20101005Motion to Approve Generator Interconnection.pdf

DONOVAN E. WALKER
Senior Counsel
dwalkertmidahopower.com
eslDA~POR~
An IDACORP Company
'34
g, \ \ ~ 1\\l~~r\V\;,,¡¿:rC;" C1 -
\f\\\.\\ ,1-~
October 5, 2010
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
P.O. Box 83720
Boise, Idaho 83720-0074
Re: Case No. IPC-E-09-25
IN THE MATTER OF THE APPLICA nON OF IDAHO POWER COMPANY
FOR APPROVAL OF A FIRM ENERGY SALES AGREEMENT FOR THE
SALE AND PURCHASE OFELECTRIC ENERGY BETWEEN IDAHO POWER
COMPANY AND IDAHO WINDS LLC
Dear Ms. Jewell:
Enclosed for filing please find an original and seven (7) copies of Idaho Power
Company's Motion to Approve Generator Interconnection Agreement in the above matter.
Iy yours,Ç(;~
onovan E. Walker
DEW:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
DONOVAN E. WALKER (ISB No. 5921)
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
dwalkercæidahopower.com
Inordstromcæidahopower.com
'¥ f'7".; t
l' .. pu l.. 'H.
2lllß oe i -:) n '"" v'"
Attorneys for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise, Idaho 83702
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MAnER OF THE APPLICATION )
OF IDAHO POWER COMPANY FOR ) CASE NO. IPC-E-09-25
APPROVAL OF A FIRM ENERGY )
SALES AGREEMENT FOR THE SALE ) MOTION TO APPROVE GENERATOR
AND PURCHASE OF ELECTRIC ) INTERCONNECTION AGREEMENT
ENERGY BETWEEN IDAHO POWER )
COMPANY AND IDAHO WINDS LLC. )
)
Idaho Power Company ("Idaho Power" or "Company"), in accordance with RP 052
and RP 201, et seq., hereby moves that the Idaho Public Utilties Commission ("IPUC" or
"Commission") issue an order approving the Generation Interconnection Agreement ("GIA")
between Idaho Winds LLC ("Idaho Winds") and Idaho Power.
This Motion is based on the following:
1. The Commission has the authority and jurisdiction to allocate the costs of
required transmission upgrades necessary to integrate PURPA generation facilties into
Idaho Power's system, either entirely to the PURPA project or by some sharing "formula"
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 1
as was done in Case No. IPC-E-06-21 ("the Cassia case"). The Commission has exclusive
authority and jurisdiction over the interconnection and allocation of interconnection costs
for PURPA Qualifying Facilties ("QF") when an electric utilty is required to interconnect
under 18 C.F.R. § 292.303 of the Federal Energy Regulatory Commission's ("FERC")
PURPA regulations (Le., when the QF's entire output is sold to a regulated utilty). 18
C.F.R. § 292.306. The Commission has such jurisdiction and authority in this case
because the Sawtooth Wind Project is a QF with a Commission-approved Firm Energy
Sales Agreement requiring it to sell its entire output to Idaho Power. See Standardization
of Generator Interconnection Agreements and Procedures, FERC Stats. & Regs. ,- 31,146
(2003) ("Order No. 2003"); and Standardization of Small Generator Interconnection
Agreements and Procedures, FERC Stats. & Regs. ,- 31,180 (2005) (Order No. 2006, p.
135, ,- 516). Under FERC rules, interconnection costs, including all reasonable costs of
connection, switching, metering, transmission, distribution, safety provisions, and
administrative costs caused solely by such QF interconnection, may be assessed by the
IPUC against a QF. 18 C.F.R. §§ 292.306(a), (b); 292.101.7.
2. The Commission has previously approved a Firm Energy Sales Agreement
between Idaho Power and Idaho Winds for its Sawtooth Wind Project ("Facilty") pursuant
to the Public Utilty Regulatory Policies Act of 1978 ("PURPA"). Order No. 30964.
3. Interconnection of the Facilty is provided at 138 kV at an estimated cost to
the Facility of approximately $844,000. The addition of the Sawtooth Wind Facilty requires
substantial network transmission system upgrades at an estimated cost of approximately
$2,176,000. These upgrades include: (1) reconductor 5.6 miles of the Mountain Home
Junction-Upper Salmon 138 kV transmission line from Sailor Creek Tap to Bennett Creek
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 2
Tap; (2) reconductorthe first 2.25 miles ofthe Mountain Home Junction-Upper Salmon 138
kV transmission line; (3) increase the size of the Danskin-Mountain Home Junction 138 kV
transmission line; (4) increase the Danskin 230/138 kV transformer size from 224 MVA to
300 MVA; and (5) install a sectionalizing breaker at the Bennett Creek Wind Plant
substation. The estimated milestone date for construction completion is July 22, 2011. A
copy of the Idaho Winds GIA is attached as Attachment No.1.
4. This GIA is the second instance outside of the Twin Falls queue involving
PURPA generating facilities subject to Idaho Power's Schedule 72 which involve
substantial upgrades to Idaho Power's transmission system. The allocation of costs from
the transmission upgrades for the Facilty was not addressed in Commission Order No.
30414 in Case No. IPC-E-06-21 (the Cassia Gulch Wind Park and Cassia Wind Farm
case, collectively "the Cassia case").
5. The first instance where the Commission authorized a sharing formula of
transmission upgrade costs outside of the Twin Falls queue was in Case Nos. IPC-E-06-34
and IPC-E-06-35, for Hot Springs Windfarm and Bennett Creek W.indfarm, respectively.
These two projects shared the same developer and the interconnection and the same GIA.
The Sawtooth Wind Project wil be interconnected to the same transmission line as the
Bennett Creek and Hot Springs Wind projects and the network transmission upgrades
required wil have a similar impact. Therefore, as a similarly situated project, the parties
believe it appropriate to include in the GIA a cost sharing allocation as defined in the
Cassia case, and subsequently approved by the Commission for the Bennett Creek/Hot
Springs GIA.
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 3
6. In the Cassia case, the Commission approved a settlement which
implemented a cost-sharing arrangement (the "Cassia Formula") under which Idaho Power
wil contribute 25 percent of the cost of the needed transmission upgrades, Cassia wil
make a non-refundable 25 percent contribution in aid-of-construction ("CIAC") to support
the transmission upgrades, and Cassia wil make an advance in aid-of-construction
("AIAC") for the remaining balance of the cost of the upgrades. The AIAC wil be refunded
to Cassia over time if they fully perform their Firm Energy Sales Agreements with Idaho
Power.
7. In Order No. 30414, the Commission concluded that use of the Cassia
Formula was appropriate for the Cassia Wind Farms 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 case to other QF interconnection requests "wil depend on the
specific characteristics of that situation." (Order No. 30414, p. 11.)
8. In the GIA between Idaho Winds and Idaho Power, the parties have agreed
to apply the Cassia Formula to share the costs of the transmission upgrades for the
Sawtooth Wind Project.
9. In concluding that it is appropriate to use the Cassia Formula for sharing
costs of transmission upgrades for the Sawtooth Facility, Idaho Power applied the
Commission's findings and conclusions in Order No. 30414 as follows:
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 4
(1) But for the construction of the Sawtooth Wind Project, Idaho
Power would not have constructed the transmission upgrades
described in Attachment NO.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 of
benefits that the Sawtooth upgrades wil provide to the system
with the level of benefits provided in the Cassia 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's
transmission engineers are of the opinion that the transmission
upgrades identified in Attachment No. 1 wil provide different
benefits than the transmission system benefits the Cassia
upgrades wil provide. Where the Cassia upgrade wil install a
new transformer to interconnect the 230 and 138 kV
transmission systems in the western portion of the Magic
Valley, the improvements contemplated herein wil upgrade
(replace the line conductor) and update (replace poles,
insulators and hardware not capable of supporting the larger
conductor) two older transmission lines and increase the size
of a 230/138 transformer from 224 MVA to 300 MVA. The
required 300 MVA capacity matches several recent
installations across other parts of Idaho Power's system
(Nampa, Locust, and Bowmont) and will match the planned
King transformer installation. Idaho Power gains operational
and maintenance benefits by having the same size
transformers across its system. Previous projects are
responsible for the cost associated with the installation of the
transformer at 224 MVA. Some facilties on the lines
interconnecting the Sawtooth Project may have been providing
service since as early as 1921. The use of the Cassia Formula
is reasonable in this circumstance.
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 5
(3) The Company is also of the opinion that the application of the
Cassia Formula in this case wil maintain the balance between
"the benefits accruing to the customers of the grid with the cost
responsibilty of the QF necessitating the timing and the
construction of the upgrade." (Order No. 30414, p. 11).
(4) Sawtooth, like the QF projects in the Twin Falls queue, wil
displace or defer the need for other or similar generation
projects in the Company's 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 wil 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.
10. Idaho Power requests that the Commission process this Motion by Modified
Procedure in accordance with RP 201, et seq.
11. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
Donovan E. Walker, Senior Counsel
Lisa D. Nordstrom, Lead Counsel
Idaho Power Company
1221 West Idaho Street
P.O. Box 70
Boise, Idaho 83707
dwalkercæidahopower.com
Inordstromcæidahopower.com
Dave Angell
Delivery Planning Manager
Idaho Power Company
1221 West Idaho Street
P.O. Box 70
Boise, Idaho 83707
dangeiicæidahopower.com
CONCLUSION
For the reasons cited herein, Idaho Power respectfully submits that the enclosed
Generator Interconnection Agreement is consistent with Schedule 72, Commission Order
No. 30414, and is in the public interest. The Company hereby requests that the
Commission issue its order: (1) processing this case by Modified Procedure in accordance
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 6
with RP 201, et seq., and (2) approving the Idaho Winds Sawtooth Wind Project Generator
Interconnection Agreement without change or condition.
Respectfully submitted this 5th day of October 2010.
&~
Attorney for Idaho Power Company
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 5th day of October 201 0 I served a true and correct
copy of the MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT
upon the following named parties by the method indicated below, and addressed to the
following:
Commission Staff
Scott Woodbury
Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington Street
Post Offce Box 83720
Boise, Idaho 83720-0074
-- Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
i Email Scott.woodburycæpuc.idaho.gov
Idaho Winds LLC
Ryan McGraw
General Counsel for Idaho Winds LLC
Tracy, California
Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
-- Email rmcæpowerworks.com
¿j~Donovan E. Walker
MOTION TO APPROVE GENERATOR INTERCONNECTION AGREEMENT - 8
BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-09-25
IDAHO POWER COMPANY
..
ATTACHMENT NO.1
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29. Tariff No. 101
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72 (PURPA)
Sawtooth Wind Project
Project # 317
22MW
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29. Tarif No. 101
TABLE OF CONTENTS
RECITALS.............................................................................................................................................1
AGREEMENTS. .............. ........ ........................... ......................... ....... ........ ........................ ...... ....... ...... 1
1. Capitalized Terms...................... ............................................................................. ............. 1
2. Terms and Conditions ..........................................................................................................1
3. This Agreement is not an agreement to purchase Sellets power. ........................ ........... ..... 1
4. Attachments......................................................................................................................... 1
5. ~ffective Date, Term, Termination and Disconnection. ......................................................... 2
5.1 Term of Agreement. ............................................................................................................2
5.2 Termination. .........................................................................................................................2
5.3 TemporarY Disconnection. ..................................................................................................2
6. Assignment Liability, Indemnity, Force majeure, Conseuential Damages and Default. ...... 5
7. Insurance. ............................................................................................................................ 6
8. Miscellaneous.......................................................................................................................7
9. Notices. ..................................................................................................,.............................7
10. Signatures. ...........................................................................................................................8
Attachment 1 .................................................................,....................................................................... 1
Attachment 2 ... ..... ...... .... .... ...... ........ ......... ....................... .............. ............ ........ ....... .............. .............. 1
Attachment 3 ......................................................................................................................................... 1
Attachment 4 ...................................................................................... .................................................., 1
Attachment 5 .........................................................................................................................................1
Attachment 6 ......................................................................................................................................... 1
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29, Tarif No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the _ day of September, 2010 between Idaho Winds, LLC ("Seller" or
"Interconnection Customer") and Idaho Power Company - Delivery ("Company", or "Transmission
Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifes for service under Idaho
Power's Commission--pproved Schedule 72 and any successor schedule.
B. The Generation Faciliy covere by this Agrement is mor particularly describe in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agrement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions undr which the
Seller's Generation Facility wil interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 wil have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agrement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seifer's power.
Purchase of Seller's power and other services that Seifer may require wil be covered under separate
agreements. Nothing in this Agreement is intended to affec any other agrement between the
Company and Seller.
4. Attachments
Attached to this Agrement and included by reference are the following:
Attachment 1 - Description and Costs of the Generation Faciliy, Intercnnection
Facilities, and Metering Equipment.
Attachment 2 - One-line Diagram Depicting the Generation Facility, Intercnnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 - Milestones For Intercnnecng the Generation Facility.
Attachment 4 - Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation FacHity.
Attachment 5 - Reactive Power.
Attachment 6 - Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29, Tarif NQ. 101 Page 2 of 9
5. Effective Date, Term. Termination and Disconnecion.
5.1 Term of Agreement. Unless terminated earlier in accoance with the provisions
of this Agreement, this Agreement shall become effective on the date specifed above and
remain effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Part may terminate this Agrement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facilty will be disconnected fro the Company's transmission/distribution system. The
termination or expiration of this Agreement shall not relieve eithr Part 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.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utiity Practice." Good Utilty Practice means any of
the practices, methods and acts engaged in or approve by a significant portion of the electric
industry during the relevant time peri, or any of the practics, 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 expeted to accmplish the desired result at a reasonable cost consistent with
good business practices, reliabilty, safety and expedition. Good Utiliy Practice is not intended
to be Iímited to the optimum practic, method, or act to the exclusion of all others, but rather to
be acceptable practices, methods, or acts generally accpted in the region. Good Utiliy
Practice includes compliance with WECC or NERC reuirements. Payment of lost revenue
resultng fro temporary disconnection shall be governed by the power purchase agreement.
5.3.1 Emergency Conditions. "Emergency Condition" means a condition or
situation.' (1) that in the judgment of the Part making the claim is imminently likely to
endanger life or property; or (2) that, in the case of the Company, is imminently likely (as
determined in a non-discriminatory manner) to cause a material advers effect on the
security of, or damage to the Company's transmission/distribution system, the
Company's Interconnection Facilties or the equipment of the Company's customers; or
(3) that, in the case of the Seller, is imminently likely (as determined in a non-
discriminatory manner) to cause a material adverse effect on the reliability and securiy
of, or damage to, the Generation Facilty or the Seller's Interconnection Faciliies. Under
Emergncy Conditios, either the Company or the Seller may immeiately suspend
interconnection service and temporarily disconnect the Generation Facilit. The
Company shall notif 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 Facilit. The Seller shall notif the Company promptly when it becomes
aware of an Emergency Conditon that may reasonably be expected to affct the
Company's equipment or service to the Company's customers. To the extent
information is known, the notifcation shall describe the Emergency Condition, the extent
of the damage or deficiency, the expected effect on the operation of both Parties'
faciliies and operations, its anticipated duration, and the necssary cove action.
5.3.2 Routine Maintenance, Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29, Tariff No. 101 Page 30f9
and temporarily disconnect the Generation Facilty from the Company's
transmission/distribution system when necessary for routine maintenance, construction,
and repairs on the Company's transmission/distribution system. The Company will
make a reasonable attempt to contact the Seller prior to exercising its rights to interrpt
interconnection or curtail deliveries from the Seller's Faciliy. Seller understands that in
the case of emergncy 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 interrption, curtailment or reuction of electrical energy deliveries to the
Company. The Copany shall use reasonable efforts to coorinate such reduction or
temporary disconnection with the Seller.
5.3.3 Schedule Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of signffcant Facility
maintenance for that calendar year and the Company and Seller shalf mutually agree as
to the acceptabilit of the proposed schedule. The Parties determination as to the
acceptabmty of the Seller's timetable for scheduled maintenance wil take into
consideration Good Utiliy Practices, Idaho Power system requirements and the Sefler's
preferred schedule. Neither Party shall unreasonably withhold acceptance of the
proposed maintenanc schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, cordinate their resptive transmission/distribution system and
Generation Facilit maintenance schedules such that they ocur simultaneously. Seller
shall provide and maintain adequate protective equipment suffcint to prevent damage
to the Generation Facility and Seller-furnished Intercnnection Facilities. In some cases,
some of Seller's protective relays wil provide back-up protection for Idaho Power's
facilites. In that event, Idaho Power will test such relays annually and Seller will pay the
actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's
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 wrien documentation after the fact explaining the circumstances of
the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utilty Practice, operation of the Seifer's Generation
Facility may cause disruption or deterioration of service to other customers served from
the same electrc system, or if operating the Generation Faciliy could cause damage to
the Company's transmission/distribution system or other affected systems. Supporting
doumentation used to reach the decision to disconnect shall be provided to the Seller
upon reuest. If, after notice, the Seller fails to remedy the advers operating effect
within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notic of such disconnection, unless
the provisions of Arricle 5.3.1 apply.
5.3.7 Modification of the Generation Facilty. The Seller must receive wrtten
authorization from the Company before making any change to the Generation Facilty
that may have a material impact on the safety or reliability of the Company's
transmission/distribution system. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Goo Utiliy Practice. If the Seller makes
such modifcation without the Company's prior wrien authorization, the latter shall have
the right to temporarily disconnect the Generation Facility.
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29, Tarif No. 101 Page 4 of9
5.3.8 Recnection. The Patties shall coperate with each other to restore the
Generation Faciliy, Intercnnection Facilties, ánd the Company's
transmissiondistnbution system to their normal operating state as soon as reasonably
practicable following a tempory disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Goo Utility Practices, shall
minimize voltage fluctuations and maintain volage levels acceptable to Idaho Power.
Idaho Power may, in accordance with Goo Utility Practices, upon one hundred eighty
(180) days' notice to the Seller, change its nominal operating volage level by more than
ten percent (10%) at the Point of Delivery, in which case Seller shalf modif, at Idaho
Powers expense, Sellers equipment as necssary 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 necssary 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 Facilties
necessary or useful to this Agreement, including adeuate and cotinuing access rights
on property of Seller. Seller warrants that it has proured suficient 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 subjet to
Idaho Powers approval and in recordable form.
5.4.2 Use of Public Rights-o-Way. The Parties agree that it is necessary to
avoid the adverse enviromental and operating impacts that would occur as a result of
duplicate electric fines being constructed in close proximity. Therefore, subject to Idaho
Power's compliance with Pararaph 5.4.4, Seifer agrees that should Seller seek and
reive from any local, state or federal governmental body the right to erect, construct
and maintain Seller-furnished Intercnnectin Faciliies upo, 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 riht-of-way for
construction and/or maintenance of electri distribution and transmission facilities and
Idaho Power may claim use of such puMc 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 Selfer for exercising its rights under this Paragraph 5.4.2.
5.4.3 Joint Use of Facilties. Subject to Idaho Powers compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission
facilities to Seller's Intercnnection 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 riht-of-way
acquired from Seller pursuant to Paragraph 5.4.2, attaching Sellers Interconnection
Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4
Idaho Power shalf not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.3.
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
5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good utility
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29. Tariff No. 101 Page 5 019
Practices, (2) equitably share the costs of installng, owning and operating jointly used
facilities and rights-o-way. If the Partes are unable to agre on the method of
apportioning these costs, the dispute will be submitted to the Commission for resolution
and the decision of the Commission will be binding on the Parties, and (3) shall provide
Seller with an intercnnection to Idaho Power's system of equal capacity and durability
as existed prior to Idaho Power exercsing its rights under this Paragraph 5.4.
6. Assignment. Liability, Indemnit. Forc majeure, Consequential Damages and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Part; provided
that:
6.1.1 Either Party may assign this Agreement without the consent of the other
Part to any affliate of the assigning Party with an equal or greater creit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 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 Facilit, provided that the Seller wil promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting
the same financial, creit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liabilit. Each Party's liability to the other Part for any loss, cos,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its perfonnance of this Agreement, shall be limited to the amount of direct
damage actually incurrd. In no event shall either Party be liable to the other Party fo any
indiret, speial, consequential, or punite damages, excet as authorized by this Agrement.
6.3 Indemnit.
6.3.1 This provision proects each Part fro liabiliy incurr to third parries as
a result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liabiliy found in Artcle 6.2.
6.3.2 The Parties shall at all times indemnff, defend, and hold the other Party
harmless frm, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to propert 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 Part's action or failure to
meet its obligations under this Agreement on behalf of the indemnffing Party, except in
cases of gross negligence or intentional wrongdoing by the indemnifd Part.
6.3.3 If an indemnifed persn is entitled to indemnification under this article as
a result of a claim by a third part, and the indemnifying Part fails, after notic and
reasonable opportunit to proced 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 respt to, or pay in full, such claim.
Failure to defend is a Material Breach.
Idaho Power Company Generator Interconnection Agreement # 317
Page 6 of9I.P.U.C. No. 29. Tariff No. 101
6.3.4 If an indemnifing party is obligated to indemnify and hold any
indemnifed person harmless under this article, the amount owing to ttie indemnified
person shall be the amount of such indemnifed person's actual loss, net of any
insurance or other reovery.
6.3.5 Promptly after receipt by an indemnifed person of any claim or notice of
the commencement of any action or administrative or legal proeeing or investigation
as to which the indemnit provided for in this arlicle may apply, the indemnified person
shall notify the indemnifying parly of such fact. Any failure of or delay in such notification
shall be a Matenal Breach and shall not affect a Parly's indemnification obligation unless
such failure or defay is materially prejudicial to the indemnifying part.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Patt is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilites, civil
strie, strikes and other labor disturbances, earlhquakes, fires, lightning. epidemics, sabotage, or
changes in law or regulation occurrng after the Operation Date, which, by the exercise of
reasonable foresight such part could not reasonably have been expected to avoid and by the
exercise of due dilgence, it shall be unable to overcome. If eiter Parly is rendered wholly or in
parl unable to perform its obligations under this Agrement because of an event of Forc
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, providd that:
(1) The non.performing Patt shall, as soon as is reasonably possible after
the occurrnce of the Force Majeure, give the other Part writen notice describing the
particulars of the occurrnce.
(2) The suspension of performance shall be of no greater scpe and of no
longer duration than is reuired by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the. suspension of perfrmance and which could and should have been fully performed
before such occurrnce shall be excused as a result of such ocurrnce.
6.5 Default and Material Breches.
6.5.1 Defaults. If eiter Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default), the nondefaulting Party shall cause
notice in writing to be given to the defaulting Part, specifying the manner in which such
default ocurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after seNice of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Part may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditously as possible following ocurrence of the
breach.
7. Insurance.
Idaho Power Company Generator Interconnecton Agreement # 317
I.P.U.C. No. 29, Tarif No. 101 Page 7 of9
During the term of this Agreement, Seller shall secure and continuously carr the following
insurance coverage:
7.1 Comprehensive General Liability Insurance for both bodily injury and prperty
damage with limits equal to $1,000,000, each occummC8, combined single limit. The deductible
for such insurance shal/ be consistent with currnt Insurance Industry Utility practics for similar
propert.
7.2 The above insurance coverage shall be placed with an insurance company with
an A.M. 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
liabilty reduced without sixty (60) days' prior writen notice to Idaho Power.
7.3 Seller to Provide Certifcate of Insurance. As reuired in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements reuired therein, evidencing the coverage as set forth above.
7.4 Seller to Notify Idaho Power of Loss of Coverage - If the insurance coverage
require by Paragraph 7. 1 shall lapse for any reason, Seller wilt immediately notify Idaho Power
in writing. The notice wil 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 constiute grounds for a temporary discnnection under
Secion 5.3 and will be a Material Breach.
8. Miscllaneus.
8.1 Governing 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
jts conflicts of law prnciples.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
of those Idaho Power fumished Interconnection Facilities as required under Schedule 72 and/or
described in this Agrement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Intercnnection Faciliies will be removed. If Seller elects not to obtain
ownership of the Interconnetion Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirt (30)
days after receipt of the invoice. Seller shall have the right to offset the invoic amount against
any present or future payments due Idaho Power,
9. Notices.
9.1 General. Unless otherwise provide in this Agreement. any written notice.
demand, or request required or authorized in connecion with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currer service.
or sent by first class mail, postage prepaid, to the person specifed below:
If to the Seller:
Idaho Winds LlC
Attention: Mr. Willam Damon, Vice President
Idaho Power Company Generator Interconnecion Agrement # 317
I.P.U.C. No. 29, Tarif No. 101
4255 S. Nickel Creek Place
Meridian, Idaho 83642
Phone: [phone]
Page 8 019
If to the Company:
Idaho Power Company - Delivery
Attention: Grid Operations Manager
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone] Fax: [phone]
9.2 Biling and Payment. Bilings and payments shall be sent to the addresses set
out below:
Idaho Winds LLC
Attention: Mr. Tom Fetzer, Vice President
4255 S. Nickel Creek Place
Meridian, Idaho 83642
Phone: [phone]
Idaho Power Company. Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-047
Phone: [phone] email: asloan(êidahopower.com
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agrement. This person wil also serve as the point of
contact with respect to operatìons and maintenance of the Party's facilities.
Interconnection Customer's Operating Representative:
Idaho Winds LLC
Attention: Mr. Willam Damon, Vice President and CFO
4255 S. Nickel Cree Plac
Meridian, Idaho 8362
Phone: [phone]
Company's Operating Representative:
Company: Idaho Power Company - Delivery
Attention: Outage Coordinator - System Dispatch
1221 W. Idaho Street
Boise Idaho 83702
Phone: [phone] during regular business hours
(after hours 208-368-2826).
9.4 Changes to the Notic Information. Either Part may change this information by
giving fie Business Days wren notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respeive
duly authorized represntatives.
Idaho Powr Company Generaor Interconnecon Agrement # 317
Page 9 019I.P.U.C. No. 29. Tari No. 101
For the Interconnection CustomerName: ~
Mr. ri~esident and CFO
Idaho Winds LLC
Date:
For fl
Oate:
Idaho Power Company Generaor Interconnecton Agreement # 317
I.P.U.C. No. 29, Tariff No. 101 Page 1012
Attachment 1
Description and Costs of the Generation Facility, Intercnnection Facilites and MeteringEquipment '
In this attachment the Generation Faciliy and Intercnnection Faciliies, including Special
Facilities and upgrades, are itemized and identifed as being owned by the Seller or the Company. As
provided in Schedule, 7';, Payment for Intercnnection facilities. the Company will provide a best
estimate- .itemized cost of .its Intercnnection Facilities, including Special Facilites, upgrades and
Metering Equipment.
General Facility Desription
The proposed wind farm will connect to Idaho Power's existing 138 kV #406 transmission line between
Sailor Creek Tap and Sailor Creek Substation (SRCK). The project's location is approximately 2 miles
north of SRCK and 3 miles northwest of Glenns Ferry, Elmore County, Idaho. The total project output
is 22 MW.
Interconnection Point
The Interconnection Point for the Sawtooth Wind Project wil be on the Interconnection Customets side of
the 101B air break switch. A drawìn9 identifing th Interconneion Point is included as Attchment 2.
interconnection Customer's Interconnection Facilties
The Interconnection Customer wil provide. install, own and operate the 34.5kV (delta) - 138kV
(grounded Y) step up bank transformer, to be located in the Interconnection Customer's yard. The
Interconnection Customer wil provide phone service to IPCo's generator interconnect package as
descnbed in Telecommunications below. The Interconnection Customer wil provide 50 kVA
240/120VAC to the IPCo portion of the Interconnection Customer control building.
Other Facilties Provided by Interconnection Customer
Telecommunications
In addition to communicaion circuits that may be needed by the Interconnecon Customer, the
following three communication circuits are required for IPCo's use. These circuits shall be
provided by Interconnection Customer:
1. One POTS circuit (telephone)
2. One data circuit connected to the SCADA RTU. The data circuit type wil be either, (a) a
DDS frame relay circuit, or, (b) a 4-wire voice grade analog data circuit (Qwest VG36) to
IPC's Boise Bench Transmission Station, 2001 East Amit, Boise.
3. One data circuit for Phasor Measurement data. The data circuit type wil be either, (a) a
DDS frame relay circuit, or, (b) a 4-wire voice grade analog data circuit (Qwest VG36) to
¡PC's Boise Bench Transmission Station, 2001 East Amity, Boise.
Propery, Site Work and Station Building
The Interconnection Customer wil provide the land, which is under easment for the Sawtooth Wind
Project. locaed in Elmore Count, Idaho for the IPCo owned interconnection equipment. See attached
General Location drawing for details and dimensions.
The Interconnection Customer wil perform all the grade work, and install fences, gates and grounding
in accordance wih IPCo specifications. This work is more effciently performed at the same time (with
the same contractor) that the Interconnecion Customer yard is graded and prepared. The
Interconnection Customer wil provide IPCo with a geo-tech report for the IPCo yard.
Idaho Power Company Generaor Interconnecon Agreent # 317
Page 2012I.P.V.C. No. 29. Tarif No. 101
Idaho Power Company's Interconnection Facilities
Idaho Power wil install the required interconnecion equipment for the Interconnection Customer's
geneator facilit. The Interconnecion Customér wil provie the land reuired for the instllaton of thi$
equipment. The Interconnection Customer wil provid site prep, ground grid and fece wI gates in
accrdance with IPCo specations for the designated interconnecion site.
IPCO installe equipmen and facilities at the sie includes tranmission line tap strutur, staton dead
end structure, 138 kV breaker, air break swiches. CCVT's, wave traplline tuner and primary metering.
Idaho Power will install protecon, cotrol and comunicaon panels, and a 130 volt batery in a
control building to be provided by the Internnecton Customer. The portion of the yard where the
breaker and air break swches are located wil be fenced off from the Interconnection Customer's
portion of the yard to restrict access to IPCo's portion of the yard. se single line drawing asAttchment 2.
estimated Cos & Ownership
The fOllownylloo faith estimates are providlln 2010 dollars
Generation Facilitis:
l'rovidedby Interconnection Customer
Interconnecton Facilities:
Sawtooth Wind Interconnection Station
Interconnection Customer $N/A
¡Pca
TOTAL
$844~099¡
S84!()
GRA TOTAL . $S44,()
Full payment is required up front in accordance wih the protocols of Secton 9.2, unless payment
arrangements are made in advance with Idaho Power Deliver Finance.
Billng for construction activtie wil be based upon actual expnditures.
Idaho Power Company
I.P.U.C. No. 29. Tarif No. 101
Generaor Inteonneon Agrement # 317
Page 1 of 1
Attachment ~
Milestones (Sawtooth Substtion and Bennett Crek Sectionalizing Breaker):
Constrction funds received by IPCO
Order long lead items (longest lead is meterng CTs - 6 mo)
'Station site prep, grounding, fence completed by Sawtooth
Station constction by IPCo begins
renductor begins
construction complete- ready to
reonductor complete
Agre to by:
For the Interconnecion Customer Dat.J2A/\6
Date rj(/êí 10
For the Transmission Provier
Idaho Power Company, Deivery
Idaho Power Company Generator Interconnection Agreement # 317
I.P.U.C. No. 29. Tariff No. 101 Page 1 012
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Seller's Needs
The Company shall also provide reuirements that must be met by the Seller prior to initating
parallel operation with the Company's Transmission System.
Operating Requirements
The projec is required to comply with the applicable Voltage and Current Distortion Limits found in
IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Hannonic Control in
Electrial Power Systems or any subsequent standards as they may be updated from time to time.
Interconnection Customer will be able to modif power plant facilities on the generator side of the
Interconnection Point with no impact upon the operation of the transmission system whenever the
generation facilties are electrically isolated from the transmission system via the 101 B switch and a
terminal clearance is issued by Idaho Power Company's Grid Operator.
Low Voltage Ride Through
The Sawtooth Wind Projec shall remain interconnected upon the occurrence of a three phase or single
phase to ground fault down to a voltage of zero at locations on Idaho Power's system as close to the
Interconnection Customer's facilties as Idaho Power Company's Bennett Creek Station prior to the
fault being cleared for the minimum times stated below before trpping of-line:
. Three phase fault: Projec 138 kV voltage reduced to 28% with normal clearing that takes up to
9 cycles.
. Single phase to ground fault: Project 138 kV voltage reduced to 40% with delayed clearing that
takes up to 50 cycles.
Ground Faun Equipment
The Interconnection Customer wil install transformer configurations that provide a ground source to the
transmission system.
Commercial Operation Requirements
The Interconnecion Customer wit be granted a reuesed Commercial Operation date only when all
requirements have been met under this GIA and Idaho Power Company's Power Sales Agreement.
Generator Output Limit Control (tiRe-dispatch" or "GOLC'?
The Sawtooth Wind Projec wil be allowed to deliver the net output of 22MW at the Interconnecion
Point subject to reductions directed by Idaho Power Company Grid Operations during transmission
system contingencies until the Generator Output Limit Control ("GOLC") is tested and in operation. The
Interconnecion Customer has elected to be subject to GOLC in order to receive reimbursement for
transmission network upgrades as describe in Attachment 6. Once the Sawtooth Wind Projec is in
operaion. it wil be able to generate up to the rated net output of 22MW subject to GOLC when outages
occur on the following transmission lines.
The following Idaho Power Netork transmission facilities have been identified to be afected by the
addition of the Sawtooth Wind Project. An outage of any of these facilities during high power transfer
conditions may result in overloads on the remaining facilties. Such outages may require the initiation
of Generation Output Limit Control.
Boise Bench - Midpoint 230 KV transmission line
Boise Bench - Ratle Snake 230 KV transmission line
Rattle Snake - Midpoint 230 KV transmission line
Idaho Power Company Generaor Interconnection Agreement # 317
I.P.U.C. No. 29. Tariff No. 101 Page 2 of2
Oram - Midpoint 230 KV transmission line
Hubbard - Oanskin 230 KV transmission line
King 138/230 KV transformer
Oanskin - Mountain Home Junction 138 KV transmission line
Upper Salmon - Mountain Home Junction 138 KV transmission line
Lower Malad - Mountain Home Junction 138 KV transmission line
Upper Salmon - Mountain Home Junction 138 KV line reactor
Lower Malad - Mountain Home Junction 138 KV line reactor
Lucky Peak - Mountain Home Junction 138 KV line reactor
Operations limitations Prior to Completion of Netork Upgrades
The Sawtooth Wind Project generation output wil be limited if the project becomes commercially
operational prior to the completion of netork upgraes on the Upper Salmon - Mountain Home
Junction 138 kV transmission line. The network upgrades include the Idaho Power project to install a
power flow limiting series reactor on the Upper Salmon - Mountain Home Junction 138 kV transmission
line. Idaho Power will provide the Interconnection Customer wih the maximum generation output
capability based on the network upgrade or upgrades that are not in-service at that time. Idaho Power
wil notify Interconnecion Customer when netork upgrades are complete allowing Interconnection
Customer to generate at rated output capacit.
Idaho Power Company Generator Interconnetion Agreement # 317
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Reguirements
Idaho Power will determine the reactive power reuired to be supplied by the Company to the
Seller, based upon information provided by the Seller. The Company wil specify the equipment
required on the Company's system to meet the Facilty's reactive power requirements. These
specifications will include but not be limited to equipment specifcations, equipment locatìon, Company-
provided equipment, Seller provided equipment, and all cots associated with the equipment. design
and installation of the Company-provided equipment. The equipment specifcations and requirements
will become an integral part of this Agreement. The Company-owned equipment wil 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 co wil be included in the calculation of the
Monthly Operation and Maintenance Chargs specified in Schedule 72.
The Sawtooth Wind Project wil operate within a VAr range of +/- 95% power factor over the range of
power output. The Interconnection Customer wil be provided a voltageNAr schedule from Idaho
Power Grid Operations prior to Commercial Operation of the project that wil provide detailed
operational requirements within the VAr limitations.
Idaho Power Company Generaor Intrcnnection Agreent # 317
Page 1 of2I.P.U.C. No. 29. Tanf No. 101
Attachment 6
Company's Description of Special facilities and Upgrades Required to Integrate the Generation
Facilit and Best Estimate of Costs
As provide in Scule 72 this Attachment debes Upgras, Special FacHities, includin
Netwrk Upgrades, and provids an itemized best estmate of th cot of th reuire facilities.
Upgrade
SeconalizJng brker at Bennet Cr & CommunIcation upgrade
The addition of th propse Sawtooth Windarm on th #406 trnsmission line adds a fourth terminal
to thi$ line. The line cannot be adequaely proteced wih this terinal addition. The line wil be split
. tw sens wih the installation of a seonalizing por circuit breaker in the #406 138kv
ion line betwen the Benne Creek Wind Farm (BCW tap and the Sailor Crek Tap. The
BCWF IPCo yard will be expanded to incorporate this breaker, air break switches, CCVT's and wave
trap/tuners. A double bay station dead end and transmission line tap will be required for the "in-and-
out" confiuraton. The protecon and contr panels will be loted in the existing building at BCWF.
This seonaliZing breaker must be place in servce prir to placing th Sawtot Wind Farm inseice.
The ne created line sement from BCWF to Mountain Home Juncn (MNJ1) will require upgrade
to the carrer equipment at MNJ1. This incude replacing the Une tuner and carner, and installng a
new tuning pack in th wave trap.
Transmisson Une Upgrades
Recnductorlrebuild the 410 ACSR 138 kV trnsmission line secon (approximately 5.6 miles) fr
Sailor Creek Tap to Bennett Creek Tap with 397.5 ACSR "IBIS" conductor.
Reconductorlrebuild the 250 MCM CU 138 kV transission fine secon (firs 2.25 mite outide theMountain Home Junction Substaton on the Upper salmon 138 kV line) from Mountain Home Juncton
to "Change 1" on the Upper Salmon Line, wih 397.5 ACSR "IBIS. conductor.
Increas the conductor size of the Danskin-Mountin Home Junction 138 kV trnsmission line from 795
"T ern" to 1272 ACSR "Biter" conductor. Other projects are responsible for the conductor size increase
from the existing 397.5 conductor to 795 "Tern".
Incrase the Danskin 230138 kV Transforer size from 224 MVA to 300 MVA. Previous projec are
responsible for the co assocated with the insllation of the transforer at 224 MV A.
¡TransmisionNet()Tk .ii~gratles:
Reconductor 2.25 miles of the Mountain Home Junction - Upper
¡Salir1()I1138k"'cl4Sl:il()rÇ~ek. Tap to Bennett Creek Tap Hnes
iReconductor the Danskin-Mounta Home Junction 138 kV line
Increase Danskin T232 to 300MV A
Sectionalizing BreakerlkEquipment at Bennett Crek
IPCO
IPCO
IPCO
IPCO
TOTAL
.. $8l 1,()OO,
~167.00()'
~3~8?()()()¡
~8! ()?()()O¡
$~,1 ~§~9(H
Idaho Power Company
I.P.U.C. No. 29. Tari No. 101
Generator Interconnecon Agreent # 317
Paae 2012
1. Allocion of Transmission Netork Upgrade Costs
Interconneon Customer and Idaho Powr will share the acal Netork Upgrade costs atbutble to
the projec as follows:
(a) 25% of the costs wil be provided by Interconnecton Customer as a non-reundable contributon
in aid of construction ("CIAC").
(b) 25% of the costs wil be funded by Idaho Power and included in Idaho Powets rate base.
(c) 500Æi of the cost will be funded by Interconnecion Customer as an advance in aid ofconstruction ("AIAC") subject to refund. As refunds are made the refnded amounts will be
included in rate base using standard regulatory accuntng principles.
Company Costs (25%)
l4on-reimbursable CIAC Costs (25%)
Reimbursble AIAC Costs (50%)
$544,000
$544,000
$1,088,000
2. Repayment of AlAC for Netork Upgrades:
Interconnecion Customer will be entitled to a cash reayment, in monthly, equal installment, for
the totl AIAC amount Interconneon Customr adance to Idaho Pow for Netork Upgrades,
including any ta gross-p or other tax related payments associated with the AIAC for Network
Upgrades. Reimbursment wil occur over a term not to exce ten (10) years after th date th
Interconneon Customer Generation Facilities achieve their Operation Date under the Firm Enegy
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 OATI.
Payment of such repayments in any month wil be contingent on the FESA being in good standing
(no uncured defaults) and Interconnection Customets Generating Facilty achieving a mechanical
availabilit in that month in exce of 50%, defned as 100% multiplied by the raio of (1) the sum of
the capacity available to generate in eah hour, over all hours of the month, divded by (2) th
installed capaci multiplie by the number of hours in the month. In computing the mecanical
availabilit, the capacit available in each hour will not be reduce from the instlle capac, if the
reason for the reducton is an event of force majeure, (as that term is defned in the FESA). Upo
reque, the Interconnecion Customer will provide the Company with data and information suficent
to allo the Company to determine the mechanical availability of the Genration Facilit.
In the event that repayments are not paid to th Interconneion Customer in any mont pursuant to
this Secn 2, future repayments shall continue when the Interconnecion Customer satisie the
provisions of this Secion 2 through the remainder of th ten year ter.
3. Interet on Refunds
Monthly refund paymen on AIAC amount shall include interest calculated in accanc with the
metodology set foh in FERC regulations at 18 C.F.R. 35.19a(a)(2)(iii) from the date of any
payment for Netrk Upgrades through the date on which Intercnneion Customer recivs
payment.