ride Through The project shall remain interconnected upon the occurrence of a three phase or single phase to ground fault down to a voltage of zero at locations on Idaho Power's system as close to the interconnection customer's facilities as Idaho Power Company's Milner Substation prior to the fault being cleared for the minimum times stated below before tripping off-line: • Three phase fault: Normal clearing that takes up to 9 cycles. • Single phase to ground fault: Delayed clearing that takes up to 50 cycles. Ground Fault Equipment The Seller will install transformer configurations that will limit the contribution of ground fault current to 20 amps or less. Commercial Operation Requirements The Seller will be granted a requested Commercial Operation Date only when all requirements have been met under this GIA and Idaho Power Company's Power sales Agreement. A transmission service request ("TSR") for this generation has been submitted to Idaho Power Company's Grid Operations group under TSR 72734375. Generator Output Limit Control ("Re-dispatch" or "GOLC'9 The Milner Dam Wind Project will be allowed to deliver the net output of 19.92 MW at the Interconnection Point subject to reductions directed by Idaho Power Company Grid Operations during transmission system contingencies until the Generator Output Limit Control ("GOLC") is tested and in operation. The Seller has elected to be subject to GOLC under Idaho Public Utility Commission ("IPUC") Order No. 1PC-E-06.21. Once the Milner Dam Wind Project is in operation, it will be able to generate up to rated net output of 19.92 MW subject to the provisions of IPUC Order No. IPC-E-06-21 and Exhibit C below referenced by that Order. The following Exhibit C is included herein from the Company's Joint Motion to Approve Stipulation and to Dismiss Complaint dated June 13, 2007 in IPUC Case No. IPC-E-06-21. Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 Idaho Power Company Generator Interconnection Agreement # 157 I.P.U.C. No. 29. Tariff No. 101 - Page 2 of 2 Exhibit C The following Idaho Power Network transmission facilities have been identified to be affected by the addition of the Requesting Projects in the Twin Falls area. An outage of any of these facilities may result in overloads on the remaining facilities. Such outages may require the initiation of Cassia Redispatch (also Generation Output Limit Control). Boise Bench - Midpoint 230 Ky transmission line Boise Bench - Rattle Snake 230 KV transmission line Rattle Snake - Midpoint 230 KV transmission line Dram - Midpoint 230 KV transmission line Hubbard - Danskin 230 KV transmission line King 138/230 KV transformer Danskin - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 KV transmission line Lower Malad - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 Ky line reactor Lower Malad - Mountain Home Junction 138 KV line reactor Lucky Peak - Mountain Home Junction 138 KV line reactor Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 28, Tariff No. 101 Page 1 of 1 Attachment 5 Reactive Power Requirements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided by the Seller. The Company will specify the equipment required on the Company's system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Company- provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Company-provided equipment. The equipment specifications and requirements will become an integral part of this Agreement. The Company-owned equipment will be maintained by the Company, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. The project must be controlled to operate at unity power factor. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. It is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Idaho Power Company Generator Interconnection Agreement U 157 LP.U.C. No. 29, Tariff No. ioi Page 1 of 4 Attachment 6 Company's Description of Special Facilities and Up-grades Required to Integrate the Generation Facility and Best Estimate of Costs As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including Network Upgrades, and provides an itemized best estimate of the cost of the required facilities. Distribution Upgrades Install 22.4 MVA transformer at Mil ner Substation - IPC $715,000 Pole replacement to accommodate distribution conductor increase IPC $370,000 Rebuild 5miles of distribution (MLNR-043) to 336AA IPC $701,00 0 Transmission Network Upgrades Network Upgrades for this project were detailed in a separate Facility Study Report for the Joint Study Group identified in the March 14, 2008 System Impact Study Report (SISR) for up to 353 MW of New Generation on the 138kV Transmission System in the Twin Falls Area. 1) Regulatory Requirements: A.A number of generation projects seeking Network Resource Interconnection Service, (as that term is defined in FERC Order 2003 and the Company's FERC approved Open Access Transmission Tariff ("OATT")) including the Generation Facility, propose to interconnect to the portion of the Company's transmission system is located in the Twin Falls, Idaho geographic area, and have submitted interconnection requests to the Company during the period January 1, 2005 through October 1, 2007 (collectively, the "Requests" or "Requesting Projects"). B.In accordance with FERC Order 2003, the Company's OATT, Commission Order No. 30414 and in the interest of maintaining comparability and economic efficiency in responding to the Requests, the Company has established "Joint Study Group One (1)" for the Requesting Projects. C Seller is ready and willing to start immediate construction of the Generation Facility. One or more Requesting Projects which precede or follow Seller in the Joint Study Group One are not yet prepared for immediate construction or may not be constructed at all. 2) Generation Output Limit Control: The Generator Facility is a PURPA QF. Seller will, at its sole expense, install, operate and maintain the equipment and communications facilities necessary to enable the Generation Facility to reduce its Maximum Hourly Output to a not-to-exceed set point, within ten (10) minutes of when the Company calls for the reduction. The Company will specify the set point when it notifies Seller of the need to initiate Generation Output Limit Control. Generation Output Limit Control cannot be used to increase the Generation Facility's output above such Maximum Hourly Output for then existing turbine and wind conditions. Seller will normally, subject to those conditions, seek to maximize the energy output of the Generation Facility, but Generation Output Limit Control will limit the output of the Generation Facility whenever the Maximum Hourly Output level would otherwise exceed the required set point in any scheduling hour. Seller has elected to be subject to Generation Output Limit Control. 3) Cost Risk for Network Upgrades: Network Upgrade costs will be allocated to each Recjuestinq Proect. including the Generation Facility, based on: a) their election of whether to be subject to Generation Output Limit Control, b) their order in the Joint Study Group One, and c) based on the megawatt interconnection capacity of each Requesting Project, their prorate share of the cost for Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29, Tariff No. 101 Page 2 of 4 the Network Upgrade required to interconnect one or more Requesting Project and the added interconnection capacity of that particular Network Upgrade. The Seller will pay non-reimbursed amounts of no more than 25% of the actual as-constructed cost of the Generator Facilities currently- allocated share of the Network Upgrades required to interconnect the Generation Facility without Generation Output Limit Control (see paragraph 6 below - Sharing of Network Upgrade Costs. 4)Generation Output Limit Control Rights: The Company may issue a set point or limit and initiate Generation Output Limit Control to respond to transmission system emergencies, or respond to circumstances where the transmission line(s) identified in Commission Order No. 30414 are out of service and for which Generation Output Limit Control was determined necessary and did lower the amount of Network Upgrade cost obligation to the Generation Facility. In most circumstances, Generation Output Limit Control will not be required when all the lines specified in Commission Order No. 30414 are in service. Any use of Generation Output Limit Control to establish a set point below the Generation Facility's capacity shall be pro-rata with other Requesting Projects subject to Generation Output Limit Control. The Company will not purchase or pay for energy which would have been produced by the Generation Facility, but for operation of Generation Output Limit Control. 5)Responsibility for Network Upgrade Costs: In addition to funding all costs of directly interconnecting the Generation Facility to the Company's system, the Seller will pay its pro-rata share of the Network Upgrade costs actually incurred by the Company to provide firm Network Resource Interconnection Service to the Generation Facility but the Generation Facility shall not be obligated to share the on-going operation and maintenance costs of such Network Upgrades. Seller recognizes that the final cost of its share of the Network Upgrades will not be known until construction is completed. The Seller also recognizes that its share of the final Network Upgrade cost will increase or decrease, subject to the provisions of paragraph 6, depending on whether other Requesting Projects, both earlier and later in the Joint Study Group One are constructed. 6)Sharing of Network Upgrade Costs: A. The Seller and the Company will share the five phases of Network Upgrade costs attributable to the Generation Facility as follows - 1 . Phase 1: the Company will assume 100% cost responsibility for Phase 1 and include this cost in its rate base. Phases 2, 3, 4 and 5: (a)25% of the costs will be provided by the Generation Facility as a non-refundable contribution in aid of construction ("CIAC"). (b)25% of the costs will be funded by the Company and included in the Company's rate base. (c)50% of the costs will be funded by Generation Facility as an advance in aid of construction ("AIAC") subject to refund as provided in paragraph 7 below. As refunds are made, the refunded amounts will be included in rate base using standard regulatory accounting principles. B. As projects in the Joint Study Group One are interconnected, the Company will reallocate the CIAC and AIAC portions of the costs of Phases 2 through 5. For example, when additional projects in the Joint Study Group One are constructed after the Generation Facility is constructed, the Company will collect monies from these subsequent projects and refund monies to Seller. It is the Company's intent that each QF Project in the Joint Study Group One will pay its Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 Idaho Power Company Generator Interconnection Agreement # 157 LP.U.C. No. 29. Tariff No. 101 Page 3 of 4 respective pro-rata share, based on nameplate generation capacity, of each phase of the Network Upgrade they utilize. Tables B-7, 8, 9 and 10 in the Settlement Stipulation adopted in Commission Order No. 30414 illustrate how this re-allocation would occur on a hypothetical basis. 7)Refund Provisions: The Seller will be entitled to a cash repayment, in monthly, equal installments, for the total AIAC amount the Seller advances to the Company for Network Upgrades, including any tax gross-up or other tax related payments associated with the AIAC for Network Upgrades. Repayment will be made in accordance with Article 11.4 of the Large Generator Interconnection Agreement ("LGIA") included in the Company's OATT and occur over a term not to exceed ten (10) years after the date the Generation Facility achieves commercial operation. Monthly repayments will be contingent on the FESA's being in good standing (no uncured defaults) and upon the Generation Facility achieving a mechanical availability in that month in excess of 50%, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month. In computing the mechanical availability, the capacity available in each hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is defined in the FESA) or a reduction in generation due to Generation Output Limit Control required by the Company as described in paragraphs 2 and 4. 8)Interest on Refunds: Monthly refund payments on AIAC amounts shall include interest calculated in accordance with the methodology set forth in FERC regulations at 18 C.F.R. 35.19a(a)(2)(iii) from the date of any payment for Network Upgrades through the date on which Seller receives final repayment. 9)Security for Payment: Until it is finally determined which of the Projects in the Joint Study Group One will be constructed and interconnected and the final cost of those interconnections is determined, upon execution of this Interconnection Agreement Seller will provide and maintain a cash escrow or a letter of credit to the Company in a form and by an issuer satisfactory to the Company as security for payment, initially in the amount of the Generator Facility's allocation of Network Upgrade costs as provided herein and adjusted from time to time pursuant to the status of the Requests. The total security amount at any time will not exceed the amount that would be owed if the Requests then remaining in the Joint Study Group One that are scheduled for construction later than the Generation Facility is not constructed. Other QF participants in the Joint Study Group One will be held to a similar requirement. 10)Generation Output Limit Control Protocols: This Interconnection Agreement addresses interconnection of the Generation Facility to the Company transmission system with Network Resource Interconnection Service. However, Seller acknowledges that, until sufficient Network Upgrades are installed to allow the Generation Facility to qualify for Network Resource Interconnection Service, the Generation Facility will be subject to Generation Output Limit Control as described in paragraphs 2 and 4. 11)Network Upgrade Cost Determination: Network Upgrade costs, allocated to the Generation Facility for initial funding, will be determined in a comparable manner and with the same criteria used by the Company when studying the interconnection of other generation, whose output can be changed within ten (10) minutes, at other locations on its transmission system. Upon request by the Generation Facility, the Company will provide a written explanation of the methods and assumptions leading to any such allocation of Network Upgrade cost obligation to the Generation Facility. 12)Request Uncertainty: The Company will follow good utility practice, the LGIP and SGIP, and all Commission orders in processing the Joint Study Group One within Idaho Power Company's Generator Interconnection Queue. Any Requests that fail to meet those requirements to remain in the Joint Study Group One, or fail to proceed to construct their interconnection or fall to initially fund or secure their allocated share of the Network Upgrade costs, will forfeit their position in the Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power Company Generator Interconnection Agreement # 157 IP.U.C. No. 29, Tariff No. 101 Page 4 of 4 Idaho Power Company Generator Interconnection Queue and their rights to the interconnection and transmission system capacity associated with their Request. 13)Generation Facility Responsibility for Network Upgrade Costs: The Company will initially and throughout the life of the Generation Facility, consistent with good utility practice, determine the least cost solution, given the current status of the Requests in the Joint Study Group One, that will result in the lowest reasonable allocation of initial funding responsibility for Network Upgrades to the Generation Facility. The Company will apply the same criteria to all Projects in the Joint Study Group One. 14)Seller Construction Responsibility Transmission Network Upgrades (described in Section C below): (rnrhin Fqtimc,tM (st Phase 5 transmission network upgrades under the Joint System Impact Study Report IPC $1,175,786.00 Total $1,175,786.00 The final cost will be allocated to the participants remaining in Joint Study Group One upon completion of the project. C. Allocation of Transmission Network Upgrade Costs Seller and Idaho Power will share the actual Network Upgrade costs attributable to the project as follows: 1.25% of the costs will be provided by Seller as a non-refundable contribution in aid of construction ("CIAC"). 2.25% of the costs will be funded by Idaho Power and included in Idaho Power's rate base. 3.50% of the costs will be funded by Seller as an advance in aid of construction ("AIAC") subject to refund., As refunds are made the refunded amounts will be included in rate base using standard regulatory accounting principles. Company Costs (25%) $293,946.50 Non-reimbursable CIAC Costs (25% $293,946.50 Reimbursable AIAC Costs (50%) $587,893.00 Exhibit 2117 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 Idaho Power Company Generator Interconnection Agreement # 159 & 300 I.P.U.0 No. 29, Tariff No. 101 GENERATOR INTERCONNECTION. AGREEMENT Schedule 72 SALMON FALLS WIND PARK Projects # 159 & 300' 21 MW' Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 Idaho Power Company Generator interconnection Agreement #159 & 300 LP.U.C. No. 29, Tariff No. 101 Paae I of I TABLE OF CONTENTS tMt!Vi. ....................................................................................................................................... 1.capitalized Terms ............................... . .............. . ................................................................. I 2.Terms and Con ditions........................... ................................................................................ 1 1 This Agreement is not an agreement to purchase Seller's Power . ........................................ I 4.Attachments. ............................................................................. . ........................................... .I 5.Effective Date, Term, Termination and Disconnection. ....................................................... ..1 6.Assignment. Liability, Indemnity. Force male ure. Consequential Damages and Default ... .... .5 7.Insurance................................................................................................................................. 8.Miscellaneous.. .................................................................... . ................................. ...... .. ......... 7 9.Notices ............................................. ........................................................................... ........ 8 10.Signatures. ........... . ................................. ..... ...... ................................................................... 9 hrnentI...........................................................................................................................................1 ,ment2. .... .... ............................. ... ........ ........................................................................... .. ................ 1 rment3...................................................................................................................... ............... . ... ...I .i ment4..........................................................................................................................................1 iment5. .................... ............ ... ................................................................ ...... ............... ........... ..... .... ...1 20P1................................................................................................................................................1 Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 Idaho Power Company Generator Interconnection Agreement # 159 & 300 LP.U.C. No. 29, Tariff No. 101 Pafle I of 9 This Generator interconnection Agreement ("Agreement") under Idaho Power Company's Schedule 72 is effective as of the 6th day of October, 2010 between Idaho Power Company - Delivery (Company" or "Transmission Owner") and Salmon Falls Wind Park LLC an Idaho Limited Liability Company, (Seller or "Interconnection Customer") RECITALS A. Seller will own or operate a Generation Facility that qualifies for service under Idaho Power's Commission-approved Schedule 72 and any successor schedule. S. The Generation Facility covered by This Agreement J5 more particularly described in Attachment 1. AGREEMENTS 1.Capitalized Terms Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement 2.Terms and Conditions This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72, Schedule 72 shall prevail. 3.This Agreement is not an agreement to purchase Seller's power Purchase of Seller's power and other services that Seller may require will be covered under separate agreements Nothing in this Agreement is intended to affect any other agreement between the Company and Seller. 4.Attachments Attached to this Agreement and included by reference are the following Attachment: I - Description and Costs of the Generation Facility, Interconnection Facilities, and Metering Equipment. Attachment 2 - One-line Diagram Depicting the Generation Facility, Interconnection Facilities, Metering Equipment and Upgrades. Attachment 3— Milestones For Interconnecting the Generation Facility. Attachment 4 - Additional Operating Requirements for the Company's Transmission System Needed to Support the Seller's Generation Facility Attachment 5— Reactive Power. Attachment 6—Description of Upgrades required to integrate the GeneràtionFacility and Best Estimate of Upgrade Costs. 5 Effective Date, Term, Termination and Disconnection. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3 Idaho Power Company Generator Interconnection Agreement #159 & 300 LP.UC. No. 29, Tariff No 101 Paoe 2 of 9 51 Tern, of Agreement. Unless terminated earlier in accordance with the provisions of this Agreement this Agreement shall become effective on the date specified above and remain effective as long as Seller's Generation Facility is eligible for seivloe under Schedule 72- 5.2 Termination. 5.2.1 Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. 5.22 After a Default; either Party may terminate this Agreement pursuant to Section 65. 5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation Facility will be disconnected from the Company's transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination. The provisions of this Section shall survive termination or expiration of this Agreement. 5.3 Temporary Disconnection. Temporary disconnection shall continue only for so long as reasonably necessary under Good Utility Practice. Good Utility Practice means 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 reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by the power purchase agreement 5.3.1 Emergency Conditions. Emergency Condition means a condition or situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (2) that, in the case of the Company, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of or damage to the Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in a non- discriminatory manner) to cause a material adverse effect on the reliability and security of or damage to, the Generation Facility or the Seller's Interconnection Facilities. Under Emergency Conditions, either the Company or the Seller may immediately suspend Interconnection service and temporarily disconnect the Generation Facility. The Company shall notify the Seller promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller's operation of the Generation Facility. The Seller shall notify the Company promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Company's equipment or service to the Company's customers. To the extent information is known, the notification shall describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action 5.3.2 Routine Maintenance, Construction, and Repair. The Company may interrupt interconnection service or curtail the output of the Seller's Generation Facility and temporarily disconnect the Generation Facility from the Company s transm,ssmnld,stribubon system when necessary for routine maintenance construction and repairs on the Company's transmission/distribution system. The Company will Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 Idaho Power Company Generator Interconnection Agreement # 159 & 300 LP.U.C. No. 29, Tariff No. 101 Page 3019 make a reasonable attempt to contact the Seller prior to exercising Its rights to interrupt interconnection or curtail deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations of the electrical system, and/or unplanned events, the Company may not be able to provide notice to the Seller prior to interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 6. 3.3 Scheduled Maintenance. On or before January31 of each calendar year, Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 5.3.4. Maintenance Coordination. The Seller and the Company shall, to the extent practical, coordinate their respective transmission/distribution system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facility and Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annuaNyand Seller will pay the actual cost of such annual testing. 5.3.5 Forced Outages. During any forced outage, the Company may suspend interconnection service to effect immediate repairs on the Company's transmission/distribution system. The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not given, the Company shall, upon request, provide the Seller written documentation after the fact explaining the circumstances of the disconnection. 5.3.6 Adverse Operating Effects. The Company shall notify, the Seller as soon as practicable i1 based on Good Utility Practice, operation of the Seller's Generation Facility may cause disruption or deterioration of service to other customers served from the same electric system, or if operating the Generation Facility could cause damage to the Company's transmission/distribution system or other affected systems. Supporting documentation used to reach the decision to disconnect shall be provided to the Seller upon request. If, after notice, the Seller fails to remedy the adverse operating effect within a reasonable time, the Company may disconnect the Generation Facility. The Company shall provide the Seller with reasonable notice of such disconnection, unless the provisions of Article 5.3.1 apply. 5.3.7 Modification of the Generation Facility. The Seller must receive written authorization from the Company before making any change to the Generation Facility that may have a material impact on the safety or reliability of ther Company's transmission/distribution system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Utility Practice. If the Seller makes such modification without the Company's prior written authorization, the latter shall have the right to temporarily disconnect the Generation Facility. 5.3.8 Reconnection. The Parties .shall cooperate with each other to restore the Generation Facility Interconnection Facilities and the Company's transmiss,on/d,stnbution system to their normal operating state as soon as reasonably practicable following a temporary disconnection. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 Idaho Power Company Generator Interconnection Agreement # 159 & 300 I.P.UC. No. 29, Tariff No. 101 Page 4 o 9 5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the Seller, change its nominal operating voltage level by more than ten percent (10%) at the Interconnection Point, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary to accommodate the modified nominal operating voltage level, 5.4 Land Rights. 5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities necessary or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller warrants that it has procured sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access described above. All documents granting such easements or rights-of-way shall be subject to Idaho Power's approval and in recordable form. 5.4.2 Use of Public Rights-of-Way. The Parties agree that it is necessary to avoid the adverse environmental and operating impacts that would occur as a result of duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities upon, along and over any and all public roads, streets and highways, then the use by Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for construction and/or maintenance of electric distribution and transmission facilities and Idaho Power may claim use of such public right-of-way for such purposes at any time. Except as required by Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4.2. 5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along, over and above any public right-of-way acquired from Seller pursuant to Paragraph 5.4.2, attaching Seller's Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4.3. 54.4 conditions of Use. ltis the intention of the Parties that the Seller be left in substantially the same condition both financially and electrically as Seller existed prior to Idaho Powers exercising its rights under this Paragraph 54 Therefore the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 543 shall (1) comply with all applicable laws codes and Good Utility Practices (2) equitably share the costs of installing owning and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method of apportioning these costs the dispute will be submitted to the Commission for resolution and the decision of the Commission will be binding on the Parties and (3) shall provide Seller with an interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho Power exercising its rights under this Paragraph 5.4. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 Idaho Power Company Generator Interconnection Agreement #159 & 300 LPU.C. NO. 29, Tariff No. 101 Page 5:f 9 6. Assignment, Liability. Indemnity, Force majeure. consequential Damages and Default 6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to object by the other Party; provided that 64.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement 6.1.2 The Seller shall have the right to contingently, assign this Agreement, without the consent of the Company, for collateral security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment. 6.1.3 Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Seller. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed. 6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost, claim, Injury, liability, or expense, including reasonable attorney's fees, relating to or arising from any act or omission in its performance of this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special, consequential, or punitive damages, except as authorized by this Agreement. 6.3 Idernnitv 6.3.1 This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in Article 6.2. 6.32 The Parties shall at all times indemnify, defend, and hold the other Party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the Indemnified Party. 6.3.3 If an indemnified 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 reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim. Failure to defend is Material Breach 6.3.4 If an indemnifying party Is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified persons actual loss, net of any insurance or other recovery. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Idaho Power Company Generator Interconnection Agreement # 159 & 300 LP.U.C. No. 29, Tariff No. 101 Page 6 of 9 6.35 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party's indemnification obligation unless such failure or delay is matoneily prejudicial to the indemnifying party. 6.4 Farce Maieure. As used in this Agreement, Force Majeure or "an event of Force Majeure" means any cause beyond the control of the Seller or of the Company which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood; storms, wars, hostilitIes, civil strife, strikes and other labor disturbances, earthquakes, fires lightning, epidemics, sabotage, or changes in law or regulation occurring after the Operation Date, which, by the exercise of reasonable foresight such party could not reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Farce Majeure, both Parties shall be excused from whatever performance is affected by the event of Force Majeure, provided that (1)The non-performing Party shall, as soon as is reasonably possible after the occurrence of the Force Majeure, give the other Party written notice describing the particulars of the occurrence. (2)The suspension of performance shall be of no greater scope and of no longer duration than is required by the event of Force Majeure (3)No obligations of either Party which arose before the occurrence causing the suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 Idaho Power company Generator Interconnection Agreement #159 &:300 I.PJJ.C. No., 29, Tariff No. 101 PaQel of 9 65 Default and Material Breaches. 6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of this Agreement (a "Default' or an "Event of Default"), the nondefaulting Party shall cause notice In writing to be given to the defaulting Party, specifying the manner in which such default occurred If the defaulting Party shall fail to cure such Default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the Default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6,61 do not apply to Defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence of the breach. 7. Insurance. During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage. 7.1 Comprehensive General Liability Insurance for both bodily injury and property damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry UtIlity practices for similar property. 7.2 The above insurance coverage shall be placed with an insurance company with an A.M. Best Company rating of A- or better and shall include: (a)An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b)A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. 7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 7.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or replace the coverage will constitute grounds for a temporary disconnection under Section 5.3 and will be a Material Breach. a Miscellaneous. 8,1 Governing Law. The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard to its conflicts of law principles. 82 Salvage No later than sixty (60) days after the termination or expiration of this Agreement Idaho Power will prepare and forward to Seller an estimate of the remaining value of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or described in this Agreement less the cost of removal and transfer to Idaho Powers nearest Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 Idaho Power Company Generator Interconnection Agreement # 159 & 300 I P.U.C. No. 29 Tariff No. 101 Page 8 of 9 warehouse, if the Interconnection Facilities will be removed, if Seller elects not to obtain ownership of the Interconnection Facilities but instead wishes that Who Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice amount against any present or future payments due Idaho Power. 9. Notices. 9.1 General. Unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement ("Notice I shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by first class mail, postage prepaid, to the person specified below: If to the Seller: Idaho Wind Partners 1, LL Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: s(eve.eisenbergreunionpower.com If to the Company: Idaho Power Company - Delivery Attention: Operations Manager 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208388-5669 Fax: 208-388-5504 9.2 Billing and Payment. Billings and payments shall be sent to the addresses set out below: If to the Seller: Idaho Wind Partners 1, LLC Attention: RP Wind ID LLC, Managing Member 82 Elm Street, P.O. Box 2049 Manchester Center, VT 05255 Phone: 802-362-9147 Fax: 802-362-9148 Email: steve.eisenberg@reunionpower.com If to the Company: Idaho Power Company - Delivery Attention: Corporate Cashier P.O. Box 447 Salt Lake City, Utah 84110-0447 Phone: 208-388-5697 email: asIoanidahopower.com 9.3 Designated Operating Representative. The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the 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. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 Idaho Power Company Generator Interconnection Agreement #159 &300 LP,U.C. No. 29 Tariff No. 101 Paae9ôf 9 Seller's Operating Representative: Idaho Wind Partners 1, U do RP Operations Company LLC Attention General Manager Alan Drive Jerome, ID 83338 Phone: Company's Operating Representative: Idaho Power Company - Delivery Attention: Regional Outage Coordinator - Regional Dispatch 1221 W. Idaho Street Boise, Idaho 83702 Phone: 208-388-2633, 388-5125, or 388-5175 during regular business hours (after hours Southern Region 208-388-5190). 9.4 Changes to the Notice Information. Either Party may , change this information by giving five (5) Business Days written notice prior to the effective date of the change. 10. Siqnatures. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives. For the .Seller , Saim 1aIIs Wind Park, LLC Name. Title: C) Date: For Y /1 Name: ..-_ Title: Manager, Grid Operations - Idaho Power Company, Delivery Date: __________________ Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Idaho Power Company Generator Interconnection Agreement 11159 & 300 iP.U.CNo. 29, Tariff No. 101 Page lof 2 Attachment 1 In this attachment the Generation Facility and Interconnection Facilities, including Special Facilities and upgrades are itemized and identified as being owned by the Seller or the Company. As provided in Schedule 72 Payment For Interconnection Facilities, the Company will provide a best estimate itemized cost of its Interconnection Facilities including Special Facilities, upgrades and Metering Equipment. General Facility Description The proposed wind farm will connect to Idaho Power's existing 34.5kV system on Idaho Power's Blue Gulch (BIJGU 043) distribution line. The project's location is in Idaho Power's Southern Idaho service territory in approximately Section 01 of TOgS, RI2E Twin Falls County, Idaho. The total project output is 21 MW. Interconnection Point The Interconnection Point for the Salmon Falls Wind Project will be on the Seller's X disconnect switch in the interconnection package. A drawing identifying the Interconnection Point is included as Attachment 2. Seller's Interconnection Facilities The Seller will install generators, disconnect switches, distribution collector system, transformers, appropriate grounding measures, and associated auxiliary equipment. Seller will build facilities to the Interconnection Point for the generator facility including the cable placed inside the provided pole riser. All interconnection equipment electrically located on the generator side of the Interconnection Point shall be owned and maintained by the Seller. Other Facilities Provided by Seller Telecommunications The Seller will provide two communication circuits between the interconnection site and a location, or locations, specified by Idaho Power Company. One of the circuits will be a dedicated 4-wire leased analog circuit connected to the SEL 31 1C relay and the other will be a POTS dial-up circuit to the revenue meter. The Seller is responsible for supplying and coordinating the installation of the phone lines and paying the monthly service charges. The communication circuits will need to be installed and operational prior to generating into the Idaho Power system. Monitoring Information If the Interconnection Customer requires the ability to monitor information related to the Idaho Power recloser in the generation interconnection package they are required to supply their own communications circuit to the control box. Easements The Interconnection Customer will secure appropriate easements with the land owner for the four-pole interconnection package Idaho Power will provide the documentation Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 Idaho Power company Generator Interconnection Agreement #159 & 300 l.P.U:CNo.29,TariffNo.101 Page 2of2 Idaho Power Company's interconnection Facilities Idaho Power will install a standard generation interconnection package on the existing distribution feeder (BUGU.-042) which will be converted to the proposed BUGU-043. Included in the interconnection package will be a pole riser for the Generator to install cables to make interconnection to the Idaho Power system. The new interconnection package will include four distribution poles to mount a local service transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser necessary for the package. The interconnection will be controlled by a SEL-31 IC line protection relay. The relay will be located in a pole mounted enclosure and will also contain a test switch (TS4). SLSS, dialup modem. 202 modem, isolation interface, power supply, DC converter, control switch and surge protector. Permits Permitting tasks associated with the substation expansion and distribution line rebuild and new construction will be the responsibility of Idaho Power. County conditional use permits are likely required within the substation to expand the yard and add the control building. It was determined that the proposed distribution line along 400 East falls within the jurisdiction of the Bureau of Land Management Although the new structures are planned to be installed along the roadside, the land is in fact owned by the BLM. Additionally, various sections of the existing distribution feeder that requires upgrades is also on BLM 'and. Therefore, NEPA permitting will be required to grant Idaho Power a grant to install, maintain, and operate the new distribution line and upgrade the existing distribution line. Often this permitting task can take one year or more depending on the analysis required by the BLM. Idaho Power is working with the BLM local field office to expedite the schedule if possible. Estimated Cost ,&. Ownershlix The follQwing good faith estimates are provided in 2010 dollars Generation FacHbYes. Provided by Seller Seller N/A Interconnection Facilities: Overhead Generation intercoimetion Package IPCO $200,000 Full payment has been received for this project. Billing for construction activities will be based upon actual expenditures. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 BY W -j-------- Y WER POLE 1 POLE 2 POLE 3 POLE 4. COC)O D - - - (15 .w 5< WZt I 0 'C (15 ATTACHMENT 2 CD BUGU 043 34.5kv sL. ft4Ti L L1 I 21W I, keilsIk epa. Ike TIkA Ik pc*oci oc,11'rIt T(15 RITT *CITOA I COMO OF AM m" 'Am 51(1 CAST, 151*1 F*I$ C1*J*TC IN SMCE BY Idaho Power Company Generator Interconnection Agreement # 159 & 300 LP.UC. No. 29 Tariff No. 1i31 page lofl Attachment 3 MikctrniS- Agreed to by: For the Interconnection Customer Date_________ ) G - For the Transmission Provider Idaho Power company, Delivery V1U424 Date_iQ/ Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 Idaho Power Company Generator Interconnection Agreement # 159 & 300 LP.LJ.C. No. 29, Tariff No. 101 Pace I of 2 Attachment 4 Additional Operating Requirements for the Company's Transmission System and Affected Systems Needed to Support the Seller's Needs The Company shall also provide requirements that must be met by the Seller prior to initiating parallel operation with the Company's Transmission System. Operating Requirements The project is required to comply with the applicable Voltage and Current Distortion Umits found in IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they may be updated from time to time. Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with no impact upon the operation of the transmission system whenever the generation facilities are electrically isolated from the transmission system and a terminal clearance is issued by Idaho Power Company's Grid Operator. Voltage flicker at startup and during operation will be limited to less than 5% as measured at the Interconnection Point. For this to occur, the Starting inrush current cannot exceed 355 Amps at the 34.5 kV voltage level, it is preferable to bring each generating unit online separately to minimize voltage flicker on the distribution system. The transmission One serving this area is Idaho Power's 138 kV Upper Salmon - Wells line. High voltage is a problem during light loading conditions in the spring when local hydro generation is high and this project is in operation. This situation can be present for up to a month from early April to early May. However, with the Implementation of Phase 5 (KIng 230:138 kV transformer) of the Transmission System Impact Study those high voltage problems are eliminated during those system conditions. Until that addition takes place the generation facility will have to curtail up to 15 MW of generation at that time of year. Low Vottage Ride Through The Project shall remain interconnected upon the occurrence of a three phase or single phase to ground fault down to a voltage of zero at locations on Idaho Power's system as close to the Seller's facilities as Idaho Power Company's Blue Gulch Station prior to the fault being cleared for the minimum times stated below before tripping off-line: • Three phase fault: Normal clearing that takes up to 9 cycles. • Single phase to ground fault: Delayed clearing that takes up to 50 cycles. Ground Fault Equipment The Seller will install transformer configurations and will limit the contribution of ground fault current to 20 amps or less Commercial Operation Requirements The Seller will be granted a requested Commercial Operation date only when all requirements have been met under this GIA and Idaho Power Company's Power Sales Agreement. A transmission service request (TSR) for this generation has been submitted to Idaho Power Company's Grid Operations group under TSR 72734375. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 Idaho Power Company Generator Interconnection Agreement #159 & 300 LP.U.C. No. 29, Tariff No. 101 Paqe2of2 Generator Output Limit Control ('Re-dispatch" or "GOLC The Project will be allowed to deliver the net output of 11.62 MW at the Interconnection Point subject to reductions directed by Idaho Power Company Grid Operations during transmission system contingencies until the Generator Output Limit Control ("GOLC) is tested and in operation. The Seller has elected to be subject to GOLC under Idaho Public Utility Commission ("IPUC) Order No. IPCE- 06.21. Once the Thousand Springs Wind Project is in operation, it will be able to generate up to rated net output of 11.62 MW subject to the provisions of IPUC Order No. IPC-E-06-21 and Exhibit C below referenced by that Order. The following Exhibit C is included herein from the Company's Joint Motion to Approve Stipulation and to Dismiss Complaint dated June 13, 2007 in IPUC Case No. IPCE-06-21. Exhibit C The following Idaho Power Network transmission facilities have been identified to be affected by the addition of the Requesting Projects in the Twin Falls area. An outage of any of these facilities may result in overloads on the remaining facilities. Such outages may require the initiation of Cassia Redispatch (also Generation Output Limit Control). Boise Bench - Midpoint 230 KV transmission line Boise Bench - Raffle Snake 230 1(V transmission line Rattle Snake - Midpoint 230 KV transmission line Dram - Midpoint 230 KV transmission line Hubbard - Danskin 230 KV transmission line King 1381230 KV transformer Danskin - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 1W transmission line Lower Malad - Mountain Home Junction 138 KV transmission line Upper Salmon - Mountain Home Junction 138 KV line reactor Lower Malad * Mountain Home Junction 138 1(V line reactor Lucky Peak - Mountain Home Junction 138 KV line reactor Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Idaho Power Company Generator Interconnection Agreement # 159 & 300 LP.U.C. No. 29, Tariff No. 101 Page I of I Attachment 5 Reactive Power Requirements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided by the Seller. The Company will specify the equipment required on the Company's system to meet the Facility's reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location, Company- provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Company-provided equlpmena The equipment specifications and requirements will become an integral part of this Agreement. The Company-owned equipment will be maintained by the Company, with total cost of purchase, installation, operation, and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. The project most be controlled to Operate at unity power factor. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners!, LLC Page 18 Idaho Power Company Generator interconnection Agreement # 159 &300 LP.U.C. No. 29, Tariff No. 101 Page 1 of 5 Attachment 6 As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including Network Upgrades, and provides an itemized best estimate of the cost of the required facilities. Distribution Upgrades Idaho Power will upgrade approximately 3.5 miles of the existing distribution feeder to accommodate the new Salmon Falls Wind Park generation. The feeder will be rebuilt along 400 East and 4700 North. Additionally, Idaho Power will construct approximately 3.25 miles of new distribution feeder along 400 East. The conductor installed will be 336.4 AAC conductor with a 2/0 ACSR neutral and structures will be rebuilt as necessary to accommodate the larger conductor in the rebuild section. The upgraded and newly constructed distribution feeder will be designated as BUGU-043 and will serve both the Salmon Falls Wind Park and Idaho Power customers. A new. 22 MVA 138-34.5 kV transformer will be installed at the Blue Gulch substation to accommodate the Salmon Falls Wind Park. Additional equipment will also be installed inside the existing substation such as feeder breakers and protection, a bus tie breaker, a small control building, and air-break switches. A new transmission tap will be installed on the existing Upper Salmon - Wells 138 kV transmission line to serve the new transformer. There is adequate property to accommodate the new feeder, transformer, and transmission tap. The existing fence and yard will be extended to the south. Upgrades to Distribution Line Reconductord New construction RICO SI ,250,000 Upgrades to Hiuc Gulch Substation I 38kV Line Tap, 138-34.5kV Transformer, Feeder Protection ll'CO !071L $3,150,000 Transmission Upgrades Transmission Network Upgrades for this project were detailed in a separate Facility Study Report for the Joint Study Group identified in the March 14, 2008 System Impact Study Report for up to 353 MW of New Generation on the 138kV Transmission System in the Twin Falls Area. 1) Regulatory Requirements; A.A number of generation projects seeking Network Resource Interconnection Service. (as that term is defined in FERC Order 2003 and the Company's FERC approved Open Access Transmission Tariff rOATT")) including the Generation Facility, propose to interconnect to the portion of the Company's transmission system is located in the Twin Falls Idaho geographic area and have submitted interconnection requests to the Company during the period January 1 2005 through October 1, 2007 (collectively, the Requests" or Requesting Projects). B.In accordance with FERC Order 2003, the Company's OATT, Commission Order No. 30414 and in the interest of maintaining comparability and economic efficiency in responding to the Requests, the Company has established Joint Study Group One 1)" for the Requesting Projects. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners i, LLC Page 19 Idaho Power Company Generator Interconnection Agreement # 159 & 300 LP.U.C. No. 29, Tariff No. 'ml Pace 2 of 5 C Seller is ready and willing to start immediate construction of the Generation Facility. One or more Requesting Projects which precede or follow Seller in the Joint Study Group One are not yet prepared for immediate construction or may not be constructed at all. 2)Generation Output Limit Control: The Generator Facility is a PURPA OF. Seller will, at its sole expense, install, operate and maintain the equipment and communications facilities necessary to enable the Generation Facility to reduce its Maximum Hourly Output to a not-to-exceed set point, within ten (10) minutes of when the Company calls for the reduction. The Company will specify the set point when it notifies Seller of the need to initiate Generation Output Limit Control. Generation Output Limit Control cannot be used to increase the Generation Facility's output above such Maximum Hourly Output for then existing turbine and wind conditions. Seller will normally, subject to those conditions, seek to maximize the energy output of the Generation Facility, but Generation Output Limit Control will limit the output of the Generation Facility whenever the Maximum Hourly Output level would otherwise exceed the required set point In any scheduling hour. Seller has elected to be subject to Generation Output Limit Control. 3)Cost Risk for Network Upgrades: Network Upgrade costs will be allocated to each Requesting Project, including the Generation Facility, based on: a) their election of whether to be subject to Generation Output Limit Control, b) their order in the Joint Study Group One, and c) based on the megawatt interconnection capacity, of each Requesting Project, their prorata share of the cost for the Network Upgrade required to interconnect one or more Requesting Project and the added Interconnection capacity of that particular Network Upgrade. The Seller will pay non-reimbursed amounts of no more than 25% of the actual as-constructed cost of the Generator Facilities currently- allocated share of the Network Upgrades required to interconnect the Generation Facility without Generation Output Limit Control (see paragraph 6 below - Sharing of Network Upgrade Costs. 4)Generation Output Limit Control Rights: The Company may issue a set point or limit and initiate Generation Output limit Control to respond to transmission system emergencies, or respond to circumstances where the transmission line(s) identified in Commission Order No. 30414 are out of service and for which Generation Output limit Control was determined necessary and did lower the amount of Network Upgrade cost obligation to the Generation Facility. In most circumstances, Generation Output Limit Control will not be required when all the lines specified in Commission Order No. 30414 are in service. Any use of Generation Output Limit Control to establish a set point below the Generation Facility's capacity shall be pro-rata with other Requesting Projects subject to Generation Output Limit Control. The Company will not purchase or pay for energy which would have been produced by the Generation Facility, but for operation of Generation Output Limit Control. 5)Responsibility for Network Upgrade Costs: In addition to funding all costs of directly interconnecting the Generation Facility to the Company's system, the Seller will pay its pro-rata share of the Network Upgrade costs actually incurred by the Company to provide firm Network Resource Interconnection Service to the Generation Facility but the Generation Facility shall not be obligated to share the on-going operation and maintenance costs of such Network Upgrades. Seller recognizes that the final cost of its share of the Network Upgrades will not be known until construction is completed. The Seller also recognizes that its share of the final Network Upgrade cost will increase or decrease, subject to the provisions of paragraph 6, depending on whether other Requesting Projects, both earlier and later in the Joint Study Group One are constructed. 6)Sharing of Network Upgrade Costs: A. The Seller and the Company will share the five phases of Network Upgrade costs attributable to the Generation Facility as follows: Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 Idaho Power Company Generator Interconnection Agreement # 159 &300 LRLLC. No. 29, Tariff No. 101 Page 3of5 1.Phase 1: the Company will assume 100% cost responsibility for Phase I and include this cost in its rate base. 2.Phases 2, 3,4 and 5: (a)250/9 of the costs will be provided by the Generation Facility as a non-refundable contribution in aid of construction (ClAC). (b)250% of the costs will be funded by the Company and included in the Company's rate base. (c)50% of the costs will be funded by Generation Facility as an advance in aid of construction (AIAC) subject to refund as provided in paragraph 7 below. As refunds are made, the refunded amounts will be included in rate base using standard regulatory accounting principles. B'As projects in the Joint Study Group One are interconnected, the Company will reallocate the CIAC and AIAC portions of the costs of Phases 2 through 5. For example, when additional projects in the Joint Study Group One are constructed after the Generation Facility is constructed, the Company will collect monies from these subsequent projects and refund monies to Seller. It is the Company's intent that each QF Project in the Joint Study Group One will pay its respective pro-rata share, based on nameplate generation capacity, of each phase of the Network Upgrade they utilize. Tables 13-7, 8. 9 and 10 in the Settlement Stipulation adopted in Commission Order No. 30414 illustrate how this re-allocation would occur on a hypothetical basis. 7)Refund Provisions: The Seller will be entitled to a cash repayment, in monthly, equal installments, for the total AIAC amount the Seller advances to the Company for Network I Upgrades, including any tax gross-up or other tax related payments associated with the AIAC for Network Upgrades. Repayment will be made in accordance with Article 11.4 of the Large Generator Interconnection Agreement (LGlA) included in the Company's OATT and occur over a term not to exceed ten (10) years after the date the Generation Facility achieves commercial operation. Monthly repayments will be contingent on the FESA's being in good standing (no uncured defaults) and upon the Generation Facility achieving a mechanical availability in that month in excess of 50%, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month. In computing the mechanical availability, the capacity available in each hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is defined in the FESA) or a reduction in generation due to Generation Output Limit Control required by the Company as described in paragraphs 2 and 4. 8)Interest Refunds: Monthly refund payments on AIAC amounts shall include interest calculated in accordance with the methodology set forth in FERC regulations at 18 C F R 35-1 9a(aX2X1ii) from the date of any payment for Network Upgrades through the date on which Seller receives final repayment 9)Security for Payment: Until it is finally determined which of the Projects in the Joint Study Group One will be constructed and interconnected and the final cost of those interconnections is determined, upon execution of this Interconnection Agreement Seller will provide and maintain a cash escrow or a letter of credit to the Company in a form and by an issuer satisfactory to the Company as security for payment, initially in the amount of the Generator Facility's allocation of Network Upgrade costs as provided herein and adjusted from time to time pursuant to the status of the Requests. The total security amount at any time will not exceed the amount that would be owed if the Requests then remaining in the Joint Study Group One that are scheduled for construction later than the Generation Facility is not constructed. Other QF participants in the Joint Study Group One will be held to a similar requirement. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 Idaho Power company Generator Interconnection Agreement # 159 & 300 I.P.U.C. No. 29, Tariff No. 101 Paae4of5 10)Generation Outaut Limit Control Protocols: This interconnection Agreement addresses interconnection of the Generation Facility to the Company transmission system with Network Resource Interconnection Service However Seller acknowledges that until sufficient Network Upgrades are installed to allow the Generation Facility to qualify for Network Resource Interconnection Service the Generation Facility will be subject to Generation Output Limit Control as described in paragraphs 2 and 4. 11)Network Upgrade Cost Determination: Network Upgrade costs, allocated to the Generation Facility for initial funding, will be determined in a comparable manner and with the same criteria used by the Company when studying the interconnection of other generation, whose output can be changed within ten (10) minutes, at other locations on its transmission system. Upon request by the Generation Facility, the Company will provide a written explanation of the methods and assumptions leading to any such allocation of Network Upgrade cost obligation to the Generation Facility. 12)Request Uncertainty: The Company will follow good utility practice, the LGIP and SGIP, and all commission orders in processing the Joint Study Group One within Idaho Power Company's Generator Interconnection Queue. Any Requests that fail to meet those requirements to remain in the Joint Study Group One, or fail to proceed to construct their interconnection or fail to initially fund or secure their allocated share of the Network Upgrade costs, will forfeit their position in the Idaho Power Company Generator Interconnection Queue and their rights to the interconnection and transmission system capacity associated with their Request. initially and throughout the life of the Generation Facility, consistent with good utility practice, deter the least cost solution, given the current status of the Requests in the Joint Study Group One, tha result in the lowest reasonable allocation of initial funding responsibility for Network Upgrades ti Generation Facility. The Company will apply the same criteria to all Projects in the Joint Study S One. 14) Seller Construction Responsibility Transmission Network Upgrades (described in Section C below): Df41'rinthni ('.* Phase 5 transmission network upgrades under the Joint System Impact Study Report IPC $1,175.78 Total $1,175,786 The final cost will be allocated to the participants remaining in Joint Study Group One upon completion of the project. C. Allocation of Transmission Network Upgrade Costs Seller and Idaho Power will share the actual Network Upgrade costs attributable to the project as follows: 1 250/6 of the costs will be provided by Seller as a non-refundable contribution in aid of construction ( CIAC) 2 25% of the costs will be funded by Idaho Power and included in Idaho Powers rate base 3 50% of the costs will be funded by Seller as an advance in aid of construction (AIAC") subject to refund As refunds are made the refunded amounts will be included in rate base using standard regulatory accounting principles. Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 Idaho Power Company Generator Interconnection Agreement #159 & 300 I.P.U.C. No. 29. Tariff No.. 101 Page 5 o 5 Jepayment of Credits for Network Upgrades in accordance With IPUC Order No. 30414: Transmisston Owner Costs (250/0) $293,946.50 Seller Nort-reimbursable Costs (25%) #29394650 Seller Reimbursable Costs (50%) $587;89300 Exhibit 2118 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 IDAHO 195POWER0 An IOACORP Company if Barton L Kline Senior Attorney June 13, 2007 Jean D. Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street P. 0. Box 83720 Boise, Idaho 83720-0074 Re: Case No. IPC-E-06-21 Cassia Gulch Wind Park LLC and Cassia Wind Farm LLC v. Idaho Power Company Dear Ms. Jewell: Please find enclosed an original and seven (7) copies of a Joint Motion to Approve Stipulation and to Dismiss Complaint with attached Settlement Stipulation in the above - referenced matter. I would appreciate it if you would return a stamped copy of this transmittal letter in the enclosed self-addressed, stamped envelope. Very yours, / Sjk4 ey_~' Ba on L. Kline BLK:sh Enclosures P.O. Box 70 (83707) 1221 W. Idaho St. Boise, ID 83702 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 Barton L. Kline (ISB No. 1526) Lisa D. Nordstrom (1SB No. 5733) IDAHO POWER COMPANY - - 1221 West Idaho Street P.O. Box 70 Boise, ID 83707 Tel: 208-388-2682 Fax: 208-338-6936 Attorneys for Idaho Power Company Dean J. Miller (ISB No. 1968) McDEVHT & MILLER LLP 420 West Bannock Street P.O. BOX 2564-83701 Boise, Idaho 83702 Tel: 208-343-7500 Fax: 208-336-6912 joe@mcdevitt-miller.com Attorneys Cassia Wind Gulch Park LW and Cassia Wind LLC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASSIA GULCH WIND PARK LLC AND CASSIA WIND FARM LLC Complainants V. IDAHO POWER COMPANY Respondent Case No. IPC-E-06-21 JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT COMES NOW Idaho Power Company ("Idaho Power") and Cassia Gulch Wind Park LLC and Cassia Wind Farm LLC ("Cassia") pursuant to RP 56 and 272 and move the Commission for an Order approving the Settlement Stipulation dated June 13, 2007 ("Stipulation") and filed herewith and in support thereof respectfully show as follows, to wit: JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-1 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 Introduction and Background 1.As part of its integrated backbone electric transmission system, Idaho Power owns and operates a 138 kV transmission system in the Twin Falls, Idaho, area. Idaho Power has received requests for the integration of up to 200 MW of new generation to be connected to the 138 kV system. Most of the requests are from wind generating projects that are Qualifying Facilities ("QFs") under the Public Utility Regulatory Policies Act ("PURPA"). The Cassia Projects are among those wind generation QFs requesting interconnection. The projects requesting interconnection are placed in a "queue" which is manged by Idaho Power in accordance with rules established by the Federal Energy Regulatory Commission (FERC). Exhibit A to the Stipulation shows the Requesting Projects which have signed Facility Study Agreements, paid the required deposits and remain in the queue in the order they made their interconnection requests) 2.In June of 2006, Idaho Power, based on engineering studies, was of the opinion that in order to interconnect with all of the projects in the queue, it would be necessary to construct Network Upgrades to the transmission system with a total estimated cost of approximately $60 million. 3.Cassia's Complaint in this case was filed on September 16, 2006. In general, the Complaint sought a determination of whom, as between a Qualifying Facility developer and the utility, should be responsible for initial funding of Network Upgrades to the utility's transmission system. On September 27, 2006, the Commission issued Order No. 30135 establishing a comment period. On October 5, 2006, the Commission issued Order No. 30147 granting intervention to Exergy Inc. Comments and Reply Comments were filed by Cassia, Idaho Power, 'In this Motion, unless otherwise noted, capitalized terms have the same defined meanings that they have in the Stipulation (Attachment I). JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-2 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners 1, LLC Page 3 Exergy, Avista and Rocky Mountain dlb/a PacifiCorp. Staff filed Reply Comments. Oral argument was held, pursuant to notice, on November 28, 2006. Thereafter, the Commission took the matter under advisement. 4.In the intervening time, Idaho Power and Cassia have negotiated with each other in good faith to resolve the issue of cost responsibility for Network Upgrades. These negotiations have been protracted, taking into account the complexity of the issues involved. The negotiations consisted of numerous conferences, further analysis and communication of technical matters and exchanges of Stipulation drafts. 5.The resulting Stipulation, Attachment 1, has several features which are explained in more detail as follows: Re-Dispatch and Reduced Network Upgrade Costs 6.A key component of the Stipulation is the concept of "Redispatch." In the electric utility industry, the term "dispatch" or "dispatchable" refers to the ability of the utility's load control centers to increase or decrease on a real time basis the out-put of generating facilities to meet system demand or to respond to system emergencies. Historically, projects with Qualifying Facility status under PURPA have not been dispatchable. 7.Idaho Power's estimated cost of approximately $60 million to complete necessary transmission Network Upgrades was based on the assumption that the Requesting Projects in the Exhibit A queue would not be dispatchable. 8.Pursuant to the Stipulation (Stipulation paragraph 9) Cassia has agreed to install, at its expense, equipment and communication facilities necessary to reduce its energy output to a predetermined set-point within ten (10) minutes of when Idaho Power requires a reduction to the set-point. Of course, Idaho Power cannot utilize these same facilities to increase Cassia's JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-3 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 4 generation so the Cassia Projects are not fully "dispatchable" in the normal utility sense. However, for convenience, in the Stipulation, Cassia's agreement to reduce generation is referred to as "Cassia Redispatch." Idaho Power will call for Cassia Redispatch only when necessary to respond to system emergencies or when other transmission lines specified in Exhibit C to the Stipulation are out of service (Stipulation paragraph 11). Redispatch would be implemented pro- rata with other Requesting Projects in the queue who have agreed to similar Redispatch protocols. 9.Based on Cassia's commitment to Cassia Redispatch, and assuming the other Requesting Projects in the queue made similar commitments, Idaho Power performed additional analysis to determine Network Upgrades that would be necessary to preserve system integrity. This is referred to in the Stipulation as the "Redispatch Study" and costs for each Requesting Project are shown on Exhibit B, Table B-6 to the Stipulation. As can be seen, the original estimate of $60 million decreases to approximately $11 million under the Redispatch Study. 10.Idaho Power and Cassia believe this component of the Stipulation is in the public interest for two reasons. First, the Redispatch approach allows Idaho Power to significantly reduce the required investment to preserve system integrity and represents a least-cost, but prudent, solution to the identified problem. Second, the "Cassia Redispatch" commitment undertaken by Cassia allows the Cassia Projects to be available to Idaho Power as a resource with some ability to respond to system emergencies. Responsibility for Network Upgrade Costs 11.Paragraph 10 of the Stipulation contains the methodology for determining the Cost responsibility of Cassia and other Requesting Projects. It provides in part: Cassia Cost Risk for Network Upgrades: Exhibit B to this Stipulation sets out the Network Upgrades and their budgetary JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT4 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 5 estimated costs based on the [original] Study and the Redispatch Study to interconnect the Requesting Projects with and without being subject to Redispatch. The Network Upgrade costs will be allocated to each Requesting Project, including the Cassia Projects, based on: a) their election of whether to be subject to Redispatch, b) their order in the Idaho Power Queue, and c) based on the megawatt interconnection capacity of each Requesting Project, their prorata share of the cost for the Network Upgrade required to interconnect one or more Requesting Project and the interconnection capacity that the particular Network Upgrade adds. 12.Idaho Power and Cassia believe the above-described allocation method is in the public interest because it fairly allocates costs actually incurred on a pro-rata basis taking into account whether Requesting Projects elect to be subject to Redispatch, the Requesting Project's order in the queue and megawatt interconnection capacity. Further, Idaho Power will be responsible for on-going operation and maintenance costs of Network Upgrades. Sharing of Network Upgrade Costs 13.Pursuant to paragraph 13 of the Stipulation, Idaho Power and the Requesting Projects will share the costs of the five planned phases of Network Upgrade as follows- o Idaho Power will assume 100% cost responsibility for Phase I and include this cost in its rate base. Phase I upgrades would likely have been required for native load in the near future. o Remaining four phases: • 25% of the costs will be provided by the project as a non-refundable contribution in aid of construction ("CIAC"); • 25% of the costs will be funded by Idaho Power and included in Idaho Power's rate base; • 50% of the costs will be funded by projects as an advance in aid of construction ("ALAC") subject to refund. These costs will be rate based using standard regulatory accounting principles. 14.Idaho Power and Cassia believe this sharing formula is in the public interest. Electric power transmission systems by their nature are joint-use facilities and, as illustrated by JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-5 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 6 the Comments and pleadings in this case, there are many economic theories relating to cost allocation of joint-use facilities. While the proposed sharing formula is not based on any rigorous cost study, it reflects the considered judgment of the parties that it is a reasonable compromise of the competing points of view presented in this case. In concluding that the proposed sharing formula is in the public interest, Idaho Power is mindful of its position in this proceeding that - "but for" - the construction of the Requesting Projects in the queue, the transmission upgrades originally identified by Idaho Power would not be needed to provide adequate service to Idaho Power native load customers. As a result, amounts paid by customers for Network Upgrades could result in customers paying more than avoided costs for generation from Cassia and other QFs because their generation requires Network Upgrades. While this situation remains substantially unchanged, Idaho Power believes that there are a number of cost savings that will mitigate, if not totally eliminate, the adverse effects on customers. First, Idaho Power is of the opinion that the transmission upgrades identified in Table B-i in Exhibit B to the Stipulation will provide the Company with a more robust transmission system serving the Magic Valley and the Wood River Valley. For example, Idaho Power foresees interconnecting the 230 kV transmission system to the 138 kV system at the King Substation at some point in the future to serve Customer load in the western portion of the Magic Valley. It is impossible to quantify the precise amount of system benefit to native load customers that is provided by the Network Upgrades identified in Table B-i. Nevertheless, Idaho Power expects some future customer benefit to flow from the strengthened transmission system. Second, power generation from QF projects, such as the Cassia Projects serves, to some extent, to displace or defer the need for other generation projects in the Company's Integrated JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-6 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 7 Resource Plan ("IRP"). For example, Idaho Power's 2006 IRP identifies 150 MWs of wind generation to be acquired and brought on-line in 2012. 01 the approximately 300 MWs of generation in the Twin Falls cluster shown in Table A-1 in Exhibit A to the Stipulation, approximately 230 MWs come from wind resources. Of that 230 MWs of wind resource, approximately 20 MWs are not currently considered in the Company's 2006 IRP. Based on contract discussions with other wind QF resource developers, outside the Twin Falls cluster, the Company has reason to believe that if the Cassia settlement is approved and the Company is permitted to utilize the terms and conditions of the settlement as a template for other QF resources requiring Network Upgrades (see paragraph 19 below), another 60-80 MWs of wind QF resources outside the Twin Falls cluster will proceed with development. If approval of this Stipulation allows these additional QF wind resources to develop, the total additional new QF wind resource may be sufficient to defer or replace all or a portion of the 150 MWs of wind resource identified in the 2006 ]RP for acquisition in 2012. If this occurs, in effect, the QF resources facilitated by acceptance of the Stipulation will utilize an amount of Network Upgrade capacity that would have been required for the 150 MWs of such IRP wind generation projects scheduled for 2012. The cost for Network Upgrades for the 150 MWs of 2012 IRP generation projects would have been recovered from native load customers, either embedded in the energy rate in a power purchase agreement or as a Company transmission investment included in rate base. Third, under the settlement arrangement set out in the Stipulation, Idaho Power believes it would be able to successfully defend a comparability claim brought by a FERC jurisdictional customer claiming that Idaho Power and the Commission have given unlawful preferential treatment to QF resources. The 25% non-refundable contribution of the QF Developers and the JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-7 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 8 - fact that only 50% of the costs of the Network Upgrades is refundable (but only if the QF contract stays in good standing), provide evidence that QFs are not being given preferential treatment. The final reason Idaho Power believes the Stipulation is fair is that the non-refundable 25% portion funded by the QF project will never be placed in rate-base. This combination and the fact that 50% of the Network Upgrade will be refundable over time will provide an economic signal to QFs with the objective of balancing optimal siting of energy resource with interconnection costs. By requiring QF projects to contribute a portion of costs on a non- refundable basis, an incentive is created for QF projects to make economically-efficient decisions regarding the siting of projects. Refunds and Interest on Refunds 15.Pursuant to paragraphs 14and 15 of the Stipulation, amounts paid by Cassia to Idaho Power as Advances in Aid of Construction ("AIAC") will be repaid in monthly installments commencing when the Projects achieve commercial operation, with all advances to be refunded within a period not to exceed ten (10) years from the commercial operation date. Payments in any month will be contingent on the Projects being in good standing (no uncured defaults in energy sales agreements) and the Projects meeting a mechanical availability standard in that month. 16.Interest on refunds will be calculated in accordance with the method prescribed by FERC. 17.Idaho Power and Cassia believe these provisions are in the public interest. Refunds will not commence until commercial operation is achieved and will not be paid during such time as the Projects are either in contractual default or not available for the generation of JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-8 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 9 energy, thereby protecting Idaho Power and its ratepayers. The ten (10) year refund period provides Cassia with a return of its advanced capital within a reasonable period of time. Idaho Power follows the FERC method of interest computation when it constructs Network Upgrades for non-QF generators and using it in this circumstance would avoid the necessity of maintaining duplicate accounting systems for computing and tracking interest accumulation and payments. Security for Payment 18.The Stipulation in paragraph 17 recites that Cassia will provide liquid security to secure its commitment to advance or contribute funds necessary for the construction of Cassia's share of Network Upgrades, recognizing the amount of required security may fluctuate depending on whether other projects in the Queue are constructed and interconnected. Idaho Power and Cassia believe this provision is in the public interest. It assures Idaho Power that Cassia's commitment to fund Network Upgrades is secured while providing Cassia with a degree of financial flexibility. Most importantly, it protects customers from bearing the risk of overbuilding Network Upgrades if subsequent projects in the queue do not proceed to construction. Recommended Procedure for Processing This Motion and the Stipulation 19.While the Stipulation and this Motion describe the settlement agreement negotiated between Idaho Power and Cassia, a number of other QFs seeking to interconnect their projects to Idaho Power's energy delivery system are similarly situated with Cassia and the Requesting Projects in the Twin Falls queue ("Other Requesting QFs"). These Other Requesting QFs are of sufficient size and in locations such that their interconnection to the Company's system will require Network Upgrades. To provide uniform treatment to these Other Requesting QFs, Idaho Power desires to utilize the terms and conditions contained in the Stipulation as a JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-9 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 10 template for negotiation of additional interconnection agreements with the Requesting Projects in the Twin Falls queue and for the Other Requesting QFs. For example, for the Other Requesting QFs, Idaho Power proposes to allocate the costs of the Network Upgrades with 25% of the cost to be contributed by the QF, 25% to be contributed by Idaho Power and the balance to be refundable to the Other Requesting QF. The refunds would be made utilizing the same refund criteria and interest rate calculation described in the Stipulation. Other provisions in the Stipulation, including the requirement for QFs to provide security for future upgrade payments would also be applied to the interconnection agreements with Other Requesting QF developers in a manner consistent with the settlement outlined in the Stipulation. 20.Because Idaho Power proposes to utilize the Stipulation as a template for negotiating interconnection agreements with all of the Requesting Projects and the Other Requesting QFs, the Company has delivered copies of this Motion and the Stipulation to all. Requesting Projects in the queue and potential Other Requesting QFs that the Company is aware of. A copy of the pro-forma transmittal letter is enclosed as Attachment 2. Copies of this Motion and the Stipulation are also posted on the Company's OASIS and its website. 21.Idaho Power requests that the Commission, as part of its Order in this case, indicate its concurrence with Idaho Power's proposal to utilize the terms and conditions set out in the Stipulation as a template for interconnection agreements between Idaho Power and other QFs where interconnection requires Network Upgrades. This will allow Idaho Power and QFs to better quantify interconnection and Network Upgrade costs associated with their Projects and will facilitate the development of new QF resources. JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-10 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 11 Conclusion 22.Idaho Power and Cassia further request that the Commission process this Motion by modified procedure in accordance with RP 201 et seq. 23.For the reasons cited herein, Idaho Power and Cassia respectfully submit that the Stipulation is in the public interest and hereby jointly request that, after appropriate review, the Commission enter its order (1) approving the Stipulation; (2) dismissing Cassia's Complaint; and (3) authorizing Idaho Power to utilize the terms and conditions in the Stipulation as a template for interconnection agreements under Schedule 72 for QFs, in addition to Cassia, which involve the construction of Network Upgrades. Respectfully submitted this . day of June 2007. cDEvrrT & MILLER LLP IDAHO POWER COMPANY Dean J. Miller Barton L. Kline Attorneys for Cassia Attorney for Idaho Power Company JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-11 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 12 CERTIFICATE OF SERVICE I hereby certify that on the J..S day of June 2007, I caused to be served, via the method(s) indicated below, true and correct copies of the foregoing document, upon: Jean Jewell, Secretary Idaho Public Utilities Commission 472 West Washington Street P.O. Box 83720 Boise, ID 83720-0074 David J. Meyer Vice President, Chief Counsel for Regulatory and Governmental Affairs P.O. Box 3727 1411 B. Mission Avenue Spokane, WA 99220-3727 Peter Richardson Richardson & O'Leary 515 N. 27th Street Boise, Idaho 83702 (208) 938-7901 Brian Dickman Dean Brockbank PacifiCorp/dba Rocky Mountain Power 201 S. Main St. Suite 2200 Salt Lake City, UT 84111 Lawrence R. Lieb Exergy Development Group of Idaho LLC 910W. Main Street, Ste. 310 Boise, ID 83702 Telephone: (208) 336-9793 Fax: (208) 336-9431 () Hand Delivered ( ) U.S. Mail ) Fax ( ) Fed. Express ( ) Email: jjewell@nuc.state.id.us ( ) Hand Delivered ( U.S. Mail ( ) Fax ( ) Fed. Express () Email: dmever@avistacorp.com ( ) Hand Delivered ) U.S.Mail ( ) Fax ( ) Fed. Express () Email: peter@richardsonandoleary.com ( ) Hand Delivered (jr) U.S. Mail ( ) Fax ( ) Fed. Express () Email: brian.dickrnan@pacificorp.com dean.brockbank@pacificorp.com ( ) Hand Delivered ) U.S. Mail ( ) Fax ( ) Fed. Express () Email: lrllal@sbcglobal.net (jJ5(&---' Barton L. Kline JOINT MOTION TO APPROVE STIPULATION AND TO DISMISS COMPLAINT-12 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 13 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-06-21 IDAHO POWER COMPANY ATTACHMENT NO. 1 TO JOINT MOTION Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 14 Barton L. Kline (ISB No. 1526) Lisa D. Nordstrom (TSB No. 5733) IDAHO POWER COMPANY 1221 West Idaho Street P.O. Box 70 Boise, ID 83707 Tel: 208-388-2682 Fax: 208-338-6936 Attorneys for Idaho Power Company Dean J. Miller (ISB No. 1968) McDEVITF & MILLER LIP 420 West Bannock Street P.O. BOX 2564-83701 Boise, Idaho 83702 Tel: 208-343-7500 Fax: 208-336-6912 joe@mcdevitt-miller.com Attorneys Cassia Wind Gulch Park LLC and Cassia Wind LLC BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASSIA GULCH WIND PARK LLC AND CASSIA WIND FARM LLC Complainants V. IDAHO POWER COMPANY Respondent Case No. IPC-E-06-21 SETTLEMENT STIPULATION 1. This Settlement Stipulation ("Stipulation") is entered into by and among the Complainants, Cassia Gulch Wind Park LLC and Cassia Wind Farm LLC (hereinafter jointly SETTLEMENT STIPULATION -1 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 15 and severally referred to as "Cassia"), and the Respondent, Idaho Power Company ("Idaho Power" or "the Company" and individually as a "Party" or collectively, "the Parties"). INTRODUCTION 2.The Parties agree this Stipulation represents a fair, just and reasonable compromise of the issues raised in Cassia's Complaint filed herein and this Stipulation is in the public interest. The Parties believe this Stipulation, and its acceptance by the Idaho Public Utilities Commission (the "Commission"), represents a reasonable resolution of the issues identified in this matter. The Parties, therefore, recommend that the Commission, in accordance with Rule of Procedure (RP) 274, approve this Stipulation and all of its terms and conditions without material change or condition. BACKGROUND 3.Each of the wind energy projects to be developed by Cassia Wind Park LLC and Cassia Wind Farm LLC (collectively, the "Cassia Projects") are Qualifying Facilities ("QFs") within the meaning of the Public Utility Regulatory Policies Act of 1978 ("PURPA"). Each of the Cassia Projects has signed Commission-approved Firm Energy Sales Agreements ("FESAs") with Idaho Power. See Case No. IPC-E-06-10; Order No. 30086; Case No. IPC-E-06-1 1; Order No. 30086. Each of the Cassia Projects will sell its entire output to Idaho Power and, accordingly, the interconnection of the Cassia Projects is under the jurisdiction of the Commission and is, other than as provided for in this Stipulation, subject to Schedule 72 of Idaho Power's IPUC No. 28 Tariff No. 101. 4.A number of generation projects seeking Network Resource Interconnection Service, (as that term is defined in FERC Order 2003 and Idaho Power's FERC approved Open Access Transmission Tariff ("OATT")) including the Cassia Projects, propose to interconnect to SETTLEMENT STIPULATION -2 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 16 the portion of Idaho Powers transmission system where the Cassia Projects are located in the Twin Falls area, and have submitted interconnection requests to Idaho Power during the period January 1, 2005 through June 29, 2006 (collectively, the 'Requests" or "Requesting Projects"). The Requests include (1) interconnection of PURPA QF projects, under jurisdiction of the Commission, (2) interconnection of non-qualifying generation facilities, under FERC jurisdiction, and (3) interconnection of generation facilities planned by Idaho Power, under FERC jurisdiction. 5. In accordance with FERC Order 2003, Idaho Power's OATL and in the interest of maintaining comparability and economic efficiency in responding to the Requests, Idaho Power has established an "Idaho Power Queue" for generation interconnection projects. Exhibit A shows the Requesting Projects by project number in the order they made their interconnection request. Idaho Power has conducted a Generation Interconnection System Impact Study dated June 2006 ("the Study") to determine transmission system improvements required to interconnect the Requests ("Network Upgrades"). Idaho Power subsequently expanded the study to include an option, to be offered to each Requesting Project, to be subject to generation restriction, under specified line outage conditions, to a maximum level of energy output (generally "Redispatch' and specifically "Cassia Redispatch" as further defined in paragraph 9). The expanded Study is hereinafter referred to as the "Redispatch Study." In return for the ability to Redispatch the Requesting Projects, the Company has determined the associated reduced investment required to construct the needed Network Upgrades covering all the Requests in the Idaho Power Queue as of the filing date of this Stipulation. The cost under the Redispatch Study for each Request is shown on Exhibit A. Network Resource Interconnection Service, or its equivalent in the case of QF projects, would be provided to meet all the Requests in the Idaho SETTLEMENT STIPULATION -3 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 17 Power Queue. However, the cost of the required Network Upgrades allocated to Requesting Projects electing to be subject to Redispatch would be less on a per megawatt of Request capacity basis than for those Requesting Projects declining to be subject to Redispatch. The Company has applied the FERC Large Generator Interconnection Procedures (LGIP) and Small Generator Interconnection Procedures (SGIP), as appropriate, in responding to the Requests. The position of a generator in the Idaho Power Queue is determined by the date of the generator's request for interconnection filed with Idaho Power's delivery business unit. The Cassia Projects are in the Idaho Power Queue. 6.Cassia is ready and willing to start immediate construction of the Cassia Projects. One or more Requesting Projects which precede or follow Cassia in the Idaho Power Queue are not yet prepared for immediate construction or may not be constructed at all. 7.Pursuant to the Redispatch Study, Idaho Power has identified five phases of Network Upgrades that are necessary to provide Network Resource interconnection service for all the Requests listed in Exhibit A. 8.This Stipulation sets forth the basic principles of a settlement agreement between Cassia and Idaho Power. Upon approval of this Stipulation by the Commission, consistent with the provisions of Schedule 72, Cassia and Idaho Power will negotiate definitive interconnection agreements (the "Interconnection Agreement"), and amendments or addenda to the FESAs and other documents or instruments that may be required that conform to this Stipulation. TEEMS OF THE STIPULATION 9.Cassia Redispatch: The maximum level of power to be generated by the Cassia Projects at any moment depends on the number of turbines synchronized to the grid and ready to generate and on the wind speed at that time (the "Maximum Hourly Output"). The Cassia SETTLEMENT STIPULATION 4 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 18 Projects will, at their sole expense, install, operate and maintain the equipment and communications facilities necessary to enable the Maximum Hourly Output to be reduced to a not-to-exceed set point, to be determined by Idaho Power, within ten (10) minutes of when Idaho Power calls for the reduction to the set point (" Cassia Redispatch"). Cassia Redispatch cannot and shall not be asked to increase the output above such Maximum Hourly Output for the then existing turbine and wind conditions. Cassia Redispatch will normally, subject to those conditions, seek to maximize the energy output for the Cassia Projects, but Cassia Redispatch will limit the output of the Cassia Projects whenever the Maximum Hourly Output level would otherwise exceed the required Set point in any scheduling hour. 10. Cassia Cost Risk for Network Upgrades: Exhibit B to this Stipulation sets out the Network Upgrades and their budgetary estimated costs based on the Study and the Redispatch Study to interconnect the Requesting Projects with and without being subject to Redispatch. The Network Upgrade costs will be allocated to each Requesting Project, including the Cassia Projects, based on: a) their election of whether to be subject to Redispatch, b) their order in the Idaho Power Queue, and c) based on the megawatt interconnection capacity of each Requesting Project, their prorata share of the cost for the Network Upgrade required to interconnect one or more Requesting Project and the interconnection capacity that the particular Network Upgrade adds. The Cassia Projects will be obligated under this Stipulation and under the Interconnection Agreement, which shall conform to this Stipulation and shall be subsequently entered into by Cassia and Idaho Power, to pay non-reimbursed amounts of no more than 25% of the actual as-constructed cost of the Cassia Project's currently allocated share of the Network Upgrades listed in Exhibit B as required to interconnect the Cassia Projects without Cassia Redispatch. SETTLEMENT STIPULATION -5 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 19 11. Cassia Redispatch Rights: Idaho Power may issue a set point or limit and initiate Cassia Redispatch to respond to transmission system emergencies, or respond to circumstances where the transmission line(s) specified in Exhibit C are out of service and for which Cassia Redispatch was determined necessary and did lower the amount of Network Upgrade cost obligation for Cassia. In most circumstances, Cassia Redispatch will not be required where all the lines specified in Exhibit C are in service. Any use of Cassia Redispatch to establish a set point below the Cassia Project capacity shall be pro-rata with other Requesting Projects subject to Redispatch. Idaho Power will not purchase or pay for energy which would have been produced by the Cassia Projects, but for operation of Cassia Redispatch. 12.Responsibility for Network Upgrade Costs: In addition to funding all costs of directly interconnecting the Cassia Projects to Idaho Power's system, Cassia will pay its pro-rata share of the Network Upgrade costs actually incurred by Idaho Power to provide firm Network Resource Interconnection Service to Cassia for the Cassia Projects and Cassia shall not be obligated to share the on-going operation and maintenance costs of such Network Upgrades. Cassia recognizes that the final cost of its share of the Network Upgrades will not be known until construction is completed. Cassia also recognizes that its share of the final Network Upgrade cost will increase or decrease, subject to the provisions of paragraph 10, depending on whether other projects, both earlier and later in the Idaho Power Queue are constructed. The examples shown in Exhibit B illustrate, on a hypothetical basis, how these costs can change. 13.Sharing of Network Upgrade Costs: A. Cassia and Idaho Power will share the five phases of Network Upgrade costs attributable to the Cassia Projects as follows: SETTLEMENT STIPULATION .6 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 20 1.Phase 1: Idaho Power will assume 100% cost responsibility for Phase 1 and include this cost in its rate base. 2.Phases 2, 3, 4 and 5: (a)25% of the costs will be provided by Cassia as a non-refundable contribution in aid of construction ("CIAC"). (b)25% of the costs will be funded by Idaho Power and included in Idaho Power's rate base. (c)50% of the costs will be funded by Cassia as an advance in aid of construction ("AIAC") subject to refund as provided in section 14 below. As refunds are made, the refunded amounts will be included in rate base using standard regulatory accounting principles. B.As projects in the Idaho Power Queue are interconnected, Idaho Power will reallocate the CIAC and AJAC portions of the costs of Phases 2 through 4. For example, when additional projects in the Idaho Power Queue are constructed after the Cassia Projects are constructed, Idaho Power will collect monies from these subsequent projects and refund monies to Cassia. It is Idaho Power's intent that each QF Project in the Idaho Power Queue will pay its respective pro-rata share, based on nameplate generation capacity, of each phase of the Network Upgrade they utilize. Tables B-7, 8, 9 and 10 in Exhibit B illustrates how this re-allocation would occur on a hypothetical basis. C.Idaho Power will accelerate refunds of AIAC advances if, prior to the construction of the Network Upgrades described in Exhibit A, the Commission authorizes Idaho Power to construct alternative transmission facilities that would eliminate or reduce the costs of Network Upgrades. SETTLEMENT STIPULATION -7 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 21 14.Refund Provisions: Cassia will be entitled to a cash repayment, in monthly, equal installments, for the total AIAC amount Cassia advances to Idaho Power for Network Upgrades, including any tax gross-up or other tax related payments associated with the AJAC for Network Upgrades. Reimbursement will occur over a term not to exceed ten (10) years after the date the Cassia Projects achieve commercial operation. Payment of such repayments in any month will be contingent on the FESA's being in good standing (no uncured defaults) and Cassia achieving a mechanical availability in that month in excess of 50%, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to generate in each hour, over all hours of the month, divided by (2) the installed capacity multiplied by the number of hours in the month. In computing the mechanical availability, the capacity available in each hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force majeure, (as that term is defined in the FESA) or a reduction in generation due to Cassia Redispatch required by Idaho Power as described in paragraphs 5 and 9. 15.Interest on Refunds: Monthly refund payments on AIAC amounts shall include interest calculated in accordance with the methodology set forth in FERC regulations at 18 C.F.R. 35.19a(a)(2)(iii) from the date of any payment for Network Upgrades through the date on which Cassia receives repayment. 16.No effect on 90-110: Production of energy forgone because of curtailments ordered by Idaho Power, as provided in paragraph 11, will not be considered in the calculation of Surplus Energy as defined by paragraph 1.25 of the FESAs. 17.Security for Payment: Until it is finally determined which of the Projects in Exhibit A will be constructed and interconnected and the final cost of those interconnections is determined, upon executing an Interconnection Agreement which conforms with this Stipulation, SETTLEMENT STIPULATION -8 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 22 Cassia will provide and maintain a cash escrow or a letter of credit to Idaho Power in a form and by an issuer satisfactory to Idaho Power as security for payment, initially in the amount of Cassia's allocation of Network Upgrade costs as stated in Exhibit B and adjusted from time to time pursuant to the status of the Requests in Exhibit A. The total security amount at any time will not exceed the amount that would be owed if the Requests then remaining in the Idaho Power Queue that are scheduled for construction later than the Cassia Projects are not constructed. Other QF participants in the Idaho Power Queue will be held to a similar requirement. 18. Cassia Redispatch Protocols: The Interconnection Agreement will provide for interconnection of the Cassia Projects to the Idaho Power transmission system with Network Resource Interconnection Service in accordance with this Stipulation. However, Cassia acknowledges that, until sufficient Network Upgrades are installed to allow the Cassia Projects to qualify for Network Resource Interconnection Service, the Cassia Projects will be subject to Cassia Redispatch as described in paragraphs 5 and 9. The Interconnection Agreement will provide additional detail regarding the protocols for Redispatch of the Cassia Projects energy generation and the other Requesting Projects in Exhibit A. Cassia Redispatch will not be initiated for the sole purpose of reducing Idaho Power's costs but Idaho Power will take economic principles into account when making a determination asto which Network Resources, as between the Cassia Projects and other resources in Exhibit A that may be subject to Redispatch that reduced Network Upgrade costs and other Network Resources, should be reduced to comply with transmission congestion reduction orders. Idaho Power will not be obligated to compensate Cassia for any energy curtailed in accordance with Cassia Redispatch. SETTLEMENT STIPULATION -9 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 23 19.Network Upgrade Cost Determination: Network Upgrade costs, allocated to the Cassia Projects for initial funding, will be determined in a comparable manner and with the same criteria used by Idaho Power when studying the interconnection of other generation, whose output can be changed within ten (10) minutes, at other locations on its transmission system. Upon request by the Cassia Projects, Idaho Power will provide a written explanation of the methods and assumptions leading to any such allocation of Network Upgrade cost obligation to the Cassia Projects. 20.Request Uncertainty: Idaho Power will follow good utility practice, the LGIP and SOil', and all Commission orders in processing the Idaho Power Queue. Any Requests that fail to meet those requirements to remain in the Idaho Power Queue, or fail to proceed to construct their interconnection or fail to initially fund or secure their allocated share of the Network Upgrade costs, will forfeit their position in the Idaho Power Queue and their rights to the interconnection and transmission system capacity associated with their Request. 21.Cassia Project Responsibility for Network Up2rade Costs: Idaho Power will initially and throughout the life of the Cassia Projects, consistent with good utility practice, determine the least cost solution, given the current status of the Requests in the Idaho Power Queue, that will result in the lowest reasonable allocation of initial funding responsibility for Network Upgrades to the Cassia Projects. Idaho Power will apply the same criteria to all QF Projects in the Idaho Power Queue. 22.Reasonable Compromise: The Parties agree that this Stipulation represents a compromise of the positions of the Parties in this case. As provided in RP 272, other than any testimony filed in support of the approval of this Stipulation, and except to the extent necessary for a Party to explain before the Commission its own statements and positions with respect to SETTLEMENT STIPULATION -10 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 24 this Stipulation, all statements made and positions taken in negotiations relating to this Stipulation shall be confidential and will not be admissible in evidence in this or any other proceeding. 23.Best Efforts for Approval: The Parties submit this Stipulation to the Commission and recommend approval in its entirety pursuant to RP 274. The Parties shall support this Stipulation before the Commission and no Party shall appeal a Commission Order approving this Stipulation or an issue resolved by this Stipulation. If this Stipulation is challenged by any person not a party to this Stipulation, the Parties to this Stipulation reserve the right to file testimony, cross-examine witnesses and put on such case as they deem appropriate to respond fully to the issues presented, including the right to raise issues that are incorporated in the settlements embodied in this Stipulation. Notwithstanding this reservation of rights, the Parties to this Stipulation agree that they will continue to support the Commission's adoption of the terms of this Stipulation. 24.Ri2ht to Withdraw: If the Commission rejects any part or all of this Stipulation, or imposes any additional material conditions on approval of this Stipulation, each Party reserves the right, upon written notice to the Commission and the other Parties to this proceeding, within 7 days of the date of such action by the Commission, to withdraw from this Stipulation, and each Party shall be entitled to seek reconsideration of the Commission's Order, file testimony as it chooses, cross-examine witnesses, and do all other things necessary to put on such case as it deems appropriate. In such case, the Parties immediately will request the prompt convening of a preheating conference for purposes of establishing a procedural schedule for the completion of the case. The Parties agree to cooperate in development of a schedule that concludes the SETTLEMENT STIPULATION -II Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 25 proceeding on the earliest possible date, taking into account the needs of the Parties in participating in hearings and preparing briefs. 25.Public Interest: The Parties agree that this Stipulation is in the public interest and that all of its terms and conditions are fair, just and reasonable. 26.Commission Approval: The obligations of the Parties under this Stipulation are subject to the Commission's approval of this Stipulation in accordance with its terms and conditions. 27.Counterparts: This Stipulation may be executed in counterparts and each signed counterpart shall constitute an original document. Respectfully submitted this day of June 2007. MCDEVITT & MILLER LLP IDAHO POWER COMPANY Dean J. Miller BartoA L Kline Attorneys for Cassia Attorneys for Idaho Power Company SETTLEMENT STIPULATION -12 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 26 I:] a. IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-06-21 IDAHO POWER COMPANY EXHIBIT A TO SETTLEMENT STIPULATION Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 27 Exhibit A 0 The Table A-i lists the generation interconnection queue projects that are currently in active status. Table A-i: Generation interconnection queue Queue Position Date of Request Status of Request Service Type Location Total 1!Q Station or Trans Line for P01 Projected In-Service Date Fuel Type 114 11/16/04 Construction PURPA Gooding County Dale 044 35kV feeder 7/1/07 Animal waste 116 1/13/05 FSA PURPA tTwln Falls County 10.5 Fossil Gulch 041 35 kV feeder on 138kV Bliss-King 12/31/07 Wind 117 1/13/05 FSA PURPA Twin Falls County 101.5 New Tuana substation on 138kV Bliss-King 12/31/07 Wind 128 5/26/05 FSA PURPA Twin Falls County 10.5 New Tuana substation on 138kV Buss-King 2/1/08 Wind 134 6/16/05 FSA PURPA Twin Falls County 18.9 New substation on 138kV Bliss-King 2/1/08 Wind 135 6/17/05 IFSA PURPA Twin Falls County 20 Blue Gulch 04235 kV feeder 12/31/07 Wind 136 6/23/05 FSA NR Twin Fails County 64 Cliff Substation 9/30/10 Hydro 154 12/12/05 Construction PURPA Twin Fails County .2.3 46 kV Low Line Canal Tap 6/1/07 Hydro 155 12/19/05 FSA PURPA Cassia County 11.62 Golden Valley ol3l3kVfeeder 10/1/07 Wind 157 12/19/05 FSA PURPA Cassia County 18 Milner 04335kVfeeder 10/1/07 1 Wind 158 12/19/05 FSA PURPA Lincoln County 18 Notch Butte 01112.5 kV feeder 10/1/07 Wind 159 12/19/05 FSA PURPA Twin Fails County 18 Dale 043 (or Blue Gulch 042)35 kV feeder 12/1/07 Wind 170 6/29/06 Construction PURPA rwin Fails County 1 Fossil Gulch 041 35 kV feeder 6/1/07 Wind 0) 0 0. 0 .zm >< CD' (0 - CD -' - C)r 08 CO 0 C.3 CO A-i BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-06-21 IDAHO POWER COMPANY EXHIBIT B TO SETTLEMENT STIPULATION Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 29 Exhibit B The System Impact Study for the addition of generation to the 138 kV transmission system west of Twin Falls produced the transmission network upgrades identified in Table B-i. The allocation of project capacity to the network upgrade phases is shown in Table B-2 and the allocation of project cost per phase is shown in Table B-i i awe j5- 1: iransmission upgracie projects wim no generation reaispatcfl Total Phase Capacity Capacity ct Phase Available (MW) Added (MW) Cost r Salmon Series Reactor 1 7 7 $ 290,000 r Malad Series Reactor 2 60 53 $ 290,000 230/138 Transformer 3 135 75 $10,320,000 nductor Midpoint Dram 230 kV line 4 305 170 $47,525,000 Table B-2: Project capacity allocation by network upgrade phase with no generation n-Aignatrh Allnr Atirm neenmina n11 .s,-n;'f -]~tA r'nfr,,,-tin,, Project No. Capacity Phase I Phase 2 Phase 3 Phase 4 Phase i Total 114 iC 7 3 10 116 10.5 10.1 10.5 117 101.5 39.5 62 101.5 128 10.5 10.5 10.5 134 18.9 2.5 16.4 18.9 135 20 20 20 136 64 64 64 154 2.3 2.3 2.3 155 18 18 18 157 18 18 18 158 18 18 18 15 18 13.3 4.7 1 170 1 1 1 Totals 316.7F 7 53 71 170 5.7 310.7 B-i Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 30 Exhibit B Table B-3: Project cost allocation by network upgrade phase with no generation redisnatch. allocation assuming all nroiects comniete construction Project No. Capacity Phase I Phase 2 Phase 3 Phase 4 Phase 5 Total 114 10$ - $ 16,415 $ - $ - $ 16,415 116 10.5 $ 57,453 $ - $ - $ 57,453 117 101.5 $216,132 $ 8,531,200 $ - $ 8,747,332 128 10.5 $ - $ 1,444,800 $ - $ 1,444,800 134 18.9 $ - $ 344,000 $ 4,584,765 $ 4,928,765 135 20 $ - $ - $ 5,591,176 $ 5,591,176 136 64 $ - $ - $17,891,765 $17,891,765 154 2.3 $ - $ - $ 642,985 $ 642,985 155 18 $ - $ - $ 5,032,059 $ 5,032,059 157 18 $ - $ - $ 5,032,059 $ 5,032,059 158 18 $ - $ - $ 5,032,059 $ 5,032,059 159 18 $ - $ - $ 3,718,132 $ 3,718,132 170 1 $ - $ - $ - $ - Totals 310.71$ - $290,000 $10,320,000 1$47,525,000 $ - $58,135,000 The System Impact Study for the addition of generation, with ability to redispatch the generation, to the 138 kV transmission system west of Twin Falls produced the transmission network upgrades identified in Table B-4. The allocation of project capacity to the network upgrade phases is shown in Table B-S and the allocation of project cost per phase is shown in Table B-6. laNe 13-4: 'lransrmssion upgrade projects with generation redispatch Total Phase Capacity CapaciW Project Phase Available (MW) MW added Cost Upper Salmon Series Reactor 1 42 42 $ 290,000 Lucky Peak Series Reactor 2 94 52 $ 290,000 Lower Malad Series Reactor 3 153 59 $ 290,000 Midpoint 1/3 Series Capacitor Bypass 4 156 3 $ 100,000 King 230/138 Transformer 5 330 174 $10,320,000 Total $11,290,000 B-2 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 31 Exhibit B Table B-5: Project capacity allocation by network upgrade phase with all projects committing to redisnatch, allocation assuming all projects complete construction Project No. Capacity Phase I Phase 2 Phase 3 Phase 4 Phase 5 Total 114 10 10 10 hr 10.5 10.5 10.5 117 101.5 21.5 52 28 101.5 128 10.5 10J 10.5 134 18.9 18.9 18.9 13 20 15 20 131' 64 64 64 154 2.3 2.3 2.3 1551 11.62 11.62 11.62 157 18 18 18 158 18 18 18 159 18 18 18 17! 1 1 1 lotals 304.32 421 52 591 31 148.321 304.32 Table B-6: Project cost allocation by network upgrade phase with all projects committing toredispatch, allocation assumine all nroiects comnlete construction Project No. Capacity Phase I Phase 2 Phase 3 Phase 4j Phase 1' Total 114 10 $ - $ - $ - $ -'$ - $ - 116 10. $ - $ - $ - $ - $ 117 101. $ 290,000 $ 137,627 $ - $ - $ 427,627 128 10. $ - $ 51,610 $ - $ - $ 51,610 134 18.9 $ - $ 92,898 $ - $ - $ 92,898 131 20 $ - $ 7,864 $ 100,000 $ 1,051,815 $ 1,159,679 136 64 $ - $ - $ - $ 4,371,179 $ 4,371,179 154 2. $ - $ - $ - $ 157,089 $ 157,089 1551 11.62 $ - $ - $ - $ 793,642 $ 793,642 157 1 $ - $ - $ - $ 1,229,394 $ 1,229,394 158 18 $ - $ - $ - $ 1,229,394 $ 1,229,394 159 18 $ - $ - $ - $ 1,229,394 $ 1,229,394 170 1 $ - $ - $ - $ 68,300 $ 68,300 Totals 304.3: $ - $ 290,0001$ 290,0001$ 100,000 $ 10,130,207 $ 10,810,207 B-3 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners!, LLC Page 32 Exhibit B Table B-7 and B-8 demonstrate the adjustment of cluster project costs for the addition of generation, with ability to reclispatch the generation, based on project #117 hypothetically electing not to construct. Table B-7: Hypothetical project capacity allocation by network upgrade phase assuming project #117 is not constructed Project No. Capacit Phase I Phase 2 Phase 3 Phase 4 Phase 5 Total 114 10 10 10 116 10.5 10.5 10.5 117 0 128 10.5 10.5 134 18.9 11 7•9 18.9 135 21 20 20 136 64 24 40 154 2.3 2.3 2.3 155 11.62 11.62 11.62 157 18 5.18 3 9.82 18 158 18 1 18 159 18 18 11 170 1 1 1 [Totals 202.824 421 5211 591 46.82 202.82 Table B-8: Hypothetical project cost allocation by network upgrade phase assuming project #117 is not constructed Project No. Capacit Phase I Phase 2 Phase 3 Phase. Phase Total 11 11$ - $ - $ - $ - $ - $ - 11 10.5 $ - $ $ - $ - $ - 117 0 $ - $ - $ - $ - $ - 121 10.5 $ - $ - $ - $ - $ 134 18.9 $ 44,058 $ - $ - $ - $ 44,058 135 20 $111,538 $ - $ - $ - $ 111,538 136 64 $134,404 $196,119 $ - $ - $ 330,522 154 2.3 $ - $ 11,305 $ - $ - $ 11,305 155 11.62 $ - $ 57,115 $ - $ - $ 57,115 157 18 $- $ 25,461 $100,000 $2,124,704 $2,250,165 158 ii $ - $ - $ - $3,894,569 $3,894,569 159 ii $ - $ - $ $ 3,894,569 $3,894,569 170 1 $ - $ - lotals $ - $ 216,365 $ 216,365 202.82$ - $290,000 $290,000 $ 100,000 $10,130,207 $10,810,207 B-4 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 33 Exhibit B Table B-9 and B-10 demonstrate the adjustment of cluster project costs for the addition of generation, with ability to redispatch the generation, based on projects #135 through #170 hypothetically electing not to construct. Table B-9: Hypothetical project capacity allocation by network upgrade phase assuming projects #135 through #170 are not constructed Project No. Capacity PhaseI Phase Phase Phase Phase 5 Total 114 iC 1( 116 10.5 10.5 10.5 117 101.5 21.5 52 21 101.5 128 10.5 10.5 10.5 134 18.9 18.9 18.9 135 ( 0 13€' 0 0 154 0 155 ( 0 157 0 0 158 0 15 0 .1. 0 170 ( 0 Totals 1 151.41 1 57.4 0 151.4 Table B-10: Hypothetical project cost allocation to network upgrade phase assuming Projects #135 through #170 are not constructed Project No. Capacity Phase I Phase 2 Phase 3 Phase 4 Phase 5 Total 114 10 0$ - $ - $ - $ - $ - 11€' 10.5 $ - $ - $ - $ - $ - 117 101.5 $290,000 $141,463 $ - $ - $431,463 128 10.t $ - $ 53,049 $ - $ - $ 53,049 134 18.9 $ - $ 95,488 $ - $ . $ 95,488 135 0 $ - $ . $ $ - $ - 136 0 $ - $ - $ - $ - $ - 154 0 $ - $ - $ - $ - $ - 155 0 $ - $ - $ - $ - $ - 157 0 $ - $ - $ - $ - $ 158 0 $ - $ - $ - $ - $ - 159 0 $ - $ - $ - $ - $ - 170 0 $ - $ - $ - $ - $ - Totals 151.41$ - $290,000 $290,000 $ - $ - $580,000 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 34 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-06-21 IDAHO POWER COMPANY EXHIBIT C TO SETTLEMENT STIPULATION Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 35 Exhibit C The following Idaho Power network transmission facilities have been identified to be affected by the addition of the Requesting Projects in the Twin Falls area. An outage of any of these facilities may result in over loads on the remaining facilities. Such outages may require the initiation of the Cassia Redispatch. Boise Bench - Midpoint 230 kV transmission line Boise Bench - Rattle Snake 230 kV transmission line Rattle Snake - Midpoint 230 kV transmission line Dram - Midpoint 230 kV transmission line Hubbard - Danskin 230 kV transmission line King 138/230 kV transformer Danskin - Mountain Home Junction 138 kV transmission line Upper Salmon - Mountain Home Junction 138 kV transmission line Lower Malad - Mountain Home Junction 138 kV transmission line Upper Salmon - Mountain Home Junction 138 kV line reactor Lower Malad - Mountain Home Junction 138 kV line reactor Lucky Peak - Mountain Home Junction 138 kV line reactor c-I Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 36 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-06-21 IDAHO POWER COMPANY ATTACHMENT NO. 2 TO JOINT MOTION Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 37 BARTON L KLINE Senior Attorney June , 2007 Re: QF Interconnection Agreements Involving Network Upgrades Dear Our records indicate that you may have an interest in developing a co-generation or small power production facility ("Qualifying Facility" or "OF") and selling the energy to Idaho Power. As part of that development process, it will be necessary for you to obtain an Interconnection Agreement from Idaho Power's Delivery Business Unit. As a part of the interconnection review process, the Company's Delivery Business Unit will consider whether it will be necessary to upgrade Idaho Power's transmission system in order to accommodate energy deliveries from your project ("Network Upgrades"). As you may be aware, there is currently pending before the Idaho Public Utilities Commission a proceeding in which the Commission has been asked by OF wind developers, Cassia Wind Farm and Cassia Gulch Wind Park ("Cassia") to decide whether they should be responsible for funding Network Upgrades to Idaho Power's transmission system. (IPUC Case No. IPC-E-06-21). That case is fully submitted to the Commission. While awaiting a Commission decision, Idaho Power and Cassia have negotiated with each other in good faith to resolve the issue of cost responsibility for Network Upgrades. As a result of those negotiations, Idaho Power and Cassia have entered into a Stipulation which settles all of the issues of cost responsibility for Network Upgrades in a manner that is acceptable to Cassia, Cassia's financier John Deere Credit and Idaho Power. If the Commission accepts the Stipulation, it will resolve Case No. IPC-E-06-21. While this Stipulation is between Idaho Power and Cassia, Idaho Power is requesting that the Commission allow the Company to utilize the terms and conditions contained in the Stipulation as a template for developing interconnection agreements with other qualifying facilities where Network Upgrades are required for interconnection. Attachment 2 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 38 June ,2007 Page 2 Enclosed for your review is a copy of the Stipulation and the Joint Motion to Approve the Stipulation filed by Idaho Power and Cassia. As noted in the Motion, Idaho Power believes that the terms and conditions in the Settlement Agreement are reasonable and should be applied to all future interconnections where Network Upgrades are required. If you have any questions regarding the terms and conditions in the Stipulation that you would like to direct to Idaho Power, please email Dave Angell at danqell@idahoDower.com . If you desire to provide comments to the Commission regarding the Joint Motion, the Stipulation and Idaho Power's request that the Commission authorize the Company to apply the terms and conditions of the Stipulation to future interconnection agreements between Idaho Power and QFs, you should go to the Commission's website for instructions on how to provide comments. The Commission will be issuing a Notice of Request for Public Comment on the Motion and Stipulation in the near future. You may want to contact the Commission and have them put you on their mailing list for receipt of notices regarding this proceeding. Very truly yours, Barton L. Kline BLK:sh Attachment 2 Exhibit 2119 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 39 19991204-0152 FERC PDF(Unofficial) 02/19/1980 tocket No. 1*179-55 L. 75 - S 292.303(f) Peri9d ....c!ri!q which purchase ,are not required. The proposed rule provided that an electric utility will not be required to purchase energy and capacity from quali- fying facilities during periods in which such purchases will result in net increased operating costs to the electric utility. This section was intended to deal with a certain condition which can occur during light loading periods. If a utility operating only base load unite during these periods were forced to cut back output from the units in order to accommodate purchases from qualifying facilities, these base load units might not be able to increase their output level rapidly when the system demand later increased. As a result, the utility would be required to utilize less efficient, higher cost units with faster Start-up to most the demand that would have been supplied by the lees expen- sive base load unit had it been permitted to operate at a constant Output. The result of such a transaction would be that rather than avoiding costs as a result of the purchase from a qualifying facility, the purchasing electric utility would incur greater costs than it would have had it not purchased energy or capacity from the qualifying facility. A strict application of the avoided cost principle set forth in this section would assess these additional costs as negative Exhibit 2120 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 1 19991204-0152 FERC POF (Unofficial) 02/19/1980 Docket No. RM79-55 - 76 - avoided costs which must be reimbursed by the qualifying facility. In order to avoid the anomalous result of forcing a qualifying utility to pay an electric utility for purchasing its output, the Commission proposed that an electric utility be required to identify periods during which this situation would occur, so that the qualifying facility could cease delivery of electricity during those periods. Many of the comments received reflected a suspicion that electric utilities would abuse this paragraph to circumvent their obligation to purchase from qualifying. facilities. In order to minimize that possibility, the Commission has revised this paragraph to provide that any electric utility which seeks to cease purchasing from qualifying facilities most notify each affected qualifying facility prior to the occurence of such a period, in time for the qualifying facility to cease delivery of energy or capacity to the electric utility. This notification can be accomplished in any reasonable manner determined by the State regulatory authority. Any claim by an elec- tric utility that such a light loading period will occur or has occurred is subject to such verification by its State regulatory authority as the State authority determines necessary or appropriate either before or after its occur- rence. Moreover, any electric utility which falls to pro- Exhibit 2120 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 2 19991204-012 FERC PDF (Unofficial) 02/19/1980 Docket No. RM79-55 - 77 - vide adequate notice or which incorrectly identifies such a period will be requited to reimburse the qualifying facility for energy or capacity supplied as if such a light loading period had not occurred. The section has also been modified to clarify that such periods must be due to operational circumstances. The Commission does not intend that this paragraph override contractual or other legally enforceable obliga- tions incurred by the electric utility to Purchase from a qualifying facility. In such arrangements, the estab- lished rate is based on the recognition that the value of the purchase will vary with the changes in the utility's operating costs. These variations ordinarily are taken into account, and the resulting rate represents the average value of the purchase over the duration of the obligation. The occurrence of such periods may similarly be taken into account in determining rates for purchases. Tx Issues The conference Report states that: • the examination of the level of rates which should apply to the purchase by the utility of the cogeneratoc's or the small power producer's power should not be burdened by the same examination as are utility rate applications to determine what is the lust Exhibit 2120 GNR-E-1 1-03 R. Guy: Idaho Wind Partners I, LLC Page 3