20060127Revised Appendix B.pdf

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Idaho Public Utilities Commission
Attn: Jean Jewell
PO Box 83720
Boise, ID 83720-0074
Dear Ms. Jewell:
Randy C. Allphin
Contract Administrator
January 26 2006
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Attached is a correspondence and a revised Appendix B to be included with the Firm Energy
Sales Agreement between US Geothermal Inc and Idaho Power Company dated December 29
2004 approved by Idaho Public Utilities Commission Order number 29692 on January 24
2005.
Please return to me a file stamped copy, acknowledging receipt of this letter and the attached
Exhibit B.
Cc:Rick Sterling (lPUC)
Scott Woodbury (lPUC)
Bart Kline (lPCo)
Dan Kuntz (US Geothermal)
Sincerely,
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Randy C Allphin
Idaho Power Company
Telephone: [phone]
Page 1 of 1
Fax: [phone] Rallphin(1!lldahopoweLcom
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Randy C. Allphin
Contract Administrator
January 26 , 2006
Daniel Kunz
US Geothermal Inc
1509 Tyrell Land, Suite B
Boise, ID 83706
Original:USMail
Copy:Mai I dkunz~usgeothermal.com
kkitz~usgeothermal.com
Dear Mr. Kunz
Idaho Power has received and reviewed your letter dated January 6, 2006 to Mr. Miller
in which you have requested to revise various items within Appendix B of the previously
approved Firm Energy Sales Agreement between Idaho Power Company and US Geothermal
Inc dated December 29 , 2004. This Firm Energy Sales Agreement was previously approved
by Idaho Public Utilities Commission Order number 29692.
Section B-Description of Facility
As you have summarized in your letter and in previously provided draft working
documents, the changes you have proposed, which provide significant detail of the actual
Facility, is consistent with the original Appendix B as the original Appendix B stated
Appendix B shall be amended to include final details of RRGPP 1 upon completion of the
design
Section Location of Facility
No Change
Page 1 of 1
Telephone: [phone] Fax: (208) -133.5163 Rallphin,'ii'Idahopo\\er,colll
Section B-Scheduled Operation Date
Request to revise the Scheduled Operation Date from June l5 , 2006 to August l , 2007.
Idaho Power and US Geothermal have been in extensive discussions and
negotiations of a single QF agreement for this entire site that would result in a larger
facility. At this time both parties have agreed that these discussions are not resulting in
an agreement that can be accepted by both parties. It is Idaho Power s understanding
that development and financing of the Facility within the original agreement was
delayed pending the outcome of the discussions and negotiations for a single, largerfacility. Your request to revise the Scheduled Operation Date to August 1 , 2007 is
reasonable in consideration of the circumstances.
Section B-Maximum Capacity Amount
Request to set the Maximum Capacity Amount at 15.9 MW.
As stated in the original Appendix B , this value was to be provided to Idaho
Power in a request for an Idaho Power Electrical System Study.
Idaho Power accepts your request to revise the Maximum Capacity Amount to be
15.9 MW. However, our acceptance of this Maximum Capacity Amount assumes that
US Geothermal has confirmed with the Idaho Power delivery business unit that the
Idaho Power electrical system is capable of accommodating 15.9 MW at the Point of
Delivery.
, as of the date of this letter, the Idaho Power delivery business unit has not confirmed
this Maximum Capacity Amount, Idaho Power reserves the right to revise the
Maximum Capacity Amount to a lower level if during the confirmation process it is
determined that the Idaho Power electrical system in unable to accommodate the
Maximum Capacity Amount as requested by US Geothermal.
Section B-Point of Delivery
No Change
Section B-Losses
No Change
Section B- 7 Metering and Telemetry
No Change
Page 2 of 2
Telephone: [phone] Fax: (208) -133,5163 Rallphin1i'IdahopO\\'er,com
Section B-Reactive Power
No Change
Section B-Costs
No Change
Summary
Idaho Power accepts your proposed revisions to Appendix B as you have proposed and
as we have summarized above. Attached for your convenience is a copy of the revised
Appendix B , which you provided in your letter dated January 6 2006.
Idaho Power will forward a copy of this letter and the revised Appendix B to the IdahoPublic Utilities Commission (IPUC) for inclusion with the previously approved Firm EnergySales Agreement. If the IPUC requires any fm1her action on this matter, Idaho Power will
advise US Geothermal of the IPUC request and US Geothermal and Idaho Power will'
mutually work to resolve any addition IPUC requirements.
Only the identified items within Appendix B of the Firm Energy Sales Agreement are
revised by this letter, all other terms and conditions of the Firm Energy Sales Agreement are
not modified and will be administered as specified by the original Firm Energy Sales
Agreement.
Please contact me at your convenience with any questions you may have.
Sincerely,
f, aap-f.
Randy C Allphin
Idaho Power Company
Cc:Karl Bokenkamp (lPCo)
Bart Kline (IPCo)
Kevin Kitz (US Geothermal)
Jean Je\\'ell (lPUC)
Page 3 of 3
Telephone: (208) 388,261~Fax (208) -133,5163 Raliphintf!ldahopower,colll
APPEND IX B
FACll.JTY AND POINT OF DELIVERY
PROJECT NO. 31765155
RAFT RIVER GEOTHERMAL POWER PLANT
Revision 1 - January 6, 2006
DESCRIPTION OF FACILITY
The Facility is the Raft River Geothermal Power Plant, Unit #1 (RRGPP-l). The
RRGPP-l is an Ormat OECTM water-cooled, closed-loop, Rankine cycle geothermal
power plant using pentane as the working fluid, and auxiliary equipment. The Facility
includes two Ormat turbines (one HP (high pressure) and one LP (low pressure) turbine)
coupled to a single generator with a gross nameplate rating of 18 MW, and a generator
voltage of 12.47 kV. After Facility Station Use (including pumps and fans, compressors
lighting, transformer losses, and other auxiliary loads), the Maximum Capacity Amount
of the generator will be as specified in Section B-2 of this Appendix B. Power will
delivered to the Transmitting Entity on the high side of the 34.5kV step-up transformer
through the Idaho Power Metering Equipment and after Station Use. Each turbine
discharges to a 2-shell condenser and is fed by a 2-shell vaporizer with a 2-shell pre-
heater and two feed pumps using geothermal fluid as the heat source. The HP turbine has
a desuperheater/economizer between the turbine and the condenser. Cooling water will
be supplied by two circulating water pumps in the basin of a four-cell counterflow
cooling tower. The Facility is protected by a fire water system comprising fire water
pumps, pipes, monitors, and so on. Geothermal fluid will be delivered to the Facility
from four or more geothermal production wells. Residual geothermal fluid will be
reinjected via two or more injection wells.The Geothermal Production Well
Contribution Ratings summation equals the Maximum Capacity Amount and are:
Production Well RRG#1 55 MW
Production Well RRG#2 23 MW
Production Well RRG#3 95 MW
Production Well RRG#5 17 MW
The Geothermal Production Well Contribution Ratings will be updated after completion
of the 2006 drilling and testing activities and prior to the Operation Date per the terms of
Paragraph 14.4.
LOCATION OF FACll.JTY
The Facility is located at: Section 23, Township 15 South, Range 26 East, Cassia
County, Idaho.
SCHEDULED OPERATION DATE
Seller has selected August 1 , 2007, as the Scheduled Operation Date.
MAXIMUM CAPACITY AMOUNT:
The Maximum Capacity Amount is 15.9 MW.
POINT OF DELIVERY
Point of Delivery" means, unless otherwise agreed by both Parties, the point of
interconnection between Idaho Power and the Transmitting Entity at the Minidoka dam
substation. The Transmitting Entity will be the Bonneville Power Administration -
Transmission Business Line.
LOSSES
If Idaho Power is provided acceptable and accurate energy (kWh) delivery data by the
Transmitting Entity for actual energy delivered at the Point of Delivery on the Idaho
Power electrical system for this Facility, no energy loss calculation will be required. If
the Transmitting Entity does not provide acceptable and accurate energy delivery data to
Idaho Power then a Loss calculation will be required. The Loss calculation will consist
of the most accurate measurement of the energy losses (kWh), agreed to by both parties
associated with transformation and transmission of the Facility s generated energy
between the Transmitting Entity s or Idaho Power s metering point and the Point of
Delivery on the Idaho Power electrical system. This loss calculation will be initially set
at 2% of the kWh energy production recorded on the Transmitting Entity s or Idaho
Power s Metering equipment. At such time as the Seller provides Idaho Power with
electrical equipment specifications (transformer loss specifications, conductor sizes, etc)
of all of the electrical equipment between the Transmitting Entity s or Idaho Power
Metering equipment and the Point of Delivery on the Idaho Power electrical system or
other acceptable calculations of this energy loss, Idaho Power will configure a revised
loss calculation formula to be agreed by both parties and used to calculate the kWh
Losses for the remaining term of the Agreement. If, at anytime during the term of this
Agreement, the Parties agree that the loss calculation does not correctly reflect the actual
kWh losses attributed to the electrical equipment between the Idaho Power Metering
Equipment and the Idaho Power electrical system, Idaho Power shall adjust the
calculation and retroactively adjust the previous months kWh loss calculations.
METERING AND TELEMETRY
If Idaho Power is required to install metering and telemetry equipment as specified in
Article 11 of this Agreement, the Idaho Power Metering Equipment, provided by Idaho
Power at the Sellers expense will be located at a point that will enable the Metering
Equipment to measure the Facility s total energy deliveries to the Transmitting Entity.
Telemetry equipment will be installed by Idaho Power at the Seller s expense that will
be able to provide continuous telemetering of the Facility s energy deliveries to the
Transmitting Entity. The Seller will arrange for and make available at Seller s cost, a
communications circuit acceptable to Idaho Power, dedicated to Idaho Power s use to be
used for load profiling and another communications circuit dedicated to Idaho Power
communication equipment for continuous telemetering of the Facility s energy
deliveries to the Transmitting Entity to Idaho Power s Designated Dispatch Facility.
The meters will register kilowatt-hours and kilowatts of demand. Idaho Power provided
meter and communication equipment will be owned and maintained by Idaho Power
with total cost of purchase, installation, operation and maintenance including
engineering and administrative cost to be reimbursed to Idaho Power by the Seller.
Seller metering equipment will be located at all necessary points within the Seller
Facility to accurately measure each generators energy production, Station Usage, and
any other energy diversions that occur prior to the Idaho Power Metering Equipment.
REACTIVE POWER
Idaho Power will provide no reactive power to the Facility.
COSTS
The cost of the Metering and Telemetry Equipment will be determined based upon the
final design of the Facility and this total cost will be paid to Idaho Power in accordance
with Schedule 72. In addition to the installation and construction charges above, during
the term of this Agreement, Seller will pay Idaho Power the monthly operation and
maintenance charge specified in Schedule 72 or its successor schedules(s). The monthly
operations and maintenance charge will begin on the first day of the month following
completion of the installation of the Idaho Power provided equipment. The monthly
operations and maintenance charge will be based upon the initial cost paid by the Seller
in accordance with Schedule 72. Upon reconciliation of the actual costs, in accordance
with Schedule 72 the monthly operations and maintenance charge will be adjusted to
reflect the actual cost incurred by Idaho Power and the previously charged monthly
operation and maintenance expense will be revised to reflect the actual cost incurred by
Idaho Power. Idaho Power will refund or Seller will remit any underpayment of the
adjusted monthly operations and maintenance charge within sixty (60) days of the
determination of this amount. In addition, there will be a monthly charge for the
communication circuit lease cost associated with the telemetry equipment.Seller
recognizes that the monthly communications circuit charge may be adjusted by Idaho
Power as the cost to Idaho Power is adjusted by the owner of the communication
circuit(s).