20050214Application.pdf

MONICA MOEN , ISB # 5734
BARTON KLINE , ISB # 1526
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 A FIRM ENERGY SALES AGREEMENT
FOR THE SALE AND PURCHASE OF
ELECTRIC ENERGY BETWEEN IDAHO
POWER COMPANY AND LEWANDOWSKIFARMS. CASE NO. IPC-O5-
APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or the "Company ) and
pursuant to RP 52 , hereby applies for an Idaho Public Utilities Commission ("IPUC" or the
Commission ) Order approving a Firm Energy Sales Agreement between Idaho Power and
Lewandowski Farms under which Lewandowski Farms would sell and Idaho Power would
purchase electric energy generated by the Lewandowski Farms wind generation project
Project") located on Simco Road east of Boise, Idaho.
This Application is based on the following:
The Project consists of three (3) Micon , 108 kW wind generation machines.
APPLICATION -
II.
Lewandowski Farms is currently selling energy to Idaho Power from this
Project under a previously approved Schedule 86 , Uniform Agreement for the sale of non-
firm energy to Idaho Power, dated May 1 , 2001 (approved in IPUC Order 28795) and
amended on May 28, 2004. The Project will continue to be a qualified small power
production facility under the applicable provisions of the Public Utilities Regulatory Policy
Act of 1978 ("PURPA"
III.
On February 1 0, 2005 , Idaho Power and Lewandowski Farms entered into a
Firm Energy Sales Agreement ("Agreement") pursuant to the terms and conditions of
Commission Order No. 29632 and Commission Order 29646 to replace the existing
Schedule 86 agreement for this Project. Under the terms of that Agreement, Lewandowski
Farms elected to contract with Idaho Power for a 5-year term. Lewandowski Farms further
elected to contract with the Company using the Non-Levelized Published Avoided Cost
Rates as currently established by the Commission for energy deliveries of less than
average MW.
IV.
In many respects, this Agreement is similar to the agreement entered into by
Idaho Power and US Geothermal that was recently approved in Commission Order 29692
dated January 24 2005. This agreement contains the various PURPA terms and
conditions previously approved by the Commission in other PURPA agreements and as
revised by Commission Order No. 29632 in Case No. I PC-04-8 (US Geothermal
complaint). This Agreement also notes that that the Project has an existing Schedule 86
Non Firm energy sales agreement and is currently selling energy to Idaho Power.
APPLICATION - 2
The nameplate rating of this Project is 324 kW with a maximum generation
capability of 400 kW (Appendix B of the Agreement). Therefore, as stated in paragraph
9 of the Agreement, this Project is eligible for the less than 10 average MW published
avoided cost rates.
VI.
Because this Project is currently interconnected and selling energy to Idaho
Power under a Schedule 86, non-firm agreement, interconnection of this Project to the
Company s distribution system is completed. The previously established interconnection
costs set out in the Schedule 86 agreement will be used to value the interconnection costs
under the proposed Agreement. The applicable monthly Schedule 72 charges will apply.
VII.
Section 24 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 to Lewandowski Farms for purchases
of energy will be allowed as prudently incurred expenses for ratemaking purposes.
VIII.
Within this Agreement, various requirements have been placed upon
Lewandowski Farms in order for Idaho Power to accept energy deliveries from this Project.
Idaho Power will monitor compliance with these initial requirements.Once these
requirements have been met , the existing Schedule 86 agreement will be terminated
(paragraph 5.4 of the Agreement). In addition , Idaho Power will monitor the ongoing
requirements through the full term of this Agreement. Should the Commission approve this
APPLICATION - 3
Agreement, Idaho Power intends to consider the Effective Date of the Agreement to be
February 10 , 2005.
IX.
The Agreement, as signed and submitted by the Parties thereto , contains
Non-Levelized Published Avoided Cost Rates in conformity with applicable IPUC Orders.
Service of pleadings, exhibits, orders and other documents relating to this
proceeding should be served on the following:
Monica B. Moen , Attorney
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 Lewandowski Farms without change or condition; and
(2)Declaring that all payments for purchases of energy under the firm
Energy Sales Agreement between Idaho Power Company and Lewandowski Farms be
allowed as prudently incurred expenses for ratemaking purposes.
Respectfully submitted this 11 th day of February 2005.
MONICA B. MOEN
Attorney for Idaho Power Company
APPLICATION - 4
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on the 11 th day of February 2005, 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:
Robert Lewandowski
Lewandowski Farms
2136 S Simco Road
Boise, ID 83716
Hand Delivered
S. Mail
Overnight Mail
FAX
~ (/3
MONICA B. MOEN
CERTIFICATE OF SERVICE
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O5- 63
IDAHO POWER COMPANY
EXHIBIT
Article
FIRM ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
LEWANDOWSKI FARMS
TABLE OF CONTENTS
TITLE
Definitions
No Reliance on Idaho Power
Warranties
Conditions to Continued Acceptance of Energy
Term and Operation Date
Purchase and Sale of Net Energy
Purchase Price and Method of Payment
Environmental Attributes
Facility and Interconnection
Disconnection Equipment
Metering and Telemetry
Records
Protection
Operations
Indemnification and Insurance
Force Majeure
Land Rights
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
2/10/2005
FIRM ENERGY SALES AGREEMENT
(10 aMW or Less)
LEWANDOWSKI FARMS
Project Number: 21615079
THIS AGREEMENT, entered into on this 10th day of February , 2005 between
LEWANDOWSKI FARMS , an Idaho corporation (Seller), and IDAHO POWER COMPANY, an
Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as "Parties" or
individually as "Party.
WITNESSETH:
WHEREAS , Seller, owns, maintains and operates an electric generation facility; and
WHEREAS , Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy
produced by the Seller s Facility.
THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the
Parties agree as follows:
ARTICLE I: DEFINITIONS
As used in this Agreement and the appendices attached hereto, the following terms
shall have the following meanings:
1.1 Commission" - The Idaho Public Utilities Commission.
1.2 Contract Year - The period commencing each calendar year on the same calendar date as the
Operation Date and ending 364 days thereafter.
1.3 Designated Dispatch Facility" - Idaho Power s Systems Operations Group, or any subsequent
group designated by Idaho Power.
1.4 Disconnection Equipment"- All equipment specified in Appendix B and Appendix D.
1.5 Facility" - That electric generation facility described in Appendix B of this Agreement.
1.6 Generation Interconnection Process" - Idaho Power s generation interconnection application
and engineering review process developed to ensure a safe and reliable generation
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1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
interconnection in compliance with all applicable regulatory requirements, Prudent Electrical
Practices and national safety standards.
Inadvertent Energy" - Electric energy Seller does not intend to generate. Inadvertent energy is
more particularly described in paragraph 7.3 of this Agreement.
Interconnection Facilities - All equipment specified in Appendix B and Appendix D.
Initial Capacity Determination - As specified in Appendix B of this Agreement, the Maximum
Capacity of this Facility is 400 kW. Therefore, Idaho Power accepts this Maximum Capacity
data and the associated nameplate data as establishing that under normal or average design
conditions, this Facility s average monthly energy deliveries to Idaho Power will not exceed 10
MW and is therefore eligible to be paid the published rates in accordance with Commission Order
No. 29632.
Losses" - The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result
of the transformation and transmission of energy between the point where the Facility s energy is
metered and the point the Facility s energy is delivered to the Idaho Power electrical system. The
loss calculation formula will be as specified in Appendix B of this Agreement.
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.
Material Breach" - A Default (paragraph 22.1) subject to paragraph 22.
Maximum Capacity Amount" - The maximum capacity (MW) of the Facility will be as
specified in Appendix B of this Agreement.
Metering Equipment"- All equipment specified in this Agreement and specified in Appendix B
and Appendix D required to measure, record and telemeter power flows between the Seller
electric generation plant and Idaho Power s system.
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1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22
1.23
Net Energy" - All of the electric energy produced by the Facility, less Station Use, less Losses
expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at
the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent
Energy.
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" - The location specified in Appendix B, where Idaho Power s and the
Seller s electrical facilities are interconnected.
Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and
ordinarily used in electrical engineering and operations to operate electric equipment lawfully,
safely, dependably, efficiently and economically.
Schedule 72"- Idaho Power s Tariff No 101 , Schedule 72 or its successor schedules as
approved by the Commission.
Season - The three periods identified in paragraph 6.1 of this Agreement.
Special Facilities - Additions or alterations of transmission and/or distribution lines and
transformers as described in Appendix B, Appendix D, Schedule 72 or the Generation
Interconnection Process required to safely interconnect the Seller s Facility to the Idaho Power
system.
Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise
related to the production of electricity by the Facility.
Surplus Energy" - (1) Net Energy produced by the Seller s Facility and delivered to the Idaho
Power electrical system during the month which exceeds 110% of the monthly Net Energy
Amount for the corresponding month specified in paragraph 6.2. or (2) If the Net Energy
produced by the Seller s Facility and delivered to the Idaho Power electrical system during the
month is less than 90% of the monthly Net Energy Amount for the corresponding month
specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power
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3.2
electrical system for that given month or (3) All Net Energy produced by the Seller s Facility and
delivered by the Facility to the Idaho Power electrical system prior to the Operation Date.
1.24 Total Cost of the Facility" - The total cost of structures, equipment and appurtenances.
ARTICLE ll: 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 i~ 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
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.
Qualifying Facility Status - Seller warrants that the Facility is a "Qualifying Facility," as that term
is used and defined in 18 CFR ~292.207. After initial qualification, Seller will take such steps as
may be required to maintain the Facility s Qualifying Facility status during the term of this
Agreement and Seller s failure to maintain Qualifying Facility status will be a Material Breach of
this Agreement. Idaho Power reserves the right to review the Seller s Qualifying Facility status
and associated support and compliance documents at anytime during the term of this Agreement.
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ARTICLE IV: CONDITIONS TO CONTINUED ACCEPTANCE OF ENERGY
Prior to an Operation Date being issued for the Seller s Facility, the Seller shall complete the
following:
1.1
1.2
1.4
1.5
1.6
This Facility is currently interconnected to Idaho Power and is selling energy to Idaho
Power as a Qualifying Facility in accordance with a Schedule 86, Uniform Agreement
for the sale of non-firm energy to Idaho Power, dated May 1 , 2001 and amended on May
, 2004. The Seller has previously submitted proof to Idaho Power that all licenses
permits or approvals necessary for Seller to operate under the current Schedule 86
agreement 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.
The Seller shall submit any additional permits required for the Facility to operate under
this Firm Energy Sales Agreement.
Engineer s Certifications - This Facility is currently interconnected to Idaho Power and
is selling energy to Idaho Power as a Qualifying Facility in accordance with a Schedule
, Uniform Agreement for the sale of non-firm energy to Idaho Power, dated May 1
2001 and amended on May 28, 2004. The Seller will submit a Certification of Ongoing
Operations and Maintenance (0 & M) as described in Commission Order No. 21690
that has been completed no more than 60 days prior to the effective date of this
Agreement. This certificate 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 - Seller shall submit written proof to Idaho Power of all insurance required in
Article XV.
Interconnection - Seller shall complete all interconnection modifications, upgrades or
additions as specified in Appendix D of this Agreement.
Seller shall demonstrate to Idaho Power s reasonable satisfaction that the Facility is
capable of delivering Net Energy in the amounts as specified in paragraph 6.2 of this
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Agreement for the full term of this Agreement in a consistent, reliable and safe manner.
1.7 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 - This agreement shall be in full force and effect for a period of five (5) Contract Years
from the Operation Date.
5.2 Operation Date - The Operation Date may occur only after the Facility has achieved all of the
following:
a) Completed all requirements of Article IV of this Agreement
b) Commission approval of this Agreement in a form acceptable to Idaho Power has
been received.
c) Seller has requested an Operation Date from Idaho Power in a written format.
d) Seller has received written confirmation from Idaho Power of the Operation Date.
This confirmation will not be unreasonably withheld by Idaho Power.
5.3 Seller s failure to complete all of the requirements of Article IV, Conditions to Acceptance of
Energy of this Agreement within 120 days of the effective date of this Agreement will be an
event of default.
5.4 Upon completion of the requirements of paragraph 5., the Schedule 86, Uniform Agreement for
the sale of non-firm energy to Idaho Power, dated May 1, 2001 and amended on May 28, 2004
for this Facility will be terminated effective as of the Operation Date of this Agreement.
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ARTICLE VI: PURCHASE AND SALE OF NET ENERGY
Delivery and Acceptance of Net Energy - Except when either Party s performance is excused as
provided herein, Idaho Power will purchas.e and Seller will sell all of the Net Energy to Idaho
Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also
delivered by the Seller to Idaho Power at the Point of Delivery. At no time will the total amount
of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to
the Point of Delivery exceed the Maximum Capacity Amount.
Net Energy Amounts - Seller intends to produce and deliver Net Energy in the following monthly
amounts:
Initial Year Monthly Net Energy Amounts:
Season 1
Month kWh
March 000
April 39,500
May 000
July 000
August,17,500
November 000
December 000
June 500
September 000
October 000
January 16,000
February 000
Season 2
Season 3
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6.2.2
2.4
Ongoing Monthly Net Energy Amounts - Seller shall initially provide Idaho Power with
one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts)
and beginning at the end of month nine and every three months thereafter provide Idaho
Power with an additional three months of forward generation estimates. This information
will be provided to Idaho Power by written notice in accordance with paragraph 28., no
later than 5 Pm of the 5th day following the end of the previous month. If the Seller does
not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho Power
will use the most recent 3 months of the Initial Year Monthly Net Energy Amounts
specified in paragraph 6.1 for the next 3 months of monthly Net Energy amounts.
Seller s Adjustment of Net Energy Amount
2.3.1 No later than the Operation Date, by written notice given to Idaho Power in
accordance with paragraph 28., the Seller may revise all of the previously
provided Initial Year Monthly Net Energy Amounts.
2 Beginning with the end of the 3rd month after the Operation Date and at the end
of every third month thereafter: (1) the Seller may not revise the immediate next
three months of previously provided Net Energy Amounts, (2) but by written
notice given to Idaho Power in accordance with 'paragraph 28., no later than 5
Pm of the 5th day following the end of the previous month, the Seller may revise
all other previously provided Net Energy Amounts. Failure to provide timely
written notice of changed amounts will be deemed to be an election of no change.
Idaho Power Adjustment of Net Energy Amount - If Idaho Power is excused from
accepting the Seller s Net Energy as specified in paragraph 14.1 or if the Seller declares
a Suspension of Energy Deliveries as specified in paragraph 14.1 and the Seller
declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy
Amount as specified in paragraph 6.2 for the specific month in which the reduction or
suspension under paragraph 14.1 or 14.1 occurs will be reduced in accordance with
the following:
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Where:
NEA Current Month's Net Energy Amount (Paragraph 6.
SGU ) If Idaho Power is excused from accepting the Seller s Net
Energy as specified in paragraph 14.1 this value will be
equal to the percentage of curtailment as specified by
Idaho Power multiplied by the TGU as defined below.
) If the Seller declares a Suspension of Energy Deliveries as
specified in paragraph 14.3.1 this value will be the sum of
the individual generation units size ratings as specified in
Appendix B that are impacted by the circumstances
causing the Seller to declare a Suspension of Energy
Deliveries.
TGU Sum of all of the individual generator ratings of the generation
units at this Facility as specified in Appendix B of this
agreement.
RSH Actual hours the Facility s Net Energy deliveries were either
reduced or suspended under paragraph 14.1 or 14.3.
Actual total hours in the current month
Resulting formula being:
Adjusted
Net Energy = NEA
Amount
SGU NEA
TGU
) X (
) )
This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for
only the specific month in which Idaho Power was excused from accepting the Seller s Net
Energy or the Seller declared a Suspension of Energy.
Unless excused by an event of Force Majeure, Seller s failure to deliver Net Energy in any
Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Year Net
Energy Amounts as specified in paragraph 6.2 shall constitute an event of default.
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7.4
ARTICLE Vll: PURCHASE PRICE AND METHOD OF PAYMENT
Net Energy Purchase Price - For all Net Energy, Idaho Power will pay the non-Ievelized energy
price in accordance with Commission Order 29646 with seasonalization factors applied:
Year
2005
2006
2007
2008
2009
2010
Season 1 - (73.50 %)
Mills/kWh
37.
37.
38.
39.
40.
41 .46
Season 3 - (100.00 %)
Mills/k Wh
50.
51.
52.
53.
55.
56.41
Season 2 - (120.00 %)
Mills/kWh
60.
61.
63.
64.
66.
67.
Surplus Energy Price - For all Surplus Energy, Idaho Power shall pay to the Seller the current
month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.
whichever is lower.
Inadvertent Energy
Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which
the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10 000 kW
multiplied by the hours in the specific month in which the energy was delivered. (For
example January contains 744 hours. 744 times 10 000 kW = 7,440 000 kWh, Energy
delivered in January in excess of 7,440, 000 kWh in this example would be Inadvertent
Energy. )
Although Seller has designed and operates the Facility to generate no more than 10
average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power
will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but
will not purchase or pay for Inadvertent Energy
Payment Due Date - Energy payments to the Seller will be disbursed within 30 days of the date
which Idaho Power receives and accepts the documentation of the monthly Net Energy and
Inadvertent Energy actually produced by the Seller s Facility and delivered to Idaho Power as
specified in Appendix A.
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Continuing Jurisdiction of the Commission This Agreement is a special contract and, as such
the rates, terms and conditions contained in this Agreement will be construed in accordance with
Idaho Power Company v. Idaho Public Utilities Commission and Afton Energy. Inc , 107 Idaho
781 693 P.2d 427 (1984); Idaho Power Company v. Idaho Public Utilities Commission, 107
Idaho 1122 695 P.2d 1 261 (1985); Afton Energy. Inc. v. Idaho Power Company, 111 Idaho 925,
729 P.2d 400 (1986); Section 210 of the Public Utilities Regulatory Policies Act of 1978 and 18
CFR ~292.303-308.
ARTICLE Vill: ENVIRONMENTAL ATTRffiUTES
Idaho Power waives any claim to ownership of Environmental Attributes.Environmental
Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy
Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the
production of energy from the Seller s Facility.
ARTICLE IX: FACILITY AND INTERCONNECTION
Design of Facility - This Facility is interconnected to Idaho Power and is selling energy to Idaho
Power as a Qualifying Facility in accordance with a Schedule 86, Uniform Agreement for the sale
of non-firm energy to Idaho Power, dated May 1 , 2001 and amended on May 28, 2004. Seller has
designed, constructed, installed and will own, operate and maintain the Facility and any Seller-
owned Interconnection Facilities so as to allow safe and reliable generation and delivery of
electric energy to Idaho Power for the full term of the Agreement.
Interconnection Facilities - This Facility is interconnected to Idaho Power and is selling energy to
Idaho Power as a Qualifying Facility in accordance with a Schedule 86, Uniform Agreement for
the sale of non-firm energy to Idaho Power, dated May 1 , 2001 and amended on May 28, 2004.
Idaho Power has reviewed the existing Interconnection Facilities and has identified specific items
that will require modification, upgrades or additions to the existing equipment. These items are
documented in Appendix D of this agreement. The Seller will be responsible to complete the
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10.
11.1
modifications, upgrades or additions as specified in Appendix D. All costs of all items identified
within Appendix D and payment to Idaho Power will be in accordance with Schedule 72.
ARTICLE X: DISCONNECTION EQUIPMENT
This Facility is interconnected to Idaho Power and is selling energy to Idaho Power as a
Qualifying Facility in accordance with a Schedule 86, Uniform Agreement for the sale of non-
firm energy to Idaho Power, dated May 1 2001 and amended on May 28, 2004. Idaho Power has
reviewed the existing Disconnection Equipment and has identified specific items that will require
modification, upgrades or additions to the existing equipment. These items are documented in
Appendix D of this agreement. The Seller will be responsible to complete the modifications
upgrades or additions as specified in Appendix D. All costs of all items identified within
Appendix D and payment to Idaho Power will be in accordance with Schedule 72.
ARTICLE XI: METERING AND TELEMETRY
Metering - This Facility is interconnected to Idaho Power and is selling energy to Idaho Power as
a Qualifying Facility in accordance with a Schedule 86, Uniform Agreement for the sale of non-
firm energy to Idaho Power, dated May 1 2001 and amended on May 28, 2004. Idaho Power
has reviewed the Metering and Telemetry and has identified specific items that will require
modification, upgrades or additions to the existing equipment. These items are documented in
Appendix D of this agreement. The Seller will be responsible to complete the modifications,
upgrades or additions as specified in Appendix D. All costs of all items identified within
Appendix D and payment to Idaho Power will be in accordance with Schedule 72. All meters
used to determine the billing hereunder shall be sealed and the seals shall be broken only by
Idaho Power when the meters are to be inspected, tested or adjusted.
11.Meter Inspection - Idaho Power shall inspect and test all meters upon their Installation
and at least once every four (4) years thereafter. If requested by Seller, Idaho Power shall
make a special inspection or test of a meter and Seller shall pay the reasonable costs of
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12.
12.
13.
such special inspection. Both Parties shall be notified of the time when any inspection or
test shall take place, and each Party may have representatives present at the test
inspection. If a meter is found to be inaccurate or defective, it shall be adjusted, repaired
or replaced, at Idaho Power s expense in order to provide accurate metering. If a meter
fails to register, or if the measurement made by a meter during a test varies by more than
two percent (2%) from the measurement made by the standard meter used in the test
adjustment (either upward or downward) to the payments Seller has received shall be
made to correct those payments affected by the inaccurate meter for the actual period
during which inaccurate measurements were made.If the actual period cannot be
determined, corrections to the payments will be based on the shorter of (1) a period equal
to one-half the time from the date of the last previous test of the meter to the date of the
test which established the inaccuracy of the meter; or (2) six (6) months.
ARTICLE XU - RECORDS
Maintenance of Records - Seller shall maintain at the Facility or such other location mutually
acceptable to the Parties adequate total generation, Net Energy, Station Use, maximum generation
(kW) and Inadvertent Energy records in a form and content recommended by Idaho Power.
Inspecti~n - Either Party, after reasonable notice to the other Party, shall have the right, during
normal business hours, to inspect and audit any or all generation, Net Energy, Station Use
maximum generation (kW) and Inadvertent Energy records pertaining to the Seller s Facility.
ARTICLE Xill - PROTECTION
This Facility is interconnected to Idaho Power and is selling energy to Idaho Power as a
Qualifying Facility in accordance with a Schedule 86, Uniform Agreement for the sale of non-
firm energy to Idaho Power, dated May 1 2001 and amended on May 28, 2004. Idaho Power has
reviewed the existing Protection equipment and has identified specific items that will require
modification, upgrades or additions to the existing equipment. These items are documented in
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14.
14.
Appendix D of this agreement. The Seller will be responsible to complete the modifications
upgrades or additions as specified in Appendix D. All costs of all items identified within
Appendix D and payment to Idaho Power will be in accordance with Schedule 72. Seller shall
provide and maintain adequate protective equipment sufficient to prevent damage to the Facility
and Seller-furnished Interconnection Facilities. In some cases, some of Seller s protective relays
will provide back-up protection for Idaho Power s facilities. In that event, Idaho Power will test
such relays annually and Seller will pay the actual cost of such annual testing.
ARTICLE XIV - OPERATIONS
Communications Idaho Power and the Seller shall maintain appropriate operating
communications through Idaho Power s Designated Dispatch Facility in accordance with
Appendix A of this Agreement.
Energy Acceptance
14.Idaho Power shall be excused from accepting and paying for Net Energy or accepting
Inadvertent Energy produced by the Facility and delivered by the Seller to the Point
Delivery, if it is prevented from doing so by an event of Force Majeure, or if Idaho Power
determines that curtailment, interruption or reduction of Net Energy or Inadvertent
Energy deliveries is necessary because of line construction or maintenance requirements
emergencies, electrical system operating conditions on its system or as otherwise required
by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure
Idaho Power requires such a curtailment, interruption or reduction of Net Energy
deliveries for a period that exceeds twenty (20) days, beginning with the twenty-first day
of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net
Energy at a rate equivalent to the pro rata daily average of the amounts specified for the
applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption
curtailment or reduction is terminated.
14.2.2 If, in the reasonable opinion of Idaho Power, Seller s operation of the Facility or
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14.
Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power
equipment, personnel or service to its customers, Idaho Power may physically interrupt
the flow of energy from the Facility as specified within Schedule 72 or take such other
reasonable steps as Idaho Power deems appropriate.
14.Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy
from the Facility to the Point of Delivery in an amount that exceeds the Maximum
Capacity Amount. Seller s failure to limit deliveries to the Maximum Capacity Amount
will be a Material Breach of this Agreement.
Seller Declared Suspension of Energy Deliveries
14.3.1 If the Seller s Facility experiences a forced outage due to equipment failure which is not
caused by an event of Force Majeure or by neglect, disrepair or lack of adequate
preventative maintenance of the Seller s Facility, Seller may, after giving notice as
provided in paragraph 14.2 below, temporarily suspend all deliveries of Net Energy to
Idaho Power from the Facility or from individual generation unites) within the Facility
impacted by the forced outage for a period of not less than 48 hours to correct the forced
outage condition ("Declared Suspension of Energy Deliveries
).
The Seller s Declared
Suspension of Energy Deliveries will begi~ at the start of the next full hour following the
Seller s telephone notification as specified in paragraph 14.3.2 and will continue for the
time as specified (not less than 48 hours) in the written notification provided by the
Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net
Energy Amount will be adjusted as specified in paragraph 6.2.4.
14.2 If the Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in
paragraph 14., the Seller will notify the Designated Dispatch Facility by telephone.
The beginning hour of the Declared Suspension of Energy Deliveries will be at the
earliest the next full hour after making telephone contact with Idaho Power. The Seller
will, within 24 hours after the telephone contact, provide Idaho Power a written notice in
accordance with Article XXVill that will contain the beginning hour and duration of the
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14.
14.
14.
14.
Declared Suspension of Energy Deliveries and a description of the conditions that caused
, the Seller to initiate a Declared Suspension of Energy Deliveries. Idaho Power will
review the documentation provided by the Seller to determine Idaho Power s acceptance
of the described forced outage as qualifying for a Declared Suspension of Energy
Deliveries as specified in paragraph 14.1. Idaho Power s acceptance of the Seller
forced outage as an acceptable forced outage will be based upon the clear documentation
provided by the Seller that the forced outage is not due do an event of Force Majeure or
by neglect, disrepair or lack of adequate preventative maintenance of the Seller s Facility.
Voltage Levels - Seller, in accordance with Prudent Electrical Practices shall minimize voltage
fluctuations and maintain voltage levels acceptable to Idaho Power.Idaho Power may, in
accordance with Prudent Electrical Practices, upon one hundred eighty (180) days' notice to the
Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of
Delivery, in which case Seller shall modify, at Idaho Power s expense, Seller s equipment as
necessary to accommodate the modified nominal operating voltage level.
Generator Ramping - Idaho Power, in accordance with Prudent Electrical Practices, shall have the
right to limit the rate that generation is changed at startup, during normal operation or following
reconnection to Idaho Power s electrical system. Generation ramping may be required to permit
Idaho Power s voltage regulation equipment time to respond to changes in power flow.
Scheduled Maintenance - On or before January 31 of each calendar year, Seller shall submit a
written proposed maintenance schedule of significant Facility maintenance for that calendar year
and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule.
The Parties determination as to the acceptability of the Seller s timetable for scheduled
maintenance will take into consideration Prudent Electrical Practices, Idaho Power system
requirements and the Seller s preferred' schedule. Neither Party shall unreasonably withhold
acceptance of the proposed maintenance schedule.
Maintenance Coordination - The Seller and Idaho Power shall, to the extent practical, coordinate
their respective line and Facility maintenance schedules such that they occur simultaneously.
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14.
15.
15.
Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller
prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller s Facility.
Seller understands that in the case of emergency circumstances, real time operations of the
electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the
Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho
Power.
ARTICLE XV: INDEMNIFICATION AND INSURANCE
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.
Insurance - During the term of this Agreement, Seller shall secure and continuously carry the
following insurance coverage:
15.Comprehensive General Liability Insurance for both bodily injury and property damage
with limits equal to $1 000 000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for
similar property.
15.2 The above insurance coverage shall be placed with an insurance company with an A.
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
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15.3
15.4
16.
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 Notify Idaho Power of Loss of Coverage - If the insurance coverage required by
paragraph 15.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing.
The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is
taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or
replace the coverage will constitute a Material Breach of this Agreement.
ARTICLE XVI. FORCE MAJEURE
As used in this Agreement
, "
Force Majeure" or "an event of Force Majeure" means any cause
beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence
such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of
God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances
earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after
the Operation Date, which, by the exercise of reasonable foresight such party could not
reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to
overcome. If either Party is rendered wholly or in part unable to perform its obligations under
this Agreement because of an event of Force Majeure, both Parties shall be excused from
whatever performance is affected by the event of Force Majeure, provided that:
(1)The non-performing Party shall, as soon as is reasonably possible after the
occurrence of the Force Majeure, give the other Party written notice describing
the particulars of the occurrence.
(2)The suspension of performance shall be of no greater scope and of no longer
duration than is required by the event of Force Majeure.
(3)No obligations of either Party which arose before the occurrence causing the
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2/10/2005
17.
17.
17.
suspenSIOn of performance and which could and should have been fully
performed before such occurrence shall be excused as a result of such
occurrence.
ARTICLE XVll: LAND RIGHTS
Seller to Provide Access - Seller hereby grants to Idaho Power for the term of this Agreement all
necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho
Power s Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection
Equipment and other Special Facilities necessary or useful to this Agreement, including adequate
and continuing access rights on property of Seller. Seller warrants that it has procured sufficient
easements and rights-of-way from third parties so as to provide Idaho Power with the access
described above. All documents granting such easements or rights-of-way shall be subject to
Idaho Power s approval and in recordable form.
Use of Public Rights-of-Way - The Parties agree that it is necessary to avoid the adverse
environmental and operating impacts that would occur as a result of duplicate electric lines being
constructed in close proximity. Therefore, subject to Idaho Power s compliance with paragraph
17.4, Seller agrees that should Seller seek and receive from any local, state or federal
governmental body the right to erect, construct and maintain Seller-furnished Interconnection
Facilities upon, along and over any and all public roads, streets and highways, then the use by
Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such
public right-of-way for construction and/or maintenance of electric distribution and transmission
facilities and Idaho Power may claim use of such public right-of-way for such purposes at any
time. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate
Seller for exercising its rights under this paragraph 17.
Joint Use of Facilities - Subject to Idaho Power s compliance with paragraph 17.4, Idaho Power
may use and attach its distribution and/or transmission facilities to Seller s Interconnection
Facilities may reconstruct Seller s Interconnection Facilities to accommodate Idaho Power
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2/1 012005
17.4
18.
19.
usage or Idaho Power may construct its own distribution or transmission facilities along, over and
above any public right-of-way acquired from Seller pursuant to paragraph 17., attaching Seller
Interconnection Facilities to such newly constructed facilities. Except as required by paragraph
17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this
paragraph 17.
Conditions of Use - It is the intention of the Parties that the Seller be left in substantially the same
condition, both financially and electrically, as Seller existed prior to Idaho Power s exercising its
rights under this Article XVll. Therefore, the Parties agree that the exercise by Idaho Power of
any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable
laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning
and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the
method of apportioning these costs, the dispute will be submitted to the Commission for
resolution and the decision of the Commission will be binding on the Parties, and (3) shall
provide Seller with an interconnection to Idaho Power s system of equal capacity and durability
as existed prior to Idaho Power exercising its rights under this Article XVll.
ARTICLE XVill: LIABILITY; DEDICATION
Nothing in this Agreement shall be construed to create any duty to, any standard of care with
reference to, or any liability to any person not a Party to this Agreement. No undertaking by one
Party to the other under any provision of this Agreement shall constitute the dedication of that
Party s system or any portion thereof to the other Party or to the public or affect the status of
Idaho Power as an independent public utility corporation or Seller as an independent individual or
entity.
ARTICLE XIX: SEVERAL OBLIGATIONS
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
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2/10/2005
20.
21.1
21.2
22.
22.
or impose a trust or partnership duty, obligation or liability on or with regard to either Party. Each
Party shall be individually and severally liable for its own obligations under this Agreement.
ARTICLE XX: WAIVER
Any waiver at any time by either Party of its rights with respect to a default under this Agreement
or with respect to any other matters arising in connection with this Agreement shall not be
deemed a waiver with respect to any subsequent default or other matter.
ARTICLE XXI: CHOICE OF LAWS 'AND VENUE
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 XXll: DISPUTES AND DEFAULT
Disputes - All disputes related to or arising under this Agreement, including, but not limited to
the interpretation of the terms and conditions of this Agreement, will be submitted to the
Commission for resolution.
Notice of Default -
22.Defaults.If either Party fails to perform any of the terms or conditions of this
Agreement (an "event of default"), the nondefaulting Party shall cause notice in
writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably
demonstrates to the other Party that the default can be cured within a commercially
reasonable time but not within such sixty (60) day period and then fails to diligently
pursue such cure, then, the nondefaulting Party may, at its option, terminate this
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2/1 0/2005
22.3
22.
Agreement and/or pursue its legal or equitable remedies.
Material Breaches - The notice and cure provisions in paragraph 22.1 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:
22.
22.3 .
22.3.3 '
Insurance - Evidence of compliance with the provisions of paragraph 15.2. If Seller
fails to comply, such failure will be a Material Breach and may only be cured by
Seller supplying evidence that the required insurance coverage has been replaced or
reinstated;
Engineer s Certifications - Every three (3) years after the Operation Date, Seller will
supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0
& 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; and
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
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.
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23.
24.
25.
26.
ARTICLE XXill: GOVERNMENTAL AUTHORIZATION
This Agreement is subject to the jurisdiction of those governmental agencies having control over
either Party of this Agreement.
ARTICLE XXIV: COMMISSION ORDER
This Agreement shall become finally effective upon the Commission s approval of all terms and
provisions hereof without change or condition and declaration that all payments to be made to
Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes.
ARTICLE XXV: SUCCESSORS AND ASSIGNS
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
obligations and interests under this Agreement. This article shall not prevent a financing entity
with recorded or secured rights from exercising all rights and remedies available to it under law
or contract. Idaho Power shall have the right to be notified by the financing entity that it is
exercising such rights or remedies.
ARTICLE XXVI: MODIFICATION
No modification to this Agreement shall be valid unless it is in writing and signed by both Parties
and subsequently approved by the Commission.
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27.
28.
29.
30.
ARTICLE XXVll: TAXES
Each Party shall pay before delinquency all taxes and other governmental charges which, if failed
to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities.
ARTICLE XXVill: 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:Lewandowski Farms
Attn: Robert Lewandowski
2136 S. Simco Road
Boise, ID 83716
To Idaho Power:Vice President, Power Supply
Idaho Power Company
POBox 70
Boise, Idaho 83707
ARTICLE XXIX: ADDITIONAL TERMS AND CONDITIONS
This Agreement includes the following appendices, which are attached hereto and included by
reference:
Appendix A
Appendix B
Appendix C
Appendix D
Generation Scheduling and Reporting
Facility and Point of Delivery
Engineer s Certifications
Modifications, Upgrades and Additions
ARTICLE XXX: 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 omitted.
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31.1
32.
Dated
ARTICLE XXXI: COUNTERPARTS
This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.
ARTICLE XXXll: 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
Agreed, Understood and Accepted-
Lewandowski Farms
N. Vern Porter - Mgr Power Supply Operations
FE: 81tt! /Ill
y /
tJ J 2m
Dated
Idaho Power
- 25-
, J-c:...-"
Robert Lewandowski - Owner
/6 l (~l?t6
Seller
2/10/2005
APPENDIX A
MONTHL Y POWER PRODUCTION AND SWITCHING REPORT
At the end of each month the following required documentation will be submitted to:
Idaho Power Company
Attn: Cogeneration and Small Power Production
POBox 70
Boise, Idaho 83707
The Meter readings required on this report will be the reading on the Idaho Power Meter
Equipment measuring the Facility s total energy production, Station Usage, Inadvertent Energy delivered
to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any
other required energy measurements to adequately administer this Agreement.
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2/10/2005
Idaho Power Company
Cogeneration and Small Power Production
MONTHLY POWER PRODUCTION AND SWITCHING REPORT
Project Name
Month Year
Project Number:
Address
City
Meter Number:
End of Month kWh Meter Reading:
Beginning of Month kWh Meter:
Difference:
Times Meter Constant:
kWh for the Month:
Metered Demand:
Breaker Opening Record
Date Time Meter
Breaker Openin2 Reason Codes
Lack of Adequate Prime Mover
Forced Outage of Facility
Disturbance of IPCo System
Scheduled Maintenance
Testing of Protection Systems
Cause Unknown
Other (Explain)
State Zip
Facility
Output
Station
Usa2e
Phone Number:
Station
Usa2e
Metered
Maximum Generation
Net Generation
Breaker Closing Record
Date Time Meter
I hereby certify that the above meter readings are
true and correct as of Midnight on the last day of the
above month and that the switching record is accurate
and complete as required by the Firm Energy Sales
Agreement to which I am a Party.
Signature
- 27-
Reason
Date
2/1012005
ROUTINE REPORTING
Idaho Power Contact Information
Daily Energy Production Reporting
Call daily by 10 a.m., 800-356-4328 or 800-635-1093 and leave the following
information:
Project Identification - Project Name and Project Number
Current Meter Reading
Estimated Generation for the current day
Estimated Generation for the next day
Planned and Unplanned Project outages
Call 800-345-1319 and leave the following information:
Project Identification - Project Name and Project Number
Approximate time outage occurred
Estimated day and time of project coming back online
Seller s Contact Information
24-Hour Project Operational Contact
Name:Robert Lewandowski
2136 S Simco Road
Boise, ID 83716
208- 343-6262
208-861-6990
Telephone Number:
Cell Phone:
Project On-site Contact information
Telephone Number:208- 343-6262
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2/10/2005
APPEND IX B
FACILITY AND POINT OF DELIVERY
PROJECT NO. 21615078
LEWANDOWSKI FARMS
DESCRIPTION OF FACILITY
The Seller s Facility is described as three (3) Micon, wind turbine driven induction generators
with each generator rated at 108 kW, 480 volt, three phase, 60 hertz.
LOCATION OF FACILITY
The Facility is located 1 mile south of interstate 84 on Simco Road. In the NW 1/4 of Section 23
Township 1 South, Range 4 East, Boise Meridian, Elmore County, Idaho.
MAXIMUM CAPACITY AMOUNT: This value will be 400 kW, the maximum energy that
potentially could be delivered by the Seller s Facility to the Idaho Power electrical system at any
moment in time. This value is consistent with the Seller s Generation Interconnection request.
POINT OF DELIVERY
The Point of Delivery of energy from the Seller to Idaho Power will be the Sellers weather head
located on the Sellers side of the Idaho Power provided meter.
LOSSES
If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the
Seller to the Idaho Power electrical system, no Losses will be calculated for this Facility. If the
Idaho Power Metering is unable to measure the exact energy deliveries by the Seller to the Idaho
Power electrical system, a Losses calculation will be established to measure the energy losses
(kWh) between the Seller s Facility and the Idaho Power electrical system. This loss calculation
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2/10/2005
will be initially set at 2% of the kWh energy production recorded on the Facility generation
metering equipment. At such time as Seller provides Idaho Power with the electrical equipment
specifications (transformer loss specifications, conductor sizes, etc) of all of the electrical
equipment between the Facility and the Idaho Power electrical system, Idaho Power will
configure a revised loss calculation formula to be agreed to by both parties and used to calculate
the kWh Losses for the remaining term of the Agreement. If at anytime during the term of this
Agreement, Idaho Power determines that the loss calculation does not correctly reflect the actual
kWh losses attributed to the electrical equipment between the Facility and the Idaho Power
electrical system, Idaho Power may adjust the calculation and retroactively adjust the previous 12
months kWh loss calculations.
METERING AND TELEMETRY
Idaho Power will provide metering and the associated metering equipment to accurately measure
the energy (kWh) delivered to Idaho Power. Seller will provide and install all conduit, junction
boxes and the meter enclosure. Idaho Power provided Meter Equipment will be owned and
maintained by Idaho Power, with total cost of purchase, installation, operation, and maintenance,
including administrative cost to be reimbursed to Idaho Power by the Seller. In the event, it is
determined by Idaho Power that automated telemetry is required at this location. Idaho Power
will purchase and install this equipment at the Seller s expense. The Seller will provide the
necessary communication lines for this automated telemeter at the Seller s expense.
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2/10/2005
SPECIAL FACILITIES
Idaho Power will provide and maintain:
12.47-Kv distribution line to this project including poles, three-phase conductor, and
associated pole top assemblies.
Three (3) 167-kva pole-mounted transformers and associated fused cutouts, circuiting,
and grounding.
Secondary circuit to the Seller provided service pole.
Three (3) 15-kV A pole-mounted transformers and associated fused cutouts, circuiting,
and grounding connected to a protective relaying and control panel.
Protective relaying and control panel.
Lewandowski Farms will reimburse Idaho Power for all equipment and installation
provided by Idaho Power.
Lewandowski Farms will provide and maintain:
Service Pole for connection to Idaho Power at the project site.
A lockable manual disconnecting device physically located at or near (within 10 feet) the
metering location, and electrically located on the generator side of the metering facilities.
The disconnecting device shall be clearly marked, "Generator Disconnect Switch", with
permanent 3/8 inch letters or larger and shall be readily accessible for operation and
locking by Idaho Power personnel. The disconnecting device must be lockable in the
open position with a standard Idaho Power padlock. The disconnecting device is to
enable Idaho Power to disconnect the generation from the Idaho Power system for safety
while working on the lines, or to disconnect generation for any other reason deemed
necessary.
A control panel, one for each generator, consisting of a motor circuit protector/circuit
breaker, NEMA rated contactor, overload relays, and associated controls that
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2/10/2005
incorporates a dry contact from Idaho Power s protective relaying panel into the control
scheme to protect Idaho Power s facilities and customers. Each control panel contactor
provides a dry contact to Idaho Power s protective relaying panel for verification of
contactor position.
All circuits and raceways between the control panels and Idaho Power s protective
relaying panel.
All specifications, designs and test results of equipment provided and/or installed by
Lewandowski Farms to protect Idaho Power customers and facilities must be provided and
accepted by Idaho Power prior to interconnection of this generation facility.
REACTIVE POWER
The Seller shall operate induction generators as listed in item B-1 of this Appendix with Reactive
Power being provided by Idaho Power.
DISCONNECTION EQUIPMENT
Disconnection Equipment is required to insure that the Seller s Facility will be disconnected from
Idaho Power s system in the event of (1) the Sellers delivery of energy exceeds the Maximum
Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy
deliveries to Idaho Power or (3) a disturbance on either Idaho Power s system or the Seller
Facility. This equipment is for the protection of Idaho Power s equipment only. Idaho Power will
supply Disconnection Equipment which consists of a relay and control enclosure containing
relays, batteries, arresters and other necessary hardware, an enunciator panel to be mounted in the
Seller s switchgear line up and an enclosure containing a size five contactor. Seller will provide
all conduit, junction boxes and interconnecting wire necessary for the operation of the contactor
relays & controls and 600 V fused and nonfused disconnects on either side of the contactor
enclosure. Seller will install all Seller provided material as well as the Idaho Power contactor
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2/10/2005
enclosure, the relay/control enclosure and the enunciator panel. Idaho Power will supply details
for the Disconnection Equipment and will test the equipment prior to operation of the Facility.
Seller will provide drawings of their disconnection wiring for engineering approval before
installation. The total cost of Disconnection Equipment and testing will be reimbursed to Idaho
Power by the Seller. Idaho Power owned equipment will be maintained by Idaho Power, with
total cost of purchase, installation, operation, and maintenance, including administrative cost to
be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with
Schedule 72 and the total Disconnection Equipment cost will be included in the calculation of the
Monthly Operation and Maintenance Charges specified in Schedule 72.
COSTS
Original Equipment
This facility originally came on line with a single wind turbine on October 1, 2002. At that time
interconnection equipment, special facilities and metering equipment was provided and installed
by Idaho Power Company. Lewandowski Farms reimbursed Idaho Power for the actual costs of
this equipment and associated installation in the amount of $10 576.52.
Revision of the Original Equipment
At the time the Additional Equipment was added to this Facility as specified below.
Some components of the Original Equipment was removed and replaced with the
Additional Equipment. The value of this Original Equipment removed was $2 580.96.
Therefore as of July 1 2004 the cost of the Original Equipment was revised to $7 995
Additional Equipment
At Lewandowski Farms request, in the sprIng of 2004 Idaho Power redesigned the
interconnection, special facilities and metering equipment at this facility to accommodate
two (2) additional 108 kW wind generators for a total of 3 (three) 108 KW wind
generators at this site.
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2/10/2005
The reconciled cost of this additional equipment was $17 391.73, which was reimbursed
by Lewandowski Farms to Idaho Power.
In addition to the installation and construction charges above, during the term of this Agreement
Seller will pay Idaho Power the operation and maintenance charge specified in Schedule 72
INTERCONNECTIONS TO NON-UTILITY GENERATION or its successor schedule(s).
The monthly Operations and Maintenance charges in accordance with Schedule 72 will be the
sum of the following:
Original Equipment
October 1. 2002 thru July 1. 2004
Original Equipment cost of $10 576.52 multiplied by the appropriate percentage from
Schedule 72 for Equipment installed as of October 1, 2002.
July 1. 2004 thru the full term of this Agreement or until such time as this Original
Equipment is modified.
Original Equipment cost of $10 576.52 less $2 580.96 equals $7,995.56 multiplied by the
appropriate percentage from Schedule 72 for Equipment installed as of October 1 , 2002.
Additional Equipment
Additional Equipment cost of $17,391.73 multiplied by the appropriate percentage from
Schedule 72 for Equipment installed as of July 1 2004.
SALVAGE
No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power
will prepare and forward to Seller an estimate of the remaining value of those Idaho Power
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furnished Interconnection Facilities as required under Schedule 72, the Generation
Interconnection Process and/or described in this Agreement, less the cost of removal and transfer
to Idaho Power s nearest warehouse, if the Interconnection Facilities will be removed. If Seller
elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho
Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net
salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller
within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice
amount against any present or future payments due Idaho Power.
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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 commonly known
the
Project, is located at
That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy
to Idaho Power for a twenty (20) 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 factor for the
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remaInIng years of the Agreement.
That Engineer recognizes that Idaho Power, in accordance with paragraph 4.1 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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APPENDIX D
MODIFICATIONS, UPGRADES AND ADDITIONS
PROJECT NO. 21615076
LEWANDOWSKI FARMS
This Facility is interconnected to Idaho Power and is selling energy to Idaho Power as a Qualifying
Facility in accordance with a Schedule 86, Uniform Agreement for the sale of non-firm energy to Idaho
Power, dated May 1 2001 and amended on May 28, 2004. The Interconnection Facilities, Disconnection
Equipment, Metering Equipment, Telemetry Equipment and Protection Equipment were designed
installed, operated and maintained in accordance with this previous agreement.
Idaho Power has reviewed the existing Interconnection Facilities, Disconnection Equipment, Metering
Equipment, Telemetry Equipment and Protection Equipment and listed below are specific modifications,
upgrades and lor additions required for these facility to continue to deliver energy to Idaho Power at the
Point of Delivery under this new Energy Sales Agreement. The Seller will be responsible to complete the
modifications, upgrades or additions as specified in this Appendix D. All costs of all items identified
within this Appendix D and payment to Idaho Power will be in accordance with Schedule 72.
INTERCONNECTION FACILITIES
Idaho Power has reviewed the existing Interconnection Facilities at the Sellers facility and finds
that no upgrades, modifications or additions are required by the Seller as of the date of this
agreement. If in the future, Prudent Electrical Practices, regulations, electrical codes or safety
codes require upgrades, modifications or additions to the existing equipment, Idaho Power will
notify the Seller of these requirements and the Seller will be responsible for all costs of all items
identified and payment to Idaho Power will be in accordance with Schedule 72.
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DISCONNECTION EQUIPMENT
Idaho Power has reviewed the existing Disconnection Equipment at the Sellers facility and finds
that no upgrades, modifications or additions are required by the Seller as of the date of this
agreement. If in the future, Prudent Electrical Practices, regulations, electrical codes or safety
codes require upgrades, modifications or additions to the existing equipment, Idaho Power will
notify the Seller of these requirements and the Seller will be responsible for all costs of all items
identified and payment to Idaho Power will be in accordance with Schedule 72.
METERING EQUIPMENT
Idaho Power has reviewed the existing Metering Equipment at the Sellers facility and finds that
no upgrades, modifications or additions are required by the Seller as of the date of this agreement.
If in the future, Prudent Electrical Practices, regulations, electrical codes or safety codes require
upgrades, modifications or additions to the existing equipment, Idaho Power will notify the Seller
of these requirements and the Seller will be responsible for all costs of all items identified and
payment to Idaho Power will be in accordance with Schedule 72.
TELEMETRY EQUIPMENT
Idaho Power has reviewed the existing Telemetry Equipment at the Sellers facility and finds that
no upgrades, modifications or additions are required by the Seller as of the date of this agreement.
If in the future, Prudent Electrical Practices, regulations, electrical codes or safety codes require
upgrades, modifications or additions to the existing equipment, Idaho Power will notify the Seller
of these requirements and the Seller will be responsible for all costs of all items identified and
payment to Idaho Power will be in accordance with Schedule 72.
PROTECTION EQUIPMENT
Idaho Power has reviewed the existing Protection Equipment at the Sellers facility and finds that
no upgrades, modifications or additions are required by the Seller as of the date of this agreement.
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If in the future, Prudent Electrical Practices, regulations, electrical codes or safety codes require
upgrades, modifications or additions to the existing equipment, Idaho Power will notify the Seller
of these requirements and the Seller will be responsible for all costs of all items identified and
payment to Idaho Power will be in accordance with Schedule 72.
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Idaho Power routing and review
E-mailed to:Comments receiving back Comments Approved
incorporated
1/27/2005
Developer
1/27/2005 2/2/2005 2/3/05 - Randy 2/2/2005
Bart Kline Bart, approved agreement made suggested
and agrees we can remove changes
the legal opinion section as
requested by the developer as
this is an existing agreement
getting a new contract
(section 4.1.2)
1/27/2005 2/3/05 - no material items 2/3/05 - Randy 2/3/2005
Karl Bokenkamp made suggested
changes
1/27/2005 2/2/2005 - Monica deferred 2/2/2005
Monica Moen her to review to Bart'
reVIew
1/27/2005
Lisa Loomis
1/27/2005 Discussed in a meeting with 2/3/2005 2/3/2005
Marsha Leese Marsha and Ron Scheberg,
both agreed agreements ok as
written 2/3/2005
Completed 2/4/2005 by Eric 4/2005
Maximum Zuber, ok to increase to 400
Capacity Study
V ern Porter
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