20061121Application.pdf

An IDACORP Company
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IDAHO
POWE R CID
November 21 2006
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-
In the Matter of the Application of Idaho Power Company for Approval
of the Agreement for Sale and Purchase of Surplus Energy Between
Idaho Power Company and the Amalgamated Sugar Company, LLC-
Twin Falls Facility
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
rJ;;~
Monica B. Moen
MBM:sh
Enclosures
Telephone [phone] Fax [phone] E-mail MMoenrwidahopower.com
BARTON L. KLINE, ISB # 1526
MONICA B. MOEN , ISB # 5734
Idaho Power Company
1221 West Idaho Street
O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
Attorneys for Idaho Power Company
REC r:.\lF n
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2005 NaV 2 I PM 3: 18
ICiJ\HO t);!UUC
UTILITIES COl/il,118810(,
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF THE AGREEMENT FOR
SALE AND PURCHASE OF SURPLUS
ENERGY BETWEEN IDAHO POWER
COMPANY AND THE AMALGAMATED
SUGAR COMPANY, LLC -- TWIN FALLS
FACILITY.
CASE NO. IPC-06-
APPLICATION
COMES NOW Idaho Power Company ("Idaho Power" or "the Company
and hereby applies for a Commission order approving an Agreement For Sale and
Purchase of Surplus Energy between Idaho Power Company and The Amalgamated
Sugar Company, LLC ("TASCO") under which Idaho Power operates in parallel with
TASCO and purchases surplus electric energy generated by TASCO at its refined sugar
production facility in Twin Falls , Idaho (the "Agreement"
This Application is based on the following:
APPLICATION -
T ASCO owns and operates electric generating facilities at its refined sugar
production facility in Twin Falls , Idaho (the "Twin Falls Plant"
).
TASCO provides a
portion of its electric load at the Twin Falls Plant with its own on-site generation.
T ASCO desires to sell the surplus energy to Idaho Power.
II.
Idaho Power provides electric service to the Twin Falls Plant under Idaho
Power s Schedule 19. TASCO takes service under Schedule 19 to supplement the
energy T ASCO generates with its own on-site generation at the Twin Falls Plant.
III.
On August 11 , 2001 , Idaho Power entered into an Agreement for the Sale
and Purchase of Surplus Energy from this facility.This previous agreement was
approved by the Commission in IPUC Order No. 28910 , dated December 6 , 2001. This
agreement was for a five-year term. The term of that agreement expired in August
2006.
IV.
On November 20 , 2006, Idaho Power and TASCO entered into the
accompanying Agreement for the purchase of the surplus energy from the TASCO
generating facility. This Agreement is identical to the August 11 , 2001 agreement with
the exception of changes to the agreement term from five-years to annual renewals.
The Agreement may be terminated by either party upon 60 days notice. In addition
minor changes were required in the new Agreement to reflect the continuity with the
previously expired agreement.
APPLICATION - 2
Negotiation of the Agreement and execution of the Agreement by T ASCO
pre-dated Order No. 30179 issued by the Commission in Case No. I PC-06-, the
Company s Application for authority to institute a uniform Schedule 72 interconnection
agreement. Therefore , the Agreement does not include the modifications approved in
that Order.
VI.
Within the parameters established in the Agreement , Idaho Power will
purchase surplus electric energy up to 3 MW generated by the electric generating
equipment located at the Twin Falls Plant. The energy purchased under the Agreement
will be surplus energy not otherwise consumed by TASCO at the Twin Falls Plant. A
copy of the Agreement is attached hereto as Exhibit 1 .
VII.
Electric energy to be sold under the Agreement is non-firm energy and will
only be available if T ASCO does not consume the electric energy in the Twin Falls
Plant. The surplus energy to be purchased from T ASCO is priced at 85% of the
monthly weighted average non-firm Dow Jones Mid-Columbia Index price. Setting the
purchase price at a discount from market price assures that, when Idaho Power needs
the energy, the price will always be more attractive than buying from the market. When
it does not need the power, Idaho Power should be able to resell the energy at the
higher wholesale market price.
VIII.
The Agreement provides that the Agreement will not become finally
APPLICATION - 3
effective until the Commission has approved the Agreement and declares that all
payments for surplus energy under the Agreement shall be allowed as prudently-
incurred expenses for ratemaking purposes.
IX.
Should the Comjmission approve this Agreement, Idaho Power intends
to consider the Effective Date of the Agreement to be November 20 2007.
Service of pleadings, exhibits, orders and other documents relating to this
proceeding should be served on the following:
Barton L. Kline, Senior Attorney
Monica B. Moen, Attorney II
Idaho Power Company
O. Box 70
Boise , Idaho 83707
bkline (g) idahopower.com
mmoen (g) idahopower.com
Randy C. Allphin
Contract Administrator
Idaho Power Company
O. Box 70
Boise, Idaho 83707
rallphin
(g)
idahopower.com
NOW , THEREFORE, based on the foregoing, Idaho Power Company
hereby requests that the Commission issue its Order:
(1 )Approving the Agreement for Sale and Purchase of Surplus Energy
between Idaho Power Company and The Amalgamated Sugar Company, LLC - Twin
Falls Facility without change or condition; and
(2)Declaring that all payments for purchases of energy under the
Agreement for Sale and Purchase of Surplus Energy between Idaho Power Company
and The Amalgamated Sugar Company, LLC - Twin Falls Facility be allowed as
prudently incurred expenses for ratemaking purposes.
APPLICATION - 4
Respectfully submitted this 21 st day of November 2006.
MONICA B. MOEN
Attorney for Idaho Power Company
APPLICATION - 5
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on the c9./~day of November 2006 , I served
a true and correct copy of the within and foregoing APPLICATION upon the following
named parties by the method indicated below , and addressed to the following:
The Amalgamated Sugar Company
Attn: Ray Arp
3184 Elder Street
Boise , ID 83715
Hand Delivered
S. Mail
Overnight Mail
FAX
MONICA B. MOEN
CERTIFICATE OF SERVICE
RE CE !\lE: D
2006 NOV 2 I P~1 3: /8
IDAHO hh:J
UTILITIES COiVL'AISSJOj;
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O6- ~ 9
IDAHO POWER COMPANY
EXHIBIT
Idaho Public Utility
Commission Copy
Please return this signed original to Idaho Power.
IDAHO
~POWERCID
An IDACORP company
AGREEMENT FOR SALE AND PURCHASE OF SURPLUS ENERGY
BETWEEN
IDAHO POWER COMPANY
AND THE AMALGAMATED SUGAR COMPANY, LLC
TWIN FALLS FACILITY
THIS AGREEMENT is entered into on this )01)day of November, 2006,
by The Amalgamated Sugar Company, LLC, a Delaware Limited Liability Company
authorized to do business in the State of Idaho (T ASCO), and Idaho Power Company,
an Idaho corporation (Idaho Power or Company). TASCO and Idaho Power are
hereinafter sometimes referred to collectively as Parties or individually as Party.
RECITALS
ASCO owns and operates electric generation facilities at its
refined sugar production facility in Twin Falls , Idaho (Twin Falls Plant) and carries a
portion of its electric loads at the Twin Falls Plant with its own on-site generation.
Idaho Power provides electric service to the Twin Falls Plant under
Idaho Power Schedule 19. T ASCO takes service under Schedule 19 to supplement the
energy generated by TASCO on-site generation.
ASCO currently purchases standby electric service for the Twin
Falls Plant from Idaho Power under the Agreement for Supply of Standby Electric
Service Between Idaho Power Company and The Amalgamated Sugar Company, LLC
dated April 6, 1998 (Standby Agreement).
Page
T ASCO desires to sell to Idaho Power surplus power from its on-
site generation and to operate the Twin Falls Plant and the Twin Falls Generator
(hereinafter defined) in parallel with Idaho Power system under the terms and
conditions of this Agreement.
Within the parameters established in the Standby Agreement,
Idaho Power is willing to allow T ASCO to operate in parallel with Idaho Power and as
provided in this Agreement will purchase up to 3 MW from the Twin Falls Generator not
otherwise consumed by T ASCO in the Twin Falls Plant.
THEREFORE , In consideration of the mutual covenants hereinafter set
forth and other good and valued consideration , and the receipt and sufficiency of which
is hereby acknowledged, the Parties agree as follows:
SECTION 1 - DEFINITIONS
In addition to the previously defined Capitalized Terms, when used in this
Agreement, the following Capitalized Terms shall have the following meanings:
Commission" means the Idaho Public Utilities Commission or its
successor agency.
Contract Year" means the annual period commencing each
calendar year on the same calendar date as the Initial Service Date.
Disconnection Equipment" means any device or combination of
devices by which Idaho Power can manually and lor automatically interrupt the flow of
energy between the Twin Falls Generator and Idaho Power s system, including
enclosures or other equipment as may be required to ensure that only Idaho Power will
Page 2
have access to the devices. The Disconnection Equipment is part of the
Interconnection Facilities described in Paragraph 1.
1.4 Communications Equipment" means the signal cable and
converters required to provide the instantaneous telemetry of the power flows and
Disconnection Equipment status at the Point of Delivery as required by Idaho Power
dispatchers.
Interconnection Facilities" means all facilities which are reasonably
required by Prudent Electrical Practices and the National Electric Safety Code to
interconnect and deliver power and energy to the Twin Falls Plant and to physically and
electronically interconnect to receive energy generated by T ASCO's Twin Falls
Generator. The Interconnection Facilities include , but are not limited to, Network
Upgrades, Disconnection Equipment, Communications Equipment, and Metering
Equipment.
Metering Equipment" means the equipment required to measure
and record power flows between Idaho Power and the Twin Falls Plant and between
the Twin Falls Generator and Idaho Powers system.
Twin Falls Generator" means TASCO's Twin Falls Plant including
the associated generating facilities capable of producing 3 MW net surplus generation
connected via a common Point of Delivery for export to Idaho Power Company.
Point of Delivery" means the location where Idaho Powers
Metering Equipment and Disconnection Equipment for the Twin Falls Plant is installed.
Prudent Electrical Practices" means those practices, methods and
equipment that are commonly and ordinarily used in electrical engineering and utility
Page 3
operation to operate electrical equipment and deliver electric power and energy with
safety, dependability, efficiency, and economy.
1 .10 "Reliability Management System" or "RMS" shall mean the
contractual reliability management program implemented through the WECC Reliability
Criteria Agreement, Section 9 of this Agreement, and any similar contractual
arrangement.
Network Upgrades" means additions or alterations of Idaho Power
transmission and/or distribution lines, apparatus , system protection equipment and
control equipment to safely interconnect the Twin Falls Generator to the Company
system.
12 "Surplus Energy" means the total electric generation of the Twin
Falls Generator not otherwise consumed by T ASCO at the Twin Falls Plant.
13 "Total Contract Demand" means the sum of the Standby Facilities
Contract Demand as specified in the Standby Agreement and the KV A of demand
specified in the Uniform Large Power Service Agreements (Schedule 19 Agreements)
and is measured at the Point of Delivery.
14 "Total Contract Generation" means the net export from the Twin
Falls Generator to Idaho Power s system at the Point of Delivery, composed of up to 3
MW real power and such reactive power as provided for in Section 8.
SECTION 2 - WARRANTIES
No Warranty Bv Idaho Power. Any review, acceptance, or failure
to review TASCO's design , specifications , equipment or facilities associated with the
Twin Falls Generator or any T ASCO-owned Interconnection Facility shall not be an
Page 4
endorsement or a confirmation by Idaho Power, and Idaho Power makes no warranties
expressed or implied , regarding any aspect of T ASCO's design , specifications,
equipment or facilities, including but not limited to safety, durability, reliability, strength
capacity, adequacy or economic feasibility.
Equipment Protection. Idaho Power does not assume any
responsibility for the protection of the Twin Falls Generator. T ASCO is fully responsible
for protecting the Twin Falls Generator and its electrical equipment at the Twin Falls
Plant from faults or disturbances, negative sequence currents, reclosing, reverse power
flows, or single phasing on Idaho Powers system.
Qualifyinq Facility Status. T ASCO warrants that the Twin Falls
Generator is a qualifying facility as that term is used and defined in 18 CFR , Part 292.
Idaho Power Company at its discretion may request documents from T ASCO
supporting the Qualifying Facility Status and also reserves the right to audit the
associated and supporting records.
SECTION 3 - TERM AND TERMINATION
Initiation of Service. The Initial Service Date under this Agreement
shall be the date the Order is issued by the Idaho Public Utilities Commission approving
this Agreement as specified in paragraph 10.
Term of Aqreement.The initial term of this Agreement shall be for
one (1) Contract Year after which this Agreement shall automatically be renewed from
year-to year until terminated. Either party may terminate this Agreement at the end of
any Contract Year by providing notice to the other party no later than 60 days prior to
the end of the current Contract Year.
Page 5
SECTION 4 - PURCHASE OF SURPLUS GENERATION
Delivery and Acceptance of Surplus Enerqv.Following the Initial
Service Date, except when otherwise excused as provided in Paragraph 8.2 herein , and
subject to the capacity limit defined as Total Contract Generation , Idaho Power will
purchase the Surplus Energy delivered and accepted at the Point of Delivery.
Estimated Monthlv Surplus Enerqv Amounts.
1 T ASCO will not attempt to deliver and Idaho Power will not
be obligated to accept Surplus Energy at the Point of Delivery in a month in excess of
the amounts shown in Exhibit 1.
2 T ASCO will provide Idaho Power with revised estimates of
available Surplus Energy amounts by July 31 of each year for the period October 1 of
the current year through January 31 or the following year. TASCO will provide Idaho
Power its revised estimates of surplus energy amounts by January 31 of each year for
the period February 1 through September 30 of each year.
Purchase Price . The purchase price for Surplus Energy will be as
follows:
1 Eighty-five percent (85%) of the monthly weighted average
non-firm Dow Jones Mid-Columbia Index price.
If the Dow Jones Mid-Columbia Index price is not reported
for a particular period, day, or days , the average of the immediately preceding and
following report periods or days will be used to set the Purchase Price.
Page 6
Purchase Price Credit. The Purchase Price shall be credited to4.4
TASCO in the form of a dollar credit to TASCO's Schedule 19 purchase of energy and
capacity for TASCO's Twin Falls Plant.
SECTION 5 - INTERCONNECTION
Desian of Twin Falls Generator.T ASCO has designed,
constructed , installed , and will own, operate and maintain the Twin Falls Generator.
The Twin Falls Generator and any T ASCO-furnished Interconnection Facilities shall be
maintained in accordance with Prudent Electrical Practices, the National Electric Code
the National Electrical Safety Code, and any other applicable local , state , and federal
codes so as to allow safe , reliable delivery of electric energy to Idaho Power s system.
Interconnection Facilities . Under a previous agreement for this
Facility dated August 11 2001 , TASCO reimbursed the Company $91 332.41 for the
cost of the Interconnection Facilities specified in Exhibit 2 The Company did construct
install , and will continue to own , and maintain all Interconnection Facilities. TASCO will
reimburse the Company for the cost of future additions and modifications to the
Interconnection Facilities reasonably required by operation of the Twin Falls Plant
and/or the Twin Falls Generator and/or Prudent Electrical Practices. Exhibit 2 will be
amended to reflect any additional facilities associated with such additions or
modifications. TASCO agrees to pay monthly the operation and maintenance charges
associated with the Company-owned Interconnection Facilities identified on Exhibit 2.
T ASCO's monthly operation and maintenance charges are determined by multiplying
the cost of the facilities identified on Exhibit 2 by the percentage rates specified below.
The monthly operation and maintenance charge for the first Contract Year of this
Page 7
agreement is equal to year 6 within this table. The second Contract Year will be equal
to year 7 and so on for the term of this Agreement. If the term of this Agreement
exceeds the 24 years within this table, Idaho Power will determine monthly 0 & M
charges to be paid by T ASCO based upon the applicable rules and regulations that
apply at that time.
MONTHLY OPERATING AND MAINTENANCE CHARGES
Year
0& M Charg~59%
SECTION 6 - DISCONNECTION EQUIPMENT
Disconnection Equipment.Idaho Power has , at T ASCO's expense
provided , owns , operates, and maintains all Disconnection Equipment. Idaho Power
has established the settings of Disconnection Equipment to disconnect automatically at
the Point of Delivery for the protection and operation of Idaho Power s system and
personnel consistent with Prudent Electrical Practices , and in accordance with the Twin
Falls Generator limits as defined as Total Contract Generation.
Communications Equipment.Idaho Power has installed a remote
terminal unit (RTU), at TASCO's expense, to gather accumulated and instantaneous
data to be telemetered to a location designated by Idaho Power through use of
dedicated point-to-point data circuits. Instantaneous bi-directional analog real power
Page 8
and reactive power information, circuit breaker status information , instantaneous analog
voltage information , metering information, and disturbance monitoring information , shall
be telemetered directly to a location , or locations, determined by Idaho Power. TASCO
shall obtain and pay the monthly expenses for the specified point-to-point data circuits.
Remote Disconnection. Other Disconnection Equipment, including
equipment which will provide Idaho Power s operating personnel with the ability to
remotely control the breaker or other disconnecting device by radio or hard-wire circuit
may be specified by Idaho Power when , in Idaho Power s reasonable judgment, such
equipment is required by Prudent Electrical Practices. T ASCO recognizes that such
remote control equipment may not initially be required by Idaho Power, but at such time
as operating conditions on Idaho Power s system dictate, Idaho Power will install this
remote control equipment at T ASCO's expense.
6.4 Interierence with Disconnection Equipment.If T ASCO attempts to
modify, adjust , or otherwise interiere with the Disconnection Equipment or its enclosure
such action shall constitute grounds to cease parallel operation.
SECTION 7 - METERING
Meterinq. Idaho Power has provided , installed , and will continue to
maintain the required Metering Equipment at the Point of Delivery to record and
measure power flows and kilovar-hours from Idaho Power to the Twin Falls Plant and
from the Twin Falls Generator to Idaho Power. All Meter Equipment and installation
costs shall be borne by TASCO, including costs incurred by Idaho Power for inspecting
and testing such equipment at reasonable intervals , at Idaho Power s actual cost of
providing this Metering Equipment and services.
Page 9
Meter Inspection . Idaho Power shall inspect all meters every six
(6) months and test all meters upon their installation and at least once every four (4)
years thereafter. Idaho Power will provide T ASCO reasonable advance notice of the
time Idaho Power will inspect such meters. If requested by T ASCO, Idaho Power shall
make a special inspection or test of a meter and T ASCO shall pay the reasonable costs
of such special inspection or test. Both Parties shall be notified of the time when any
test shall take place, and each Party may have representatives present at the test. If a
meter is found to be inaccurate or defective, it shall be adjusted , repaired , or replaced
at Idaho Power s expense, in order to provide accurate metering. If a meter fails to
register, or if the measurement made by a meter during a test varies by more than two
percent (2%) from the measurement made by the standard meter used in the test
adjustment (either upward or downward) to the payments made to TASCO shall be
made to correct those payments affected by the inaccurate meter for the actual period
during which inaccurate measurements were made. If the actual period cannot be
determined, corrections to the payments will be based on the shorter of: (1) a period
equal to one-half the time from the date of the last pervious test of the meter to the date
of the test which established the inaccuracy of the meter; or, (2) six (6) months.
Telemetry. Idaho Power has installed, operates and will continue
to maintain, at TASCO's expense, metering, communications , and telemetry which is
capable of providing Idaho Power with instantaneous telemetry of the measurement of
power flows at the Point of Delivery. TASCO recognizes that the power flow data
provided by the telemetry equipment is only for general indication purposes and will not
be as accurate or reliable as the data recorded by the Metering Equipment at the Point
Page 10
of Delivery. TASCO further recognizes that Idaho Power makes no representations
regarding the accuracy or reliability of the power flow data received from the telemetry
equipment. T ASCO assumes the risk for its operating decisions based on the power
flow information from the telemetry equipment. All billing and other determinations
based on power flows under this Agreement will be based solely on the recorded meter
data from the Metering Equipment at the Point of Delivery.
SECTION 8 - OPERATIONS
Facility Maintenance. T ASCO has full responsibility for the
maintenance of the Twin Falls Generator and the TASCO-furnished Interconnection
Facilities protecting the Twin Falls Generator. If , in the opinion of Idaho Power, TASCO
has failed to provide proper maintenance of the Twin Falls Generator or the T ASCO-
furnished Interconnection Facilities, and this failure could adversely impact Idaho Power
or other Idaho Power customers, Idaho Power can operate the Disconnection
Equipment to prevent parallel operation.
Enerqy Acceptance . Idaho Power shall be excused from accepting
and paying for Surplus Energy delivered by TASCO from the Twin Falls Generator
under the following circumstances:
If it is prevented from doing so by any event of force
majeure.
If Idaho Power determines that curtailment, interruption , or
reduction of Surplus Energy deliveries is necessary because of line construction or
maintenance requirements, emergencies, operating conditions on its system , or as
otherwise required by Prudent Electrical Practices. To the extent practicable , Idaho
Page 11
Power will attempt to provide notice to T ASCO in advance of any curtailment
interruption, or reduction.
3 T ASCO exceeds the limits described in Section 4.1 or 4.
Voltaqe Levels. When delivering Surplus Energy T ASCO shall use
its best efforts to minimize voltage fluctuations and to maintain voltage levels
acceptable to Idaho Power. Power output from and input to the facility shall be in
accordance with the power quality standards contained in IEEE Standards 141 (voltage
flicker) and 519 (harmonics).
8.4 Generator Ramping . Idaho Power shall have the right to limit the
rate that generation at the T ASCO Facility is changed at startup, during normal
operation or following reconnection to Idaho Power s system. Generation ramping may
be required to permit Idaho Power s voltage regulation equipment time to respond to
changes in power flow.
Reactive Power. While in Surplus Energy mode (exporting power to
Idaho Power Company), the Twin Falls Generator shall be operated to maintain a
voltage schedule, reactive schedule, or power factor schedule, whichever is applicable
as prescribed by Idaho Power Company within the Twin Falls Generator s reactive
capabilities of the generation equipment in operation. Idaho Power Company may
request the Twin Falls Generator to change its voltage schedule , reactive schedule or
power factor schedule, whichever is applicable , or request the Twin Falls Generator to
supply its maximum available reactive power output or absorb its maximum reactive
power input (measured in MV AR) within the capabilities of the generation equipment in
operation at the time in order to maintain system security. The Parties recognize that
Page 12
the Twin Falls Generator will typically be able to provide reactive power at no cost and
therefore agree that the Twin Falls Generator will provide reactive power to or absorb
reactive power from Idaho Power within the capabilities of the generation equipment in
operation at the time at no charge to Idaho Power. In the event the Twin Falls
Generator is unable to consistently maintain required reactive power capability at the
Point of Delivery, the Twin Falls Generator shall take other appropriate steps to
configure the Twin Falls Generator to meet such requirements, including, as necessary,
the installation of reactive power compensating devices subject to prior review and
approval by Idaho Power.
Scheduled Maintenance. On or before April 1 of each year
TASCO shall submit a proposed maintenance schedule for the Contract Year and
Idaho Power and T ASCO shall mutually agree as to the acceptability or unacceptability
of the proposed schedule. The Parties determination as to the acceptability of
T ASCO's timetable for scheduled maintenance will take into consideration Prudent
Electrical Practices and neither party shall unreasonable withhold its acceptance of the
proposed schedule.
Maintenance Coordination . The Parties shall , to the extent
practical, coordinate their respective facility maintenance schedules such that they
occur simultaneously.
Contact Prior to Curtailment. Idaho Power will make a reasonable
attempt to contact T ASCO prior to exercising its rights to curtail , interrupt, or reduce
Surplus Energy deliveries from the Twin Falls Generator. T ASCO understands that in
the case of emergency circumstances, notice may not be given to T ASCO prior to
Page 13
interruption , curtailment, or reduction.
Pertormance measurements.TASCO shall provide Idaho Power
Company with all pertormance measurements required by NERC , WECC, and the RTO
(if applicable) for compliance monitoring programs such as, but not limited to , the
Reliability Management System (RMS).
10 Operating Agreement The Operating Agreement between Idaho
Power Company and The Amalgamated Sugar Company, LLC - Parallel Operation of
the Twin Falls Facility, dated August 11 , 2001 will continue in full effect until such time
as this Agreement terminates.
SECTION 9 - RELIABILITY MANAGEMENT SYSTEM
Purpose . In order to maintain the reliable operation of the transmission
grid, the WECC Reliability Criteria Agreement sets forth reliability criteria adopted by the
WECC to which the Twin Falls Generator and Idaho Power Company shall be required to
comply.
Compliance . Twin Falls Generator shall comply with the requirements
of the WECC Reliability Criteria Agreement, including the applicable WECC reliability
criteria set forth in Section IV of Annex A thereof, and, in the event of failure to comply,
T ASCO agrees to be subject to the sanctions applicable to such failure. Such sanctions
shall be assessed pursuant to the procedures contained in the WECC Reliability Criteria
Agreement. Each and all of the provisions of the WECC Reliability Criteria Agreement are
hereby incorporated by reference into this Article 9 as though set forth fully herein, and
T ASCO, for the Twin Falls Generator shall for all purposes be considered a Participant
and shall be entitled to all of the rights and privileges and be subject to all of the obligations
Page 14
of a Participant, under and in connection with the WECC Reliability Criteria Agreement
including but not limited to the rights, privileges and obligations set forth in Sections 5, 6
and 10 of the WECC Reliability Criteria Agreement.
Payment of Sanctions T ASCO, for the Twin Falls Generator shall be
responsible for reimbursing Idaho Power Company for any monetary sanctions assessed
against Idaho Power Company due to the action or inaction of Twin Falls Generator, by
WECC pursuant to the WECC Reliability Criteria Agreement. T ASCO also shall be
responsible for payment of any monetary sanction assessed against Twin Falls Generator
by WECC pursuant to the WECC Reliability Criteria Agreement. Any such payment shall
be made pursuant to the procedures specified in the WECC Reliability Criteria Agreement.
9.4 Transfer of Control or Sale of Generation Facilities In any sale or
transfer of control of any generation facilities subject to this Agreement, T ASCO shall as a
condition of such sale or transfer require the acquiring party or transferee with respect to
the transferred facilities either to assume the obligations of T ASCO with respect to this
Agreement or to enter into an agreement with Idaho Power Company imposing on the
acquiring party or transferee the same obligations applicable to Twin Falls Generator
pursuant to this Section 9.
Publication TASCO consents to the release by the WECC of
information related to the Twin Falls Generator s compliance with this Agreement only in
accordance with the WECC Reliability Criteria Agreement.
Third Parties Except for the rights and obligations between the
WECC and TASCO specified in this Section 9, this Agreement creates contractual rights
and obligations solely between the Parties. Nothing in this Agreement shall create , as
Page 15
between the Parties or with respect to the WECC: (a) any obligation or liability whatsoever
(other than as expressly provided in this Agreement), or (b) any duty or standard of care
whatsoever. In addition , nothing in this Agreement shall create any duty, liability, or
standard of care whatsoever as to any other party. Except for the rights , as a third-party
beneficiary under this Section 9, of the WECC against TASCO for the Twin Falls
Generator, no third party shall have any rights whatsoever with respect to enforcement of
any provision of this Agreement. Idaho Power Company and T ASCO expressly intend that
the WECC is a third-party beneficiary to this Section 9, and the WECC shall have the right
to seek to enforce against T ASCO any provision of this Section 9, provided that specific
performance shall be the sole remedy available to the WECC pursuant to Section 9 of this
Agreement, and T ASCO shall not be liable to the WECC pursuant to this Agreement for
damages of any kind whatsoever (other than the payment of sanctions to the WECC, if so
construed), whether direct, compensatory, special , indirect, consequential, or punitive.
Reserved Riqhts Nothing in the RMS or the WECC Reliability Criteria
Agreement shall affect the right of Idaho Power Company, subject to any necessary
regulatory approval , to take such other measures to maintain reliability, including
disconnection , that Idaho Power Company may otherwise be entitled to take.
Severability If one or more provisions of this Section 9 shall be
invalid, illegal or unenforceable in any respect, it shall be given effect to the extent
permitted by applicable law, and such invalidity, illegality or unenforceability shall not
affect the validity of the other provisions of this Agreement.
Page 16
Termination of Section 9 TASCO may terminate its obligations
pursuant to this Section 9:
If after the effective date of this Section 9 , the requirements
of the WECC Reliability Criteria Agreement applicable to
Twin Falls Generator are amended so as to adversely affect
the Twin Falls Generator, provided that T ASCO gives fifteen
(15) days' notice of such termination to Idaho Power
Company and WECC within forty-five (45) days of the date
of issuance of a Commission order accepting such
amendment for filing, provided further that the forty-five (45)
day period within which notice of termination is required may
be extended by T ASCO for an additional forty-five (45) days
if T ASCO gives written notice to Idaho Power Company of
such requested extension within the initial forty-five (45) day
period; or
For any reason on one year s written notice to Idaho Power
Company and the WECC.
SECTION 10 - MISCELLANEOUS PROVISIONS
10.Insurance . T ASCO will comply with the liability insurance
requirements contained in Idaho Power s IPUC Schedule 86 and its successor
schedules as those schedules may be modified from time to time by Commission order.
10.Riqhts of Way and Easements TASCO will grant to Idaho Power
all necessary rights of way and easements to install , operate , maintain , replace , and
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remove Idaho Power s metering and other Interconnection Facilities , including adequate
and continuing access rights to TASCO's property. TASCO warrants that it has
procured sufficient easements and rights of way from third parties as are necessary to
provide Idaho Power with the access described above. TASCO will execute such other
grants, deeds , or documents as Idaho Power may require to enable it to record such
rights of way and easements.
10.Indemnification . TASCO agrees to hold harmless and indemnify
Idaho Power, its officers, agents , and employees, against all loss, damage, expense
and liability to third persons or injury to or death of person or injury to property
proximately caused by TASCO's construction , operation or maintenance of, or by failure
, the Twin Falls Generator or the TASCO-furnished Interconnection Facilities.
10.4 Requlatorv Requirements. This Agreement and the rates, terms
and conditions of service set forth or incorporated herein, and the respective rights and
obligations of the Parties hereunder, will be subject to valid laws and to the regulatory
authority and orders, rules and regulations of the Commission and such other
administrative bodies having jurisdiction.
10.Commission Jurisdiction . The purchase prices contained herein
are negotiated rates. Their inclusion does not constitute a waiver by Idaho Power of its
right to contest TASCO's entitlement to full avoided cost rates under PURPA. Nothing
herein will be construed as limiting the Commission from changing any rates or charges
or any rules, regulation or conditions relating to services provided and/or Surplus
Energy purchases under this Agreement, or construed as affecting the right of Idaho
Power or T ASCO to unilaterally make application to the Commission for any such
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change.
10.Attorney s Fees. In any action at law or equity commenced under
this Agreement and upon which judgment is rendered, the prevailing party, as part of
such judgment, will be entitled to recover all costs, including reasonable attorney s fees,
incurred on account of such action.
10.Effective Date of Aqreement.This Agreement will not become
effective until the Commission has approved it and declares that all payments for
purchases of Surplus Energy shall be allowed as prudently incurred expenses for
ratemaking purposes.
IN WITNESS WHEREOF , the Parties hereto have executed this
Agreement as of the day and year herein written.
IDAHO POWER COMPANY
Ja es C. Miller, Sr. Vice President, Power Supply
Date \ l \)-0 0'"
THE AMALGAMATED SUGAR COMPANY, LLC
Title
Date
Page 19
AGREEMENT FOR SALE AND PURCHASE OF SURPLUS ENERGY
BETWEEN
IDAHO POWER COMPANY
AND THE AMALGAMATED SUGAR COMPANY , LLC
TWIN FALLS PLANT
EXHIBIT
Estimated Monthly Non-Firm EnerQY
T ASCO estimates that it will deliver non-firm energy in the following monthly amounts:
Month 3 MW Capacitv
January 232 000 kWh
February 016 000 kWh
March 232 000 kWh
April 160 000 kWh
May 232 000 kWh
June 160,000 kWh
July 232 000 kWh
August 232 000 kWh
September 160,000 kWh
October 232 000 kWh
November 160,000 kWh
December 232 000 kWh
Total 26,280,000 kWh
EXHIBIT
AGREEMENT FOR SALE AND PURCHASE OF SURPLUS ENERGY
BETWEEN
IDAHO POWER COMPANY
AND THE AMALGAMATED SUGAR COMPANY, LLC
TWIN FALLS PLANT
EXHIBIT 2
The Interconnection Facilities are as follows:
Meterinq Equipment
Metering package and associated current transformers and potential
transformers.
Separate current transformers for TASCO's use.
Disconnection Equipment
. 15-kV recloser and associated current transformers and protection package
(SEL 300G).
. Two pole-mounted voltage transformers, one on each side of the recloser. The
transformer on the line side of the recloser provides local service to the
protection package/recloser. The transformer on the load/customer side of the
recloser provides synchronizing voltage and/or deadline sensing. Both voltages
are available for TASCO's use.
Network Upqrades
. A potential transformer and associated control circuits at the Eastgate Substation
(feeder 014) for deadline sensing.
Capacitor Bank
Communications Equipment
. A remote terminal unit (SEL 2020) and modem at the Idaho Power Twin Falls
Exhibit 2
Operations Center for communication with the protection package.
A leased telephone line (in addition to the existing line connected to the metering
equipment) will be provided by TASCO between the protection package (SEL 300G)
and the remote terminal unit (SEL 2020). TASCO will order the telephone line from the
local telephone company and pay the monthly telephone charges. The telephone line
will need to be installed and operational prior to T ASCO cogenerating into the Idaho
Power system.
Idaho Power will communicate with T ASCO via dry contacts. The dry contacts are
described as follows:
Four dry inputs to the SEL 300G from T ASCO:
1. Generator breaker 52b contact (i.e. generation connected to the feeder).
2. Customer lockout trip
3. Recloser close control
4. Custom lockout reset
Four dry contact outputs from the SEL 300G to TASCO:
1. Recloser position (52a)
2. IPC lockout trip
3. System available for connection
4. Recloser position (52a)
Exhibit 2