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HomeMy WebLinkAbout20060901Application.pdfIDAHO POWER - .~~- ~o~~- - - An IDACORP Company IDAHO POWER COMPANY O. BOX 70 BOISE, IDAHO 83707 Lisa D. Nordstrom Attorney September 1 , 2006 r--,) ::! ~ CI'" ::"t 0')0 CJ :;7'"~ c:; :Jt :... :::: WO .r- (j) :;xJ (")..:::: Jean D. Jewell , Secretary Idaho Public Utilities Commission 472 West Washington Street P. O. Box 83720 Boise , Idaho 83720-0074 Re:Case No. IPC-06- Application in the Matter of Idaho Power Company for Authority to Institute a Uniform Schedule 72 Interconnection Agreement and Amend Tariff Language Dear Ms. Jewell: Please find enclosed for filing an original and seven (7) copies of Idaho Power Company s Application for the above-referenced matter. I would appreciate it if you would return a stamped copy of this transmittal letter in the enclosed self-addressed, stamped envelope. Very truly yours of~ 4). 7(~Lisa D. Nordstrom LDS:sh Enclosures Telephone (208) 388-5825 Fax (208) 388-6936 E-maillnordstromfiYidahopower.com ,' ' BARTON L. KLINE , ISB # 1526 LISA D. NORDSTROM , ISB # 5733 Idaho Power Company 1221 West Idaho Street P. O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-2682 FAX Telephone: (208) 388-6936 Attorneys for Idaho Power Company RECEIVED 2006 SfP -I PM (,: 40 IDAHO PUBi ICUTILITIES CO&i"~ISSION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR AUTHORITY TO INSTITUTE A UNIFORM SCHEDULE 72 INTERCONNECTION AGREEMENT AND AMEND TARIFF LANGUAGE CASE NO. IPC-06- APPLICATION COMES NOW , Idaho Power Company ("Idaho Power" or the Company and in accordance with RP 052 and RP 201 at. seq.hereby applies to the Commission for authority to revise Schedule 72 to include a Uniform Interconnection Agreement and to make other necessary tariff language changes. In support of this Application, the Company submits the following: Introduction Interconnection" generally refers to a series of steps of increasing detail and financial commitment to plan and construct facilities necessary to integrate additional generation onto a utility s transmission/distribution system. As required APPLICATION , Page by orders of the Federal Energy Regulatory Commission ("FERC"), after an initial exchange of basic project information with the developer, Idaho Power conducts a structured series of interconnection studies to determine the necessary facilities modifications, preliminary design and construction cost estimate to integrate the generation project with the Company s transmission/distribution system. When non-utility projects (e., projects classified as "Qualified Facilities" or QFs" under the Public Utilities Regulatory Policy Act of 1978) request interconnection to Idaho Power s transmission/distribution system , Idaho Power currently addresses distribution/transmission facilities and key ownership, construction, testing, operation and maintenance issues associated with the interconnection within the power purchase agreement document and conjunction with Schedule 72 (Interconnections to Non-Utility Generation). Although agreements to power purchase and interconnect to the utility transmission/distribution system should be pursued simultaneously, evolving industry practice and FERC regulatory requirements have made addressing interconnection issues in a power purchase agreement administered by the vertically integrated utility s power supply business function problematic. II. Changes to Interconnection Process To improve its internal processes and ensure the functional separation between power supply and delivery mandated by the FERC , Idaho Power believes it should implement a separate Uniform Interconnection Agreement to complement the terms currently set out in the power purchase agreement and Schedule 72. As APPLICATION, Page 2 such , Idaho Power requests Commission approval to amend Schedule 72 to implement a Uniform Interconnection Agreement and otherwise amend Schedule 72 as follows: Uniform Interconnection Aqreement In the past, many of Idaho Power key non-utility generation interconnection provisions have been included in the power purchase agreement rather than called out separately in an interconnection agreement. Interconnection is managed by Idaho Power s Power Delivery (transmission) business unit, while power purchase agreements are within the purview of Idaho Power s Power Supply (marketing) business unit. Because the FERC now requires a functional separation between the activities of these two business units, it is not possible for the Idaho Power marketing business unit to negotiate interconnection terms and conditions as part of the power purchase agreement.Consistent with the Standards of Conduct rules adopted by the FERC in Order No. 2004 et seq.the proposed Uniform Interconnection Agreement will minimize the opportunity for differential treatment between network and non-network resources. A Uniform Interconnection Agreement is also in keeping with utility industry efforts to standardize interconnection procedures and facilitate investment needed utility infrastructure. Patterned after the FERC's standard Small Generator Interconnection Agreement approved in FERC Order No. 2006 , Idaho Power proposed Uniform Interconnection Agreement addresses the terms and conditions of interconnection and integration to Idaho Power transmission/distribution system and incorporates portions of the Company s template power purchase APPLICATION , Page 3 agreement. The proposed Uniform Interconnection Agreement is included as Attachment 1 found on page 12 of the proposed tariff. Amend Schedule 72 Idaho Power is proposing no major changes to the terms and conditions of Schedule 72 other than referencing the Uniform Interconnection Agreement and adding language explicitly adopting the Institute of Electric and Electronic Engineers: IEEE Standard 1547 ("IEEE 1547") for interconnection. The added language is identified in pages 6 and 7 of Attachment 2. The PURPA section of the Energy Policy Act of 2005 proposes five new ratemaking standards for consideration by each utility regulatory body. Specifically, 16 U.C. 92621 "Consideration and determination respecting certain ratemaking standards" proposes the following: (d)(15) Interconnection Each electric utility shall make available , upon request interconnection service to any electric customer thatthe electric utility serves. For purposes of this paragraph, the term "interconnection service" means service to an electric consumer under which an on-site generating facility on the consumer s premises shall be connected to the local distribution facilities. Interconnection services shall be offered based upon the standards developed by the I nstitute of Electrical and Electronics Engineers: IEEE Standard 1547 for Interconnecting Distributed Resources with Electric Power Systems , as they may be amended from time to time. In addition, agreements and procedures shall be established whereby the services are offered shall promote current best practices of interconnection for distributed generation, including but not limited to practices stipulated in model codes adopted by associations of state regulatory agencies. All such agreements and procedures shall be just and reasonable and not unduly discriminatory or preferential. APPLICATION , Page 4 IEEE 1547 is a voluntary standard that focuses on the technical specifications for, and testing of, the interconnection of distributed resources with an electric power system. As explained in Idaho Power s comments filed in Case No. GNR-06-, Idaho Power has adopted IEEE 1547 internally and believes non-utility generation interconnection should adhere to these industry best practices as well. III. Modified Procedure The Company believes that consideration by the Commission of the proposals contained in this Application does not require an evidentiary proceeding and , accordingly, the Company requests that this Application be processed under RP 201 allowing for consideration of issues under Modified Procedure, i.e., by written submissions rather than by an evidentiary hearing. IV. Notices Communications with reference to this Application should be sent to the following: Barton L. Kline Lisa D. Nordstrom Idaho Power Company O. Box 70 Boise , ID 83707 bkline (g) idahopower.com Inordstrom (g) idahopower.com David Sikes Idaho Power Company O. Box 70 Boise, ID 83707 dsikes (g) idahopower.com APPLICATION, Page 5 WHEREFORE , Idaho Power respectfully requests that the Commission issue its Order under Modified Procedure authorizing Idaho Power to implement the Schedule 72 Uniform Interconnection Agreement and associated tariff language changes described above. S.f- DATED at Boise , Idaho, this / ';"--- ay of September, 2006. ~~ j) ~~~ LISA D. NORDS ROM Attorney for Idaho Power Company APPLICATION , Page 6 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-O6- 1f8 IDAHO POWER COMPANY ATTACHMENT Idaho Power Company LP.C. No. 28 Tariff No. 101 First Revised Sheet No. 72- Cancels Oriqinal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION AVAilABILITY Service under this schedule is available throughout the Company s service area within the State of Idaho to Sellers owning or operating Qualifying Facilities that sign a Uniform Interconnection Agreement or that qualify for Schedule 84. APPLICABILITY Servjce under this schedule applies to the construction , operation, maintenance , Upgrade Relocation , or removal of transmission and/or distribution lines and equipment necessary to safely interconnect a Seller s Generation Facility to the Company s system. DEFINITIONS Additional Applicant is a person or entity whose request for electrical connection requires the Company to utilize existing Interconnection Facilities which are subject to a Vested Interest. Company is the Idaho Power Company. Connected load is the combined input rating of the Customer s motors and other energy consuming devices. Construction Cost is the cost, as determined by the Company, of Upgrades. Relocation or construction of Company furnished Interconnection Facilities. Disconnection Equipment is any device or combination of devices by which the Company can manually and/or automatically interrupt the flow of energy from the Seller to the Company s system including enclosures or other equipment as may be required to ensure that only the Company will have access to certain of the devices. First Enerqy Date is the date when the Seller begins delivering energy to the Company system. Generation Facility means equipment used to produce electric energy at a specific physical location which meets the requirements to be a Qualifying Facility or that qualify for Schedule 84. Interconnection Facilities are all facilities which are reasonably required by good utilitiy practices and the National Electric Safety Code to interconnect and to allow the delivery of energy from the Seller s Generation Facility to the Company s system , including, but not limited to, Special Facilities Disconnection Equipment and Metering Equipment. Interconnection Point is the point where the Seller s conductors connect to the facilities owned by the Company. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company LP.C. No. 28 Tariff No.1 01 First Revised Sheet No. 72- Cancels Oriqinal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) DEFINITIONS (Continued) Meterinq Equipment is the Company owned equipment required to measure, record or telemeter power flows between the Seller s Generation Facility and the Company s system. Protection Equipment is the circuit-interrupting device , protective relaying, and associated instrument transformers. PURPA means the Public Utility Regulatory Policies Act of 1978. Qualifvinq Facility is a cogeneration facility or a small power production facility which meets the PURPA criteria for qualification set forth in Subpart B of Part 292, Subchapter K, Chapter I , Title 18, of the Code of Federal Regulations. Relocation is a change in the location of existing Company-owned transmission and/or distribution lines , poles or equipment. Schedule 84 is the Company s service schedule which provides for sales of electric energy tothe Company by means of a net metering arrangement or its successor(s) as approved by the Commission. Seller is a non-utility generator who has contracted or will contract with the Company to interconnect a Generation Facility to the Company s system to sell electric energy to the Company including net metering sales, as provided in Schedule 84. Seller-Furnished Facilities are those portions of the Interconnection Facilities provided by the Seller. Special Facilities are additions to or alterations of transmission and/or distribution lines and transformers, including, but not limited to, Upgrades and Relocation, to safely interconnect the Seller Generation Facility to the Company s system. Transfer Cost is the cost, as determined by the Company, for acceptance by the Company of Seller-Furnished Facilities. Upqrades are those improvements to the Company s existing system which are reasonably required by good practices and the National Electric Safety Code to safely interconnect the Seller Generation Facility. Such improvements include , but are not limited to, additional or larger conductors transformers , poles , and related equipment. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company First Revised Sheet No. 72- Cancels Oriqinal Sheet No. 72-I.P.C. No. 28 Tariff No. 101 SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) DEFINITIONS (Continued) Vested Interest is the claim for refund that a Seller or Additional Applicant holds in a specific portion of Company-owned Interconnection Facilities. The Vested Interest expires 5 years from the date the Company completes construction of its portion of the Interconnection Facilities unless fully refunded earlier. Vested Interests do not apply to Schedule 84 net metering projects. COST OF INTERCONNECTION FACILITIES All Interconnection Facilities provided under this schedule will be valued at the Company Construction Cost and/or the Transfer Cost for vesting purposes as well as for operation and maintenance payment obligations. PAYMENT FOR INTERCONNECTION FACILITIES Unless specifically agreed otherwise by written agreement between the Seller and the Company, the Seller will pay all costs of interconnecting a Generation Facility to the Company system. Unless specifically agreed otherwise in a written agreement between the Seller and the Company, an initial cost estimate of Company-owned Interconnection Facilities will be provided to the Seller. Payment of the estimated cost will be required prior to the Company s ordering, installing, modifying, upgrading, or performing in any other way work associated with the Interconnection Facilities. Upon completion of the Company-owned Interconnection Facilities, the actual costs will be reconciled against the estimated cost previously paid by the Seller and the appropriate billing or refund will be processed. The Company reserves the right to collect additional costs from the Seller for any additional Company equipment, modifications, or upgrades the Company deems necessary to operate and maintain a safe, reliable electrical system as a result of the interconnection of the Seller Generation Facility to the Company s system. CONSTRUCTION AND OPERATION OF INTERCONNECTION FACILITIES All Seller-Furnished Interconnection Facilities will be constructed and maintained in a manner to be in full compliance with all good utility practices, National Electric Safety Code, and all other applicable Federal , state , and local safety and electrical codes and standards at all times. The Seller shall:1. Submit proof to the Company that all licenses , permits, inspections and approvals necessary for the construction and operation of the Seller s Generation and Interconnection Facilities under this schedule have been obtained from applicable Federal, state, or local authorities. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company First Revised Sheet No. 72- Cancels Oriqinal Sheet No. 72-LP.C. No. 28 Tariff No.1 01 SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) DISCONNECTION EQUIPMENT (Continued)3. Physically installed at a location within 10 feet of the Interconnection Point or exact, permanent instructions posted at the Interconnection Point indicating the precise location of the Disconnection Equipment's operating device.4. Of a design manually operated and lockable in the open position with a standard Company padlock. Operation of Disconnection Equipment., in the reasonable opinion of the Company, the Seller s operation or maintenance of the Generation Facility or Interconnection Facilities is unsafe or may otherwise adversely affect the Company s equipment, personnel , or service to its customers, the Company may physically disconnect the Seller s Generation Facility or Interconnection Facilities by operation of the disconnection device or by any other means the Company deems necessary to adequately disconnect the Seller s Generation and Interconnection Facilities from the Company system. At such time as the unsafe condition is remedied or other condition adversely affecting the Company is resolved to the Company s satisfaction , the interconnection will be restored. The Company will disconnect the Seller s Generation and Interconnection Facilities in the event of any planned or unplanned maintenance or repair of the Company s system connected to the Seller Generation and Interconnection Facilities. In the event of unplanned maintenance or repairs, no prior notice will be provided. In the event of planned repairs, the Company will attempt to notify the Seller of the time and duration of the planned outage. The Company will disconnect the Seller s Generation Facility and Interconnection Facilities in the event that any terms and conditions of any applicable Company tariff or contract enabling the interconnection of the Seller s Generation Facility is deemed by the Company to be in default or delinquent. All expenses of disconnection and reconnection incurred by the Company will be billed to the Seller. In the case of a net metering facility, disconnection of the service may be necessary. The disconnection may result in interruption of both energy deliveries from the Seller s Generation Facility to the Company as well as interruption of energy deliveries from the Company to the Seller. The Company will establish the settings of Protection Equipment to disconnect the Seller Generation Facility and Interconnection Facilities for the protection of the Company s system and personnel consistent with good utility practices. If the Seller attempts to modify, adjust or otherwise interfere with the protection equipment or its settings as established by the Company, such action may be grounds for the Company s refusal to continue interconnection of the Seller s Generation and Interconnection Facilities to the Company s system. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company First Revised Sheet No. 72- Cancels Oriqinal Sheet No. 72-LP.C. No. 28 Tariff No.1 01 SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) GENERAL REQUIREMENTS OF INTERCONNECTED PROJECTS1. The Company will construct, own, operate and maintain all equipment, Upgrades and Relocations on the Company s electrical side of the Interconnection Point.2. The Company will clearly mark the Metering Equipment and any other Company equipment associated with the Seller s Generation Facility and/or Interconnection Facilities designating the existence of the Seller s Generation Facility as required by good utility practices.3. The Seller will be required to submit all specific designs, equipment specifications , and test results of the Seller-Furnished Facilities to the Company for review. Upon receipt of the design and equipment specifications, the Company will review the design and equipment specifications for conformance with applicable electrical and safety codes and standards. SPECIFIC PROJECT REQUIREMENTS Generation Facilities Interconnectinq as a Schedule 84 (net meterinq) Proiect Certification prior to interconnection: Seller Generation Facilities that qualify for net metering under Schedule 84 will submit to the Company a certification from an independent qualified party licensed in the State of Idaho that the design and equipment in the Generation Facility and Seller-Furnished Facilities (1) comply with the Institute of Electrical and Electronic Engineers ("IEEE") Standard 1547 and all other standards of this schedule and applicable electric and building codes and (2) will operate to safely deliver Energy to the Interconnection Point. The Seller shall provide the credentialsand licenses of the certifying party to the Company for review and acceptance of the certification. Periodic re-certification: i. Projects larqer than 25 kW. The Seller will obtain an annual certification from an independent qualified party licensed in the State of Idaho, certifying the Generation Facility and Seller-Furnished Facilities and equipment are in compliance with IEEE Standard 1547 all current applicable electrical and safety codes, and are able to safely and reliably continue to operate. The Seller will provide the credentials and licenses of the certifying party to the Company for review and acceptance of the certification. A copy of this certification must be forwarded to the Company by May 1 st of each calendar year in which the Seller s facility is interconnected to the Company system. Within the first calendar year of operation , the Seller will be required to supply only the certifications required at the time of the initial interconnection. If the Company does not accept the annual certification within sixty days of its receipt, the Generation Facility will be disconnected from the Company s system until such time as the certification is completed and accepted by the Company. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company First Revised Sheet No. 72- Cancels Oriqinal Sheet No. 72-LP.C. No. 28 Tariff No. 101 SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) (Continued) Generation Facilities Interconnectinq as Schedule 84 (net meterinq) Project ii. Projects 25 kW and smaller.The above described certification will be provided every three years. iii. Re-certification followinq modifications.Prior to making any material modifications or additions to the Generation Facility or Interconnection Facilities Seller will provide Company with a written description of the proposed change. The Company will expeditiously review the proposal and authorize Seller to proceed subject to final inspection and certification by a qualified party as described in paragraph 1 a above. Any modifications made without notice will result in disconnection of the facility until such time as certification of the modified facility is submitted to and accepted by the Company. Generation Facilities Less Than 1 MW Nameplate Ratinq The following requirements are for Generation Facilities with nameplate ratings of less than , not including net metering facilities utilizing Schedule 84.a. The Company shall procure, install , own and maintain Metering Equipment to record energy deliveries to the Company. This metering will be separate from any other metering of the Seller s load and may be located on either side of the Interconnection Point. All acquisition , installation , maintenance, inspection and testing costs related to Meter Equipment installed to measure the Seller s energy deliveries to the Company shall be born by the Seller.b. The Seller is responsible for all costs incurred by the Company for the review evaluation and testing of Seller supplied designs and equipment regardless as to the outcome of the review or test results.c. The Seller, upon completion of installation and prior to interconnection of the Generation Facility to the Company s system , will provide the Company with certification from a professional engineer licensed in the State of Idaho stating that the Seller s Generation Facility and Interconnection Facilities are in compliance with IEEE Standard 1547 and all applicable electrical and safety codes to enable safe and reliable operation.d. The Seller will obtain and provide to the Company an annual certification and testing by a professional engineer licensed in the State of Idaho , certifying the ongoing compliance with IEEE Standard 1547 and all applicable electrical and safety codes and that the Seller-Furnished Facilities successfully meet applicable testing requirements and standards. In the event the Company does not receive and accept the annual certification within 30 days of the annual anniversary date of the agreement, the project will be disconnected from the Company s system until such time as the certification is completed and accepted by the Company. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) This Interconnection Agreement ("Agreement") is effective as of the day of, between , hereinafter called "Seller " and Idaho Power Company, hereinafter called "Company. RECITALS A. Seller will own or operate a Generation Facility that qualifies for service under Idaho Power s Commission-approved Schedule 72 and any successor schedule. B. The Generation Facility covered by this Agreement is more particularly described in Attachment 1. AGREEMENTS1. Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement.2. This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Seller s Generation Facility will interconnect with, and operate in parallel with , the Company s transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule , Schedule 72 shall prevail.3. This Agreement is not an agreement to purchase Seller s power. Purchase of Seller power and other services that Seller may require will be covered under separate agreements. Nothing in this Agreement is intended to affect any other agreement between the Company and Seller. Attached to this Agreement and included by reference are the following: Attachment Description and Costs of the Generation Facility, Interconnection Facilities, and Metering Equipment. Attachment 2 - One-line Diagram Depicting the Generation Facility, Interconnection Facilities, Metering Equipment and Upgrades. Attachment 3 - Milestones For Interconnecting the Generation Facility. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Attachment 4 - Additional Operating Requirements for the Company s Transmission System Needed to Support the Seller s Generation Facility. Attachment 5 - Reactive Power. Attachment 6 - Description of Upgrades required to integrate the Generation Facility and Best Estimate of Upgrade Costs. Effective Date. Term. Termination and Disconnection Term of Aqreement.Unless terminated earlier in accordance with the provisions of this Agreement, this Agreement shall become effective on the date specified above and remain effective as long as Seller s Generation Facility is eligible for service under Schedule 72. Termination. Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. After a Default, either Party may terminate this Agreement pursuant to Section 6. Upon termination or expiration of this Agreement, the Seller s Generation Facility will be disconnected from the Company s transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Party of its liabilities and obligations , owed or continuing at the time of the termination. The provisions of this Section shall survive termination or expiration of this Agreement. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Temporary Disconnection.Temporary disconnection shall continue only for so long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of the practices , methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period , or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice , method, or act to the exclusion of all others , but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by the power purchase agreement. Emerqency Conditions . " Emergency Condition" means a condition or situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (2) that, in the case of the Company, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to the Company transmission/distribution system, the Company s Interconnection Facilities or the equipment of the Company s customers; or (3) that, in the case of the Seller, is imminently likely (as determined in a non- discriminatory manner) to cause a material adverse effect on the reliability and security , or damage to , the Generation Facility or the Seller s Interconnection Facilities. Under Emergency Conditions, either the Company or the Seller may immediately suspend interconnection service and temporarily disconnect the Generation Facility. The Company shall notify the Seller promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller s operation of the Generation Facility. The Seller shall notify the Company promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Company s equipment or service to the Company customers. To the extent information is known , the notification shall describe the Emergency Condition , the extent of the damage or deficiency, the expected effect on the operation of both Parties facilities and operations, its anticipated duration , and the necessary corrective action. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company I.P.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Routine Maintenance, Construction, and Repair.The Company may interrupt interconnection service or curtail the output of the Seller s Generation Facilityand temporarily disconnect the Generation Facility from the Company transmission/distribution system when necessary for routine maintenance , construction and repairs on the Company s transmission/distribution system. The Company will make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt interconnection or curtail 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, the Company may not be able to provide notice to the Seller prior to interruption , curtailment or reduction of electrical energy deliveries to the Company. The Company shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 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 the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller timetable for scheduled maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and the Seller preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 3.4. Maintenance Coordination.The Seller and the Company shall , to the extent practical , coordinate their respective transmission/distribution system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facility and Seller-furnished Interconnection Facilities. In some cases some of Seller s protective relays will provide back-up protection for Idaho Power facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 . Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Forced Outaqes.During any forced outage, the Company may suspend interconnection service to effect immediate repairs on the Company transmission/distribution system. The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not given , the Company shall , upon request provide the Seller written documentation after the fact explaining the circumstances of the disconnection. Adverse Operatinq Effects.The Company shall notify the Seller as soon as practicable if, based on Good Utility Practice , operation of the Seller s Generation Facility may cause disruption or deterioration of service to other customers served from the same electric system, or if operating the Generation Facility could cause damage to the Company s transmission/distribution system or other affected systems. Supporting documentation used to reach the decision to disconnect shall be provided to the Seller upon request. If, after notice , the Seller fails to remedy the adverse operating effect within a reasonable time , the Company may disconnect the Generation Facility. The Company shall provide the Seller with reasonable notice of such disconnection , unless the provisions of Article 5.1 apply. Modification of the Generation Facility.The Seller must receive written authorization from the Company before making any change to the Generation Facility that may have a material impact on the safety or reliability of the Company transmission/distribution system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Utility Practice. If the Seller makes such modification without the Company s prior written authorization, the latter shall have the right to temporarily disconnect the Generation Facility. Reconnection.The Parties shall cooperate with each other to restore the Generation Facility, Interconnection Facilities and the Company transmission/distribution system to their normal operating state as soon as reasonably practicable following a temporary disconnection. IDAHO Issued - September 1 . 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Voltaqe Levels.Seller, in accordance with Good Utility Practices , shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Good Utility 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. 5.4 Land Riqhts. 5.4.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. 5.4.Use of Public Riqhts-of-Wav.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 5.4.4, 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 5.4.4 , Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) 5.4.Joint Use of Facilities.Subject to Idaho Power compliance with Paragraph 15.4.4 , 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 s 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 5.4., attaching Seller s Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4 Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4. 5.4.4 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 Paragraph 5.4. Therefore, the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all applicable laws , codes and Good Utility 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 Paragraph 5.4. Assiqnment, Liability. Indemnity. Force maieure, Consequential Damaqes and Default. Assiqnment.This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to object by the other Party; provided that: Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) The Seller shall have the right to contingently assign this Agreement without the consent of the Company, for collateral security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment. Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Party of its obligations, nor shall a Party s obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Seller. Where required consent to assignment will not be unreasonably withheld , conditioned or delayed. Limitation of Liability. Each Party s liability to the other Party for any loss , cost claim , injury, liability, or expense, including reasonable attorney s fees, relating to or arising from any act or omission in its performance of this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special , consequential , or punitive damages, except as authorized by this Agreement. Indemnity This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in Article 6. The Parties shall at all times indemnify, defend , and hold the other Party harmless from, any and all damages , losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand , suits recoveries, costs and expenses, court costs , attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company LP.C. No. 28 . Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) If an indemnified person is entitled to indemnification under this article as a result of a claim by a third party, and the indemnifying Party fails, after notice and reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest settle or consent to the entry of any judgment with respect to, or pay in full , such claim. Failure to defend is a Material Breach. 3.4 If an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person s actual loss , net of any insurance or other recovery. Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party s indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party. 6.4 Force Maieure.As used in this Agreement , " Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of the Company 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. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) (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 suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. Default and Material Breaches. Defaults.If either Party fails to perform any of the terms or conditions of this Agreement (a "Default" or 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 Agreement and/or pursue its legal or equitable remedies. Material Breaches.The notice and cure provisions in Paragraph 6.1 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. 7. Insurance. During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 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. The above insurance coverage shall be placed with an insurance company with an AM. Best Company rating of A- or better and shall include: IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company LP.C. No. 28, Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) (a) An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b) A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. Seller to Provide Certificate of Insurance.As required in Paragraph 7 herein and annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the endorsements required therein , evidencing the coverage as set forth above. 7.4 Seller to Notify Idaho Power of Loss of Coveraqe - If the insurance coverage required by Paragraph 7.1 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 grounds for a temporary disconnection under Section 5.3 and will be a Material Breach. Miscellaneous. Governinq Law.The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard to its conflicts of law principles. Salvaqe.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 furnished Interconnection Facilities as required under Schedule 72 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. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company I.P.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Notices. General.Unless otherwise provided in this Agreement, any written notice demand , or request required or authorized in connection with this Agreement ("Notice ) shall be deemed properly given if delivered in person , delivered by recognized national currier service or sent by first class mail, postage prepaid, to the person specified below: If to the Seller: Seller: Attention: Address: City: Phone: State:Zip: Fax: If to the Company: Company Attention: Address: City: Phone: State: Fax: Zip: out below: Billinq and Payment.Billings and payments shall be sent to the addresses set Seller: Attention: Address: City: Phone: State:Zip: Fax: Company: Attention: Address: City: Phone: State:Zip: Fax: IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President , Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Desiqnated Operatinq Representative The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the administration of this Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party s facilities. Seller s Operating Representative: Seller: Attention: Address: City: Phone: State:Zip: Fax: Company s Operating Representative: Company: Attention: Address: City: Phone: State:Zip: Fax: Chanqes to the Notice Information . Either Party may change this information by giving five Business Days written notice prior to the effective date of the change. 10.Siqnatures. IN WITNESS WHEREOF , the Parties have caused this Agreement to be executed by their respective duly authorized representatives. For the Company Name: Title: Date: For the Seller Name: Title: Date: IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 1 Description and Costs of the Generation Facility. Interconnection Facilities and Meterinq Equipment In this attachment the Generation Facility and Interconnection Facilities, including Special Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company. As provided in Schedule 72 Payment For Interconnection Facilities , the Company will provide a best estimate itemized cost of its Interconnection Facilities , including Special Facilities, upgrades and Metering Equipment. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 2 One-line Diaqram Depictinq the Small Generation Facility. Interconnection Facilities. Meterinq Equipment and Upqrades IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street. Boise , Idaho Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 3 Milestones In-Service Date: Critical milestones and responsibility as agreed to by the Parties: Milestone/Date Responsible Party (1 ) (2) (3) (4) (5) (6) (7) (8) (9) (10) Agreed to by: For the Company Date For the Seller Date IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company I.P.C. No. 28. Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 4 Additional Operatinq Requirements for the Company s Transmission System and Affected Systems Needed to Support the Seller s Needs The Company shall also provide requirements that must be met by the Seller prior to initiating parallel operation with the Company s Transmission System. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise , Idaho Idaho Power Company LP.C. No. 28, Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 5 Reactive Power Requirements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided by the Seller. The Company will specify the equipment required on the Company s system to meet the Facility s reactive power requirements. These specifications will include but not be limited to equipment specifications , equipment location, Company- provided equipment, Seller provided equipment, and all costs associated with the equipment, design and installation of the Company-provided equipment. The equipment specifications and requirements will become an integral part of this Agreement. The Company-owned equipment will be maintained by the Company, with total cost of purchase, installation , operation, and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale , Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 6 Company s Description of Upqrades Required to Inteqrate the Generation Facility and Best Estimate of Upqrade Costs As provided in Schedule 72 this Attachment describes Upgrades, including best work upgrades, and provides an itemized best estimate of the cost of the Upgrades. IDAHO Issued - September 1 , 2006 Effective - October 1 , 2006 Issued by IDAHO POWER COMPANY John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street , Boise , Idaho BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-O6- l IDAHO POWER COMPANY ATTACHMENT 2 Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION AVAILABILITY Service under this schedule is available throughout the Company s service area within the State of Idaho to Sellers owning or operating Qualifying Facilities that siqn a Uniform Interconnection Aqreement or that qualify for Schedule 84. APPLICABILITY Service under this schedule applies to the construction , operation, maintenance, Upgrade Relocation, or removal of transmission and/or distribution lines and equipment necessary to safely interconnect a Seller s Generation Facility to the Company s system. DEFINITIONS Additional Applicant is a person or entity whose request for electrical connection requires the Company to utilize existing Interconnection Facilities which are subject to a Vested Interest. Company is the Idaho Power Company. Connected Load is the combined input rating of the Customer s motors and other energy consuming devices. Construction Cost is the cost, as determined by the Company, of Upgrades, Relocation or construction of Company furnished Interconnection Facilities. Disconnection Equipment is any device or combination of devices by which the Company can manually and/or automatically interrupt the flow of energy from the Seller to the Company s system including enclosures or other equipment as may be required to ensure that only the Company will have access to certain of the devices. First Enerqy Date is the date when the Seller begins delivering energy to the Company system. Generation Facility means equipment used to produce electric energy at a specific physical location which meets the requirements to be a Qualifying Facility or that qualify for Schedule 84. Interconnection Facilities are all facilities which are reasonably required by prudontqood oloctric31 ~practices and the National Electric Safety Code to interconnect and to allow the delivery of energy from the Seller s Generation Facility to the Company s system , including, but not limited to Special Facilities, Disconnection Equipment and Metering Equipment. Interconnection Point is the point where the Seller s conductors connect to the facilities owned by the Company. Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) DEFINITIONS (Continued) Meterinq Equipment is the Company owned equipment required to measure, record or telemeter power flows between the Seller s Generation Facility and the Company s system. Protection Equipment is the circuit-interrupting device, protective relaying, and associated instrument transformers. PURPA means the Public Utility Regulatory Policies Act of 1978. Qualifvinq Facilitv is a cogeneration facility or a small power production facility which meets the PURPA criteria for qualification set forth in Subpart B of Part 292 , Subchapter K, Chapter I , Title 18, of the Code of Federal Regulations. Relocation is a change in the location of existing Company-owned transmission and/or distribution lines, poles or equipment. Schedule 84 is the Company s service schedule which provides for sales of electric energy to the Company by means of a net metering arrangement or its successor(s) as approved by the Commission. Seller is a non-utility generator who has contracted or will contract with the Company to interconnect a Generation Facility to the Company s system to sell electric energy to the Company including net metering sales , as provided in Schedule 84. Seller-Furnished Facilities are those portions of the Interconnection Facilities provided by the Seller. Special Facilities are additions to or alterations of transmission and/or distribution lines and transformers, including, but not limited to, Upgrades and Relocation , to safely interconnect the Seller Generation Facility to the Company s system. Transfer Cost is the cost, as determined by the Company, for acceptance by the Company of Seller-Furnished Facilities. Upqrades are those improvements to the Company s existing system which are reasonably I required by prudontqood oloctric31 !:!1ili.!Y.....practices and the National Electric Safety Code to safely interconnect the Seller s Generation Facility. Such improvements include , but are not limited to additional or larger conductors , transformers, poles , and related equipment. Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) DEFINITIONS (Continued) Vested Interest is the claim for refund that a Seller or Additional Applicant holds in a specific portion of Company-owned Interconnection Facilities. The Vested Interest expires 5 years from the date the Company completes construction of its portion of the Interconnection Facilities unless fully refunded earlier. Vested Interests do not apply to Schedule 84 net metering projects. COST OF INTERCONNECTION FACILITIES All Interconnection Facilities provided under this schedule will be valued at the Company Construction Cost and/or the Transfer Cost for vesting purposes as well as for operation and maintenance payment obligations. PAYMENT FOR INTERCONNECTION FACILITIES Unless specifically agreed otherwise by written agreement between the Seller and the Company, the Seller will pay all costs of interconnecting a Generation Facility to the Company system. Unless specifically agreed otherwise in a written agreement between the Seller and the Company, an initial cost estimate of Company-owned Interconnection Facilities will be provided to the Seller. Payment of the estimated cost will be required prior to the Company s ordering, installing, modifying, upgrading, or performing in any other way work associated with the Interconnection Facilities. Upon completion of the Company-owned Interconnection Facilities, the actual costs will be reconciled against the estimated cost previously paid by the Seller and the appropriate billing or refund will be processed. The Company reserves the right to collect additional costs from the Seller for any additional Company equipment, modifications, or upgrades the Company deems necessary to operateand maintain a safe, reliable electrical system as a result of the interconnection of the Seller Generation Facility to the Company s system. CONSTRUCTION AND OPERATION OF INTERCONNECTION FACILITIES All Seller-Furnished Interconnection Facilities will be constructed and maintained in a manner to I be in full compliance with all prudontqood oloctric31 utility practices, National Electric Safety Code, and all other applicable Federal , state, and local safety and electrical codes and standards at all times. The Seller shall:1. Submit proof to the Company that all licenses, permits, inspections and approvals necessary for the construction and operation of the Seller s Generation and Interconnection Facilities under this schedule have been obtained from applicable Federal , state , or local authorities. Idaho Power Company I.P.C. No. 28. Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) DISCONNECTION EQUIPMENT (Continued)3. Physically installed at a location within 10 feet of the Interconnection Point or exact permanent instructions posted at the Interconnection Point indicating the precise location of the Disconnection Equipment's operating device.4. Of a design manually operated and lockable in the open position with a standard Company padlock. Operation of Disconnection Equipment., in the reasonable opinion of the Company, the Seller s operation or maintenance of the Generation Facility or Interconnection Facilities is unsafe or may otherwise adversely affect the Company s equipment, personnel , or service to its customers, the Company may physically disconnect the Seller s Generation Facility or Interconnection Facilities by operation of the disconnection device or by any other means the Company deems necessary to adequately disconnect the Seller s Generation and Interconnection Facilities from the Company system. At such time as the unsafe condition is remedied or other condition adversely affecting the Company is resolved to the Company s satisfaction , the interconnection will be restored. The Company will disconnect the Seller s Generation and Interconnection Facilities in the event of any planned or unplanned maintenance or repair of the Company s system connected to the Seller Generation and Interconnection Facilities. In the event of unplanned maintenance or repairs, no prior notice will be provided. In the event of planned repairs, the Company will attempt to notify the Seller of the time and duration of the planned outage. The Company will disconnect the Seller s Generation Facility and Interconnection Facilities in the event that any terms and conditions of any applicable Company tariff or contract enabling the interconnection of the Seller s Generation Facility is deemed by the Company to be in default or delinquent. All expenses of disconnection and reconnection incurred by the Company will be billed to the Seller. In the case of a net metering facility, disconnection of the service may be necessary. The disconnection may result in interruption of both energy deliveries from the Seller s Generation Facility to the Company as well as interruption of energy deliveries from the Company to the Seller. The Company will establish the settings of Protection Equipment to disconnect the Seller Generation Facility and Interconnection Facilities for the protection of the Company s system and I personnel consistent with prudentqood electric;)1 utility practices. If the Seller attempts to modify, adjust or otherwise interfere with the protection equipment or its settings as established by the Company, such action may be grounds for the Company s refusal to continue interconnection of the Seller s Generation and Interconnection Facilities to the Company s system. Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) GENERAL REQUIREMENTS OF INTERCONNECTED PROJECTS 1. The Company will construct, own, operate and maintain all equipment, Upgrades and Relocations on the Company s electrical side of the Interconnection Point.2. The Company will clearly mark the Metering Equipment and any other Company equipment associated with the Seller s Generation Facility and/or Interconnection Facilities designating I the existence of the Seller s Generation Facility as required by prudentqood oloctric31 utility practices.3. The Seller will be required to submit all specific designs , equipment specifications, and test results of the Seller-Furnished Facilities to the Company for review. Upon receipt of the design and equipment specifications, the Company will review the design and equipment specifications for conformance with applicable electrical and safety codes and standards. SPECIFIC PROJECT REQUIREMENTS Generation Facilities Interconnectinq as a Schedule 84 (net meterinq) Project Certification prior to interconnection: Seller Generation Facilities that qualify for net metering under Schedule 84 will submit to the Company a certification from an independent qualified party licensed in the State of Idaho that the design and equipment in the Generation Facility and Seller-Furnished Facilities (1) comply with the Institute of Electrical and Electronic Enqineers ("IEEE") Standard 1547 and all other standards of this schedule and applicable electric and building codes and (2) will operate to safely deliver Energy to the Interconnection Point. The Seller shall provide the credentials and licenses of the certifying party to the Company for review and acceptance of the certification. Periodic re-certification: i. Projects larqer than 25 kW. The Seller will obtain an annual certification from an independent qualified party licensed in the State of Idaho, certifying the Generation Facility and Seller-Furnished Facilities and equipment are in compliance with IEEE Standard 1547 and all current applicable electrical and safety codes~ and are able to safely and reliably continue to operate. The Seller will provide the credentials and licenses of the certifying party to the Company for review and acceptance of the certification. A copy of this certification must be forwarded to the Company by May 1st of each calendar year in which the Seller s facility is interconnected to the Company system. Within the first calendar year of operation, the Seller will be required to supply only the certifications required at the time of the initial interconnection. If the Company does not accept the annual certification within sixty days of its receipt, the Generation Facility will be disconnected from the Company s system until such time as the certification is completed and accepted by the Company. Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) (Continued) Generation Facilities Interconnectinq as Schedule 84 (net meterinq) Proiect ii. Proiects 25 kW and smaller. The above described certification will be provided every three years. iii. Re-certification followinq modifications Prior to making any material modifications or additions to the Generation Facility or Interconnection Facilities Seller will provide Company with a written description of the proposed change. The Company will expeditiously review the proposal and authorize Seller to proceed subject to final inspection and certification by a qualified party as described in paragraph 1 a above. Any modifications made without notice will result in disconnection of the facility until suchtime as certification of the modified facility is submitted to and accepted by the Company. Generation Facilities Less Than 1 MW Nameplate Ratinq The following requirements are for Generation Facilities with nameplate ratings of less than , not including net metering facilities utilizing Schedule 84.a. The Company shall procure, install , own and maintain Metering Equipment to record energy deliveries to the Company. This metering will be separate from any other metering of the Seller s load and may be located on either side of the Interconnection Point. All acquisition , installation, maintenance , inspection and testing costs related to Meter Equipment installed to measure the Seller s energy deliveries to the Company shall be born by the Seller.b. The Seller is responsible for all costs incurred by the Company for the review evaluation and testing of Seller supplied designs and equipment regardless as to the outcome of the review or test results.c. The Seller, upon completion of installation and prior to interconnection of the Generation Facility to the Company s system, will provide the Company with certification from a professional engineer licensed in the State of Idaho stating that the Seller s Generation Facility and Interconnection Facilities are in compliance with IEEE Standard 1547 and all applicable electrical and safety codes to enable safe and reliable operation.d. The Seller will obtain and provide to the Company an annual certification and testing by a professional engineer licensed in the State of Idaho, certifying the ongoing compliance with IEEE Standard 1547 and all applicable electrical and safety codes and that the Seller-Furnished Facilities successfully meet applicable testing requirements and standards. In the event the Company does not receive and accept the annual certification within 30 days of the annual anniversary date of the agreement, the project will be disconnected from the Company s system until such time as the certification is completed and accepted by the Company. Idaho Power Company LP.C. No. 28, Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) This Interconnection Agreement ("Agreement") is effective as of the day of , between , hereinafter called "Seller " and Idaho Power Company, hereinafter called "Company. RECITALS A. Seller will own or operate a Generation Facility that qualifies for service under Idaho Power s Commission-approved Schedule 72 and any successor schedule. B. The Generation Facility covered by this Agreement is more particularly described in Attachment 1. AGREEMENTS1. Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body of this Agreement.2. This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the Seller s Generation Facility will interconnect with , and operate in parallel with , the Company s transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in this Agreement. If there is any conflict between the terms of this Agreement and Schedule , Schedule 72 shall prevail.3. This Agreement is not an agreement to purchase Seller s power. Purchase of Seller power and other services that Seller may require will be covered under separate agreements. Nothing in this Agreement is intended to affect any other agreement between the Company and Seller. Attached to this Agreement and included by reference are the following: Attachment 1 Description and Costs of the Generation Facility, Interconnection Facilities , and Metering Equipment. Attachment 2 - One-line Diagram Depicting the Generation Facility, Interconnection Facilities , Metering Equipment and Upgrades. Attachment 3 - Milestones For Interconnecting the Generation Facility. Idaho Power Company I.P.C. No. 28, Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Attachment 4 - Additional Operating Requirements for the Company s Transmission System Needed to Support the Seller s Generation Facility. Attachment 5 - Reactive Power. Attachment 6 - Description of Upgrades required to integrate the Generation Facility and Best Estimate of Upgrade Costs. Effective Date, Term, Termination and Disconnection Term of Aqreement.Unless terminated earlier in accordance with the provisions of this Agreement , this Agreement shall become effective on the date specified above and remain effective as long as Seller's Generation Facility is eligible for service under Schedule 72. Termination. Seller may voluntarily terminate this Agreement upon expiration or termination of an agreement to sell power to the Company. After a Default, either Party may terminate this Agreement pursuant to Section 6. Upon termination or expiration of this Agreement, the Seller s Generation Facility will be disconnected from the Company s transmission/distribution system. The termination or expiration of this Agreement shall not relieve either Party of its liabilities and obligations , owed or continuing at the time of the termination. The provisions of this Section shall survive termination or expiration of this Agreement. Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Temporary Disconnection . Temporary disconnection shall continue only for so long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of the practices , methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices , reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice , method , or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC requirements. Payment of lost production revenue resulting from temporary disconnection shall be governed by the power purchase agreement. Emerqencv Conditions . " Emergency Condition " means a condition or situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (2) that, in the case of the Company, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to the Company transmission/distribution system , the Company s Interconnection Facilities or the equipment of the Company s customers; or (3) that, in the case of the Seller, is imminently likely (as determined in a non- discriminatory manner) to cause a material adverse effect on the reliability and security , or damage to, the Generation Facility or the Seller s Interconnection Facilities. Under Emergency Conditions, either the Company or the Seller may immediately suspend interconnection service and temporarily disconnect the Generation Facility. The Company shall notify the Seller promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller s operation of the Generation Facility. The Seller shall notify the Company promptly when it becomes aware of an Emergency Condition that may reasonably be expected to affect the Company s equipment or service to the Company customers. To the extent information is known , the notification shall describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties facilities and operations, its anticipated duration , and the necessary corrective action. Idaho Power Company LP.C. No. 28. Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Routine Maintenance. Construction. and Repair.The Company may interrupt interconnection service or curtail the output of the Seller s Generation Facilityand temporarily disconnect the Generation Facility from the Company transmission/distribution system when necessary for routine maintenance, construction and repairs on the Company s transmission/distribution system. The Company will make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt interconnection or curtail 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, the Company may not be able to provide notice to the Seller prior to interruption , curtailment or reduction of electrical energy deliveries to the Company. The Company shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller. 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 the Company and Seller shall mutually agree as to the acceptability of the proposed schedule. The Parties determination as to the acceptability of the Seller timetable for scheduled maintenance will take into consideration Good Utility Practices , Idaho Power system requirements and the Seller preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 3.4. Maintenance Coordination.The Seller and the Company shall , to the extent practical , coordinate their respective transmission/distribution system and Generation Facility maintenance schedules such that they occur simultaneously. Seller shall provide and maintain adequate protective equipment sufficient to prevent damage to the Generation Facility and Seller-furnished Interconnection Facilities. In some cases some of Seller s protective relays will provide back-up protection for Idaho Power facilities. In that event, Idaho Power will test such relays annually and Seller will pay the actual cost of such annual testing. Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- . SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Forced Outaqes.During any forced outage , the Company may suspend interconnection service to effect immediate repairs on the Company transmission/distribution system. The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not given, the Company shall, upon request provide the Seller written documentation after the fact explaining the circumstances of the disconnection. Adverse Operatinq Effects.The Company shall notify the Seller as soon as practicable if, based on Good Utility Practice, operation of the Seller s Generation Facility may cause disruption or deterioration of service to other customers served from the same electric system, or if operating the Generation Facility could cause damage to the Company s transmission/distribution system or other affected systems. Supporting documentation used to reach the decision to disconnect shall be provided to the Seller upon request. If, after notice , the Seller fails to remedy the adverse operating effect within a reasonable time, the Company may disconnect the Generation Facility. The Company shall provide the Seller with reasonable notice of such disconnection , unless the provisions of Article 5.1 apply. Modification of the Generation Facility.The Seller must receive written authorization from the Company before making any change to the Generation Facility that may have a material impact on the safety or reliability of the Company transmission/distribution system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Utility Practice. If the Seller makes such modification without the Company s prior written authorization , the latter shall have the right to temporarily disconnect the Generation Facility. Reconnection.The Parties shall cooperate with each other to restore theGeneration Facility, Interconnection Facilities and the Company transmission/distribution system to their normal operating state as soon as reasonably practicable following a temporary disconnection. Idaho Power Company LP.C. No. 28. Tariff No.1 01 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Voltaqe Levels.Seller, in accordance with Good Utility Practices , shall minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in accordance with Good Utility 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. 5.4 Land Riqhts. 5.4.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. 5.4.Use of Public Riqhts-of-Wav.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 5.4.4, 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 5.4.4 , Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4. Idaho Power Company I.P.C. No. 28 . Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) 5.4.Joint Use of Facilities.Subject to Idaho Power compliance with Paragraph 15.4.4 , 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 s 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 5.4., attaching Seller s Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4 Idaho Power shall not be required to compensate Seller for exercising its rights under this Paragraph 5.4. 5.4.4 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 Paragraph 5.4. Therefore , the Parties agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all applicable laws. codes and Good Utility 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 Paragraph 5.4. Assiqnment. Liability. Indemnity. Force majeure. Consequential Damaqes and Default. Assiqnment.This Agreement may be assigned by either Party upon twenty-one (21) calendar days prior written notice and opportunity to object by the other Party; provided that: Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) The Seller shall have the right to contingently assign this Agreement without the consent of the Company, for collateral security purposes to aid in providing financing for the Generation Facility, provided that the Seller will promptly notify the Company of any such contingent assignment. Any attempted assignment that violates this article is void and ineffective. Assignment shall not relieve a Party of its obligations, nor shall a Party s obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial , credit, and insurance obligations as the Seller. Where required consent to assignment will not be unreasonably withheld , conditioned or delayed. Limitation of Liabilitv. Each Party s liability to the other Party for any loss, cost claim, injury, liability, or expense, including reasonable attorney s fees , relating to or arising from any act or omission in its performance of this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special , consequential , or punitive damages, except as authorized by this Agreement. Indemnity This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in Article 6. The Parties shall at all times indemnify, defend , and hold the other Party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand , suits recoveries, costs and expenses , court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party s action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party. Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) If an indemnified person is entitled to indemnification under this article as a result of a claim by a third party, and the indemnifying Party fails , after notice and reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest settle or consent to the entry of any judgment with respect to, or pay in full, such claim. Failure to defend is a Material Breach. 3.4 If an indemnifying party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person s actual loss, net of any insurance or other recovery. Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party of such fact. Any failure of or delay in such notification shall be a Material Breach and shall not affect a Party s indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party. 6.4 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 the Company 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 , orchanges 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. Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) (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 suspension of performance and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrence. Default and Material Breaches. Defaults.If either Party fails to perform any of the terms or conditions of this Agreement (a "Default" or 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 Agreement and/or pursue its legal or equitable remedies. Material Breaches.The notice and cure provisions in Paragraph 6.1 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. 7. Insurance. During the term of this Agreement, Seller shall secure and continuously carry the following insurance coverage: 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. The above insurance coverage shall be placed with an insurance company with an AM. Best Company rating of A- or better and shall include: Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) (a) An endorsement naming Idaho Power as an additional insured and loss payee as applicable; and (b) A provision stating that such policy shall not be canceled or the limits of liability reduced without sixty (60) days' prior written notice to Idaho Power. Seller to Provide Certificate of Insurance.As required in Paragraph 7 herein and annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the endorsements required therein, evidencing the coverage as set forth above. 7.4 Seller to Notify Idaho Power of Loss of Coveraqe - If the insurance coverage required by Paragraph 7.1 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 grounds for a temporary disconnection under Section 5.3 and will be a Material Breach. Miscellaneous. Governinq Law. The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Idaho without regard to its conflicts of law principles. Salvaqe.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 furnished Interconnection Facilities as required under Schedule 72 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. Idaho Power Company I.P.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Notices. General.Unless otherwise provided in this Agreement, any written notice demand , or request required or authorized in connection with this Agreement ("Notice ) shall be deemed properly given if delivered in person , delivered by recognized national currier service or sent by first class mail, postage prepaid, to the person specified below: If to the Seller: Seller: Attention: Address: City: Phone: State:Zip: Fax: If to the Company: Company Attention: Address: City: Phone: State:Zip: Fax: out below: Billinq and Payment.Billings and payments shall be sent to the addresses set Seller: Attention: Address: City: Phone: State:Zip: Fax: Company: Attention: Address: City:State:Zip:Phone: Fax: Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) AGREEMENTS (Continued) Desiqnated Operatinq Representative The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the administration of this Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party s facilities. Seller s Operating Representative: Seller: Attention: Address: City: Phone: State:Zip: Fax: Company s Operating Representative: Company: Attention: Address: City: Phone: State:Zip: Fax: Chanqes to the Notice Information . Either Party may change this information by giving five Business Days written notice prior to the effective date of the change. 10.Siqnatures. IN WITNESS WHEREOF , the Parties have caused this Agreement to be executed by their respective duly authorized representatives. For the Companv Name: Title: Date: For the Seller Name: Title: Date: Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 1 Description and Costs of the Generation Facility. Interconnection Facilities and Meterinq Equipment In this attachment the Generation Facility and Interconnection Facilities, including Special Facilities and upgrades, are itemized and identified as being owned by the Seller or the Company. As provided in Schedule 72 Payment For Interconnection Facilities, the Company will provide a best estimate itemized cost of its Interconnection Facilities , including Special Facilities, upgrades and Metering Equipment. Idaho Power Company LP.C. No. 28, Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 2 One-line Diaqram Depictinq the Small Generation Facility. Interconnection Facilities. Meterinq Equipment and Upqrades Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 3 Milestones In-Service Date: Critical milestones and responsibility as agreed to by the Parties: Milestone/Date Responsible Party (1 ) (2) (3) (4) (5) (6) (7) (8) (9) (10) Agreed to by: For the Company Date For the Seller Date Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 4 Additional Operatinq Requirements for the Company s Transmission System and Affected Systems Needed to Support the Seller s Needs The Company shall also provide requirements that must be met by the Seller prior to initiating parallel operation with the Company s Transmission System. Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 5 Reactive Power Requirements Idaho Power will determine the reactive power required to be supplied by the Company to the Seller, based upon information provided by the Seller. The Company will specify the equipment required on the Company s system to meet the Facility reactive power requirements. These specifications will include but not be limited to equipment specifications, equipment location , Company- provided equipment, Seller provided equipment , and all costs associated with the equipment, design and installation of the Company-provided equipment. The equipment specifications and requirements will become an integral part of this Agreement. The Company-owned equipment will be maintained by the Company, with total cost of purchase , installation, operation , and maintenance, including administrative cost to be reimbursed to the Company by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly Operation and Maintenance Charges specified in Schedule 72. Idaho Power Company LP.C. No. 28. Tariff No. 101 Ori inal Sheet No. 72- SCHEDULE 72 INTERCONNECTIONS TO NON-UTILITY GENERATION (Continued) IDAHO POWER COMPANY UNIFORM INTERCONNECTION AGREEMENT (PURPA) (Continued) Attachment 6 Company s Description of Upqrades Required to Inteqrate the Generation Facility and Best Estimate of Upqrade Costs As provided in Schedule 72 this Attachment describes Upgrades , including best work upgrades and provides an itemized best estimate of the cost of the Upgrades.