20070913Motion Generation Interconnection.pdf

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~'8 IDAHO~POWER~
An IDACORP Company
10111 SEP \2 Ptl 4: 39
BARTON L. KLINE
Senior Attorney
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September 12 , 2007
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-
Idaho Power s Motion for Approval of the Bennett Creek Generation
Interconnection Agreement
Dear Ms. Jewell:
Please find enclosed for filing an original and seven (7) copies of Idaho
Power Company s Motion 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.
ve~
Barton L. Kline
BLK:sh
Enclosures
o. Box 70 (83707)
1221 W. Idaho St.
Boise, ID 83702
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BARTON KLINE , ISB # 1526
LISA D. NORDSTROM , ISB # 5733
Idaho Power Company
1221 West Idaho Street
P. O. Box 70
Boise, Idaho 83707
Telephone: [phone]
FAX Telephone: [phone]
UTi'
Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IDAHO POWER'S MOTION FOR
APPROVAL OF THE BENNETT CREEK
GENERATION INTERCONNECTION
AGREEMENT MOTION
CASE NO. IPC-06-
COMES NOW , Idaho Power Company ("Idaho Power" or the "Company ) and , in
accordance with RP 052 and RP 201 et seq.hereby requests that the Commission issue
its order approving the Generation Interconnection Agreement ("GIA") between Bennett
Creek Windfarm LLC ("Bennett Creek") and Idaho Power.
This Motion is based on the following:
The Commission has previously approved a Firm Energy Sales Agreement
between Idaho Power and Bennett Creek Windfarm (Order Nos. 30245 and 30399).
A copy of the Bennett Creek GIA is enclosed as Attachment No. 1.
1 The GIA covers both the Bennett Creek and Hot Springs Windfarm projects because a single
interconnection will be built to interconnect both projects and both projects are being developed by the same
developer.
MOTION - 1
Idaho Power has filed this Motion for two reasons. First, this GIA is the first
interconnection agreement involving the Public Utility Regulatory Policies Act of 1978
PURPA") generating facilities subject to Idaho Power s Schedule 72 which involves
substantial upgrades to Idaho Power s transmission system. Second, the allocation of
costs from the transmission upgrades for the Bennett Creek project were not addressed in
Commission Order No. 30414 in Case No. IPC-06-21 ("the Cassia Windfarms' case
In the Cassia Windfarms' case , the Commission approved a settlement
which implemented a cost-sharing arrangement under which Idaho Power will contribute
twenty-five percent (25%) of the cost of the needed transmission upgrades , Cassia
Windfarms will make a non-refundable 25% contribution in aid-of-construction ("CIAC") to
support the transmission upgrades and Cassia Windfarms will make an advance in aid-of-
construction ("A lAC") for the remaining balance of the cost of the upgrades. The AIAC will
be refunded to Cassia Windfarms over time if they fully perform their Firm Energy Sales
Agreements with Idaho Power. For purposes of this Motion , the 25%/25%/50% cost
sharing arrangement will be referred to as the "Cassia Formula
In Order No. 30414, the Commission concluded that use of the Cassia
Formula was appropriate for the Cassia Windfarms as well as the other PURPA generation
projects in the Twin Falls 138 kV transmission queue. However, the Commission did not
authorize the Company to automatically apply the Cassia Formula in other locations on its
system where transmission upgrades would be required. The Commission indicated that
application of any terms or conditions approved as a part of the settlement in the Cassia
Windfarms case to other Qualifying Facility ("QF") interconnection requests "will depend on
the specific characteristics of that situation." (Order No. 30414 p. 11). In the GIA between
MOTION - 2
Bennett Creek and Idaho Power, the parties have agreed to apply the Cassia Formula to
share the costs of the transmission upgrades for the Bennett Creek Windfarm.
In concluding that it is appropriate to use the Cassia Formula for sharing
costs of transmission upgrades for Bennett Creek, Idaho Power applied the Commission
findings and conclusions in Order No. 30414 as follows:
(1 )But for the construction of the Bennett Creek Windfarm , Idaho Power
would not have constructed the transmission upgrades described in Attachment 1 to
provide adequate service to its native load customers. Therefore , a contribution by
the developer of a portion of the transmission upgrade cost is appropriate.
(2)Idaho Power believes that in Order No. 30414 , the Commission
directed Idaho Power to assess the benefits of individual transmission upgrades
taking into consideration "the system wide benefits that accrue to all customers on
an integrated transmission grid". (Order No. 30414 p. 10). One way to approach
that assessment is to compare the level benefits that the Bennett Creek upgrades
will provide to the system with the level of benefits provided in the Cassia
Windfarms case. The Company acknowledges that it is nearly impossible to
precisely quantify the relative system benefits conferred by two distinct and
geographically separate transmission upgrades. However, transmission engineers
can exercise their judgment and their knowledge of transmission systems they have
designed and operate.Based on their informed judgment, Idaho Power
transmission engineers are of the opinion that the transmission upgrades identified
in Attachment 1 will provide different benefits than the transmission system benefits
the Cassia Windfarms upgrades will provide. Where the Cassia Windfarms
upgrade will install a new transformer to interconnect the 230 and 138 kV
MOTION - 3
transmission systems in the western portion of the Magic Valley, the improvements
contemplated herein will upgrade (replace the line conductor) and update (replace
poles, insulators and hardware not capable of supporting the larger conductor) an
older transmission line. Some facilities on the line interconnecting the Bennett
Creek project may have been providing service since 1921. The use of the Cassia
Formula is reasonable in this circumstance.
(3)The Company is also of the opinion that the application of the Cassia
Formula in this case will maintain the balance between "the benefits accruing to the
customers of the grid with the cost responsibility of the QF necessitating the timing
and the construction of the upgrade." (Order No. 30414 p. 11).
(4)Bennett Creek, like the QF projects in the Twin Falls queue, will
displace or defer the need for other or similar generation projects in the Company
Integrated Resource Plan that would likely require related transmission investment
by the Company. (Order No. 30414 p. 11).
(5)Idaho Power believes that application of the Cassia Formula in this
instance will allow it to successfully defend a comparability claim brought by a
Federal Energy Regulatory Commission ("FERC") jurisdictional customer claiming
that Idaho Power and the Commission had given unlawful , preferential treatment to
QF resources.
Idaho Power requests that the Commission process this Motion by modified
procedure in accordance with RP201 et seq.
CONCLUSION
For the reasons cited herein , Idaho Power respectfully submits that the enclosed
Generator Interconnection Agreement is consistent with Schedule 72 , Commission Order
MOTION - 4
No. 30414 and is in the public interest. The Company hereby requests that the
Commission issue its order: (1) processing this case in accordance with RP 201 et seq.
modified procedure; and (2) approving the Bennett Creek Generator Interconnection
Agreement without change or condition.
Respectfully submitted this
I L-\
day of September 2007.
~)c:yBART N L. KLINE
Attorney for Idaho Power Company
MOTION - 5
CERTIFICATE OF SERVICE
(..1..1
I HEREBY CERTIFY that on this day of September 2007, I served a true
and correct copy of the within and foregoing upon the following named parties by the
method indicated below, and addressed to the following:
Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington Street
Post Office Box 83720
Boise, Idaho 83720-0074
) U.S. Mail , Postage Prepaid
(X) Hand Delivered
) Overnight Mail
) Facsimile
(X) Email Scott.woodburv~puc.idaho.qov
Dean J. Miller
Attorney for Bennett Creek
McDevitt & Miller LLP
420 W. Bannock
Boise , ID 83701
) U.S. Mail, Postage Prepaid
) Hand Delivered
) Overnight Mail
) Facsimile
(X) Email: ioe~mcdevitt-miller.com
!CL-
MOTION - 6
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-O6-
IDAHO POWER COMPANY
ATTACHMENT
MOTION - 7
Idaho Power Company
I.P.C. No. 28. Tariff No.1 01
Generator Interconnection Agreement # 186/187
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72 (PURPA)
BENNETT CREEK / HOT SPRINGS PROJECT
39.6 MW
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28. Tariff No.1 01
TABLE OF CONTENTS
RECITALS
.................... ............. ..................... ...........
.................................... ................................ ........ 1
AG REEMENTS
... ....................... .......... .................................. ................ .......... ............... ......................
1. Capitalized Terms ................................................................................................................ 2. Terms and Conditions................ ........ ..........................
................ ..................... ........... ........
3. This Agreement is not an agreement to purchase Seller s power. ........................................ 4. Attachments .............. .......... ................................. ..................... ........................................... 15. Effective Date, Term, Termination and Disconnection. .........................................................
6. Assignment, Liability, Indemnity, Force majeure , Consequential Damages and Default. ...... 57. Insurance. ............ ........... ........... ........... ..... .......................................................................... 78. Miscellaneous. ......... ..........
......................................................................... ......
...... ..... ........ 79. Notices. .................................... .................................. ........ .......... .................. ...................... 810. Signatures. ........ ......................... ......... ..... ................................ ............................................ 9
Attachment Description and Costs
Attachment 2 One-line Diagram
Attachment 3 Milestones
Attachment 4 Additional Operating Requirements
Attachment 5 Reactive Power Requirements
Attachment 6 Company s Description of Upgrades and Best Estimate of Upgrade Costs
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No. 101 Paqe 1 of 8
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company
Schedule 72 is effective as of the day of , 2007 between Bennett Creek Windfarm
LLC and Hot Springs Windfarm , LLC
, ("
Seller" or "Interconnection Customer ) and Idaho Power
Company - Delivery ("Company , or "Transmission Owner").
RECITALS
A. Seller will own or operate 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
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
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
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 s 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.
4. Attachments
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 One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment Milestones For Interconnecting the Generation Facility.
Attachment Additional Operating Requirements for the Company s Transmission
System Needed to Support the Seller s Generation Facility.
Attachment 5 - Reactive Power.
Attachment Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
Effective Date. Term. Termination and Disconnection
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No.1 01 Paqe 2 of 8
Term of Aoreement.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.
2. 1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
After Default, either Party may terminate this Agreement pursuant to
Section
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.
Temporary Disconnection. Temporary disconnection shall continue only for
long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of
the practices, methods and acts engaged in or approved by 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 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.
Emeroencv Conditions
. "
Emergency Condition " means 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 non-discriminatory manner) to cause material adverse effect on the
security of, or damage to the Company transmission/distribution system, the
Companys 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 non-
discriminatory manner) to cause 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.
Routine Maintenance. Construction, and Repair.The Company may
interrupt interconnection service or curtail the output of the Sellers Generation Facilityand temporarily disconnect the Generation Facility from the Company
transmission/distribution system when necessary for routine maintenance, construction
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No.1 01 Paqe 3 of 8
and repairs on the Company transmission/distribution system. The Company will
make 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 written proposed maintenance schedule of significant Facility
maintenance for that calendar year and the Company and Seller shall mutually agree
to the acceptability of the proposed schedule. The Parties determination as to the
acceptability of the Seller's timetable for scheduled maintenance will take into
consideration 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.
Forced OutaGes.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 OperatinG Effects.The Company shall notify the Seller as soon
as practicable i~ 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 Companys 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 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 3. 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 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
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No.1 01 Paqe 4 of 8
transmission/distribution system to their normal operating state as soon as reasonably
practicable following temporary disconnection.
VoltaGe 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
Powers expense, Seller s equipment as necessary to accommodate the modified
nominal operating voltage level.
5.4 Land RiGhts.
5.4. 1 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 Powers 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 Powers approval and in recordable form.
5.4.Use of Public RiGhts-of-Way.The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of
duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho
Powers 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.
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 Powers 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 Sellers 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 Powers 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.and 5.4.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
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No.1 01 Paqe 5 of 8
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.
Assicmment. Liabilitv. Indemnity. Force maieure. Consequential Damaqes and Default
6. 1 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:
1. 1 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.
6. 1.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 Party of its obligations, nor shall Partys 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.
6.2 Limitation of Liabilitv. Each Party s liability to the other Party for any loss, cost
claim, injury, liability, or expense, including reasonable attorneys 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
3. 1 This provision protects each Party from liability incurred to third parties
result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article
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 Partys 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.
If an indemnified person is entitled to indemnification under this article
result of claim by 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 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
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28. Tariff No.1 01 e 6 of 8
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 Material Breach and shall not affect 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
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No.1 01 Paqe 7 of 8
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'j, 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 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
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:
7. 1 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:
(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 herein and
annually thereafter, Seller shall furnish the Company certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notifv Idaho Power of Loss of CoveraC/e 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 temporary disconnection under
Section and will be Material Breach.
Miscellaneous.
8. 1 GoverninC/ 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.
SalvaC/e.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
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28. Tariff No.1 01 e 8 of 8
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
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.
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:
Interconnection Customer: Bennett Creek Windfarm. LLC / Hot Sprinqs Windfarm. LLC
Attention: Donald Wonq
Address: 8796 Petite Creek Way
City: Roseville State: CA Zip: 95661
Phone: [phone] Fax: [phone]
If to the Company:
Company: Idaho Power Company - Delivery
Attention: Operations Manager
Address: 1221 W. Idaho Street
City: Boise State: Idaho Zip: 83702
Phone: [phone] Fax: [phone]
out below:
Billinq and Payment.Billings and payments shall be sent to the addresses set
Interconnection Customer: Bennett Creek Windfarm. LLC / Hot Sprinqs Windfarm. LLC
Attention: Donald Wonq
Address: 8796 Petite Creek Way
City: Roseville State: CA Zip: 95661
Phone: [phone] Fax: ' [phone]
Company: Idaho Power Company - Delivery
Attention: Delivery Finance
Address: 1221 W. Idaho Street
City: Boise State: Idaho Zip: 83702
Phone: [phone] email: twhite~idahopower.com
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28, Tariff No.1 01 e 9 of 8
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.
Interconnection Customer s Operating Representative:
Interconnection Customer: Bennett Creek Windfarm. LLC / Hot Sprinqs Windfarm, LLC
Attention: Donald Wonq
Address: 8796 Petite Creek Way
City: Roseville State: CA Zip: 95661
Phone: [phone] Fax: [phone]
Company s Operating Representative:
Company: Idaho Power Company - Delivery
Attention: Grid Operations Real Time Desk
Address: 1221 W. Idaho Street
City: Boise State: Idaho Zip: 83702
Phone: [phone]
9.4 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 he com
::AName: ;;(i~ h)0
Title: Manager, Grid Operations -Idaho Power Company, Delivery
Date: ---.3:J ~ - 0
Name:
Title:Manager
Wj - ()lDate:
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28. Tariff No. 101 e 1 of 1
Attachment
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 Payment For Interconnection Facilities, the Company will provide best
estimate itemized cost of its Interconnection Facilities, including Special Facilities, upgrades and
Metering Equipment.
Interconnection Details
This Attachment 1 is a part of the Standard Generator Interconnection Agreement under Idaho Power
Company s Schedule 72 between Interconnection Customer and Idaho Power Company - Delivery
(Transmission Owner) for the Bennett Creek/Hot Springs Wind Interconnection Project, specifically
Generator Interconnection Project # 186 and #187.
Point of Interconnection
The Point of Interconnection for the Bennett Creek/Hot Springs Project will be between the Transmission
Owner s airbreak switch number 101 B and the high side of the Interconnection Customer s transformer.
A drawing identifying the point of interconnection is included in the Single Line drawing as Attachment 2.
Point of Change of Ownership
The Point of Change of Ownership for the Bennett Creek/Hot Springs Project will be the fenceline at the
Point of Interconnection.
General Facility Description
Interconnection Service will be provided at 138 kV for the integration of twenty-four (24) induction
generator wind turbines for Bennett Creek/Hot Springs Windfarm. The project's location is (TS4S , R8E
S23) Elmore County, Idaho. The total project output is 39.6 MW.
Description Ownership Cost
Generation Facilities
Seller to Provide Seller N/A
Interconnection Facilities
Transmission Tap Structure with Disconnects Company $50 000
Deadend Structure Company $50 000
Power Circuit Breaker with Disconnects Company $200 000
Protection , TelemeterinQ and Control Company $75 000
Power Line Carrier Wave Trap and CouplinQ Device Company $50 000
Revenue MeterinQ Company $25 000
Total $450 000
Transmission Network Upgrades (Special Facilities)
Reconductor 11 .5 Miles of 138 kV Transmission Line Company 025 000
Relocation of Mountain Home Junction - Upper Salmon Line Reactor Company $115 000
Increase Size of Mountain Home Junction - Lucky Peak Line Reactor Company $15 000
Total 155 000
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Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28, Tariff No.1 01 _paqe 1 of 1
Attachment 3
Milestones
1lnl\'8
2/31/2007
3/15/2008
3/30/2008
4/1/2008
Design completion
Construction completion
Commissioning completion
Commercial Operation
Transmission Owner s billing for its construction activities will be based upon actual
expenditures.
Agreed to by:
For the Interconnection Customer -
--
Date
For the Transmission Provider ,\ 1\ ,,'
Idaho Power Company, Delivery \!JJ~0\;') Date \J
\ - \ ~ ~
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28, Tariff No.1 01 e 1 of 2
Attachment 4
Additional OperatinG Requirements for the Company s Transmission System and Affected
Systems Needed to Support the Sellers 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.
Security Arrangements Details
Infrastructure security of Transmission System equipment and operations and control hardware and
software is essential to ensure day-to-day Transmission System reliability and operational security. All
Transmission Providers, market participants, and Interconnection Customers interconnected to the
Transmission System will to comply with the recommendations offered by the President's Critical
Infrastructure Protection Board and, eventually, best practice recommendations from the electric
reliability authority. All public utilities will be expected to meet basic standards for system infrastructure
and operational security, including physical, operational , and cyber-security practices.
Reliability Management System
Definitions:
Member: Any party to the WECC Agreement.
Reliability Management System or RMS: The contractual reliability management
program implemented through the WECC Reliability Criteria Agreement , Section 2 of Appendix H
Under Idaho Power Company s Open Access Transmission Tariff ("GATT") FERC Electric Tariff
Revised Volume No.5. 1 and any similar contractual arrangement.
Western Interconnection: The area comprising those states and provinces, or portions
thereof , in Western Canada , Northern Mexico and the Western United States in which Members of the
WECC operate synchronously connected transmission systems.
WECC: The Western Electricity Coordinating Councilor any successor entity.
WECC Agreement: The Western Electricity Coordinating Council Agreement dated
March 20 , 1967, as such may be amended from time to time.
WECC Reliability Criteria Agreement: The Western Electricity Coordinating Council
Reliability Criteria Agreement among the WECC and certain of its member Transmission Providers, as
such may be amended from time to time.
WECC Staff: Those employees of the WECC , including personnel hired by the WECC
on a contract basis , designated as responsible for the administration of the RMS.
Terms and Conditions
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 Interconnection
Customer and Idaho Power Company (Transmission Owner ) shall be required to comply.
Compliance. Interconnection Customer 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, agrees to be subject to any
sanctions applicable to such failure assessed by WECC under its RMS so long as the Interconnection
Customer is solely responsible for the resulting failure. Such sanctions shall be assessed pursuant to
the procedures contained in the WECC Reliability Criteria Agreement. Each and all of the provisions of
1 Idaho Power Company applies the same technical standards to all generators connecting to the electrical
system.
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28. Tariff No. 101 e 2 of 2
the WECC Reliability Criteria Agreement are hereby incorporated by reference into this Attachment 4
as though set forth fully herein, and Interconnection Customer 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
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 and Sanctions. Interconnection Customer shall be responsible for
reimbursing Transmission Owner for any monetary sanctions assessed by WECC against
Transmission Owner due solely to the action or inaction of Interconnection Customer , pursuant to the
WECC Reliability Criteria Agreement. Interconnection Customer also shall be responsible for payment
of any monetary sanction due solely to the action or inaction of Interconnection Customer assessed
against Interconnection Customer 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.
Condition to Effectiveness of Agreement. This Agreement shall be void ab initio
Interconnection Customer is not afforded all rights and privileges to contest any purported violation or
sanctions before WECC, NERC, the Federal Energy Regulatory Commission or any court of competent
jurisdiction , which rights and privileges to contest any violation or sanction would be available to
Transmission Owner if the act(s) constituting the purported violation had been taken by Transmission
Owner.
Publication. Interconnection Customer consents to the release by the WECC of
information related to Interconnection Customer s compliance with this Agreement only in accordance
with the WECC Reliability Criteria Agreement; provided however that no information will be released
until after the final resolution of any dispute or challenge to any alleged compliance violation.
Third Parties. Except for the rights and obligations between the WECC and
Interconnection Customer specified in this Attachment 4, this Agreement creates contractual rights and
obligations solely between the Parties. Nothing in this Agreement shall create, as 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 Attachment 4, of the WECC against Interconnection
Customer, no third party shall have any rights whatsoever with respect to enforcement of any provision
of this Agreement. Transmission Owner and Interconnection Customer expressly intend that the
WECC is a third-party beneficiary to this Attachment 4, and the WECC shall have the right to seek to
enforce against Interconnection Customer any provision of this Attachment 4 provided that specific
performance shall be the sole remedy available to the WECC pursuant to Attachment 4 of this
Agreement, and Interconnection Customer 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 Rights. Nothing in the RMS or the WECC Reliability Criteria Agreement shall
affect the right of Transmission Owner, subject to any necessary regulatory approval, to take such other
measures to maintain reliability, including disconnection, that Transmission Owner may otherwise be
entitled to take.
(Intentionally left blank)
Termination. Interconnection Customer may terminate its obligations pursuant to this
Attachment 4 at any time for any reason upon written notice.
10 Mutual Agreement. This Attachment 4 may be amended or terminated at any time by
mutual agreement of Transmission Owner and Interconnection Customer.
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28. Tariff No. 101 e 10f 2
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.
Interconnection Requirements for a Wind Generating Plant
Technical Standards Applicable to a Wind Generatinq Plant
Low Voltaqe Ride-Throuqh (LVRT) Capability
A wind generating plant shall be able to remain online during voltage disturbances up to the time
periods and associated voltage levels set forth in the standard below.
All wind generating plants must meet the following requirements:
Wind generating plants are required to remain in-service during three-phase faults with normal
clearing (which is a time period of approximately 4 - 9 cycles) and single line to ground faults with
delayed clearing, and subsequent post-fault voltage recovery to pre-fault voltage unless clearing the
fault effectively disconnects the generator from the system. The clearing time requirement for a
three-phase fault will be specific to the wind generating plant substation location, as determined by
and documented by the transmission provider. The maximum clearing time the wind generating plant
shall be required to withstand for a three-phase fault shall be 9 cycles after which, if the fault remains
following the location-specific normal clearing time for three-phase faults, the wind generating plant
may disconnect from the transmission system. A wind generating plant shall remain interconnected
during such a fault on the transmission system for a voltage level as low as zero volts , as measured
at the high voltage side of the wind GSU.
This requirement does not apply to faults that would occur between the wind generator terminals and
the high side of the GSU.
Wind generating plants may be tripped after the fault period if this action is intended as part of a
special protection system.
Wind generating plants may meet the LVRT requirements of this standard by the performance of the
generators or by installing additional equipment
(~,
Static V Ar Compensator) within the wind
generating plant or by a combination of generator performance and additional equipment.
Existing individual generator units that are, or have been , interconnected to the network at the same
location at the effective date of the Appendix G LVRT Standard are exempt from meeting the
Appendix G LVRT Standard for the remaining life of the existing generation equipment. Existing
individual generator units that are replaced are required to meet the Appendix G LVRT Standard.
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28. Tariff No.1 01 e 2 of 2
ii.Power Factor Desiqn Criteria (Reactive Power)
A wind generating plant shall maintain a power factor within the range of 0.95 leading to 0.
lagging, measured at the Point of Interconnection as defined in this agreement, if the Transmission
Provider s System Impact Study shows that such a requirement is necessary to ensure safety or
reliability. The power factor range standard can be met by using, for example , power electronics
designed to supply this level of reactive capability 606 (taking into account any limitations due to
voltage level , real power output, etc.) or fixed and switched capacitors if agreed to by the Transmission
Provider, or a combination of the two. The Interconnection Customer shall not disable power factor
equipment while the wind plant is in operation. Wind plants shall also be able to provide sufficient
dynamic voltage support in lieu of the power system stabilizer and automatic voltage regulation at the
generator excitation system if the System Impact Study shows this to be required for system safety or
reliability.
The System Impact Study demonstrates that the Interconnection Customer may safely and
reliably interconnect, the Generation Facilities associated with the Company s interconnection requests
#186 and 187, with the 138 kV transmission system if such Generation Facilities maintain a power
factor between 0.95 leading to 0.95 lagging at the high voltage side of the 138/34.5 kV transformer at
the Interconnection Point. The Generation Facilities are to implement power factor control regulation
with a unity power factor set point. Idaho Power may direct Interconnection Customer to maintain a set
point other than unity as required by transmission system conditions.
iii.Supervisory Control and Data Acquisition (SCADA) Capability
The wind plant shall provide SCADA capability to transmit data and receive instructions from the
Transmission Provider to protect system reliability. The Transmission Provider and the wind plant
Interconnection Customer shall determine what SCADA information is essential for the proposed wind
plant, taking into account the size of the plant and its characteristics, location, and importance in
maintaining generation resource adequacy and transmission system reliability in its area.
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No.1 01 Paqe 1 of 2
Attachment 6
Company s Description of UpQrades ReQuired to InteQrate the Generation Facilitv 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.
Interconnection Customer Construction Responsibility and Transfer of Ownership
1. Interconnection Facilities:
Interconnection Facilities
Descri tion
Transmission Ta Structure with Disconnects
Deadend Structure
Power Circuit Breaker with Disconnects
Protection , Telemeterin and Control
Power Line Carrier Wave Tra and Cou
Revenue Metering
Estimated Cost
$50 000
$50 000
$200 000
$75 000
$50,000
$25 000
$450 000
2. Network Upgrades
Transmission Network Upgrades (Special Facilities)
Description Owner Estimated Cost
Reconductor 11.5 Miles of 138 kV Transmission Line Company 025 000
Relocation of Mountain Home Junction - Upper Salmon
Line Reactor Company $115 000
Increase Size of Mountain Home Junction - Lucky Peak
Line Reactor Company $15 000
Total 155 000
3. Allocation of Network Upgrade Costs
Interconnection Customer and Idaho Power will share the actual Network Upgrade costs attributable to
the project as follows:(a) 25% of the costs will be provided by Interconnection Customer as a non-refundable
contribution in aid of construction ("CIAC"(b) 25% of the costs will be funded by Idaho Power and included in Idaho Power s rate
base.(c) 50% of the costs will be funded by Interconnection Customer as an advance in aid of
construction ("AIAC") subject to refund as provided in section 4 below. As refunds are made
the refunded amounts will be included in rate base using standard regulatory accounting
principles.
$538 750
$538 750
077 500
Idaho Power Company Generator Interconnection Agreement # 186/187
I.P.C. No. 28 Tariff No. 101 Paqe 2 of 2
4. Repayment of AIAC for Network Upgrades:
Interconnection Customer will be entitled to a cash repayment, in monthly, equal installments , for the
total AIAC amount Interconnection Customer advances to Idaho Power for Network Upgrades
including any tax gross-up or other tax related payments associated with the AIAC for Network
Upgrades. Reimbursement will occur over a term not to exceed ten (10) years after the date the
Interconnection Customer Generation Facilities achieve their Operation Date under the Firm Energy
Sales Agreement ("FESA"
).
Repayments will be made in accordance with Article 11.4 of the Standard
Large Generator Interconnection Agreement, included in the Company s OATT. Payment of such
repayments in any month will be contingent on the FESA being in good standing (no uncured defaults)
and Interconnection Customer s Generating Facility achieving a mechanical availability in that month in
excess of 50%, defined as 100% multiplied by the ratio of (1) the sum of the capacity available to
generate in each hour, over all hours of the month , divided by (2) the installed capacity multiplied by the
number of hours in the month. In computing the mechanical availability, the capacity available in each
hour will not be reduced from the installed capacity, if the reason for the reduction is an event of force
majeure, (as that term is defined in the FESA). Upon request , the Interconnection Customer will
provide the Company with data and information sufficient to allow the Company to determine the
mechanical availability of the Generation Facility.
5. Interest on Refunds
Monthly refund payments on AIAC amounts shall include interest calculated in accordance with the
methodology set forth in FERC regulations at 18 C.R. 35.19a(a)(2)(iii) from the date of any payment
for Network Upgrades through the date on which Interconnection Customer receives repayment