20040205Application.pdf

MONICA MOEN , ISB # 5734
Idaho Power Company
1221 West Idaho Street
O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
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Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDAHO POWER COMPANY FOR APPROVAL)
OF AN AGREEMENT FOR SALE AND
PURCHASE OF ELECTRIC ENERGY
BETWEEN IDAHO POWER COMPANY AND
UNITED MATERIALS OF GREAT FALLS, INC.
CASE NO. IPC-04- CJ I
APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or the "Company
and , pursuant to IPUC Rule of Procedure 52, hereby applies for an Idaho Public Utilities
Commission ("IPUC" or the "Commission ) Order approving an Agreement between
Idaho Power and United Materials of Great Falls, Inc. ("United Materials ) under which
United Materials would sell and Idaho Power would purchase electric energy generated
by United Materials' wind electric generation facility.
This Application is based on the following:
United Materials proposes to design , construct, install , own , operate and
maintain a 9 MW wind generating facility located at the United Materials industrial
APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AGREEMENT FOR SALE AND PURCHASE
OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY AND UNITED MATERIALS OF GREAT FALLS, INC, - 1
facility located near Great Falls, Montana (the "Horseshoe Bend Wind Park" or the
Project"). The Project will be a qualified small power production facility under the
applicable provisions of the Public Utilities Regulatory Policy Act of 1978 ("PURPA"
Under PURPA, Idaho Power is obligated to purchase the Projects' electrical energy (1)
when the project is able to deliver energy to the Idaho Power electrical system and (2)
when Idaho Power has adequate capacity at the point of delivery to accept the Projects
energy deliveries.
II.
On January 6, 2004, Idaho Power and United Materials entered into an
Energy Sales Agreement ("Agreement") including purchase prices consistent with the
posted rates" approved by the Commission in Order No. 29391. Under the terms of
Order No. 29391 , United Materials elected to contract with Idaho Power for a 20-year
term and agreed to arrange for delivery of energy across the system of another utility to
deliver energy to the Idaho Power electrical system. A copy of the Agreement between
Idaho Power and United Materials is attached hereto as Exhibit 1.
III.
The Agreement between Idaho Power and United Materials is the first
large wind generation Energy Sales Agreement to be executed by the Company.
many respects , this Agreement is similar to the agreement between Idaho Power and
Tiber Montana LLC which was approved by the Commission in Order No. 29232 issued
on April 25, 2003. Idaho Power has developed a Cogeneration Small Power Producer
CSPP") agreement concept that is consistent for all CSPP projects regardless of their
resource (wind , hydro , geothermal, wood waste, etc.) that incorporates (1) current IPUC
APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AGREEMENT FOR SALE AND PURCHASE
OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY AND UNITED MATERIALS OF GREAT FALLS, INC, .. 2
orders , (2) current technologies and (3) current utility industry standards. The United
Materials Agreement contains many of these concepts as well as several unique
provisions since the Project is not directly connected to the Idaho Power system.
Following is a brief description of some of these concepts and unique provisions:
Opportunity for OFs to Participate in the Firm EnerQY Sales
Aqreement:In order to eliminate the need to predetermine the firm or non-firm status of
a Qualifying Facility ("OF") resource (i.e. wind , hydro, biomass) and, instead, to provide
an opportunity for OF resources to receive the Firm Published Avoided Cost Rate based
upon the OF's actual performance , Idaho Power has included the concepts of "Shortfall
Energy" and "Surplus Energy," Sections 1.21 and 1.24 of the Agreement, respectively.
Surplus Energy.Under the concept of "Surplus Energy," the OF is
required to estimate its monthly kWh generation (Section 6.2 of the Agreement). Each
month, the actual net kWh of generation will be compared to the monthly kWh of
generation estimated by the OF developer. If a project's actual kWh of generation
exceeds 110% of a month's estimated kWh of generation , the energy in excess of 110%
is valued at the Surplus Energy Price as described in Section 7.3 of the Agreement.
The Surplus Energy Price is a market-based price.
Shortfall Energy. Under this concept , a project's actual net monthly kWh
of generation is compared to the estimated monthly kWh of generation as described in
the preceding paragraph. In accordance with Section 1.21 of the Agreement, if the
amount of Net Energy is less than ninety percent (90%) of the month's estimated kWh
of generation , the difference between the actual net monthly kWh of generation and
90% of the estimated monthly kWh of generation is defined as "Shortfall Energy.If the
APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AGREEMENT FOR SALE AND PURCHASE
OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY AND UNITED MATERIALS OF GREAT FALLS, INC. - 3
Market Energy Cost as defined in Section 1 .13 of the Agreement is greater than the
Agreements' price for energy in the month that the Shortfall Energy occurs, then a
Shortfall Energy Payment" is offset against the Projects' energy payment.1 If the Market
Energy Cost is less than the Agreements' price for energy in the month in which
Shortfall Energy occurs, no Shortfall Energy Payment is calculated.
Whether a OF's energy production is Surplus Energy, Shortfall Energy or
qualifies for the Firm Published Avoided Cost is at the sole discretion of the developer
since the developer sets the monthly estimated generation levels indicated in Section
2 of the Agreement. The only limitation placed on the developer by the Company is
that the Net Energy estimated for each month cannot exceed the nameplate rating of
the generation equipment and/or the capacity rating of the interconnection equipment.
The Project has chosen to make use of non-firm transmission capacity to deliver the
Projects' energy to Idaho Power. Unlike Tiber , United Materials also must consider the
risk of energy delivery reductions due to transmission capacity interruptions in setting its
estimated Monthly Net Energy amounts.
Seasonality Previous I PUC orders and OF agreements
recognized that the value of purchased power differs in accordance with the season in
which it is actually delivered to Idaho Power. As an incentive for a OF to deliver energy
to the Company during times when it is of greater value to the Company, the published
Avoided Cost Rate has been historically "seasonalized." Idaho Power "seasonalizes
the published Avoided Cost Rate in the present Agreement. In the Tiber contract, Idaho
Power aligned these seasons to generally correspond to the months in which Idaho
1 The "Shortfall Energy Payment" is calculated by multiplying the quantity of Shortfall Energy (kWh) by the difference
between the Market Energy Cost and the Agreements' energy price.
APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AGREEMENT FOR SALE AND PURCHASE
OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY AND UNITED MATERIALS OF GREAT FALLS, INC. - 4
Power has identified actual energy needs and periods of higher demand. The seasons
are identified in Section 6.2 of the Agreement and the seasonalized rates are listed in
Section 7.1 the Agreement.
Firm Enerqy Deliveries: As previously noted, the United Materials
Project is located outside of Idaho Power s service territory. The Transmitting Entity for
this Project, NorthWestern Energy, has agreed, on an hourly basis , to firm all energy
deliveries from United Materials to Idaho Power and to other scheduling requirements
as specified in Section 10 of the Agreement.
Environmental Attributes : Idaho Power anticipates filing a petition
with the Commission in the near future to clarify the ownership of the Environmental
Attributes associated with OF projects from whom Idaho Power purchases energy. As
specified in Section 8 of this Agreement , the Commission s resolution of this petition will
become an integral part of this Agreement.
IV.
Section 22 of the Agreement provides that the Agreement will not become
effective until the Commission has approved all of the Agreement's terms and
conditions and declared that all payments Idaho Power makes for purchases of energy
to United Materials will be allowed as prudently incurred expenses for ratemaking
purposes.
United Materials has estimated an Operation Date of December 31 , 2004
as specified in Appendix B of the Agreement. Idaho Power will monitor compliance with
this Agreement and approve an Operation Date provided the conditions of Section 5.
APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AGREEMENT FOR SALE AND PURCHASE
OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY AND UNITED MATERIALS OF GREAT FALLS, INC, - 5
of the Agreement have been met by the United Materials Project.Should the
Commission approve this Agreement, Idaho Power intends to consider the Effective
Date of the Agreement to be January 6, 2004.
VI.
The Agreement , as signed and submitted by the Parties thereto, contains
Non-Levelized Published Avoided Cost Rates in conformity with applicable IPUC
Orders. Because the Project is located outside the Idaho Power service territory, no
interconnection charges or monthly Operation and Maintenance charges under
Schedule 72 will be assessed United Materials.
VII.
Service of pleadings , exhibits , orders and other documents relating to this
proceeding should be served on the following;
Monica Moen , Attorney II
Barton L. Kline, Senior Attorney
Idaho Power Company
O. Box 70
Boise , Idaho 83707
Randy C. Allphin
Contract Administrator
Idaho Power Company
O. Box 70
Boise, Idaho 83707
NOW, THEREFORE, based on the foregoing, Idaho Power Company
hereby requests that the Commission issue its order:
(1 )Approving the Firm Energy Sales Agreement between Idaho Power
Company and United Materials of Great Falls, Inc. without change or condition; and
(2)Declaring that all payments for purchases of energy under the
Energy Sales Agreement between Idaho Power Company and United Materials of Great
Falls , Inc. be allowed as prudently incurred expenses for ratemaking purposes.
APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AGREEMENT FOR SALE AND PURCHASE
OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY AND UNITED MATERIALS OF GREAT FALLS, INC, - 6
Respectfully submitted this day of February 2004.
f3,
MONICA B. MOEN
Attorney for Idaho Power Company
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on the day of February 2004, 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:
Bob Mcl ntyre
United Materials of Great Falls, Inc.
O. Box 1690
Great Falls, MT 59401
Hand Delivered
S. Mail
Overnight Mail
FAX
/6.
MONICA B. MOEN
APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OF AGREEMENT FOR SALE AND PURCHASE
OF ELECTRIC ENERGY BETWEEN IDAHO POWER COMPANY AND UNITED MATERIALS OF GREAT FALLS, INC, - 7
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O4-
IDAHO POWER COMPANY
EXHIBIT
Article
ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
UNITED MATERIALS OF GREAT FALLS, INe.
TABLE OF CONTENTS
TITLE
Definitions
No Reliance on Idaho Power
Warranties
Conditions to Acceptance of Energy
Term and Operation Date
Purchase and Sale of Net Energy
Purchase Price and Method of Payment
Environmental Attributes
Facility and Interconnection
Transmission Plan
Protection
Records
Operations
Indemnification and Insurance
Force Majeure
Liability; Dedication
Several Obligations
Waiver
Choice of Laws and Venue
Disputes and Default
Governmental Authorization
Commission Order
Successors and Assigns
Modification
Taxes
Notices
Additional Terms and Conditions
Severability
Counterparts
Entire Agreement Signatures
Appendix A
Appendix B
Appendix C
Facility No: 41718140
Project: Horseshoe Bend
Wind Park
ENERGY SALES AGREEMENT
THIS AGREEMENT, entered into on this
" -,
day of I~k4t.Qt', JO(J~between
UNITED MATERIALS OF GREAT FALLS, INe. 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 has agreed to purchase, electric energy from
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 Annual Net Energy" - Sum of the monthly Net Energy Amounts specified in paragraph 6.2 for a
single Contract Year.
1.2 Base Energy" - Monthly Net Energy less than 110% of the monthly Net Energy Amount as
specified in paragraph 6.2 of this Agreement.
1.3 Commission" - The Idaho Public Utilities Commission.
1.4 Contract Energy" - The electric energy produced by the Facility and energy supplied by the
Transmitting Entity in the Contract Months on behalf of the Facility, scheduled and deli vered by
the Transmitting Entity to either the Designated Point of Delivery or the Point of Delivery and
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1.5
1.6
1.7
1.8
1.9
accepted by Idaho Power, so that the energy deliveries to Idaho Power will comply with the
Transmjtting Entity s scheduling and delivery requirements specified in Article X of this
agreement, expressed in Kilowatt hours ("kWh"
Contract Months - Calendar months of January, February, March, April, May, September
October, November and December.
Contract Year - The period commencing each calendar year on the same calendar date as the
Operation Date and ending 364 days thereafter.
Designated Dispatch Facility" - Idaho Power s Control Area Operations Group, or any
subsequent group designated by Idaho Power.
Designated Energy System" - Idaho Power s electrical system being used to deliver the Seller
Net Energy to Idaho Power electrical loads.
Designated Point of Delivery" - the Designated Point of Delivery specified in Appendix B of
this Agreement.
1.10 Facility" - That electric generation facility described in Appendix B of this Agreement.
1.11 Interconnection Facilities - All facilities required to be installed to interconnect and deliver Net
Energy from the Facility to the Transmitting Entity s system including, but not limited to
connection, switching, metering, relaying, communications and safety equipment.
1.12 Losses" - The loss of energy expressed in kilowatt hours (kWh) occurring as a result ofthe
transformation and transmission of energy between the Facility and Designated Point of Delivery
or the Point of Delivery.
1.13 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.
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1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22
1.23
Material Breach" - A Default (paragraph 20.1) subject to paragraph 20.
Net Energy" - The monthly Contract Energy or Summer Energy. Net Energy scheduled and/or
delivered to Idaho Power will never exceed 10 000 kWh in a single hour.
Operation Date" - The day commencing at 0001 hours, Mountain Time, following the day that
all requirements of paragraph 5.2 have been completed.
Point of Delivery - A point on the Idaho Power electrical system where the Transmitting
Entity schedules and delivers Net Energy and Idaho Power accepts Net Energy produced by the
Seller that the Seller has requested and has been granted in compliance with the CUlTent Idaho
Power Open Access Transmission tariff and/or any applicable schedules or tariffs.
Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and
ordinarily used in electrical engineering and operations to operate electric equipment lawfully
and with safety, dependability, efficiency and economy.
Scheduled Operation Date - The date specified in Appendix B when Seller anticipates
achieving the Operation Date.
Season" - The three periods identified in Article VI.
Shortfall Energy" - The difference between 90% of the monthly Net Energy Amount for the
colTesponding month specified in paragraph 6.2 of this Agreement and the same month's actual
Net Energy.
Summer Energy" - Energy produced by the Facility, scheduled and delivered to Idaho Power by
the Transmitting Entity on the Seller s behalf in the Summer Months so that the energy deliveries
to Idaho Power will comply with the scheduling and delivery requirements specified in Article X
of this agreement, expressed in Kilowatt hours ("kWh"
Summer Months" - Calendar months of June, July and August.
1.24 Surplus Energy" - Net Energy scheduled and delivered to Idaho Power and accepted by Idaho
Power during the month which exceeds 110% of the Net Energy Amount for the colTesponding
month specified in paragraph 6.2 of this Agreement and all Net Energy scheduled and delivered
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1/612004
1.25
1.26
to Idaho Power prior to the Operation Date.
Total Cost of the Facility - The total cost of structures, equipment and appurtenances.
Transmitting Entity - The entity(s) scheduling and delivering the Seller s Net Energy to the
Designated Point of Delivery or the Point of Delivery.
ARTICLE II: NO RELIANCE ON IDAHO POWER
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.
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 , 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 ) 8 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
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1/6/2004
and associated support and compliance documents at anytime during the term of this Agreement.
ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY
Prior to the Operation Date and as a condition of Idaho Power s acceptance of scheduling or
delivery of Net Energy from the Seller s Facility the Seller shall:
1.1
1.2
1.4
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.
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).
Engineer s Certifications - 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.
Insurance - Submit written proof to Idaho Power of all insurance required in Article
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XIV.
1.5 Transmission Plan - Provide Idaho Power with a copy of the Contract Month'
Transmission Plan agreed to by the Seller and the Transmitting Entity in a form
acceptable to Idaho Power. Idaho Power s acceptance will not be unreasonably
withheld.
1.6 Written Acceptance - Obtain written confirmation from Idaho Power that all conditions
to acceptance of energy have been fulfilled. Such written confirmation shall not be
unreasonably withheld by Idaho Power.
ARTICLE V: TERM AND OPERATION DATE
Term - Subject to the provisions of paragraph 5., 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.
Operation Date - The Operation Date may occur only after the Facility has achieved all of the
following:
a) Completed all Conditions to Acceptance of Energy as specified in Article IV.
b) Commission approval of this Agreement has been received.
c) Seller has demonstrated to Idaho Power s satisfaction that the Facility is complete and
able to provide Net Energy in a consistent, reliable and safe manner.
d) 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 Energy - Except when either Party s performance is excused as
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1/6/2004
provided herein , Idaho Power wil1 purchase and Seller wil1 sell up to 000 kWh per hour of the
Net Energy scheduled and delivered on behalf of the Seller and accepted by Idaho Power at either
the Designated Point of Delivery or the Point of Delivery that is in compliance with this
Agreement. Under this Agreement, Idaho Power is only obligated to purchase Net Energy
scheduled and delivered by the Transmitting Entity(s) on the Seller s behalf that does not exceed
000 kWh in any single hour.
Net Energy Amounts - Seller intends to deliver Net Energy in the following monthly amounts:
Season I
Month kWh
March 570,000
April 155,000
May 340 000
June 584 000
July 315 000
November 587,000
December 171 000
August 326,000
September 418 000
October 861 000
January 845,000
February 053 000
Season 2
Season 3
Sellers Adjustment of Net Energy Amount
1.1 Designated Dates - By written notice given to Idaho Power in accordance with
paragraph 26., the Seller may revise the monthly Net Energy Amounts specified
in paragraph 6.2 on the following Designated Dates. These notices must be
received a minimum 15 days prior to the Designated Dates and failure to provide
timely written notice of changed amounts will be deemed to be an election of no
change.
Desi gnated Dates
Last day of the 6th month after the Operation Date
Last day of the 12th month after the Operation Date
Last day ofthe 3rd, 5 , 7 , 9th, 11 th, 13 , 15th, 17 , and 19th Contract Year
1.2 Net Energy Amount Delivery Reduction Adjustment - If the Seller s Contract
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7.1
Energy deliveries to Idaho Power are reduced as a result of paragraph 13.2.1
13.2 or 13.3 of this Agreement, the Net Energy Amount for the month in
which the Contract Energy delivery reduction occurred will be reduced by the
kWhs of the Contract Energy delivery reduction. This adjustment to the Net
Energy Amount will only be for the specific month and year in which the
Contract Energy delivery reduction occurred.If during the term of this
Agreement the Seller acquires long-term (1 year or more) firm capacity on the
Designated Energy System and corresponding long-term firm transmission
capacity from a Transmitting Entity, the Seller may revise the monthly Net
Energy Amounts, by written notice, within 30 days of being granted the long-
term firm capacity.
Seller s failure to deliver Net Energy in any Contract Year in an amount equal to at least ten
percent (10%) of the Annual Net Energy amount shall constitute an event of default.
ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT
Base Energy Purchase Price - For all Base Energy, Idaho Power wiH pay the non-Ievelized
energy price in accordance with Commission Order 29391 with seasonalization factors applied:
Season 1 - (73.50 %)Season 2 - (120,00 %)Season 3 - (10(tOO %)
Year Mills/kWh Mills/kWh Mills/kWh
2004 33.54.45.
2005 34.46 56.46.
2006 35.57.47.
2007 36.58.49.
2008 36.60.50.
2009 37.61.51.48
2010 38.63.52.
2011 39.64.53.
2012 40.66.55.
2013 41.67.56.
2014 42.69.46 57.
2015 43.71.59.
2016 44.72.60.
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7.4
2017
2018
2019
2020
2021
2022
2023
2024
2025
45.
46.
47.
48.
50.
51.
52.
53.
55.
74.
76.
78.
79.
81.
83.
85.
87.
89.
62.
63.
65.
66.
68.
69.
71.49
73.
74.
Surplus Energy Price - For all Surplus Energy, Idaho Power shall pay to the Seller the current
month's Market Energy Cost or the Base Energy Purchase Price specified in paragraph 7.
whichever is lower.
Shortfall Energy Price - For all Shortfall Energy, if the Market Energy Cost for the month in
which the Shortfall Energy occurs is less than or equal to the Base Energy Purchase Price for the
same month , the Shortfall Energy Price will be O. If the Market Energy Cost for the month in
which the Shortfall Energy occurs is greater than the Base Energy Purchase Price for the same
month, the Shortfall Energy Price will be the current month's Market Energy Cost less the Base
Energy Purchase Price.
Shortfall Energy Payment - The Shortfall Energy Payment amount is the Shortfall Energy
amount multiplied by the Shortfall Energy Price. The Shortfall Energy Payment will be withheld
from the current month's Net Energy payment. If the current month's Net Energy payment is less
than the Shortfall Energy Payment, the Seller will make payment to Idaho Power of the unpaid
balance within 15 days of being notified of the outstanding balance. Seller s failure to make
payment within 15 days will be a default under this Agreement.
Payment Due Date - Net 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
actually delivered to Idaho Power as specified in Appendix A.
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
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1/612004
Idaho Power Company v. Idaho Public Utilities Commission and Anon Energy, 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 (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
As of the date of this Agreement, Idaho Power intends to file a Petition for a Declaratory Order
with the Commission in regards to the Environmental Attributes.Idaho Power is seeking a
Commission ruling concerning whether the Environmental Attributes associated with a QF
project are owned by the project or the utility at the time a utility purchases e1ectricity from a QF
project. The final Order of the Commission in response to Idaho Power s Petition will be
included and become an integral part of this Agreement. The Seller reserves the right to cancel
this Agreement within 30 days of the Commission s final Order regarding Idaho Power s Petition.
The Seller s failure to provide cancellation notification to Idaho Power within 30 days of the
Commission s ruling regarding Idaho Power s Petition for a Declaratory Order will be deemed to
be acceptance by the Seller of the Declaratory Order as an integral part of this Agreement for the
full term of this Agreement.
ARTICLE IX: FACILITY AND INTERCONNECTION
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 reliable generation and
delivery of electric energy to the Transmitting Entity(s) for the full term of the Agreement.
Interconnection Facilities - Seller will construct, install, own and maintain all Interconnection
Facilities other than those owned, installed or maintained by the Transmitting Entity(s). Seller
will pay all costs of interconnecting with the Transmitting Entity(s) and transmitting Net Energy
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10.
to Idaho Power.
ARTICLE X: TRANSMISSION PLAN
Transmission Plan - To schedule and deliver Net Energy to the Designated Point of Delivery or
the Point of Delivery the Seller will arrange and pay for the scheduling and delivery of Net
Energy from a Transmitting Entity(s) that is able to deliver the Seller s Net Energy to the
Designated Point of Delivery or the Point of Delivery. The scheduling and delivery of Net
Energy from the Facility to the Idaho Power Designated Point of Delivery or the Point of
Delivery shall be in accordance with the terms and conditions of the Transmission Plan which
will include provisions requiring the Transmitting Entity(s) to provide the following:
10.Scheduled Net Energy Deliveries
a. Monthly Hourly Scheduling Estimate - The Transmitting Entity(s) or Seller
will provide Idaho Power with a monthly hourly scheduling estimate of Net
Energy deliveries by the 20th day of the preceding month. The Seller and the
Transmitting Entity(s) will use their best efforts to produce an accurate
Monthly Hourly Scheduling Estimate.The Monthly Hourly Scheduling
Estimate will be 10 MW or less and shall indicate either the Designated Point
of Delivery or specify the planned Point of Delivery.
b. Day Ahead Hourly Pre-Schedule - The Transmitting Entity will provide
Idaho Power with the next day s hourly schedule of Net Energy deliveries in
accordance with the Western Electricity Coordinating Council (WECC)
standard electrical scheduling practices. Idaho Power must accept the day
ahead schedule prior to the Transmitting Entity delivering Net Energy to
either the Designated Point of Delivery or the Point of Delivery. The Seller
and the Transmitting Entity will use their best efforts to produce an accurate
Day Ahead Hourly Pre-Schedule. The Day Ahead Hourly Pre-Schedule will
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be lO MW or less and will indicate either the Designated Point of Delivery or
specify the planned Point of Delivery.
c. The Transmitting Entity, at a minimum, must provide notification of
deviations of actual Net Energy deliveries compared to the accepted Day
Ahead Hourly Pre-Schedule to Idaho Power 30 minutes prior to the
scheduling hour, the Designated Point of Delivery or the PoinJ of Delivery
must remain as documented in the Day Ahead Hourly Pre-Schedule. The
Transmitting Entity will only be relieved of this notification process for the
hour in which a physical electrical system emergency occurs within the
Transmitting Entity s electrical system that prevents the Transmitting Entity
from delivering the scheduled Net Energy.
d. The Transmitting Entity(s) will use its best efforts to pre-schedule and
deliver the actual Net Energy delivered to the Transmitting Entity by the
Seller to Idaho Power within the same hour as the Net Energy is received
from the Seller. Only with prior written agreement between Idaho Power and
the Transmitting Entity will the Transmitting Entity schedule and deliver Net
Energy to Idaho Power that was delivered to the Transmitting Entity by the
Seller during an hour in which Idaho Power had reduced the Net Energy
schedule and deliveries to Idaho Power in accordance with paragraph 13.2 of
this Agreement in a different hour than what the Net Energy was received by
the Transmitting Entity from the Seller. Under no circumstances will the Net
Energy deliveries to Idaho Power exceed lO MW.
Idaho Power reserves the right to revise the Monthly Hourly Scheduling
estimate, the Day Ahead Hourly Pre-Schedule and the subsequent deliveries
of Net Energy to the Idaho Power system as specified in Article X of this
Agreement.
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10.
10.
lOA
The Transmitting Entity(s) will never schedule or deliver more than 10 MW
of Net Energy to Idaho Power on the Sellers behalf.
10.1.2 Energy Reserve Requirements - The Transmitting Entity(s) will provide all
required generation reserves as required by the Western Electricity Coordinating
Council (WECe') and/or as required by any other governing agency or industry
standard.
10.1.3 Point of Delivery Notification - In the event the Seller secures long term
transmission capacity to a Point of Delivery, that the Seller plans to routinely use
in lieu of the Designated Point of Delivery. The Seller will notify Idaho Power
of this Point of Delivery and the planned use at the time the Seller secures this
Point of Delivery. Idaho Power will be relieved of all obligations as specified
within this Agreement, to receive the Seller s Net Energy at the Designated Point
of Delivery during tt;s time.
. "
cceptance of Tr.~!l:ITlis"ica Plan - This Agreement is expressly conditioned and contingent
upon Idaho Power s acceptance of the Transmission Planes). The Transmission Plan for the
Contract Months shall be submitted to Idaho Power for review and acceptance prior to the
Operation Date. Such acceptance will not be unreasonably withheld. Idaho Power will be
identified within the Transmission Plan as an intended third party beneficiary of the
Transmission Plan and a default by the Seller or the Transmitting Entity(s) under the
Transmission Planes) will be a default under this Agreement.
Losses - Idaho Power will only purchase the Net Energy that is scheduled and delivered by the
Transmitting Entity(s) to Idaho Power as shown on Idaho Power s daily system logs. All Losses
will be attributed to Seller on the Transmitting Entity(s) system.
Documentation - Seller or Transmitting Entity(s) on the Seller s behalf will provide Idaho Power
with monthly documentation in a form acceptable to Idaho Power showing the amount of Net
Energy scheduled and delivered to Idaho Power at the Designated Point of Delivery or the Point
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11.1
12.
" '
' 12.
13 .1
of Delivery and accepted by Idaho Power, including any Net Energy delivery reductions as a
result of Idaho Power exercising its rights to reduce the Net Energy deliveries as allowed within
this Agreement.
ARTICLE XI - PROTECTION
Seller will construct, operate and maintain the Facility and Seller-furnished Interconnection
Facilities in accordance with Prudent Electrical Practices, the National Electric Safety Code and
any other applicable local, state and federal codes.
ARTICLE xn - RECORDS
Maintenance of Records - Seller shall maintain at the Facility or such other location mutually
acceptable to the Parties adequate Net Energy production, delivery and scheduling records in a
form and content acceptable to Idaho Power.
Inspection - Either Party, after reasonable notice to the other Party, shall have the right, during
normal business hours, to inspect and audit any Net Energy production, delivery and scheduling
records pertaining to the Seller s Facility.
ARTICLE xm - OPERATIONS
Communications - Idaho Power and the Transmitting Entity(s), on behalf of Seller, shall maintain
appropriate operating communications through Idaho Power s Designated Dispatch Facility and
Seller shall require the Transmitting Entity(s) to report to Idaho Power at the times and in the
manner established in the Transmission Plan described in Article X.
13 .Net Energy Acceptance
13.Designated Point of Delivery - Idaho Power will not accept or pay for any Summer
Energy scheduled or delivered by the Transmitting Entity(s) tothe Designated Point of
Delivery without prior written approval by Idaho Power. Idaho Power shall be excused
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from accepting and paymg for Contract Energy scheduled and delivered by the
Transmitting Entity(s) on behalf of the Seller to the Designated Point of Delivery under
anyone any combination of the following;
a. If Idaho Power requires use of the Designated Point of Delivery to accommodate
other energy transactions required for Idaho Power to maintain the reliable
operation of the Idaho Power electrical system.
b. Continued acceptance of the Seller s Contract Energy would result in Idaho Power
being required to reduce planned energy deliveries from Idaho Power generation
facilities making use of the same Designated Energy System.
c. If the Designated Dispatch Facility requires reductions of energy on the
Designated Energy System in order to maintain reliable operations of the Idaho
Power electrical system, the Seller s Contract Energy deliveries will be reduced
prior to any firm energy transactions making use of the same Designated Energy
System.
Except as allowed in paragraph 13., at the minimum, Idaho Power will notify the
Transmitting Entity 30 minutes prior to the hour of scheduled Contract Energy deliveries
of any Contract Energy delivery reductions. Idaho Power will use its best efforts to
notify the Transmitting Entity of any Contract Energy delivery reductions when Idaho
Power becomes aware of a required Contract Energy delivery reduction.
13.Point of Delivery - Idaho Power shall accept and pay for Net Energy, scheduled and
delivered by the Transmitting Entity that is in compliance with Article X of this
Agreement and in compliance with the Seller s acquired capacity rights to the Idaho
Power Designated Energy System as determined by the applicable Idaho Power Open
Access Transmission tariff and/or applicable schedule or tariffs that were utilized by the
Seller in securing the Point of Delivery defined in paragraph 1.17 of this agreement.
13.Idaho Power shall be excused from accepting and paying for Net Energy produced by the
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14.
Seller s Facility and delivered to the Designated Point of Delivery or the Point of
Delivery by the Transmitting Entity without any prior notice to the Transmitting Entity or
the Seller 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 deliveries is
necessary because of line construction, maintenance requirements, emergencies,
electrical system operating conditions on its system or as otherwise required by Prudent
Electrical Practices.
13.2.4 Under no circumstances will the Seller permit the Transmitting Entity(s) to deliver Net
Energy from the Facility in an amount that exceeds 10 MW. Seller s failure to limit
deliveries by the Transmitting Entity to 10 MW will be a Material Breach of this
Agreement.
ARTICLE XIV: INDEMNIFICATION AND INSURANCE
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
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.
14.Insurance - During the term of this Agreement, Seller shall secure and continuously carry the
following insurance coverage:
14.1 Comprehensive General Liability Insurance for both bodily injury and property damage
with limits equal to fifteen percent (15%) of the Total Cost of the Facility, or 000 000
whichever is greater, each occurrence, combined single limit. The deductible for such
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14.
14.4
Insurance shall not exceed one-half of one percent (0.5%) of the Total Cost of the
Facility.
14.2 The above insurance coverage shall be placed with an insurance company with an AM.
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.
Seller to Provide Certificate of Insurance - As required in paragraph 4.1.4 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.
Seller to Provide Copies of Policy of Insurance - Within one hundred twenty (J 20) days after the
Operation Date, and within ninety (90) days of the effective date of any modifications to the
policy, Seller will furnish to Idaho Power a certified copy of the original of the insurance policy
and any endorsements for the insurance coverage described above. In the case of policy
renewals, Seller may provide a certificate from the insurance carrier that there have been no
changes to the policy in lieu of providing the required certified copy of the policy.
14.Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage required by
paragraph 14.2 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 XV. FORCE MAJEURE
15.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
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16.
such Party is unable to prevent or overcome. Force Majeure includes, but is not linrited to, acts
of God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances,
earthquakes, fires, lightning, epidenrics, sabotage, or changes in law or regulation, 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
whoHy or in part unable to perform its obligations under this Agreement because of an event of
force Majeure, both Parties shaH be excused from whatever performance is affected by the event
of force Majeure, provided that:
(1)The non-perfornring Party shaH, 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 perfonnance shaH 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 fuHy
performed before such occurrence shaH be excused as a result of such
occurrence.
ARTICLE XVI: LIABll.ITY: DEDICATION
Nothing in this Agreement shaH 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 shaH constitute the dedication of that
Party s system or any portion thereof to the other Party or to the public nor affect the status of
Idaho Power as an independent public utility corporation or SeHer as an independent individual
or entity.
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17.1
18.1
19.
19.
20.
ARTICLE XVII: SEVERAL OBLIGATIONS
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 XVIII: 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 be deemed a waiver with respect to any subsequent default or other matter.
ARTICLE XIX: CHOICE OF LAWS AND VENUE
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.
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.
ARTICLE XX: DISPUTES AND DEFAULT
Disputes - An disputes related to or arising under this Agreement, including, but not limited to
the interpretation of the terms and conditions of this Agreement, wiH be submitted to the
Commission for resolution.
20.Notice of Default -
20.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
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20.
20.
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.
Material Breaches - The notice and cure provisions in paragraph 20.1 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.
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:
20.
20.
20.
Insurance - Evidence of compliance with the provisions of paragraph 14.2. If Seller
fails to comply, such failure will be an event of default under Article XX. Such
default will be a Material Breach and may only be cured by Seller supplying evidence
that the required insurance coverage has been replaced or reinstated.
Engineer s Certifications - Every three (3) years after the Operation Date, Seller will
supply Idaho Power with a Certification of Ongoing Operations and Maintenance
& 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
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.
Licenses and Permits - During the full term of this Agreement, Seller shall maintain
compliance with all permits and licenses described in paragraph 4.1 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. If at any time Seller fails to maintain
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21.1
21.2
21.3
compliance with the permits and licenses described in paragraph 4.1 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 XXI: GOVERNMENTAL AUTHORIZATION
This Agreement is subject to the jurisdiction of those governmental agencies having control over
either Party of this Agreement.
Idaho Power may terminate this Agreement on sixty (60) days prior written notice if (1) existing
Idaho law is modified to allow persons or entities other than Idaho Power to sell electric capacity
or energy at retail in Idaho Power s exclusive service territory, and (2) such change in law results
in Idaho Power being unable to fully recover in its retail revenue requirement all costs attributed
to this Agreement.
The Seller may terminate this agreement on sixty (60) days prior written notice if (1) the Federal
Production Tax Credit or other similar economic incentive is not renewed, modified or created in
a manner that enables the Seller to participate in these economic incentives in the same manner as
ifthe Seller s Facility was commercially online as of the date of this agreement, (2) and the Seller
has not begun construction of this Facility. Once construction of the Facility has begun, the
Seller may not terminate this Agreement as specified in paragraph 21.
ARTICLE XXII: COMMISSION ORDER
22.1 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.
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23.
24.1
ARTICLE XXIII: SUCCESSORS AND ASSIGNS
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
conveyor 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
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 XXIV: MODIFICATION
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 XXV: TAXES
25.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.
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26.1
27.
28.1
ARTICLE XXVI: NOTICES
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:Bob McIntyre
United Materials of Great Falls, Inc.
P. O. Box 1690
Great Falls, MT 59401
To Idaho Power:Vice President, Power Supply
Idaho Power Company
POBox 70
Boise, Idaho 83707
ARTICLE XXVII: ADDITIONAL TERMS AND CONDITIONS
This Agreement includes the following appendices, which are attached hereto and included by
reference:
Appendix A
Appendix B
Appendix C
Generation Scheduling and Reporting
Facility and Point of Delivery
Engineer s Certifications
ARTICLE XXVIII: SEVERABILITY
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 omhted.
ARTICLE XXIX: COUNTERPARTS
29.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.
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30.
ARTICLE XXX: ENTIRE AGREEMENT
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 United Materials of Great Falls, Inc.
John Prescott - Vice President, Power Supply
Dated
du.",-- fa , ?O~'1 Y~/O1Dated
Idaho Power Seller
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APPENDIX A
GENERA nON SCHEDULING AND REPORTING
Seller will provide Idaho Power with monthly documentation acceptable to Idaho Power showing
the amount of Net Energy actually scheduled and delivered to Idaho Power by the Transmitting Entity at
the Designated Point of Delivery and the Point of Delivery. If the Contract Energy deliveries were
reduced at the request of Idaho Power, the Seller will provide the dates, hours and quantity of the Contract
Energy reductions. In accordance with paragraph 10.4, the documentation subject to subsequent review
by Idaho Power, will be the basis of payment for Net Energy purchased by Idaho Power from the Seller.
At the end of each month, the required documentation will be mailed to:
Idaho Power Company
Attn: Cogeneration and Small Power Production
POBox 70
Boise, Idaho 83707
Seller s Contact Information
24-Hour Project Operational Contact
Name: Terry McIntyre, Operations Manager
Telephone Number:
Project On-site Contact information
Telephone Number:
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APPENDIX B
FACILITY AND POINT OF DELIVERY
FACILITY NUMBER: 41718140
HORSESHOE BEND WIND PARK
DESCRIPTION OF FACILITY:
The SeHer s FaciHty is described as:
Six (6), General Electric, 1.5 MW Wind Machines with a 70-meter hub height.
LOCATION OF FACILITY:
Cascade County, Montana, 6 Miles from Great FaHs, Montana. On the property of the United
Materials of Great Falls, Inc. facility.
SCHEDULED OPERATION DATE: December 31 , 2004 . The Seller will communicate a
planned operation date and the actual date of the beginning of construction of this Facility to
Idaho Power as the Seller becomes aware of the details of the development of this facility.
DESIGNATED POINT OF DELIVERY:
Unless otherwise agreed by both Parties, the point of interconnection between Idaho Power and
the Transmitting Entity will be: The 161 kV Jefferson-Dillon Hne, known as the Jefferson Line.
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APPENDIX C
ENGINEER'S CERTIFICATION
OPERATIONS & MAINTENANCE POLICY
The undersigned behalf 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.
That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement
between Idaho Power as Buyer, and as Seller, dated
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.
That the Project, which is commonly known as the Project
is located in Section , Township , Range County,
That Engineer recognizes that the Agreement provides for the Project to furnish electrical
energy to Idaho Power for a ) year period.
That Engineer has substantial experience in the design, construction and operation of
electric power plants of the same type as this Project.
That Engineer has no economic relationship to the Design Engineer of this Project.
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
) year period.
That Engineer recognizes that Idaho Power, in accordance with Article 2 of the
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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
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APPENDIX C
ENGINEER'S CERTIFICATION
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.
That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement
between Idaho Power as Buyer, and as Seller, dated
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
That the Project, which is commonly known as the Project, is
located at
That Engineer recognizes that the Agreement provides for the Project to furnish
electrical energy to Idaho Power for a ) year period.
That Engineer has substantial experience in the design, construction and operation of
electric power plants of the same type as this Project.
That Engineer has no economic relationship to the Design Engineer of this Project.
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
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factor for the remaining years of the Agreement.
That Engineer recognizes that Idaho Power, in accordance with paragraph 17.2 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
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