HomeMy WebLinkAbout20040506APPLICATION.PDF,~-:/~,- -_u, '' " -,.. ....,.-.....,BARTON L. KLINE ISB #1526MONICA B. MOEN 158 #5734Idaho Power CompanyO. Box 70 (83707)1221 West Idaho StreetBoise, Idaho 83702Telephone: (208) 388-2682FAX Telephone: (208) 388-6936Attorney for Idaho Power Company RECE,iVED 0FlL-EO iUfly flAY -5 PH -~: 51! ~,-,--P~. l--: n F; U E L ; CU T IL'(tt S" CO~lf'1-1SS IONSTEVEN J. MILLEMANN 158 #2601Millemann, Pittenger , McMahan & Pemberton , LLPO. Box 1066706 North FirstMcCall, Idaho 83638Telephone: (208) 634-7641FAX Telephone: (208) 634-4516Attorney for Tamarack Resort LLCBEFORE THE IDAHO PUBLIC UTILITIES COMMISSIONIN THE MATTER OF THE JOINT APPLICATION OF IDAHO POWER
COMPANY AND TAMARACK RESORT
LLC FOR APPROVAL OF AN AGREEMENT
TO PROVIDE ELECTRIC DISTRIBUTIONFACiliTIES.
CASE NO. IPC-O4-J 1.
JOINT APPLICATION OF
IDAHO POWER COMPANY
AND TAMARACK RESORT , LLC
COMES NOW , IDAHO POWER COMPANY ("Idaho Power" or the
Company ), and TAMARACK RESORT LLC ("Tamarack"), and in accordance with
RP 052 , hereby jointly request that the Idaho Public Utilities Commission
Commission ) issue its Order approving an Agreement dated May 3 , 2004 , between
Idaho Power and Tamarack under which Idaho Power would provide certain electrical
distribution facilities to Tamarack. This Application is based on the following:
JOINT APPLICATION , Page
Tamarack Resort Project.Tamarack is developing a substantialfour-seasons resort project ("Resort Project") in Valley County, Idaho. Tamarack hasindicated that at final build-out , the Resort Project will be a complex featuringapproximately 2 000 housing units , and approximately 272 000 square feet ofcommercial space , along with a golf course , ski lifts and other recreational amenitieswith a combined electrical load of approximately 20 MW. Because final build-out isexpected to take a number of years , Tamarack has requested that Idaho Power make5 MVA of electrical capacity available to the Resort Project by November 1 2004.Installation of Facilities.Because the Resort Project will be locatedin an area where Idaho Power does not have existing facilities of adequate capacity anddesired phase and voltage , delivery of power (capacity) to the Resort Project site willrequire the construction of (1) underground and overhead facilities and lines tointerconnect with Idaho Power s existing transmission/distribution system
Interconnection Facilities ), and (2) installation of additional substation equipment and
facilities ("the Substation Facilities
).
The Interconnection Facilities and the Substation
Facilities are sometimes hereinafter collectively referred to as the "Requested
Facilities.
Rule H.
(a)Rule H is the Company s tariff provision which generally
governs line extensions. By its terms Rule H does not apply to all line extensions , and
the Parties have agreed that this agreement is not subject to or governed by Rule
However , the Parties have agreed to use some of the principles contained in Rule H to
address refunds of a portion of the contribution in aid of construction ("CIAC") to be paid
JOINT APPLICATION , Page 2
by Tamarack under the Agreement to Provide Electric Distribution Facilities betweenIdaho Power and Tamarack ("the Agreement"(b)A copy of the Agreement is included in this Application asAttachment 1 .(c)Installation of distribution facilities within the boundaries ofthe Resort Project will be made in accordance with Rule H.Construction of Facilities.The Parties have agreed that theRequested Facilities will be constructed in two phases.(a)Phase 1 Facilities have already been constructed and willprovide not more than 2 MV A of three-phase power at a point of delivery locatedadjacent to the boundaries of the Resort Project. A general description of the Phase Facilities is included as Exhibit 1 to the Agreement.(b)Phase 2 construction will be performed during the 2004
construction season and will include the construction of the Requested Facilities to
provide 7.5 MV A of electrical capacity at the Delivery Point. A general description of the
Phase 2 Requested Facilities is included as Exhibit 2 to the Agreement.
(c)Phase 1 construction was completed by Idaho Power
November of 2003. Phase 2 construction is expected to be completed by Idaho Power
on or before November 1 , 2004.
Cost of Facilities.The total estimated cost of the design and
construction of the Requested Facilities is $2 704 886. Assuming Tamarack makes all
of its required payments on schedule , the contribution in aid of construction ("CIAG") to
be paid by Tamarack , will not exceed $1 891 372. Tamarack has paid Idaho Power
JOINT APPLICATION , Page 3
055,375 for the Phase 1 Requested Facilities. Tamarack has paid Idaho Power$764 798 for Phase 2 Requested Facilities. As provided in the Agreement , Tamarackhas agreed to pay Idaho Power an additional $191 199 on or before October 1 2004.Vested Interest Refund Provisions.In order to supply 7.5 MW ofelectrical capacity to Tamarack with the power quality specifications requested byTamarack, it was necessary for Idaho Power to construct a portion of theInterconnection Facilities outside the Resort Project boundaries with a capacity greaterthan 7.5 MV A. Tamarack will not be entitled to use more than 7.5 MW of capacity in theInterconnection Facilities. Because the Requested Facilities, funded in part by theCIAC Tamarack is making, will create additional capacity that can be used to servefuture customer loads , the Company has agreed to collect contributions from othercustomers attaching to facilities which utilize the Requested Facilities to receive electricservice. These contributions will be in the form of vested interest refunds and line
capacity charges. The portions of the Interconnection Facilities that will be subject to
vested interest refunds are more particularly described in the Agreement , and the
maximum dollar amounts subject to refund are also described in the Agreement.
Vested interest refunds will be collected for a ten-year period following the completion of
the Phase 2 Requested Facilities.
Line Capacity CharQes.In order to equitably share the cost of the
facilities for which Tamarack is providing a substantial CIAC, in addition to vested
interest refunds associated with the Interconnection Facilities , Idaho Power has agreed
to collect a line capacity charge from all other customers attaching to facilities which
JOINT APPLICATION , Page 4
utilize the Requested Facilities to receive electric service. Line capacity charges wouldbe assessed , collected and refunded to Tamarack as follows:(a)Idaho Power will inventory all of the lots that are currentlybeing "served" but are not connected that might attach to facilities which will utilize theRequested Facilities to receive electrical service. These are the lots where thecustomer(s) have previously paid to install facilities to receive power on the lots , but thelots have not been connected. Capacity has previously been reserved for these lotsand customers have been advised that power is readily available to their lot. These lotswill be exempt from paying the line capacity charges.(b)Schedule 01 , Residential , and Schedule 01 , Non-ResidentialCustomers (or their successor schedules) would pay $800 per connection.(c)Customers receiving service under Schedules 7 , 1945 and 46 (or their successor rate schedules) would pay $40 per kW of connected load.
(d)Line capacity charges will be collected for a period ending
five (5) years after the completion of the Phase 2 Requested Facilities , currently
scheduled for November 1 , 2004.
(e)Line capacity charges collected by Idaho Power will be paid
to Tamarack on a quarterly basis without interest.
(1)Planned developments such as subdivisions will pay line
capacity charges at the time of the application (when the lots are "served") and not at
the time of the physical power connection to the individual lot.
(g)
Cash allowances through Rule H would not be applicable to
reduce line capacity charges.
JOINT APPLICATION , Page 5
Limit On Aggrngate Line Capacity Charges and Vested InterestCharges.Collections and refunds for both line capacity charges and vested interestpayments will cease when Tamarack has been refunded 800/0 of the total amountTamarack has paid for distribution facilities. Idaho Power will include the tax gross-upportion of Tamarack's payments in the amount subject to refund to Tamarack. The totalamount which could be refunded to Tamarack from vested interest payments and linecapacity charges would be $1 075 571.Substation Facilities.Tamarack will pay Idaho Power $546,909 forsubstation capacity of 7.5 MW (2.5 MW for Schedule 19 load and 5 MW for non-Schedule 19 load). The prorated share for the non-Schedule 19 load of $364 606 (5000kW/7500 kW = 670/0 x $546 909) is eligible for refund. Refunds will be available for aten-year period following the completion of the Phase 2 Requested Facilities. IdahoPower will pay Tamarack $73 per kW of load (based on estimated demand) for facilities
installed within the Resort Project boundaries and taking service under Rate Schedule
45 and 46. The demand amount used for refunding purposes will
include a diversity factor and will be equivalent to the demand on the substation. The
estimated demand for a subdivision lot will be 1 0 kW per lot for a refund amount of $730
per lot. Substation refunds to Tamarack will be made after the final 2004 payment , and
only after the completion of the individual distribution work orders have been completed.
These refund payments will be made without interest with a maximum refund payout of
$364 606.
10.Service of Pleadin~Service of pleadings , exhibits , orders and
other documents relating to this proceeding should be served on the following:
JOINT APPLICATION , Page 6
DAHO POWER TAMARACKBarton L. KlineMonica B. MoenIdaho Power CompanyO. Box 70Boise, 10 83707bkline (g) idahopower .commmoen (Q? idahopower.com Steven J. MillemannMillemann, Pittenger , McMahan &Pemberton , LLPO. Box 1066706 North First StreetMcCall, 10 836382jm (g) citlink.netGregory W. SaidDirector, Revenue RequirementIdaho Power CompanyO. Box 70Boise, I D 83707gsaid (Q) idahopower.com Jean Pierre BoespflugTamarack Resort LLC475 S. Capital Blvd., Suite 200Boise, 10 83702E-mail:11.Notice of Agplication.A copy of this Application and the Agreementwill be available for public inspection at the Company s business offices in ValleyCounty.12.Modified Procedure.The Company requests that this Application
be processed under RP 201 allowing for consideration of issues to be processed under
modified procedure , i., by written submissions rather than by an evidentiary hearing.
WHEREFORE , Idaho Power and Tamarack respectfully request that the
Commission enter its Order approving the Agreement and authorizing the Company to
implement the special line installation arrangement with Tamarack Resort , LLC
described herein.
JOINT APPLICATION , Page 7
DATED at Boise , Idaho , this /,"~ay of May, 2004.BARTON L. KLI N EAttorney for Idaho Power CompanyJ. MILtEIV1ANNfor Tamarack Resort LLC
JOINT APPLICATION , Page 8
TT A CHMENT .. '
AGREEMENT TO PROVIDE ELECTRIC DISTRIBUTION FACiliTIESTHIS AGREEMENT , dated , 2004 , is by and betweenTAMARACK RESORT , LLC ("Tamarack"), an Idaho Limited Liability Company, with itsprinciple offices at 475 S. Capitol Boulevard , Boise , Idaho , and IDAHO POWERCOMPANY ("Idaho Power" or "the Company ), an Idaho corporation , with its principaloffices at 1221 West Idaho Street , Boise , Idaho. Tamarack and Idaho Power may alsobe referred to individually as "Party" or collectively as "Parties.RECIT ALSTamarack is developing a substantial four seasons resort projectResort Project") in Valley County, Idaho. Tamarack has indicated that at final buildout, the Resort Project will be a complex featuring approximately 2 000 housing unitsand approximately 272 000 square feet of commercial space along with a golf course
ski lifts and other recreational amenities with a combined electrical load of
approximately 20 MW. Because final build-out is expected to take a number of years
Tamarack has requested that Idaho Power make 7.5 MV A of electrical capacity
available to the Resort Project site by November 1 , 2004.
Because the Resort Project will be located in an area where Idaho
Power does not have existing facilities of adequate capacity and desired phase and
voltage , delivery of power (capacity) to the Resort Project's site will require the
construction of (1) underground and overhead facilities and lines to interconnect with
Idaho Power s existing transmission/distribution system ("Interconnection Facilities
and (2) installation of additional substation equipment and facilities (the "Substation
Page
Facilities ). The Interconnection Facilities and the Substation Facilities are sometimeshereinafter collectively referred to as the "Requested Facilities,Installation ofdistribution facilities within the boundaries of the Resort Project will be made inaccordance with Rule H , Idaho Power s tariff governing line installations , including anyrevisions to that rule , or any successor rules or schedules. Except as provided inSection 7 herein , this Agreement is not subject to or governed by Rule H.Idaho Power will construct the Requested Facilities in accordancewith the terms and provisions of this Agreement.NOW , THEREFORE , in consideration of the mutual obligations andundertaking set forth herein , and other good and valuable consideration , the sufficiencyis hereby acknowledged , Tamarack and Idaho Power agree as follows:AG REEM ENTS1 .Construction of Requested Facilities
The Requested Facilities will be constructed in two phases.
.. '
Phase 1 facilities constructed in 2003 will provide not more than 2
MV A of three-phase power at the Delivery Point. A general description of the Phase
facilities is attached as Exhibit
Phase 2 construction will be periormed during the 2004
construction season and will include the construction of the Requested Facilities to
provide 7.5 MW of electric capacity at the Delivery Point. A general description of the
Phase 2 Requested Facilities is attached as Exhibit 2.
Idaho Power will construct the Requested Facilities to provide for
the delivery of power (capacity) at a point generally described as the northeast corner of
Page 2
the Resort Project property at the west boundary of the West Mountain Road right ofway, as more particularly described on Exhibit 3 attached hereto (the "Delivery Point"Phase 1 construction was completed by Idaho Power in Novemberof 2003. Phase 2 construction is expected to be completed by Idaho Power on orbefore November 1 , 2004.Idaho Power will use commercially reasonable efforts to completeconstruction of the Phase 2 Requested Facilities by November 1 , 2004. HoweverTamarack recognizes that Idaho Power s ability to complete the Requested Facilities onor before that date is subject to the receipt of the payments from Tamarack asdescribed herein , Idaho Power s ability to obtain required labor , materials andequipment, timely receipt of satisfactory easements and rights of way, and timely receiptof governmental regulatory authorizations , including, but not limited to , approval of thisAgreement by the Idaho Public Utilities Commission ("Commission
If Idaho Power fails to meet the completion deadline described
above , and such failure is not excused as provided in Section 1., the Parties agree that
Tamarack may submit the matter to the Commission for appropriate relief , and pending
final resolution , Tamarack's obligation to make further payments pursuant to the terms
of this Agreement shall be suspended.
Project Cost
The total estimated cost for the design and construction of the
Requested Facilities is $2 704 886.
Page 3
The portion of the aforesaid total cost which shall be paid byTamarack will not exceed $1 891 372. (This amount assumes Tamarack will receivethe $120 000 credit referenced in Paragraph 4.~acitv EntitlementAt the completion of Phase 2 , Idaho Power will make available toTamarack 7.5 MW of electrical capacity measured at the Delivery Point to serve loadswithin the Resort Project boundaries. The Resort Project boundaries are shown onExhibit 4. However, if at the conclusion of the 15 year period following the completion ofconstruction of Phase 2 , total loads within the Resort Project boundaries are less than5 MW , Tamarack's entitlement to 7.5 MW of capacity at the Delivery Point will beended. Idaho Power will send a letter to Tamarack specifying the date whenconstruction of Phase 2 has been completed and notifying Tamarack that the 15 yeartime period described above has commenced.
Payment Provisions
Tamarack has paid Idaho Power $1 055 375 for the Phase
Requested Facilities , including the $120 000 referenced in Paragraph 4.
Tamarack has paid Idaho Power $764 798 for Phase 2 Requested
Facilities. On or before October 1 , 2004 , Tamarack will make the final payment to Idaho
Power for the Phase 2 Requested Facilities in the amount of $191 199.
If on October 1 2004 Tamarack has made the final payment and
has otherwise performed its obligations under this Agreement, Idaho Power will credit
the $120,000 paid by Tamarack on June 1 2003 against the October 1 2004 payment
amou nt.
Page 4
If Tamarack fails to make the final payment on October 1 , 2004any obligation of Idaho Power to further perform under this Agreement and to credit the$120 000 amount paid on June 1 2003 will be terminated. Idaho Power will have thesale discretion to determine if any subsequent (late) payment by Tamarack will permitthe continuation of this Agreement , or if the Agreement should be terminated.Ownership peration and MaintenanceIdaho Power will own , operate and maintain the RequestedFacilities constructed pursuant to this Agreement. Tamarack recognizes that it is payinga proportionate share of the total costs of improving a portion of Idaho Power s utilitysystem, and recognizes that Idaho Power will utilize the improvements to the system toprovide service to other customers , and that the improvements will be a part of IdahoPowers electrical transmission and distribution system.B!ghts of Wav and/or Easements
Tamarack will convey and/or grant to Idaho Power such easements
or rights of way on Tamarack's land that Idaho Power may determine are reasonably
required for locating, constructing, operating and maintaining the Requested Facilities.
All such easements and rights of way will be in a form acceptable to Idaho Power , and
will be provided to Idaho Power at no cost. Idaho Power will be responsible for
obtaining any and all permits , rights of way, and/or regulatory approvals required by
public agencies for performance of this Agreement and for payment of any and all
permit fees and/or taxes required for or associated with such permits , rights of way, and
regulatory approvals.
Page 5
Vested Interest Refund ProvisionsTamarack recognizes that in order to supply 7.5 MW of electricalcapacity at the Delivery Point that will allow Tamarack to receive electrical energy withthe power quality specifications requested by Tamarack , it will be necessary for IdahoPower to construct a portion of the Interconnection Facilities outside the Resort Projectboundaries with a capacity greater than 7.5 MV A. However , as provided in Section 3,except as may be allowed by subsequent agreement between the parties , Tamarackwill not be entitled to use more than 7.5 MW of capacity in the Interconnection Facilities.Idaho Power and Tamarack have agreed that , while this Agreementis not subject to Rule H , it would be reasonable to apply the Rule H refund principles ineffect at the time of this Agreement to a portion of the cost of the InterconnectionFacilities located outside the Resort Project boundaries. With this exception , thisAgreement is not related to nor governed by Rule H.
That portion of the Interconnection Facilities that will be subject to
refunds ("Vested Interest Portion " as that term is defined in Rule H) under this Section 7
is more particularly described in Exhibit 5. The maximum dollar amount subject to
refund under this Section 7 is also specified in Exhibit 5. These maximum dollar
amounts are hereafter referred to as the "Maximum Refund Amounts . For purposes of
this Section 7 , Tamarack will be deemed as to be an initial Applicant and a Vested
Interest Holder (as those terms are defined in Rule H) in the Vested Interest Portion of
the Interconnection Facilities specified in Exhibit 5 up to the Maximum Refund Amounts
and will be entitled to receive Vested Interest Refunds (as defined in Rule H) based on
Vested Interest Charges (as defined in Rule H) for Connections of four (4) Additional
Page 6
Applicants (as defined in Rule H) to the Vested Interest Portion of the InterconnectionFacilities described in Exhibit 5 for a period ending ten (10) years after the completion ofthe Phase 2 Requested Facilities. Notice of the commencement of the ten year periodwill be given as provided in Section 3a 1 The Vested Interest Refund limitationsdescribed in Section VI.A.1 of Rule H will be applicable to Tamarack's refundentitlement under this Agreement , except that the four Additional Applicants identified Section VI.A.1 .8. shall be limited to Additional Applicants each connecting a load of notless than 400 kW during the period ending ten years after the completion date of thePhase 2 Requested Facilities. Additional Applicants with loads smaller than 400 kW willnot trigger a refund obligation nor count against the limitation of four AdditionalApplicants.Line Capacity Char~Except for those customers identified in Paragraph 8.2 below and
the four (4) vested interest additional applicants described in Section 7 above , Idaho
Power will collect line capacity charges (LCG's) from all customers attaching to facilities
which utilize the Requested Facilities to receive electrical service. LCC's would be
assessed as follows:
(1 )Schedule 01 Residential and Schedule 01 Non-Residential
Customers (or their successor rate schedules) would pay $800 per connection.
(2)Customers receiving service under Schedule 07 , 09 , 19 , 24
45 and 46 (or their successor rate schedules) would pay $40 per kW of connected load.
Idaho Power will inventory all of the lots that are currently being
served" but are not connected that might attach to facilities which will utilize the
Page 7
Requested Facilities to receive electrical service. These are the lots where thecustomer(s) have previously paid to install facilities to receive power on the lots , but thelots have not been connected. Capacity has previously been reserved for these lotsand customers have been advised that power is readily available to their lot. These lotswill be exempt from paying the LCG.LCG's will be assessed and collected for a period ending five (5)years after the completion of the Phase 2 Requested Facilities , currently scheduled forNovember 1 , 2004.LCG's collected by Idaho Power will be paid to Tamarack on aquarterly basis without interest.Planned developments such as subdivisions will pay LCG's at thetime of the application (when the lots are "served") and not at the time of the physicalpower connection to the individual lot.
Cash allowances through Rule H would not be applicable to reduce
LCG'
Limit On AQgmgate LCe's and Vested Interest Charqes.
Refunds for both LCG's and vested interest payments under
Section 7 will cease when Tamarack has been refunded 800/0 of the total amount
Tamarack has paid for distribution facilities. Idaho Power will include the tax gross-up
portion of Tamarack's payments in the amount subject to refund to Tamarack. The total
amount which could be refunded to Tamarack under Sections 7 and 8 would be
$1 ,075 571.
Page 8
10.Substation Facilities.10.Tamarack will pay Idaho Power $546 909 for substation capacity of5 MW (2.5 MW for Schedule 19 load and 5 MW for non-Schedule 19 load). Theprorated share for the non-Schedule 19 load of $364 606 (5000 kW/7500 kW = 670/0 x$546 909) is eligible for refund. Refunds will be available for a ten-year period followingthe completion of the Phase 2 Requested Facilities. Idaho Power will pay Tamarack$73 per kW of load (based on estimated demand) for facilities installed within the ResortProject boundaries and taking service under Rate Schedule 01 , 07 , 09 , 24 , 45 and 46.The demand amount used for refunding purposes will include a diversity factor and willbe equivalent to the demand on the substation. The estimated demand for asubdivision lot will be 10 kW per lot for a refund amount of $730 per lot. Substationrefunds to Tamarack identified in this Section will be made after the final 2004 paymentspecified in Section 4., and only after the completion of the individual distribution work
orders have been completed. These refund payments will be made without interest with
a maximum refund payout of $364 606.
11 .Additional Provisions
11.Liabilitv Each Party will indemnify and hold harmless the other
Party from and against loss , damage or liability, exclusive of costs and attorney s fees
resulting from claims asserted by third persons against either or both Parties to this
Agreement on account of injury or death to persons or damage or destruction of
property occurring on such (indemnifying) Party s side of the aforesaid Delivery Point
unless such injury or damage shall have resulted from the sole negligence of the other
Party; provided , however , that each Party shall be solely responsible for claims of and
Page 9
payment to its employees for injuries occurring in connection with their employment orarising out of any worker s compensation laws.11.Limitation on Liability NEITHER PARTY SHALL , IN ANY EVENTBE LIABLE TO THE OTHER FOR ANY SPECIAL , INCIDENTAL , EXEMPLARYPUNITIVE OR CONSEQUENTIAL DAMAGES SUCH AS, BUT NOT LIMITED TOLOST PROFITS, REVENUE OR GOOD WILL , OR INTEREST , WHETHER SUCHLOSS IS BASED ON CONTRACT , WARRANTY , NEGLIGENCE , STRICT LIABILITYOR OTHERWISE.11.Waivers Any waiver at any time by either Party of any right withrespect to any matter arising under this Agreement , or any failure to give noticeprovided hereunder , shall not be deemed to be a waiver with respect to any subsequentmatter, nor as the establishment of or consent to any practice under this Agreement oran interpretation of any term or provision hereof.
11 .Successors and AssiQ!JE.. Neither Party shall assign this
Agreement or any portion thereof without the prior written consent of the other Party,
which consent of such other Party shall not be unreasonably withheld. Upon proper
assignment, this Agreement shall inure to the benefit of and be binding upon the
successors in interest , assigns and legal representatives of Tamarack and Idaho Power.
Regulatory Authority This Agreement is subject to valid laws and
to the regulatory authority and orders , rules and regulations of the Idaho Public Utilities
Commission and such other administrative bodies having jurisdiction , as well as Idaho
Power Company s Rules and Regulations as now or may be hereafter modified and
approved by the Idaho Public Utilities Commission.
Page 10
11.Choice of Law and Venue This Agreement shall be governed byand construed in accordance with the laws of the State of Idaho , and venue for anycourt proceeding arising out of this Agreement shall be in Boise , Idaho.11.Modifications and Counterparts . This Agreement may only amended or modified by a writing signed by the duly authorized representatives of bothparties. This Agreement may be executed in counterparts, each of which , takentogether, shall constitute one and the same Agreement.12.Commission AQProval.This Agreement shall be subject to the approval ofthe Commission and the respective rights and obligations of the Parties hereunder shallbe subject to the continuing jurisdiction and regulatory authority of said Commission.IN WITNESS WHEREOF , the Parties have entered into this Agreementeffective as of the day and year fi rst above written.
TAMARACK RESORT , LLC
By:
Title:
IDAHO POWER COMPANY
C-.
Page
Exhibit Phase 1 Interconnection FacilitiesThe objective of the 2003 construction activities is to provide up to 1 MV A of threephase power at the Delivery Point.Phase 1 Interconnection Facilities will include Segment 2 overhead facilities , Segment 3underground facilities and Segment 4 overhead facilities.Segment 2 - Four Corners to Tamarack Falls:The overhead distribution system will be approximately 2.8 miles long andconstructed with 795 kcmil AAC (All Aluminum Conductor) conductors for 35 kVoperation.Segment 3 - Tamarack South to the west side of Section 29:The underground distribution facility will be installed in a conduit system forapproximately 1.2 miles long. The system will-be designed for 35 kV operationwith two circuits of 350 mcm aluminum conductor.Segment 4 - West Section 29 to Tamarack:The overhead distribution system will be approximately 1 .9 miles long and
constructed with 336 kcmil AAC conductors for 35 kV operation.
Phase 1 Interconnection Facilities will also include improvements to approximately 1.
miles of existing facilities on Roseberry Road between Main Street in Donnelly and
Norwood Road.
If the underground facilities of Segment 3 and the Roseberry Road improvements can
be completed in 2003 , up to 2 MV A of capacity will be available at the Delivery Point.
EXHIBIT
Exhibit 2Phase 2 Requested FacilitiesThe objective of the 2004 construction activities is to provide 7.5 MV A of three phasepower at the Delivery Point.Phase 2 Interconnection Facilities will install all of the Segment 1 overhead facilities andrequired substation facilities. Segment 1 - Donnelly Substation to Four Corners:The overhead distribution system will be approximately 4.6 miles long andconstructed with 795 kcmil AAC conductors for 35 kV operation.Substation Facilities:Replacement of the Donnelly Substation transformer with a nominal 20 MV Atransformer and other substation improvements associated with a 20 MV A classtransformer, or installation of transformer equipment of equivalent capacity atanother substation sufficient to provide 7.5 MW of electricity at the Delivery Point.
EXHIBIT 2
Exhibit 3Delivery Point Description
EXHIBIT 3
EXHIB IT (Page 1 of 1)Delivery Point Description
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EXHIB IT 4(Page 2 of 3)Description of Resort Project BoundariesC. A parcel of land located in the NI/2 Sl/Z'-NIJ2 , Section 8, Townsh~p 15 North , Range3 Eas~ Boise Meridian , Valley County, Idaho.Parcel No.. 2: Be~inninQ: at the Northwest Comer of the 1/2 SW 1/4 NW 1/4: thence..... -South 16 feet to a point: thence Easr 3630 feeL more or less; thenceNonh 216 feet to the northeast comer of the NW 1/4 NW 1/4 SE 1/4!'JEl/4~ thence West 3630 feet fa the PL~A..CE OF BEGINNING; ValleyCounry, Idaho , AKf\ Tax No.1 in Sectjon 8 , Township 15 Nonh, Range3 East. Boise Meridian- Valley County Idaho.Recorded in Book No.6., Page No. 681 of Record of Surveys. Instrument.., ... ..,.. 0...... ~ ~.D. A parcel .of 12nd located in Sections 7 , 8 ~ 17 ~ 18 Township 15 NorthRange 3 East, Boise , Meridian ., 'lalley County,-Idaho.Parcel HB'~Being parcels of land located in Sections 7 ~ 8. 17 and 18~ Township North ~ Range :3 East.. Boise Meridian..Valley County~ Idaho1 moreparticu arl y described as f 011 ows
Section 17:
Section 18:
NEI/4 of the NEI/4; 51/2 of the NEI/4~ and the SE1/4.
N 1/2 of the N\V 1/4: Wl/2 of the SWI/4 of the ~W 1/4:
nnd the W 1/2 of (he V./IJ of the SW 1/4.
V-'llt2 of the NW 1/4 bf the NW 1/4.
~ 1/2 of lhe NE 1/4~
Sectjon 7:
Section. 8:
Parcel "'C!I'
eing parcels of land locared in Section 8, Township 15 North~ Range
East. Boise Meridjan , VaHey County~ Idaho.. more particularly described
as fenews:
~ll of that cenain parcel of land shown as BLUE MOUNTAIN
SUBDIVISION, recorded in Drawer 1 of plats , as instrument No.
1062'26.. Valley County Records , Valley County, Idaho~ SAVE and
EXCEPT Lors 6., and 8 therefrom, and W 1/2 of the W 1/2 of (he SEl/4
of the NE 1/4: SW 1/4 of the NE 1/4~ SE 1/4 of the NW 1/4~ El/2 of the
SWI/4 of (he NWl/4; El/2 of the Wl/2 of the SWIJ4; El/2 of the
SWl/4~ WIJ2 of the SW1/4 of the SEl/4; NI/2 of the NWI/4 of the
SEIJ4; SW1J4 of rhe NWl/4 of the SEl/4~ and the North 12 rods of the
SEl/4 of the NWIJ4 of the SE1/4.
EXCEPTING therefrom a strip of land- 216 feet wide along the north
portion thereof.. more panicularly described as follows:
EXHIBIT 4(Page 3 of 3)Description of Resort Project BoundariesBEGINNING at the northwest comer of the Ell2 of the SWl/4 of theNW 1/4; thence.. South 216. feet; rhence 't East 3630 feet more or Jessthence, North 216 leer to the noI1he~st comer of the NW 1/4 of the NW 114of the SEl/4 of the NEI/4~ thence West 3630 feet more or less to thePOll'JT OF BEGINNING. And EXCEPTING therefrom NORTHLAKE SUB'DIVISION NO.filed as Instrument No. 82698 , Valley County Records" Valley County,Idaho~And EXCEPTL'iG therefrom !'JORTHLAKE SUBDIVISION NO.filed as Instrument No.06231. Valley County Records, Valley County,Idaho.Parcel '.F" 'Being: 3 Lots located in BLUE MOUNT..~N SUBDIVISION , situated inSection 8~ To\\-'nship 15 N orth~ Range East, Boise Meridian. 'lalleyCounty~ Jdaho. more panjcular1y described as follows:, 'i~ll of L,ots 6. 7 and 8 of BLUE MOlJNT AIN SUBDIVIS;ION recordedin .Drawer 1 of plals.. as Instrument No. 106226" ,Valley County Records~y. alley Counrv - Idaho. 'II . CO!\T~;\INL\JG 7 07 ACRES.. more or less.
Recorded in Book No.6.. Pa!2e No. 683 of Record of Survevs. Instrument
440
""'"
o.
.: :);).
E. A parcel of land in Township 16 North, Ranges 2 and 3 East., B.M. '\talley Cpunty:
State Mountain ~os. 1 and 2"
Section 36. Township 16 North Range :2 East and Section 31, -Township
16 Nonh~ Range East and the S the NW 1/4 , the S 1/2 NE 1/4
..
and, the
NW 1/4 NE 1/4 .. Sect.ion 30, Township 16 North Range 2 East and the
SW 1/4 , the NW 1/4 5W"1/4 SEIJ4 , the SW 1/4 SW 1/4 SE 1/4 and the
SEI/4 SWl/4 SEI/4, Section 19, Township 16 Nonh.,.Range 2 East.
CONTANJNG 2,070 ~~CRES, more or 1ess.
F. A parcel of Jand in Section 8, Township 15 North R3nge 3 East, B..M"
V alle'V County: '~State Meadow
.. ...
The NWl/4 N,E1/4 and the \N'1/2 NEI/4 NEI/4 , Section 8, Township
North
.,
Ran2e 3 East.
....
CONTAINJNG '60 ACRES , more or less.
Exhibit 5Portion of Interconnection Facilities Subject Vested Interest Refund and Maximum Refund Amount(s)Vested Interest refunds will only apply to the "distribution " facilities including tax gross-up amounts paid for by Tamarack.The provisions of the vested interest refunds are detailed in the Rule H tariff. Some ofthe notable provisions of vested interest for this project are as follows:. Tamarack , as the initial applicant , will be eligible to receive up to BO% ofthe original investment for the installation of distribution facilities , as avested interest refund. The improvements to the existing facilities onRoseberry Road installed during Phase 1 to increase the capacity at theDelivery Point in 2003 from 1 MV A to 2 MV A will not be eligible for vestedinterest refunds.Tamarack will be eligible for vested interest refunds from four AdditionalApplicants during the ten (10) year period following the completion date ofPhase 2.The method for calculating vested interest will follow the provisions of theRule H tariff and the four Additional Applicants will have the choice of
Option 1 or Option 2 for determining their vested interest payment amount
as detailed in the Rule H tariff.
Connections made inside the Resort boundaries described by Tamarack
in Exhibit 4 and included in the 7.5 MW maximum load request will not be
considered Additional Applicants for the purpose of vested interest
Phase 1 Facilities Phase 2 Facilities
Vested Interest Portion
Maximum Refund Amount
$881 ,656
$705 325
$462 808
$370 246
EXHIBIT 5