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HomeMy WebLinkAbout20110711Application.pdfECEi'/enR .. ..\1 r:.~ 4: 42 '1IDA~POR~ An 10ACORP Company DONOVAN E. WALKER Lead Counsel dwalker(ëidahopower.com July 8,2011 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-11-14 IN THE MATTER OF IDAHO POWER COMPANY'S PETITION FOR DECLARATORY ORDER REGARDING PURPA JURISDICTION Dear Ms. Jewell: Enclosed for filing please find an original and seven (7) copies of Idaho Power Company's Petition for Declaratory Order in the above matter. Donovan E. Walker DEW:csb Enclosures 1221 W. Idaho St. (83702) P.O. Box 70 Boise, 10 83707 DONOVAN E. WALKER (ISB No. 5921) JASON B. WILLIAMS Idaho Power Company 1221 West Idaho Street (83702) P.O. Box 70 Boise, Idaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker((idahopower.com jwilliams((idahopower.com RECEIVED lOl I JUl -8 PH 4: 42 Attorneys for Idaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S PETITION FOR ) CASE NO.IPC-E-11-14 DECLARATORY ORDER REGARDING ) PURPA JURISDICTION. ) PETITION FOR DECLARATORY ) ORDER ) Idaho Power Company ("Idaho Powet' or "Company"), pursuant to RP 101, hereby petitions the Idaho Public Utilities Commission ("IPUC" or "Commission") to issue an Order determining that the Commission wil exercise its jurisdiction over the proposed Public Utilty Regulatory Policies Act of 1978 ("PURPA") Qualifying Facilty ("QF") transactions proposed by Western Desert Energy 1, LLC ("Western Desert") and Tumbleweed Energy II, LLC ("Tumbleweed"). In support of this request, Idaho Power states as follows: I. BACKGROUND A. Tumbleweed Energy U. LLC. Tumbleweed is a proposed 10 megawatt ("MW") wind QF project located in Elmore County, Idaho. On June 24, 2011, Tumbleweed hand delivered to Idaho Power PETITION FOR DECLARATORY ORDER - 1 three documents: (1) June 23, 2011, letter to Donovan Walker from Pete Richardson, attached hereto as Attachment No.1; (2) June 24, 2011, letter to Idaho Power Company Cogeneration and Small Power Production from Richard Hansen, attached hereto as Attachment No.2; and (3) June 24, 2011, letter to Manager Grid Operations Idaho Power Company from Richard Hansen, attached hereto as Attachment No.3. With Attachment No.1, Tumbleweed simply forwarded to Idaho Power a copy of FERC Form 556, which is the Certification of QF Status for a Small Power Production or Cogeneration Facilty. Attachment No.2 is a request to Idaho Power for a PURPA QF contract in the state of Oregon, more specifically, for an Energy Sales Agreement pursuant to the Public Utility Commission of Oregon's rate Schedule 85-4. Attachment No. 3 is a request to Idaho Power for "Firm Point-to-Point Transmission Service" for 10 MW of capacity from its interconnection with Idaho Power in the state of Idaho for delivery to "Idaho Power's Oregon jurisdiction." Idaho Power responded to both the request for an Oregon Energy Sales Agreement and the request for point-to-point transmission from the project's Idaho interconnection to Idaho Power's Oregon service territory with July 8, 2011, letters stating that both requests were received, but are invalid. See Attachment No.4, July 8, 2011, letter from Donovan E. Walker regarding the request for an Oregon Energy Sales Agreement and July 8, 2011, letter from Beth Ryan regarding the request for point-to- point transmission. B. Western Desert Energy 1. LLC. Western Desert is a proposed 5 MW wind QF project located in Owyhee County, Idaho. It is the same proposed project as that which was the subject of Commission PETITION FOR DECLARATORY ORDER - 2 Case No. IPC-E-11-01. In that case, Western Desert and Idaho Power executed a PURPA Firm Energy Sales Agreement containing published avoided cost rates for PURPA QFs up to 10 average megawatts ("aMW"). That contract was disapproved by the Commission as it exceeded the 1 00 kilowatt ("kW") published rate eligibilty cap for QF wind projects. Order No. 32258 (June 8, 2011). On June 27, 2011, Western Desert hand delivered to Idaho Power three documents: (1) June 27, 2011, letter to Donovan Walker from Pete Richardson, attached hereto as Attachment No.5; (2) June 24, 2011, letter to Idaho Power Company Cogeneration and Small Power Production from Sandy Sanderson, attached hereto as Attachment No.6; and (3) June 27, 2011, letter to Manager Grid Operations Idaho Power Company from Sandy Sanderson, attached hereto as Attachment NO.7. With Attachment NO.5, Western Desert simply forwarded to Idaho Power a copy of FERC Form 556, which is the Certification of QF Status for a Small Power Production or Cogeneration Facilty. Attachment No. 6 is a request to Idaho Power for a PURPA QF contract in the state of Oregon, more specifically, for an Energy Sales Agreement pursuant to the Public Utilty Commission of Oregon's rate Schedule 85-4. Attachment No. 7 is a request to Idaho Power for "Firm Point-to-Point Transmission Service" for 10 MW of capacity from its interconnection with Idaho Power in the state of Idaho for delivery to "Idaho Powets Oregon jurisdiction." Idaho Power responded to both the request for an Oregon Ener"gy Sales Agreement and the request for point-to-point transmission from the project's Idaho interconnection to Idaho Powets Oregon service territory with July 8, 2011, letters stating that both requests were received, but are invalid. See Attachment NO.8, July 8, PETITION FOR DECLARATORY ORDER - 3 2011, letter from Donovan E. Walker regarding the request for an Oregon Energy Sales Agreement and July 8, 2011, letter from Beth Ryan regarding the request for point-to- point transmission. C. Avoided Cost Rates in Idaho and Oregon. In Idaho, the avoided cost rate that a QF project receives in a PURPA power sales agreement is determined by the size of the QF generator. A QF is entitled to either the published avoided cost rate, which is based upon the Surrogate Avoidable Resource ("SAR") avoided cost methodology with the surrogate avoided resource being a natural gas-fired combined-cycle combustion turbine, or a negotiated rate which is based upon the Integrated Resource Plan ("IRP")-based avoided cost methodology using the AURORA power supply modeling program. The Commission has recently determined that the published rate eligibility cap for wind and solar QFs is 100 kW and 10 aMW for all other QFs. Order No. 32262, Order No. 32176, and Order No. 32212. Consequently, any wind and solar QFs over 100 kW are only eligible for avoided cost rates in their PURPA power sales agreements determined pursuant to the IRP methodology. In Oregon, the avoided cost rate that a QF project receives in a PURPA power sales agreement is similarly determined by the size of the QF generator. Similar to Idaho, there are two avoided cost calculations: (1) the SAR methodology based upon the cost of a natural gas-fired combined-cycle combustion turbine or (2) the IRP methodology based upon AURORA modeling. However, the eligibility for published rates is determined differently. Currently, QFs with a nameplate capacity of 10 MW or PETITION FOR DECLARATORY ORDER - 4 lass are eligible for a standard contract with SAR-based published rates 1. All QFs with a nameplate capacity greater then 10 MW are eligible for a negotiated, non-standard contract with IRP-based avoided cost rates. See Attachment NO.9, Idaho Powets Oregon Tariff Schedule 85, Cogeneration and Small Power Production Standard Contract Rates (March 1,2010). II. DISCUSSION The Commission has addressed the issue of QF projects proposing to wheel power across state lines, and has given clear direction as to which state's PURPA rules wil apply to such transactions. Earth Power Energy and Minerals, Inc. VS. Idaho Power Company, Case No. IPC-E-92-29, Order Nos. 25174, 25249 (1993); Island Power Company, Inc. vs. PacifiCorp, dba Utah Power & Light Company, Case No. UPL-E-93- 4, Order Nos. 25245 (1993), 25528 (1994); Vaagen Bros. Lumber, Inc. VS. The Washington Water Power Company, Case No. WWP-E-94-6, Order No. 25176 (1994). The Commission has established that it has federally derived jurisdiction pursuant to PURPA over any utility that it has ratemaking authority over. Order No. 25245 p. 5; Order No. 25174 p. 6-7. Additionally, the Commission has stated that this federally derived jurisdiction over a multi-state utility may exist concurrently with other state regulatory authorities that also have ratemaking authority over the utilty. Order No. 25249 p. 2. Through the cases cited above, the Commission has discussed certain circumstances where it determines whether it wil elect to exercise that jurisdiction or not. What necessarily follows the Commission's exercise, or deferral, of its jurisdiction is whether the Idaho Commission's PURPA rules, regulations, and procedures - 1 In Oregon Docket No. UM 1396, Idaho Power has asked that it be authorized to establish its avoided cost for PURPA QFs in Oregon using the IRP-based methodology, similar to its Idaho jurisdiction. This docket is stil pending. PETITION FOR DECLARATORY ORDER - 5 including which states avoided cost rates and contract - wil apply to the proposed QF transaction. The Earth Power case, IPC-E-92-29, Order Nos. 25174 and 25249, concerned a proposed QF project located in the state of Nevada, with a proposed interconnection to Idaho Powets system in the state of Nevada, attempting to enter into a PURPA contract with Idaho Power pursuant to the Idaho Commission's rules, regulations, and rates for PURPA QFs. Order No. 25174, p. 1. At that time, Idaho Power had retail electric service territory in both the state of Idaho and Nevada, and was under the regulatory jurisdiction of both the Idaho and Nevada Commissions. Id. The Idaho Commission stated that it had concurrent jurisdiction with the Nevada Commission. Id. The Commission discussed that its PURPA jurisdiction is derived from federal law, which is not bounded by geographic limits. Id. at pp. 6-7. The Commission also referenced the series of four different Idaho Supreme Court Afton Energy cases as support for its decision. Id. at p. 7, citing Afton Energy, Inc., v. Idaho Power Co., 107 Idaho 781, 693 P.2d 427 (1984); 111 Idaho 925, 729 P.2d 400 (1986); 114 Idaho 852, 761 P.2d 1204 (1988); 122 Idaho 333, 834, P.2d 850 (1992). Noting Afton's location in the state of Wyoming, the Commission stated: The circumstances were different in Afton as compared to Earth Power because Idaho Power Company did not have a service territory in Wyoming that was regulated by the Wyoming Public Service Commission. Therefore, the Wyoming Commission did not have the jurisdiction conferred by PURPA. This distinction does not relate to the question whether we have jurisdiction. However, it did mean that there could be no issue of whether we should exercise our jurisdiction in that case. PETITION FOR DECLARATORY ORDER - 6 Both parties agree, and we concur, that the Nevada Public Service Commission has jurisdiction concurrent with ours to determine the rates for the Earth Power project and to resolve disputes between the parties. Our record shows that the Nevada PSC is actively asserting its jurisdiction. In this circumstance, when a project is located within another state and when the commission in that state is exercising the jurisdiction conferred upon it by PURPA, we find that we should decline to assert our jurisdiction. In circumstances such as these we wil assert our jurisdiction only if the commission of the other state declined for some reason to exercise its jurisdiction. We also emphasize that we wil not be a forum for relitigation of issues ultimately decided by the Nevada PSC. We wil not entertain requests that we second-guess the decision of another commission. Id. at pp. 7-8 (emphasis in original). Because the Nevada Commission was actively asserting its PURPA jurisdiction, the Idaho Commission initially declined to exercise such jurisdiction and deferred to the Nevada Commission. Id. Upon the Nevada Commission's subsequent dismissal of Earth Powets pending case before it and its deferral to the Idaho Commission, Idaho chose to then exercise its jurisdiction. Order No. 25249, pp. 4-5. The Island Power case, UPL-E-93-4, Order Nos. 25245 and 25528, concerned a Montana QF proposing to sell its output to PacifiCorp ("UP&L") pursuant to the Idaho Commission's rules, regulations, and rates for PURPA QFs. Order No. 25245, p. 1. Similar to the facts in Earth Power, UP&L had retail electric service territory in both the state of Montana and Idaho, and was under the regulatory jurisdiction of both the Idaho and Montana Commissions. Id. However, unlike Earth Power, Island Power did not interconnect with UP&L in the state of Montana, but instead proposed to wheel its output from Montana to either the Jefferson or Goshen substations, and make delivery to UP&L's system inside the state of Idaho. Id. The Idaho Commission found that it PETITION FOR DECLARATORY ORDER - 7 had jurisdiction, and under these facts, that it would exercise such jurisdiction to require UP&L to contract with the QF pursuant to Idaho rules, regulations, and rates. Id. at p. 5. The Commission stated that it found it reasonable to exercise its jurisdiction in this matter because, although the project is sited in Montana, the proposed point of delivery to UP&L is in Idaho where the Idaho Commission has established avoided cost rates for UP&L. Id. The Vaagen Brothers case, WWP-E-94-6, concerned a QF project located in the state of Washington, with an interconnection to Washington Water Power ("WWP") in the state of Washington. Order No. 25716, p. 1. Vaagen Brothers had a 1979 power sales agreement with WWP that had expired in 1994. Id. Vaagen Brothers filed a complaint with the Idaho Commission seeking a new contract with WWP pursuant to the Idaho avoided cost methodology and rates. Id. WWP had retail electric service territory in both the states of Washington and Idaho, and was under the regulatory jurisdiction of both the Idaho and Washington Commissions. Id. at pp. 6-7. Under the facts of this case, the Commission found that it had concurrent jurisdiction with Washington, but that it would decline to exercise such jurisdiction and defer to Washington, and thus the project must contract pursuant Washington's PURPA rules, rates, and regulations. Id. The Commission distinguished this case from the Earth Power and Island Power cases stating, "Vaagen is an existing facilty sited in the Washington service territory of the utilty that it wishes to sell to, the Washington Water Power Company. The established point of delivery is in the state of Washington." Id. at p. 6. The Commission further stated that the Washington Commission had established a regulatory framework for PURPA in Washington, and that although Idaho did have concurrent jurisdiction with the PETITION FOR DECLARATORY ORDER - 8 Washington Commission, "common sense dictates that there are some instances when we should elect not to exercise our jurisdiction." Id. at pp. 6-7. Here, both Tumbleweed and Western Desert are PURPA QF projects located in the state of Idaho. Both proposed projects have interconnections with Idaho Power's system in the state of Idaho. It naturally follows that a QF power sales agreement between the projects and Idaho Power would be governed and controlled and entered into pursuant to the Idaho Commission's rules, regulations, and rates for Idaho. Although the cases in which the Commission has addressed similar factual scenarios all deal with QF projects located outside the state of Idaho, trying to obtain PURPA contracts pursuant to Idaho's rules and rates, the principles and rules set forth by the Commission apply equally as strong to the factual situation here, where an Idaho QF is attempting to "cherr pick" a different jurisdiction's rates for its QF project in Idaho. The facts of this case are most closely related to those in Vaagen Brothers, Case No. WWP-E-94-6. Just as the Commission found that "common sense dictates" that the Vaagen Brothers project should be required to contract with Avista pursuant to Washington's QF rates and rules, common sense dictates that an Idaho QF, with an Idaho interconnect, seeking a contract with an Idaho utilty should be under Idaho's rates and rules. More specifically, in Vaagen Brothers, the QF was located in Washington, it interconnected with Avista in Washington, and Avista provides retail electric service in Washington and is regulated by the Washington Commission. Moreover, the Washington Commission has a regulatory framework for PURPA QF projects for Avista in Washington. This was an obvious choice for the Idaho PETITION FOR DECLARATORY ORDER - 9 Commission to decline to exercise its jurisdiction and to require the QF to contract with Avista, not pursuant to Idaho rates and regulations, but pursuant to Washington's. Similarly, with both Tumbleweed and Western Desert, the QF is located in the state of Idaho, they interconnect with Idaho Power in the state of Idaho, and Idaho Power provides retail electric service in Idaho and is regulated by the Idaho Commission. Obviously, the Idaho Commission has a regulatory framework for PURPA QF projects for Idaho Power in Idaho. Just like the obvious choice in Vaagen Brothers, common sense dictates that Tumbleweed and Western Desert must contract with Idaho Power under the Idaho Commission's PURPA rates, rules, and regulations. Additionally, both proposed projects exceed the Commission's 100 kW eligibilty cap for receiving published avoided cost rates in the state of Idaho. Consequently, these proposed projects must negotiate a PURPA QF power sales contract pursuant to Idaho's approved IRP-based avoided cost methodology. Despite the fact that Western Desert and Idaho Power actually entered into an Idaho QF power sales agreement for this project, and although both projects have contacted Idaho Power and had discussions with Idaho Power about entering into an Idaho QF power sales agreement, neither project has requested IRP-based pricing from Idaho Power. As stated above, Western Desert's previously executed contract with Idaho Power contained published avoided cost rates for projects up to 10 aMW, which was disapproved by the Commission as containing the incorrect avoided cost rates. Rather than request IRP pricing based contracts with Idaho Power, these projects instead submit this veiled attempt to seek the same published rate SAR-based contracts that they are ineligible for in Idaho by concocting a scheme to attempt delivery to Idaho Power in its Oregon PETITION FOR DECLARATORY ORDER - 10 service territory, from Idaho Powets Idaho service territory, entirely over Idaho Powets own system. This is a blatant attempt to manipulate and avoid the Idaho Commission's rates, rules, and regulations that are designed to implement PURPA and protect Idaho Power's customers. This is an example, just as argued by Idaho Power in Case No. GNR-E-10-04 and Case No. GNR-E-11-01, of how QF projects will seek to manipulate and game the system, and go to creative and great lengths to do so, when there is a perceived economic incentive driving them. The Commission recognized this incentive to manipulate and game the system when it ordered the continued application of the 100 kW published rate eligibility cap for wind and solar QFs: Based upon the record in this case and after careful consideration of the positions presented, the Commission finds it appropriate to maintain the 100 kW eligibilty cap for published avoided cost rate for wind and solar QFs. We find that any attempt to implement criteria in an effort to prevent disaggregation would be met by attempts to circumvent such criteria. The economic incentive for the projects is obvious. QF developers are working within the current structure provided by this Commission. However, we emphasize that PURPA and our published rate structure were never intended to promote large scale wind and solar development to the detriment of utilty customers. Avoided cost rates are to be just and reasonable to the utilty's ratepayers. 18 C.F.R. § 292.304(a)(1). PURPA entitles QFs to a rate equivalent to the utilty's avoided cost, a rate that holds utilty customers harmless - not a rate at which a project may be viable. 18 C.F.R. § 292.304(a)(2). If we allow the current trend to continue, customers may be forced to pay for resources at an inflated rate and, potentially, before the energy is actually needed by the utility to serve its customers. This is clearly not in the public interest. Case No. GNR-E-11-01, Order No. 32262, p. 8. The Commission in exercising its jurisdiction in these matters wil preserve and protect the public interest that its recent Orders regarding the published rate eligibilty cap are aimed at upholding. PETITION FOR DECLARATORY ORDER - 11 II. CONCLUSION Idaho Power respectfully requests that the Commission issue a Declaratory Order finding that under the facts of these two proposed PURA QF transactions, the Idaho Commission wil exercise its jurisdiction in implementing PURPA regulations and require that such transactions be conducted pursuant to Idaho's PURPA rules, rates, and regulations. More specifically, Idaho Power requests findings by the Commission stating that a QF located in Idaho Powets service territory in the state of Idaho, interconnecting with Idaho Power's system in the state of Idaho, must contract with Idaho Power pursuant to the Idaho Commission's PURPA rules, rates, and regulations. Such a QF project cannot avoid the application of Idaho's rates, rules, and regulations by proposing to wheel its power across Idaho Power's system purportedly to make a delivery back to Idaho Power in Idaho Powets Oregon service territory, and demand different PURPA rates, rules, and regulations established by the Oregon Commission. To allow such a circumstance to take place would allow a gross manipulation and avoidance of the Idaho Commission's rules and regulations designed and implemented to protect the customers of Idaho Power and the public interest. Respectfully submitted at Boise, Idaho, this 8th day of July 2011. ¿(t! PETITION FOR DECLARATORY ORDER - 12 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 8th day of July 2011 I served a true and correct copy of the within and foregoing PETITION FOR DECLARATORY ORDER upon the following named parties by the method indicated below, and addressed to the following: Sandy Sanderson, Consultant Western Desert Energy 1, LLC 1770 West State Street #317 Boise, Idaho 83702 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email sandycægreenenergywest.com Richard Hansen, Manager Tumbleweed Energy II, LLC 7154 W. State Street #330 Boise, Idaho 83714 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email engrwevrcæhotmail.com Peter J. Richardson RICHARDSON & O'LEARY, PLLC 515 North 2th Street P.O. Box 7218 Boise, Idaho 83702 Hand Delivered -- U.S. Mail _ Overnight Mail FAX -- Email petercærichardsonandoleary.com &r¿(cL PETITION FOR DECLARATORY ORDER - 13 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.1 \I 'U\ nCIù d. l , , ()e\~ irv æ il æ 0 íl æ ~ ti JUN 24 2011 W By .06 ~~~JNf &:((II~:JS~~ PUATTORNEYS AT LAW Peter Richardson Tel: 208-938-7901 Fax: 208-938-7904 pete rli richardson and olea ry. co m P.O. Box 7218 Boise, ID 83707 - 515 N. 27th St. Boise, ID 83702 June 23, 2011 Donovan Walker Idaho Power Company 1221 West Idaho Street Boise, Idaho Via hand delivery Re: FERC Form 556 - Tumbleweed Energy Dear Donovan: Enclosed please find a competed FERC Form 556 for the Tumbleweed Wind Energy project located in Elmore County, Idaho. This form is being provided to you pursuat to FERC's rules that require a copy be provided to all utilties with which the filing QF will interconnect and/or transact. Idaho Power will provide both services to Tumbleweed. Please feel free to give me a call if you have any questions. Since~~:dJ .~6!~/~ . Pete Richardson Attorney for Tumbleweed Energy Form 556 FEDERAL ENERGY REGULATORY COMMISSION WASHINGTONt DC Certification of Qualifying Facility (OF) Status for a Small Power Production or Cogeneration Facilty OMB Control # 1902-075 Expiration 5/31/2013 General Questions about completing this form should be sent to Form556Leferc.gov. Information about the Commission's QF program, answers to frequently asked questions about QF requirements or completing this form, and contact information for QF program staff are available at the Commission's QF website, ww.ferc.gov/QF. The Commission's QF website also provides links to the Commission's QF regulations (18 C.F.R. § 131.80 and Part 292), as well as other statues and orders pertaining to the Commission's QF program. Who Must File Any applicant seeking QF status or recertification of QF status for a generating facilty with a net power production capacity (as determined in lines 7a through 7g below) greater than 1000 kW must file a self-certifcation or an application for Commission certifcation of QF sttus, which includes a properly completed Form 556. Any applicant seeking QF status for a generating facilit wit a net power production capacity 1000 kW or less is exempt from the certification requirement, and is therefore not required to complete or file a Form 556. See 18 C.F.R. § 292.203. How to Complete the Form 556 This form is intended to be completed by responding to the items in the order they are presented, according to the instructions given. If you need to back-track, you may need to clear certain responses before you wil be allowed to change other responses made previously in the form. If you experience problems, click on the nearest help button (.) for assistance, or contact Commission staff at Form556eferc.gov. Certain lines in this form wil be automatically calculated based on responses to previous lines, with the relevant formulas shown. You must respond to all ofthe previous lines within a section before the results of an automatically calculated field wil be displayed. If you disagree with the results of any automatic calculation on this form, contact Commission staff at Form55ó(áercgoy to discuss the discrepancy before filing. You must complete aU lines in this form unless instructed otherwise. Do not alter this form or save this form in a different format Incomplete or altered forms, or forms saved in formats other than PDF, wil be rejeced. How to File a Completed Form 556 Applicants are required to file their Form 556 electronically through the Commission's eFiling website (see instructions on page 2). By filing eleconically, you wil reduce your filing burden, save paper resources, save postage or courier charges, help keep Commission expenses to a minimum, and receive a much faster confirmation (via an email containing the docket number assigned to your facilit) that the Commission has received your filing. If you are simultaneously filing both a waiver request and a Form 556 as part of an application for Commission certifcation, see the 'Waiver Requests" secion on page 3 for more information on how to file. Paperwork Reduction Act Notice This form is approved by the Ofce of Management and Budget (OMB Control No. 1902-0075, expiration 05/31/2013). Compliance with the information requirements established by the FERC Form No. 556 is required to obtain or maintain status as a QF. See 18 C.F.R. § 131.80 and Part 292. An agency may not conduct or sponsor, and a person is not required to respond to, a collecion of information unless it displays a currently valid OMB control number. The estimated burden for completing the FERC Form No. 556, including gathering and reporting information, is as follows: 3 hours for self-certifcation of a small power production facilty, 8 hours for self-certifcations of a cogeneration facilty, 6 hours for an application for Commission certification of a small power production facilit, and 50 hours for an application for Commission certification of a cogeneration facility. Send comments regarding this burden estimate or any aspect of this collection of information, including suggestions for reducing this burden, to the following: Information Clearance Ofcer, Ofce of the Executive Direcor (ED-32), Federal Energy Regulatory Commission, 888 First Street N.E., Washington, DC 20426; and Desk Ofcer for FERC, Ofce of Information and Regulatory Affairs, Offce of Management and Budget, Washington, DC 20503 (oira submissioneomb.eop.gov). Include the Control No. 1902-0075 in any correspondence. FERC Form 556 Page 2 - Instructions Electronic Filng (eFilng) To elecronically file your Form 556, visit the Commission's QF website at ww,ferc.govIQF and click the eFilng link. If you are eFiling your first document, you wil need to register with your name, email address, mailng address, and phone number. If you are registering on behalf of an employer, then you wil also need to provide the employer name, alternate contact name, alternate contact phone number and and alternate contact emaiL. Once you are registered, log in to eFilng with your registered email address and the password that you created at registration. Follow the instructions. When prompted, selec one of the following QF-related.filing types, as appropriate, from the Electric or General filing category. Filng category Filng Type as listed in eFilng Description Use to submit an application for (Fee) Application for Commission Cert. as Cogeneration QF Commission certificàtion or Commission recertification of a cogeneration facility as a QF. Use to submit an application for Commission certifcation or (Fee) Application for Commission Cert. as Small Power QF Commission recertifcation of a small power production facilty as a QF. Use to submit a notice of self- Self-eertification Notice (QF, EG, Fq certifcation of your facilty (cogeneration or small power production) as a QF. Electric Use to submit a notice of self- Self-Recertification of Qualifying Facility (QF) recertification of your facility (cogeneration or small power production) as a QF. Use to correc or supplement a Form 556 that was submited with errors or omissions, or for which Commission staff has requested additional information. Do not use Supplemental Information or Request this filing type to report new changes to a facilty or its ownership; rather, use a self- recertifcation or Commission recertification to report such changes. Use to submit a petition for declaratory order granting a waiver of Commission QF regulations pursuant to 18 C.F.R. §§ 292.204(a) General (Fee) Petition for Declaratory Order (not under FPA Part 1)(3) and/or 292.205(c). A Form 556 is not required for a petition for declaratory order unless Commission recertification is being requested as part of the petition. You wil be prompted to submit your filing fee, if applicable, during the electronic submission process. Filing fees can be paid via electronic bank account debit or credit card. During the eFilng process, you wil be prompted to selec your file(s) for upload from your computer. FERC Form 556 Page 3 - Instructions Filng Fee NQ filing fee is required if you are submiting a self-eertification or self-recertification of your facility as a QF pursuant to 18 C.F.R. § 292.207(a). A filing fee is required if you are filing either of the following: (1) an appUcation for COmmission certification or recertification of your facilty as a QF pursuant to 18 C.F.R. § 292.207(b), or (2) a petition for declaratory order granting waiver pursuant to 18 C.F.R. §§ 292.204(aH3) and/or 292.205(c). The current fees for applications for Commission certifcations and petitions for declaratory order can be found by visiting the Commission's QF website at ww.ferc.govIOF and clicking the Fee Schedule link. You wil be prompted to submit your filing fee, if applicable, during the elecronic filing process desribed on page 2. Required Notice to Utilties and State Regulatory Authorities Pursuant to 18 C.F.R § 292.207(aHii), you must provide a copy of your self-eertification or request for Commission certification to the utilties with which the facilty wil interconnec and/or transact as well as to the State regulatory authorities of the states in which your facility and those utilties reside. Links to information about the regulatory authorities in various states can be found by visiting the Commission's QF website at wwJerc.govlOf and clicking the Notice Requirements link. What to Expect From the Commission After You File An applitantfiling a Form 556 electronically will receive an email message àcknowledging receipt of the filing and showng the dockèt number assigned to the filing. Such email is typically sent Within one bUsiness day, but may be delayed pending confirmation by the Secreary of the Commission of the contents of the filing. An applicant submitting a self-certification of QF status should expec to receive no documents from the Commission, other than the elecronic acknowledgement of receipt described above. Consistent with its name, a self-eertification is a certiftion by the appJicant ittelfthatthefaciJity meets the relevant requirements for QF status, and does not involve a determination by the Commission as to the status of the facilty. An acknowledgement of receipt of a self-eertifcation, in particular, does not represent a determination by the Commission with regard to the QF status of the failty. An applicant self-eertifingmay, hQwever, recE!ive a rejection, revocation or defciency letter if its appJic;tion is found, during periodic compliance reviews, not to comply with the relevant requirements. An applicant submiting a request for Commission certification wil receive an order either granting or denying certification of QF status, or a letter requesting additional information or rejecing the application. Pursuant to 18 C.F.R. § 292.207(b)(3), the Commission must act on an application for Commission certifcation within 90 days of the later of the filing date of the application or the filing date of a supplement, amendment or other change to the application. Waiver Requests 18 C.F.R. § 292.204(aH3) allows an applicant to request a waiver to modify the method of calculation pursuant to 18 C.F.R. § 292.204(aH2) to dètermine if two facilities are considered to be located at the same site, for 990Q cause. 18 C.F.R. § 292.205(c) allows an applicant to request waiver of the requirements of 18 C.F.R §§ 292.205(a) and (b) for operating and efciency upon a showing that the facility wil produce signifcant energy savings. A request for waiver of these requirements must be submitted as a petition for declaratory order, with the appropriate filing fee for a petition for declaratory order. Applicants requesting Commission recertification as part of a request for waiver of one of these requirements should eleconically submit their completed Form 556 along with their petition for declaratory order, rather than filing their Form 556 as a separate request for Commission recertification. Only the filing fee for the petition for declaratory order must be paid to cover both the waiver request and the request for recertification if such requests are made simultaneously. 18 C.F.R. § 292.203(dH2) allows an applicant to request a waiver of the Form 556 filing requirements, for good cause. Applicants filing a petition for declaratory order requesting a waiver under 18 C.F.R. § 292.203(d)(2) do not need to complete or submit a Form 556 with their petition. FERC Form 556 Page 4 - Instructions Geographic Coordinates If a street address does not exist for your facilty, then line 3c of the Form 556 requires you to report your facility's geographic coordinates (latitude and longitude). Geographic coordinates may be obtained from several different sources. You can find links to online services that show latitude and longitude coordinates on online maps by visiting the Commission's QF web page at www.ferc.gov/QF and clicking the Geographic Coordinates link. You may also be able to obtain your geographic coordinates from a GPS device, Google Earth (available free at http://earth.google.com), a propert survey, various engineering or construction drawings, a propert deed, or a municipal or county map showing propert lines. Filing Privileged Data or Critical Energy Infrastructure Information in a Form 556 The Commission's regulations provide procedures for applicants to either (1) request that any information submitted with a Form 556 be given privileged treatment because the information is exempt from the mandatory public disclosure requirements of the Freedom of Information Act, 5 U.S.C § 552, and should be withheld from public disclosure; or (2) identify any documents containing critical energy infrastructure information (CEil) as defined in 18 CF.R. § 388.113 that should not be made public. If you are seeking privileged treatment or CEil status for any data in your Form 556, then you must follow the procedures in 18 CF.R. § 388.112. See www.ferc.gov/help/filng-guidelfile-eii.aspfor more information. Among other things (see 18 CF.R. § 388.112 for other requirements), applicants seeking privleged treatment or CEil status for data submitted in a Form 556 must prepare and file both (1) a complete version of the Form 556 (containing the privileged and/or CEil data), and (2) a public version of the Form 556 (with the privileged and/or CEil data redacted). Applicants preparing and filing these different versions of their Form 556 must indicate below the security designation of this version of their document. If you are not seeking privileged treatment or CEil status for any of your Form 556 data, then you should not respond to any of the items on this page. Non-Public: Applicant is seeking privileged treatment and/or CEil status for data contained in the Form 556 lines o indicate below. This non-public version of the applicant's Form 556 contains all data, including the data that is redacted in the (separate) public version ofthe applicant's Form 556. Public (redacted): Applicant is seeking privileged treatment and/or CEil status for data contained in the Form 556 lines o indicated below. This public version of the applicants's Form 556 contains all data except for data from the lines indicated below, which has been redacted. Privileged: Indicate below which lines of your form contain data for which you are seeking privileged treatment Criical Energy Infrastructure Information (CEil): Indicate below which lines of your form contain data for which you are seeking CEil status The eFilng process described on page 2 wil allow you to identify which versions of the electronic documents you submit are public, privileged and/or CEil. The filenames for such documents should begin with "Public", "Priv", or "CEil", as applicable, to clearly indicate the security designation of the file. Both versions of the Form 556 should be unaltered PDF copies of the Form 556, as available for download from www.ferc.gov/QF. To redact data from the public copy of the submital, simply omit the relevant data from the Form. For numerical fields, leave the redacted fields blank. For text fields, complete as much of the field as possible, and replace the redacted portions of the field with the word "REDAGED" in brackets. Be sure to identify above.i fields which contain data for which you are seeking non-public status. The Commission is not responsible for detecting or correcting filer errors, including those errors related to security designation. If your documents contain sensitive information, make sure they are filed using the proper security designation. FEDERAL ENERGY REGULATORY COMMISSION WASHINGTON, DC F 0 r m 5 5 6 Certification of Qualifying Facilty (QF) Status for a Small Power Production or Cogeneration Facility OMB Control ## 1902-0075 Expiration 5/31/2013 1 a Full name of applicant (legal entit on whose behalf qualifng facility status is sought for this facility) Tumleweed Energy,LLC 1b Applicant street address 1801 Radcliffe Way 1c City 1 d State/province Eagle Idaho 1 e Postal code 1f Country (if not United States)1 9 Telephone number 83616 (208)794-7530 1h Has the instant facilit ever previously been certified as a QF?Yes 0 No f8 1i if yes, provide the docket number of the last known QF filing pertaining to this facilty QF ----- 1j Under which certification process is the applicant making this filing? I: Notice of self-certification o Application for Commission certifcation (requires filings:(se note below)fee; see "Filng Fee" secion on page 3) 0 Note: a notice of self-certifcation is a notice by the applicant itself that its facility complies with the requirements for.p rt QF status. A notice of self-certification does not establish a proceeding, and the Commission does not review a E notice of self-eertification to verify compliance. See the "What to Expect From the Commission After You File""-section on page 3 for more information. J2 1k What type(s) of QF sttus is the applicant seeking for its facility? (check all that apply)s: s:~ Qualifng small ¡:ower production facilit status o Qualifying cogeneration facilit status0'P 11 What is the purpose and expeced efecve date(s) ofthis filing?rt.~I: Original certification; facility expeed to be installed by 11/1/12 and to begin operation on 1/1/13õ. o Change(s) to a previously certified facilty to be effecive onC-o:(identif type(s) of change(s) below, and describe change(s) in the Miscellaneous section starting on page 19) o Name change and/or other administrative change(s) o Change in ownership o Change(s) afecting plant equipment, fuel use, power production capacit and/or cogeneration thermal output o Supplement or correcion to a previous filing submitted on (describe the supplement or correction in the Miscellaneous secion starting on page 19) 1 m If any of the following three statements is true, check the box(es) that describe your situation and complete the form to th,e exent possible, explaining any special circumstances in the Miscellaneous section strting on page 19. o The instant facility complies with the Commission's QF requirements by virtue of a waiver of certain regulationspreviously granted by the Commission in an order dated (specif any other relevant waiver orders in the Miscellaneous section starting on page 19) o The instant facility would comply with the Commission's QF requirements if a petition for waiver submittedconcurrently with this application is granted The instant facility complies with the Commission's regulations, but has special circumstances, such as the o employment of unique or innovative technologies not contemplated by the structure of this form, that make the demonstration of compliance via this form difcult or impossible (describe in Misc. secion starting on p. 19) o o o o o o FERC Form 556 Page 6 - All Facilities 2a Name of contact person 2b Telephone number Richard Hansen (208)794-7930 2c Which of the following describes the contact person's relationship to the applicant? (check one) i:o Applicant (self)I2 Employee, owner or partner of applicant authorized to represent the applicant 0 o Employee of a company affliated with the applicant authorized to represent the applicant on this matter.'¡ ct o Lawyer, consultant, or other representative authorized to represent the applicant on this matterE2d Company or organization name (if applicant is an individual, check here and skip to line 2e) 0ii~Tumleweed Energy i LLCi:- 2e Street address (if same as Applicant, check here and skip to line 3alD~iUct 1801 Radcliffe~iC0U 2f City 29 State/province Eagle Idaho 2h Postal code 2i Country (if not United States) 83616 3a Facilty namei:Tumbleweed Energy Development0".3b Street address (if a street address does not exist for the facilty, check here and skip to line 3c)!:ctU0.. "'i:ct 3c Geographic coordinates: If you indicated that no street address exists for your facilty by checking the box in line 3b,C then you must specfy the latitude and longitude coordinates of theiacilityin degree (to threedecmatplaces). Use0the following formula to convert to decimal degrees from degrees, minutes and seconds: decimal degrees =''¡ ct degrees + (minutes/60) + (seconds/3600).See the "Geographic Coordinates" secion on page 4 for help. If youUprovided a street address for your facilty in line 3b, then specifying the geographic coordinates below is optional.q:''¡ o East (+)I2 North (+)i:Longitude 115.420 degrees Latitude 43 . 14 2 degreesOJI2 West (-)o South (-)"';:3d City (if unincorporated, check here and enter nearest city) 0 3e State/province .t=Mountain Home Idaho U 3f County (or check here for independent city) 0ct 3g Country (if not United States)u. Elmore Identify the electric utilities that are contemplated to transact with the facility. (,4a Identify utility interconnecting with the facilityOJ :-e Idaho Power Company.'¡::4b Identify utilties providing wheeling service or check here if none 0 Ol Idaho Power CompanyC~i 4c Identify utilties purchasing the useful electric power output or check here if none 0UctIdaho Power CompanyV)i:ct 4d Identify utilties providing supplementary power, backup power, maintenance power, and/or interruptible poweriii-service or check here if none 0 Idaho Power Company o o o o o o FERC Form 556 Page 7 - All Facilties Sa Direc ownership as of effecive date or operation date: Identify all direct owners of the facility holding at least 10 percent equit interest. For each identified owner, also (1) indicate whether that owner is an electric utilty, as defined in secion 3(22) of the Federal Power Act (16 U.S.c. 796(22)), or a holding company, as defined in secion 1262(8) of the Public Utilty Holding Company Act of 2005 (42 U.S.c. 16451 (8)), and (2) for owners which are electric utilties or holding companies, provide the percentage of equity interest in the facilty held by that owner. If no direc owners hold at least 10 percent equity interest in the facility, then provide the required information for the two direc owners with the largest equity interest in the facilty. Electric utilty or If Yes, holding % equity Full legal names of direc owners company interest 1) Richard W.Hansen YesD No IZ % 2)Nick Troche YesD No IZ % 3)YesD No D % 4)YesD No D % 5)YesD No D % 6)YesD No D % 7)YesD No D % 8)YesD No D %C0 9)YesD No D %.p ro 10)YesD No D %'- Q)0.D Check here and continue in the Miscellaneous secion starting on page 19 if additional space is needed0. '"$b Upstream (i.e., indirec) owñership as of effece date or operation date: Identify all upstream (i.e., indirect) ownersc:of the facilty that both (1) hold at least 10 percent equit interest in the facility, and (2) are electric utilties, asro0.defined in section ~(22) of the Federal Power Act (16 U.s.c. 796(22)), or holding companies, as defined in section :e 1262(8) of the. PubliC; Utilty Holding Company Act of ~005 (42 U.s.c. 16451 (8)). Also provide the percentage of ~equity interest in the facilty held by such owners. (Note that, because upstream owners may be subsidiaries of one (J another, total percent equity interest reported may excee 1 00 percent.) c: ~Check here if no such upstream owners exist. IZ0 % equity Full legal names of elecric utilty or holding company upstream owners interest 1 )% 2)% 3)% 4)% 5)% 6)% 7)% 8)% 9)% 10)% D Check here and continue in the Miscellaneous secion starting on page 19 if additional space is needed Se Identify the facility operator Tumleweed Energy,LLC o FERC Form 556 Page 8 - All Facilties 6a Describe the primary energy input: (check one main category and, if applicable, one subcategory) o Biomass (specify) o landfill gas o Manure digester gas o Municipal solid waste o Geothermal o Fossil fuel (specify) o Coal (not waste) o Fuel oil/diesel o Natural gas (not waste) Other fossil fuel o (describe on page i 9) !8 Renewable resources (specify) o Hydro power - river o Hydro power - tidal o Hydro power - wave o Solar - photovoltaic o Solar - thermal o Other biomass (describe on page i 9) 18 Wind o Other renewable resource 0 Other (describe on page i 9)(describe on page i 9) 6b If you specified "waste" as the primary energy input in line 6a, indicate the type of waste fuel used: (check one) o Sewage digester gas o Wood o Waste (specify type below in line 6b) ..::c. c:~ ei(Jc:w o Waste fuel listed in i 8 CF.R. § 292.202(b) (specify one of the following) o Anthracite culm produced prior to July 23, i 985 o Anthracite refuse that has an average heat content of 6,000 Btu or less per pound and has an averageash content of 45 percent or more o Bituminous coal refuse that has an average heat content of 9,500 Btu per pound or less and has anaverage ash content of 25 percent or more Top or bottom subbituminous coal produced on Federal lands or on Indian lands that has been o determined to be waste by the United States Department of the Interior's Bureau of land Management(BLM) or that is located on non-Federal or non-Indian lands outside of BLM's jurisdietion, provided that the applicant shows that the latter coal is an exension of that determined by BLM to be waste Coal refuse produced on Federal lands or on Indian lands that has ben determined to be waste by the o BlM or that is located on non- Federal or non-Indian lands outside of BLM's jurisdietion, provided that applicant shows that the latter is an exension of that determined by BLM to be waste o Lignite produced in association with the production of montan wax and lignite that becomes exposedas a result of such a mining operation o Gaseous fuels (except natural gas and synthetic gas from coal) (describe on page i 9) Waste natural gas from gas or oil wells (describe on page i 9 how the gas meets the requirements of i 8 o CF.R. § 2.400 for waste natural gas; include with your filing any materials necessary to demonstrate compliance with i 8 CF.R. § 2.400) o Materials that a government agency has certified for disposal by combustion (describe on page i 9) o Heat from exothermic reactions (describe on page i 9) 0 Residual heat (describe on page i 9) o Used rubber tires 0 Plastic materials 0 Refinery off-gas 0 Petroleum coke Other waste energy input that has little or no commercial value and exists in the absence of the qualifying o facilty industry (describe in the Miscellaneous section starting on page i 9; include a discussion of the fuel's lack of commercial value and existence in the absence of the qualifying facility industry) 6c Provide the average energy input, calculated on a calendar year basis, in terms of Btu/h for the following fossil fuel energy inputs, and provide the related percentage of the total average annual energy input to the facilty (18 CF.R. § 292.2020)). For any oil or natural gas fuel, use lower heating value (i 8 CF.R. § 292.202(m)). Fuel Natural gas Oil-based fuels Coal Annual average energy input for specified fuel Percentage of total annual energy input 0% 0% 0% o Btu/h o Btu/h o Btu/h FERC Form 556 Page 9 - All Facilities Indicate the maximum gross and maximum net electric power production capacity of the facilty at the point(s) of delivery by completing the worksheet below. Respond to all items. If any of the parasitic loads and/or losses identifed in lines 7b through 7e are negligible, enter zero for those lines. 7a The maximum gross power production capacity at the terminals of the individual generator(s) under the most favorble anticipated design conditions 7bParasitic station power used at the facility to run equipment which is necessary and integral to the power production process (boiler feed pumps, fanslblowers, offce or maintenance buildings direcly related to the operation of the power generating facilty, etc.). If this facilty includes non- power prouction processes (for insnce, power consumed by a cogeneration facility's thermal host) , do not include any power consumed by the non-power production activities in your reported parasitic station power. 2,500 kW 6.2 kW 7c Elecrical losses in interconnecion transformers 18.7 kW 7d Electrical losses in AC/DC conversion equipment, if any o kW 7e Other interconnecion losses in power lines or facilities (other than transformers and AC/DC conversion equipment) between the terminals of the generator(s) and the point of interconnecion with the utilit 7f Total deductions from gross power production capacity = 7b + 7c + 7d + 7e 25 kW 49.9 kW 0i:o''¡ n: E~ Jli: .è .0n:LL-n:u...i:..u ~ 7g Maximum net power production capacity = 7a - 7f 2,450.1 kW 7h Description of facilty and primary components: Describe the facility and its operation. Identify all boilers, heat recovery steam generators, prime movers (any mechanical equipment driving an elecric generator), electrical generators, photovoltaic solar equipment, fuel cell equipment and/or other primary pOwer generation equipment used in the facilty. Descriptions of components should include (as applicable) specifcations of the nominal capacities for mechanical output elecrical output, or steam generation of the identifed equipment. For each piece of equipment identifed, clearl indicate how many pieces of that type of equipment are included in the plant, and which components are normally operating or normally in standby mode. Provide a description of how the components operate as a system. Applicants for cogeneration facilities do not need to describe operations of syems that are clearly depicted on and easily undersandable from a cogeneration facility's attached mass and heat balance diagram; however, such applicants should provide any necessary description needed to understand the sequential operation of the facilty depicted in their mass and heat balance diagram. If additional space is needed, continue in the Miscellaneous section starting on page 19. The Tumleweed Energy facility will consist of four 2.5 MW Nordex wind generating turbines and will connect to Idaho Power's existing 34.5 kv line that is adjacent to the project. FERC Form 556 Page 10 - Small Power Production Information Required for Small Power Production Facility If you indicated in line 1 k that you are seeking qualifying small power production facility status for your facility, then you must respond to the items on this page. Otherwise, skip page 10. Pursuant to 18 CF.R. § 292.204(a), the power production capacity of any small power production facility, together with the power production capacit of any other small power production facilties that use the same energy resource, are owned by the same person(s) or its affliates, and are located at the same site, may not exceed 80 megawatts. To demonstrate compliance with this size limitation, or to demonstrate that your facility is exempt from this size limitation under the Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990 (Pub. L. 101-575, 104 Stat. 2834 (1990) as amended by Pub. L. 102-4, 105 Stat. 249 (1991)), respond to lines 8a through 8e below (as applicable). QJUC .~ ~- 0a. ._ E 10 (3 '~\0o :: C QJo .!: ''¡ V' G .c q: +-''¡ '§i. QJU QJ II+-U CCQJcoEa.QJ E i..-:J00-U QJ\0 e:0 QJCII0~+-co QJu:Jq:u.''¡.ci. QJ ,'tU~ 8a Identify any facilties with electrical generating equipment located within 1 mile of the elecrical generating equipment of the instant facility, and for which any of the entities identified in lines 5a or 5b, or their affliates, holds at least a 5 percent equity interest. Check here if no such facilities exist. I:o Facilty location (city or county, state)Common owner(s) Maximum net power production capacity kW kW kW Root docket # (if any) 1) 2) 3) QF QF QF o Check here and continue in the Miscellaneous secion starting on page 19 if additional space is needed 8b The Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990 (Incentives Act) provides exemption from the size limitations in 18 CF.R. § 292.204(a) for certain facilties that were certified prior to 1995. Are you seeking exemption from the size limitations in 18 CF.R. § 292.204(a) by virtlle of the Incentives Act? o Yes (continue at line 8c below) I: No (skip lines 8c through 8e) 8e Was the original notice of self-eertification or application for Commission certification of the facility filed on or before December 31, 1994? YesD No 0 8d Did construction ofthe facility commence on or before December 31, 1999? Yes 0 No 0 8e If you answered No in line 8d, indicate whether reasonable dilgence was exercised toward the completion of the facilty, taking into account all factors relevant to construction? Yes 0 No 0 If you answered Yes, provide a brief narrative explanation in the Miscellaneous section starting on page 19 of the construction timeline (in particular, describe why construction started so long after the facility was certified) and the dilgence exercised toward completion of the facility. Pursuant to 18 CF.R. § 292.204(b), qualifying small power production facilities may use fossil fuels, in minimal amounts, for only the following purposes: ignition; start-up; testing; flame stabilzation; control use; alleviation or prevention of unanticipated equipment outages; and alleviation or prevention of emergencies, directly affecing the public health, safety, or welfare, which would result from electric power outages. The amount of fossil fuels used for these purposes may not exceed 25 percent of the total energy input of the facility during the 12-month period beginning with the date the facility first produces electric energy or any calendar year thereafter. o 9a Certification of compliance with 18 CF.R. § 292.204(b) with respec to uses offossil fuel: I: Applicant certifies that the facility wil use fossil fuels exclusively for the purposes listed above. 9b Certification of compliance with 18 CF.R. § 292.204(b) with respect to amount of fossil fuel used annually: Applicant certifies that the amount of fossil fuel used at the facilty wil not, in aggregate, exceed 25 I: percent of the total energy input of the facilty during the 12-month period beginning with the date the facility first produces electric energy or any calendar year thereafter. FERC Form 556 Page 11 - Cogeneration Facilities Information Required for Cogeneration Facility If you indicated in line 1 k that you are seeking qualifyin~ cogeneration facilty status for your facilit, then you must respond to the items on pages 11 through 13. Otherwise, skip pages 11 through 13. Puruant to 18 C.F.R. § 292.202(c), a cogeneration facility produces elecnc energy and forms of useful thermal energy (such as heat or steam) use. for industnal, commercial, heating, or cooling purpses, through the sequential use of energy. Pursuant to 18 C.F.R. § 29U02(s), "sequential use" of energy means the following: (1) for a topping- cycle cogeneration facilty, the use of rejec heat from a power production process in suffcient amounts in a thermal application or process to conform to the requirements of the operating standard contained in 18 C.F.R. § 292.205(a); or (2) for a bottoming-ecle cogeneration facility, the use of at least some rejec heat from a thermal appliction or process for power production. 1 Da What type(s) of cogeneration technology does the facility represent? (check all that apply) o Topping-ecle cogeneration o Bottoming-cycle cogeneration 1 Db To help demonstrate the sequential operation of the cogeneration process, and to support compliance with other requirements such as the operating and effciency standards, include with y(;)Ur filing a mass and heat balance diagram depicting average annual operating conditions. This diagram must include certain items and meet certain requirements, as described below. You must check next to the description of each requirement below to certify that you have complied with these requirements. Check to certify compliance with .indicated requirement Requirement Diagram must show orientation within syem piping and/or duet of all pnme movers,C heat recovery steam generators, boilers, elecric generators, and condensers (as00''¡applicable), as well as any other primary equipment relevant to the cogeneration to process.i-c:Q)0 Any average annual values required ¡to be reported .in lines 10b, 12a, 13a, 13b, 13d, 13f,C -JJ 0Q)14a, 15b, 15d and/or 15f must be computed over the anticipated hours of operation.0'to 0 E Diagram must specify all fuel input by fuel ty and average annua.1 rate in Btuth. FuelUi- '7 2 0 for SuPPlementary firing should be specified separately and clearly labeled. All c:specifications of fuel inputs should use lower heating values.i--Q)C 0 Diagram must specify average gross electric output in kW or MW for each generator.Q)\. Diagram must specif average mechanical output (that is, any mechanical energy taken 0 off of the shaft of the prime movers for purposes not direly related to electnc power generation) in horsepower, if any. Typically, a cogeneration facilty has no mechanical output. At each point for which working fluid flow conditions are required to be speified (see below), such flow condition data must include mass flow rate (in Ibth or kg/s), temperature (in OF, R, °C or K), absolute pressure (in psia or kPa) and enthalpy (in Btu/lb or kJ/kg). Exception: For systems where the working fluid is liquid only (no vapor at any0point in the cycle) and where the type of liquid and specific heat of that liquid are clearly indicated on the diagram or in the Mistellaneous secion starting on page 19, only mass flow ráte and temperature (not preure and enthalpy) need be specifed. For reference, specifc heat at standard conditions for pure liquid water is approximately 1.002 Btu/ (Ib*R) or4.195 kJ/(kg*K). 0 Diagram must specify working fluid flow conditions at input to and output from each steam turbine or other expansion turbine or back-pressure turbine. 0 Diagram must specify working fluid flow conditions at delivery to and return from each thermal application. 0 Diagram must specify working fluid flow conditions at make-up water inputs. o o FERC Form 556 Page 12 - Cogeneration Facilities OJ VlVl OJ :) :£1 B uC t' 0) i.E i:t' 0 "" .+:i: ~ :J OJi. i: i. OJ~ 0'Vl 0,¡ U ~ E E 0 0) ili. ,¡ :J :J 0" 0- 0) ,¡ c: :Jt. 0a ::a 0'N i.,¡ 0)u i:c: w c. '+W 0 EPAct 2005 cogeneration facilities: The Energy Policy Act of 2005 (EPAct 2005) established a new secton 21 O(n) of the Public Utilty Regulatory Policies Act of 1978 (PURPA), 16 USC 824a-3(n), with additional requirements for any qualifing cogeneration facility that (1) is seeking to sell electnc energy pursuant to section 210 of PURPA and (2) was either not a cogeneration facility on August 8, 2005, or had not filed a self-eertification or application for Commission certification of QF status on or before February 1, 2006. These requirements were implemented by the Commission in 18 CF.R. § 292.205(d). Complete the lines below, carefully following the instructions, to demonstrate whether these additional requirements apply to your cogeneration facility and, if so, whether your facilty complies with such requirements. 11 a Was your facilty operating as a qualifyng cogeneration facilty on or before August 8, 2005? Yes 0 No 0 0 11 b Was the initial filing seeking certification of your facilty (whether a notice of self-eertification or an application 0 for Commission certification) filed on or before February 1, 2006? Yes 0 No 0 Ifthe answer to either line 11a or 11b is Yes, then continue at line 11c below. Otherwise, if the answers to both lines 11 a and 11 b are No, skip to line 11 e below. 11 c With respec to the design and operation of the facilty, have any changes been implemented on or after 0 February 2, 2006 that affect general plant operation, affect use of thermal output, and/or increase net power production capacity from the plant's capacity on February 1, 2006? o Yes (continue at line 11 d below) No. Your facility is not subject to the requirements of 18 CF.R. § 292.205(d) at this time. However, it may be o subject to to these requirements in the future if changes are made to the facility. At such time, the applicant would need to recertify the facilty to determine eligibilty. Skip lines 11 d through 11 j. 11 d Does the applicant contend that the changes identified in line 11 c are not so significant as to make the facility 0 a "new" cogeneration facility that would be subject to the 18 CF .R. § 292.205(d) cogeneration requirements? Yes. Provide in the Miscellaneous section starting on page 19 a description of any relevant changes made to o the facilty (including the purpose of the changes) and a discussion of why the facility should not be considered a "new" cogeneration facilit in light of these changes. Skip lines 11 e through 11 j. No. Applicant stipulates to the fact that it is a "new" cogeneration facilty (for purposes of determining the o applicabilty of the requiremènts of 18 CF.R. § 292.205(d)) by virte of modifications to the facilty that were initiated on or after February 2, 2006. Continue below at line 11 e. 11e Wil electric energy from the facilty be sold pursuantto section 210 ofPURPA? 0 o Yes. The facility is an EPAct 2005 cogeneration facilit. You must demonstrate compliance with 18 CF.R. §292.205(d)(2) by continuing at line 11 f below. No. Applicant certifies that energy wil not be sold pursuant to section 210 of PURPA. Applicant also certifies o its understanding that it must recertify its facility in order to determine compliance with the requirements of18 CF.R. § 292.205(d) before sellng energy pursuant to secion 210 of PURPA in the future. Skip lines 111 through 11j. 11 f Is the net power production capacity of your cogeneration facilty, as indicated in line 7g above, less than or 0 equal to 5,000 kW? Yes, the net power production capacity is less than or equal to 5,000 kW. 18 CF.R. § 292.205(d)(4) provides a rebuttable presumption that cogeneration facilities of 5,000 kW and smaller capacity comply with the o requirements for fundamental use of the faciltys energy output in 18 CF.R. § 292.205(d)(2). Applicantcertifies its understanding that, should the power production capacity of the facilty increase above 5,000 kW, then the facilty must be recertified to (among other things) demonstrate compliance with 18 CF.R. § 292.205(d)(2). Skip lines 11 g through 11 j. No, the net power production capacity is greater than 5,000 kW. Demonstrate compliance with the o requirements for fundamental use of the faciltys energy output in 18 CF.R. § 292.205(d)(2) by continuing on the next page at line 11 g. FERC Form 556 Page 13 - Cogeneration Facilities ..'" QJ::c:QJ .-(n ..:; c:_ 0~rè V..- c: V) QJ .~E :: ta .-'" Vc: ~ :: c:u. 0 ii ._Jl ~(n ii.. QJ c: c: OJ QJE g~ u .5 E0' 0~~ Ln '5o c.0..N ::.. 0V ~ c: enQ. iiW QJ c:W..o ~ . cUnes 11 g through 11 k below guide the applicant through the process of demonstrating compliance with the requirements for "fndamental use" of the facilitys energy output. 18 C.F.R. § 292.205(d)(2). Only respond to the lines on this page if the instructions on the previous page direc you to do so. Otherwise, skip this page. 18 C.F.R. § 292.205(d)(2) requires that the electrical, thermal, chemical and mechanical output of an EPAct 2005 cogenetion facility is used fundamentally for industrial, commercial, residential or institutional purposes and is not intended fundamentally for sale to an electric utilty, taking into account technological, efciency, economic, and variable thermal energ requirements, as well as stte laws applicable to sales of elecc energy from a qualngfacilit to it hos facilit. If you were direced on the previous pageto repond to the items on this page, then your facilit is an EPAct 2005 cogeneration facilit that is subjecto this "fndamental use" reuirement. The Commission's regulations provide a two-pronged approach to demonstrating compliance with the requirements fOf fundamental use of tlie facilit's energy output. First the Commission has established In 18 C.F.R. § 292.205(d)(3) a "fundamental use test" that can be used to demonstrate compliance with 18 C.F.R. § 292.205(d)(2). Under the fundamental use test, a facilit is considered to comply with 18 C.F.R. § 292.205(d)(2) if at least 50 percent ofthe facilty's total annual energy output (including electrical, thermal, chemical and mechanical energy output) is used for industrial, commercial, residential or institutional purposes. Secc)Ot., an. applicant for ël facility that does not pass the fundamental use test may provide a narrative explanation of ëlnd support for its contention that the facilty nonetheless meets the requirement that the electrical, thermal, chemical and mechanical output of an EPAct 2005 cogeneration facilty is used fundamentally for industrial, commercial, residential or institional purposes and is not intended fundamentally for sale to an elecric utilty, taking into account technological, effciency, economic, and variable thermal energy requirements, as well as state laws applicable to sales of electric energy from a qualifying fadlity to its host facilty. Complete lines llg through 11 j below to determine compliance with the fundamental use test in 18 C.F.R. § 292.205(d)(3). Complete lines llg through llj even if you do not intend to rely upon the fundamental use test to demonstrate compliance with 18 C.F.R. § 292.205(d)(2). 11 9 Amount of electrical, thermal, chemical and mechanical energy output (net of internal generation plant losses and parasitic loads) expeced to be used annually for industrial, commercial, residential or instituional purpses and not sold to an electric utilty MWh 11 h Total amount of elecrical, thermal, chemical and mechanicl energy expected to besold to an elecri utilty MWh 11 i Percentage of total annual energy output expected to be used for industrial, 0 commercial, residential or institional purposes and not sold to a utilty= 100 * 11 g l(llg + 11 h) 0 % 11j Is the response in line 11 i greater than or equal to SO percent? Yes. Your fadlity complies with 18 C.F.R. § 292.205(d)(2)by virtue of passing the fundamental use test provided in 18 C.F.R. § 292.205(d)(3). Applicant certifes its understanding that, if it is to rely upon passing o the fundamental use test as a basis for complying with 18 c.F.R. § 292.205(d)(2), then the facilty must comply with the fundamental use test both in the 12-month period beginning With the date the facilty first produces elecric energy, and in all subsequent calendar years. No. Your facilty does not pass the fundamental use tes. Instead, you must provide in the Miscellaneous secon starting on page 19 a narrative explanation of and support .for why your facilty mee the requirement that the electrical, thermal, chemical and mechanicl output of an EPAct 2005 cogeneration facilty is used fundamentally for industrial, commercial, residential or institional purp and is not intended fundamentally for sale to an elecric utilit, taking into account technological, effciency, economic, and variable thermal energy requirements, as well as state laws applicable to sales of elecric energy from a QF to its host facility. Applicants providing a narrative explanation of why their facility should be found to o comply with 18 C.F.R. § 292.205(d)(2) in spite of non-eompliance with the fundamental use test may want to review paragraphs 47 through 61 of Order No. 671 (accessible from the Commission's QF website at ww.ferc.gov/QF), which provide discussion of the facts and circumstances that may support their explanation. Applicant should also note that the percentage reported above wil establish the standard that that facility must comply with, both for the 12-month period beginning with the date the facilit first produces electric energy, and in all subsequent calendar years. See Order No. 671 at paragraph 51. As such, the applicant should make sure that it reports appropriate values on lines 11 g and 11 h above to serve as the relevant annual standard, taking into account expeced variations in production conditions. FERC Form 556 Page 14 - Topping-Çycle Cogeneration Facilities Information Required for Topping~Cycle Cogeneration Facility If you indicated in line lOa that your facilty represents topping-cycle cogeneration technology, then you must respond to the items on pages 14 and 15 Otherwise skip pages 14 and 15, The thermal energy output of a topping-eycle cogeneration facility is the net energy made available to an industrial or commercial process or used in a heating or cooling application. Pursuant to secions 292.202(c), (d) and (h) of the Commission's regulations (18 C.F.R. §§ 292.202(c), (d) and (h)), the thermal energy output of a qualifyng topping- cycle cogeneration facility must be usefuL. In connecion with this requirement, descnbe the thermal output of the topping-ecle cogeneration facilty by responding to lines 12a and 12b below. 12a Identify and describe each thermal host, and specify the annual average rate of thermal output made available to each host for each use. For hosts with multiple uses of thermal output, provide the data for each use in separate rows.Average annual rate of thermal output attributable to use (net of Name of entity (thermal host)Thermal hosts relationship to facility heat contained in process taking thermal output Thermal hosts use of thermal output return or make-up water) 1)Select thermal hosts relationship to facilit Select thermal hosts use of thermal output Btu/h 2)Select thermal hosts relationship to facilit Cl Selec thermal hosts use of thermal output BtulhuSelect thermal hosts relationship to facilit~3)U i Select thermal hosts use of thermal output BtuhC) ..C ::Selec thermal hosts relationship to facility.- C.4)C. ..C. ::Select thermal hosts use of thermal output Btu/h~ 0 5)Select thermal hosts relationship to faciltyl+to0E Select thermal hosts use of thermal output Btu/hVli. Vl Cl Select thermal hosts relationship to facility(1 .c 6)of i-Select thermal hosts use of thermal output Btu/h~I+o Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed(1Vl~12b Demonstration of usefulness of thermal output: At a minimum, provide a brief description of each use of the thermal output identified above. In some cases, this brief description is suffcient to demonstrate usefulness. However, if your faciltys use of thermal output is not common, and/or if the usefulness of such thermal output is not reasonably clear, then you must provide additional details as necessary to demonstrate usefulness. Your application may be rejected and/or additional information may be required if an insufcient showing of usefulness is made. (Exception: If you have previously received a Commission certification approving a specific use of thermal output related to the instant facility; then you need only provide a brief description of that use and a reference by date and docket number to the order certifying your facilty with the indicated use. Such exemption may not be used if any change creates a material deviation from the previously authorized use.) If additional space is needed, continue in the Miscellaneous section starting on page 19. o FERC Form 556 Page 15 - Topping-Cycle Cogeneration Facilities '" æ § ~ +:r: .!.- ~ .. Utt _"' tt~Uo a.a. .2- ttU ~ Y G'~ r: r: CL.Å¡:~ ~w Applicants for facilties repreSenting topping-eycle technology must demonstrate compliance with the topping- 0 cycle operating standard and, if applicable, effciency standard. Section 292.205(a)(1) of the Commission's regulations (18 C.F.R. § 292.205(a)(1)) establishes the operating standard for topping-ecle cogeneration facilites: the usefl thermal energy output must be no less than 5 percent of the total energy outut Secion 292.205(a)(2) (1,8 Ç.F,R. § 292,405(a)(2)) establishes the efciency standard for topping-ecle cogeneration facilities for which installation commenced on or after March 13, 1980: the useful power output of the facilty plus one-half the useful tl:erl energ.y output must (A) be nO less than 42.5 percent of the total energy input of natural gas and oil to the façilty ,and (a) if tl:e lIseful thermal energy output is less than 15 percent of the total energy output of the facility, Re nO i~s t~an 45 perçent of ihe totëllenergy input of natural gas and oil to the facilty. To demonstrate compliance with the topping-ecle operating and/or effciency standards, or to demonstrate that your facilty is e)empt frm the effciency stndard based on the date that installation commenced, respond to lines 13a through 13lbelów. If you indicated in line 10a that your facilty represents both topping-ecle and bottoming-ecle cogeneration technology, then respond to lines 13a through 131 below considering only the energy inputs and outputs attbutable to the topping-ecle portion of your facility. Your mass and heat balance diagram must make clear which mass and energy flow values and system components are for which porton (topping or bottoming) of the cogeneration system. 13a IndiCate the annual average rate of usefl thermal energy output made available to the host(s), net of any heat êontaitled in condensate retrn or make-up water Btulh 13b Indicate the an nual average rate of net electrical energy output 13c Multiply line 13b by 3,412 to convert from kW to Btu/h kW o Btu/h 0 hp o Btu/h 0 Btulh 0%0 13d Indicate the annual average rate of mechanical energy output taken directly off of the shaft of a prime mover for purposes nöt direcly related to power production (this value is usually zero) 13e Multiply line 13d by 2,54 to convert from hp to Btu/h 13f Indicate the annual average rate of energy input from natural gas and oil 13g Topping-ele operating value"= 100 * 13a /(13a + 13c + 13e) 1'9h Topping-eleefdency value"" 1 00 * (0.5*13a + 13c + 13e) /13f 0% 13j Compliance with operating standard: Is the operating value shown in line 13g greater than or equal to 5%? o Yes (complies wit operating standard)o No (does not comply with operating standard) 13j Did installation of the facilty in its current form commence on or after March 13, 1980? DYes. Your facilty Is subjec to the effciency requirements of 18 C.F.R. § 292.205(a)(2). Demonstratecompliance with the effciency requirement by responding to line 13k or 131, as applicable, below. o No. Your facilty is exempt from the effciency standard. Skip lines 13k and 131. o 13k Compliance with effciency standard (for low operating value): If the operating value shown in line 13g is less than 15%, then indicate below whether the effciency value shown in line 13hgreater than or equal to 45%: o Yes (complies with effciency standard) 0 No (does not comply with effciency standard) 131 Compliance with effdency standard (for high operating value): If the operating value shown in line 13g is greater than or equal to 15%, then indicate below whether the effciency value shown in line 13h is greater than or equal to 42.5%: o Yes (complies with effciency standard) 0 No (does not comply with effciency standard) FERC Form 556 Page 16 - Bottoming-eycle Cogeneration Facilties Information Required for Bottoming-Cycle Cogeneration Facility If you indicated in line lOa that your facility represents bottoming-ecle cogeneration technology, then you must respond to the items on pages 16 and 17. Otherwise, skip pages 16 and 17. The thermal energy output of a bottoming-cycle cogeneration facilit is the energy related to the process(es) from 0 which at least some of the reject heat is then used for power production. Pursuant to secions 292.202(c) and (e) of the Commission's regulations (18 C.F.R § 292.202(c) and (e)) , the thermal energy output of a qualifyng bottoming- cycle cogeneration facilty must be usefuL. In connection with this requirement, descnbe the process(es) from which at least some of the rejec heat is used for power production by responding to lines 14a and 14b below. OJu GiO" +-.5 :JE a.o +-+- :J+- 00_ CO CO\o Eo i. Vl OJVl .. OJ l-e ~Vl~ 14a Identif and describe each thermal host and each bottoming-ecle cogeneration process engaged in by each host. For hosts with multiple bottoming-cycle cogeneration processes, provide the data for each process in separate rows. Name of entit (thermal host) performing the process from which at least some of the rejec heat is used for power production Has the energy input to the thermal host been augmented for purposes of increasing power production capacity? (if Yes, describe on p. 19) Thermal host's relationship to facility Thermal host's process type 1) Select thermal host's relationship to facilty Yes 0 No 0 Select thermal host's process type 2) Selec thermal host's relationship to facility Yes 0 No 0 Select thermal host's process type 3) Select thermal host's relationship to facility Yes 0 No 0 Select thermal host's process type o Check here and continue in the Miscellaneous secion starting on page 19 if additional space is needed 14b Demonstration of usefulness of thermal output: At a minimum, provide a brief description of each pro.cess identified above. In some cases, this brief description is suffcient to demonstrate usefulness. However, if your facility's process is not common, and/or if the usefulness of such thermal output is not reasonably clear, then you must provide additional details as necessary to demonstrate usefulness. Your application may be rejeced and/or additional information may be required if an insuffcient showing of usefulness is made. (Exception: If you have previously received a Commission certification approving a specific bottoming-ecle process related to the instant facilty, then you need only provide a brief description of that process and a reference by date and docket number to the order certifying your facility with the indicated process. Such exemption may not be used if any material changes to the process have been made.) If additional space is needed, continue in the Miscellaneous section starting on page 19. FERC Form 556 Page 17 - Bottoming-Cycle Cogeneration Facilities "CC Cto 0C'.-C ..._ n:..-to :::i U (J too.uo (J(J :: '" -æ;: :;y ;:C' uC C.- ClE '0o æ:tI woa: Applicants for facilties representing bottoming-eycle technology and for which installation commenced on or after March 13, 1990 must demonstrate compliance with the bottoming-ecle effciency standards. Section 292.205(b) of the Commission's regulations (18 C.F.R. § 292.205(b)) establishes the effciency standard for bottoming-ecle cogeneration facilites: the useful power output of the facility must be no less than 4S pecent of the energy input of natural gas and oil for supplementary firing. To demonstrate compliance with the bottoming-ecle effciency standard (if applicable), or to demonstrate that your facilty is exempt from this standard based on the date that ,installation of the facilit began, respond to lines 15a through 15h below. If you indicated in line 10a that your facility represents both topping-ecle and bottoming-ecle cogeneration technology, then respond to lines 15a through 15h below considering only the energy inputs and output attributable to the bottoming-cycle portion of your facility. Your mass and heat balance diagram must make clear which mass and energy flow values and system components are for which portion of the cogeneration system (topping or pøttoming). 1 Sa Did instllation of the facility in it current form commence on or after March 13, 19801 o Yes. Your facilty is subject to the effciency requirement of 18 C.F.R. § 292.205(b). Demonstrate compliancewith the effciency requirement by responding to lines 15b through 15h below. o No. Your facility is exempt from the effciency standard. Skip the rest of page 17. 1Sb Indicate the annual averagE! rate of net elecrical energy output 1Se Multiply line 15b by 3,412 tp cpnvert from kW to Btulh 1Sd Indicate the annual average rate of mechanical energy output taken direcly off of the shaf of a prime mover for purposes not directly related to power production (this value is usually zero) 1.$ Multiply line 15d by 2,.S4 to. convert from hp to Bt 1 Sf Indicate the annual average rate of supplementary energy input from natural gas oroil 159 Bottming-ecle effciency value = 100 * (15c + 15e) /15f ooo % 1 ShCompliance with effcienèY standard: Indicate below whether the effciency valUE! shown in line 15g is greater than or equal to 45%: o Yes (complies with effciency standard)o No (does not comply with effciency standard) FERC Form 556 Page 18 - All Facilties Certificate of Completeness, Accuracy and Authority Applicant must certify compliance with and understanding of filing requirements by checking nex to each item below and signing at the bottom of this section. Forms with incomplete Certificates of Completeness, Accuracy and Authority wil be rejeced by the Secretary of the Commission. Signer identified below certifes the following: (check all items and applicable subitems) He or she has read the filing, including any information contained in any attached documents, such as cogeneration t8 mass and heat balance diagrams, and any information contained in the Miscellaneous section starting on page 19, and knows its contents. IZ He or she has provided all of the required information for certification, and the provided information is true as stated,to the best of his or her knowledge and belief. IZ He or she possess full power and authority to sign the filing; as required by Rule 2005(a)(3) of the Commission's Rules ofPractice and Procedure (18 C.F.R. § 385.2005(a)(3)), he or she is one of the following: (check one) o The person on whose behalf the filing is made o An offcer of the corporation, trust, association, or other organized group on behalf of which the filing is made o An offcer, agent, or employe of the governmental authority, agency, or instrumentality on behalf of which thefiling is made 18 A representative qualified to practice before the Commission under Rule 2101 of the Commission's Rules ofPractice and Procedure (18 C.F.R. § 385.2101) and who possesses authority to sign t8 He or she has reviewed all automatic calculations and agrees with their resultsiunless otherwise noted in the Miscellaneous section starting on page 19. He or she has provided a copy of this Form 556 and all attachments to the utilties with which the facilit wil IZ interconnect and transact (see lines 4a through 4d), as well as to the regulatory authorities of the states in which thefacilty and those utilties reside. See the Required Notice to Public Utilties and State Regulatory Authorities secion on page 3 for more information. Provide your signature, address and signature date below. Rule 2005(c) of the Commission's Rules of Praice and Procedure (18 C.F.R. § 385.2005(c)) provides that persons filing their documents electronically may use typed characters representing his or her name to sign the filed documents. A person filing this document electronically should sign (by typing his or her name) in the space provided below. Peter Richardson Your address 515 N. 27th Street Boise, Idaho 83702 DateYour Signature 06/23/2011 Audit Notes Commission Staff Use Only:o FERC Form 556 Page 19 - All Facilities Miscellaneous Use this space to provide any information for which there was not suffcient space in the previous sections of the form to provide. For each such item of information clearly identify the fine number that the information belongs to. You may also use this space to provide any additional information you believe is relevant to the certification of your facilty. Your response below is not limited to one page. Additional page(s) wil automatically be inserted into this form if the length of your response exceeds the space on this page. Use as many pages as you require. BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.2 VicJ. hcw.c~ ~ú1 ),'Utl~ r~æ~æowæ~ WJ JUN 2 4 2011 IJ) CÆ Richard Hansen, Manager Tumbleweed Energy ", LLC 7154 W. State Street #330 Boise, Idaho 83714 (208) 794-7530 Engr wevrCâhotmail.com l'v June 24, 2011 Idaho Power Company Cogeneration and Small Power Production P.O. Box 70 Boise, Idaho 83707 1221 West Idaho Boise, Idaho 83702 (via U.S. Mail and Hand delivery) Re: 10 MW Wind QF Contract Request - Oregon Off-System Project Dear Sir or Madam: Please accept this request for an Energy Sales Agreement pursuant to Oregon PUC rate Schedule 85-4 "Cogeneration and Small Power Production Standard Contract Rates". We are interested in obtaining a final execution ready Energy Sales Agreement for the Tumbleweed Energy Wind Farm ten MW project located in Elmore County, Idaho for delivery to Idaho Power's service territory in Oregon pursuant to the above referenced tari. Section 2(b) of Schedule 85-4 requires the following information to be provided in order for you to provide a draft Energy Sales Agreement within fifteen business days (see § 2 (d)): a. Date of Request: June 22, 2011; b. Company/Organization that wil be the contracting Party: Tumbleweed Energy, LLC; c. Contact Notifcation information including, name, address and telephone: See above address and phone contact information; d. Verication that the Qualifying Facilty meets the "Eligibilty for Standard Rates and Contract" criteria; I hereby verify that the Tumbleweed project is a small power production facilty which meets the PURPA criteria for qualification set forth in Subpart B of Part 292, subchapter K, Chapter 1, Title 18 of the Code of Federal Regulations; e. Copy of the Qualifying Facilty's QF certificate: Attached; f. Copy of FERC license (applicable to hydro projects only): N/A; g. Location of the proposed project including specific equipment models, types, sizes and configurations: Canyon Creek Ranch, Township 2, South, Range 6 East, Boise Meridian, Elmore County, Idaho. Four 2.5 MW Nordic manufactured 80 meter wind turbines. h. Description of the proposed project including specific equipment models, types, sizes and configurations; see "g"; i. Type of project (wind, hydro, geothermal etc.): Wind; j. Nameplate capacity of the Qualifying Factility: 10 MW; k. Schedule 85 pricing option selected: Option 1, Fixed Price Method; i. Desired term of the Energy Sales Agreement: Fifteen (15) years; m. Annual net energy amount: 27,156,000 kwh; n. Maximum capacity of the Qualifying Facility: 10,000 kw o. Estimated first energy date: December 1,2012; p. Estimated first operation date: January 1, 2013; q. Point of Delivery: Idaho Power service territory in Oregon, likely the Ontario or Nyssa Substation, with the final Point of Delivery to be determined by Idaho Power Transmission Business Line; r. Status of the Generation Interconnection Process: Interconnection Process is complete with the Final Feasibilty Study executed on December 10, 2010 for Project No. 332 in the Idaho Power Interconnection Queue. It is our understanding that, pursuant to Schedule 85 that we may expect a draft Energy Sales Agreement fifteen busines days from today. ase do not hesitate to give me a call if you have any questions. Sincerely yours, Richard Hansen, Manger Tumbleweed Energy LLC BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.3 \J k~ Y\úfl clx \ hJ lU..L\ ~æilæOmæ~ u W JUN 2 4 2011 W CS Richard Hansen, Manager Tumbleweed Energy II, LLC 7154 W. State Street #330 Boise, Idaho 83714 (208) 794-7530 Enegr wevr~hotmail.com By June 24,2011 Manager Grid Operations Idaho Power Company 1221 West Idaho Boise, Idaho 83702 (via U.S. Mail and Hand delivery) Idaho Power Company Re: 10 MW Wind Firm Point-to-Point Transmission Service Request Dear Sir or Madam: Please accept this request for a Firm Point-to-Point transmission agreement pursuant to Idaho Powets Open Access Transmission Tariff, FERC Electric Tariff First Revised Volume No.6, Section 17, "Procedures for Arranging Firm Point-to-Point Transmission Service. Service is to begin on December 1,2012. a. Identity of the entity requesting service: Tumbleweed Energy, see above address and phone contact information; b. Tumbleweed Energy is, or wil be upon commencement of service, an Eligible Customer under the Tariff: c. The Point of Receipt is the 138 mV system at a new substation (Station 331) located under the Mountain Home Junction (MNJ1) Lucky Peak (LYPK) 138 sub-transmission line. Copy of FERC license (applicable to hydro projects only): N/A; d. The project wil supply wind energy and capcity from four 2.5 MW Nordic manufactured 80 meter wind turbines. e. The receiving part, Idaho Powets Oregon jurisdiction, wil receive approximately 27,000,000 kwh of energy and capacity associated with a 10 MW wind project. f. The Commencement Date of the requested transmission service is December 1, 2012; g. The transmission capacit requested for the Point of Receipt and the Point of Delivery is 10MW. h. Tumbleweed Energy is committed to executing a Service Agreement upon notification that the Transmission Provider can provide the requested Transmission Serivce. i. Tumbleweed Energy wil provide such additional information as requested by the Transmission Provider. It is our understanding that, pursuant to the OA IT that we may expect a response within fifteen business days from today as to whether this application for Firm Point-to-Point Transmission Service is complet. Tumbleweed stands ready to post necessary deposit equal to one month's transmission service charge. That said, we respectfully request that Idaho Power waive said charge in the even that Tumbelweed meets applicable credit worthiness requirements. Sincerely yours, Richard Hansen, i(anger Tumbleweed Energy LLC BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.4 An 10ACORP Company DONOVAN E. WALKER Lead Counsel dwalker(idahopower.com June 8,2011 VIA ELECTRONIC MAIL & U.S. MAIL . engrwevr(âhotmail.com Richard Hansen, Manager Tumbleweed Energy II, LLC 7154 W. State Street #330 Boise, Idaho 83714 Re: Invalid Request - Your June 24, 2011, Ten Megawatt Wind Qualified Facilty ("QF") Contract Request - Oregon Off-S.ystem Project Dear Mr. Hansen: This letter is in response to your request for an Energy Sales Agreement pursuant to Idaho Power Company's ("Idaho Powet') Oregon Tariff Schedule 85, Cogeneration and Small Power Production Standard Contract Rates (March 1, 2010). Because your proposed QF project is located in the state of Idaho, with an interconnection to Idaho Powets system in the state of Idaho, if your project wishes to obtain a power sales agreement pursuant to the Public Utilty Regulatory Policies Act of 1978 ("PURPA"), it must do so according to the Idaho Public Utilties Commission's PURPA rates, rules, and regulations - not Oregon's. Idaho Power intends to file a case with the Idaho Public Utilities Commission determining the same on today's date. Idaho Power wil forward a copy of said filing to you under separate cover. uJ fX Donovan E. Walker DEW:csb cc: Peter J. Richardson 1221 W. Idaho St. (83702) P.O. Box 70 Boise. 10 83707 ~IDA~PO~ An IOACORP company July 8,2011 Richard Hansen, Manager Tumbleweed Energy II, LLC 7154 W State Streed #330 Boise, ID 83714 Re: Invalid Application - 10MW FIRM PTP TSR reques for TumbleWeed Energy Dear Mr. Hansen: This letter is to serve as formal notification that we have received your request for Firm Point-to-Point (PT) transmission. However, due to the method of submittal, it has been considered as an invalid application. All Transmisison Service Request (TSRs), short term or long term, must be made on OASIS to estblish a queue position. The information provided in your letter wil also need to accompany the OASIS reqeust. To make a request on OASIS, you wil need to become an actve Idaho Power trnsmission customer. The customer reistation proes can be found in secton 1 of our Busines Practces. Our Business Practces are located on OASIS witin the Business Practce folder, All other required documents for customer registration are also locted on OASIS under the Customer service-Transmission folder. Please let me know if you have any questions or need any assistnce in the customer registation proess. Beth Ryan Operations Analyst 208.388.2846 BRyan(iidahopower .com cc: Kathy Andersn Donovan Walker P.O. Box 70 (83707) 1221 W. Idaho St. Boise, 10 83702 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.5 \ lÀ cU' \\)~ mæ (l æ 0 \T æ~i ilu JUN 27 2011 ~ ~:ß ~r~((I~l'ATTORNEYS AT LAW By Peter Richardson Tel: 208-938-7901 Fax: 208-938-7904 peterli richardson and oJ eary. com P.O. Box 7218 Boise, 10 83707 - 515 N. 27th St. Boise. ID 83702 June 27, 2011 Donovan Walker Idaho Power Company 1221 West Idaho Street Boise, Idaho Via hand delivery Re: FERC Form 556 - Western Desert Energy 1, LLC Dear Donovan: Enclosed please find a competed FERC Form 556 for the Western Desert Energy 1, LLCproject located in Owwee County, Idaho. This form is being provided to you pursuat to FERC's rues that require a copy be provided to all utilties with which the fiing QF will interconnect and/or transact. Idaho Power will provide both services to Western Desert Energy 1, LLC. Please feel free to give me a call if you have any questions. Sincerely:d~ PÍ!e Richardson Attorney for Western Desert Energy 1, LLC Form 556 FEDERAL ENERGY REGULATORY COMMISSION WASHINGTON, DC Certification of Qualifying Facility (QF) Status for a Small Power Production or Cogeneration Facilty OMB Control # 1902-0075 Expiration 5/31/2013 General Questions about completing this form should be sent to form556(Gferc.gov. Information about the Commission's QF program, answers to frequently asked questions about QF requirements or completing this form, and contact information for QF program stff are available at the Commission's QF website, ww.ferc.gov/QF. The Commission's QF website also provides links to the Commission's QF regulations (18 C.F.R. § 131.80 and Part 292), as well as other statutes and orders pertining to the Commission's QF program. Who Must File Any applicant seeking QF status or recertification of QF status for a generating facilty with a net power production capacity (as determined in lines 7a through 7g below) greater than 1000 kW must file a self-certification or an application for Commission certifcation of QF status, which includes a properly completed Form 556. Any applicant seeking QF status for a generati"f facilit with a net power production capacity 1000 kW or less is exempt from the certification requirement and is therefore not required to complete or file a Form 556. See 18 C.F.R. § 292.203. How to Complete the Form 556 This form is intended to be completed by responding to the items in the order they are presented, according to the instructions given. If you need to back-track, you may need to clear certain responses before you wil be allowed to change other responses made previously in the form. If you experience problems, click on the nearest help button (.) for asistance, or contact Commission staff at FormS56Øferc.gov. Certin lines in this form wil be automatically calculated based on responses to previous lines, with the relevant formulas shown. You must respond to all of the previous lines within a section before the results of an automatically calculated field wil be displayed. if you disagree with the results of any automatic calculation on this form, contact Commission staff at Form556erc.gov to discuss the discrepancy before filing. You must complete a'ilines in this form unless instructed otherwise. Do not alter this form or save this form in a different format. Incomplete or altered forms, or forms saved in formats other than PDF, wil be rejected. How to File a Completed Form 556 Applicants are reuired to file their Form 556 electronically through the Commission's eFilng website (see instructions on page 2). By filing elecronically, you wil reduce your filing burden, save paper resources, save postage or courier charges, help keep Commission expenses to a minimum, and receive a much faster confirmation (via an email containing the docket number assigned to your facilit) that the Commission has received your filing. If you are simultneously filing both a waiver request and a Form 556 as part of an application for Commission certification, see the "Waiver Request" section on page 3 for more information on how to file. Paperwork Reduction Act Notice This form is approved by the Ofce of Management and Budget (OMB Control No. 1902..075, expiration 05/31/2013). Compliance with the information requirements established by the FERC Form No. 556 is required to obtain or maintain status as a OF. See 18 CJ.R. § 131.80 and Part 292. An agency may not conduct or sponsor, and a person is not required to respond to, a collecon of information unless it displays a currently valid OMB control number. The estimated burden for completing the FERC Form No. 556, including gathering and reporting information, is as follows: 3 hours for self-certification of a small power produetonfacilty, S hours for self-certifcations of a cogeneration facilty, 6 hours for an application for Commission certification of a small power production facilty, and 50 hours for an application for Commission certification of a cogeneration facilty. Send comments regarding this burden estimate or any aspect of this collection ofinformation, including suggestions for reducing this burden, to the following: Information Clearance Ofcer, Ofce of the Executive Direcor (ED-32), Federal Energy Regulatory Commission, 888 First Street N.E., Washington, DC 20426; and Desk Ofcer for FERC, Ofce of Information and Regulatory Affairs, Offce of Management and Budget Washington, DC 20503 (oira submission(âomb.eop.gov). Include the Control No. 1902..075 in any correspondence. FERC Form 556 Page 2 -Instructions Electronic Filing (eFiling) To electronically file your Form 556, visit the Commission's QF website at ww.ferc.govIOF and click the eFilng link. If you are eFilng your first document, you wil need to register with your name, email address.mailng address, and phone number. If you are registering on behalf of an employer, then you wil also need to provide the employer name, alternate contact name, alternate contact phone number and and alternate contact email. Once you are registered, log in to eFilng with your registered email address and the password that you created at registration. Follow the instructions. When prompted, selec one of the following Qr-related filing types, as appropriate, from the Electric or General filing category. Filng category Filng Type as listed in eFilng Description Use to submit an application for (Fee) Application for Commission Cert. as. Cogeneration QF Commission certifcation or Commission recertification of a cogeneration facilty as a QF. Use to submit an application for Commission certification or (Fee) Application for Commission Cert. as Small Power QF Commission recertification of a small power production facility as a QF. Use to submit a notice of self- Self-Certification Notice (QF, EG, FQ certification of your facilty (cogeneration or small power production) as a QF. Electric Use to submit a notice of self- Self-Recertification of Qualifying Facility (QF) recertification of your facility (cogeneration or small power production) as a QF. Use to corre or supplement a Form 556 that was submitted with errors or omissions, or for which Commission staff has requested additional information. Do not use Supplemental Information or Request this filing type to report new changes to a facility or its ownership; rather, use a self- recertifcation or Commission recertifcation to report such changes. Use to submit a petition for declaratory order granting a waiver of Commission QF regulations pursuant to 18 C.F.R. §§ 292.204(a) General (Fee) Petition for Declaratory Order (not under FPA Part 1)(3) and/or 292.205(c). A Form 556 is not required for a petition for declaratory order unless Commission recertification is being requested as part of the petition. You wil be prompted to submit your filing fee, if applicable, during the elecronic submission process. Filng fees can be paid via electronic bank account debit or credit card. During the eFilng process, you wil be prompted to selec your file(s) for upload from your computer. FERC Form 556 Page 3 - Instructions Filng Fee No filing fee is required if you are submitting a self-eertification or self-recertification of your facilit as a QF pursuant to i 8 c.F.R. § 292.207(a). A filing fee is required if you are filing either of the following: (1) an application for Commission certification or reertification of your facilty as a QF pursuant to i 8 C.F.R. § 292.207(b), or (2) a petition for declaratory order granting waiver pursuant to i 8 C.F.R. §§ 292.204(a)(3) and/or 292.205(c). The current fees for applications for Commission certifcations and petitions for declaratory order can be found by visiting the Commissi.on's QF website at ww,ferç.gov¿çF and clicking the Fee SChedule link. You wil be prompted to submit your filing fee, if applicable, during the electronic filing process described on page 2. Required Notice to Utilties and State Regulatory Authorities Pursant to 18 C.F.R. § 292.207(a)(ii), you must provde a copy of your self-eertification or request for Commission certifcation to the utilties with which the facility wil interconnec and/or transact, as well as to the State regulatory authorities of the states in which yourfacilit and those utilties reside. Links to information about the regulatory authorities in various states can be found by visiting the Commission's QF website at ww,ferc.gov¿çF and clicking the Notice Requirements link. What to Expect From the Commission After You File An applicant filing a Form 556 elecronically wil receive an email message acknowledging receipt of the filing and shoing the docke number assigned to the filing. Such email is typically sent within one business day, but may be delayed pending confirmation by the Secretary of the Commission of the contents of the filing. An applicant submitting a self-eertification of QF status should expect to receive no documents from the Commission, other than the elecronic ackowledement of receipt described above. Consistent with its name, a self-eertifcation is a certification by the applicant itself that the facilty meets the relevant requirements for QF status, and does not involve a determination by the Commission as to the status of the facilty. An ackowledgement of receipt of a self-ertlfication, in particular, does not represent a determination by the Commission with regard to the QF status of the facilty. An applicant self-eertifng may, howev, receive a rejection, revocation or defiiency letter if its application is found, during periodic compliance reviews, not to comply with the relevant requirements. An applicant submittng a request for Commission certifcation wil receive an order either granting or denying certification of QF status, or a leter requesting additional information or rejecting the application. Pursuant to 18 C.F.R. § 292.207(b)(3), the Commission must act on an application for Commission certification within 90 days of the later of the filing date of the application or the filing date of a supplement, amendment or other change to the application. Waiver Requests i 8 C.F.R. § 292.204(a)(3) allows an applicant to request a waiver to modify the method of calculation pursuant to i 8 C.F.R. § 292.204a)(2) to determine if two facilties are considered to be locted at the same site, for good cause. i 8 C.F.R. § 292.205(c) allows an applicant to request waiver of the requirements of i 8 C.F.R. §§ 292.205(a) and (b) for operating and efciency upon a showing that the facilty wil produce signifcant energy savings. A request for waiver of these requirements must be submitted as a petition for declaratory order, with the appropriate filing fee for a petition for declaratory order. Applicants requesting Commission recertcation as part of a request for waiver of one of these requirements should electronically submit their completed Form 556 along with their petition for declaratory order, rather than filing their Form 556 as a separate request for Commission recertification. Only the filing fee for the petition for declaratory order must be paid to cover both the waiver request and the request for recertification if such requests are made simultaneously. i 8 C.F.R. § 292.203(d)(2) allows an applicant to request a waiver of the Form 556 filing requirements, for good cause. Applicants filing a petiton for declaratory order requesting a waiver under 18 C.F.R. § 292.203(d)(2) do not nee to complete or submit a Form 556 with their peition. FERC Form 556 page 4 -Instructions Geographic Coordinates If a street address does not exist for your facility, then line 3c of the Form 556 requires you to report your faciltys geographic coordinates (latitude and longitude). Geographic coordinates may be obtained from several different sources. You can find links to online services that show latitude and longitude coordinates on online maps by visiting the Commission's QF webpage at ww.ferc.govtOF and clicking the Geographic Coordinates link. You may also be able to obtain your geographic coordinates from a GPS device, Google Earth (available free at http:/earth.google.com), a propert survey, various engineering or construction drawings, a propert deed, or a municipal or county map showing propert lines. Filng Privileged Data or Critical Energy Infrastructure Information in a Form 556 The Commission's regulations provide procedures for applicants to either (1) request that any information submitted with a Form 556 be given privileged treatment because the information is exempt from the mandatory public disclosyre requirements of the Freeom of Information Act, 5 U.S.C § 552, and should be withheld from public disclosure; or (2) identif any documents containing critical energy infrastructure information (CEil as defined in 18 CF.R. § 388.113 that should not be made public. If you are seeking privileged treatment or CEil status for any data in your Form 556, then you must follow the procedures in 18 CF.R. § 388.112. See ww.ferc.gov/help/fiing=guidetfle-eii.aspfor more information. Among other things (see 18 CF.R. § 388.112 for other requirements), applicants seeking privileged treatment or CEil status for data submitted in a Form 556 must prepare and file both (l a complete version ofthe Form 556 (containing the privileged and/or CEil data), and (2) a public version of the Form 556 (with the privileged and/or CEil data redacted). Applicants preparing and filing these diferent versions of their Form 556 must indicate below the securit designation of this version of their document. If you are not seeking privileged treatment or CEil status for any of your Form 556 data, then you should not respond to any of the items on this page. Non-Public: Applicant is seeking privileged treatment and/or CEil status for data contained in the Form 556 lines o inciicated below. This non-public version of the applicant's Form 556 contains all data, including the data that is redacted in the (separate) public version of the applicant's Form 556. Public (reacted): Applicant is seeking privileged treatment and/or CEil sttus for data contained in the Form 556 lines o indicated below. This public version of the applicants's Form 556 contains ¡!II data except for data from the lines indicated below, which has been redacted. Priileged: Indicate below which lines of your form contain data for which you are seeking pnvileged treatment Critical Energy Infrastructure Information (CEIl): Indicate below which lines of your form contain data for which you are seeking CEil status The eFilng process described on page 2 wil allow you to identif which versions of the elecronic documents you submit are public, privileged and/or CEil. The filenames for such documents should begin with "Public", "Priv", or "CEIl", as applicable, to clearly indicate the security designation of the file. Both versions of the Form 556 should be unaltered PDF copies of the Form 556, as available for download from www.ferc.gov/OF. To redact data from the public copy of the submital, simply omit the relevant data from the Form. For numerical fields, leave the redacted fields blank. For text fields, complete as much of the field as possible, and replace the redacted portions of the field with the word "REDACTED" in brackets. Be sure to identify above all fields which contain data for which you are seeking non-public status. The Commission is not responsible for detecting or correcting filer errors, including those errors related to security designation. If your documents contain sensitive information, make sure they are filed using the proper security designation. FEDERAL ENERGY REGULATORY COMMISSION WASHINGTON, DC F 0 r m. 5 5 6 Certification of Qualifying Facility (QF) Status for a Small PowerProduction or Cogeneration Facility OMS Control # 1902-0075 Expiration 5/3112013 1a Full name of applicant (legal entity on whose behalf qualifyng facilty status is sought for this facilty) Western Desert Energy 1,LLC 1 b Applicant street address 1770 West State Street #317 1c City 1d State/province Boise Idaho 1e Postl code 1f Country (if not United States)1 9 Telephone number 83702 (541)521-5549 1h Has the instant facilit ever previously been certified as a QF?Yes 0 No iz 1i if yes, provide the docket number of the last known QF filing perining to this facilty QF ----- 1j Under which certifcation process is the applicant making this filing? iz Notice of self"Certification o Application for Commission certifcation (requires filingc:(see note below)fee; see "Filng Fee" secon on page 3) 0 Note: a notice of self..rtifieaion is a notice by the applicat itslf that its facili complies with the requirements for..¡ QF statUs. A notice of self "Certification does not establish a proceeing, and the Commission does not review a(' E notice of self-certification to verify compliance. See the "What to Expect From the Commission After You File" "-secion on page 3 for more information. J2 1k What ty(s) of QF statusis the applicant seeking for its fadlity? (check all that apply)c:- c:iz Qualifng small power production facilit status o Qualifing cogeneration fadlit status0"P 1. What i$the purpose and expeced efecive date(s) ofthis filing?('.~iz Original certcation; facilit expeced to be installed by 12/1/12 and to begin operation on 12/1/12 1S o Change(s) to a previously certifed facilit to be effecive on0-c:(identify type(s) of change(s) below, and describe change(s) in the Miscellaneous secion starting on page 19) o Name change and/or other administrative change(s) o Change in ownership o Change(s) affecting plant equipment, fuel use, power production capàcit and/or cogeneration thermal output o Supplement or correction to a previous filing submitted on (describe the supplement or correcion in the Miscellaneous secion starting on page 19) 1m If any of the following three statements is true, check the box(es) that describe your situation and complete the form to the exent possible, explaining any special circumstances in the Miscellaneous section starting on page 19. o The instant facilty complies with the Commission's QF requirements by virte of a waiver of certain regulationspreviously granted by the Commission in an order dated (specify any other relevant waiver orders in the Miscellaneous secion starting on page 19) o The instant facilit would comply with the Commission's QF requirements if a petition for waiver submitedconcurrently with this application is granted The instant facility complies with the Commission's regulations, but has special circumstances, such as the o employment of unique or innovative technologies not contemplated by thé structure of this form, that make the demonstration of compliance via this form diffcult or impossible (describe in Misc. section starting on p. 19) o o oo o o FERC Form 556 Page 6 - All Facilties 2a Name of contact person 2b Telephone number Sandy Sanderson (541) 521-5549 2c Which of the following describes the cont¡:ct person's relationship to the applicant? (check one) i:o Applicant (self)o Employee, owner or partner of applicant authorized to represent the applicant 0 i; Employee of a company affliated with the applicant authorized to represent the applicant on this matter+:ra o Lawyer, consultant, or other representative authorized to represent the applicant on this matterE 2d Company or organization name (if applicant is an individual, check here and skip to line 2e) 0~ J2 Western Desert Energy 1,LLCi:-,¡2e Street address (if same as Applicant, check here and skip to line 3a) i;Ura,¡i:0U 2f City 29 State/province 2h Postal code 2i Country (if not United States) 3a Facilty namei:Western Desert Energy 1,Wind Proj ect0+:3b Street address (if a street address does not exist for the facilty, check here and skipto line 3c)i;raU0.. '"i:ra 3c Geographic coordinates: If you indicated that no street address exists for your facilty by checking the box in line 3b,i:then. you must spec, tbelatitude and longitude coordinates of the facilty in degre (to three deçimal places). Use0the following formula to convert to decimal degrees from degrees, minutes and seconds: deçimal degres =''¡ ra degrees + (minutes/60) + (seconds/3600).See the "Geographic Coordinates" secion on page 4 for help. If youUprovided a street address for your facilty in line 3b, then specifing the geographic coordinates below is optional.~''¡ o East(+)i; North (+)i:Longitude 116.960 degrees Latitude 43.130 degreesQ)i; WestH o Soutb(-)'"~3d City (if unincorporated, check here and enter nearest city) C8 3e State/province ,,!Jordan Valley Oregon .0 3f County (or cheçk here for independent city) 0 ra 39 Country (if not United States)LL Owyhee County,Idaho . Identify the electric utilties that are contemplated to transact with the facility. VI . Q)4a Identify utilty interconnecting with the facilty :€Idaho Power Company +::)4b Identify utilties providing wheeling service or check here if none 0 O'Idaho Power Companyi:,¡4c Identif utilties purchasing the useful elecric power output or check here if none 0uroIdaho Power CompanyVIi:ra 4d Identify utilties providing supplementary power, backup power, maintenance power, and/or interruptible power~i-service or check here if none 0 Idaho Power Company o o o o o o FERC Form 556 Page 7 - All Facilties Sa Direct ownt!rship as of efecive date or operation date: Identify all direc owners of the facility holding at least 10 percent equity interest. For each identified owner, also (1) indicate whether that owner is an electric utilty, as defned in seion 3(22) of the Federal Power Act (16 U.S.c. 796(22)), or a holding company, as defned in secion 1262(8) of the Public Utilty Holding Company Act of 2005 (42 U.S.c. 16451(8)), and (2) for .owners which are elecric utilties or holding companies, provide the percentage of equity interest in the facilit held by that owner. It no direc owners hold at least 10 percent equity interest in the facility, then provide the required information for the two direc owners with the largest equit interest in the facilty. Elecric utilty or It Yes, holding % equity Full legal names of direc owners company interest 1)Brad Christianson YesD No ~% 2)Craig Christianson YesD No ~% 3) Mike Chase YesD No~% 4)YesD NoD % 5)YesD NoD % 6)YesD NoD % 7)YesD No D % 8)YesD No D %i:0 9)YesD No D %.'¡ (0 10)YesD No D %-(J o Check here and continue in the. Miscellaneous section starting on page 19 ifadditional space is neededc.0 "'Sb UPsream (i.e., indirec) ownership as of èffective date or operation date: Identifall upstream (i.e., indirect) ownersc:of the facilit that both (1) hold at least 10 percent equity interest in the facilit, and (2) are elecric utilties, as(0c.defint! in seign3(22) of the Federal PowerAct (16 U.S.C. 796(22)), or holding companies, as defined in section.-1262(8) of thep;ublic Utlity Holding Company Act of 2005 (42 U.s.c. 16451 (8)). Also provide the percentage of.iII equity interest in the facilit held by such owners. (Note that, because upsream owners may be subsidiaries of one-another, total percent equity interest reported may excee 100 percent.)(Jc: ~Check here if no such upstream owners exist. ~0 % equity Full legal names of elecric utilty or holding company upstream owners interest 1 )% 2)% 3)% 4)% 5)% 6)% 7)% 8)% 9)% 10)% D Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed Se Identify the facility operator Western Desert Energy i,LLC o FERC Form 556 Page 8 - All Facilities 6a Describe the primary energy input (check one main category and, if applicable, one subcategory) o Biomass (specify) o Landfill gas o Geothermal o Fossil fuel (specify) o Coal (not waste) o Fuel oil/diesel o Natural gas (not waste) rg Renewable resources (specify) o Hydro power - river o Hydro power - tidal o Hydro power - wave o Solar - photovoltaic o Solar - thermal o Other biomass (describe on page 19) 18 Wind o Other renewable resource 0 Other (describe on page 19)(describe on page 19) 6b If you specifed "waste" as the primary energy input in line 6a, indicate the type of waste fuel used: (check one) o Manure digester gas o Municipal solid waste o Sewage digester gas o Wood Other fossil fuel o (describe on page 19) o Waste (specify tye below in line 6b) +-::0-C~01i. QJc:W o Waste fuel listed in 18 CF.R. § 292.202(b) (specif one of the following) o Anthracite culm produced prior to July 23, 1985 o Anthracite refuse that has an average heat content of 6,000 Btu or less per pound and has an averageash content of 45 percent or more o Bituminous coal refuse that has an average heat content of 9,500 Btu per pound or less and has anaverage ash content of 25 percent or more . Top or bottom subbituminous coal produced on Federal lands or on Indian lands that has been determined to be waste by the United States Department of the Interiots Bureau of land Managemento (BLM) or that is located on non-Federal or non-lndian lands outside of BLM's jurisdiction, provided that the applicant shows that the latter coal is an exension of that determined by BLM to be waste Coal refuse produced on Federal lands or on Indian lands that has ben determined to be waste by the o BlM or that is located on non- Federal or non-Indian hands outside of BLM's jurisdiction, provided that applicant shows that the latter is an exension of that determined by BLM to be waste o lignite produced in association with the production of montan wax and lignite that becomes exposeas a result of such a mining operation o Gaseous fuels (except natural gas and synthetic gas from coal) (describe on page 19) Waste natural gas from gas or oil wells (describe on page 19 how the gas meets the requirements of 18 o C.F.R. § 2.400 for waste natural gas; include with your filing any materials necessary to demonstrate compliance with 18 C.F.R. § 2.400) o Materials that a government agency has certified for disposal by combustion (describe on page 19) o Heat from exothermic reactions (describe on page 19) 0 Residual heat (describe on page 19) o Used rubber tires 0 Plastic materials 0 Refinery off-gas 0 Petroleum coke Other waste energy input that has little or no commercial value and exists in the absence of the qualifing o facility industry (describe in the Miscellaneous section starting on page 19; include a discussion of the fuel's lack of commercial value and existence in the absence of the qualifying facilit industry) 6c Provide the average energy input, calculated on a calendar year basis, in terms of Btulh for the following fossil fuel energy inputs, and provide the related percentage of the total average annual energy inputto the facilty (18 C.F.R. § 292.2020)). For any oil or natural gas fuel, use lower heating value (18 C.F.R. § 292.202(m)). Fuel Natural gas Oil-based fuels Coal Annual average energy input for specified fuel Percentage of total annual energy input 0%o Btulh o Btu/h o Btu/h 0% 0% FERC Form 556 Page 9 - All Facilties Indicate the maximum gross and maximum net elecric power production capacity of the facility at the point(s) of delivery by completing the worksheet below. Respond to all items. If any of the parasitic loads and/or losses identifed in lines 7b through 7e are negligible, enter zero for those lines. 7a The maximum gross power production capacity at the terminals of the individual generator(s) under the most favorable anticipated design conditions 2,500 kW 7b Parasitic station power used at the facility to run equipment which is necessary and integral to the power production process (boiler feed pumps, fans/blowers, offce or maintenance buildings direcly related to the operation of the power generating facility, etc.). If this facility indudes non- power prpuction processe (for instnce, power consumed by a cogeneration facilty's thermal host , do not indude any power consumed by the non-power production activities in yourreported parasitic station power. 6 . 2 kW 7c Eleciiallosses in interconnection transformers 18.7 kW 7d Elecrical losses in ACIDC conversion equipment, if any o kW 7e Other interconnecion losses in power lines or facilities (other than transformers and ACIC conversion equipment) between the terminals of the generator(s) and the point of interconnection with the utilit 7f Total deductions from gross power production capacity = 7b + 7c + 7d + 7e 25 kW 49.9 kW 0i:o+:ta E:i~c: .€- 1:;tau- ta.~i:.ru~ 7g Maximum net power production capacity = 7a - 7f 2,450.1 kW 7h Description of facilty and primary components: Describe the facility and its operation. Identify all boilers, heat recovery steam generators, prime movers (any mechanical equipment driving an elecric generator), elecrical generators, photovoitaic solar equipment, fuel cell equipment and/or other primary power generation equipment osed in the facilit. Descptions of components should include (as applicable) specifcations of the nominal capacites for mechanical output, elecrical output or steam generation of the identifed equipment. For each piece of equipment identifed, clearl indicate how many pieces of that type of equipment are included in the plant, and which components are normally operating or normally in standby mode. Provide a descripton of how the components operate as a system. Applicants for cogeneration facilities do not need to describe operations of sysems that are c1early depicted on and easily understandable from a cogeneration facilitys attached mass and heat balance diagram; however, such applicants should provide any necessary description neeed to understand the sequential operation of the facility depicted in their mass and heat balance diagram. If additional space is needed, continue in the Miscellaneous section starting on page 19. Western Desert Energy 1f LLC will consist of two 2.5 MW GE 100 meter wind turbines. FERC Form 556 Page 10 - Small Power Production Information Required for Small Power Production Facility If you indicated in line 1 k that you are seeking qualifying small power production facilty status for your facility, then you must respond to the items on this page Otherwise, skip page 10 Pursuant to 18 C.F.R. § 292.204(a), the power production capacity of any small power production facility, together with the power production capacity of any other small power production facilties that use the same energy resource, are owned by the same person(s) or its affliates, and are located at the same site, may not exceed 80 megawatts. To demonstrate compliance with this size limitation, or to demonstrate that your facility is exempt from this size limitation under the Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990 (Pub. L. 101-575,104 Stat. 2834 (1990) as amended by Pub. L.l02-4, 105 Stat. 249 (1991)), respond to lines 8a through 8e below (as applicable). QJus: .æ ~- 0a. ._ E 10 (3 'ê '0 :: s: QJ .2 .~ol Vl ro .su \¡ ol t: .~ QJU QJus:ro a. Eou~o s:o+:rou(¡'.j~ QJU 8a Identify any facilities with elecrical generating equipment located within 1 mile of the elecrical generating equipment of the instant facility, and for which any of the entities identified in lines 5a or 5b, or their affliates, holds at least a 5 percent equity interest. Check here if no such facilties exist. I: Facility location (city or county, state) o Root docket # (if any) Maximum net power production capacitCommon owner(s) 1 )QF -kW-- 2)QF -kW-- 3)QF -kW-- VIols: QJ E QJ~.-:J C- O)cc QJVI:J 0):JU-.s.~ ~ o Check here and continue in the Miscellaneous section starting on page 19 if additional space is neeed 8b The Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990 (Incentives Act) provides exemption from the size limitations in 18 C.F.R. § 292.204a) for certin facilties that were certifed prir to 1995. Are you seeking exemption from the size limitations in 18 C.F.R. § 292204(a) by virtue of the Incentives Act? o Yes (continue at line 8c below) I: No (skip lines Bc through 8e) 8e Was the original notice of self-certification or application for Commission certification of the facility filed on or before December 31, 19941 YesD No 0 8d Did construction of the facility commence on or before December 31, 1999? Yes 0 No 0 8e If you answered No in line 8d, indicate whether reasonable dilgence was .exercised toward the completion of the facility, taking into account all factors relevant to construction? Yes 0 No 0 If you answered Yes, provide a brief narrative explanation in the Miscellaneous section starting on page 19 of the construction timeline (in particular, describe why construction started so long after the facilty was certified) and the dilgence exercised toward completion of the facility. Pursuant to 18 C.F.R. § 292.204(b), qualifying small power production facilties may use fossil fuels, in minimal amounts, for only the following purposes: ignition; start-up; testing; flame stabilzation; control use; alleviation or prevention of unanticipated equipment outages; and alleviation or prevention of emergencies, direcly affecting the public health, safety, or welfare, which would result from electric power outages. The amount of fossil fuels used for these purposes may not exceed 25 percent of the total energy input of the facilty during the 12-month period beginning with the date the facilty first produces electric energy or any calendar year thereafter. o 9a Certification of compliance with 18 C.F.R. § 292.204(b) with respect to uses offossil fuel: I: Applicant certifies that the facilty wil use fossil fuels exclusively for the purposes listed above. 9b Certification of compliance with 18 C.F.R. § 292.204(b) with respect to amount of fossil fuel used annually: Applicant certifies that the amount of fossil fuel used at the facilty wil not, in aggregate, exceed 25 I: percent of the total energy input of the facilty during the 12-month period beginning with the date the facility first produces electric energy or any calendar year thereafter. FERC Form 556 Page 11 - Cogeneration Facilities Informati,onRequired for Cogeneration Facilty If you incficated in line lk that you are seeking qualifying cogeneration facilty status for your facilty, then you must respond to the items on paes 11 through 13. Otherwise, skip pages 11 through 13. Pursuant to 18 C.F .R. § 292.202((;), a cogeneration facilit produces elecric energy and forms of useful thermal energy (such as heat or steam) usec for industrial, commercial, heating, or cooling purposes, through the sequential us of energy. Pursuant to 18 C.F.R. § 292.202(s), "sequential use" of energy means the following: (1) for a topping- cycle cogeneration facilty, the use of rejec heat from a power production process in suffcient amounts in a thermal application or process to conform to the requirements of the operating standard contained in 18 C.F.R. § 292.205(a)¡ or (2) for a pottoming-ecle cogeneration facilit, the use of at least some rejec heat from a thermal application or process for power production. 10a What type(s) of cogeneration technology does the facility represent? (check all that apply) o Topping-ccle cogeneration o Bottoming-ccle cogeneration 10b To help demonstrate the sequential operation of the cogeneration process, and to support compliance with other requirements such as the operating and efciency standards, include wit your filing a mass and heat balance diagram depicting average annual operating conditions. This diagram must include cerain items and meet certain requirements, as describe below. You must check nex to the description of each requirement below to certif that you have complied with these requirements. Check to certify compliance wih indicaed requirement Requirement Diagram must show orientation witin sysem piping and/or duet of all prime movers, c:heat recovery steam generators, boilers, elecric generators, and condensers (as0D-.¡applicable), as well as any other primary equipment relevant to the cogeneration et process.:i i:c:0 Any average annual values required to be reported in lines 10b, 12a, 13a, 13b, 13d, 13f,c:+:Dc:14a, 15b, 15d and/or 15f must be computed over the anticipated hours of operation.C'et 0 E Diagram must specify all fuel inputs by fuel type and average annual rate in Btul. FuelU:i-J2 D for supplemertary firing should be specified seParately and clearly labeled. Alleti:specifcaions of fuel inputs should use lower heating values.:i -c:c:D Diagram must specif average gross electric output in kW or MW for each generator.c:'"Diagram must specify average mechanical output (that is, any mechanical energy taken D off of the shaft of the prime movers for purposes not direcly related to elecric power generation) in horsepower, if any. Typically, a cogeneration facilty has no mechanical output. At each point for which working fluid flow conditions are required to be specified (see below), such flow condition data must include mass flow rate (in Ib/h or kg/s), temperature (in OF, R, °C or K), absolute pressure (in psia or kPa) and enthalpy (in Btullb or kJ/kg). Exception: For systems where the working fluid is liquid only (no vapor at any D point in the cycle) and where the type of liquid and specific heat of that liquid are clearl indicated on the diagram or in the Miscellaneous secion starting on page 19, only mass flow rate and temperature (not pressure and enthalpy) need be specifed. For reference, specifc heat at standard conditions for pure liquid water is approximately 1.002 Btu/ (Ib*R) or 4.195 kJ/(kg*K). D Diagram must specif working fluid flow conditions at input to and output from each steam turbine or other expansion turbine or back-pressure turbine. D Diagram must specify working fluid flow conditions at delivery to and return from each thermal application. D Diagram must specify working fluid flow conditions at make-up water inputs. o o FERC Form 556 ... Page 12 - Cogeneration Facilities Q) VIVI Q) ~ E B .üC to Q) u. E cto 0 '" :¡ c: to :i ~u. Q)c: ~ Q)~ ~VI 0.. u ID E E 0Q) J=.: ..:i :i 0" 0- QJ ..a: :ii. 0o ~o ~N '-.. Q)U c:c: wc. i.W 0 EPAct 2005 cogeneration facilities: The Energy Policy Act of 2005 (EPAct 2005) established a new.secion 210(n) of the Public Utilty Regulatory Policies Act of 1978 (PURPA), 16 USC 824a-3(n), with additional reqlJirements for any qualifing cogeneration facility that (1) is seeking to sell electric energy pursuant to section 210 of PURPA and (2) was either not a cogeneration facility on August 8, 2005, or had not filed a self-eertificat10n or application for Commission certifcation of QF status on or before February 1, 2006. These requirements were implemented by the Commission in 18 C.F.R. § 292.205(d). Complete the lines below, carefully following the instructions, to demonstrate whether these additional requirements apply to your cogeneration facilty and, if so, whether your facilit complies with such requirements. 11 a Was your facility operating as a qualifying cogeneration facilty on or before August 8, 2oo5? Yes D No D 0 11 b Was the initial filing seeking certification of your facilit (whether a notice of self-eertification or an application 0 for Commission certification) filed on or before February 1, 2006? Yes D No D If the answer to either line 11aor 11b is Yes, then continue at line 11c below. Otherwise, if the answers to both lines 11 a and 11 b are No, skip to line 11 e below. 11 c With respect to the design and operation of the facilty, have any changes been implemented on or after 0 February 2, 2006 that affect general plant operation, affect use of thermal output, and/or increase net power production capacity from the plant's capacity on February 1, 2006? D Yes (continue at line 11 d below) No. Your facility is not subjec to the requirements of 18 C.F.R. § 292.205(d) at this time. However, it may be D subjec to to these requirements in the future if changes are made to the facilty. At such time, the applicant would need to recertif the facilty to determine eligibilty. Skip lines 11 d through 11j. 11d Does the applicant contend that the changes identified in line 11 c are not so signifcant as to make the facility 0 a "new" cogeneration facility that would be subjec to the 18 C.F.R. § 292.205(d) cogeneration requirements? Yes. Provide in the Miscellaneous secion starting on page 19 a description of any relevant changes made to D the facilty (including the purpose of the changes) and a discussion of why the facility should not be considered a "new" cogeneration fadlit in light ofthese changes. Skip lines 11e through 11j. No. Applicant stipulates to the fact that it is a "new" cogeneration fadlity (for purposes of determining the D applicabilit of the requirements of 18c.F.R. § 292.205(d)) by virtue of modifications to the facilit that were initiated on or after February 2, 2006. Continue below at line 11 e. 11 e Wil elecric energy from the facilty be sold pursuant to section 210 of PURPA? 0 D Yes. The facilty is an EPAct 2005 cogeneration fadlity. You must demonstrate compliance with 18 C.F.R. §292.205(d)(2) by continuing at line 11f below. No. Applicant certifies that energy wil not be sold pursuant to secion 210 of PURPA. Applicant also certifes D its understanding that it must recertify its facility in order to determine compliance with the requirements of18 C.F.R. § 292.205(d) before sellng energy pursuant to section 210 ofPURPA in the future. Skip lines 11f through 11j. 11f Is the net power production capacit of your cogeneration facility, as indicated in line 7g above, less than or 0 equal to 5,00 kW? Yes, the net power production capacity is less than or equal to 5,000 kW. 18 C.F.R. § 292.205(d)(4) provides a rebuttable presumption that cogeneration facilties of 5,000 kW and smaller capacity comply with the D requirements for fundamental use of the faciltys energy output in 18 C.F.R. § 292.205(d)(2). Applicantcertifies its understanding that, should the power production capacity of the facilty increase above 5,000 kW, then the facilty must be recertified to (among other things) demonstrate compliance with 18 C.F.R. § 292.205 (d)(2). Skip lines 11 g through 11 j. No, the net power production capacity is greater than 5,000 kW. Demonstrate compliance with the D requirements for fundamental use of the facilitys energy output in 18 C.F.R. § 292.205(d)(2) by continuing on the next page at line 11 g. FERC Form 556 Page 13 - Cogeneration Facilities ,."' CI;jc:CI .-V\ ...t:: c:_ 0 to V..-c: ~Q) ..E ~to 'Ü -g ~ :: c:LL 0 i- '.¡ ~ ~ !l CI c: c: Q) CIE g~ U 'S E0" 0 ~ J=i. ..o ;jo .eN ;j..0 ~ ~0. i-UJ CI c:UJ\+o Unesi 1 gthrough 11 k below guide the applicant through the process of demonstrating compliance with the requirements for "fndamental use" of the faciltys energy output. 18 C.F.R. § 292.205(d)(2). Only respond to the lines on this page if the instructions on the previous page direct you to do so. Otherwise, skip this page. 18 C.F.R. § 292.205(d)(2) requires thatthe elecrical, thermal, chemical and mechanical output of an EPAct 2005 cogenertion facilit is used fundamentally for indusrial, commercial, residential or instituional purposes and is not intended fundamentally for sale to an elecric utilty, taking into account technological, efciency, economic, and varible thermal energ requirements, as well as stte laws applicable to sales of elecic energy from a qualifngfacility to its hos facilit. If you were directed on the previous page to respond to the items on this page, then your facilit is an EPAct 2005 cogeneration facilit that is subjec to this "fndamental use" requirement. The Commission's regulations provide a two-pronged approach to demonstrating compliance with the reqHire.ients for fundamental i.se of the facilits energy outpiJ. First the Commission has established in 18 C.F.R. § 29í.205(d)(3) a "fundamental use test" that can be used to demonstrate compliance with 18 C.F.R. § 292.205(d)(2). Under the fundamental use test, a facilit is considered to comply with 18 C.F.R. § 292.205(d)(2) if at least 50 percent of the facilits total annual energy output (including elecrical, thermal, chemical and mechanical energy output) is 'used for industrial, commercial, residential or institutional purposes. Second, an applicant for a f~cility that does not pass the fundamental use test may provide a narrative explanation of and support for its contention that the facility nonetheless meets the requirement that the electrical, thermal, chemical and mechanical output of an EPAct 2005 cogeneration facilit is used fundamentally for industrial, commercial, residential or institonal purposes and is not intended fundamentally for sale to an elecic utilty, taking into account tecnólógical,efcieiicy, economic, and variable thermal energy requirements, as well as state laws applicable to sales of elecric .energy from a qualifyng facilty to its host facilty. Complete lines 11 g through 1.1j below to determine compliance with the fundamental use test in 18 C.F.R. § 292.205(d)(3). Complete lines 11 g through 11 j even if you do not intend to rely upon the fundamental use test to demonstrate compliance with 78 C.F.R. § 292.205(d)(2). 11 g Amount of elecrical, thermal; chemicl and mechanical ellrgy output (net of internal generation plant losses and parasitic loads) expeçted to be used anlually for industrial, commercial, residential or instittional purpses and not sold to an elecric utilit MWh 11 h Total amount of elecrical, therral, chemical and mechanical energy eXpeced to besold to an electric utilit MWh 11i Percentage of total annual energy output execed to be used for industrial, 0 commercial, residential or instituional purposes and not sold to a utilty= 100 * 11 g 1(11 g + 11 h) 0 % 11j Is the response in line 11 i greater than or equal to 50 percent? Yes. Yourfalit complies wi 18 C.F.R. § 292.205(d)(2) by virtue of passing the fundamental use test provided in 18 c.F.R. § 292.205(d)(3). Applicant certifes it undersanding that, if it is to rely upon passing o thefundamenta.1 use test as a basis for complying with 18 C.F.R.§ 292.20S(d)(2),then the facilty must comply with the fundamental use te both in the 12-month periOd beginning with the date the facility first produces elecric enérgy, and in all subsequent calendar years. No. Your facilit does not pass the fundamental use test Instead,you-rl'ust provide in the Miscellaneous secion starting on page 19 a narrtive explanation of and support for why your facilit mee the reuirementthcl the eleccal; thermal, chemical and meanical out of an EPAct 2005 cogeneration facilit is used fundamentally for Industrial, commerCial, residential or institutonal purposes and is not intended fundarrntaUyfor saleto an electric utilty, taking into accounttehnological¡ efciency, economic, and vanable thermal energy requirement, as well as state laws applicble to sales oi elecncenergy from a QF to its host facility. Applicants providing a narrative explanation of why their facilty should be found to o comply with 18 C.F.R. § 292.205(d)(2) in spite of non-eompliance with the fundamental use test may want to review paragraphs 47 through 61 of Order No. 671 (accessible from the Commission's QF website at ww.ferc.gov/QF), which provide discussion of the fact and circumstances that may support their explanation. Applicant should also note that the percentage reported àbove wil establish the standard that that facilty must comply with, both for the 12-month period beginning with the date the facilit first produces electric energy, and in all subsequent calendar years. See Order No. 671 at paragraph 51. As such, the applicant should make sure that it reports appropriate values on lines 11g and 11 h above to serve as the relevant annual standard, taking into account expeced variations In production conditions. FERC Form 556 Page 14 - Topping-CyçleCqgeneration Façilties Information Requ.ired for Topping-Cycle Cogeneration Facility If you indicated in line lOa that your facilty represents topping-ecle cogeneration technology, then you must respond to the items on pages 14 and 15. Otherwise, skip pages 14 and 15. The thermal energy output of a topping-ecle cogeneration facility is the net energy made available to an industrial or commercial process or used in a heating or cooling application. Pursuantto secions 292.202(c), (d) and (h) of the Commission's regulations (18 C.F.R. §§ 292.202(c), (d) and (h)), the thermal energy output of a qualifing topping- cycle cogeneration facilit must be usefuL. In connection with this requirement, describe the thermal output of the topping-ecle cogeneration facilit by responding to lines 12a and 12b below. 12a Identif and describe each thermal host, and specify the annual average rate of thenral output made available to each host for each use. For hosts with multiple uses of thermal output, provide the data for each use in separate rows.Average annual rate of thermal output attribuable to use.(net of Name of entity (thermal host)Thermal host's relationship to facility heat contained in process taking thermal output Thermal host's use of thermal Output return or make-upwater) 1) Select thermal host's relationshipto facility Select thermal host's use of thermal O!.tput Btulh 2)Select thermal host's relationship to facilit Q)Select thermal host's use of thermal output BtuhÜSelect thermal host's relationship to facility;:3)Ui Select thermal host's use of thermal output Btulh01 +oc: :;Select thermal host's relationship to facilit.- 0.4)0. +o0. :;Selec thermal host's use of thermal output Btuh~ 0 5)Selec thermal host's relationship to facilit\f ro0E Select thermal host's use of thermal output BtuhII~II Q)Select thermal host's relationship to faciltyQ).r 6)c:i-Selec thermal host's use of thermal output Btu/h ~D Check here and continue in the Miscellaneous section starting on page 19 ifadditional space is neededII::12b Demonstration of usefulness of thermal output: At a minimum, provide a brief description of each use of the thermal output identified above. In some cases, this brief description is suffcient to demonstrate usefulness; However, if your facilty's use of thermal output is not common, and/or if the usefulness of such thermal output is not reasonably clear, then you must provide additional details as necessary to demonstrate usefulness. Your application may be rejeced and/or additional information may be required if an insufcient showing of useflness is made. (Exception: If you have previously received a Commission certifcation approving a specific use of thermal output related to the instant facilit, then you need only provide a brief description of that use and a reference by date and docket number to the order certifying your facility with the indicated use. Such exemption may not be used if any change creates a material deviation from the previously authorized use.) If additional space is needed, continue in the Miscellaneous section starting on page 19, o FERC Form 556 Page 15 . Topping-Cycle Cogeneration Facilties "0 C æ 0 O" +:c ~.- :: .. uro _i- it~U o CV CV .a- itU :: 6' ~i UO" C C (V.a;gø. '+~W Applicants fòr facilities representing topping-ecle technology must demonstrate compliance with the topping- 0 cycle operating stndard and; if applicable, effciency standárd. Secion 292.205(a)(1) of the Commission's regulations (18 C.F.R. § 292.205(a)(1)) establishes the operating standard for topping-ecle cogeneration facilities: the useful thermal energy output must be no less than 5 pércent of the total energy output Section 292205(a)(2) (1 S C.F.R. § 29,2.205(a)(2)) establishes the effciency standatdfor topping;.cycle cogeneration failities for Which Inslaion ~mmenced on or after Marçh 13, 1980: the useful power output of the facility plus one-half the useful tllermal energy output must (A) be no less than 42.5 percent of the total energy input of natural gas i,nd oil to the fii/it .a'1d(B) if the useful thermal energ output is less than 15 percent of the total energy output of the facility, be no i~~s than 45 percent of the total energy input of natural gas and oil to the facilty. To demonstrate compliance with the topping-ecle operating and/or effciency stndards, or to demonstrate that your facilit is exempt from the effciency standardbas on the date that installation commenced, respond to lines 13a through 131 below. if you indicated in line lOa that your facilty represnts both topping-ecle and bottoming-ecle cogeneration téChnoløgy, then respond to lines 13a through 131 below considering only the energy input and outputs atttable to the topping-ccle portion of your facilty. Your mass and heat balance diagram must make clear which mass and energy flow values and system components are for which portion (topping or bottoming) of the cogenation system. 13á Indicae the annual average rate of usefl thermal energy output made available to the host(s), net of any heat contined in condensate return or make-up water Btuth lIb Indicate the annual average rate of net electcal energy output 13c Multiply line 13b by 3,412 to convert from iN to Btulh kW o Btuth 0 hl) o Btuth 0 Btuth 0%0 13d Indicate the annual average rate of mechanical energy outut taken directly off of the shaft of a prime mover for purposes not direcly related to power production (this value is usually zero) 13e Multiply line 13d by 2,54 to convert from hp to Btlh 13f Indicate the annual average rate of energy input from natural gas and oil .. 1.3g Topping-ecle operaing value = 100 * 13a / (13a + 13c + 13e) . l3h Topplng-ce effciency value = 100 * (05*13a + 13c + 13e) 113f o % 13i Compliance with operating standard: Is the operating value shown in line 13g greter than or equal to 5%? o Yes (compiles with operating standard) 0 No (does not comply wih operaing standard)o13j Did installation of the facilty in its current form commence on or after March 13, 1980? DYes. Your facilty is subject to the effciency requirements of 18 C.F.R. § 292.205(a)(2). Demonstratecompliance with the efciency requirement by responding to line 13k or 131, as applicable, below. o No. Your facilty is exempt from the effciency standard. Skip lines 13k and 131. 13k Compliance with efciency standard (for low operating value): If the operating value shown in line 13g is less than 15%, then indicate below whether the efciency value shown in line 13h greater than or equal to 45%: o Yes (complies with effciency standard)o No (does not comply with efciency standard) 131 Compliance with effciency standard (for high operating value): If the operating value shown in line 13g is greater than or equal to 15%, then indicate below whether the effciency value shown in line 13h is greater than or equal to 42.5%: o Yes (complies with effciency standard) 0 No (does not comply with efciency standard) FERC Form 556 Page 16 - Bottoming~Çycle Cogener~tion Facilities Information Required for Bottoming-Cycle Cogeneration Facility If you indicated in line 10a that your facilit represents bottoming-ccle cogeneration technology, then you must respond to the items on pages 16 and 17. Otherwise, skip pages 16 and 17. The thermal energy outputof a bottoming-ccle cogeneration facility is the energy related to the process(es) from which at least some of the rejec heat is then used for power production. Pursuant to secions 292.202(c) and (e) of the Commission's regulations (18 C.F.R. § 292.202(c) and (e)) , thethermal energy output of a qualifyng bottoming- cycle cogeneration facilit must be usefuL. In connecion with this requirement, describe the process(es) from which at least some of the reject heat is used for power production by responding to lines 14a and 14b below.. .. 14a Identify and describe each thermal host and each bottoming-ecle cogeneration process engaged in by each host. For hosts with multiple bottoming-cycle cogeneration processes, provide the data for each process in separate rows. QJ U~Ui 0' +J e: :J 'E Q. o "5~ 0 CO CO 'õ E II QJII .. QJ l-e: ~en~ o Name of entity (thermal host) performing the process from which at least some of the rejec heat is used for power production Has the energy input to the thermal host been augmented for purposes of increasing power production capacity? (if Yes, describe on p. 19) Thermal host's relationship to facility Thermal host's process type 1 ) select thermal host's relationship to facility Yes 0 No 0 Select thermal host's process type select thermal host's relationship to facility Yes 0 No 0 Selec thermal host's procss type Select thermal host's relationship to facilty Yes 0 No 0 Select thermal host's proess type o Check here and continue in the Miscellaneous secion starting on page 19 if additional space is needed 2) 3) 14b Demonstration of usefulness of thermal output: At a minimum, provide a brief description of each process identified above. In some cases, this brief description is sufcient to demonstate useflness. However, if your facilty's process is not common, and/or if the usefulness of such thermal output is not reasonably clear, then you must provide additional details as necessary to demonstrate usefulness. Your application may be rejeced and/or additional information may be required if an insuffcient showing of usefulness is made. (Exception: If you have previously received a Commission certifcation approving a specific bottoming-ecle process related to the instant facilty, then you need only provide a brief description of that process and a reference by date and docket number to the order certifing your facilty with the indicated process. Such exemption may not be used if any material changes to the process have been made.) If additional space is needed, continue in the Miscellaneous secion starting on page 19. FERC Form 556 Page 17 - Bottoming-Cycle Cogeneration Facilities "' c: c:ta 0tn.- c: +-._ ta+- - ~ aCI -C. ttaU CI CI_ ::u -:= ~ y :=tn uc: i:.- CLE .ü.s s+- Wocx ÄppíiCants for facilties representing bpttaming-gcle technology and for which instaUation corrmenced on or after March 13, 1990 must demonstrate compliance with the botoming-gcle effciency standards. Section 292.205(b) of the Commission's regulations (18 C.F.R § 292.205(b)) establishes the eficiency standard for bottoming-gcle cogenertion facilies; the usefl power output of the facilty must be no less than 45 percent of the energy input of natral gas and oil for supplementary firing. To demonstrate compliance with the bottoming--le efciency stndard (if applicable), or to demonstrate that your facility is exempt from this stndard based on the date that instllation of the facility began, respond to lines 15a through 15h below. If yau indicated in Hne 10a that your facility represents both topping-gcle and bottoming-gcle cogeneration technology, then respond to Hnes 15a through 15h below considering only the energy inputs and outputs attributable to the bottoming-gcle portion of your facility. Your mass and heat balance diagram must make clear which mass and energy flow values and system components are for which portion of the cogeneration system (topping or bottoming). 15a Did installation of the faciHty in its currt form commence on or after March 13, 19801 o Yes. Your facility is subjec to the effciency requirement of 18 C.F.R § 292.205(b). Demonstrate compliancewith the effciency requirement by responding to lines 15b through 15h below. o No. Your facilty is exempt from the efciency standard.. Skip the rest of page 17. 15b Indicte the annual average rate of net electrical energy output 15c Multiply Hne 15b by SA 12 to convert from kW to I;tulh 1Sd Indicate the annual average rate of mechanical energy output taken directly off of the shaft of a prime mover for purposes not direcly related to power production (this value is usually zero) 15e. Multply line 15d by 2,54 to convert from hp to Btulh 15f Indicate the annual average rate of supplementary energy input from natural gas or oil 159 Bottoming-gcle efciency value = 100 * (15e + 15e) /15f oo0% 15h Compliance with effciency standard: Inclicate below whether the efciency value shown in line 159 is greater than or equal to 45%: o Yes (complies with effciency standard)o No (does not comply with effciency standard) FERC Form 556 Page 18 - AUFacilities Certificate of Completeness, Accuracy and Authority Applicant must certify compliance with and understanding of filing requirements by checking nex to each item below and signing at the bottom of this seion. Forms with incomplete Certifcates of Completeness, Accuracy and Authority wil be rejeced by the Secretary of the Commission. Signer identified below certifies the following: (check all items and applicable subitems) He or she has read the filing, including any information contained in any attached documents, such as cogeneration iz mass and heat balance diagrams, and any information contained in the Miscellaneous secion starting on page 19, and knows its contents. iz He or she has provided all of the required information for certcation, and the provided information Îstrue as stated,to the best of his or her knowledge and belief. iz He or she possess full power and authority to sign the filing; as required by Rule 2oo5(a)(3) of the Commission's Rules ofPractice and Procedure (18 C.F.R. § 385.2005(a)(3)), he or she is one of the following: (check one) o The person on whose behalf the filing is made o An offcer of the corporation, trust, association, or other organized group on behalf of which the filing is made o An offcer, agent, or employe of the governmental authority, agency, or instrumentality on behalf of which thefiling is made t8 A representative qualified to practice before the Commission under Rule 2101 of the Commission's Rules of Practice and Procedure (18 C.F.R. § 385.2101) and who possesses authority to sign iz He or she has reviewed. all automatic calculations and agrees with their results, unless otherwise noted in theMiscellaneous section starting on page 19. . He or she has provided a copy of this Form 556 and all attachments to the utilites with which the facilit wil iz interconnec and transact (see lines 4a through 4d), as well as to the regulatory authorities of the states in which thefacilty and those utilties reside. See the Required Notice to Public Utilties and State Regulatory Authorities section on page 3 for more information. Provide your signature, address and signature date below. Rule 2oo5(c) of the Commission's Rule of Praeiceand Procedure (18 C.F.R. § 385.2005(c)) provides that persons filing their documents elecronically may use tyed characters representing his or her name to sign the filed documents. A person filing this document elecronically should sign (by typing his or her name) in the space provided below. Peter Richarsdson Your address 515 N. 27th Street Boise, Idaho 83702 DateYour Signature 6/27/2011 Audit Notes Commission Staff Use Only:o FERC Form 556 Page 19 . All Facilities Miscellaneous Use this space to provide any information for which there was not suffcient space in the previous sections of the form to provide. For each such item of information clearly identify the line number that the information belongs to. You may also use this space to provide any additional information you believe is relevant to the certification of your facilty. Your response below is not limited to one page. Additional page(s) wil automatically be inserted into this form if the length of your response exceeds the space on this page. Use as many pages as you require. BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.6 V to. no.lVLÀ ct ie \ ;oULtl fõ æ ~ æ 0 il æ f¡ O. til JUN 27 2011 ~c;B~ Sandy Sanderson, Consultant Western Desert Energy I, LLC 1770 W. State Street #330 Boise, Idaho 837024 (541) 521-5549 sandyaRgreenenergvwest. com June 24, 2011 Idaho Power Company Cogeneration and Small Power Production P.O. Box 70 Boise, Idaho 83707 1221 West Idaho Boise, Idaho 83702 (via U.S. Mail and Hand delivery) Re: 5 MW Wind QF Contract Request - Oregon Off-System Project Dear Sir or Madam: Please accept this request for an Energy Sales Agreement pursuant to Oregon PUC rate Schedule 85-4 "Cogeneration and Small Power Production Standard Contract Rates". We are . interested in obtaining a final execution ready Energy Sales Agreement for the Western Desert Energy Wind Farm five MW project located in Owyhee County, Idaho for delivery to Idaho Power's service territory in Oregon pursuant to the above referenced tariff. Section 2(b) of Schedule 85-4 requires the following information to be provided in order for you to provide a draft Energy Sales Agreement within fifteen business days (see § 2 (d)): a. Date of Request: June 27, 2011; b. Company/Organization that wil be the contracting Party: Western Desert Energy 1, LLC; c. Contact Notification information including, name, address and telephone: See above address and phone contact information; d. Verification that the Qualifying Facilty meets the "Eligibility for Standard Rates and Contract" criteria; i hereby verify that the Western Desert Energy 1, LLC project is a small power production facility which meets the PURPA criteria for qualification set forth in Subpart B of Part 292, subchapter K, Chapter 1, Title 18 of the Code of Federal Regulations; e. Copy of the Qualifying Facility's QF certificate: Attached; f. Copy of FERC license (applicable to hydro projects only): N/A; g. Location of the proposed project including specific equipment models, types, sizes and configurations: Stanford Ranch, Owyhee County, Idaho. Two 2.5 MW GE manufactured 1 00 meter wind turbines. h. Description of the proposed project including specific equipment models, types, sizes and configurations; see "g"; i. Type of project (wind, hydro, geothermal etc.): Wind; j. Nameplate capacity of the Qualifying Factility: 5 MW; k. Schedule 85 pricing option selected: Option 1, Fixed Price Method; i. Desired term of the Energy Sales Agreement: Fifteen (15) years; m. Annual net energy amount: 13,500,000 kwh; n. Maximum capacity of the Qualifying Facility: 5,000 kw o. Estimated first energy date: December 1, 2012; p. Estimated first operation date: January 1, 2013; q. Point of Delivery: Idaho Power service territory in Oregon, likely the Ontario or Nyssa Substation, with the final Point of Delivery to be determined by Idaho Power Transmission Business Line; r. Status of the Generation Interconnection Process: Interconnection Process is complete with the Final Feasibilty Study executed for Project No. 318 in the Idaho Power Interconnection Queue. It is our understanding that, pursuant to Schedule 85 that we may expect a draft Energy Sales Agreement fifteen business days from today. Please do not hesitate to give me a call if you have any questions. //'/ . SinC"ly your , BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.7 \ . CÀQ II O(Q-ttj ~æ~æO\ìærm: lin JUëß20\\ ~ By Sandy Sanderson, Consultant Western Desert Energy 1, LLC 1770 West State Street #317 Boise, Idaho 83702 (541) 521-55~? sandy~greenenergywest.com June 27,2011 Manager Grid Operations Idaho Power Company 1221 West Idaho Boise, Idaho 83702 (via U.S. Mail and Hand delivery) Idaho Power Company Re: 5 MW Wind Firm Point-to-Point Transmission Service Request Dear Sir or Madam: Please accept this request for a Firm Point-to-Point transmission agreement pursuant to Idaho Power's Open Access Transmission Tariff, FERC Electric Tariff First Revised Volume No.6, Section 17, "Procedures for Arranging Firm Point-to-Point Transmission Service. Service is to begin on December 1, 2012. a. Identity of the entity requesting service: Western Desert Energy 1, LLC, see above address and phone contact information; b. Western Desert Energy 1, LLC is, or wil be upon commencement of service, an Eligible Customer under the Tariff: c. The Point of Receipt is the Delamar Mine 69 kw system on the Stanford Ranch near Jordan Valley, Oregon; d. The project wil supply wind energy and capcity from two 2.5 MW GE manufactured 100 meter wind turbines. e. The receiving party, Idaho Power's Oregon jurisdiction, wil receive approximately 13,500,000 kwh of energy and capacity associated with a 5 MW wind project. f. The Commencement Date of the requested transmission service is December 1, 2012; g. The transmission capacity requested for the Point of Receipt and the Point of Delivery is 10MW. h. Western Desert Energy is committed to executing a Service Agreement upon notification that the Transmission Provider can provide the requested Transmission Service. i. Western Desert Energy wil provide such additional information as requested by the Transmission Provider. It is our understanding that, pursuant to the OA TT that we may expect a response within fifteen business days from today as to whether this application for Firm Point-to-Point Transmission Service is complete. Western Desert Energy, LLC stands ready to post necessary deposit equal to one month's transmission service charge. That said, we respectfully request that Idaho Power waive said charge in the event that Western Desert Energy, LLC meets applicable credit worthiness requirements. _,/lPlease ,db no hesitate to me a call if you have any questions. BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.8 1: IDA~PO~ An 10ACORP company DONOVAN E. WALKER Lead Counsel . dwalker(idahopower.com June 8, 2011 VIA ELECTRONIC MAIL & U.S. MAIL sandycægreenenergywest.com Sandy Sanderson, Consultant Western Desert Energy 1, LLC 1770 West State Street #317 Boise, Idaho 83702 Re: Invalid Request - Your June 27, 2011, Five Megawatt Wind Qualified Facilty ("QF") Contract Request - Oregon Off-System Project Dear Ms. Sanderson: This letter is in response to your request for an Energy Sales Agreement pursuant to Idaho Power Company's ("Idaho Powet') Oregon Tariff Schedule 85, Cogeneration and Small Power Production Standard Contract Rates (March 1, 2010). Because your proposed QF project is located in the state of Idaho, with an interconnection to Idaho Powets system in the state of Idaho, if your project wishes to obtain a power sales agreement pursuant to the Public Utilty Regulatory Policies Act of 1978 ("PURPA"), it must do so according to the Idaho Public Utilties Commission's PURPA rates, rules, and regulations - not Oregon's. Idaho Power intends to file a case with the Idaho Public Utilties Commission determining the same on today's date. Idaho Power wil forward a copy of said filing to you under separate cover. quJ~ Donovan E. Walker DEW:csb cc: Peter J. Richardson 1221 W. Idaho St. (83702) P.O. Box 70 Boise, ID 83707 øsIDA~PC~ An IOACOR Company July 8,2011 Sandy Sanderson, Consultant Western Deert Energy 1, LLC 1770 West State Street #317 Boise, ID 83702 Re: Invalid Application - SMW FIRM PTP TSR request for Western Desert Energy Dear Ms. Sanderson: This letter is to serve as formal notification that we have received your reques for Firm Point-toPoint (PTP) transmission. However, due to the method of submittal, it has ben considered as an invalid application. All Transmisison service Requests (TRs), short term or long term, must be made on OASIS to esblish a queue position. The information provided in your letter wil also nee to accompany the OASIS reqeust. To make a request on OASIS, you wil need to become an actve Idaho Power transmission customer. The customer registation process can be found in Seon 1 of our Business Practices. Our Business Practces are located on OASIS witin the Busines Practce folder. All other required docments for customer registration are also located on OASIS under the Customer service-Transmission folder. Please let me know if you have any questions or need any assistnce in the customer registration process. Beth Ryan Operations Analyst 208.388.2846 BRyan(§idahopower .com cc: Kathy Andersn Donovan Walker P,O, Box 70 (B3707) 1221 W. Idaho St. Boíse. ID 83702 BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION CASE NO. IPC-E-11-14 IDAHO POWER COMPANY ATTACHMENT NO.9 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 ORIGINAL SHEET NO. 85-1 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES RECEIV¡O MAR 0 12010 AVAILABILITY pucUtilty Program Service under this schedule is available for power delivered to the Company's control area within the State of Oregon. APPLICABILITY Service under this schedule is applicable to any Seller that: 1. Owns or operates a Qualifyng Facilty wih a Nameplate Capacity rating of 10 MW or less and desires to sell Energy generated by the Qualifying Facilty to the Company in compliance with all the terms and conditions of the Standard Contrct; 2. Meets all applicable requirements of the Company's Generation Interconnection Process. For Qualifying Facilties with a Nameplate Capacity rating greater than 10 MW, a negotiated Non-8tandard Contract between the Seller and the Company is required. DEFINITIONS Energy means the electric energy, expressed in kWh, generate by the Qualifng Facilty and delivered by the Seller to the Company in accordance with the conditions of this schedule and the Standard Contract. Energy is measured net of Losses and Station Use. Generation Interconnection Process is the Company's generation interconnecton application and engineering review process developed to ensure a safe and reliable generation interconnection in compliance with all applicable regulatory requirements, Prudent Electrical Practices and national safety standards. The Generation Interconnection Process is managed by the Company's Delivery Business Unit. Heat Rate Conversion Factor is 7,100 MMBTU divided by 1,000. Intermittent describes a Qualifng Facilty that produces electrical energy from the use of wind, solar or run of river hydro as the prime mover. Losses are the loss of elecric energy occurring as a result of the transformation and trnsmission of electric energy from the Qualifng Facilty to the Point of Delivery. Nameplate Capacity means the full-load electrical quantities assigned by the designer to a generator and its prime mover or other piece of electrical equipment, such as transformers and circuit breakers, under standardized conditions, expressed in amperes, kUovolt amperes, kilowatts, volts, or other appropriate units. Usually indicated on a nameplate attached to the individual machine or device. Non-8tandard Contract is a negotiated contract between any Seller that owns or operates a Qualifing Facilty with a nameplate capacity rating greater than 10 MWand desires to sell Energy generated by the Qualifng Facilty to the Company. The starting point for negotiation of price is the Avoided Cost Components established in this schedule and may be modifed to address specifc factors mandated by federal and state law, including 1. The utilits system cost data; Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affirs 1221 West Idaho Street, Boise, Idaho OREGON Issued: July 31, 2009 Effective with Service Rendered on and after: March 1, 2010Advice No. 10-02 IDAHO POWER COMPANY P.U .C. ORE. NO. E-27 ORIGINAL SHEET NO. 85-2 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) RECEIViD MAR 0 12010 PUC Utilty Program DEFINITIONS (Continued) 2. The availabilty of capacity or energy frm a Qualifying Facilty during the system daily and sesonal peak periods, including: a. The abilty of the utilty to dispatch the qualifyng facilty; b. The expected or demonstrted reliabilty of the qualifying facilty; c. The terms of any contract or other legally enforceable obligation, including the duration of the obligation, termination notice requirement and sanctions for non-compliance; d. The extent to which scheduled outages of the qualifng facilty can be uselly codinated with scheduled outages of the utilitýs facilties; e. The usefulness of energy and capacity supplied from a qualifyng facility during system emergencies, including its abilty to separate its load from its generation; f. The individual and aggregate value of energy and capacity from qualifyng facilties on the electric utility's system; and g. The smaller capacity increments and the shorter lead times available with additions of capacity from qualifying facilities; and 3. The relationship of the availabilty of energy or capacity from the Qualifying Facilty to the ability of the electric utility to avoid costs, including the deferral of capacity additions and the reduction of fossil fuel use; and 4. The costs or savings resulting from variations in line losses from those that would have existed in the absence of purchases from a Qualifying Facilty, if the purchasing electic utilty generated an equivalent amount of energy itself or purchased an equivalent amount of electric energy or capacity. Non-Standard Contract is a negotiated contract between any Seller that owns or operates a Qualifying Facilty with a Nameplate Capacity rating greter than 10 MW and desires to sell Energy generated by the Qualifng Facilty to the Company. The guidelines for negotiating a Non-5tandard Contract are more specifcally descrbed later in this schedule in Guidelines for Negotiation of Powe Purchases Agreements for Qualifyng Facilities with Nameplate Capacity of 10 MW or Larger. Point of Delivery is the location where the Companýs and the Seller's electrical facilties are Inter-connected or where the Companýs and the Seller's host transmission provider's electrical facilities are interconnected. Prudent Electrcal Practices are those practice, methods and equipment that are commonly used In prudent electrical engineering and operations to operate electric equipment lawfully and with safety, dependabilty, effciency and ecnomy. PURPA means the Public Utilty Regulatory Policies Act of 1978. Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Advice No. 10-02 OREGON Issued: July 31, 2009 Effective with Service Rendered on and afer: March 1, 2010 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 ORIGINAL SHEET NO. 85-3 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) RECEIVED MAR 0 12010 PUC Utilty Program DEFINITIONS (Continued) Qualifyng Facilty or QF is a cogeneration facilty or a small power producton facility which meets the PURPA criteria for qualifcation set forth in Subpart B of Part 292, Subchapter K, Chapter I, Title 18, of the Code of Federal Regulations. Seasonality Factor is the factor used in determining the seasonal purchase price of energy. The applicable factors are: 73.50% for Season 1 (March, April, May); 120.00% for Season 2 (July, August, November, December); 100.00% for Season 3 (June, September, October, January, February). Seller is any entity that owns or operates a Qualifing Facilty and desires to sell Energy to the Company. Standard Contracts are the pro forma Energy Sales Agreements the Company maintains on file with the Public Utilty Commission of Oregon for Intermittent and non-intermittent on-system Qualifing Facilties and Intermittent and non-intermittent off-system Qualifyng Facilties, with a Nameplate Capacity of 10 MW or less. Station Use is electric energy used to operate the Qualifing Facilty which is auxiliary to or directly related to the generation of electricity and which, but for the genertion of electricity, would not be consumed by the Seller. QUALIFYING FACILITY INFORMATION INQUIRY PROCESS There are two separate proceses required for a Seller to deliver and sell energy from a Qualifng Facility to the Company. These processes may be completed separately or simultaneously. 1. Generation Interconnection Process All generation project physically interconnecting to the Company's electrical system, regardless of size, location or ownership, must successfully complete the Generation Interconnection Process prior to the project delivering energy to the Company. A complete description of the Small Generator Interconnection Procedures, the Interconnection Application and Company contact information is maintained on the Idaho Power website at ww.idahopower.com. or Seller may contact the Company's Delivery Business Unit at 1-208-388-2658 for further information. All generation projects delivering power under the off-system Energy Sales Agreement must successfully complete a comparable Generation Interconnection Process with the Sellets host interconnection provider and transmission provider. 2. Energy Sales Agreement To begin the proces of completing a Standard Contrct or negotiating a Non-Standard Contrct, for a proposed project, the Seller must submit to the Company a request for an Energy Sales Agreement. All requests wil be processed in the order of receipt by the Company. Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affirs 1221 West Idaho Street, Boise, Idaho Advice No. 10-02 OREGON Issued: July 31, 2009 Effecive with Service Rendered on and after: March 1, 2010 ORIGINAL SHEET NO. 85-4 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) QUALIFYING FACILITY INFORMATION INQUIRY PROCESS (ContinuedO IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 RECEIV¡O MAR 0 12Ò\O pUC Utilty program a. Communications 2. Energy Sales Agreement (Continued) Unless otherise directed by the Compány. all communications to the Company regarding an Energy Sales Agreement should be directed in wrting as follows: b. Procedures Idaho Power Company Cogeneration and Small Power Production PO Box 70 Boise. Idaho 83707 i. The Company's approved Energy Sales Agreement may be obtained from the Company's website at http://ww.idahopower.com or if the Seller is unable to obtain it from the website, the Company wil send a copy within 10 business days of a wrtten request. ii. In order to obtain a project specific draft Energy Sales Agreement the Seller must provide in writing to the Company, general project information required for the completion of an Energy Sales Agreement, including, but not limited to: a) b) c) d) e) f) g) h) Date of request Company I Organization that wil be the contracting part Contract notifcation information including name, address and telephone number Verifcation that the Qualifng Facilty meets the "Eligibßity for Standard Rates and Contrcl criteria Copy of the Qualifing Faciltys QF certificate Copy of the FERC license (applicable to hydro projects only) Location of the proposed project including general area and specifc legal property description Description of the proposed project including specific equipment models, types, sizes and configurations Type of project (wind, hydro, geothermal etc) Nameplate capacity of the proposed project Schedule 85 pricing option selected Desired term of the Energy Sales Agreement Annual net energy amount Maximum capacity of the Qualifying Facilty Estimated first energy date Estimated operation date Point of Delivery Status of the Generation Interconnection Proces i) j) k) I) m) n) 0) p) q) r) Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Advice No. 10-02 OREGON Issued: July 31, 2009 Effective with Service Rendered on and after: March 1, 2010 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 REceIVi.D ORIGINAL SHEET NO. 85-5 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) QUALIFYING FACILITY INFORMATION INQUIRY PROCESS (Continued) MAR 0 12010 pUC Utilty Program b. Procedures (Continued) ii. The Company shall provide a dra Energy Sales Agreeent when all information described in Paragraph 2 above has been receive in writing from the Seller. Within 15 business days following receipt of all information required in Pararaph 2, the Company wil provide the Seller with a draft Energy Sales Agreement including current standard avoided cost prices and/or other optional pricing mechanisms as approved by the Oregon Public Utilty Commission in this Schedule. iv. The Company wil respond within 15 business days to any written comment and proposals that the Seller provides in response to the draft Energy Sales Agreement. v. If the Seller desires to procee with the Energy Sales Agreement afer reiewing the Company's draft Energy Sales Agreement, it may request in writing that the Company prepare a final draft Energy Sales Agreement. In connection with such request, the Seller must provide the Company with an updated status of the Generation Intercnection Process which indicates that the Seller's provided information (i.e. first energy date, operation date, etc.) are realistically attainable and any additional or claried project information that the Company reasonably determines to be necssary for the preparation of a final draft Energy Sales Agreement. Once the Company has received the written request for a final draft Energy Sales Agrement and all additional or clarifed project information that the Company reasonably determines to be necessary for the preparation of a final draft Energy Sales Agreement, the Company wil provide Seller with a final draft Energy Sales Agreement within 15 business days. vi. After reviewing the final draft Energy Sales Agreement, the Seller may either prepare another set of written comments and proposals or approve the final draft Energy Sales Agreement. If the Seller prepares written comments and proposals, the Company wil respond within 15 business days to those comments and proposals. vii. When both parties are in full agreement as to all terms and conditions of the final draft Energy Sales Agreement, the Company wil prepare and forwrd to the Seller within 15 business days a final executable version of the Energy Sales Agreement. Once the Seller executes the Energy Sales Agreement and returns all copies to the Company. the Company wil execute the Energy Sales Agreement. Following the Company's exection a completely executed copy wil be returned to the Seller. Prices and other ters and conditions in the Energy Sales Agreement wil not be final and binding until the Energy Sales Agreement has been executed by both partes. Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho OREGON Issued: July 31,2009 Effective with Service Rendered on and after: March 1, 2010Advice No. 10-02 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 AVOIDED COST COMPONENTS FIRST REVISED SHEET NO 85-6 CANCELS ORIGINAL SHEET NO. 85-6 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) RECEIVED NOV 1 22mO P lJ " Utilty Program The Avoided Cost Components are calculated based upon the Surrogate Avoided Resource methodology (SAR) for determining the Company's standard avoided costs. Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Capacity Cost (millslWh) 37.72 38.29 38.87 39.46 40.05 40.66 41.27 41.89 42.53 43.17 43.82 44.49 45.16 45.84 46.54 47.24 47.96 48.69 49.43 50.18 50.94 51.71 52.50 53.30 54.11 54.93 55.76 56.61 57.48 58.35 Fuel Cost (milS/kWh) 42.10 49.49 51.33 53.04 54.24 54.60 54.95 56.73 58.15 59.64 61.70 63.40 64.47 67.81 69.44 70.86 72.21 73.20 74.05 74.69 74.91 76.18 76.96 77.82 78.60 79.45 80.23 81.08 81.86 82.64 (C) (C) Issued by IDAHO POWER COMPANY By Gregory W Said, General Manager. Regulatory Affirs 1221 West Idaho Street, Boise, Idaho Advice No. 10-18 OREGON Issued: November 9, 2010 Effecve with Service Rendered on and after: December 15, 2010 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 RECEIVED ORIGINAL SHEET NO. 85-7 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) MAR 0 12010 PUC Utilty Program NET ENERGY PURCHASE PRICE The Company wil pay the Seller monthly, for each kWh of Energy delivered and accepted at the Point of Delivery during the preceding calendar month, in accordance with the Standard Contract, an amount determined by the Sellets choice of one of the following options: Option 1 - Fixed Price Method Net Energy Purchase Price = On-peak = (Fuel Cost + Capacity Cost) X Seasonality Factor Off-peak = Fuel Cost X Seasonality Factor where Fuel Cost and Capacity Cost are the Avoided Cost Components established in this schedule for the applicable calendar year of the actual Net Energy deliveries to the Company. Option 2 - Dead Band Method Net Energy Purchase Price = On-peak = (AGPU + Capacity Cost) X Seasonality Factor Of-peak = AGPU X Seasonality Factor Actual Gas Price Used (AGPU) = 90% of Fuel Cost If Indexed Fuel Cost is less than 90% Fuel Cost; else 110% of Fuel Cost if Indexed Fuel Cost is greater than 110% Fuel Cost; else Indexed Fuel Cost where Fuel Cost and Capacit Cost are the Avoided Cost Components established in this schedule for the applicable calendar year of the actual Net Energy deliveries to the Company, and Indexed Fuel Cost is the applicable weighted monthly average index price of natural gas at Sumas multiplied by the Heat Rate Conversion Factor. Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Advice No. 10..2 OREGON Issued: July 31, 2009 Effective with Service Rendered on and after: March 1, 2010 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 ORIGINAL SHEET NO. 85- AECÈIViD SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) MAR 0 120\0 PUC Utilty Program NET ENERGY PURCHASE PRICE (Continued) Option 3 - Gas Market Method Net Energy Purchase Price = On-peak = (AGPU + Capacity Cost) X Seasonality Factor Off-peak = AGPU X Seasonality Factor Actual Gas Price Used (AGPU) = Indexed Fuel Cost where Capacity Cost is the Avoided Cost Component established in this schedule for the applicable calendar year of the actual Net Energy deliveries to the Company, and Indexed Fuel Cost is the applicable weighted monthly average index price of natural gas at Sumas multiplied by the Heat Rate Conversion Factor. MISCELLANEOUS PROVISIONS Insurance Qualifying Facilities with a Nameplate Capacity of 200 kilowatts or smaller are not required to provide evidence of liabilty insurance. GUIDELINES FOR NEGOTIATION OF POWER PURCHASE AGREEMENTS FOR QFS WITH A NAMEPLATE CAPACITY OF 10 MW OR LARGER 1. The Company wil not Impose terms and conditions beyond what Is standard practice. The Edison Electric Institute master agreement and the Company's Standard Contracts are useful starting points in negotiating QF agreements. 2. The Company wH/ provide an indicative pricing proposal for a QF that plans to provide firm energy or capacity and chooses avoided cost rates calculated at the time of the obligation. The Company will provide an indicative pricing proposal witin 30 days of recipt of the information the Company requires from the QF. The proposal may include other terms and conditions, tailored to the individual characteristics of the proposed project. The avoided cost rates in the indicative pricing proposal wil be based on the following: a. The starting point for negotiations is the avoided cost calculated under the modeling methodology approved by the Idaho Public Utilties Commission for QFs over 10 MW, as refined by the Oregon Public Utilty Commission to incorporate stochastic analyses of electric and natural gas prics, loads, hydro and unplanned outages. b. The prospective QF may request in writing that the Company prepare a draft power purchase agreement to serve as the basis for negotiations. The Company may require additional information from the QF necessary to prepare a draft agreement. . Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho OREGON Issued: July 31, 2009 Effective with Service Rendered on and after: March 1, 2010Advice No. 10-02 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 ORIGINAL SHEET NO. 85-9 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) GUIDELINES FOR NEGOTIATION OF POWER PURCHASE AGREEMENTS FOR QFS WITH A NAMEPLATE CAPACITY OF 10 MW OR LARGER (Continued) .AECEIViO MAR 0 12010 PUC Utilty Program c. Within 30 days of receiving the required information. the Company will provide a draft power purchase agreement containing a comprehensive set of proposed terms and conditions. d. The QF must submit in writing a statement of its intention to begin negotiations with the Company and may include written comments and proposals. The Company is not obligated to begin negotiations until it receives writen notification from the QF. The Company wil not unreasonably delay negotiations and wil respond in good faith to all proposals by the QF. e. When the parties have agreed, the Company wil prepare a final version of the contract within 15 business days. A contra is not final and binding until signed by both parties. f. At any time afer 60 days from the date the QF has provided its written notification pursuant to paragraph d., the QF may file a complaint wih the Oregon Public Utility Commission asking the Commission to adjudicate any unresolved contract terms and conditions. 3. QFs have the unilateral right to select a contract length of up to 20 years for a PURPA contract. The contract lengt selected by the QF may impac other contractual issues including, but not limited to, the avoided cost determination with respect to that QF.\ 4. The Company should consider the QF to be providing firm energy or capacity if the contract requires delivery of a specifed amount of energy or capacity over a specifed term and includes sanctions for non- compliance under a legally enforceable obligation. The Company shall not determine that a QF provides no capacity value simply because the Company did not select it through a competitive bidding process. For a QF providing firm energy or capacity a. The Company and the QF should negotiate the time periods when the QF may schedule outaes and the advance notifcation requirement for such outages, using provisions in the Company's partial requirements tarif as guidance. b. The QF should be required to make best effort to meet its capacity obligations during Company system emergencies. c. The Company and the QF should negotiate secrity. default, damage and termination provisions that keep the Company and its ratepayers whole in the event the QF fails to meet obligations under the contract. d. Delay of comercial operation should not be a cause of termination if the Company determines at the time of contract execution that it will be resourcesuffcient as of the QF on-line date specified In the contrct; however, damages may be appropriate. e. Lack of natural motive force for testing to prove commercial operation should not be a cause of termination. f. The Company should include a provision in the contract that states the Company may require a QF terminated due to it default and wishing to resume sellng to the Company be subject to the terms of the original contract unti its end date. Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulator Affirs 1221 West Idaho Street, Boise, Idaho OREGON Issued: July 31. 2009 Effective with Service Rendered on and afer: March 1, 2010Advice NO.1 0-02 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 ORIGINAL SHEET NO. 85-10 SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) GUIDELINES FOR NEGOTIATION OF POWER PURCHASE AGREEMENTS FOR QFS WITH A NAMEPLATE CAPACITY OF 10 MW OR LARGER (Continued) ReCEIV~D MAR 0 12010 PUC Utility Program 5. An "as availableu obligation for delivery of energy, including deliveries in excess of Nameplate Capacity or the amount committed in the QF contrct, should be treated as a non-firm commitment. Non-firm commitments should not be subject to minimum delivery requirements, default damages for construction delay or under-delivery, default damages for the QF choosing to terminate the contract early, or default security for these purposes. 6. For QFs unable to establish creditworthiness, the Company must at a minimum allow the QF to choose either a letter of credit or cash escrow for providing default security. When determining security requirements, the Company should take into account the risk associated with the QF based on such factor as its size and tye of supply commitments. 7. When QF rates are based on avoided costs calculated at the time of delivery, the Company should use day-ahead on- and off-peak market index prices at the appropriate market hub(s). a. For QFs providing firm energy or capacity that chooe this option, avoided cost rates should be based on day-ahead market index prices for firm purchases. b. For QFs providing energy on an "as available" basis, avoided cost rates should be based on day- . ahead market index prices for non-firm purchases. 8. The Company should not make adjustments to standard avoided cost rates other than those approved by the Oregon Public Utility Commission and consistent with these guidelines. 9. The Company should make adjustments to avoided costs for reliability on an expected forward-looking basis. The Company should design QF rates to provide an incentive for the QF to achieve the contracted level and timing of energy deliveries. 10. The Company should make adjustments to avoided costs for dispatchabilty on a probabilistic, forwar looking basis. 11. If avoided cost rates for a QF are calculated at the time of the obligation and the Company's avoided resource is a fossil fuel plant, the Company should adjust avoided cost rates for the resource deficiency period to take into account avoided fossil fuel price risk. 12. Avoided cot rates for wind QFs should be adjusted for integration cost estimates based on studies conducted for the Company's system, unless the QF contracts for integration services with a third part. a. The Company should use the most recent integration cost data available, consistent with its evaluation of competitively bid and self-build wind resources. b. The portion of integration costs attributable to reserves costs should be based on the diference in such costs between the wind QF and the Company proxy plant. Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affairs 1221 West Idaho Street, Boise, Idaho Advice No. 10-02 OREGON Issued: July 31, 2009 Effective with Service Rendered on and after: March 1, 2010 IDAHO POWER COMPANY P.U.C. ORE. NO. E-27 ORIGINAL SHEET NO. 85-11 .Recel~D SCHEDULE 85 COGENERATION AND SMALL POWER PRODUCTION STANDARD CONTRACT RATES (Continued) GUIDELINES FOR NEGOTIATION OF POWER PURCHASE AGREEMENTS FOR QFS WITH A NAMEPLATE CAPACITY OF 10 MW OR LARGER (Continued) MAR 0 120\0 pUC Utilty Program c. The Company should base first-year integration costs on the actual level of wind resources in the control area, plus the proposed QF. Integration costs for years two through five of the contrct should be based on the expected level of wind resources in the control area each year, including the new resources the Company expects to add. Integration cots should be fixed at the year-five level, adjusted for inflation, for the remainder of the life of the wind projects in the control area. d. The Company is prohibited from using a long-range planning target for wind resources as the basis for integration costs. However, if the Company is subject to near-term targets under a mandatory Renewable Portolio Standard, the Company may base its integration costs on the level of renewable resources it must acquire over the next 10 years. e. In determining integration costs, the Company should make reasonable estimates regarding the portion of renewable resources to be acquired that wil be intermittent resources. 13. The Company should adjust avoided cost rates for QF line losses relative to the Company proxy plant based on a proximity-based approach. 14. The Company should evaluate whether there are potential savings due to trnsmission and distribution system upgrades that can be avoided or deferred as a result of the QFs location relative to the Company proxy plant and adjust avoided cost rates accordingly. 15. The Company should not adjust avoided cost rates for any distribution or transmission system upgraes needed to accept QF power. Such costs should be separately charged as part of the interconnection process. 16. The Company should not adjust avoided cost rates based on it determination of the additional cost it might incur for any debt imputation by a credit rating agency. 17. Regarding Surplus Sale and Simultaneous Purchase and Sale: a. . QFs may either contrct with the Company for a .surplus sale" or for a .simultaneous purchase and sale" provided, however, that the QFs selection of either such contractual arrangement shall not be inconsistent with any retail tarif provision of the. Company then in effect or any agreement between the QF and the Company; b. The two sale/purchase arrangements described in paragraph 17. a will be available to QFs regardless of whether they qualify for standard contracts and rates or non-standard contracts and rates, however the .simultaneous purchase and sale" is not available to QFs not directly connected to the Company's electrical system; c. The negotiation parameters and guidelines should be the same for both sale/purchase arrangeents described in paragraph 17. a; and d. The avoided cost calculations by the Company do not require adjustment solely as a result of the selection of one of the sale/purchase arrngements described in paragraph 17.a., rather than the other. Issued by IDAHO POWER COMPANY By John R. Gale, Vice President, Regulatory Affirs 1221 West Idaho Street, Boise, Idaho OREGON Issued: July 31, 2009 Effective with Service Rendered on and afer: March 1, 2010Advice No. 10-02