20031114Amended Application.pdf

BARTON L. KLINE , ISB # 1526
MONICA MOEN , ISB # 5734
Idaho Power Company
1221 West Idaho Street
P. O. Box 70
Boise , Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
RECEIVED (IiFILED
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FU::;L!C
UTILI't!ES COt'\r'iISSION
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE AMENDED
APPLICATION OF IDAHO POWER COMPANY)
FOR APPROVAL OF AN AGREEMENT FOR
SALE AND PURCHASE OF SURPLUS ELECTRIC ENERGY BETWEEN
IDAHO POWER COMPANY AND THE
AMALGAMATED SUGAR COMPANY, LLC
CASE NO. IPC-03-
AMENDED APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or the "Company
and hereby submits this Amended Application and respectfully requests that the Idaho
Public Utilities Commission ("IPUC" or the "Commission ) issue an Order approving an
Agreement for Sale and Purchase of Surplus Energy between Idaho Power and The
Amalgamated Sugar Company, LLC ("TASCO"). Pursuant to this Agreement, TASCO
desires to sell and Idaho Power agrees to purchase non-firm surplus energy generated
by T ASCO's Nampa electric generation facility that is to operate in parallel with Idaho
Power s system under the terms and conditions of the Agreement for Sale and
Purchase of Surplus Energy between Idaho Power and TASCO.
AMENDED APPLICATION - 1
This Amended Application incorporates by reference the Application originally
submitted in this matter to the Commission on or about September 2 , 2003 (the
September 2 , 2003 Application ) with the exception that the Agreement attached to the
September 2 , 2003 Application should be replaced with the Agreement attached hereto as
Exhibit 1
II.
The terms of the Agreement provide that the Agreement will not become
finally effective until the Commission has approved the Agreement and declares that all
payments for surplus energy under the Agreement shall be allowed as prudently incurred
expenses for rate making purposes.
III.
Service of pleadings, exhibits, orders and other documents relating to this
proceeding should be served on the following:
Monica Moen
Idaho Power Company
O. Box 70
Boise, Idaho 83707
mmoen ~ idahopower.com
John P. Prescott
Vice President - Power Supply
Idaho Power Company
O. Box 70
Boise , Idaho 83707
jprescott ~ idahopower.com
NOW , THEREFORE , Idaho Power hereby requests that the Commission
issue its order:
(1 )Approving terms and provisions of the Agreement without change or
condition; and
(2)Declaring that all payments for purchases of energy under the
Agreement shall be allowed as prudently-incurred expenses for ratemaking purposes.
AMENDED APPLICATION - 2
Respectfully submitted this 10th day of November 2003.
~ ((3-
MONICA B. MOEN
Attorney for Idaho Power Company
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 10th day of November 2003 , I served a
true and correct copy of the within and foregoing APPLICATION upon the following
named parties by the method indicated below, and addressed to the following:
Lisa Nordstrom
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington Street
O. Box 83720
Boise, Idaho 83720-0074
Hand Delivered
S. Mail
Overnight Mail
FAX
Roy L. Eiguren
Givens, Pursley LLP
277 North 6th Street, Suite 200
P. O. Box 2720
Boise, Idaho 83701-2720
Hand Delivered
S. Mail
Overnight Mail
FAX
MONICA B. MOEN
AMENDED APPLICATION - 3
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O3-
IDAHO POWER COMPANY
EXHIBIT
AGREEMENT FOR SALE AND PURCHASE OF SURPLUS ENERGY
BETWEEN
IDAHO POWER COMPANY
AND THE AMALGAMATED SUGAR COMPANY , LLC
NAMPA FACILITY
THIS AGREEMENT is entered into on this 2nd day of October, 2003, by
The Amalgamated Sugar Company, LLC, a Delaware Limited Liability Company
authorized to do business in the State of Idaho (TASCO), and Idaho Power Company,
an Idaho corporation (Idaho Power or Company). T ASCO and Idaho Power are
hereinafter sometimes referred to collectively as Parties or individually as Party.
RECITALS
T ASCO owns and operates electric generation facilities at its
refined sugar production facility in Nampa, Idaho ("Nampa Plant") and carries a portion
of its electric loads at the Nampa Plant with its own on-site generation.
Idaho Power provides electric service to the Nampa Plant under
Idaho Power Schedule 19. TASCO takes service under Schedule 19 to supplement the
energy generated by TASCO's on-site generation.
TASCO currently purchases standby electric service for the Nampa
Plant from Idaho Power under the Agreement for Supply of Standby Electric Service
Between Idaho Power Company and The Amalgamated Sugar Company, LLC dated
April 6 , 1998 (Standby Agreement).
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T ASCO desires to sell to Idaho Power Surplus Energy from its on-
site generation and to operate the Nampa Plant and the Nampa Generator (hereinafter
defined) in parallel with Idaho Power s system under the terms and conditions of this
Agreement.
Within the parameters established in the Standby Agreement
Idaho Power is willing to allow TASCO to operate in parallel with Idaho Power and , as
provided in this Agreement, will purchase the Surplus Energy from the Nampa
Generator not otherwise consumed by T ASCO in the Nampa Plant.
THEREFORE, In consideration of the mutual covenants hereinafter set
forth and other good and valued consideration, the receipt and sufficiency of which is
hereby acknowledged, the Parties agree as follows:
SECTION 1 - DEFINITIONS
In addition to the previously defined Capitalized Terms , when used in this
Agreement , the following Capitalized Terms shall have the following meanings:
Commission" means the Idaho Public Utilities Commission or its
successor agency.
Contract Year" means the annual period from September
through August 31 of each calendar year.
Designated Dispatch Facility" means Idaho Power s Control Area
Operations Group, or any subsequent group designated by Idaho Power.
1.4 Disconnection Equipment" means any device or combination of
devices by which Idaho Power can manually and lor automatically interrupt the flow of
energy between the Nampa Generator and Idaho Power s system , including enclosures
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or other equipment as may be required to ensure that only Idaho Power will have
access to the devices. The Disconnection Equipment is part of the Interconnection
Facilities described in Paragraph 1.
Fiber Optic Communications Equipment" means the fiber optic
signal cable and converters required to coordinate the Disconnection Equipment and
Interconnection Facilities protective relays and to provide the instantaneous telemetry of
the power flows at the Point of Delivery as required by Idaho Power s dispatchers.
Interconnection Facilities" means all facilities which are reasonably
required by Prudent Electrical Practices and the National Electric Safety Code to
interconnect and deliver power and energy to the Nampa Plant and to physically and
electronically interconnect to receive energy generated by T ASCO's Nampa Generator
to Idaho Power s system. The Interconnection Facilities include, but are not limited to,
Special Facilities , Disconnection Equipment, Communications Equipment , Fiber Optic
Communications Equipment and Metering Equipment.
Metering Equipment" means the equipmE3nt required to measure
and record power flows between Idaho Power and the Nampa Plant and between the
Nampa Generator and Idaho Power s system.
Nampa Generator" means T ASCO's electric generation facilities
located at the Nampa Plant, consisting of 4 generators, with a combined nameplate
rating of 14.7 MW capable of delivering Surplus Energy to Idaho Power through a
single common Point of Delivery.
Point of Delivery" means the location where Idaho Power
Metering Equipment for the Nampa Plant is installed.
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1 .10 "Prudent Electrical Practices" means those practices, methods and
equipment that are commonly and ordinarily used in electrical engineering and utility
operation to operate electrical equipment and deliver electric power and energy with
safety, dependability, efficiency and economy.
Reliability Management System" or "RMS" shall mean the
contractual reliability management program implemented through the WECC Reliability
Criteria Agreement , Section 9 of this Agreement , and any similar contractual
arrangement.
1 .12 "Special Facilities" means additions or alterations of Idaho Power
transmission andlor distribution lines, transformers, apparatus, system protection
equipment and control equipment to safely interconnect the Nampa Generator to the
Company s system.
13 "Surplus Energy" means the electric generation of the Nampa
Generator not otherwise consumed by TASCO at the Nampa Plant, delivered to Idaho
Power at the Point of Delivery not to exceed the maximum allowed limit of 8.5 MW.
14 "Total Contract Demand" is measured at the Point of Delivery and
means the sum of the Standby Facilities Contract Demand as specified in the Standby
Agreement and the KV A of demand specified in the Uniform Large Power Service
Agreements (Schedule 19 Agreements).
SECTION 2 - WARRANTIES
No Warranty By Idaho Power. Any review , acceptance, or failure
to review TASCO's design, specifications, equipment or facilities associated with the
Nampa Generator or any TASCO-owned Interconnection Facility shall not be an
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endorsement or a confirmation by Idaho Power, and Idaho Power makes no warranties
expressed or implied, regarding any aspect of T ASCO's design, specifications
equipment or facilities, including but not limited to safety, durability, reliability, strength
capacity, adequacy or economic feasibility.
Equipment Protection . Idaho Power does not assume any
responsibility for the protection of the Nampa Generator. T ASCO is fully responsible for
protecting the Nampa Generator and its electrical equipment at the Nampa Plant from
faults or disturbances, negative sequence currents, reclosing, reverse power flows, or
single phasing on Idaho Power s system.
Qualifyinq Facility Status. T ASCO warrants that the Nampa
Generator is a qualifying facility as that term is used and defined in 18 CFR, Part 292.
Idaho Power Company at its discretion may request documents from T ASCO
supporting the Qualifying Facility Status and also reserves the right to audit the
associated and supporting records.
SECTION 3 - TERM AND TERMINATION
Term of Aqreement.The term of this Agreement shall be for five
(5) Contract Years from September 1 2003 and will automatically renew and extend
each year thereafter unless written notice of termination is given by either Party to the
other not less then six (6) months prior to the desired termination date.
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SECTION 4 - PURCHASE OF SURPLUS GENERATION
Deliveries and Acceptance of Surplus Enerqy.For the full term of
this Agreement , except when otherwise excused as provided in Paragraph 8.2 herein
Idaho Power will purchase the Surplus Energy delivered and accepted at the Point of
Delivery.
Estimated Monthly Surplus Enerqy Amounts.T ASCO will provide
Idaho Power with Estimated Monthly Surplus Energy Amounts to be delivered to Idaho
Power by March 31S\ for April 1 of the current year through March 31st of the following
year. The Estimated Monthly Surplus Energy Amounts for the first contract year of this
agreement are to be provided by September 1 , 2003.
Purchase Price.
Surplus Energy Purchase Price - The purchase price per
Kwh for Surplus Energy will be Eighty-five percent (85%) of
the Avoided Energy Cost as defined within Idaho Power
IPUC Schedule 86 andlor its successor schedules as those
schedules may be modified from time to time by
Commission order.
Adjusted Surplus Energy Purchase Price - If at the request
of Idaho Power T ASCO Generator agrees to provide
continuous energy at a designated MW level for an agreed
upon length of time, at a specific time, an Adjusted Surplus
Energy Purchase Price will be mutually agreed upon prior to
the commencement of the agreed upon energy deliveries
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and will only be in effect for the energy deliveries designated
as being eligible for the Adjusted Surplus Energy Purchase
Price. The Adjusted Surplus Energy Purchase Price will be
less than or equal to the Surplus Energy Price, unless Idaho
Power determines that the continuing operation of the Idaho
Power electrical system is in jeopardy or access to
alternative energy resources is not physically possible. In
the event, Idaho Power and T ASCO agree to an Adjusted
Surplus Energy Price, Idaho Power will notify the
Commission of the details of this agreement.
4.4 Enerqy Payment.The monthly calculated Energy Payment shall be
credited to TASCO in the form of a dollar credit to TASCO's Schedule 19 purchase of
energy and capacity for T ASCO's Nampa Plant.
SECTION 5 - INTERCONNECTION
Desiqn of Nampa Generator. T ASCO has designed , constructed
installed, and will own , operate and maintain the Nampa Generator. The Nampa
Generator and any T ASCO-furnished Interconnection Facilities shall be maintained in
accordance with Prudent Electrical Practices, the National Electric Code, the National
Electrical Safety Code, and any other applicable local , state , and federal codes so as to
allow safe and reliable delivery of electric energy to Idaho Power s system.
Interconnection Facilities . T ASCO has reimbursed the Company
for the cost of the Interconnection Facilities specified in Exhibit 1. Except for the
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Company-owned Interconnection Facilities specified in Exhibit 1 , TASCO has
constructed , installed, owns and will maintain all Interconnection Facilities. T ASCO will
reimburse the Company for the cost of future additions and modifications to the
Interconnection Facilities reasonably required by operation of the Nampa Plant andlor
the Nampa Generator andlor Prudent Electrical Practices. Exhibit 1 will be amended to
reflect any additional facility cost associated with such additions or modifications.
TASCO agrees to pay monthly the operation and maintenance charges associated with
the Company-owned Interconnection Facilities identified on Exhibit 1. The monthly
operation and maintenance charges shall be included with the monthly T ASCO
Schedule 19 billing.
The Interconnection Equipment as identified in Exhibit 1 was installed and
operational as of October 31 1998 under a previous energy purchase and sales
agreement. Therefore, the year to be used in the following table , to determine the
Monthly Operating and Maintenance Charges, will be calculated based upon the annual
period of November 1 thru October 31 , beginning with Year 5 on the following table
which shall be the period of November 1 2002 thru October 31 2003. The applicable
operation and maintenance charges are then determined by multiplying the cost of the
facilities identified on Exhibit 1 by the year s percentage rate specified below. In the
event the term of this agreement exceeds the number of years identified in this table
the percentage will be set at .70% for the remaining term of this Agreement.
MONTHLY OPERATING AND MAINTENANCE CHARGES
Year
0 & M Charge 26%27%28%29%30%32%33%35%
Year
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Year
0 & M Charge 36%38%.40%.41%.43%.45%.47%.49%
Year
0 & M Charge 52%54%56%59%59%64%67%70%
Idaho Power Review. To assure the Nampa Generator and
TASCO-furnished Interconnection Facilities are of suitable size and are compatible with
Idaho Power s system , TASCO has submitted the designs, plans, specifications and
performance data for the Facility and TASCO-furnished Interconnection Facilities to
Idaho Power for review. Idaho Power has accepted and confirmed that the provided
design, plans, specifications and performance data are compatible with the current
Idaho Power system. If any changes are made to the Nampa Generator or the
TASCO-furnished Interconnection Facilities, it is required that these changes be
submitted to Idaho Power, in writing, for review and acceptance prior to making said
changes. Idaho Power will review both the existing equipment and the requested
changes, consistent with Prudent Electrical Practices, and determine any necessary
changes to assure the safe delivery of electric energy from the Nampa Generator to
Idaho Power s system.
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SECTION 6 - DISCONNECTION EQUIPMENT
Disconnection Equipment.Idaho Power has, at TASCO's expense
provided, and will own , operate and maintain all Disconnection Equipment. Idaho
Power will establish the settings of Disconnection Equipment to disconnect
automatically from the Nampa Generator for the protection and operation of Idaho
Power s system and personnel consistent with Prudent Electrical Practices , and in
accordance with the Nampa Generator allowed Surplus Energy deliveries to Idaho
Power.
Excess Demand Warninq. If the Nampa Plant's load exceeds the
Total Contract Demand , andlor the Surplus Energy being delivered to Idaho Power at
the Point of Delivery exceeds the maximum allowed Surplus Energy, a signal will be
transmitted to TASCO via the Fiber Optic Communications Equipment. Should the
Nampa Plant's load continue to exceed the Total Contract Demand andlor the Surplus
Energy deliveries continue to exceed the allowed maximum Surplus Energy, eight (8)
seconds after the signal is transmitted , Idaho Power s service to the Nampa Plant and
interconnection to the Nampa Generator will disconnect automatically. This
disconnection will result in both the interruption of energy deliveries to the Nampa Plant
and interruption of energy deliveries from the Nampa Generator to Idaho Power.
Remote Disconnection. Other Disconnection Equipment , including
equipment which will provide Idaho Power s operating personnel with the ability to
remotely control the breaker or other disconnecting device by radio or hard-wire circuit
may be specified by Idaho Power when , in Idaho Power s reasonable judgment, such
equipment is required by Prudent Electrical Practices. T ASCO recognizes that such
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remote control equipment may not initially be required by Idaho Power, but at such time
as operating conditions on Idaho Power s system dictate, Idaho Power will install this
remote control equipment at TASCO's expense.
6.4 Interference with Disconnection Equipment.If T ASCO attempts to
modify, adjust, or otherwise interfere with the Disconnection Equipment or its enclosure
such action shall constitute grounds to cease parallel operation.
SECTION 7 - METERING
Meterinq. Idaho Power has provided, installed , and will maintain
the required Metering Equipment at the Point of Delivery to record and measure power
flows and kilovar-hours from Idaho Power to the Nampa Plant and from the Nampa
Generator to Idaho Power. All Metering Equipment and installation costs shall be borne
by T ASCO, including costs incurred by Idaho Power for inspecting and testing such
equipment at reasonable intervals, at Idaho Power s actual cost of providing this
Metering Equipment and services.
Meter Inspection . Idaho Power shall inspect all meters every six
(6) months and test all meters upon their installation and at least once every four (4)
years thereafter. Idaho Power will provide T ASCO reasonable advance notice of the
time Idaho Power will inspect and lor test such meters. If requested by T ASCO, Idaho
Power shall make a special inspection or test of a meter and T ASCO shall pay the
reasonable costs of such special inspection or test. Both Parties shall be notified of the
time when any test shall take place, and each Party may have representatives present
at the test. 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.
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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 made to
TASCO 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.
Telemetry. Idaho Power has installed , operates and will maintain
at T ASCO's expense , metering, communications and telemetry which will be capable of
providing Idaho Power with instantaneous telemetry of the measurement of power flows
at the Point of Delivery. TASCO recognizes that the power flow data provided by the
telemetry equipment is only for general indication purposes and will not be as accurate
or reliable as the data recorded by the Metering Equipment at the Point of Delivery.
ASCO further recognizes that Idaho Power makes no representations regarding the
accuracy or reliability of the power flow data received from the telemetry equipment.
ASCO assumes the risk for its operating decisions based on the power flow
information from the telemetry equipment. All billing and other determinations based on
power flows under this Agreement will be based solely on the recorded meter data from
the Metering Equipment at the Point of Delivery.
SECTION 8 - OPERATIONS
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Facility Maintenance . T ASCO has full responsibility for the
maintenance of the Nampa Generator and the TASCO-furnished Interconnection
Facilities protecting the Nampa Generator. If, in the opinion of Idaho Power, T ASCO
has failed to provide proper maintenance of the Nampa Generator or the T ASCO-
furnished Interconnection Facilities, and this failure could adversely impact Idaho Power
or other Idaho Power customers, Idaho Power can operate the Disconnection
Equipment to prevent parallel operation.
Enerqy Acceptance. Idaho Power shall be excused from accepting
and paying for Surplus Energy delivered by T ASCO from the Nampa Generator under
the following circumstances:
If it is prevented from doing so by any event of force
majeure.
If Idaho Power determines that curtailment, interruption or
reduction of Surplus Energy deliveries is necessary because
of line construction or maintenance requirements
emergencies, operating conditions on its system or as
otherwise required by Prudent Electrical Practices. To the
extent practicable, Idaho Power will attempt to provide notice
to TASCO in advance of any curtailment , interruption or
reduction.
3 T ASCO exceeds the maximum Surplus Energy as defined
within this Agreement.
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2.4 TASCO exceeds the Total Contract Demand as defined
within this Agreement.
If Idaho Power determines that TASCO is not in compliance
with any of the other requirements of Article 8 of this
Agreement.
Voltaqe Levels. When delivering Surplus Energy, T ASCO shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power.
Power output from and input to the facility shall be in accordance with the power quality
standards contained in IEEE Standards 141 (voltage flicker) and 519 (harmonics).
8.4 Generator Ramping . Idaho Power shall have the right to limit the
rate that generation at the TASCO Facility is changed at startup, during normal
operation or following reconnection to Idaho Power s system. Generation ramping may
be required to permit Idaho Power s voltage regulation equipment time to respond to
changes in power flow.
Reactive Power. While in Surplus Energy mode (exporting power to
Idaho Power Company), the Nampa Generator shall be operated to maintain a voltage
schedule, reactive schedule or power factor schedule , whichever is applicable, as
prescribed by Idaho Power within the Nampa Generator s reactive capabilities of the
generation equipment in operation. Idaho Power may request the Nampa Generator to
change its voltage schedule , reactive schedule or power factor schedule , whichever is
applicable, or request the Nampa Generator to supply its maximum available reactive
power output or absorb its maximum reactive power input (measured in MV AR) within
the capabilities of the generation equipment in operation at the time in order to maintain
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system security. The Parties recognize that the Nampa Generator will typically be able
to provide reactive power at no cost and, therefore, agree that the Nampa Generator
will provide reactive power to or absorb reactive power from Idaho Power within the
capabilities of the generation equipment in operation at the time at no charge to Idaho
Power. In the event the Nampa Generator is unable to consistently maintain required
reactive power capability at the Point of Delivery, the Nampa Generator shall take other
appropriate steps to configure the Nampa Generator to meet such requirements
including, as necessary, the installation of reactive power compensating devices subject
to prior review and approval by Idaho Power.
Scheduled Maintenance On or before March 31 of each year
T ASCO shall submit a proposed maintenance schedule for the next 12 months and
Idaho Power and T ASCO shall mutually agree as to the acceptability or unacceptability
of the proposed schedule. The Parties determination as to the acceptability of
T ASCO's timetable for scheduled maintenance will take into consideration Prudent
Electrical Practices and neither party shall unreasonable withhold its acceptance of the
proposed schedule.
Maintenance Coordination . The Parties shall , to the extent
practical , coordinate their respective facility maintenance schedules such that they
occur simultaneously.
Contact Prior to Curtailment. Idaho Power will make a reasonable
attempt to contact TASCO prior to exercising its rights to curtail , interrupt or reduce
Surplus Energy deliveries from the Nampa Generator. TASCO understands that, in
the case of emergency circumstances, notice may not be given to T ASCO prior to
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interruption , curtailment or reduction.
Performance measurements.T ASCO shall provide Idaho Power
Company with all performance measurements required by NERC, WECC, and the RTO
(if applicable) for compliance monitoring programs such as , but not limited to, the
Reliability Management System (RMS).
10 Operatinq Communications. - T ASCO and Idaho Power will
maintain appropriate operating communications through the Designated Dispatch
Facility.
Certification.- T ASCO will obtain and provide to Idaho Power
Company a certification by a professional engineer licensed in the State of Idaho
certifying that the TASCO-furnished Interconnection and Generation facilities
successfully meet all applicable electrical and safety standards and are capable of
operating in parallel with the Idaho Power electrical system in a safe and reliable
manner. The first of these certifications will be required by September 30,2003,
thereafter, September 30th of every 3rd year for the remaining term of this agreement.
SECTION 9 - RELIABILITY MANAGEMENT SYSTEM
Purpose. In order to maintain the reliable operation of the transmission
grid , the WECC Reliability Criteria Agreement sets forth reliability criteria adopted by the
WECC to which the Nampa Generator and Idaho Power Company shall be required to
comply.
Compliance . Nampa Generator shall comply with the requirements of
the WECC Reliability Criteria Agreement, including the applicable WECC reliability criteria
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set forth in Section IV of Annex A thereof, and, in the event of failure to comply, TASCO
agrees to be subject to the sanctions applicable to such failure. Such sanctions shall be
assessed pursuant to the procedures contained in the WECC Reliability Criteria
Agreement. Each and all of the provisions of the WECC Reliability Criteria Agreement are
hereby incorporated by reference into this Article 9 as though set forth fully herein, and
T ASCO, for the Nampa Generator, shall for all purposes be considered a Participant, and
shall be entitled to all of the rights and privileges and be subject to all of the obligations of a
Participant, under and in connection with the WECC Reliability Criteria Agreement,
including but not limited to the rights, privileges and obligations set forth in Sections 5 , 6
and 10 of the WECC Reliability Criteria Agreement.
Payment of Sanctions.T ASCO , for the Nampa Generator, shall be
responsible for reimbursing Idaho Power Company for any monetary sanctions assessed
against Idaho Power Company due to the action or inaction of Nampa Generator, by
WECC pursuant to the WECC Reliability Criteria Agreement. T ASCO also shall be
responsible for payment of any monetary sanction assessed against Nampa Generator by
WECC pursuant to the WECC Reliability Criteria Agreement. Any such payment shall be
made pursuant to the procedures specified in the WECC Reliability Criteria Agreement.
9.4 Transfer of Control or Sale of Generation Facilities In any sale or
transfer of control of any generation facilities subject to this Agreement, T ASCO shall , as a
condition of such sale or transfer, require the acquiring party or transferee with respect to
the transferred facilities either to assume the obligations of T ASCO with respect to this
Agreement or to enter into an agreement with Idaho Power Company imposing on the
acquiring party or transferee the same obligations applicable to Nampa Generator pursuant
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to this Section 9.
Publication.TASCO consents to the release by the WECC of
information related to the Nampa Generator s compliance with this Agreement only in
accordance with the WECC Reliability Criteria Agreement.
Third Parties.Except for the rights and obligations between the
WECC and T ASCO specified in this Section 9, this Agreement creates contractual rights
and obligations solely between the Parties. Nothing in this Agreement shall create, as
between the Parties or with respect to the WECC: (a) any obligation or liability whatsoever
(other than as expressly provided in this Agreement), or (b) any duty or standard of care
whatsoever. In addition , nothing in this Agreement shall create any duty, liability or
standard of care whatsoever as to any other party. Except for the rights, as a third-party
beneficiary under this Section 9, of the WECC against T ASCO for the Nampa Generator
no third party shall have any rights whatsoever with respect to enforcement of any
provision of this Agreement. Idaho Power Company and T ASCO expressly intend that the
WECC is a third-party beneficiary to this Section 9, and the WECC shall have the right to
seek to enforce against T ASCO any provision of this Section 9, provided that specific
performance shall be the sole remedy available to the WECC pursuant to Section 9 of this
Agreement, and T ASCO shall not be liable to the WECC pursuant to this Agreement for
damages of any kind whatsoever (other than the payment of sanctions to the WECC, if so
construed), whether direct, compensatory, special , indirect, consequential or punitive.
Reserved Riqhts.Nothing in the RMS or the WECC Reliability Criteria
Agreement shall affect the right of Idaho Power Company, subject to any necessary
regulatory approval , to take such other measures to maintain reliability, including
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disconnection , that Idaho Power Company may otherwise be entitled to take.
Severability.If one or more provisions of this Section 9 shall be
invalid , illegal or unenforceable in any respect , it shall be given effect to the extent
permitted by applicable law, and such invalidity, illegality or unenforceability shall not
affect the validity of the other provisions of this Agreement.
Termination of Section 9.TASCO may terminate its obligations
pursuant to this Section 9:
If after the effective date of this Section 9, the requirements
of the WECC Reliability Criteria Agreement applicable to the
Nampa Generator are amended so as to adversely affect
the Nampa Generator, provided that T ASCO gives fifteen
(15) days notice of such termination to Idaho Power
Company and WECC within forty-five (45) days of the date
of issuance of a Commission order accepting such
amendment for filing, provided further that the forty-five (45)
day period within which notice of termination is required may
be extended by T ASCO for an additional forty-five (45) days
if T ASCO gives written notice to Idaho Power Company of
such requested extension within the initial forty-five (45) day
period; or
For any reason on one year s written notice to Idaho Power
Company and the WECC.
SECTION 10 - MISCELLANEOUS PROVISIONS
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10.Insurance . TASCO will comply with the liability insurance
requirements contained in Idaho Power s IPUC Schedule 86 andlor its successor
schedules as those schedules may be modified from time to time by Commission order.
10.Riqhts of Way and Easements . TASCO herby grants to Idaho
Power all necessary rights of way and easements to install, operate, maintain , replace
and remove Idaho Power s metering and other Interconnection Facilities, including
adequate and continuing access rights to T ASCO's property. T ASCO warrants that it
has procured sufficient easements and rights of way from third parties as are necessary
to provide Idaho Power with the access described above. TASCO will execute such
other grants, deeds or documents as Idaho Power may require to enable it to record
such rights of way and easements.
10.Indemnification . TASCO agrees to hold harmless and indemnify
Idaho Power, its officers , agents , employees , parent company, affiliates and sister
companies against all loss, damage, expense and liability to third persons or injury to or
death of person or injury to property proximately caused by TASCO's construction
operation or maintenance of, or by failure of, the Nampa Generator or the TASCO-
furnished Interconnection Facilities.
10.4 Requlatorv Requirements. This Agreement and the rates, terms
and conditions of service set forth or incorporated herein , and the respective rights and
obligations of the Parties hereunder, will be subject to valid laws and to the regulatory
authority and orders, rules and regulations of the Commission and such other
administrative bodies having jurisdiction.
10.Commission Jurisdiction . The purchase prices contained herein
Page 20
are negotiated rates. Their inclusion does not constitute a waiver by Idaho Power of its
right to contest TASCO's entitlement to full avoided cost rates under PURPA. Nothing
herein will be construed as limiting the Commission from changing any rates or charges
or any rules, regulation or conditions relating to services provided andlor Surplus
Energy purchases under this Agreement, or construed as affecting the right of Idaho
Power or T ASCO to unilaterally make application to the Commission for any such
change.
10.Attorney s Fees. In any action at law or equity commenced under
this Agreement and upon which judgment is rendered , the prevailing party, as part of
such judgment, will be entitled to recover all costs, including reasonable attorney s fees
incurred on account of such action.
10.Effective Date of Aqreement.This Agreement will not become
effective until the Commission has approved it and declares that all payments for
purchases of Surplus Energy shall be allowed as prudently incurred expenses for
ratemaking purposes.
Page 21
IN WITNESS WHEREOF, the Parties hereto have executed this
Agreement as of the day and year herein written.
IDAHO POWER COMPANY
Vice President, Power Supply
Date c- ( 2ro )
THE AMALGAMATED SUGAR COMPANY. LLC
By ~ ~:reG2~~ ~
Vice President , Operations
Date 0 c\ . 'L'l - 0 S
Page 22
AGREEMENT FOR SALE AND PURCHASE OF SURPLUS ENERGY
BETWEEN
IDAHO POWER COMPANY
AND THE AMALGAMATED SUGAR COMPANY, LLC
NAMPA PLANT
EXHIBIT
TASCO's monthly operation and maintenance charges are determined by multiplying
the cost of the following Interconnection Facilities by the appropriate percentage
specified in section 5.2. As required within this Agreement, T ASCO will pay Idaho
Power a monthly Operations and Maintenance Charge based upon the total cost of the
equipment as specified within this Exhibit.
Disconnection Equipment including the 3PH recloser $39 916
$51 518Communications equipment including the SEL-3510 over
Current relay, the PO80116 relay, the phone line
Switch , and the fiber optic transceiver.
TOTAL
$36,134
$127 568
Fiber Optics Signal Cable
This equipment is owned, operated and maintained by Idaho Power. As specified
within this Agreement, T ASCO has reimbursed Idaho Power the total amount as listed
within this Exhibit.
Exhibit 1