20120731Complaint and Petition.pdf

DONOVAN E. WALKER (ISB No. 5921)
JASON B. WILLIAMS (ISB No. 8718)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83703
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMPLAINT )
AND PETITION OF IDAHO POWER )
COMPANY FOR A DECLARATORY )
ORDER REGARDING THE FIRM ENERGY )
SALES AGREEMENT AND GENERATOR )
INTERCONNECTION AGREEMENT WITH )
LAVA BEDS WIND PARK, LLC. )
-----------------------------)
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY'S
COMPLAINT AND PETITION FOR
DECLARATORY ORDER
COMES NOW the Petitioner/Complainant, Idaho Power Company ("Idaho
Power"), by and through its attorneys, Donovan Walker and Jason Williams, and
pursuant to· this Commission's Rules of Procedure, including but not limited to RP 54
and RP 101, hereby files this Complaint and Petition for Declaratory Order.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER-1
RECEIVED
2012 July 31 aM 8:17
IDAHO PUBLIC
UTILITIES COMMISSION
Communications regarding this Complaint and Petition for Declaratory Order
should be sent to:
Donovan Walker
Jason Williams
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83703
Telephone: [phone]
Facsimile: [phone]
dwalker@id ahopower.com
[e-mail]
SUMMARY OF THE CASE
1. This is a dispute between Idaho Power and Lava Beds Wind Park, LLC
("Lava Beds"), a special purpose entity, that is intended to own and control a wind
generation project to be developed by Exergy Development Group of Idaho, LLC
("Exergy"), a sophisticated developer with extensive knowledge and experience with
such projects.1 In October of 2005 Idaho Power and the special purpose entity entered
into a Firm Energy Sales Agreement ("FESA") pursuant to the Public Utility Regulatory
Policies Act of 1978 ("PURPA"), which provides that the special purpose entity will
design, construct, own, maintain and operate an electric wind generation facility and
that Idaho Power will buy firm electric energy produced by the facility. Attachment 1.
2. The FESA requires, among other things, that the special purpose entity
meet certain construction deadlines, such as placing the project in service by the
Scheduled Operation Date of May 1, 2007. This Scheduled Operation Date was
subsequently amended in 2008 to September 1, 2010. Attachment 2. Exergy did not
1 See, IPUC Case Nos. IPC-E-05-06, IPC-E-05-07, IPC-E-05-09, IPC-E-05-17, IPC-E-05-18, IPC­
E-05-30, IPC-E-05-31, IPC-E-05-32, IPC-E-05-33, IPC-E-09-18, IPC-E-09-19, IPC-E-09-20, all of which
are large wind OF developments on Idaho Power's system by Exergy Development.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 2
achieve the Scheduled Operation Date of September 1, 2010, did not achieve the
Operation Date by July 1, 2011, and defaulted under the FESA at that time. See,
Attachment 3. Exergy has failed to diligently pursue a cure of Lava Beds' default within
a commercially reasonable time, as required by the FESA, and Idaho Power is entitled
to terminate the FESA. Exergy and the special purpose entity now asserts that alleged
"delays" by Idaho Power excuse Exergy's obligation to meet its Scheduled Operation
Date, and to cure its default in a commercially reasonable time and manner. Idaho
Power disagrees that any action excuses Exergy or the special purpose entity from
meeting its construction deadlines, and maintains that Exergy has not diligently pursued
a cure in a commercially reasonable time period. By failing to move forward with its
generator interconnection, and now being removed from the generator interconnection
queue, Lava Beds can no longer maintain a claim that it is diligently pursing a cure in a
commercially reasonable manner of time.
3. The FESA provides a clear remedy for a party's failure to cure a default,
and that is termination of the FESA. With this Complaint and Petition, Idaho Power is
requesting the Idaho Public Utilities Commission ("Commission") to issue an order
declaring that Idaho Power is authorized to apply such remedy against Exergy and the
special purpose entity. More specifically, Idaho Power asks the Commission to make
findings and enter a declaratory order that: (1) the Commission has jurisdiction over the
interpretation and enforcement of the FESA and the GIA; (2) Exergy's claim of force
majeure does not exist so as to excuse Lava Beds' failure to meet the amended
Scheduled Operation Date, the Operation Date, and failure to cure its default; (3) Lava
Beds failed to place its project in service by the amended Scheduled Operation Date of
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 3
September 1, 2010, has failed to achieve the Operation Date by July 1, 2011, (which is
within 10 months of the amended Scheduled Operation Date), and has received Notice
of its default, as of July 26,2011; and (4) Lava Beds did not cure its default of the FESA
within 60 days of receiving Notice of Default, and has not diligently pursued a cure of
said default within a commercially reasonable time, and that Idaho Power may terminate
the FESA.
FACTUAL ALLEGATIONS
4. Idaho Power is an Idaho public utility subject to the jurisdiction of the
Commission.
5. Lava Beds Wind Park, LLC, is an Idaho limited liability company.
6. On October 14, 2005, Idaho Power and Lava Beds entered into a FESA
for a 20-year term using the then-current non-Ievelized published avoided cost rates as
established by the Commission for energy deliveries of less than 10 aMW. A true and
correct copy of the FESA, dated October 14, 2005, between Idaho Power and Lava
Beds is attached hereto as Attachment 1 and incorporated herein by reference. Lava
Beds selected November 1, 2006, as the Scheduled First Energy Date, and May 1,
2007, as the Scheduled Operation Date. Attachment 1 at Appx. B.
7. On October 20, 2005, Idaho Power filed an Application with the
Commission in Case No.IPC-E-05-31 requesting approval of the 20-year FESA
between Idaho Power and Lava Beds.
8. On December 5, 2005, Exergy submitted the initial Small Generator
Interconnection Request for the Lava Beds wind generating project. A true and correct
copy of the initial Small Generator Interconnection Request for Lava Beds is attached
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 4
hereto as Attachment 4 and incorporated herein by reference. Idaho Power initially
assigned a Generator Interconnection Queue Number ("GI #") to Lava Beds of #156.
9. On December 22, 2005, Idaho Power sent to Exergy a Notice of
Incomplete Interconnection Application for five of Exergy's proposed wind project
interconnections: Golden Valley Wind Park, Milner Dam Wind Park, Lava Beds Wind
Park, Notch Butte Wind Park, and Salmon Falls Wind Park. A true and correct copy of
the December 22, 2005, Notice of Incomplete Interconnection Application is attached
hereto as Attachment 5 and incorporated herein by reference. This Notice informs
Exergy of nine items that either needed to be clarified or provided by Exergy in order to
proceed with the interconnection requests. Additionally this Notice informs that the
items must be provided prior to the scoping meeting in order for the projects to retain
their positions in the queue. This Notice also provided a standard Interconnection
Feasibility Study Agreement for Exergy's review and execution.
10. On July 7,2006, Idaho Power sent to Exergy a letter informing Exergyof
the status of the Lava Beds interconnection request. A true and correct copy of the July
7, 2006, letter with attachments is attached hereto as Attachment 6 and incorporated
herein by reference. This letter states, "Since our initial Scoping Meeting, we have
received your designated Point of Interconnection (POI) for this project." The letter
again forwards a draft Feasibility Study Agreement for Exergy's execution and return.
The letter also advises, "We must receive your response no later than 30 Calendar [sic]
after your receipt of this letter, or we will consider your request to have been withdrawn
and terminated."
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 5
11. Attached hereto as Attachment 7 and incorporated herein by this
reference is a true and correct copy of the January 3, 2007, Final Interconnection
Feasibility Study Report and January 10, 2007, transmittal letter for Lava Beds'
interconnection. This report was for Exergy's requested configuration of GI #156
located in Bingham County, Idaho near Idaho Power's Taber substation, for 19.92 MW
at a 46 kV connection, with estimated interconnection cost of $270,000. The letter
advises,
We require further study to evaluate the system integration
requirements for this Project, along with the facilities'
physical constraints. Attached please find a Draft System
Impact Study Agreement that describes the studies required
to meet this request, the responsibilities and obligations of
both parties, and the work schedules requires. ... In order to
proceed with this application, we must receive notice and the
required deposit for the System Impact Study from you
within 30 Calendar days of receipt of this letter, otherwise
your application will be deemed withdrawn.
12. Attached hereto as Attachment 8 and incorporated herein by this
reference is a true and correct copy of the March 5, 2008, System Impact Study
Agreement for Lava Beds GI #156 signed by Idaho Power and Exergy.
13. On July 1, 2008, Idaho Power and Exergy executed an amendment to the
FESA that extended the Scheduled Operation Date from May 1,2007, to September 1,
2010, for Lava Beds. On July 23, 2008, this amendment regarding the Scheduled
Operation Date was filed with the Commission. A true and correct copy of the
amendment between Idaho Power and Lava Beds is attached hereto as Attachment 2
and incorporated herein by reference.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 6
14. Attached hereto as Attachment 9 and incorporated herein by this
reference is a true and correct copy of the July 30, 2009, Draft Interconnection System
Impact Study Report for Lava Beds GI #156.
15. Attached hereto as Attachment 10 and incorporated herein by this
reference is a true and correct copy of the August 31, 2009, Final Interconnection
System Impact Study Report for Lava Beds GI #156.
16. Attached hereto as Attachment 11 and incorporated herein by this
reference is a true and correct copy of the October 20,2009, Facilities Study Agreement
for Lava Beds GI #156 signed by Idaho Power and Exergy.
17. Attached hereto as Attachment 12 and incorporated herein by this
reference is a true and correct copy of the May 9, 2011, Draft Generator Interconnection
Facility Study Report for Lava Beds GI #156.
18. Attached hereto as Attachment 13 and incorporated herein by this
reference is a true and correct copy of the June 9, 2011, Final Generator
Interconnection Facility Study Report for Lava Beds GI #156.
19. On June 30, 2011, counsel for Exergy, Mr. Richardson, sent a letter to
Idaho Power regarding Exergy's progress in meeting the Operation Date from the
FESA. A true and correct copy of Mr. Richardson's June 30, 2011, letter is attached
hereto as Attachment 14 and incorporated herein by reference. In this letter Exergy
acknowledged the provisions of the FESA requiring the project to become operations
within 10 months of its Scheduled Operation Date. The letter confirms this date to be
July 1, 2011.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 7
20. On July 26, 2011, Idaho Power sent Lava Beds Notice of Default of the
FESA. A true and correct copy of the July 26, 2011, Notice of Default is attached hereto
as Attachment 3 and incorporated herein by reference.
21. Attached hereto as Attachment 15 and incorporated herein by this
reference is a true and correct copy of the July 28, 2011, Draft Generator
Interconnection Facility Study Report for Lava Beds GI #156, with cover and transmittal
letters. The transmittal letter states, "Failure to respond to this letter by August 28, 2011
will cause your Generator Interconnection request to have been deemed withdrawn and
terminated." (emphasis in original).
22. On August 5, 2011, Lava Beds, by letter from counsel for Exergy to Idaho
Power, responded to the Notice of Default with a Request to Extend Cure Period. A
true and correct copy of the August 5, 2011, Request to Extend Cure Period is attached
hereto as Attachment 16 and incorporated herein by reference.
23. Attached hereto as Attachment 17 and incorporated herein by this
reference is a true and correct copy of the August 26, 2011, Generator Interconnection
Agreement ("GIA") for Lava Beds GI #156 and transmittal letter. The letter asks for
Exergy to, "Please complete the NOTICES information, and sign and return both sets of
the signature pages to me by September 30, 2011 so that we may finalize the
interconnection process."
24. On September 1, 2011, counsel for Exergy delivered a letter to Idaho
Power purporting to update Idaho Power that, "progress that is being made to achieve
commercial operations within a reasonable time of the deadline contained in the power
purchase agreements." A true and correct copy of the September 1, 2011, letter from
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 8
counsel for Exergy to Idaho Power is attached hereto as Attachment 18 and
incorporated herein by reference.
25. Attached hereto as Attachment 19 and incorporated herein by this
reference is a true and correct copy of the December 15, 2011, Final GIA for Lava Beds
GI #156.
26. Attached hereto as Attachment 20 and incorporated herein by this
reference is a true and correct copy of the January 24, 2012, Generator Interconnection
Agreement ("GIA") for Lava Beds GI #156 and its January 25, 2012, transmittal letter.
The letter states,
This GIA has been updated to reflect your request for turbine
change from twelve GE 1.5MW wind turbines, to nine
Gamesa G97 2.0MW wind turbines. We have also updated
Attachment 3 Milestones to reflect our construction lead
times needed to meet the in service date you have
requested. ... Please have both sets of signature pages to
the GIA signed, and returned to me for execution on or
before February 27,2012.
27. Attached hereto as Attachment 21 and incorporated herein by this
reference is a true and correct copy of the May 23, 2012, Generator Interconnection
Agreement ("GIA") for Lava Beds GI #156 and its transmittal letter. The letter states,
Enclosed is a copy of the Final Generator Interconnection
Agreement for Lava Beds Wind Project. We sent this to you
on January 25, 2012, and did not receive anything back. As
of May 23, 2012, we do not have an executed GIA nor
funding for this project.
Failure to submit an executed copy of this GIA and have
funding in place by June 25, 2012, will result in Idaho Power
terminating the present generator interconnection request
and withdrawing the Lava Beds Wind Project from the
generator interconnection queue. If you wish to proceed
forward with the interconnection, you must execute the GIA
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER - 9
by signing and submitting both copies and pay the required
funding by June 25, 2012.
(Emphasis in original.)
28. Attached hereto as Attachment 22 and incorporated herein by this
reference is a true and correct copy of the June 25, 2012, letter from Exergy to Idaho
Power purporting to forward an executed GIA back to Idaho Power. The letter states:
Exergy has received your letter and Generator
Interconnection Agreement (GIA) delivered on May 23,2012
and is pleased to submit the enclosed and executed GIA. In
your May 23, 2012 letter you state that Exergy must submit
payment in advance of the June 25, 2012 deadline. It has
been Exergy's recent experience that an executed GIA
submitted to Idaho Power does not come with the
reasonable expectation that it will be countersigned. For this
reason Exergy will await Idaho Power's countersignature to
this GIA before submitting payment.
Please also note that Exergy has revised the dates in the
table in Attachment 3 to reflect a Customer's Requested In­
Service Date of December 15, 2012.
Contrary to Exergy's statement that the GIA it forwarded with this letter was executed, it
was not signed by Exergy, nor by Idaho Power.
29. Attached hereto as Attachment 23 and incorporated herein by this
reference is a true and correct copy of the June 26, 2012, letter from Idaho Power to
Exergy. In response to Exergy's wrongful claim, "that an executed GIA submitted to
Idaho Power does not come with the reasonable expectation that it will be
countersigned" Idaho Power signed the GIA and returned it to Exergy for its execution.
Additionally, as outlined in Idaho Power's June 26, 2012 letter, Idaho Power agreed to
the changes Exergy had made in the May 23, 2012, GIA, and included the same in the
GIA that Idaho Power signed and returned to Exergy. Those dates provided for
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -10
completion of Idaho Power construction by November 10, 2012, and completion of the
interconnection by December 15, 2012. Idaho Power's June 26, 2012, letter states
clearly that the only thing remaining and needed in order to proceed with the
interconnection of the Lava Beds Wind Project was for Exergy to sign the GIA and to
pay the required funding. In addition, the letter states:
Failure to return a signed copy of this GIA and have funding
in place by 5:00 p.m., Mountain Time, on July 2. 2012. will
result in Idaho Power terminating the present generator
interconnection request and withdrawing the Lava Beds
Wind Project from the generator interconnection queue.
(Emphasis in original.)
30. On July 2, 2012, rather than return the executed GIA with payment as
Exergy had stated in its June 25, 2012, letter that it would, Exergy delivered to Idaho
Power a Notice of Force Majeure for both the Notch Butte Wind Park and Lava Beds
projects. A true and correct copy of the July 2, 2012, Notice of Force Majeure from
Exergy is attached hereto as Attachment 24 and incorporated herein by reference. In
its Notice of Force Majeure, Lava Beds contends, among other things, that Idaho
Power's estimated date for construction of interconnection facilities associated with the
Jack Ranch projects is a Force Majeure event because the date makes it impossible for
the Jack Ranch projects to meet their respective Scheduled Operation Date of June 30,
2012, and because of the "combined financing" of the projects, this also constitutes
Force Majeure for Notch Butte and Lava Beds. The Notice of Force Majeure for Notch
Butte and Lava Beds attaches the similar Notice of Force Majeure for the Jack Ranch
projects that was sent to Idaho Power June 28, 2012.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -11
31. On July 3, 2012, Idaho Power sent a letter to Exergy removing Lava Beds
from the Generation Interconnection queue. A true and correct copy of the July 3, 2012,
letter from Idaho Power to Exergy is attached hereto as Attachment 25 and incorporated
herein by reference. This letter states,
Exergy Development Group was to execute and return the
Agreement with the required deposit by 5 pm Mountain Time
on July 2, 2012. That time period has expired. Without
waiving any claims or rights pursuant to the GIA, Firm
Energy Sales Agreement, or otherwise, Idaho Power
acknowledges receipt of Exergy's claim of force majeure
related to this project on July 2, 2012. Idaho Power does not
agree with Exergy's claim of force majeure, and will be
responding to the same separately. Because Exergy failed
to execute the GIA and failed to make the required deposit
payment, the application for Generation Interconnection has
now been deemed withdrawn, and this project has been
removed from Idaho Power's Generation Interconnection
queue.
32. On July 5, 2012, Idaho Power received a letter dated July 3, 2012, from
Exergy, along with a signed GIA, but no payment. A true and correct copy of the July 3,
2012, letter and GIA received by Idaho Power from Exergy on July 5, 2012, is attached
hereto as Attachment 26 and incorporated herein by reference. The July 3, 2012,
Exergy letter states, "This document was intended to be a part of the package that was
delivered to Idaho Power yesterday, July 2, 2012, but was inadvertently overlooked in
the attorney's office. Please include this document with the set of other matters that
was provided."
33. On July 30, 2012, Idaho Power sent at letter to Exergy terminating the
executed GIA with Lava Beds and notifying Exergy of this filing with the Commission. A
true and correct copy of the July 30, 2012, letter from Idaho Power to Exergy is attached
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -12
hereto as Attachment 27 and incorporated herein by reference. This letter also reviews
the chain of events going back through Exergy's June 25, 2012 letter.
JURISDICTION
A. The Commission Has Jurisdiction Over Interpretation and Enforcement of
the FESA and the GIA.
34. The Commission has authority to issue declaratory orders pursuant to the
Idaho Uniform Declaratory Judgments Act. Utah Power & Light Co. v. Idaho Pub. Uti/so
Comm'n, 112 Idaho 10, 12,730 P.2d 930, 932 (1987). The Idaho Uniform Declaratory
Judgments Act provides for the issuance of a declaratory judgment in a contract dispute
"before or after there has been a breach." Harris v. Cassia County, 106 Idaho 513, 516-
517,681 P.2d 988, 991 (1984).
35. The Commission has jurisdiction over the interpretation of contracts where
the parties have agreed to submit a dispute involving contract interpretation to the
Commission. Afton Energy. Inc. v. Idaho Power Co., 111 Idaho 925, 929, 729 P.2d
400,404 (1986) 929,729 P.2d at 404 (citing Bunker Hill Co. v. Wash. Water Power Co.,
98 Idaho 249, 252, 561 P.2d 391, 394 (1977)).
1. The Commission Has Jurisdiction Over Interpretation and
Enforcement of the FE SA.
36. Paragraph 7.5 of the FESA between Idaho Power and Lava Beds provides
for the continuing jurisdiction of the Commission over the Agreement:
Continuing Jurisdiction of the Commission. This Agreement is a
special contract and, as such, the rates, terms and conditions
contained in this Agreement will be construed in accordance with
Idaho Power Company v. Idaho Public Utilities Commission and
Afton Energy. Inc., 107 Idaho 781, 693 P.2d 427 (1984), Idaho
Power Company v. Idaho Public Utilities Commission, 107 Idaho
1122, 695 P.2d 1 261 (1985), Afton Energy. Inc. v. Idaho Power
Company, 111 Idaho 925,729 P.2d 400 (1986), Section 210 of the
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -13
Public Utility Regulatory Policies Act of 1978 and 18 CFR
§292.303-308.
Attachment 1 at p.11.
37. Idaho Power and Lava Beds have also agreed to the Commission's
jurisdiction regarding any and all disputes under the FESAs. Paragraph 22.1 of the
FESAs further provides that all disputes relating to the Agreement will be submitted to
the Commission:
Disputes -All disputes related to or arising under this Agreement,
including, but not limited to, the interpretation of the terms and
conditions of this Agreement, will be submitted to the Commission
for resolution.
Attachment 1 at p. 22.
38. Exergy has reaffirmed its position that the Commission has jurisdiction
with regard to disputes under the FESA. Paragraph 2(i) of a letter dated July 13, 2012,
from Exergy to Idaho Power with regard to Notch Butte and Jack Ranch states as
follows:
If Idaho Power disputes [the claim of Force Majeure], then pursuant
to Section 22.1 of the FESA, Idaho Power is contractually obligated
to submit the matter to the Commission for resolution.
See, Case No. IPC-E-12-20, Attachment 64 at 2; Case No. IPC-E-12-23, Attachment 28
at 1-2. Idaho Power agrees that the Commission has jurisdiction to interpret and
enforce the FESA pursuant to both the FESA itself and the Idaho Uniform Declaratory
Judgments Act.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -14
2. The Commission Has Jurisdiction Over Interpretation and
Enforcement of the GIA.
39. FERC has stated that the relevant state authority exercises exclusive
jurisdiction over interconnections in which the electric utility must purchase the entire
output of the qualifying facility:
When an electric utility is obligated to interconnect under
Section 292.303 of the Commission's Regulations, that is, when it
must purchase the OF's total output, the relevant state authority
exercises authority over the interconnection and the allocation of
interconnection costs.
Standardization of Generator Interconnection Agreements and Procedures, Order
No. 2003, FERC Stats. & Regs. 1131,146 at P 813 (2003), order on reh'g, Order
No. 2003-A, FERC Stats. & Regs. 1131,160, order on reh'g, Order No. 2003-8, FERC
Stats. & Regs, 1131,171 (2004), order on reh'g, Order No. 2003-C, FERC Stats. & Regs.
K 31,190 (2005), aff'd sub nom. Nat'l Ass'n of Regulatory Uti!. Comm'rs v. FERC, 475
F.3d 1277 (D.C. Cir. 2007». Recently, FERC has reaffirmed the finding that it will have
jurisdiction over an interconnection with a qualifying facility only if the host utility is given
notice that third-party sales of the facility's output are occurring or are planned:
Therefore, consistent with our conclusions in Niagara Mohawk,
where a host utility is not given notice that third-party sales of
output are occurring or are planned (e.g., through a OF's request
for wheeling service or a contract providing the OF an express right
to sell output to third parties), we will assume that all sales of a
OF's output are being made to the host utility and therefore that
Commission jurisdiction will not attach.
Florida Power & Light Co., 133 FERC 1161,121 at P 22 (201 0) (citing Niagara Mohawk
Power Corp., 121 FERC 1161,183 (2007), order denying reh'g, 123 FERC 1161,061
(2008». Here, the FESA would obligate Idaho Power to purchase the entire output of
the project. Therefore, this Commission-and not FERC-has jurisdiction over the GIA.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -15
B. The Dispute is a Justiciable Controversy.
40. This is an action for declaratory order brought for the purpose of
determining a question of actual controversy between the parties. The dispute is as
follows: Idaho Power claims that Lava Beds has failed to meet its Scheduled Operation
Date of September 1, 2010, defaulted under the FESA by failing to achieve its
Operation Date within 10 months of its Scheduled Operation Date, and failed to cure its
default within either 60 days of the notice of default or if not within 60 days, within a
commercially reasonable period time. Idaho Power further claims that it may now
terminate the FESA with Lava Beds. Lava Beds disputes Idaho Power's claim that it is
not bringing its project online in a commercially reasonable time after default.
Additionally, Lava Beds claims Force Majeure events have occurred that excuse its
required performance under the FESA. Attachment 24. Article XVI of the FESA
excuses both parties from whatever performance is affected by "any cause beyond the
control of the Seller or of Idaho Power which, despite the exercise of due diligence,
such party is unable to prevent or overcome." Idaho Power disagrees with Lava Beds
that any Force Majeure event has occurred. Attachment 25 and Attachment 27.
41 . As a general rule, a declaratory judgment can only be rendered in a case
where an actual or justiciable controversy exists. Harris, at 516, citing (internal cites
omitted). A "justiciable controversy" ripe for a declaratory judgment must be one that is
appropriate for judicial determination, must be definite and concrete, touching the legal
relations of parties having adverse legal interests, and must be real and substantial
admitting of specific relief through a decree of a conclusive character, as distinguished
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -16
from an opinion advising what the law would be upon a hypothetical state of facts.
Harris, at 516, citing I.C. § 10-1201; Rules Civ.Proc., Rule 57.
42. Idaho Power and Exergy agree that the Commission has jurisdiction over
the dispute at hand. The dispute is appropriate for the Commission's determination
because it requires interpretation of several provisions of the FESA, as well as
Schedule 72 and the generator interconnection process for OF generators. The dispute
is definite and concrete because Idaho Power claims current or impending violations of
specific provisions of the FESA by Lava Beds and because Idaho Power disagrees with
any application of the Force Majeure provision of the FESA. The parties to the FESA
have adverse legal interests. The dispute is real and substantial, as distinguished from
a request for an advisory opinion, because it (1) involves actions or inactions that have
actually occurred, (2) calls for interpretation and enforcement of a valid and enforceable
agreement, and (3) the Commission's resolution of the dispute would likely involve
specific relief expressly provided for in the FESA.
Declaratory Order To Terminate Contract
43. Idaho Power rea lieges and hereby incorporates by reference all of the
foregoing allegations as if fully stated herein.
A. Idaho Power May Terminate the FESA Upon Failure of the Project to
Achieve Its Operation Date.
44. Lava Beds has failed to meet the Scheduled Operation Date of September
1, 2010, as provided in the 2008 Amendment to the FESA stated Scheduled Operation
Date in Section B-3 in Appendix B of the FESA. Attachment 2. As provided in Section
5.3 of the FESA, Lava Beds' failure to achieve its Operation Date within 10 months of
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -17
the Scheduled Operation Date is an event of default. Section 22.2.1 of the FESA
provides:
Defaults. If either Party fails to perform any of the terms or
conditions of this Agreement (an "event of default"), the
nondefaulting Party shall cause notice in writing to be given
to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure
such default within the sixty (60) days after service of such
notice, or if the defaulting Party reasonable demonstrates to
the other Party that the default can be cured within a
commercially reasonable time but not within such sixty (60)
day period and then fails to diligently pursue such cure, then,
the nondefaulting Party may, at its option, terminate this
Agreement and/or pursue its legal or equitable remedies.
The Idaho Uniform Declaratory Judgments Act provides for the issuance of a
declaratory judgment in a contract dispute "before or after there has been a breach."
Harris at 516-517,991 (1984). Accordingly, Idaho Power requests an Order from the
Commission declaring that Lava Beds has failed to cure its default within 60 days of the
notice of default, has failed to cure its default within a commercially reasonable period of
time outside of said 60 day time period, and that Idaho Power may terminate the FESA.
B. No Force Majeure Event Has Occurred and Lava Beds Is Not Diligently
Pursuing a Cure of Its Default Within a Commercially Reasonable Time.
45. Lava Beds claims that events have occurred that constitute Force Majeure
pursuant to Section 16 of the FESA. Paragraph 16.1 states, in relevant part:
As used in this Agreement, "Force Majeure" or "an event of Force
Majeure" means any cause beyond the control of the Seller or of
Idaho Power which, despite the exercise of due diligence, such
Party is unable to prevent or overcome. Force Majeure includes,
but is not limited to, acts of God, fire, flood, storms, wars, hostilities,
civil strife, strikes and other labor disturbances, earthquakes, fires,
lightning, epidemics, sabotage, or changes in law or regulation
occurring after the Operation Date, which, by the existence of
reasonable foresight such party could not reasonably have been
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -18
expected to avoid and by the exercise of due diligence, it shall be
unable to overcome.
Attachment 1.
46. In its Notice of Force Majeure, Lava Beds contends, among other things,
that Idaho Power's estimated date for construction of interconnection facilities
associated with the Jack Ranch projects2 is a Force Majeure event because the date
makes it impossible for the Jack Ranch projects to meet their respective Scheduled
Operation Date of June 30, 2012, and because of the "combined financing" of the
projects, this also constitutes Force Majeure for Lava Beds. Attachment 24.
47. Lava Beds' attempt to excuse its non-performance fails because it does
not meet the FESA's definition of a Force Majeure event, and Exergy's own actions
and/or inactions caused considerable delay that it now claims constitutes Force
Majeure. Exergy has not, to this day, paid the required construction deposit, nor
authorized Idaho Power to move forward with the required work necessary for the
interconnection and transmission upgrades required to connect the project to Idaho
Power's system. Exergy has established a pattern of continually requesting changes to
the requested interconnection configuration to avoid committing to any. After nearly 7
years after executing the FESA, more than 5 years after the original Scheduled
Operation Date of May 1, 2007, nearly 2 years past the amended Scheduled Operation
Date of September 1, 2010, numerous proposed interconnection configurations, and
now removal from the generator interconnection queue for failure to pay and authorize
its interconnection to proceed, Lava Beds is not diligently pursuing its Operation Date in
2See, Case No. IPC-E-12-20.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -19
a commercially reasonable manner, nor within a commercially reasonable period of
time.
48. On July 26, 2011, Idaho Power wrote to Lava Beds providing Notice of
Default for Lava Beds' failure to achieve its Operation Date within 10 months of its
Scheduled Operation Date. This letter also advised Lava Beds of the FESAs
requirements to cure the default, and stated that Lava Beds' failure to cure as outlined
in the FESA would result in Idaho Power proceeding with the remedies allowed within
the FESA, one of which is termination of the FESA.
This letter serves as Idaho Power's Notice of Default as of the date
of this letter. If this default is not cured as specified within the
FESA Idaho Power will exercise its rights as allowed within the
agreement one of which may be termination of the FESA.
Idaho Power has received the letter from Mr. Richardson dated
June 30, 2011 in which Mr. Richardson acknowledges the default
commercial on line date to be July 1st, 2011. In this same letter Mr.
Richardson introduces a short discussion that this default is being
cured by the project making commercially reasonable efforts and
goes on to state that the projects will start construction in
approximately forty-five (45) days from June 30, 2011, and be
online by year end 2011.
However, the letter does not identify any specific activity, actual
commitment and associated evidence that would reasonable
demonstrate to Idaho Power that the default can be cured within a
commercially reasonable period of time, but not within the sixty (60)
day cure period, i.e., by the end of the year, and that the project is
diligently pursuing such cure.
Article 22 of the FESA states that following notice of an event of
default that Idaho Power may, at its option, terminate the FESA
and/or pursue its legal or equitable remedies if the project fails to
cure such default within sixty (60) days after service of such notice,
or if the project reasonable demonstrates to Idaho Power that the
default can be cured within a commercially reasonable time, but not
within such sixty (60) day period, and then fails to diligently pursue
such cure.
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -20
Idaho Power appreciates the project's commitment that it will start
construction and cure its default of the FESA by year end, 2011.
Idaho Power will consider this year-end commitment to be the outer
limit of a commercially reasonable time period with which to cure
the default if it is not on-line within sixty (60) days of this Notice of
Default. If the default is not cured within said sixty (60) days, then
Idaho Power may exercise its rights to terminate and/or pursue its
legal or equitable' remedies unless the project demonstrates that it
is diligently pursuing cure of the default by the commercially
reasonable time period of year end, 2011. If the project is not
online by year end 2011, the parties agree that the commercially
reasonable period to cure this default has expired and Idaho Power
will proceed with the remedies as allowed within this Firm Energy
Sales Agreement one of which is termination of this Firm Energy
Sales Agreement.
Attachment 3.
49. In response to the July 26, 2011, letter, counsel for Lava Beds confirmed
receipt of the July 26, 2011, Notice of Default. Attachment 16. This letter also
specifically disagrees that year-end 2011 would be an outer limit to a commercially
reasonable period to cure Lava Beds' default, but none-the-Iess reaffirms, "Exergy still
intends to energize each of these projects [Notch Butte and Lava Beds] by year end
2011." Id. at 1-2.
50. Lava Beds has failed to bring the project online by the Scheduled
Operation Date of May 1, 2007. Lava Beds has failed to bring the project online by the
amended Scheduled Operation Date of September 1, 2010. Lava Beds has failed to
achieve its Operation Date by July 1, 2011, within 10 months of its amended Scheduled
Operation Date and defaulted under the FESA, at that time. Lava Beds failed to bring
the project online by year end 2011, as it committed to at the time of default. Lava Beds
has refused to pay the required construction deposit to move forward with the
construction of the required transmission and interconnection facilities, and has been
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -21
removed from the generator interconnection queue, which will require a new application
and possibly a new study process. The date for construction of the interconnection
facilities associated with the Jack Ranch projects cannot be an event of Force Majeure
under paragraph 16.1 of the FESA. Exergy, by its own actions, has refused to move the
interconnection process forward or to take the steps necessary to bring the Lava Beds
project online in a commercially reasonable period of time. For these reasons, Idaho
Power requests an Order from the Commission declaring that no Force Majeure event
has occurred to excuse default, and that Lava Beds is not diligently pursuing a cure of
its default within a commercially reasonable period of time.
C. Termination of the FESA Is in the Publiclnteresl
51. Idaho Power's ability to terminate the FESA upon default and breach of
Lava Beds for failure to meet the Operation Date and failure to cure its default pursuant
to Sections 5 and 22 of the FESA is in the public interest. The FESA currently provides
for rates that have subsequently been found to not be in the public interest. In The
Matter of the Commission's Review of PURPA OF Contract Provisions, Case No. GNR-
E-11-03, Order No. 32498 at 2 (March 22, 2012), this Commission stated,
We also find, however, as stated on the record at the conclusion of
the March 21, 2012, hearing, that the methodologies previously
approved by this CommisSion, as utilized and applied by Idaho
Power, do not currently produce rates that reflect Idaho Power's
avoided costs and are not just and reasonable, nor in the public
interest. Effective March 21! 2012, and continuing until altered or
amended by Order of the Commission at the conclusion of this
case, contracts for all projects over 100 kW entered into by Idaho
Power and presented to this Commission for approval will be
individually evaluated with regard to all terms contained therein.
(Emphasis added.) The rates at issue in this Complaint Petition are provided in Article
VII of the FESA. The FESA's rates have subsequently been determined, as described
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -22
above, to not be in the public interest. If the Commission issues an order declaring that
Idaho Power is authorized to terminate the FESA upon the failure of Lava Beds to meet
its Operation Date and to subsequently cure it default of the FESA, rates that have been
deemed not to be in the public interest will likewise be terminated. If Idaho Power and
Lava Beds were to execute a new FESA, the parties must obviously comply with Order
32498, thereby establishing rates that are in the public interest pursuant to the
methodology approved in Order 32498.
REQUESTED RELIEF -CONCLUSION
52. Idaho Power respectfully requests that the Commission grant the following
relief:
1) Entry of a declaratory order that the Commission has jurisdiction
over the interpretation and enforcement of the FESA and the GIA; and
2) Entry of a declaratory order that Exergy's claim of force majeure
does not exist so as to excuse Lava Beds' failure to meet the amended Scheduled
Operation Date, Operation Date, and failure to cure its default; and
3) Entry of a declaratory order that Lava Beds has failed to place its
project in service by the amended Scheduled Operation Date of September 1, 2010;
has failed to achieve the Operation Date by July 1, 2011, which is within 10 months of
the amended Scheduled Operation Date; and has received Notice of its default, as of
July 26, 2011; and
4) Entry of a declaratory order that Lava Beds did not cure its default
of the FESA within 60 days of receiving Notice of Default, and has not diligently pursued
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -23
a cure of said default within a commercially reasonable time, and that Idaho Power may
terminate the FESA; and
5) Any further relief to which Idaho Power is entitled.
Respectfully submitted at Boise, Idaho, this 31st day of July 2012.
---u~lUIe AN E. WALKER (?I~
Attorney for Idaho Power Company
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -24
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that, on this 31 st day of July 2012 I served a true and
correct copy of IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR
DECLARATORY ORDER upon the following named parties by the method indicated
below, and addressed to the following:
Exergy Development Group, LLC
Peter J. Richardson
RICHARDSON & O'LEARY, PLLC
515 North 27th Street (83702)
P.O. Box 7218
Boise, Idaho 83707
l Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
_ Email [e-mail]
Danielle Clark, Paralegal
IDAHO POWER COMPANY'S COMPLAINT AND PETITION FOR DECLARATORY ORDER -25
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 1
Article
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Definitions
FllUJENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
LA V A BEDS WIND PARK LLC
TABLE OF CONTENTS
No Reliance on Idaho Power
Warranties
Conditions to Acceptance of Energy
Term and Operation Date
Purchase and Sale of Net Energy
Purchase Price and Method of Payment
Environmental Attributes
Facility and Interconnection
Disconnection Equipment
Metering and Telemetry
Records
Protection
Operations
Indemnification and Insuran'ce
Force Majeure
Land Rights
Liability; Dedication
Several Obligations
Waiver
Choice of Laws and Venue
Disputes and Default
Governmental Authorization
Commission Order
Successors and Assigns
Modification
Taxes
Notices
Additional Terms and Conditions
Severability
Counterpalts
Entire Agreement Signatures
Appendix A
Appendix B
Appendix C
:F:CEIVEO
,--i'_tD
4:48
10/10/2005
FIRM ENERGY SALES AGREEMENT
(10 aMW or Less)
LA V A BEDS WIND PARK LLC
Project Number: 41455200
THIS AGREEMENT, entered into on this J....!:L day of 0 c+ 2005 between
LAVA BEDS WlND PARK, an Idaho limited liability company (Seller), and IDAHO POWER
COMPANY, an Idaho corporation (Idaho Power), hereinafter sometimes referred to collectively as
"Parties" or individually as "Party."
WITNESSETH:
WHEREAS, Seller will design, construct, own, maintain and operate an electric generation
facility; and
WHEREAS, Seller wishes to sell, and Idaho Power is willing to purchase, firm electric energy
produced by the Seller's Facility.
THEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the
Parties agree as follows:
ARTICLE I: DEFlNITIONS
As used in this Agreement and the appendices attached hereto, the following terms
shall have the following meanings:
1.1 "Commission" -The Idaho Public Utilities Commission.
1.2 "Contract Year" -The period commencing each calendar year on the same calendar date as the
Operation Date and ending 364 days thereafter.
1.3 "Designated Dispatch Facility" -Idaho Power's Systems Operations Group, or any subsequent
group designated by Idaho Power.
1.4 "Disconnection Equipment" -All equipment specified in Schedule 72 and the Generation
Interconnection Process and any additional equipment specified in Appendix B.
1.5 "Facility" -That electric generation facility described in Appendix B of this Agreement.
- 1-
10/1012005
1.6 "First Energy Date" -The day commencing at 0001 hours, Mountain Time, following the day that
Seller has satisfied the requirements of Article IV and the Seller begins delivering energy to
Idaho Power's system at the Point of Delivery.
1.7 "Generation Interconnection Process" -Idaho Power's generation interconnection 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.
1.8 "Inadvertent Energy" -Electric energy Seller does not intend to generate. Inadvertent energy is
more particularly described in paragraph 7.3 of this Agreement.
1.9 "Interconnection Facilities" -All equipment specified in Schedule 72 and the Generation
Interconnection Process and any additional equipment specified in Appendix B.
1.10 "Initial Capacity Determination" -The process by which Idaho Power confirms that under
normal or average design conditions the Facility will generate at no more than 10 average MW
per month and is therefore eligible to be paid the published rates in accordance with Commission
Order No. 29632.
1.11 "Losses" -The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result
of the transformation and transmission of energy between the point where the Facility's energy is
metered and the point the Facility's energy is delivered to the Idaho Power electrical system. The
loss calculation formula will be as specified in Appendix B of this Agreement.
1.12 "Market Energy Cost" -Eighty-five percent (85%) of the weighted average ofthe daily on-peak
and off-peak Dow Jones Mid-Columbia Index (Dow Jones Mid-C Index) prices for non-firm
energy. If the Dow Jones Mid-Columbia Index price is discontinued by the reporting agency, both
Parties will mutually agree upon a replacement index, which is similar to the Dow Jones Mid­
Columbia Index. The selected replacement index will be consistent with other similar agreements
and a commonly used index by the electrical industry.
1.13 "Material Breach" - A Default (paragraph 22.2.1) subject to paragraph 22.2.2.
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10/10/2005
1.14 "Maximum Capacity Amount" -The maximum capacity (MW) of the Facility will be as
specified in Appendix B of this Agreement.
1.15 "Metering Equipment" -All equipment specified in Schedule 72, the Generation Interconnection
Process, this Agreement and any additional equipment specified in Appendix B required to
measure, record and telemeter power flows between the Seller's electric generation plant and
Idaho Power's system.
1.16 "Net Energy" -All of the electric energy produced by the Facility, less Station Use, less Losses,
expressed in kilowatt hours (kWh). Seller commits to deliver all Net Energy to Idaho Power at
the Point of Delivery for the full term of the Agreement. Net Energy does not include Inadvertent
Energy.
1.17 "Operation Date" -The day commencing at 000 1 hours, Mountain Time, following the day that
all requirements of paragraph 5.2 have been completed.
1.18 "Point of Deli very" -The location specified in Appendix B, where Idaho Power's and the
Seller's electrical facilities are interconnected.
1.19 "Prudent Electrical Practices" -Those practices, methods and equipment that are commonly and
ordinarily used in electrical engineering and operations to operate electric equipment lawfully,
safely, dependably, efficiently and economically.
1.20 "Scheduled Operation Date" -The date specified in Appendix B when Seller anticipates
achieving the Operation Date.
1.21 "Schedule 72" -Idaho Power's Tariff Nola 1, Schedule 72 or its successor schedules as
approved by the Commission.
1.22 "Season" -The three periods identified in paragraph 6.2.1 of this Agreement.
1.23 "Special Facilities" -Additions or alterations of transmission andlor distribution lines and
transformers as described in Appendix B, Schedule 72 or the Generation Interconnection Process
required to safely interconnect the Seller's Facility to the Idaho Power system.
1.24 "Station Use" -Electric energy that is used to operate equipment that is auxiliary or otherwise
related to the production of electricity by the Facility.
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10110/2005
1.25 "Surplus Energy" -(1) Net Energy produced by the Seller's Facility and delivered to the Idaho
Power electrical system during the month which exceeds 110% of the monthly Net Energy
Amount for the corresponding month specified in paragraph 6.2. or (2) If the Net Energy
produced by the Seller's Facility and delivered to the Idaho Power electrical system during the
month is less than 90% of the monthly Net Energy Amount for the corresponding month
specified in paragraph 6.2, then all Net Energy delivered by the Facility to the Idaho Power
electrical system for that given month or (3) All Net Energy produced by the Seller's Facility and
delivered by the Facility to the Idaho Power electrical system prior to the Operation Date.
1.26 "Total Cost of the Facility" -The total cost of structures, equipment and appurtenances.
ARTICLE IT: NO RELIANCE ON IDAHO POWER
2.1 Seller Independent Investigation -Seller warrants and represents to Idaho Power that in entering
into this Agreement and the undertaking by Seller of the obligations set forth herein, Seller has
investigated and determined that it is cap'able of performing hereunder and has not relied upon
the advice, experience or expertise of Idaho Power in connection with the transactions
contemplated by this Agreement.
2.2 Seller Independent Experts -All professionals or experts including, but not limited to, engineers,
attorneys or accountants, that Seller may have consulted or relied on in undertaking the
transactions contemplated by this Agreement have been solely those of Seller.
ARTICLE Ill: WARRANTIES
3.1 No Warranty by Idaho Power -Any review, acceptance or failure to review Seller's design,
specifications, equipment or facilities shall not be an endorsement or a confirmation by Idaho
Power and Idaho Power makes no warranties, expressed or implied, regarding any aspect of
Seller's design, specifications, equipment or facilities, including, but not limited to, safety,
durability, reliability, strength, capacity, adequacy or economic feasibility.
3.2 Qualifying Facility Status -Seller warrants that the Facility is a "Qualifying Facility," as that term
-4-
10110/2005
is used and defined in 18 CFR §292.207. After initial qualification, Seller will take such steps as
may be required to maintain the Facility's Qualifying Facility status during the term of this
Agreement and Seller's failure to maintain Qualifying Facility status will be a Material Breach of
this Agreement. Idaho Power reserves the right to review the Seller's Qualifying Facility status
and associated support and compliance documents at anytime during the term of this Agreement.
ARTICLE IV: CONDITIONS TO ACCEPTANCE OF ENERGY
4.1 Prior to the First Energy Date and as a condition of Idaho Power's acceptance of deliveries of
energy from the Seller, Seller shall:
4.1.1 Submit proof to Idaho Power that all licenses, permits or approvals necessary for Seller's
operations have been obtained from applicable federal, state or local authorities,
including, but not limited to, evidence of compliance with Subpart B, 18 CPR 292.207.
4.1.2 Opinion of Counsel-Submit to Idaho Power an Opinion Letter signed by an attorney
admitted to practice and in good standing in the State of Idaho providing an
opinion that Seller's licenses, permits and approvals as set forth in paragraph 4.1.1
above are legally and validly issued, are held in the name of the Seller and, based on
a reasonable independent review, counsel is of the opinion that Seller is in substantial
compliance with said permits as of the date of the Opinion Letter. The Opinion Letter
will be in a form acceptable to Idaho Power and will acknowledge that the attorney
rendering the opinion understands that Idaho Power is relying on said opinion. Idaho
Power's acceptance of the form will not be unreasonably withheld. The Opinion Letter
will be governed by and shall be interpreted in accordance with the legal opinion accord
of the American Bar Association Section of Business Law (1991).
4.1.3 Initial Capacity Determination -Submit to Idaho Power such data as Idaho Power may
reasonably require to perform the Initial Capacity Determination. Such data will include
but not be limited to, equipment specifications, prime mover data, resource
characteristics, normal and/or average operating design conditions and Station Use data.
-5~
10110/2005
Upon receipt of this information, Idaho Power will review the provided data and if
necessary, request additional data to complete the Initial Capacity Determination within a
reasonable time.
4.1.4 Engineer's Certifications -Submit an executed Engineer's Certification of Design &
Construction Adequacy and an Engineer's Certification of Operations and Maintenance
(O&M) Policy as described in Commission Order No. 21690. These certificates will be
in the form specified in Appendix C but may be modified to the extent necessary to
recognize the different engineering disciplines providing the certificates.
4.1.5 Insurance -Submit written proof to Idaho Power of all insurance required in Article XV.
4.1.6 Interconnection -Provide written proof to Idaho Power that all Schedule 72 and
Generation Interconnection Process requirements have been completed.
4.1.7 Written Acceptance -Request and obtain written confirmation from Idaho Power that all
conditions to acceptance of energy have been fulfilled. Such written confirmation shall be
provided within a commercially reasonable time following the Seller's request and will
not be unreasonably withheld by Idaho Power.
ARTICLE V: TERM AND OPERATION DATE
5.1 Term -Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective
on the date first written and shall continue in full force and effect for a period of twenty (20)
Contract Years from the Operation Date.
5.2 Operation Date -The Operation Date may occur only after the Facility has achieved all of the
following:
a) Achieved the First Energy Date.
b) Commission approval of this Agreement in a form acceptable to Idaho Power has
been received.
c) Seller has demonstrated to Idaho Power's satisfaction that the Facility is complete and
able to provide energy in a consistent, reliable and safe manner and has requested an
-6-
1011012005
Operation Date in written form.
d) Seller has requested an Operation Date from Idaho Power in a written format.
e) Seller has received written confirmation from Idaho Power of the Operation Date.
This confirmation will not be unreasonably withheld by Idaho Power.
5.3 Seller's failure to achieve the Operation Date within ten (10) months of the Scheduled Operation
Date will be an event of default.
ARTICLE VI: PURCHASE AND SALE OF NET ENERGY
6.1 Delivery and Acceptance of Net Energy -Except when either Party's performance is excused as
provided herein, Idaho Power will purchase and Seller will sell all of the Net Energy to Idaho
Power at the Point of Delivery. All Inadvertent Energy produced by the Facility will also be
deli vered by the Seller to Idaho Power at the Point of Deli very. At no time will the total amount
of Net Energy and/or Inadvertent Energy produced by the Facility and delivered by the Seller to
the Point of Delivery exceed the Maximum Capacity Amount.
6.2 Net Energy Amounts -Seller intends to produce and deliver Net Energy in the following monthly
amounts:
6.2.1 Initial Year Monthly Net Energy Amounts:
Season 1
Season 2
Season 3
March
April
May
July
August
November
December
June
September
October
January
February
-7-
6,542,180
6,307,065
6,114,004
4,792,529
4,160,005
4,725,276
3,781,602
4,708,479
3,779,208
3,199,119
3,990,161
3,310,133
10/1012005
.,
6.2.2 Ongoing Monthly Net Energy Amounts -Seller shall initially provide Idaho Power with
one year of monthly generation estimates (Initial Year Monthly Net Energy Amounts)
and beginning at the end of month nine and every three months thereafter provide Idaho
Power with an additional three months of forward generation estimates. This information
will be provided to Idaho Power by written notice in accordance with paragraph 28.1, no
later than 5:00 PM of the 5th day following the end of the previous month. If the Seller
does not provide the Ongoing Monthly Net Energy amounts in a timely manner, Idaho
Power will use the most recent 3 months of the Initial Year Monthly Net Energy
Amounts specified in paragraph 6.2.1 for the next 3 months of monthly Net Energy
amounts.
6.2.3 Seller's Adjustment of Net Energy Amount -
6.2.3.1 No later than the Operation Date, by written notice given to Idaho Power in
accordance with paragraph 28.1, the Seller may revise all of the previously
provided Initial Year Monthly Net Energy Amounts.
6.2.3.2 Beginning with the end of the 3rd month after the Operation Date and at the end
of every third month thereafter: (1) the Seller may not revise the immediate next
three months of previously provided Net Energy Amounts, (2) but by written
notice given to Idaho Power in accordance with paragraph 28.1, no later than
5 :00 PM of the 5th day following the end of the previous month, the Seller may
revise all other previously provided Net Energy Amounts. Failure to provide
timely written notice of changed amounts will be deemed to be an election of no
change.
6.2.4 Idaho Power Adjustment of Net Energy Amount -If Idaho Power is excused from
accepting the Seller's Net Energy as specified in paragraph 14.2.1 or if the Seller declares
a Suspension of Energy Deliveries as specified in paragraph 14.3.1 and the Seller's
declared Suspension of Energy Deliveries is accepted by Idaho Power, the Net Energy
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10/10/2005
Amount as specified in paragraph 6.2 for the specific month in which the reduction or
suspension under paragraph 14.2.1 or 14.3.1 occurs will be reduced in accordance with
the following:
Where:
NEA = Current Month's Net Energy Amount (Paragraph 6.2)
SGU = a.) If Idaho Power is excused from accepting the Seller's Net
Energy as specified in paragraph 14.2.1 this value will be
equal to the percentage of curtailment as specified by
Idaho Power multiplied by the TGU as defined below.
b.) If the Seller declares a Suspension of Energy Deliveries as
specified in paragraph 14.3.1 this value will be the sum of
the individual generation units size ratings as specified in
Appendix B that are impacted by the circumstances
causing the Seller to declare a Suspension of Energy
Deliveries.
TGU
RSH
TH
= Sum of all of the individual generator ratings of the generation
units at this Facility as specified in Appendix B of this
agreement.
= Actual hours the Facility's Net Energy deliveries were either
reduced or suspended under paragraph 14.2.1 or 14.3.1
= Actual total hours in the current month
Resulting formula being:
Adjusted
Net Energy = NEA
Amount -( ( SGU X NEA
TGU
RSH
TH
This Adjusted Net Energy Amount will be used in applicable Surplus Energy calculations for
only the speci~ic month in which Idaho Power was excused from accepting the Seller's Net
Energy or the Seller declared a Suspension of Energy.
6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net Energy in any
Contract Year in an amount equal to at least ten percent (10%) of the sum of the Initial Y ear Net
Energy Amounts as specified in paragraph 6.2 shall constitute an event of default.
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10/to/2005
ARTICLE VII: PURCHASE PRICE AND METHOD OF PAYMENT
7.1 Net Energy Purchase Price -For all Net Energy, Idaho Power will pay the non-Ievelized energy
price in accordance with Commission Order 29646 with seasonalization factors applied:
Season 1 -(73.50 %) Season 2 -(120.00 %) Season 3 -(l00.00 %)
Year MillslkWh MillslkWh MillslkWh
2005 37.00 60.41 50.34
2006 37.85 61.80 51.50
2007 38.73 63.23 52.69
2008 39.62 64.68 53.90
2009 40.53 66.17 55.14
2010 41.46 67.69 56.41
2011 42.42 69.25 57.71
2012 43.39 70.85 59.04
2013 44.39 72.48 60.40
2014 45.42 74.16 61.80
2015 46.47 75.86 63.22
2016 47.54 77.62 64.68
2017 48.63 79.40 66.17
2018 49.76 81.24 67.70
2019 50.91 83.11 69.26
2020 52.07 85.02 70.85
2021 53.28 86.99 72.49
2022 54.51 88.99 74.16
2023 55.76 91.04 75.87
2024 57.05 93.14 77.62
2025 58.37 95.29 79.41
2026 59.72 97.50 81.25
7.2 Surplus Energy Price -For all Surplus Energy, Idaho Power shall pay to the Seller the current
month's Market Energy Cost or the Net Energy Purchase Price specified in paragraph 7.1,
whichever is lower.
7.3 Inadvertent Energy -
7.3.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which
the Seller delivers to Idaho Power at the Point of Delivery that exceeds 10,000 kW
multiplied by the hours in the specific month in which the energy was delivered. (For
example January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh.
Energy delivered in January in excess of 7,440, 000 kWh in this example would be
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Inadvertent Energy.)
7.3.2 Although Seller intends to design and operate the Facility to generate no more than 10
average MW and therefore does not intend to generate Inadvertent Energy, Idaho Power
will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but
will not purchase or pay for Inadvertent Energy
7.4 Payment Due Date -Energy payments to the Seller will be disbursed within 30 days of the date
which Idaho Power receives and accepts the documentation of the monthly Net Energy and
Inadvertent Energy actually produced by the Seller's Facility and delivered to Idaho Power as
specified in Appendix A.
7.5 Continuing Jurisdiction of the Commission -This Agreement is a special contract and, as such,
the rates, terms and conditions contained in this Agreement will be construed in accordance with
Idaho Power Company v. Idaho Public Utilities Commission and Afton Energy. Inc., 107 Idaho
781,693 P.2d 427 (1984); Idaho Power Company v. Idaho Public Utilities Commission, 107
Idaho 1122, 695 P.2d 1 261 (1985); Afton Energy, Inc, v. Idaho Power Company, 111 Idaho 925,
729 P.2d 400 (1986); Section 210 ofthe Public Utilities Regulatory Policies Act of 1978 and 18
CPR §292.303-308.
ARTICLE VID: ENVIRONMENTAL ATTRIBUTES
8.1 Idaho Power waives any claim to ownership of Environmental Attributes. Environmental
Attributes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy
Credits (RECs) and Tradable Renewable Certificates (TRCs) directly associated with the
production of energy from the Seller's Facility.
ARTICLE IX: FACILITY AND INTERCONNECTION
9.1 Design of Facility -Seller will design, construct, install, own, operate and maintain the Facility
and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and
delivery of Net Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full
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term of the Agreement.
9.2 Interconnection Facilities -Except as specifically provided for in this Agreement, the required
Interconnection Facilities will be in accordance with Schedule 72, the Generation Interconnection
Process and Appendix B. The Seller is responsible for all costs associated with this equipment as
specified in Schedule 72 and the Generation Interconnection Process, including but not limited to
initial costs incurred by Idaho Power for equipment costs, installation costs and ongoing monthly
Idaho Power operations and maintenance expenses.
ARTICLE X: DISCONNECTION EQUIPMENT
10.1 Except as specifically provided for in this Agreement, the required Disconnection Equipment will
be in accordance with Schedule 72, the Generation Interconnection Process and Appendix B.
The Seller is responsible for all costs associated with this equipment as specified in Schedule 72
and the Generation Interconnection Process, including but not limited to initial costs incurred by
Idaho Power for equipment costs, installation costs and Idaho Power ongoing monthly operations
and monthly maintenance expenses.
ARTICLE XI: METERING AND TELEMETRY
11.1 Metering and Telemetry -Idaho Power shall, for the account of Seller, provide, install, and
maintain Metering Equipment to be located at a mutually agreed upon location to record and
measure power flows to Idaho Power in accordance with Schedule 72, Generation
Interconnection Process and Appendix B of this Agreement. The Metering Equipment will be at
the location and the type required to measure, record and report the Facility's Net Energy, Station
Use, Inadvertent Energy and maximum energy deliveries (kW) in a manner to provide Idaho
Power adequate energy measurement data to administer this Agreement and to integrate this
Facility's energy production into the Idaho Power electrical system. All Metering Equipment and
installation costs shall be borne by Seller, including costs incurred by Idaho Power for inspecting
and testing such equipment at reasonable intervals at Idaho Power's actual cost of providing this
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Metering Equipment and services. The Metering Equipment shall be at the location described in
Appendix B of this Agreement. All meters used to determine the billing hereunder shall be
sealed and the seals shall be broken only by Idaho Power when the meters are to be inspected,
tested or adjusted.
11.2 ·Meter Inspection -Idaho Power shall inspect installations annually and test meters on the
applicable periodic test schedule relevant to the equipment installed as specified in Appendix B of
this Agreement. If requested by Seller, Idaho Power shall make a special inspection or test of a
meter and Seller shall pay the reasonable costs of such special inspection. Both Parties shall be
notified of the time when any inspection or test shall take place, and each Party may have
representatives present at the test or inspection. If a meter is found to be inaccurate or defective,
it shall be adjusted, repaired or replaced, at Idaho Power's expense in order to provide accurate
metering. If a meter fails to register, or if the measurement made by a meter during a test varies
by more than two percent (2 %) from the measurement made by the standard meter used in the
test, adjustment (either upward or downward) to the payments Seller has received shall be made
to correct those payments affected by the inaccurate meter for the actual period during which
inaccurate measurements were made. If the actual period cannot be determined, corrections to
the payments will be based on the shorter of (1) a period equal to one-half the time from the date
of the last previous test of the meter to the date of the test which established the inaccuracy of the
meter; or (2) six (6) months.
11.3 Telemetry -Idaho Power will install, operate and maintain at Seller's expense metering,
communications and telemetry equipment which will be capable of providing Idaho Power with
continuous instantaneous telemetry of Seller's Net Energy and Inadvertent Energy produced and
delivered to the Idaho Power Point of Delivery to Idaho Power's Designated Dispatch Facility.
ARTICLE XIl-RECORDS
12.1 Maintenance of Records -Seller shall maintain at the Facility or such other location mutually
acceptable to the Parties adequate total generation, Net Energy, Station Use, Inadvertent Energy
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and maximum generation (kW) records in a form and content recommended by Idaho Power.
12.2 Inspection -Either Party, after reasonable notice to the other Party, shall have the right, during
normal business hours, to inspect and audit any or all generation, Net Energy, Station Use,
Inadvertent Energy and maximum generation (kW) records pertaining to the Seller's Facility.
ARTICLE XIII -PROTECTION
13.1 Seller shall construct, operate and maintain the Facility and Seller-furnished Interconnection
Facilities in accordance with Schedule 72, the Generation Interconnection Process, Appendix B
of this Agreement, Prudent Electrical Practices, the National Electrical Code, the National
Electrical Safety Code and any other applicable local, state and federal codes. Seller
acknowledges receipt of the Generation Interconnection Process. If, in the reasonable opinion of
Idaho Power, Seller's operation of the Facility or Interconnection Facilities is unsafe or may
otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho
Power may physically interrupt the flow of energy from the Facility as specified within Schedule
72, the Generation Interconnection Process or take such other reasonable steps as Idaho Power
deems appropriate. Except in the case of an emergency, Idaho Power will attempt to notify Seller
of such interruption prior to its occurrence as provided in paragraph 14.9. Seller shall provide
and maintain adequate protective equipment sufficient to prevent damage to the Facility and
Seller-furnished Interconnection Facilities. In some cases, some of Seller's protective relays will
provide back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such
relays annually and Seller will pay the actual cost of such annual testing.
ARTICLE XN -OPERATIONS
14 .1 Conununications Idaho Power and the Seller shall maintain appropriate operating
communications through Idaho Power's Designated Dispatch Facility in accordance with
Appendix A of this Agreement.
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14.2 Energy Acceptance-
14.2.1 Idaho Power shall be excused from accepting and paying for Net Energy or accepting
Inadvertent Energy produced by the Facility and delivered by the Seller to the Point of
Delivery, if it is prevented from doing so by an event of Force Majeure, or if Idaho Power
determines that curtailment, interruption or reduction of Net Energy or Inadvertent
Energy deliveries is necessary because of line construction or maintenance requirements,
emergencies, electrical system operating conditions on its system or as otherwise required
by Prudent Electrical Practices. If, for reasons other than an event of Force Majeure,
Idaho Power requires such a curtailment, interruption or reduction of Net Energy
deliveries for a period that exceeds twenty (20) days, beginning with the twenty-first day
of such interruption, curtailment or reduction, Seller will be deemed to be delivering Net
Energy at a rate equivalent to the pro rata daily average of the amounts specified for the
applicable month in paragraph 6.2. Idaho Power will notify Seller when the interruption,
curtailment or reduction is terminated.
14.2.2 If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or
Interconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's
equipment, personnel or service to its customers, Idaho Power may physically interrupt
the flow of energy from the Facility as specified within Schedule 72 or take such other
reasonable steps as Idaho Power deems appropriate.
14.2.3 Under no circumstances will the Seller deliver Net Energy and/or Inadvertent Energy
from the Facility to the Point of Delivery in an amount that exceeds the Maximum
Capacity Amount. Seller's failure to limit deliveries to the Maximum Capacity Amount
will be a Material Breach of this Agreement.
14.3 Seller Declared Suspension of Energy Deliveries
14.3.1 If the Seller's Facility experiences a forced outage due to equipment failure which is not
caused by an event of Force Majeure or by neglect, disrepair or lack of adequate
preventative maintenance of the Seller's Facility, Seller may, after giving notice as
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-----.----------------------------
provided in paragraph 14.3.2 below, temporarily suspend all deliveries of Net Energy to
Idaho Power from the Facility or from individual generation unites) within the Facility
impacted by the forced outage for a period of not less than 48 hours to correct the forced
outage condition ("Declared Suspension of Energy Deliveries"). The Seller's Declared
Suspension of Energy Deliveries will begin at the start of the next full hour following the
Seller's telephone notification as specified in paragraph 14.3.2 and will continue for the
time as specified (not less than 48 hours) in the written notification provided by the
Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Net
Energy Amount will be adjusted as specified in paragraph 6.2.4.
14.3.2 If the Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in
paragraph 14.3.1, the Seller will notify the Designated Dispatch Facility by telephone.
The beginning hour of the Declared Suspension of Energy Deliveries will be at the
earliest the next full hour after making telephone contact with Idaho Power. The Seller
will, within 24 hours after the telephone contact, provide Idaho Power a written notice in
accordance with Article xxvrn that will contain the beginning hour and duration of the
Declared Suspension of Energy Deliveries and a description of the conditions that caused
the Seller to initiate a Declared Suspension of Energy Deliveries. Idaho Power will
review the documentation provided by the Seller to determine Idaho Power's acceptance
of the described forced outage as qualifying for a Declared Suspension of Energy
Deliveries as specified in paragraph 14.3.1. Idaho Power's acceptance of the Seller's
forced outage as an acceptable forced outage will be based upon the clear documentation
provided by the Seller that the forced outage is not due do an event of Force Majeure or
by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility.
14.5 Voltage Levels -Seller, in accordance with Prudent Electrical Practices shall minimize voltage
fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power may, in
accordance with Prudent Electrical Practices, upon one hundred eighty (180) days' notice to the
Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of
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,"
Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as
necessary to accommodate the modified nominal operating voltage level.
14.6 Generator Ramping -Idaho Power, in accordance with Prudent Electrical Practices, shall have the
right to limit the rate that generation is changed at startup, during normal operation or following
reconnection to Idaho Power's electrical system. Generation ramping may be required to permit
Idaho Power's voltage regulation equipment time to respond to changes in power flow.
14.7 Scheduled Maintenance -On or before January 31 of each calendar year, Seller shall submit a
written proposed maintenance schedule of significant Facility maintenance for that calendar year
and Idaho Power and Seller shall mutually agree as to the acceptability of the proposed schedule.
The Parties determination as to the acceptability of the Seller's timetable for scheduled
maintenance will take into consideration Prudent Electrical Practices, Idaho Power system
requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold
acceptance of the proposed maintenance schedule.
14.8 Maintenance Coordination -The Seller and Idaho Power shall, to the extent practical, coordinate
their respective line and Facility maintenance schedules such that they occur simultaneously.
14.9 Contact Prior to Curtailment -Idaho Power will make a reasonable attempt to contact the Seller
prior to exercising its rights to curtail, interrupt or reduce deliveries from the Seller's Facility.
Seller understands that in the case of emergency circumstances, real time operations of the
electrical system, and/or unplanned events Idaho Power may not be able to provide notice to the
Seller prior to interruption, curtailment, or reduction of electrical energy deliveries to Idaho
Power.
ARTICLE XV: lNDEMNIFICATION AND lNSURANCE
15.1 Indemnification -Each Party shall agree to hold harmless and to indemnify the other Party, its
officers, agents, affiliates, subsidiaries, parent company and employees against all loss, damage,
expense and liability to third persons for injury to or death of person or injury to property,
proximately caused by the indemnifying Party's construction, ownership, operation or
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maintenance of, or by failure of, any of such Party's works or facilities used in connection with
this Agreement. The indemnifying Party shall, on the other Party's request, defend any suit
asserting a claim covered by this indemnity. The indemnifying Party shall pay all costs, including
reasonable attorney fees that may be incurred by the other Party in enforcing this indemnity.
IS.2 Insurance -During the term of this Agreement, Seller shall secure and continuously carry the
following insurance coverage:
IS.2.1 Comprehensive General Liability Insurance for both bodily injury and property damage
with limits equal t6 $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for
similar property.
IS.2.2 The above insurance coverage shall be placed with an insurance company with an A.M.
Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss payee as
applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of liability
reduced without sixty (60) days' prior written notice to Idaho Power.
IS.3 Seller to Provide Certificate of Insurance -As required in paragraph 4.1.S herein and annually
thereafter, Seller shall furnish Idaho Power a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
IS.4 Seller to Notify Idaho Power of Loss of Coverage -If the insurance coverage required by
paragraph IS.2 shall lapse for any reason, Seller will immediately notify Idaho Power in writing.
The notice will advise Idaho Power of the specific reason for the lapse and the steps Seller is
taking to reinstate the coverage. Failure to provide this notice and to expeditiously reinstate or
replace the coverage will constitute a Material Breach of this Agreement.
ARTICLE XVI. FORCE MAJEURE
16.1 As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause
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beyond the control of the Seller or of Idaho Power which, despite the exercise of due diligence,
such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of
God, fire, flood, storms, wars, hostilities, civil strife, strikes and other labor disturbances,
earthquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after
the Operation Date, which, by the exercise of reasonable foresight such party could not
reasonably have been expected to avoid and by the exercise of due diligence, it shall be unable to
overcome. If either Party is rendered wholly or in part unable to perform its obligations under
this Agreement because of an event of Force Majeure, both Parties shall be excused from
whatever performance is affected by the event of Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after the
occurrence of the Force Majeure, give the other Party written notice describing
the particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no longer
duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing the
suspension of performance and which could and should have been fully
performed before such occurrence shall be excused as a result of such
occurrence.
ARTICLE XVII: LAND RIGHTS
17.1 Seller to Provide Access -Seller hereby grants to Idaho Power for the term of this Agreement all
necessary rights-of-way and easements to install, operate, maintain, replace, and remove Idaho
Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment, Protection
Equipment and other Special Facilities necessary or useful to this Agreement, including adequate
and continuing access rights on property of Seller. Seller warrants that it has procured sufficient
easements and rights-of-way from third parties so as to provide Idaho Power with the access
described above. All documents granting such easements or rights-of-way shall be subject to
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Idaho Power's approval and in recordable form.
17.2 Use of Public Rights-of-Way -The Parties agree that it is necessary to avoid the adverse
environmental and operating impacts that would occur as a result of duplicate electric lines being
constructed in close proximity. Therefore, subject to Idaho Power's compliance with paragraph
17.4, Seller agrees that should Seller seek and receive from any local, state or federal
governmental body the right to erect, construct and maintain Seller-furnished Interconnection
Facilities upon, along and over any and all public roads, streets and highways, then the use by
Seller of such public right-of-way shall be subordinate to any future use by Idaho Power of such
public right-of-way for construction and/or maintenance of electric distribution and transmission
facilities and Idaho Power may claim use of such public right-of-way for such purposes at any
time. Except as required by paragraph 17.4, Idaho Power shall not be required to compensate
Seller for exercising its rights under this paragraph 17.2.
17.3 Joint Use of Facilities -Subject to Idaho Power's compliance with paragraph 17.4, Idaho Power
may use and attach its distribution and/or transmission facilities to Seller's Interconnection
Facilities, may reconstruct Seller's Interconnection Facilities to accommodate Idaho Power's
usage or Idaho Power may construct its own distribution or transmission facilities along, over and
above any public right-of-way acquired from Seller pursuant to paragraph 17.2, attaching Seller's
Interconnection Facilities to such newly constructed facilities. Except as required by paragraph
17.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this
paragraph 17.3.
17.4 Conditions of Use -It is the intention of the Parties that the Seller be left in substantially the same
condition, both financially and electrically, as Seller existed prior to Idaho Power's exercising its
rights under this Article XVII. Therefore, the Parties agree that the exercise by Idaho Power of
any of the rights enumerated in paragraphs 17.2 and 17.3 shall: (1) comply with all applicable
laws, codes and Prudent Electrical Practices, (2) equitably share the costs of installing, owning
and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the
method of apportioning these costs, the dispute will be submitted to the Commission for
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resolution and the decision of the Commission will be binding on the Parties, and (3) shall
provide Seller with an interconnection to Idaho Power's system of equal capacity and durability
as existed prior to Idaho Power exercising its rights under this Article XVII.
ARTICLE XVIII: LIABILITY; DEDICATION
18.1 Nothing in this Agreement shall be construed to create any duty to, any standard of care with
reference to, or any liability to any person not a Party to this Agreement. No undertaking by one
Party to the other under any provision of this Agreement shall constitute the dedication of that
Party's system or any portion thereof to the other Party or to the public or affect the status of
Idaho Power as an independent public utility corporation or Seller as an independent individual or
entity.
ARTICLE XIX: SEVERAL OBLIGATIONS
19.1 Except where specifically stated in this Agreement to be otherwise, the duties, obligations and
liabilities of the Parties are intended to be several and not joint or collective. Nothing contained
in this Agreement shall ever be construed to create an association, trust, partnership or joint
venture or impose a trust or partnership duty, obligation or liability on or with regard to either
Party. Each Party shall be individually and severally liable for its own obligations under this
Agreement.
ARTICLE XX: WAIVER
20.1 Any waiver at any time by either Party of its rights with respect to a default under this Agreement
or with respect to any other matters arising in connection with this Agreement shall not be
deemed a waiver with respect to any subsequent default or other matter.
ARTICLE XXI: CHOICE OF LAWS AND VENUE
21.1 This Agreement shall be construed and interpreted in accordance with the laws ofthe State of
Idaho without reference to its choice of law provisions.
21.2 Venue for any litigation arising out of or related to this Agreement will lie in the District Court of
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the Fourth Iudicial District of Idaho in and for the County of Ada.
ARTICLE XXll: DISPUTES AND DEFAULT
22.1 Disputes -All disputes related to or arising under this Agreement, including, but not limited to,
the interpretation of the terms and conditions of this Agreement, will be submitted to the
Commission for resolution.
22.2 Notice of Default-
22.2.1 Defaults. If either Party fails to perform any of the terms or conditions of this
Agreement (an "event of default"), the nondefaulting Party shall cause notice in
writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably
demonstrates to the other Party that the default can be cured within a commercially
reasonable time but not within such sixty (60) day period and then fails to diligently
pursue such cure, then, the non defaulting Party may, at its option, terminate this
Agreement and/or pursue its legal or equitable remedies.
22.2.2 Material Breaches -The notice and cure provisions in paragraph 22.2.1 do not apply
to defaults identified in this Agreement as Material Breaches. Material Breaches must
be cured as expeditiously as possible following occurrence of the breach.
22.3 Security for Performance -Prior to the Operation Date and thereafter for the full term of this
Agreement, Seller will provide Idaho Power with the following:
22.3.1
22.3.2
Insurance -Evidence of compliance with the provisions of paragraph 15.2. If Seller
fails to comply, such failure will be a Material Breach and may only be cured by
Seller supplying evidence that the required insurance coverage has been replaced or
reinstated;
Engineer's Certifications -Every three (3) years after the Operation Date, Seller will
supply Idaho Power with a Certification of Ongoing Operations and Maintenance (0
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& M) from a Registered Professional Engineer licensed in the State of Idaho, which
Certification of Ongoing 0 & M shall be in the form specified in Appendix C. Seller's
failure to supply the required certificate will be an event of default. Such a default
may only be cured by Seller providing the required certificate; and
22.3.3 Licenses and Permits -During the full term of this Agreement, Seller shall maintain
compliance with all permits and licenses described in paragraph 4.1.1 of this
Agreement. In addition, Seller will supply Idaho Power with copies of any new or
additional permits or licenses. At least every fifth Contract Year, Seller will update the
documentation described in Paragraph 4.1.1. If at any time Seller fails to maintain
compliance with the permits and licenses described in paragraph 4.1.1 or to provide
the documentation required by this paragraph, such failure will be an event of default
and may only be cured by Seller submitting to Idaho Power evidence of compliance
from the permitting agency.
ARTICLE XXIll: GOVERNMENTAL AUTHORIZATION
23.1 This Agreement is subject to the jurisdiction of those governmental agencies having control over
either Party of this Agreement.
ARTICLE XXIV: COMMISSION ORDER
24.1 This Agreement shall become finally effective upon the Commission's approval of all terms and
provisions hereof without change or condition and declaration that all payments to be made to
Seller hereunder shall be allowed as prudently incurred expenses for ratemaking purposes.
ARTICLE XXV: SUCCESSORS AND ASSIGNS
25.1 This Agreement and all of the terms and provisions hereof shall be binding upon and inure to the
benefit of the respective successors and assigns of the Parties hereto, except that no assignment
hereof by either Party shall become effective without the written consent of both Parties being
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first obtained. Such consent shall not be unreasonably withheld. Notwithstanding the foregoing,
any party which Idaho Power may consolidate, or into which it may merge, or to which it may
conveyor transfer substantially all of its electric utility assets, shall automatically, without further
act, and without need of consent or approval by the Seller, succeed to all of Idaho Power's rights,
obligations and interests under this Agreement. This article shall not prevent a financing entity
with recorded or secured rights from exercising all rights and remedies available to it under law
or contract. Idaho Power shall have the right to be notified by the financing entity that it is
exercising such rights or remedies.
ARTICLE XXVI: MODIFICATION
26.1 No modification to this Agreement shall be valid unless it is in writing and signed by both Parties
and subsequently approved by the Commission.
ARTICLE XXVII: TAXES
27.1 Each Party shall pay before delinquency all taxes and other governmental charges which, iffailed
to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities.
ARTICLE XXVill: NOTICES
28.1 All written notices under this agreement shall be directed as follows and shall be considered
delivered when deposited in the U. S. Mail, first-class postage prepaid, as follows:
To Seller: Lava Beds Wind Park, LLC
Attn: James T. Carkulis
515 N 27th Street
P.O. Box 7218
Boise, Idaho 83702
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---.. -------------.
To Idaho Power:
Original document to:
Vice President, Power Supply
Idaho Power Company
POBox 70
Boise, Idaho 83707
Copy of document to:
Cogeneration and Small Power Production
Idaho Power Company
POBox 70
Boise, Idaho 83707
ARTICLE XXIX: ADDmONAL TERMS AND CONDITIONS
29.1 This Agreement includes the following appendices, which are attached hereto and included by
reference:
Appendix A
Appendix B
Appendix C
Generation Scheduling and Reporting
Facility and Point of Delivery
Engineer's Certifications
ARTICLE XXX: SEVERABILITY
30.1 The invalidity or unenforceability of any term or provision of this Agreement shall not affect the
validity or enforceability of any other terms or provisions and this Agreement shall be construed
in all other respects as if the invalid or unenforceable term or provision were omitted.
ARTICLE XXXI: COUNTERPARTS
31.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.
ARTICLE XXXII: ENTIRE AGREEMENT
32.1 This Agreement constitutes the entire Agreement of the Parties concerning the subject matter
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hereof and supersedes all prior or contemporaneous oral or written agreements between the
Parties concerning the subject matter hereof.
IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed
in their respective names on the dates set forth below:
Idaho Power Company Lava Beds Wind Park L.L.C.
By By
t7'
C. Miller, Sr. Vice President, Power Supply James T. Carkulis
Dated Dated
\ \
"Idaho Power" "Seller"
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APPENDIX A
A-I MONTHLY POWER PRODUCTION AND SWITCHING REPORT
At the end of each month the following required documentation will be submitted to:
Idaho Power Company
Attn: Cogeneration and Small Power Production
POBox 70
Boise, Idaho 83707
The Meter readings required on this report will be the reading on the Idaho Power Meter
Equipment measuring the Facility's total energy production, Station Usage, Inadvertent Energy delivered
to Idaho Power and the maximum generated energy (kW) as recorded on the Meter Equipment and/or any
other required energy measurements to adequately administer this Agreement.
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Idaho Power Company
Cogeneration and Small Power Production
MONTHLY POWER PRODUCTION AND SWITCHING REPORT
Project Name
Address
City
Meter Number:
End of Month kWh Meter Reading:
*
1
2
3
4
5
6
7
Beginning of Month kWh Meter:
Difference:
Times Meter Constant:
kWh for the Month:
Metered Demand:
Breaker Opening Record
Breaker Opening Reason Codes
Lack of Adequate Prime Mover
Forced Outage of Facility
Disturbance of IPCo System
Scheduled Maintenance
Testing of Protection Systems
Cause Unknown
Other (Explain)
State
Facility
Output
Month
Zip
Station
Usage
Year
Project Number:
Phone Number:
Station
Usage
=
Metered
Maximum Generation
kW
Net Generation
Breaker Closing Record
I hereby certify that the above meter readings are
true and correct as of Midnight on the last day of the
above month and that the switching record is accurate
and complete as required by the Firm Energy Sales
Agreement to whi~h I am a Party.
Signature Date
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A-2 ROUTINE REPORTING
Idaho Power Contact Information
Daily Energy Production Reporting
Call daily by 10 a.m., 1-800-356-4328 or 1-800-635-1093 and leave the following
information:
• Project Identification -Project Name and Project Number
• Current Meter Reading
• Estimated Generation for the current day
• Estimated Generation for the next day
Planned and Unplanned Project outages
Call 1-800-345-1319 and leave the following information:
• Project Identification -Project Name and Project Number
• Approximate time outage occurred
• Estimated day and time of project coming back online
Seller's Contact Information
24-Hour Project Operational Contact
Name:
Telephone Number:
Cell Phone:
Project On-site Contact information
Telephone Number: ________ _
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APPENDIXB
FACILITY AND POINT OF DELIVERY
PROJECT NO. 41455200
LA V A BEDS WIND PARK
B-1 DESCRIPTION OF FACILITY
The Facility will consist of 12 Wind turbines; model 77 GE SLE with individual generator ratings
of 1.5 MW for each unit, for a total Facility generator rating of 18.0 MW.
B-2 LOCATION OF FACILITY
Near:
Sections: ~Township: T2S Range: R32E County: Bingham Idaho.
B-3 SCHEDULED FIRST ENERGY AND OPERATION DATE
Seller has selected November 1, 2006 as the estimated Scheduled First Energy Date.
Seller has selected _....,M",-""a,-"v....,1 ... ,-=2:..::0,-,,0--,-7 ___ ,as the estimated Scheduled Operation Date.
In making these selections, Seller recognizes that adequate testing of the Facility and completion
of all requirements in paragraph 5.2 of this Agreement must be completed prior to the project
being granted an Operation Date. Idaho Power, based on the information supplied by the Seller,
will schedule its construction in accordance with Schedule 72 and the Generation Interconnection
Process.
B-4 MAXIMUM CAPACITY AMOUNT: This value will be 19.2 MW which is consistent with the
value provided by the Seller to Idaho Power in the Generation Interconnection process. This
value is the maximum energy (MW) that potentially could be delivered by the Seller's Facility to
the Idaho Power electrical system at any moment in time.
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B-5 POINT OF DELIVERY
"Point of Delivery" means, unless otherwise agreed by both Parties, the point of where the Sellers
Facility's energy is delivered to the Idaho Power electrical system. The Idaho Power Generation
Interconnection process will determine the specific Point of Delivery for this Facility. Upon
completion of the Generation Interconnection process the Point of Delivery identified by this
process will become an integral part of this Agreement.
B-6 LOSSES
If the Idaho Power Metering equipment is capable of measuring the exact energy deliveries by the
Seller to the Idaho Power electrical system at the Point of Delivery, no Losses will be calculated
for this Facility. If the Idaho Power Metering is unable to measure the exact energy deliveries by
the Seller to the Idaho Power electrical system at the Point of Delivery, a Losses calculation will
be established to measure the energy losses (kWh) between the Seller's Facility and the Idaho
Power Point of Delivery. This loss calculation will be initially set at 2% of the kWh energy
production recorded on the Facility generation metering equipment. At such time as Seller
provides Idaho Power with the electrical equipment specifications (transformer loss
specifications, conductor sizes, etc) of all of the electrical equipment between the Facility and the
Idaho Power electrical system, Idaho Power will configure a revised loss calculation formula to
be agreed to by both parties and used to calculate the kWh Losses for the remaining term of the
Agreement. If at anytime during the term of this Agreement, Idaho Power determines that the
loss calculation does not correctly reflect the actual kWh losses attributed to the electrical
equipment between the Facility and the Idaho Power electrical system, Idaho Power may adjust
the calculation and retroactively adjust the previous months kWh loss calculations.
B-7 METERING AND TELEMETRY
The Idaho Power Generation Interconnection process will determine the specific metering and
telemetry requirements for this Facility. At the minimum the Metering Equipment and Telemetry
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10/10/2005
equipment must be able to provide and record hourly energy deliveries to the Point of Delivery
and any other energy measurements required to administer this Agreement. These specifications
will include but not be limited to equipment specifications, equipment location, Idaho Power
provided equipment, Seller provided equipment, and all costs associated with the equipment,
design and installation of the Idaho Power provided equipment. The entire Generation
Interconnection process, including but not limited to the equipment specifications and
requirements will become an integral part of this Agreement. Seller will arrange for and make
available at Seller's cost communication circuit(s) compatible to Idaho Power's communications
equipment and dedicated to Idaho Power's use terminating at the Idaho Power facilities capable of
providing Idaho Power with continuous instantaneous information on the Facilities energy
production. Idaho Power provided equipment will be owned and maintained by Idaho Power,
with total cost of purchase, installation, operation, and maintenance, including administrative cost
to be reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with
Schedule 72 and the total metering cost will be included in the calculation of the Monthly
Operation and Maintenance Charges specified in Schedule 72.
B-7 SPECIAL F ACll..JTIES
The Idaho Power Generation Interconnection process will detennine the Special Facility
requirements for this Facility. These specifications will include but not be limited to equipment
specifications, equipment location, Idaho Power provided equipment, Seller provided equipment,
and all costs associated with the equipment, design and installation of the Idaho Power provided
equipment. The entire Generation mterconnection process, including but not limited to the
equipment specifications and requirements will become an integral part of this Agreement. Idaho
Power owned equipment will be maintained by Idaho Power, with total cost of purchase,
installation, operation, and maintenance, including administrative cost to be reimbursed to Idaho
Power by the Seller. Payment of these costs will be in accordance with Schedule 72 and the total
Special Facility cost will be included in the calculation of the Monthly Operation and
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10/10/2005
Maintenance Charges specified in Schedule 72.
B-8 REACTNE POWER
The Idaho Power Generation Interconnection process will determine the reactive power required
to be supplied by Idaho Power to the Seller, based upon information provided by the Seller. The
Generation Interconnection process will specify the equipment required on the Idaho Power
system to meet the Facility's reactive power requirements. These specifications will include but
not be limited to equipment specifications, equipment location, Idaho Power provided equipment,
Seller provided equipment, and all costs associated with the equipment, design and installation of
the Idaho Power provided equipment. The entire Generation Interconnection process, including
but not limited to the equipment specifications and requirements will become an integral part of
this Agreement. Idaho Power owned equipment will be maintained by Idaho Power, with total
cost of purchase, installation, operation, and maintenance, including administrative cost to be
reimbursed to Idaho Power by the Seller. Payment of these costs will be in accordance with
Schedule 72 and the total reactive power cost will be included in the calculation of the Monthly
Operation and Maintenance Charges specified in Schedule 72.
B-9 DISCONNECTION EQUIPMENT
Disconnection Equipment is required to insure that the Seller's Facility will be disconnected from
Idaho Power's system in the event of (1) the Sellers delivery of energy exceeds the Maximum
Capacity Amount or (2) Idaho Power or the Seller require interruption or curtailment of energy
deliveries to Idaho Power or (3) a disturbance on either Idaho Power's system or the Seller's
Facility. The Idaho Power Generation Interconnection process will determine the Disconnection
Equipment specifications and requirements for this Facility, this equipment is for protection of
the Idaho Power system and equipment only. These specifications will include but not be limited
to equipment specifications, equipment location, Idaho Power provided equipment, Seller
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provided equipment, and all costs associated with the equipment, design and installation of the
Idaho Power provided equipment. Seller will install all Seller provided equipment, control wire
and conduit necessary for the operation of the Disconnection Equipment. Through the
Generation Interconnection process, Idaho Power will supply details for the disconnection panel
and will test the equipment prior to any operations ofthe Facility, Seller will provide drawings of
their interconnection wiring for engineering approval prior to installation. The entire Generation
Interconnection process, including but not limited to the equipment specifications and
requirements will become an integral part of this Agreement. Idaho Power owned equipment will
be maintained by Idaho Power, with total cost of purchase, installation, operation, and
maintenance, including administrative cost to be reimbursed to Idaho Power by the Seller.
Payment of these costs will be in accordance with Schedule 72 and the total Disconnection
Equipment cost will be included in the calculation of the Monthly Operation and Maintenance
Charges specified in Schedule 72.
B-lO COSTS
The Idaho Power Generation Interconnection process and this Agreement will identify all cost for
this Facility to interconnect to the Idaho Power system, including but not limited to the cost of
Metering equipment, Telemetry equipment, Special Facilities, Reactive Power, Disconnection
equipment, Protection equipment and Interconnection Equipment. As specified in the Generation
Interconnection process and in accordance with Schedule 72 and this Agreement the Seller will
reimburse Idaho Power for all costs associated with this equipment. In addition to the equipment,
installation and construction charges as specified above, during the term of this Agreement, Seller
will pay Idaho Power the monthly operation and maintenance charge specified in Schedule 72 or
its successor schedules(s). The monthly operations and maintenance charge will begin on the
first day of the month following the date which Idaho Power has completed installation of the
Idaho Power provided equipment and the interconnection equipment is available for use by the
Facility. The monthly operations and maintenance charge will be based upon the initial cost paid
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by the Seller in accordance with Schedule 72. Upon reconciliation of the actual costs, in
accordance with Schedule 72 the monthly operations and maintenance charge will be adjusted to
reflect the actual cost incurred by Idaho Power and previously charged monthly operation and
maintenance expense will be revised to reflect the actual cost incurred by Idaho Power. Idaho
Power will refund or Seller will remit any underpayment of the adjusted monthly operations and
maintenance charge within sixty (60) days of the determination of this amount.
B-11 SALVAGE
No later than sixty (60) days after the termination or expiration of this Agreement, Idaho Power
will prepare and forward to Seller an estimate of the remaining value of those Idaho Power
furnished Interconnection Facilities as required under Schedule 72, the Generation
Interconnection Process and/or described in this Agreement, less the cost of removal and transfer
to Idaho Power's nearest warehouse, if the Interconnection Facilities will be removed. If Seller
elects not to obtain ownership of the Interconnection Facilities but instead wishes that Idaho
Power reimburse the Seller for said Facilities the Seller may invoice Idaho Power for the net
salvage value as estimated by Idaho Power and Idaho Power shall pay such amount to Seller
within thirty (30) days after receipt of the invoice. Seller shall have the right to offset the invoice
amount against any present or future payments due Idaho Power.
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APPENDIXC
ENGINEER'S CERTIFICATION
OF
OPERATIONS & MAINTENANCE POLICY
The undersigned on behalf of himself and
__________________ -', hereinafter collectively referred to as "Engineer,"
hereby states and certifies to the Seller as follows:
1. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho.
2. That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between
Idaho Power as Buyer, and ______________ ~as Seller, dated
3. That the cogeneration or small power production project which is the subject of the Agreement
and this Statement is identified as IPCo Facility No. ________ and is hereinafter referred to as
the "Project."
4. That the Project, which is commonly known as the __________ ~, is located in
Section __ Township ___ , Range ____ " Boise Meridian, ______ County, Idaho.
5. That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy
to Idaho Power for a twenty (20) year period.
6. That Engineer has substantial experience in the design, construction and operation of electric
power plants of the same type as this Project.
7. That Engineer has no economic relationship to the Design Engineer of this Project.
8. That Engineer has reviewed andlor supervised the review of the Policy for Operation and
Maintenance ("O&M") for this Project and it is his professional opinion that, provided said Project has
been designed and built to appropriate standards, adherence to said O&M Policy will result in the
-36-
10/10/2005
Project's producing at or near the design electrical output, efficiency and plant factor for a twenty (20)
year period.
9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement,
is relying on Engineer's representations and opinions contained in this Statement.
10. That Engineer certifies that the above statements are complete, true and accurate to the best of his
knowledge and therefore sets his hand and seal below.
By ________________________ _
(P.E. Stamp)
Dme __________________________ _
-37-
10110/2005
---------------------------------._--------------------
APPENDIXC
ENGINEER'S CERTIFICATION
OF
ONGOING OPERATIONS AND MAINTENANCE
The undersigned _______________ -', on behalf of himself and
________________ hereinafter collectively referred to as "Engineer," hereby
states and certifies to the Seller as follows:
1. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho.
2. That Engineer has reviewed the Energy Sales Agreement, hereinafter "Agreement," between
Idaho Power as Buyer, and ___________ ,as Seller, dated ___________ _
3. That the cogeneration or small power production project which is the subject of the Agreement
and this Statement is identified as IPCo Facility No. ______ and hereinafter referred to as the
"Project" .
4. That the Project, which is commonly known as the ______________ Project,
is located at ______________ -'
5. That Engineer recognizes that the Agreement provides for the Project to furnish electrical energy
to Idaho Power for a twenty (20) year period.
6. That Engineer has substantial experience in the design, construction and operation of electric
power plants of the same type as this Project.
7. That Engineer has no economic relationship to the Design Engineer of this Project.
8. That Engineer has made a physical inspection of said Project, its operations and maintenance
records since the last previous certified inspection. It is Engineer's professional opinion, based on the
Project's appearance, that its ongoing O&M has been substantially in accordance with said O&M Policy;
that it is in reasonably good operating condition; and that if adherence to said O&M Policy continues, the
Project will continue producing at or near its design electrical output, efficiency and plant factor for the
remaining ___ years of the Agreement.
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10110/2005
-----.---------------------------------------------------------------------------------
9. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement,
is relying on Engineer's representations and opinions contained in this Statement.
10. That Engineer certifies that the above statements are complete, true and accurate to the best of his
knowledge and therefore sets his hand and seal below.
By ____________________ __
(P.E. Stamp)
Drue __________________________ __
-39-
10/10/2005
APPENDIXC
ENGINEER'S CERTIFICATION
OF
DESIGN & CONSTRUCTION ADEQUACY
The undersigned on behalf of himself and
___________________ , hereinafter collectively referred to as "Engineer",
hereby states and certifies to Idaho Power as follows:
1. That Engineer is a Licensed Professional Engineer in good standing in the State of Idaho.
2. That Engineer has reviewed the Firm Energy Sales Agreement, hereinafter "Agreement",
between Idaho Power as Buyer, and as Seller, dated ____ -'
3. That the cogeneration or small power production project, which is the subject of the
Agreement and this Statement, is identified as IPCo Facility No _______ and is hereinafter
referred to as the "Project".
4. That the Project, which is commonly known as the ___________ _
Project, IS located in Section ___ , Township ___ , Range ___ , Boise Meridian,
County, Idaho.
5. That Engineer recognizes that the Agreement provides for the Project to furnish electrical
energy to Idaho Power for a ______ C-) year period.
6. That Engineer has substantial experience in the design, construction and operation of
electric power plants of the same type as this Project.
7. That Engineer has no economic relationship to the Design Engineer of this Project and
has made the analysis of the plans and specifications independently.
8. That Engineer has reviewed the engineering design and construction of the Project,
including the civil work, electrical work, generating equipment, prime mover conveyance system, Seller
furnished Interconnection Facilities and other Project facilities and equipment.
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10110/2005
9. That the Project has been constructed in accordance with said plans and specifications, all
applicable codes and consistent with Prudent Electrical Practices as that term is described in the
Agreement.
10. That the de~ign and construction of the Project is such that with reasonable arid prudent
operation and maintenance practices by Seller, the Project is capable of performing in accordance with the
terms of the Agreement and with Prudent Electrical Practices for a ____ ( ___ ) year period.
11. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the
Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and
opinions contained in this Statement.
12. That Engineer certifies that the above statements are complete, true and accurate to the
best of his knowledge and therefore sets his hand and seal below.
By ________________________ _
(P.E. Stamp)
Date ____________ _
-41-
lOIlO/200S
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 2
->
An IDACORP company
LuJ8 JUL 23 A: i 8: 08
iUi~:·il.j
June 4, 2008 U"TtLlT iE,,) (: vf;-:~i ~.~: iS~j ~L::
Exergy Development Group ofIdaho, LLC
Attn: James T. Carkulis
802 W. Bannock, Suite 1200
Boise, ill 83702
Via Certified Mail, Return Receipt Requested
Re: Operation Dates
Dear James:
Randy C. Allphin
Senior Planning Administrator
Tel: [phone]
[e-mail]
As you have, requested, the Scheduled Operation Date for the projects listed below will ,be
established as September I, 2010. If the projects do not achieve this revised Scheduled Operation Date as
specified in each of the Firm Energy Sales Agreements, Idaho Power may tg . tic the Agreement( s) and
seek legal and/or equitable recourse. ~
\ 1 Burley Butte
2 Oregon Trails
3 Pilgrim Stage Station
4 _ Thousand Springs
5 Tuana Gulch
. PUIUu£
7
8
9
10
Golden Valley
Lava Beds
Milner Dam
Notch Butte
Salmon Falls
By your signature below you acknowledge that the Scheduled Operation Date as set forth in
Appendix B of each Firm .Energy Sales Agreement for the above mentioned projects is hereby amended
and changed to September 1, 2010. All other terms, conditions, and provisions of those Firm Energy
Sales Agreements remain in full force and effect.
Idaho Power is providing three copies of this documentation. Please sign each copy and return all
three copies to me no later than Friday, June 20, 2008, Idaho Power reserves the right to modify this
document if the signed documents are not received back by this date.
Page I of 2
POBox 70 Boise, Idaho 83707 122! W Idaho st. Boise, Idaho 83702
US Mail:
Idaho Power Company
Attn: Randy Allphin
POBox 70
Boise, ID 83707
Overnight Mailing Address:
Idaho Power Company
Attn: Randy Allphin
1221 W Idaho
Boise, ill 83702
Upon receipt of the three signed copies I will arrange for and present this docmnentation to Idaho
Power Comp!llly management for their signatures.
After Idaho Power Company signs these docmnents, I will retum one complete signed original to
yciu for your records, prepare and file one original with the Idaho Public Utilities Commission (IPUC)
requesting their acceptance of this documentation and keep the third original for our records.
UNDERSTOOD, AGREED AND ACCEPTED:
Signature
Name.
Title
Date
cc: Bart Kline (!Peo)
Donovan Walker (!peo l
Karl Bokenkamp (!Peo)
Mark Stokes (!peo)
Idaho Power Company
:-vY\J8Lt
\
t-1. t-1 A e.t:.... S-ro~~s.
t./H\~<E.e., "Fbv-J~ S01'f>L-'-? ·n..~JJIIJ~
'/1 {z-oe,~
Sincerely,
Randy C. Allphin
Page 2 of2
POBox 70 Boise, Idaho 83707 1221 W Idaho St. Boise, Idaho 83702
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12~23
IDAHO POWER COMPANY
ATTACHMENT 3
An IOACORP Compan~
July 26, 2011
Randy C. Allphin
Senior Energy Contracts Coordinator
Lava Beds Wind Park, LLC
Attn: James T. Carkulis
802 W. Bannock, Suite 1200
Boise, Idaho 83702
Via Certified Mail, Return Receipt Requested
E-mail Copy: James Carkulis
Peter Richardson
[e-mail]
[e-mail]
Re: Lava Beds Wind Park LLC -Project number: 41455200
Firm Energy Sales Agreement
Mr. Carkulis,
The Firm Energy Sales Agreement ("FESA") between Idaho Power Company and Lava Beds Wind
Park LLC dated October 14th, 2005 specifies in Appendix B, item B3 that the Scheduled Operation Date for
this project shall be May 1, 2007. A subsequent lettc!r agreement dated June 4, 2008 revised the Scheduled
Operation Date to be September 1, 2010.
Paragraph 5.3 of this same FE SA states; "Seller's failure to achieve the Operation Date within ten
(10) months of the Scheduled Operation Date will be an event of Default". Ten months from the Scheduled
Operation Date calculates to be July 1,2011 (10 months past September 1, 2010).
This letter serves as Idaho Power's Notice of Default as of the date of this letter. If this default is not
cured as specified within the FESA Idaho Power will exercise its rights as allowed within the agreement one
of which may be termination of this FE SA.
Idaho Power has received the letter from Mr. Richardson dated June 30, 2011 in which Mr.
Richardson acknowledges the default commercial on line date to be July IS" 2011". In this same letter Mr.
Richardson introduces a short discussion that this default is being cured by the project making commercially
reasonable efforts and goes on to state that the projects will start construction in approximately forty-five
(45) days from June 30, 2011, and be online by year end 2011.
1
However, the letter does not identify any specific activity, actual commitment and associated
evidence that would reasonably demonstrate to Idaho Power that the default can be cured within a
commercially reasonable period of time, but not within the sixty (60) day cure period, i.e., by the end of the
year, and that the project is diligently pursuing such cure.
Article 22 of the FESA states that following notice of an event of default that Idaho Power may, at its
option, tenninate the FE SA and/or pursue its legal or equitable remedies if the proj.ect fails to cure such
default within sixty (60) days after service of such notice, or if the project reasonably demonstrates to Idaho
Power that the default can be cured within a commercially reasonable time, but not within such sixty (60)
day period, and then fails to diligently pursue such cure.
Idaho Power appreciates the project's commitment that it will start construction and cure its default
of the FESA by year end, 20 Ll. Idaho Power will consider this year-end commitment to be the outer limit
of a commercially reasonable time period with which to cure the default if it is not on-line within sixty (60)
days of this Notice of Default. If the default is not cured within said sixty (60) days, then Idaho Power may
exercise its rights to terminate and/or pursue its legal or equitable remedies unless the project demonstrates
that it is diligently pursuing cure of the default by the commercially reasonable time period of year end.
201l. If the project is not online by year end 2011, the parties agree that the commercially reasonable
period to cure this default has expired and Idaho Power will proceed with the remedies as allowed within
this Firm Energy Sales Agreement one of which is termination of this Firm Energy Sales Agreement.
If there are any other questions that you have, please feel free to contact me.
Sincerely,
Randy C Allphin
Idaho Power Company
Cc: Donovan WaLker (IPCo)
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 4
SMALL GENERATOR INTERCONNECTION REQUEST
(Application Form)
Transmission Provider: IDAHO POWER CO'MP ANY
Designated Contact Person: Rowena Bishop
Address:
Telephone Number:
1221 w. Idaho Street, Boise ID 83702
208-388-2658
Fax:
E-Mail Address:
208-388-664 7
[e-mail]
An Interconnection Request is considered complete when it provides all applicab1e and correct
information required below.
Preamble and Instructions
An Interconnection Customers who request interconnection must submit this Interconnection Request by
hand delivery, mail, e-mail, or fax to the Transmission Provider.
Processing Fee or Deposit:
lfthe Interconnection Request is submitted under the Fast Track Process, the non-refundable processing
fee is $500.
If the Interconnection Request is submitted under the Study Process, whether a new submission or an
Interconnection Request that did not pass the Fast Track Process, the Interconnection Customer shall
submit to the Transmission Provider a deposit not to exceed $1,000 towards the cost ofthe feasibility
study.
Interconnection Customer Information
Legal Name of the Interconnection Customer (OT, if an individual, individual's name)
Name: Lava Beds Wind Park. LLC
Contact Person: James T. Carkulis
Mailing Address: 1424 Dodge Ave.
City: Helena State: MT Zip: 59601
Facility Location (if different from above): Section
Bingham County, Idaho
2, 3, Township T2S, Range R32E,
Telephone (Day): 406.459.3013 ____ Telephone (Evening): 406.459.3013 ___ _
Fax: [phone] _____ , ___ E-Mail Address: [e-mail] _______ _
1
Alternative Contact lnformation (if different from Ole Interconnection Customer)
Contact Name: ---------------------------
Title: _________________________________ _
Address: _______________________________________________________________ _
Telephone (Day): _________ Telephone (Evening): ________________ _
Fax: _________________________ E-Mai I Address: ________________ _
Application js tor: _X __ New Small Generating Facility
___ Capacity addition to Existing Small Generating Facility
If capacity addition to existing facility, please desclibe: ________ --"-______ _
Will the Small Generating Facility be used for any of the following?
Net Metering? Yes _No _X_
To Supply Power to the Interconnection Customer? Yes _X_No_
To Supply Power to Others? Yes _X_ No __
For installations at locations with existing electric service to which the proposed Small Generating
Facility will interconnect, provide:
(Local Electric Service Provider*) (Existing Account Number*)
[*To be provided by the Interconnection Customer if the local electric service provider is different from
the Transmission Provider]
ContactName: ______________________________________________________________ __
Title: __________________________________ _
Address: __________________________ , ____________________________ __
Telephone (Day): _________________ Telephone (Evening): _____________ _
Fax: ___________________________ E-Mail Address: __________ _
Requested Point ofInterconnection: As per facility address
Interconnection Customer's Requested In-Service Date: May 2007
2
Small Generating Facility Information
Data apply on ly to the Small Generating Facility, not the Interconnection Facilities.
Energy Source: _ Solar _ Wind _x_ Hydro _ Hydro Type (e.g. Run-of-River): _____ _
Diesel _ Natural Gas _ Fuel Oil _ Other (state type) __________ _
Prime Mover: _Fuel Cell __ Recip Engine
_Microturbine
_GasTurb
_PV
Type of Generator: __ Synchronous X Induction Inverter
_ Steam Turb
-.lLOther
Generator Nameplate Rating: 1500 __ kW (Typical)
delivered
Generator Nameplate kV AR: 493
Interconnection Customer or Customer-Site Load: <2 ______ kW (if none, so state)
Typical Reactive Load (if known): ______ _
Maximum Physical Export Capability Requested: 19920 ____ kW
List components of the Small Generating Facility equipment package that are currently certified:
Equipment Type Certitying Entity
I. GE 1.5 MW turbine
2. ABB pad mount transformer 3. _________________ _
4. ________ _
5. ________ _
Is the prime mover compatible with the celtified protective relay package? x Yes No
Generator (or solar collector)
Manufacturer, Model Name & Number: GE 1500 kW sJe model wind turbine generator
Version Number: ___________ _
Nameplate Output Power Rating in kW: (Summer) 4,792,529_ (Winter) 3,990,161 __
Nameplate Output Power Rating in kV A: (Summer) -493 x 12 (Winter) -493 x 12
Individual Generator Power Factor
Rated Power Factor: Leading: 0.90 _____ -'Lagging: 0.95 ____ _
Total Number of Generators in wind farm to be interconnected pursuant to this
Interconnection Request: 12 Elevation: hub hgt. 245' _Single phase _x_Three phase
Inverter Manufacturer, Model Name & Number (if used): __________________ _
List of adjustable set points for the protective equipment or software: ______________ _
Note: A completed Power Systems Load Flow data sheet must be supplied with the Interconnection
Request.
3
Small Generating Facility Characteristic Data (for inverter-based machines)
Max design fault contribution current: Instantaneous orRMS?
Harmonics Characteristics: ________________________ _
Start-up requirements: __________________________ _
Small Generating Facility ,Characteristic Data (for rotating machines)
RPM Frequency: _____ _
(*) Neutral Grounding Resistor (If Applicable): ____ _
Synchronous Generators:
Direct Axis Synchronous Reactance, Xd: __ ~P.u.
Direct Axis Transient Reactance, X'd: P.U.
Direct Axis Subtransient Reactance, X" d: _____ ---:P.U.
Negative Sequence Reactance, X2: ____ P.U.
Zero Sequence Reactance, Xo: P.U.
KVABase: -------------Field Volts: ------Field Amperes: _____ _
Induction Generators:
Motoring Power (k W): -=-__ -:--__
1/t or K (Heating Time Constant): _____ _
Rotor Resistance, Rr: _____ _
Stator Resistance, Rs: _____ _
Stator Reactance, Xs: _____ _
Rotor Reactance, Xr:
Magnetizing Reactance, Xm: _____ _
Short Circuit Reactance, Xd": _____ _
Exciting Current: _____ _
Temperature Rise: ------Frame Size: ------Design Letter: _____ _
Reactive Power Required In Vars (No Load): _____ _
Reactive Power Required In Vars (Full Load): _____ _
Total Rotating Inertia, H: Per Unit on kVA Base
Note: :Please contact the Transmission Provider prior to submitting the Interconnection Request to
determine if the speci.fied information above is required.
4
Excitation and Governor System Data for Synchronous Generators Only
Provide appropriate IEEE model block diagram of excitation system, governor system and power system
stabilizer (PSS) in accordance with the regional reliability council criteria. A PSS may be determined to
be required by applicable studies. A copy of the manufacturer's block diagram may not be substituted.
Interconnection Facilities Information
Will a transformer be used between the generator and the po int of common coupling? _x_Yes _No
Will the transformer be provided by the Interconnection Customer? _x_Yes __ No
Transformer Data Of AIm Licab Ie, far Interconnection Customer-Owned Transfonner):
Is the transfonner: __ single phase _x_three phase? Size: l7S0 ___ kV A
Transformer Impedance: % on kV A Base
If Three Phase:
Transfonner Primary: __ Volts __ Delta __ Wye __ Wye Grounded
Transformer Secondary: __ Volts __ Delta __ Wye __ Wye Grounded
Transformer Tertiary: __ Volts __ Delta __ Wye __ Wye Grounded
Transformer Fuse Data (If Applicable, for Interconnection Customer-Owned Fuse):
(Attach copy offuse manufacturer's Minimum Melt and Total Clearing Time-Current Curves)
Manufacturer: TBPI ______ Type: _______ Size: ____ Speed: _____ _
Interconnecting Circuit Breaker (if applicable):
Manufacturer: TBP-:--___ -::-__ -----:c_-=--:------:--:-Type: ____ _
Load Rating (Amps): Interrupting Rating (Amps): Trip Speed (Cycles): ___ _
Interconnection Protective Relays (If Applicable):
If Microprocessor-Controlled:
List of Functions and Adjustable Setpoints for the protective equipment or software:
Setpoint Function Minimum Maximum
1.
2.
3.
4.
5.
I TBP == To be provided
5
6.
If Discrete Components:
(Enclose Copy of any Proposed Time-Overcurrent Coordination Curves)
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Manufacturer: Type: Style/Catalog No.: Proposed Setting:
Current Transformer Data CIf Applicable):
(Enclose Copy of Manufacturer's Excitation and Ratio Correction Curves)
Manufacturer: ----------------------------------~~----~ Type: ______________ Accuracy Class: _ Proposed Ratio Connection: __
Manufacturer: _________________________________________ _
Type: ______________ Accuracy Class: _ Proposed Ratio Connection: __
Potential Transformer Data (If Applicable):
Manufacturer: __________________________________________ _
Type: ______________ Accuracy Class: _ Proposed Ratio Connection: __ .
Manufacturer: __________________________________________ _
Type: _____________ Accuracy Class: _ Proposed Ratio Connection: __
6
General Information
Enclose copy of site electrical one-line diagram showing the configuration of all Small Generating
Facility equipment, current and potential circuits, and protection and control schemes. This one-line
diagram must be signed and stamped by a licensed Professional Engineer ifthe Small Generating Facility
is larger than 50 kW. Is One-Line Diagram Enclosed? _x_Yes __ No
Enclose copy of any site documentation that indicates the precise physical location of the proposed Small
Generating Facility (e.g., USGS topographic map or other diagram or documentation).
Proposed location of protective interface equipment on property (include address if different from the
Interconnection Customer's address) to be determined as to !PCo connection point. __ _
Enclose copy of any site documentation that describes and details the operation of the protection and
control schemes. Is Available Documentation Enclosed? _Yes _x_No TBP
Enclose copies of schematic drawings for all protection and control circuits, relay current circuits, relay
potential circuits, and alarm/monitoring circuits (if applicable).
Are Schematic Drawings Enclosed? _Yes _x_No TBP
Applicant Signature
1 hereby certifY that, to the best of my know ledge, all the information provided in this Interconnection
Request is true and correct.
For Interconnection Customer:
7
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 5
James CarkuJ is
IDAHO POWER COMPANY
1221 W IDAHO STREET
BOISE. 10 83702
1424 Dodge Avenue
Helena MT 59601
Ph 406-459-3013
Dear Mr. Carkulis :
December 22, 2005
Re: Notice of Incomplete Interconnection Application
Date Application Project Name Proposed Locatiol1
Received
12/19/05 Golden Valley Wind Park Cassia County, ill
12/19/05 Milner Dam Wind Park Cassia County, ID
12/19/05 Lava Beds Wind Park Bingham County, ill
12/19105 Notch Butte Wind Park Lincoln County, ill
1211905 Salmon Falls Wind Park Twin Falls County, ID
Amollnl(MW)
TBP
TBP
TBP
TBP
TBP
Thank you for your Generator Interconnection Applications noted above (copies attached). I
have forwarded these applications to our Distribution Planning Leader, Dave Angell, who is
evaluating your request.
In order for an Interconnection Request to be considered valid, all Generation Interconnection
Applications must include celtain items before we can proceed. Please clarify or provide the
following for each of the above applications:
1. The required deposit for each application over 2 MW is a total of $1000. Please provide
the additional amount for each application.
2. Page 2, Will you be supplying power to others?
3. Page 3, Verify this is a wind facility, not hydro.
4. Page 3, Maximum Physical Export Capability & Nameplate output does not match
number of units.
5. Page 3, Please provide a completed Power Systems Load Flow data sheet.
6. Page 4, Please provide all data under the INDUCTION section.
7. Page 5, Please provide Transformer Impedance and Three Phase primary, Secondary &
Tertiary information.
8. Page 6, Please provide Current Transformer Data information.
9. Page 7, ALL items need to be provided on this page.
These items must be provided to us on or before the Scoping Meeting in order for you to retain
your position in the Application queue. Dave will be in touch with you to coordinate the
Scoping meeting.
For your reference, enclosed is a copy of Idaho Power Company's Requirements for Generation
Interconnection. This and more information about the Interconnection process can be found on
the [daho Power website at:
http://www.idahopowel..comlabo utus/b us i ness/ generatio nlnterconnectl
Please refer to the website periodically for a list of current projects. At this time, Idaho Power
Company is unable to establish a specific timeline for work on your project, but it has been
placed on the project list and will be worked on appropriately.
For your review, I am attaching a copy of your applications, along with the standard
Interconnection Feasibility Study Agreement that needs to be executed during or soon following
our Scoping Meeting. Please feel free to contact Dave at 208-388-2701, or me at 208-388-2658
with your questions anytime~
Attachments
Sincerely, Bw~?la¥
Rowena Bishop
Operations Analyst
Grid Operations & Planning
[phone]
.. [e-mail]
Interconnection Applications submitted 12/19/05
Idaho Power Company's Requirements for Generation Interconnection
Standard Interconnection Feasibility Study Agreement
Cc: Dave Angell/IPC
Feasibility Study Agreement
THIS AGREEMENT is made and entered into this __ day of 20_ by and
between ,a organized and
existing under the laws of the State of , ("Interconnection
Customer,") and Idaho Power Company a Corporation existing under the laws of the State of Idaho ("Transmission
Provider"). Interconnection Customer and Transmission Provider each may be referred to as a "Party," or
collectively as the "Parties."
RECITALS
WHEREAS, Interconnection Customer is proposing to develop a Small Generating Facility or generating capacity
addition to an existing Small Generating Facility consistent with the Interconnection Request completed by
Interconnection Customer on ; and
WHEREAS, Interconnection Customer desires to interconnect the Small Generating Facil ity with the Transmission
Provider's Transmission System; and
WHEREAS, Interconnection Customer has requested the Transmission Provider to perform a feasibility study to
assess the feasibility of interconnecting the proposed Small Generating Facility with the Transmission Provider's
Transmission System, and of any Affected Systems;
NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein the Parties agreed
as follows:
1.0 When used in this Agreement, with initial capitalization, the terms specitied shall have the meanings
indicated or the meanings specified in the standard Small Generator Interconnection Procedures.
2.0 The Interconnection Customer elects and the Transmission Provider shall cause to be performed an
interconnection feasibility study consistent the standard Small Generator Interconnection Procedures in
accordance with the Open Access Transmission Tariff.
3.0 The scope of the feasibility study shall be subject to the assumptions set forth in Attachment A to this
Agreement.
4.0 The feasibility study shall be based on the technical information provided by the Interconnection Customer
in the Interconnection Request, as may be modified as the result of the scoping meeting. The Transmission
Provider reserves the right to request additional technical information from the Interconnection Customer
as may reasonably become necessary consistent with Good Utility Practice during the course of the
feasibility study and as designated in accordance with the standard Small Generator Interconnection
Procedures. If the Interconnection Customer modifies its Interconnection Request, the time to complete the
feasibility study may be extended by agreement of the Parties.
5.0 In performing the study, the Transmission Provider shalt rely, to the extent reasonably practicable, on
existing studies of recent vintage. The Interconnection Customer shall not be charged for such existing
studies; however, the Interconnection Customer shall be responsible for charges associated with any new
study or modifications to existing studies that are reasonably necessary to pelform the feasibility study.
6.0 The feasibility study report shall provide the following analyses for the purpose of identifying any potential
adverse system impacts that would result from the interconnection of the Small Generating Facility as
proposed:
6.1 Initial identification of any circuit breaker short circuit capability limits exceeded as a result of the
interconnection;
6.2 Initial identification of any thermal overload or voltage limit violations resulting from the
interconnection;
6.3 Initial review of grounding requirements and electric system protection; and
6.4 Description and non-bonding estimated cost of facilities required to interconnect the proposed
Small Generating Facility and to address the identified short circuit and power flow issues.
7.0 The feasibility study shall model the impact of the Small Generating Facility regardless of purpose in order
to avo id the further expense and interruption of operation for reexamination 0 f feasibi I ity and impacts if the
Interconnection Customer later changes the purpose for which the Small Generating Facility is being
installed.
8.0 The study shall include the feasibility of any interconnection at a proposed project site where there could be
multiple potential Points of Interconnection, as requested by the Interconnection Customer and at the
Interconnection Customer's cost.
9.0 A deposit of the lesser of 50 percent of good faith estimated feasibility study costs or earnest money of
$1,000 may be required from the Interconnection Customer.
10.0 Once the feasibility study is completed, a feasibility study report shall be prepared and transmitted to the
Interconnection Customer. Barring unusual circumstances, the feasibility study must be completed and the
feasibility study report transmitted within 30 Business Days of the Interconnection Customer's agreement to
conduct a feasibility study.
11 .0 Any study fees shall be based on the Transmission Provider's actual costs and will be invoiced to the
Interconnection Customer after the study is completed and delivered and will include a summary of
professional time.
12.0 The Interconnection Customer must pay any study costs that exceed the deposit without interest within 30
calendar days on receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced
fees, the Transmission Provider shall refund such excess within 30 calendar days of the invoice without
interest.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized
officers or agents on the day and year tirst above written.
Transmission Provider: Interconnection Customer:
Idaho Power Company -Delivery
Signed _____________ Signed, ___________ _
Name (Printed): Name (Printed):
Tille _____________ T itle, ___________ _
Date, _____________ _ Date~ ___________ _
Assumptions Used in Conducting the Feasibility Study
The feasibility study will be based upon the information set forth in the Interconnection Request and agreed upon in
the scoping meeting held on ________ _
I) Designation of Point of Interconnection and configuration to be studied.
2) Designation of alternative Points of Interconnection and contlguration.
I) and 2) are to be completed by the Interconnection Customer. Other assumptions (listed below) are to be provided
by the Interconnection Customer and the Transmission Provider.
Clark, Danielle
'om:
.mt:
To:
Cc:
Subject:
James,
Bishop, Rowena
Thursday, December 22, 20054:01 PM
'[e-mail]'
Angell, Dave
5 wind park applications
This is being Fedex'd today.
Happy holidays & we'll talk soon,
Rowena
DOC.PDF
1
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 6
July 7, 2006
via email and Certified Mail
James Carkulis
Exergy Development Group, LLC
P.O Box 5212
Helena, MT 59601
Dear Mr. Carkulis
RE:
Pro 'eel name
Lava Beds Wind Park
" An IOAtORP COn1J);l(W
This letter is to inform you of the progress of your generation interconnection request referenced
above. Since our initial Scoping Meeting, we have received your designated Point of
Interconnection (POI) for this project.
Attached please find a draft Feasibility Study Agreement for your Generation Interconnection
request. The Feasibility Study is a preliminary evaluation of the feasibility of the proposed
interconnection to Idaho Power Company's electrical system. The estimated cost for the
Feasibility Study to be performed is covered by your application fee.
If this Agreement is acceptable to you, please sign and return a copy to us. We must receive
your response no later than 30 Calendar after your receipt of this letter, or we will consider your
request to have been withdrawn and terminated.
We will continue to keep you apprised as we go through the study process to insure continued
agreement and understanding. Please contact me as soon as possible if you have any questions.
Sincerely,
D1:::!::~
Planning Leader
Attachments
r,{).llo~ 70 (SH07)
1221 W.ld~hQSt
8I;)i$0., 11) 83707.
Feasibility Study Agreement
Feasibility Study Agreement
Lava Beds Wind Park Project
TIDS AGREEMENT is made and entered into this __ day of. ______ 2006 by and
between _________________________ , a
_____________ organized and existing under the laws of the State of
________________ , ("Interconnection Customer, ") and Idaho Power
Company, a Corporation existing under the laws of the State of Idaho ("Transmission Provider").
Interconnection Customer and Transmission Provider each may be referred to as a "Party," or
collectively as the "Parties."
RECITALS
WHEREAS, Interconnection Customer is proposing to develop a Small Generating Facility or
generating capacity addition to an existing Small Generating Facility consistent with the
Interconnection Request completed by Intercormection Customer on December 19, 2005; and
WHEREAS, Interconnection Customer desires to interconnect the Small Generating Facility
with the Transmission Provider's Transmission System; and
WHEREAS, Interconnection Customer has requested the Transmission Provider to perform a
feasibility study to assess the feasibility of interconnecting the proposed Small Generating
Facility with the Transmission Provider's Transmission System, and of any Affected Systems;
NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein
the Parties agreed as follows:
1.0 When used in this Agreement, with initial capitalization, the terms specified shall have
the meanings indicated or the meru:llngs specified in the standard Small Generator
Interconnection Procedures.
2.0 The Interconnection Customer elects and the Transmission Provider shall cause to be
performed an interconnection feasibility study consistent the standard Small Generator
Interconnection Procedures in accordance with the Open Access Transmission Tariff.
3.0 The scope of the feasibility study shall be subject to the assumptions set forth in
Attachment A to this Agreement.
4.0 The feasibility study shall be based on the technical information provided by the
futerconnection Customer in the Interconnection Request, as may be modified as the
result of the scoping meeting. The Transmission Provider reserves the right to request
additional technical information from the Interconnection Customer as may reasonably
become necessary consistent with Good Utility Practice during the course of the
feasibility study and as designated in accordance with the standard Small Generator
Interconnection Procedures. If the Interconnection Customer modifies its Interconnection
Request, the time to complete the feasibility stu.dy may be extended by agreement of the
Parties.
Page 1 of 4
Feasibility Study Agreement
Lava Beds Wind Park Project
5.0 In performing the study, the Transmission Provider shall rely, to the extent reasonably
practicable, on existing studies of recent vintage. The Interconnection Customer shall not
be charged for such existing studies; however, the Interconnection Customer shall be
responsible for charges associated with any new study or modifications to existing studies
that are reasonably necessary to perform the feasibility study.
6.0 The feasibility study report shall provide the following analyses for the purpose of
identifying any potential adverse system impact-s that would result from the
interconnection of the Small Generating Facility as proposed:
6.1 Initial identification of any circuit breaker short circuit capability limits exceeded
as a result of the interconnection;
6.2 mitial identification of any thermal overload or voltage limit violations reSUlting
from the interconnection;
6.3 Initial review of grounding requirements and electric system protection; and
6.4 Description and non-bonding estimated cost of facilities required to interconnect
the proposed Small Generating Facility and to address the identified short circuit
and power flow issues.
7.0 The feasibility study shall model the impact of the Small Generating Facility regardless
of purpose in order to avoid the further expense and interruption of operation for
reexamination of feasibility and impacts if the Interconnection Customer later changes
the purpose for which the Small Generating Facility is being installed.
8.0 The study shall include the feasibility of any interconnection at a proposed project site
where there could be multiple potential Points of Interconnection, as requested by the
Interconnection Customer and at the Interconnection Customer's cost.
9.0 A deposit of the lesser of 50 percent of good faith estimated feasibility study costs or
earnest money of $1,000 may be required from the Interconnection Customer.
10.0 Once the feasibility study is completed, a feasibility study report shall be prepared and
transmitted to the Interconnection Customer. Barring unusual circumstances, the
feasibility study must be completed and the feasibility study report transmitted within 30
Business Days of the Interconnection Customer's agreement to conduct a feasibility
study.
11.0 Any study fees shall be based on the Transmission Provider's actual costs and will be
invoiced to the Interconnection Customer after the study is completed and delivered and
will include a summary of professional time.
12.0 The Interconnection Customer must pay any study costs that exceed the deposit without
Page 2 of4
Feasibility Study Agreement
Lava Beds Wind Park Project
interest within 30 calendar days on receipt of the invoice or resolution of any dispute. If
the deposit exceeds the invoiced fees, the Transmission Provider shall refund such excess
within 30 calendar days of the invoice without interest.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
Transmission Provider: Interconnection Customer:
Idaho Power Company -Delivery
Signed _____________ Signed ___________ _
Name (Printed): Name (Printed):
Title, ______________ Title ____________ _
Page 3 of 4
Feasibility Study Agreement
Lava Beds Wind Park Project
Attachment A
Assumptions Used in Conducting the Feasibility Study
The feasibility study will be based upon the information set forth in the Interconnection Request
and agreed upon in the scoping meeting heJd on March 23, 2006:
1) Designation of Point of Interconnection and configuration to be studied.
The proposed location of the project was defined in an email dated April 24, 2006. The
turbine string will be located in two of the following sections 14,22,23,26,27,34 and
35 of TIS, R32E and sections 2 and 3 of T2S, R32E of Bingham County, Idaho. The
proposed Point of Interconnection, selected by Idaho Power for purposes of defining the
scope of this study, is the corner of 800 N. and 1900 W., which is the location of Idaho
Power's existing Taber substation.
2) Designation of alternative Points of Interconnection and configuration.
In the scoping meeting IPC agreed that it would provide:
1. How much generation capacity can be installed at each site without re-conductoring
or significant upgrades
2. What upgrades are needed to meet our requested capacity
3. Recommended interconnection location for each site (and voltage level
1) and 2) are to be completed by the Interconnection Customer. Other assumptions (listed
below) are to be provided by the Interconnection Customer and the Transmission Provider.
Page 4 of 4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 7
James Carkulis
Exergy Development Group, LLC
P.O. Box 5212
Helena MT 59601
January 10, 2007
RE: Feasibility Study Results -Lava Beds Wind Paxk (Project #156)
Dear Mr. Carkulis:
®
An IDACORP Company
Attached 1S the Fin'al Feasibility Study Report for the abQ've-referencedProject. The Feasibility
analysis indicates that modiUcationiaddition,of some facilities will be required to integrate the
network resource capacity addition of your ProjeCt into the Idaho Power systeOi.
We are available to discuss the Final Feasibility Study Report, and finalize the draft S'ystem
rmp~ct Agreement (SISA). Please contact me or Bryan Hobson at 208-736-3.235 if you wish to
schedule a meeting.
We requite fUliher study to evaluate the system integration requirements for this Project, along
with ~he facilities' physical constraints. Attached please find a Draft System Impact StUdy
Agreernent that describes the studies required to meet this request; tberesponsibilitiesanc!
obligations of both parties, and the work schedules required. Attachment A needs your attention
before returning the -signed agreement.
In order to proceed v;.;ith this application, we mpst receive ilotice and the required deposit fbr the
System Impact Study fi-om yOLl within 30 Calel1dar Days of receipt of this letter, otherwise your
application will be deemed withdrawn. Please contact me if you have any questions.
Cc: 0 Angell/IPe
B Hobson/iPe
Attachments
Final Feasibility Study Repoli
Sincerely,
!~~of¥J
Operations Analyst
Ph 208-388-2658
[e-mail]
Draft -Interconnection System Impact Study Agreement
P.O. Box 70 (B3707)
1221 W. Idaho St.
BOise, 1083702
GENERATOR INTERCONNECTION
FEASIBILITY STUDY
for integration of the proposed
LA V A BEDS WIND PARK PROJECT
III
BINGHAM COUNTY, IDAHO
to the
IDAHO POWER COMPANY ELECTRICAL SYSTEM
for
EXERGY DEVELOPMENT GROUP, LLC
the
INTERCONNECTION CUSTOMER
PRELIl\UNARY _FINAL REPORT
January 3; 2007
1.0 Introduction
Exergy Development Group, LLC has contracted with Idaho Power Company (IPC) to perform a
Generator Interconnection Feasibility Study for the integration ofthe proposed 19.92 MW Lava
Beds Wind Park Project (project #156). The proposed location of the project is in Idaho Power's
eastern Idaho service territory in sections 14,22,23,26,27,34 and 35 of TIS, R32E and
sections 2 and 3 ofT2S, R32E of Bingham County, Idaho. The proposed Point of
Interconnection, selected by Idaho Power for purposes of defining the scope of this study, is the
corner of 800 N. and 1900 W., which is the location ofIdaho Power's existing Taber substation.
This report documents the basis for and the results of this Feasibility Study for the Lava Beds
Wind Park. It describes the proposed project, the impact of associated projects, and results of all
work in the areas of concern.
2.0 Summary
The proposed project is a 19.92 MW wind farm consisting of twelve or thirteen 1.5 MW GE
wind turbines. This wind farm will interconnect with the IPC system at about 800 N. and 1900
W. in Bingham County, Idaho.
The transmission system serving this area is Idaho Power's 46 kV system north of Pingree. With
the consideration of other proposed generation projects in the queue ahead of this project there is
adequate capacity available on either of the two existing transmission lines in the immediate area
to serve this project. However, this study has identified limitations in the Borah West
transmission system to the west ofthis area. This study demonstrates that there is no available
transmission capacity when considering other proposed generation projects ahead of this one in
the queue. A System Impact Study will be required to determine the transmission upgrades
needed to serve this project.
The substation serving this area is the Haven (HA VN) substation. The Load Tap Changer (LTC)
at this substation will have to be reprogrammed to serve the proposed project.
One of the distribution feeders serving this area is HA VN-042. Initial studies indicate that this
feeder can sep;<e-accept up to 19.0 MW of generation as long as the wind park generates at a 0.95
lagging power factor. This is required to maintain adequate voltage on the -£ eder during I.ight
load conditions.the full 19.92 MW requested from-May-+st to October l S\,-a&-leHg-as---t:he wind
parle is generating at unity pO'vVer factor. From October 1 st to May 1 st the \vind parle must
generate at a 0.95 lagging power factor and will be limited to 19.0 M\V. A capacitor bank will
also be required at the substation. If these special operating instructions, which are described
further in Section 7, can be met then HA VN-042 has thermal capacity at the proposed point of
interconnection to serve this project. If not, the required upgrades are listed in Section 8.
A generation interconnection package will be required at the point of interconnection.
Grounding requirements and other acceptability requirements are found in Appendix A.
2
The estimated cost of all known required upgrades is $Z-l-70,000.
3.0 Scope of Interconnection Feasibility Study
The Interconnection Feasibility Study was done and prepared in accordance with Idaho Power
Company Standard Generator Interconnection Procedures, to provide a preliminary evaluation of
the feasibility of the interconnection of the proposed generating project to the Idaho Power
system. All other proposed Generation projects prior to this project in the Generator
Interconnect queue were considered in this study. A current list of these projects can be found
on the Idaho Power web site as follows:
Small Generator «20 MW):
http://www.idahpower.com/abol! tus/businessl generati onlnterconnectl generationlnterconnect.cfm
Large Generator (2:20 MW):
http://www.oatioasis.com/ipco/index.html.
4.0 Description of Proposed Generating Project
The Lava Beds Wind Park proposes to connect to the Idaho Power distribution system for an
injection of 19.92 MW (maximum project output) using twelve or thirteen GE 1.5 MW wind
turbines.
5.0 Description of Existing Transmission Facilities
The transmission system serving this area is Idaho Power's 46 kV system which sources out of
Pingree Substation. Power is delivered to Pingree Substation at 138 kV, where it is transformed
to 46 kV. From Pingree there are two 46 kV lines north to the area of the project. Line #154
from Pingree substation to Taber substation is part of the Blackfoot -Pingree 46 kV system.
The first 8 miles from Pingree to Rockford are 2/0 ACSR conductor, and the remaining 11 miles
to Taber Substation are 4/0 ACSR conductor. At 46 kV, 2/0 ACSR is rated for 22.8 MV A and
4/0 ACSR is rated for 29.7 MVA.
The second line serving the area of the wind park is line #446 from Pingree Substation to Haven
Substation. This line is built to 138 kV standards but is currently energized at 46 kV. The
conductor on this line is 397 ACSR, which has a continuous thermal rating of 47.8 MVA at 46
kV. This line, as well as Haven Substation, is currently scheduled to be converted to 138 kV by
May 1,2007.
With the consideration of other proposed generation projects in the queue ahead ofthis project
there is adequate capacity available on either of these existing transmission lines to serve this
project. However, the study has identified limitations in the Borah West transmission system to
the west of this area. This study demonstrates that there is no available transmission capacity
when considering other proposed generation projects ahead of this one in the queue. Because of
3
these limitations, a Transmission System Impact Study will be required to determine the
upgrades required to integrate this project into the Idaho Power system.
6.0 Description of Existing Substation Facilities
There are two substations relatively close to this project. Idaho Power's Taber (TABR)
Substation is located at about 800 N. and 1900 W. on Taber Road in Bingham County. The
existing substation transformer is a 46: 12.5 kV transformer rated for 6.25 MV A. With the
consideration of the size of the proposed project there is not adequate capacity in this substation
to serve this project. The second substation in this area is Idaho Power's Haven (HA VN)
Substation, which is located at about 540 N. and 1500 W. on Taber Road in Bingham County.
The existing substation transformer has a dual high side rating of both 46 and 138 kV and a low
side rating of 34.5 kV. The transformer capacity is rated at 20.0 MV A. With the consideration
of the size of the proposed project there is adequate capacity in this substation to serve up to 19.0
MW as described beJow.tffis.-tJ~ Either substation could be upgraded to serve the full 19.92
MW.
The feeder breaker on the feeder serving this project, Haven 42 (HA VN-042), is a McGraw
Edison type "RVE" breaker designed for 400 amps continuous load current and has a maximum
fault current interrupting rating of 6,000 amps. Initial studies indicate that there is adequate load
and short circuit interrupting capability on this breaker to add the wind park.
7.0 Description of Existing Distribution Facilities
There are two distribution feeders serving the area of the proposed wind park. Refer to the map
in Appendix B. The first feeder is TABR-012. This is a grounded wye feeder operating at 12.5
kV. With the consideration of the size of the proposed project there is not adequate capacity on
this feeder to serve this project. This option was not pursued further.
The second feeder is HA VN-042. This is a grounded wye feeder operating at 34.5 kV. With the
consideration of the size of the proposed proj ectI -there is adequate thermal capacity on this
feeder, to the designated point of interconnection, to serve--accept up to 19.0 MW of generation
as long as the wind park generates at a 0.95 lagging p we)' factor (absorbing VARs). To
compensate the system ~ r these V ARs a capacitor bank will be required at the substation.
Operating under these restrictiol1s will keep voltages on the feeder within the required limits and
will not overload the existing substation transformer.
this project. Hovlever, to maintain the voltage 'tvithin the proper limits special operating
re-s-t:fietiOIlS '.viII Be-reqaired at 1:h~~flg4lle irrigation seaSOB (May 1 Sl to OctoBer
-l-st},-the--\¥ifi~-fk-..wifl:-e:[3erate at uni~ 'er factor and can generffi.e up to the reqL1ested-l~
t4\V lTIaJH:n.1:t!ffl..:p0WGr outp'l:tt~uring the non: irri-gation season (Oet:ef>er..+ ~ to May l str,----tbe
......md park must geaerate at a O.9S-baggiHg-poJyver facIDr (absorbing VARsj-and wiU be limited to
no more than 19.0 M'.V maximum power output. Operating under these restrictions 'vVill keep
4
:voltages 'AAthin the-re€tb~~red limits and \vi:l-l--fle.t-e-ve-fl.ead tile substattofr-t:ransfermer--4::lfi.-flg-±-i-gh{
load conditions.
Another option that would allow the full generation requested would be to install a 22 MV A
transfonner at TABR substation and build a dedicated 34.5 kV feeder to the wind park. To
maintain proper voltage on the 46 kV transmission system the generator would be requiregment
1Q..... -ef operat~ing at unity power factor during the pumping season and at a 0.95 lagging power
factor during the rest of the year.:.--wo-Wd--s-t=ill be necessaIY '00:1:_ Ithe wind park could generate up
to their requested maximum physical export capability of 19.92 MW year-round. Cost estimates
for this option are included in section 8.
8.0 Description and Cost Estimate of Required Facility Upgrades
In order to add this project, the Load Tap Changer at Haven Substation must be reprogrammed.
If the point of interconnection is at the location described in Section 1, which is the end of the
existing 336 Al conductor on HA VN-042, and if the wind park can operate as described in
Section 19, then initial studies indicate that no further feeder upgrades will be required.-.A
capacitor bank will need to be added at the substation.
Since the wind generation park will be located on the feeder along with other Idaho Power
customer loads, a generation interconnection package will be required at the point of
interconnection.
The following table details the generation integration directly assignable costs for the upgrades
needed to accommodate the proposed proj ect.
T bl 1 a e t" 0 E 1" t d C t Ii R . d D' t 'b 1" U . UE 1011 ne sIma e os s or eqmre IS n u IOn d pgra es
Description Cost
Reprogramming LTC at HA VN substation $1,000
Capacitor banlc at I-IA VN substation $100,000
G~nerator Interconnection Package $169,000
Total Estimated Cost $2-1-70,000
Option two would be to install a second substation transfonner at T ABR substation and build a
dedicated 34.5 kV feeder to the wind park. Option two would allow the full 19.92 MW
generation output during the non-pumping season. Estimated costs for option two are shown in
Table 2 below. Since the point of interconnection is only defined as next to the substation, the
feeder costs are not included below but will be determined for either option once the actual point
of interconnection has been determined.
Table 2. Option Two Estimated Costs for Required Distribution Upgrades
5
Description Cost
22 MV A transformer and associated work at T ABR substation $1,500,000
Total Estimated Cost $1,500,000
These cost estimates include direct equipment and installation labor costs, indirect labor costs
and overheads. (Tax Gross Up has not been included presuming construction of interconnection
facilities will not qualify under IRS rules as a taxable event. Allowance for funds used during
construction (AFUDC) has not been included in the cost estimates since it is assumed that IPC
will be provided up-front funding by the Project). These are cost estimates only and final
charges to the customer will be based on the actual construction costs incurred.
6
9.0 Description of Operating Requirements
In addition to these upgrades and the restrictions described in Section 7, there are several other
operating requirements that must be met. Voltage flicker at startup and during operation will be
limited to less than 5% as measured at the point of interconnection. Also, the project is required
to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard
519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in Electrical
Power Systems.
10.0 Conclusions
The requested interconnection of the Lava Beds Wind Park to Idaho Power's system was studied.
The results of this study confirm that the existing Idaho Power system can be upgraded to handle
the project. The known required upgrades for the existing system are listed. The constraints of
the transmission system, caused by projects ahead of this project in the generation queue,
determine that a Transmission System Impact Study will be required for this project.
7
APPENDIX A
A-l.O Method of Study
The Feasibility Study plan inserts the Project up to the maximum requested injection into the
selected Western Electric Coordinating Council (WECC) power flow case and then, using GE's
Positive Sequence Load Flow (PSLF) analysis tools or Power World Simulator, examines the
impacts of the new resource on Idaho Power's system (lines, transformers, etc.) within the study
area under various operating/outage scenarios. The WECC and Idaho Power reliability criteria
and Idaho Power operating procedures were used to determine the acceptability of the
configurations considered. The WECC case is a recent case modified to simulate stressed but
reasonable pre-contingency energy transfers utilizing the IPC system. For distribution feeder
analysis, Idaho Power utilizes Advantica's SynerGEE software.
A-2.0 Acceptability Criteria
The following acceptability criteria were used in the power flow analysis to determine under
which system configuration modifications may be required:
The continuous rating of equipment is assumed to be the normal thermal rating of the
equipment. This rating will be as determined by the manufacturer of the equipment or as
determined by Idaho Power. Less than or equal to 100% of continuous rating is
acceptable.
Idaho Power's Voltage Operating Guidelines were used to determine voltage
requirements on the system. This states, in part, that distribution voltages, under normal
operating conditions, are to be maintained within plus or minus 5% (0.05 per unit) of
nominal everywhere on the feeder. Therefore, voltages greater than or equal to 0.95 pu
voltage and less than or equal to 1.05 pu voltage are acceptable.
Voltage flicker during starting or stopping the generator is limited to 5% as measured at
the point of interconnection, per Idaho Power's T&D Advisory Information Manual.
Idaho Power's Reliability Criteria for System Planning was used to determine proper
transmission system operation.
All customer generation must meet IEEE 519 and ANSI C84.1 Standards.
All other applicable national and Idaho Power standards and prudent utility practices
were used to determine the acceptability of the configurations considered.
The stable operation of the system requires an adequate supply of volt-amperes reactive
(VARs) to maintain a stable voltage profile under both steady-state and dynamic system
conditions. An inadequate supply of V ARs will result in voltage decay or even collapse
under the worst conditions.
8
Equipmentlline/path ratings used will be those that are in use at the time of the study or that are
represented by IPC upgrade projects that are either currently under construction or whose
budgets have been approved for construction in the near future. All other potential future ratings
are outside the scope ofthis study. Future transmission changes may, however, affect current
facility ratings used in the study.
A-3.0 Grounding Guidance
Idaho Power Company (IPC) requires interconnected transformers to limit their ground fault
current to 20 amps at the point of interconnection.
A-4.0 Electrical System Protection Guidance
IPC requires electrical system protection per Requil'ements for Generation Interconnections
found on the Idaho Power Web site,
http://www.idahopower.comlaboutus/business/ generationInterconnect/.
A-S.O WECC Coordinated Off-Nominal Frequency Load Shedding and Restoration
Requirements
IPC requires frequency operational limits to adhere to WECC Under-frequency and Over­
frequency Limits per the WECC Coordinated Off-Nominal Frequency Load Shedding and
Restoration Requirements available upon request.
9
APPENDIXB
Lava Beds Wind Park
[~ Lava Beds Wind Park "* Substation
--HAVN-041
HAVN-042
.... -._.-TABR-012
Lava Beds Wind Park -Project #156
System Impact Study Agreement
THIS AGREEMENT is made and entered into this __ day of ______ 2006 by and
between , a ---------------------------------------------________________ organized and existing under the laws of the State of
_____________________ , ("Interconnection Customer,") and Idaho Power Company a
Corporation existing under the laws of the State of Idaho, ("Transmission Provider").
Interconnection Customer and Transmission Provider each may be referred to as a "Party," or
collectively as the "Parties."
RECITALS
WHEREAS, the Interconnection Customer is propos~ng to develop a Small Generating Facility
or generating capacity addition to an existing Small Generating Facility consistent with the
Interconnection Request completed by the Interconnection Customer on 12/19/05; and
WHEREAS, the Interconnection Customer desires to interconnect the Small Generating Facility
with the Transmission Provider's Transmission System;
WHEREAS, the Transmission Provider has completed a feasibility study and provided the
results of said study to the Interconnection Customer (This recital to be omitted if the Parties
have agreed to forego the feasi~ility study.); and
WHEREAS, the Interconnection Customer has requested the Transmission Provider to perform
a system impact study(s) to assess the impact of interconnecting the Small Generating Facility
with the Transmission Provider's Transmission System, and of any Affected Systems;
NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein
the Parties agreed as follows:
1.0 When used in this Agreement, with initial capitalization, the terms specified shall have
the meanings indicated or the meanings specified in the standard Small Generator
Interconnection Procedures.
2.0 The Interconnection Customer elects and the Transmission Provider shall cause to be
performed a system impact study( s) consistent with the standard Small Generator
Interconnection Procedures in accordance with the Open Access Transmission Tariff.
3.0 The scope of a system impact study shall be subject to the assumptions set forth in
Attachment A to this Agreement.
4.0 A system impact study will be based upon the results of the feasibility study and the
technical information provided by Interconnection Customer in the Interconnection
Request. The Transmission Provider reserves the right to request additional technical
information from the Interconnection Customer as may reasonably become necessary
consistent with Good Utility Practice during the course ofthe system impact study. If the
Page 1
Lava Beds Wind Park -Project #156
IntercOlmection Customer modifies its designated Point of Interconnection,
Interconnection Request, or the technical information provided therein is modified, the
time to complete the system impact study may be extended.
5.0 A system impact study shall consist of a ShOlt circuit analysis, a stability analysis, a
power flow analysis, voltage drop and flicker studies, protection and set point
coordination studies, and grounding reviews, as necessary. A system impact study shall
state the assumptions upon which it is based, state the results of the analyses, and provide
the requirement or potential impediments to providing the requested interconnection
service, including a preliminary indication of the cost and length of time that would be
necessary to correct any problems identified in those analyses and implement the
interconnection. A system impact study shall provide a list of facilities that are required
as a result of the Interconnection Request and non-binding good faith estimates of cost
responsibility and time to construct.
6.0 A distribution system impact study shall incorporate a distribution load flow study, an
analysis of equipment interrupting ratings, protection coordination study, voltage drop
and flicker studies, protection and set point coordination studies, grounding reviews, and
the impact on electric system operation, as necessary.
7.0 Affected Systems may participate in the preparation of a system impact study, with a
division of costs among such entities as they may agree. All Affected Systems shall be
afforded an opportunity to review and comment upon a system impact study that covers
potential adverse system impacts on their electric systems, and the Transmission Provider
has 20 additional Business Days to complete a system impact study requiring review by
Affected Systems.
8.0 If the Transmission Provider uses a queuing procedure for sorting or prioritizing projects
and their associated cost responsibilities for any required Network Upgrades, the system
impact study shall consider all generating facilities (and with respect to paragraph 8.3
below, any identified Upgrades associated with such higher queued interconnection) that,
on the date the system impact study is commenced -
8.1 Are directly interconnected with the Transmission Provider's electric system; or
8.2 Are interconnected with Affected Systems and may have an impact on the
proposed interconnection; and
8.3 Have a pending higher queued Interconnection Request to interconnect with the
Transmission Provider's electric system.
9.0 A distribution system impact study, if required, shall be completed and the results
transmitted to the Interconnection Customer within 30 Business Days after this
Agreement is signed by the Parties. A transmission system impact study, if required,
shall be completed and the results transmitted to the Interconnection Customer within 45
Page 2
Lava Beds Wind Park -Project #156
Business Days after this Agreement is signed by the Parties, or in accordance with the
Transmission Provider's queuing procedures.
10.0 A $3,000.00 deposit (the equivalent of the good faith estimated cost of a distribution
system impact study) will be required from the Interconnection Customer.
11.0 Any study fees shall be based on the Transmission Provider's actual costs and will be
invoiced to the Interconnection Customer after the study is completed and delivered and
will include a summary of professional time.
12.0 The Interconnection Customer must pay any study costs that exceed the deposit without
interest within 30 calendar days on receipt of the invoice or resolution of any dispute. If
the deposit exceeds the invoiced fees, the Transmission Provider shall refund such excess
within 30 calendar days of the invoice without interest.
IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
Provider: Interconnection Customer:
Idaho Power Company -Delivery
Signed'---_____________ Signed. ___________ _
Name (Printed): Name (Printed):
Title Title ------------------------------------
Date Date ---------------------------------
"
Page 3
Lava Beds Wind Park -Project #156
Attachment A
Assumptions Used in Conducting the System Impact Study
The system impact study shall be based upon the results of the feasibility study, subject to any
modifications in accordance with the standard Small Generator Interconnection Procedures, and
the following assumptions:
1) Designation of Point of Interconnection and configuration to be studied.
2) Designation of alternative Points of Interconnection and configuration.
1) and 2) are to be c(i)l~pletCj:d bY ,the Inte'rconnection Customer. Other assumptions (listed
below)~ are to be provided ,by the ~~erSJOnnectioiJ Customer and,the Trans-mission Provider.
Page 4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 8
I
I
I"
,
I
Lava Beds Wind Park Ptojcct,#,)56
System Impact Study Agteement , 20{) B vf)#t{
THIS AGREEMENT is ll1fJ:de: and entered into this ~ day (jf-Li!ftfjl~ and
b'ettvjj:e.tl. h~~~,;;:, ,01.1 l'rM H"-,.,"-"'.... 6.i"'~;' {f" -;z:; .!1lt.:i;a. ?"a Lt'''' (A"",_ ilap",,,"C'e. d Ql;"gar'iize.d
agd e~i'~t~hg l!il9.:~r .the 1~~/~ ofthe matl;l.<"J:f ~A H-Q , {'lrl)t~rCO'.lUlectio.y.[
Ctlsibpl¢l;"l') an-q. Idah(')·Po~et . .comp~y ·a.:·.G:otQQl'afistn" e#$:tiPg u~qer the l~ws: of tl1:e.State E)f
lrraTi0·~C'Tran8mlssion.Provi'der!l)i IrtterconnectibnCustomer'an<i Transniission Pto:vider;ea~h
may be·tefmed-toas a'!:P:artYt' 6j: .collectivelY as:·ilie "Parties."
WHE'J;mAS,: fue J.ilterc(}J)n~ytip!lGJls~~ne.risp1.'9P9~ip;g.J9 :deveJo;p <! ~tqa11 Gep.~atir;fg:FaciH ty'
or;gell enating capacit,y.addition·to .ml existing Small Generating Fadlity consisterit with the
Interconnec.tioliRequest cOriipletedbylhe IhterC'ol1riecttb-nCustoinel; on12119105aiid; . '. . . '. .
WB;E.iQ5A~;thy U1t~t9qnn~.t;5tiQn~dtl:siJtm¢r.q~~ire_!);,t.Q 'jptetepn.nec:t th~'smat1 qepl<tafing Facility
'Yith th.tt traI);smissioir)?ro\tide,l":!j'Trall.sl11l!s:;ion Systenli .
'W$RE,A~, the T);ansmls~jrill,BiP.v.id~ ba~.c'6mpi.~t~~.a fe'JSi~ility s~dy an~ p!0Yide'~ th~
fest).J~$bf$~i9·.$J(I.~ty.,-t.O'ttte EQ.t(\!1'Q:9m.xe.e:;.tLon. C~t6m~t:. roti.s :rebltal eg;li¢.-,!G.lwtr.¢lhf.tb,e· P;rt'((~S,
hayel;n,ry:ee~ tQ .fbregq:tJ-t¢ fe,a~jbmtY';shrty);~p:4' .
::w:mtREAS.', the. Ititetconneiiltiot1,Cust6.mer;has r.~ueStecLf1ie. Tl'ansnusslonfl.roVider'tQ perform
.~ stRt~l ~Pit~~ -sWdy(~' to 'ass~s<s fu~~-pa~t utlniercotme,ctrl?;t ·tne. 8~all Geae-ta:t1Tii:g,.f at ility
Wif1ttfi~,©:ansW~$iQmF,rQV-'i..{l(tJ;~S ;Tt-an~~~~iQP. Sy~teth;, :&P~t~filrtY .Aff~Gt~d System:S5
NOW; THERElOORE-1 .in consider-aition ()f.~ subj:e.ct to the mutual cov..enatits·contained herein
the P·31tioes. agreed as 'ftillrows:
1.;.0 'W11;ep u.~e.d.in:·t1i.i$.Agreen.len.4,wit4 ip.iti~l ~AAjtali:z<),-pi:Q.:O. theie.Jtm-s :~p,e.€ifi~:d sh~ gave
th.enreanirlg§.' illd*'?~ted 0ft1;J.e m.~.<:!-~iflgS 'specffi:e"d in1:he standard. Small Genemtor
Interconnection Rt0;Ced'utes~,
.'2',0 The rnt~rcon:ne,cdoll.:.Ct1$tomer ele¢.tsrui.d.thl:f. T:i.'~n:sini~$iQhI1j.:ovid¢t sMll causew:b~
pet(cll;tneq a l>Y$J~~p .ilttP·~'ct ~tJ+.dy(~) (;oitsi~teritw~th tp.~:s~#ndardSJ11?l10e~etatQr'
rnterconne~tion Procedures in accordance with the Open f;.:ccess Transmission Tarim
3.0 The scope.of a syste.llW:i.ulp~ct-stbdY$han.b.e sulJJect to' the' 8,SSti111'ptloilS settoiUl-:il1
AttaClritJel'tt A t~ 'tliis. A~t:e~hf¢tit, .. . .
4; 0 A syst~m jm.p~ot study wtl1b,e b~sed, upon th~ l"esllltS of the feas.ibifit-y s;tud,yand the
techni:cal intoll11ation piovided .by:Interconnection CustOluer in the Interconnection
R!';:.qllest. The Tl'allsmissiohP-rdvider resel-veS the .right to request .additional tech::tJkal
ll'lfdtllllltiop frop1 Jh~ Int~rC01'lti~ctipil CustQr;P,e.r as may re.asort!!-hly l;lecorne 11ecessary
consistent With Good tJtiii'tyPractil;;e·duri1lg, the ¢q:utse of th~.system impact study; If the
Interconn-ection Customer modifies its desigmtted Point ofInterconnection,
Page 1
LavaEeM Wind Park Project #156
Interconnection Request~ or .the technical inionnation provided therein is modified,the
time:to complete the'sysiem impact,studYJ1i~Y be extended.
5.0 ,A, syste~ ll11ia:0t sttj:dy.,sruiH Qon~~st Q'f ash91t circllii analysis, 'astabil1ty 'l!.laiysi:S, a
pow:~i"'ftow 'aim1.rsf$, vQltfJJ~~' &:011 IDld fliYl.<~r sh:i~ e.& . pIotectioif @9 set p~jht
~oo;:d~l.1!j,tI(m .~t't!.d:i<;l$; ap'Q:.:gr~t\l1ajn:g.rey(ews,a:s u~c,ess~ry. A:s:y~te1llimp·a.ct srad;y Shar~
st~t.eih(j).a.s-sump.ti'tms'1'!P.,~n whldhiHs basoo, state the ~;esti1ts oft;lle alui:lyses, 'aJ.ld'l1ra¥lde
the req:ui'temeat 0r potenti,a] imlleaimellts' to pJ'Oyj dUlg the Teg~lested intel::CGnn.eotion
sempi-,:;eA~Jttd:iQ.g a:pti.<lihJ}l(afY:in,di:c~tiQh of the co~t andjengtD oHiine·tl;J.'atw.Pt.nc.IJ'le
;nec~.s.saiy' fq Q01:~ect~pY':pj"aOleJX1$ldeJl:ttfied I]f.l, those: an alY,teS.-an<f ilIl:fJremehr~e
iD,t,i§l'~olit;'l,t'l~oir. A ,s~rs'tijm' Impact ,s'fuay'st-ral1pr.p¥lde-a.list QrFa~t1itles_tll~t 'a1;~ Yegl1ir.ed
liS U(f~'!;i~t;-ont'be:Io.t~r.cbf,lne6~h)it Re'q!iJ.est ap,d,non-bihcfu:).g .goo_qJai~ ~ti1nfht~ ¢l egs,t
';(.el?,PQ~.H~illi'fy ana tUlul',ttl:,cQJlstrmct.
(tQ' :A distrihliuIPt);'$ysJen1. ~1tP,JiQt;'stI.i~y sbaliin¢orp,9i1ate a:d.iStfilJ·ut{<m 1o'a-a tltlWl$,tQ,dy, :aD
~'A~IYSis Qf'€qy,w.rn,en.t.hltercJJpttn~J'*iiigs, prbt'edi'on 'cCiQ:rdip~ti6fl st-udy,:'\/.Qlt*~t'l d,ipp'
a,nd fIick¥l' stUl!Ii~)~, :p'l:(5t~tti:on auid scl;poin1' 'co€!rdinati:Ol'l,$tll~i~s~ gr0~mdiugl'eview$" and
·the l11l;pacLou.eIecfd'c ~ystem opera:H0n~ asnecess-aty.,
7:0,' A1f.eetGt'l' Si¥$t~i!i!l~' jitaJt;tra.tti~p"a:r~:lP th.e ~ta1?:aIgtiQP:of a;~'~1$lem. ;itupac~ stJ,1d.y ~ willi -a,
flj~<:tJl of ~bSf~:i@MIfg s.uclH~1l~~~s·a'$lf}:i:~1n\ay a~ee, AI l Mec~i:l.d SY#,em& §b~n ~~
~ffQt4¢.g; an. ,e:[ip.orfurrl~t9 l,"eview,'a;nd c('j~en.t,;l:!pon.,~'~'ystem2im'p.a(i)bS'tudy. ib:at,"CO~ers.
potent'fati.auv'erse sy.st6llmitllpacts, ontlreire:lechic, s;ystehis;, aild tM,Ttallsiuission Providei'"
;:~~~~:;~~~~~li~le~s<tftay.s 't6,ebmpl¢te a sy'st~hdilip'act sJuilyr~qiri;tin$"fe¥h~w 5y
8.0. Ifthe Tl-ruiSmiss·jorr .. Provider llses a 'C}ueUl::ll;g;Pl'o:oedure:[e-mail]~.'-;)l' pl'i0.I;iti~~k@ro.1:ec.t$ and th6ii;ass'odated QOstIysponsihlli,ties 'for.any re:gQh'ed Netw,efl( UpJw.aCios, ·tl1.e:s:y,~tem
.imp}:ret,stwJy"Shaii aqn~si'd~r all ge.ner.:iUbg ff.tcHlltes (ancl-v.J:ith, 't:e$'t)~~t to patagtap.h~8.;~
"9~i9W, ,lifiyigieI1fifted ~'p'gl;ad:es~~§1>.e.pt(lt~d ~M,:;lu·qJJ. fugh:er ®.eueq i'titercpll~·leqtiQ)3J ,that.
'pn ~he datelhe,&y~tetp: i'n).pad~.'stt.1dy-is"ctllru:n.enced -0-
£:2 Are: irtt~~~c!i1ijlj~tG~w:it.l~A.:ft~~t~.d:i3y!sterps ;,tn..d may 11.a:ye 3:n :im,pa6t·9pdW
proPQsed ..t.tltel;cVtnrectio:t1; :and: .' ..
8.3 Ha.V~ .• :qiefidingJligher quel.leU Intl!wolll1ectiOll Requ.est to interconnect withene
T-rau.siui&sio.o: p.i·,oYi.c(er's :efet.b::i:c system.
9.0 A distiiq:qtion s:yst~m. 1111P1l;Ct stU'dy;.jfrequil'e~, shaH be completed and: the results
transmitted'to the Iriterconnection Gustomer within 3'0 Business Days after this
Agreel'l1ertt is sigried by thePadies. A transmission systeiri itilpact study, If required,
shall -b¢¢o:ri1pleted and the'i'¢sults tl.'MSi'i'iitt¢d to the liltl:)l~c6.nl1e.ctiOJj Custottierwithh145
Bllsiness Days after {his AgL'eem¢J:'\tis signed' bY the Pqrties, otin accqrdanoewith the
Tra1;rsmission'Providcr's queu'iilg procedures.
Pao-e 2 o.
Lavi:! Beds Wind Park Project #156
.i(tO ,A$J O;OOO.OQ;qeppsit (th,eeq1ii:valent 'ofthe}good fait]i estiinatedcost .. ofa transmission
system impact study) will be required from the Intercol1n¢cti-onCustQUler..
1 J.O AllY csttiCiy fe.es·.shall bet based onthe:Tl'atlsi.":i1lss1:M Pl;oviCiler!~ a:ctual 'costs &:rid will be
IIlV'(;)ic~.~ t~ th~ :ib1;~J;CQJi.lle.9tiQl~ C\.j~.toJ~!i!r ¢ftet the staj:'\..yj~s e~1t1pt~lG.Q·ap.d ~~Uv:~edap:d
wHl inc'hr4e:;I!'.surol.Jia,ry (jtprofessiol1af ~il11e., .
12,0 'The .I:riterce-ltnedion OustOOlcr.rnust p~ an.3Y ,studY')~osts·that exceefl!·th:e d~posjt:withuut
.mteRost 'W.Hhia 3'0. crue.ri:-oaf .days on .receipL¢Tth.e:itlVofue:.Qr1 tr'eso1iltion €}f,'any cU1ipufe.. If
the iLep:mlit, exc~eds tne.iiilv.iii,€:ed fe.es, the t t1.:anSlhission.PfbWd'bt s11atJ. reftfrid sU6b:¢xc:ess
wj'th'l:ri." ~ OoflleQ~~ ll~f~:,Qfth:t7J voi:c~ \V{tlt:Oilrip.tete$;t. " .-
.IN WI1'NESS ''Ii'.@:E-~~:F l·tae· P&l'J1;~s have cause(J th'i~4gfeem€;:nt-to'bedu1yexecuted by their
.duly:-'8;uthor-i.zcid -effi cer5 Q'f',agejftS, 6:n.±he day and year· :fiistabQY~ writteil.
Jntercoimection Customer.'
.pa\~. _.LA£.:..zJ" "'"''''4' -... -£....1.. A~-:.r'-· _f,"_" _~6.=:_3_t_'2_., _ -. {
Lava Beds Win.d Park ~\qJ~ct #:15;6
Assump.tl<niS: lused In CDhdudhig. the System Impa.ct study . ".
'Tb~ ~sttllrp,tiii:ij:laet..$tQdy·sllroI lr~''ha,ged upoILth~,.e·s'lilts., of tlIe feasibi'ijt;y stuo\¥"; ~.p~i ee . :t9 aI'fY
nilirdme!ttlQ*-:.b;r 1?:bepf9~ee Wit4 the'standflro SmalT @enel'aror tnte,reonnectiJm Fm(;:edUr'es~;.~·'ld
'~h:e: f-91li!):wt:m~ass,\il:~l1p.thms:
P~ge4
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 9
GENERATOR INTERCONNECTION
SYSTEMIMWACTSTUDY
for integration ofthe proposed
LAVA BEDS WIND PARK PROJECT
Idaho Power Queue #156
in
BINGHAM COUNTY, IDAHO
to the
IDAHO POWER COMPANY ELECTRICAL SYSTEM
for
EXERGY DEVELOPMENT GROUP, LLC
the
INTERCONNECTION CUSTOMER
DRAFT REPORT
July 30, 2009
OFFICIAL USE ONLY
DO NOT DUPLICATE, DISTRIBUTE, PUBLISH OR SHARE
This report contains Idaho Power Company Critical Energy Infrastructure Information (CEil).
Distribution of this report must be limited to parties that have entered into a non-disclosure
agreement with Idaho Power Company and have a need to know.
JLE
1.0 Introduction
Exergy Development Group, LLC has contracted with Idaho Power Company (IPC) to perform a
Generator Interconnection System Impact Study (SIS) for the integration of the proposed 18 MW
Lava Beds Wind Park Project (project #156). The proposed location of the project is in Idaho
Power's eastern Idaho service territory in sections 14, 22, 23, 26, 27,34 and 35 of TIS, R32E
and sections 2 and 3 ofT2S, R32E of Bingham County, Idaho. The point of interconnection
(POI) to IPC will be the corner of 800 N. and 1900 W., connecting to IPCs Haven~42
distribution feeder.
This report documents the basis for and the results of this SIS for the Lava Beds Wind Park. It
describes the proposed project, the impact of associated projects, and results of all work in the
areas of concern.
2.0 Summary
The Lava Beds Project, a 18 MW wind power project, was studied in this SIS. Projects in the
queue ahead of Lava Beds are included in this SIS.
This SIS looks at two items: (1) Local interconnection requirements for the interconnection of
the Lava Beds Wind Park Project to the Haven-042 distribution feeder and Haven 138 kV
system, and (2) IPC Network Upgrades required.
Local Interconnection Requirements
Integration of 18 MW requires the addition of a generation interconnection package on the
Haven-042 feeder. This interconnection package will be used to protect IPCs system from any
problems on the interconnection customers side of the POI.
The interconnection customer will be responsible for ensuring that the voltage at the point of
interconnection does not exceed more than 5% above nominal voltage (1.05), otherwise the Lava
Beds Wind Park will be disconnected from the Idaho Power system. Lava Beds will have to
operate at a 0.95 power factor (underexcited, absorbing reactive VArs) at all times of the year in
order to maintain the feeder voltage within an acceptable range. Capacitors totaling at least 6
MV Ar will be required on the 34.5 kV bus at Haven to mitigate for the reactive V Ars consumed
by the project. Capacitors will have to be switched in increments of less than 2 MY Ar.
Additional protective devices and communication may be required between the local area 138
kV system, and Lava Beds, to prevent an islanding situation. If the upstream 138 kV system is
disconnected from Haven, for any reason, the local area load and Lava Beds wind farm could
remain intact and form an island. If this happens, the 138 kV system should not be allowed to
close back into the islanded system until Lava Beds eventually trips on under/over
frequency/voltage.
The Load Tap Changer at Haven substation will have to be reprogrammed to serve the proposed
project.
OfFICIAL USE ONLY
This report contains Idaho Power Company Critical Energy Inli·asullcture Infonnation (CEIl). Distribution of this repo,l must be limited to paolies that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P i\ g e 12/10
Network Integration of Lava Beds
Assuming that Lava Beds generation is being sold to IPC, there are two transmission paths that
Lava Beds wind generation will have to cross. These two transmission paths are (1) Borah West,
and (2) Midpoint West (which is currently being rolled into a path to be called Boise East after
the summer of2010). Transmission capacity across the two paths may not be available, and the
Lava Beds project will be responsible for the cost of Network upgrades in order to secure firm
transmission. Costs ofthis transmission could be sizeable.
This Generation Interconnection System Impact Study cannot allocate transmission service to the
Lava Beds project. The interconnection customer will have to coordinate with IPCs Power
Supply group regarding purchasing the output of the Lava Beds project. IPCs Power Supply will
work with IPCs Transmission group to determine if capacity exists, or whether a Transmission
Service Request will be required.
If the interconnection customer is planning to sell the Lava Beds output to another utility, a
transmission service request will be required to secure transmission rights on the IPC
transmission system.
IPC performed a transient stability analysis using GE PSLF software to determine whether there
was any transient impact to adding the Lava Beds Wind Park on the Haven-042 feeder. The
stability analysis performed revealed frequency problems with the GE units for multi-phase
faults around the Haven 138 k V area. Both during the fault, and just after the fault, frequency in
the Haven area plummeted, caused by the wind turbine generators. After the fault is cleared,
frequency took longer than the WECC reliability criteria standard of six cycles to recover to 59.6
Hz. The results of this study indicate that it is very likely Lava Beds will be tripped on under­
frequency for faults in the Haven area.
OFfICIAL USE ONLY
This report conrains Idaho Power Company Critical Energy Infrasbucture Infotmation (CEll). Dis~·ibution ofthis lepott must be limited to palties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P age 13/10
3.0 Scope of Interconnection System Impact Study
The Interconnection System Impact Study was done and prepared in accordance with Idaho
Power Company Standard Generator Interconnection Procedures, to provide a detailed
evaluation of the interconnection of the proposed generating project to the Idaho Power system.
As listed in Section 5.0 of the Interconnection System Impact Study agreement, the
Interconnection System Impact Study report provides the following information:
identification of any circuit breaker short circuit capability limits exceeded
as a result of the interconnection;
identification of any thermal overload or voltage limit violations resulting
from the interconnection;
identification of any instability or inadequately damped response to
system disturbances resulting from the interconnection; and
description and non-binding, good faith estimated cost of facilities
required to interconnect the Large Generating Facility to the Transmission
System and to address the identified short circuit, stability, and power
flow issues.
All other proposed Generation projects prior to this project in the Generator Interconnect queue
were considered in this study. A current list of these projects can be found on the Idaho Power
web site, http://www.oatioasis.com/ipco/index.html.
4.0 Description of Proposed Generating Project
The Lava Beds Wind Park proposes to connect to the Idaho Power distribution system for an
injection of 18.0 MW (maximum project output) using twelve GE 1.5 MW wind turbines.
5.0 Description of Existing Transmission Facilities
Idaho Power serves Haven substation with a 138 kV line out of Pingree substation. The
conductor on this 138 kV line is 397 ACSR, which has a continuous thermal rating of 14l.0
MVA.
Idaho Power has two internal transmission paths between Lava Beds Generation and the growing
Treasure Valley (Boise) load that the Lava Beds generation will have to cross. The first path to
the west is Borah West. The Borah West transmission path consists of three 345 kV lines, one
230 kV line, and one 138 kV line. The second path to the west is Midpoint West. Midpoint
West consists of three 230 kV lines, and two 138 kV lines.
OFFICIAL USE ONLY
This repol t contains Idaho Powel Company Critical Energy Injj-astroctw"e Inronnation (CEIl). Dish'ibution of this report must be limited to palties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P age 14/10
6.0 Description of Existing Su bstation Facilities
Idaho Power's Haven substation is located at about 540 N. and 1500 W. on Taber Road in
Bingham County. The existing substation transformer is rated at 20.0 MV A. There is adequate
capacity for the full 18.0 MW of generation as long as capacitors are installed on the 34.5 kV bus
at Haven for power factor adjustment.
7.0 Description of Existing Distribution Facilities
Haven-042 serves the project area. This is a grounded wye feeder operating at 34.5 kV. There is
adequate thermal capacity on this feeder, to the designated point of interconnection, to accept the
full 18.0 MW of generation.
8.0 Local Interconnection Requirements
Integration of 18 MW requires the addition of a generation interconnection package on the
Haven-042 feeder. This interconnection package will be used to protect lPCs system from any
problems on the interconnection customers side ofthe POI.
The interconnection customer will be responsible for ensuring that the voltage at the point of
interconnection does not exceed more than 5% above nominal voltage (l.05), otherwise the Lava
Beds Wind Park will be disconnected from the Idaho Power system. Lava Beds will have to
operate at a 0.95 (under-excited, absorbing reactive V Ars) at all times of the year in order to
maintain the feeder voltage within an acceptable range. Capacitors totaling at least 6 MY Ar will
be required on the 34.5 kV bus at Haven to mitigate for the reactive V Ars consumed by the
project. Capacitors will have to be switched in increments of less than 2 MY Ar.
Additional protective devices and communication may be required between the local area 138
kV system, and Lava Beds, to prevent an islanding situation. Ifthe upstream 138 kV system is
disconnected from Haven, for any reason, the local area load and Lava Beds wind farm could
remain intact and form an island. If this happens, the 138 kV system should not be allowed to
close back into the islanded system until Lava Beds eventually trips on under/over
frequency/voltage.
The Load Tap Changer at Haven substation will have to be reprogrammed to serve the proposed
project.
OFFICIAL USE ONL Y
This rep0!1 contains Idaho Power Company Clitical Energy Infrastructure Infonnation (CEll). Distribution of this repOlt must be limited to palties that have
_, entered into a non· disclosure agreement with Idaho Power Company and have a need to know
P a g: e 15110
9.0 Network Integration of Lava Beds
Assuming that Lava Beds generation is being sold to IPC, there are two transmission paths that
Lava Beds wind generation will have to cross. These two transmission paths are (1) Borah West,
and (2) Midpoint West (which is currently being rolled into a path to be called Boise East after
the summer of2010). Transmission capacity across the two paths may not be available, and the
Lava Beds project will be responsible for the cost of Network upgrades in order to secure firm
transmission. Costs of this transmission could be sizeable.
This Generation Interconnection System Impact Study cannot allocate transmission service to the
Lava Beds project. The interconnection customer will have to coordinate with IPCs Power
Supply group regarding purchasing the output of the Lava Beds project. IPCs Power Supply will
work with IPCs Transmission group to determine if capacity exists, or whether a Transmission
Service Request will be required.
If the interconnection customer is planning to sell the Lava Beds output to another utility, a
transmission service request will be required to secure transmission rights on the IPC
transmission system.
10.0 Transient Stability Study Results
IPC performed a transient stability analysis using GE PSLF software to determine whether there
was any transient impact to adding the Lava Beds Wind Park on the Haven-042 feeder. The
stability analysis performed revealed frequency problems with the GE units for multi-phase
faults around the Haven 138 kVarea. Both during the fault, and just after the fault, frequency in
the Haven area plummeted, caused by the wind turbine generators. After the fault is cleared,
frequency took longer than the WECC reliability criteria standard of six cycles to recover to 59.6
Hz. The results of this study indicate that it is very likely Lava Beds will be tripped on under­
frequency for multi-phase faults in the Haven area.
OFFlCIAL USE ONLY
This repol t contains Idaho Powel Company Clitical Energy Infrasllllctur. lnfonnation (CEll). Distribution of this report must be limited to pa'1ies that have
entel ed into a non-disclosure agreement wlth Idaho Powel Company and have a need to know.
P a g -: 16110
11.0 Description and Cost Estimate of Required Facility Upgrades
These cost estimates include direct equipment and installation labor costs, indirect labor costs
and overheads. (Tax Gross Up has not been included presuming construction of interconnection
facilities will not qualify under IRS rules as a taxable event. Allowance for funds used during
construction (AFUDC) has not been included in the cost estimates since it is assumed that IPC
will be provided up-front funding by the Project). No attempt has been made in this study to
assign network upgrade costs and not all ofthe estimated facility costs are necessarily the
responsibility of the Project. These are cost estimates only and final charges to the customer will
be based on the actual construction costs incurred.
Description Cost
Reprogramming LTC at HA VN substation $2,000
Capacitor bank at HA VN substation $150,000
Generator Interconnection Package $288,000
Protection Upgrades (Islanding Prevention) $500,000
Total Estimated Cost $940,000
Table 1. Required Upgrades
Costs to upgrade Midpoint West are not included, assuming that the interconnection customer,
and the Idaho Power merchant are willing to accept conditional firm transmission service until
the completion of the Gateway West 500 kV upgrades between Midpoint and Boise.
12.0 Description of Operating Requirements
In addition to these upgrades and the restrictions described in Section 7, there are several other
operating requirements that must be met. Voltage flicker at startup and during operation will be
limited to less than 5% as measured at the point of interconnection. Also, the project is required
to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard
519-19921EEE Recommended Practices and Requirements for Harmonic Control in Electrical
Power Systems.
The Lava Beds project may also be added to the Borah West RAS (remedial action scheme) as
IPC generation available to be tripped for major system disturbances.
OFFICIAL USE ONLY
This report contains Idaho Power Company Oitical Energy Infrastructure Infonnation (CEIl). Distribution of this repOlt must be limited to parties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P iI g <.: 17/10
13.0 Conclusions
The requested interconnection of the Lava Beds Wind Park to Idaho Power's system was studied.
The results of this work indicate that upgrades will have to be made to the local area protection
system to accept 18 MW of Wind generation (Generation Interconnection package, and Islanding
Prevention protection upgrades). The interconnection customer will have to work through IPCs
Power Supply Group to determine the extent of network transmission upgrades required to
accept the Lava Beds generation onto the bulk electrical system. The estimated costs of the
modifications required, excluding potential network transmission upgrades, are listed in Section
11.0 of this report. These are estimated costs only and final charges to the customer will be
based on the actual construction costs incurred.
Next, a facility study will be required to look at the requirements from a construction standpoint.
Details about the changes to be made will yield a much more detailed and thorough cost
estimate.
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This repOit contains Idaho Power Company Critical Energy lnli'astructure lnfonnatioll (CEil). Disb'jbutioll ofthis repOlt must be limited to palties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P <l g: e 18/10
APPENDIX A
A-1.0 Method of Study
The Feasibility Study plan inserts the Project up to the maximum requested injection into the
selected Western Electric Coordinating Council (WECC) power flow case and then, using GE's
Positive Sequence Load Flow (PSLF) analysis tools or Power World Simulator, examines the
impacts of the new resource on Idaho Power's system (lines, transformers, etc.) within the study
area under various operating/outage scenarios. The WECC and Idaho Power reliability criteria
and Idaho Power operating procedures were used to determine the acceptability of the
configurations considered. The WECC case is a recent case modified to simulate stressed but
reasonable pre-contingency energy transfers utilizing the IPC system. For distribution feeder
analysis, Idaho Power utilizes Advantica's SynerGEE software.
A-2.0 Acceptability Criteria
The following acceptability criteria were used in the power flow analysis to determine under
which system configuration modifications may be required:
The continuous rating of equipment is assumed to be the normal thermal rating of the
equipment. This rating will be as determined by the manufacturer of the equipment or as
determined by Idaho Power. Less than or equal to 100% of continuous rating is
acceptable.
Idaho Power's Voltage Operating Guidelines were used to determine voltage
requirements on the system. This states, in part, that distribution voltages, under normal
operating conditions, are to be maintained within plus or minus 5% (0.05 per unit) of
nominal everywhere on the feeder. Therefore, voltages greater than or equal to 0.95 pu
voltage and less than or equal to 1.05 pu voltage are acceptable.
Voltage flicker during starting or stopping the generator is limited to 5% as measured at
the point of interconnection, per Idaho Power's T &D Advisory Information Manual.
Idaho Power's Reliability Criteria for System Planning was used to determine proper
transmission system operation.
All customer generation must meet IEEE 519 and ANSI C84.1 Standards.
All other applicable national and Idaho Power standards and prudent utility practices
were used to determine the acceptability of the configurations considered.
The stable operation of the system requires an adequate supply of volt-amperes reactive
(V ARs) to maintain a stable voltage profile under both steady-state and dynamic system
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This repOlt contains Idaho Power Company elitieal Energy Infiastrueture Information (CEIl), Disb'ibution of this report must be limited to parties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know
P age 19/10
conditions. An inadequate supply ofVARs will result in voltage decay or even collapse
under the worst conditions.
Equipment/line/path ratings used will be those that are in use at the time of the study or that are
represented by IPC upgrade projects that are either currently under construction or whose
budgets have been approved for construction in the near future. All other potential future ratings
are outside the scope of this study. Future transmission changes may, however, affect current
facility ratings used in the study.
A-3.0 Grounding Guidance
Idaho Power Company (IPC) requires interconnected transformers to limit their ground fault
current to 20 amps at the point of interconnection.
A-4.0 Electrical System Protection Guidance
IPC requires electrical system protection per Requirements for Generation Interconnections
found on the Idaho Power Web site,
http://www.idahopoweLcom/aboutusibusiness/generati,ooInterconnectl.
A-S.O WECC Coordinated Off-Nominal Frequency Load Shedding and Restoration
Requirements
IPC requires frequency operational limits to adhere to WECC Under-frequency and Over­
frequency Limits per the WECC Coordinated Off-Nominal Frequency Load Shedding and
Restoration Requirements available upon request.
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This report contains Idaho Power Company Critical Energy Inli'astructure [nfollnation (CEll) Distribution ofthis repOlt must be limited to parties that have
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p age 110110
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 10
GENERATOR INTERCONNECTION
SYSTEM IMP ACT STUDY
for integration of the proposed
LAVABEDS~NDPARKPROJECT
Idaho Power Queue #156
In
BINGHAM COUNTY, IDAHO
to the
IDAHO POWER COMPANY ELECTRICAL SYSTEM
for
EXERGY DEVELOPMENT GROUP, LLC
the
INTERCONNECTION CUSTOMER
FINAL REPORT
August 31, 2009
OFFICIAL USE ONLY
DO NOT DUPLICATE, DISTRIBUTE, PUBLISH OR SHARE
This report contains Idaho Power Company Critical Energy Infrastructure Information (CEil).
Distribution of this report must be limited to parties that have entered into a non-disclosure
agreement with Idaho Power Company and have a need to know.
JLE
1.0 Introduction
Exergy Development Group, LLC has contracted with Idaho Power Company (IPC) to perform a
Generator Interconnection System Impact Study (SIS) for the integration of the proposed 18 MW
Lava Beds Wind Park Project (project #156). The proposed location of the project is in Idaho
Power's eastern Idaho service territory in sections 14,22,23,26,27,34 and 35 of TIS, R32E
and sections 2 and 3 ofT2S, R32E of Bingham County, Idaho. The point of interconnection
(POI) to IPC will be the comer of 800 N. and 1900 W., connecting to IPCs Haven-042
distribution feeder.
This report documents the basis for and the results of this SIS for the Lava Beds Wind Park. It
describes the proposed project, the impact of associated projects, and results of all work in the
areas of concern.
2.0 Summary
The Lava Beds Project, a 18 MW wind power project, was studied in this SIS. Projects in the
queue ahead of Lava Beds are included in this SIS.
This SIS looks at two items: (1) Local interconnection requirements for the interconnection of
the Lava Beds Wind Park Project to the Haven-042 distribution feeder and Haven 138 kV
system, and (2) IPC Network Upgrades required.
Local Interconnection Requirements
Integration of 18 MW requires the addition of a generation interconnection package on the
Haven-042 feeder. This interconnection package will be used to protect IPCs system from any
problems on the interconnection customers side ofthe POI.
The interconnection customer will be responsible for ensuring that the voltage at the point of
interconnection does not exceed more than 5% above nominal voltage (1.05), otherwise the Lava
Beds Wind Park will be disconnected from the Idaho Power system. Lava Beds will have to
operate at a 0.95 power factor (underexcited, absorbing reactive VArs) at all times of the year in
order to maintain the feeder voltage within an acceptable range. Capacitors totaling at least 6
MV Ar will be required on the 34.5 kV bus at Haven to mitigate for the reactive V Ars consumed
by the project. Capacitors will have to be switched in increments of less than 2 MY Ar.
Additional protective devices and communication may be required between the local area 138
kV system, and Lava Beds, to prevent an islanding situation. If the upstream 138 kV system is
disconnected from Haven, for any reason, the local area load and Lava Beds wind farm could
remain intact and form an island. If this happens, the 138 kV system should not be allowed to
close back into the islanded system until Lava Beds eventually trips on under/over
frequency/voltage.
The Load Tap Changer at Haven substation will have to be reprogrammed to serve the proposed
project.
OFFICIAL USE ONLY
This report contains Idaho Power Company Critical Energy Infr·asbucture Infonnation (CEll). Distribution ofthis repOit must be limited to palties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P age 12/10
Network Integration of Lava Beds
Assuming that Lava Beds generation is being sold to IPC, there are two transmission paths that
Lava Beds wind generation will have to cross. These two transmission paths are (1) Borah West,
and (2) Midpoint West (which is currently being rolled into a path to be called Boise East after
the summer of2010). Transmission capacity across the two paths may not be available, and the
Lava Beds project will be responsible for the cost of Network upgrades in order to secure firm
transmission. Costs of this transmission could be sizeable.
This Generation Interconnection System Impact Study cannot allocate transmission service to the
Lava Beds project. The interconnection customer will have to coordinate with IPCs Power
Supply group regarding purchasing the output of the Lava Beds project. IPCs Power Supply will
work with IPCs Transmission group to determine if capacity exists, or whether a Transmission
Service Request will be required.
If the interconnection customer is planning to sell the Lava Beds output to another utility, a
transmission service request will be required to secure transmission rights on the IPC
transmission system.
IPC performed a transient stability analysis using GE PSLF software to determine whether there
was any transient impact to adding the Lava Beds Wind Park on the Haven-042 feeder. The
I stability analysis performed revealed frequency problems with the GE units for multi-phase
faults around the Haven l38 kVarea. Both during the fault, and just after the fault, frequency in
the Haven area plummeted, caused by the wind turbine generators. After the fault is cleared,
frequency took longer than the WECC reliability criteria standard of six cycles to recover to 59.6
Hz. The results of this study indicate that it is very likely Lava Beds will be tripped on under­
frequency for faults in the Haven area.
OFFICIAL USE ONLY
This report contains Idaho Power Company Critical Energy Infrastructure Infonnation (CEil), Disb'ibution ofthis repolt must be limited to panies that have
entered into a non-disclosure agleement with Idaho Power Company and have a need to know
P a g: e 13/10
3.0 Scope of Interconnection System Impact Study
The Interconnection System Impact Study was done and prepared in accordance with Idaho
Power Company Standard Generator Interconnection Procedures, to provide a detailed
evaluation of the interconnection ofthe proposed generating project to the Idaho Power system.
As listed in Section 5.0 of the Interconnection System Impact Study agreement, the
Interconnection System Impact Study report provides the following information:
identification of any circuit breaker short circuit capability limits exceeded
as a result of the interconnection;
identification of any thermal overload or voltage limit violations resulting
from the interconnection;
identification of any instability or inadequately damped response to
system disturbances resulting from the interconnection; and
description and non-binding, good faith estimated cost of facilities
required to interconnect the Large Generating Facility to the Transmission
System and to address the identified short circuit, stability, and power
flow issues.
All other proposed Generation projects prior to this project in the Generator Interconnect queue
were considered in this study. A current list of these projects can be found on the Idaho Power
web site, http://www.oatioasis.com/ipco/index.html.
4.0 Description of Proposed Generating Project
The Lava Beds Wind Park proposes to connect to the Idaho Power distribution system for an
injection of 18.0 MW (maximum project output) using twelve GE 1.5 MW wind turbines.
5.0 Description of Existing Transmission Facilities
Idaho Power serves Haven substation with a 138 kV line out of Pingree substation. The
conductor on this 138 kV line is 397 ACSR, which has a continuous thermal rating of 141.0
MVA.
Idaho Power has two internal transmission paths between Lava Beds Generation and the growing
Treasure Valley (Boise) load that the Lava Beds generation will have to cross. The first path to
the west is Borah West. The Borah West transmission path consists of three 345 kV lines, one
230 kV line, and one 138 kV line. The second path to the west is Midpoint West. Midpoint
West consists of three 230 kV lines, and two 138 kV lines.
OFFICIAL USE ONLY
This report contains Idaho Power Company Critical Energy Infiasn·ucture Infonnation (CEIl). Distribution ofthis repOlt must be limited to parties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P il g: ~ 14/10
6.0 Description of Existing Substation Facilities
Idaho Power's Haven substation is located at about 540 N. and 1500 W. on Taber Road in
Bingham County. The existing substation transformer is rated at 20.0 MVA. There is adequate
capacity for the full 18.0 MW of generation as long as capacitors are installed on the 34.5 kV bus
at Haven for power factor adjustment.
7.0 Description of Existing Distribution Facilities
Haven-042 serves the project area. This is a grounded wye feeder operating at 34.5 kV. There is
adequate thermal capacity on this feeder, to the designated point of interconnection, to accept the
full 18.0 MW of generation.
8.0 Local Interconnection Requirements
Integration of 18 MW requires the addition of a generation interconnection package on the
Haven-042 feeder. This interconnection package will be used to protect IPCs system from any
problems on the interconnection customers side of the POI.
The interconnection customer will be responsible for ensuring that the voltage at the point of
interconnection does not exceed more than 5% above nominal voltage (1.05), otherwise the Lava
Beds Wind Park will be disconnected from the Idaho Power system. Lava Beds will have to
operate at a 0.95 (under-excited, absorbing reactive V Ars) at all times of the year in order to
maintain the feeder voltage within an acceptable range. Capacitors totaling at least 6 MV Ar will
be required on the 34.5 kV bus at Haven to mitigate for the reactive V Ars consumed by the
project. Capacitors will have to be switched in increments of less than 2 MV Ar.
Additional protective devices and communication may be required between the local area 138
kV system, and Lava Beds, to prevent an islanding situation. If the upstream 138 kV system is
disconnected from Haven, for any reason, the local area load and Lava Beds wind farm could
remain intact and form an island. Ifthis happens, the 138 kV system should not be allowed to
close back into the islanded system until Lava Beds eventually trips on under/over
frequency/voltage.
The Load Tap Changer at Haven substation will have to be reprogrammed to serve the proposed
project.
OFFICIAL USE ONLY
This report contains Idaho Powel Company Critical Energy InfrastructUJe Infonnation (CEil). Distribution of this report must be limited to palties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know~
P n g t: 15/10
9.0 Network Integration of Lava Beds
Assuming that Lava Beds generation is being sold to IPC, there are two transmission paths that
Lava Beds wind generation will have to cross. These two transmission paths are (1) Borah West,
and (2) Midpoint West (which is currently being rolled into a path to be called Boise East after
the summer of2010). Transmission capacity across the two paths may not be available, and the
Lava Beds project will be responsible for the cost of Network upgrades in order to secure firm
transmission. Costs ofthis transmission could be sizeable.
This Generation Interconnection System Impact Study cannot allocate transmission service to the
Lava Beds project. The interconnection customer will have to coordinate with IPCs Power
Supply group regarding purchasing the output ofthe Lava Beds project. IPCs Power Supply will
work with IPCs Transmission group to determine if capacity exists, or whether a Transmission
Service Request will be required.
If the interconnection customer is planning to sell the Lava Beds output to another utility, a
transmission service request will be required to secure transmission rights on the IPC
transmission system.
10.0 Transient Stability Study Results
IPC performed a transient stability analysis using GE PSLF software to determine whether there
was any transient impact to adding the Lava Beds Wind Park on the Haven-042 feeder. The
stability analysis performed revealed frequency problems with the GE units for multi-phase
faults around the Haven 138 kV area. Both during the fault, and just after the fault, frequency in
the Haven area plummeted, caused by the wind turbine generators. After the fault is cleared,
frequency took longer than the WECC reliability criteria standard of six cycles to recover to 59.6
Hz. The results of this study indicate that it is very likely Lava Beds will be tripped on under­
frequency for multi-phase faults in the Haven area.
OFFICIAL USE ONLY
This report contains Idaho Power Company Oitieal Energy Inti·astrueture InfOlmation (CEIl). Distribution of this repOit must be limited to patties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
Page 16/10
11.0 Description and Cost Estimate of Required Facility Upgrades
These cost estimates include direct equipment and installation labor costs, indirect labor costs
and overheads. (Tax Gross Up has not been included presuming construction of interconnection
facilities will not qualify under IRS rules as a taxable event. Allowance for funds used during
construction (AFUDC) has not been included in the cost estimates since it is assumed that IPC
will be provided up-front funding by the Project). No attempt has been made in this study to
assign network upgrade costs and not all of the estimated facility costs are necessarily the
responsibility of the Project. These are cost estimates only and final charges to the customer will
be based on the actual construction costs incurred.
Description Cost
Reprogramming LTC at HA VN substation $2,000
Capacitor bank at HA VN substation $150,000
Generator Interconnection Package $288,000
Protection Upgrades (Islanding Prevention) $500,000
Total Estimated Cost $940,000
Table 1. Required Upgrades
Costs to upgrade Midpoint West are not included, assuming that the interconnection customer,
and the Idaho Power merchant are willing to accept conditional firm transmission service until
the completion of the Gateway West 500 kV upgrades between Midpoint and Boise.
12.0 Description of Operating Requirements
In addition to these upgrades and the restrictions described in Section 7, there are several other
operating requirements that must be met. Voltage flicker at startup and during operation will be
limited to less than 5% as measured at the point of interconnection. Also, the project is required
to comply with the applicable Voltage and Current Distortion Limits found in IEEE Standard
519-1992 IEEE Recommended Practices and Requirements/or Harmonic Control in Electrical
Power Systems.
The Lava Beds project may also be added to the Borah West RAS (remedial action scheme) as
IPC generation available to be tripped for major system disturbances.
OFFICIAL USE ONLY
This repOi t contains Idaho Power Company Critical Energy Infrastructure Infonnation (CEll). Distribution ofthis report must be limited to parties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P a g: e 17/10
13.0 Conclusions
The requested interconnection of the Lava Beds Wind Park to Idaho Power's system was studied.
The results of this work indicate that upgrades will have to be made to the local area protection
system to accept 18 MW of Wind generation (Generation Interconnection package, and Islanding
Prevention protection upgrades). The interconnection customer will have to work through IPes
Power Supply Group to determine the extent of network transmission upgrades required to
accept the Lava Beds generation onto the bulk electrical system. The estimated costs of the
modifications required, excluding potential network transmission upgrades, are listed in Section
11.0 of this report. These are estimated costs only and final charges to the customer will be
based on the actual construction costs incurred.
Next, a facility study will be required to look at the requirements from a construction standpoint.
Details about the changes to be made will yield a much more detailed and thorough cost
estimate.
OFFICIAL USE ONLY
This report contains Idaho Power Company Critical Energy l,lfi"asb"ucture Infollnation (CElI)_ Disn-ibution ofthis repOit must be limited to paIties that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know~
P n g ~ 18/10
\
APPENDIX A
A-1.0 Method of Study
The Feasibility Study plan inserts the Project up to the maximum requested injection into the
selected Western Electric Coordinating Council (WECC) power flow case and then, using GE's
Positive Sequence Load Flow (PSLF) analysis tools or Power World Simulator, examines the
impacts of the new resource on Idaho Power's system (lines, transformers, etc.) within the study
area under various operating/outage scenarios. The WECC and Idaho Power reliability criteria
and Idaho Power operating procedures were used to determine the acceptability of the
configurations considered. The WECC case is a recent case modified to simulate stressed but
reasonable pre-contingency energy transfers utilizing the IPC system. For distribution feeder
analysis, Idaho Power utilizes Advantica's SynerGEE software.
A-2.0 Acceptability Criteria
The following acceptability criteria were used in the power flow analysis to determine under
which system configuration modifications may be required:
The continuous rating of equipment is assumed to be the normal thermal rating of the
equipment. This rating will be as determined by the manufacturer of the equipment or as
determined by Idaho Power. Less than or equal to 100% of continuous rating is
acceptable.
Idaho Power's Voltage Operating Guidelines were used to determine voltage
requirements on the system. This states, in part, that distribution voltages, under normal
operating conditions, are to be maintained within plus or minus 5% (0.05 per unit) of
nominal everywhere on the feeder. Therefore, voltages greater than or equal to 0.95 pu
voltage and less than or equal to 1.05 pu voltage are acceptable.
Voltage flicker during starting or stopping the generator is limited to 5% as measured at
the point of interconnection, per Idaho Power's T &D Advisory Information Manual.
Idaho Power's Reliability Criteria for System Planning was used to determine proper
transmission system operation.
All customer generation must meet IEEE 519 and ANSI C84.1 Standards.
All other applicable national and Idaho Power standards and prudent utility practices
were used to determine the acceptability ofthe configurations considered.
The stable operation of the system requires an adequate supply of volt-amperes reactive
(VARs) to maintain a stable voltage profile under both steady-state and dynamic system
OFFICIAL USE ONL Y
This report contains Idaho Power Company Critical Energy lnti·astructure Infonnation (CEil). Distribution of this repoll must be limited to pallies that have
entered into a non-disclosure agreement with Idaho Power Company and have a need to know.
P 11 g <: 19/10
conditions. An inadequate supply ofVARs will result in voltage decay or even collapse
under the worst conditions.
Equipment/line/path ratings used will be those that are in use at the time of the study or that are
represented by IPC upgrade projects that are either currently under construction or whose
budgets have been approved for construction in the near future. All other potential future ratings
are outside the scope of this study. Future transmission changes may, however, affect current
facility ratings used in the study.
A-3.0 Grounding Guidance
Idaho Power Company (JPC) requires interconnected transformers to limit their ground fault
current to 20 amps at the point of interconnection.
A-4.0 Electrical System Protection Guidance
IPC requires electrical system protection per Requirements for Generation Interconnections
found on the Idaho Power Web site,
http://www.idahopower.com/aboutus/bus ines / generationInterconnect/.
A-S.O WECC Coordinated Off-Nominal Frequency Load Shedding and Restoration
Requirements
IPC requires frequency operational limits to adhere to WECC Under-frequency and Over­
frequency Limits per the WECC Coordinated Off-Nominal Frequency Load Shedding and
Restoration Requirements available upon request.
OFFICIAL USE ONLY
This repOli contains Idaho Power Company Ctitical Energy Infi'astructut'e InfmIDation (CEil). Distribution of this report must be limited to patties that have
entered into a non~disclosure agreement with Idaho Power Company and have a need to know.
P a g t: 110110
"
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 11
Facilities Study Agreement
THIS AGREEMENT is made and entered into this ~ day O(JP_J:~~2009 by and
between ~ft 1/BJe.iof"'YJeJ,.J-· C; {\,,-p of /J.."L:,. ,a i"1Il<---k..l (,s/,dt!y Coc"'fXhY
organized aIliti {sting under the laws of the State of lrJ,J ... ~ , ("Interconnection
Customer,") and Idaho Power Company, a Corporation existing under the laws of the State of
Idaho ("Transmission Provider"). Interconnection Customer and Transmission Provider each
maybe referred to as a "Party," or collectively as the "Pa11ies."
RECITALS
WHEREAS, the Interconnection Customer is proposing to develop a Small Generating Facility
or generating capacity addition to an existing Small Generating Facility consistent with the
Interconnection Request completed by the Interconnection Customer on December 19, 2005, and
WHEREAS, the Interconnection Customer desires to interconnect the Small Generating Facility
with the Transmission Provider's Transmission System~
WHEREAS, the Transmission Provider has completed a system impact studY,and provided the
results of said study to the Interconnection Customer; and
WHEREAS, the Interconnection Customer has requested the Transmission Provider to perform
a facilities study to specify and estimate the cost of the equipment, engineering, procurement and
construction work needed to implement the conclusions of the system impact study in
accordance with Good Utility Practice to physically and electrically connect the Small
Generating Facility with the Transmission Provider's Transmission System.
NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein
the Parties agreed as follows:
1.0 When used in this Agreement, with initial capitalization, the terms specified shall have
the meanings indicated or the meanings specified in the standard Small Generator
Interconnection Procedures.
2.0 The Interconnection Customer elects and the Transmission Provider shall cause a
facilities study consistent with the standard Small Generator Interconnection Procedures
to be perfonned in accordance with the Open Access Transmission Tariff.
3.0 The scope of the facilities study shall be subject to data provided in Attachment A to this
Agreement.
4.0 The facilities study shall specify and estimate the cost of the equipment, engineering,
procurement and construction work (including overheads) needed to implement the
conclusions of the system impact study(s).
The facilities study shall also identify (1) the electrical switching configuration of the
equipment, including, without limitation, transformer, switchgear, meters, and other
station equipment, (2) the nature and estimated cost of the Transmission Provider's
Small Generator Facilities Study Agreement -1 -Lava Beds Wind Project #156
Interconnection Facilities and Upgrades necessary to accomplish the interconnection, and
(3) an estimate of the time required to complete the construction and installation of such
facilities.
5.0 The Transmission Provider may propose to group facilities required for more than one
Interconnection Customer in order to minimize facilities costs through economies of
scale, but any Interconnection Customer may require the installation of facilities required
for its own Small Generating Facility ifit is willing to pay the costs of those facilities.
6.0 A deposit of $30,000 is due upon execution of this agreement by the Interconnection
customer.
7.0 In cases where Upgrades are required, the facilities study must be completed within 45
Business Days of the receipt of this Agreement. In cases where no Upgrades are
necessary and the required facilities are limited to Interconnection Facilities, the facilities
study must be completed within 30 Business Days.
8.0 Once the facilities study is completed, a facilities study report shall be prepared and
transmitted to the Interconnection Customer. Barring unusual circumstances, the
facilities study must be completed and the facilities study report transmitted within 30
Business Days ofthe Interconnection Customer's agreement to conduct a facilities study.
9.0 Any study fees shall be based on the Transmission Provider's actual costs and will be
invoiced to the Interconnection Customer after the study is completed and delivered and
will include a summary of professional time.
10.0 The Interconnection Customer must pay any study costs that exceed the deposit without
interest within 30 calendar days on receipt of the invoice or resolution of any dispute. If
the deposit exceeds the invoiced fees, the Transmission Provider shall refund such excess
within 30 calendar days of the invoice without interest.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their
duly authorized officers or agents on the day and year first above written.
Transmission Provider:
Idaho Power Comp-any -Delivery
Signed: ::;;tL(J ~ A
. L (/' Pnnted Name: CDlr),4f?J) f\r.Y~Y/2l}re.
Title: PM ~A..;" y A-t;:0 • I
10/Lo/0 9
Small Generator Facilities Study Agreement - 2 -
Interconnection Customer:
--&&J~* ~4 \ot~~.l
Signed~~ •
Rrinted Name: :(\CVl'1J,..S =t. {}y/J,u}IS
Title: Jjt}'l21 f1t-.J 171 L 01 b~
Lava Beds Wind Project #156
Attachment A to
Facilities Study Agreement
Data to Be Provided by the Interconnection Customer
With the Facilities Study Agreement
I. Provide location plan and simplified one-line diagram of the plant and station facilities.
For staged projects, please indicate future generation, transmission circuits, etc.
On the one-line diagram, indicate the generation capacity attached at each metering
location. (Maximum load on CT/PT) l g Vl'l~.J ."J r(....\\ c,)e\'~e.<"-.} le'-'
On the one-line diagram, indicate the location of auxiliary power. (Minimum load on
CT IPT) Amps <] .' + I
r;;--..c"'i) k vv W\,',.!&\ 3el,\exc; ie'" 15 Olou\f\
2. One set of metering is required for each generation connection to the new ring bus or
existing Transmission Provider station. Number of generation connections:
L
3. Will an alternate source of auxiliary power be available during CT/PT maintenance?
Yes No K
4. Will a transfer bus on the generation side of the metering require that each meter set be
designed for the total plant generation? Yes No X
(Please indicate on the one-line diagram).
5. What type of control system or PLC will be located at the Small Generating Facility?
~C\..WVl~Y\tl H-5 'fC,hrv;",ble. L~ it. C"""-{-(",,,Uer (PLC)
6. What protocol does the control system or PLC use?
'Ix \Vor So ,5'1s~eV'~ w~.lJ,\
7. Please provide a 7.S-minute quadrangle map of the site, Indicate the plant, station,
transmission line, and property lines.
8. Physical dimensions of the proposed interconnection station:
Small Generator Facilities Study Agreement -3 -Lava Beds Wincl Project # 156
9. Bus length from generation to interconnection station:
• i ll'
10. Line length from interconnection station to Transmission Provider's Transmission
System.
II. Tower number observed in the field. (Painted on tower leg)*:
12. Number of third party easements required for transmission Iines*:
* To be completed in coordination with Transmission Provider.
13. Is the Small Generating Facility located in Transmission Provider's service area?
Yes X No __ ff No, please provide name of local provider:
14. Please provide the following proposed schedule dates:
Begin Construction
Generator Step-Up Transformers
Receive Back Feed Power
Generation Testing
Commercial Operation
Small Generator Facilities Study Agreement - 4 -
Date: _O_c_·\-o_,,0_e.._I ______ _
Date: TDt\f\"v\O\(J --------'/~----------------
Date: _f_e._b_riA_'i....:. .. ~'1.L_ ______ _
Date: M~(C~ ------~~---------------
Lava Beds \,vind Project #156
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 12
DRAFT
Generator Interconnection
Facility Study Report
for the
Lava Beds Wind Project -GI #156
for
Exergy Development Group of Idaho, LLC
In
Bingham County, ID
5/9/11
An IDACORP Company
DRAFT -FACILITY STUDY REPORT (FSR)
Lava Beds
Project #156
5/9111
1. General Facility Description
The proposed project will consist of Idaho Power's standard 4 pole overhead generation
interconnection package. The location of the project is in sections 14,22,23,26,27,34 and 35 of
TIS, R32E and sections 2 and 3 ofT2S, R32E in Idaho Power's eastern service ten·itory in Bingham
County, Idaho. It connects to the 34.SkV system out of Idaho Power Company's Haven substation.
The total project output is 18 MW.
Interconnection Customer:
James Carkulis
Exergy Development Group of Idaho, LLC
802 W. Bannock, Suite 1200
Boise
Idaho
A Standard Generator Interconnection Agreement under Idaho Power Company's Open Access
Transmission Tariff (OATT) or Schedule 72 between Interconnection Customer and Idaho Power
Company -Delivery (Transmission Owner) for the Lava Beds Project, specifically Generator
Interconnection Project # 156, will be prepared for this project.
1.1 Interconnection Point
The Interconnection Point for the Lava Beds Project will be the Generator side of Idaho Power's
X discQnnect switch in the interconnection package. The project's location is 800N and 1900W
in Bingham County, Idaho. A drawing identifying the Point ofInterconnection is attached.
1.2 Point of Change of Ovmership
The Point of Change of Ownership for the Lava Beds Project will be the Generator side of Idaho
Power's X disconnect in the interconnection package.
1.3 Customer's Interconnection Facilities
The Interconnection Customer will install twelve GE 1.SMW wind turbines, the Power collector
system to, and including the step-up tranSf0l111er(s), appropriate grounding measures and
associated auxiliary equipment. Interconnection customer will build facilities to the Point of
Change of Ownership for the generator facility.
1
1.4 Other Facilities Provided by Interconnection Customer
1.4.1 Telecommunications
In addition to communication circuits that may be needed by the Interconnection
Customer, the Interconnection Customer shall provide the following communication
circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for querying the revenue
meter at the generation interconnection site.
2. One leased DDS (Digital Data Service) circuit for SCADA between the generation
interconnection site and Idaho Power's Pocatello Service Building (301 E. Benton
Street, Pocatello, ID 83201). This circuit must operate at 19.2 kbps data rate or
higher. Please note that Frame Relay service is not acc.eptable.
The Interconnection Customer is required to coordinate with a communications provider
to provide the communications circuits and pay the associated one time setup and
periodic charges. The communication circuits will need to be installed and operational
prior to generating into Idaho Power system. Note that installation by communications
provider may take several months and should be ordered in advance to avoid delaying the
project. If the cOIlUIiunication circuit types listed above are not available at the site by a
communications provider, the Interconnection Customer shall confer with Idaho Power.
If high voltage protection is required by the communications provider for the incoming
communications provider cable, the high voltage protection assembly shall be engineered
and supplied by the Interconnect Customer. Options are available for indoor or outdoor
mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for trouble-shooting ofIdaho
Power owned equipment.
1.4.2 Ground Fault Equipment
The Interconnection Customer will install transfonner configurations that are
Grounded WYE on the high side and will limit the contribution of ground fault
current to 20 amps or less at the Interconnection Point.
1.4.3 Easements
The Interconnection Customer will provide to IPCO a surveyed (Metes & Bounds)
legal description along with exhibit map for IPCO's facilities. After the legal
description has been delivered to IPCO for review, IPCO will supply to the
Interconnection Customer a completed IPCO easement for signature by the land
owner of record. Once the signatures have been secured, the Interconnection
Customer will return the signed easement to IPCO for recording.
1.4.4 Generator Output Limit Control
The Interconnection Customer will install equipment to receive signals from Idaho
Power Grid Operations for Generation Output Limit Control ("GOLC") -see Section
3 Operating Requirements.
1.4.5 Local Service
The Interconnection Customer is responsible to arrange for local service to their site,
as necessary.
2
1.5 Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to
distribution feeder HA VN042. If the Interconnection customer is going underground to the
Interconnection Point, Idaho Power will include a pole riser for the Generator to install
cables to interconnect to the Idaho Power system. If the interconnection customer is going
overhead to the Interconnection Point, it will be at a tension not to exceed the design tension
specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transfOlmer, solid blade disconnects, primary metering package, recloser, relays, fuses and
riser necessary for the package. The interconnection will be controlled by a SEL-311 C
protection relay. The relay will be located in a pole mounted enclosure and will also contain
a test switch (TS4), SLSS, dialup modem, 202 modem, isolation interface, power supply, DC
converter, control switch and surge protector.
Facility Estimated Cost:
The following good faith estimates are provided in 2011 dollars:
nterco1t1lectio1t Facilities:
Overhead Genel'B~on Interconnection p.~ckage _ ___ Jlpe
j __ SUBTOTAL!
e..e! §~c-tio-n-6-'~; thi! _Project-Gra-n-d-T-ot-a-l _-~~. -__ .-J:.
2. Milestones
!
I
'· .
--l
$225,000:
$225,0001 --_. '\
1----___ TB~ 10 nstruction Funds Received by IPCO ______ _
6 Months after Construction jIPCO Construction Complete j
Funds Received by IPCO :
2 Weeks afierIPCO Cons~ction fPCO CO~lmissioning Complete ----------~'--------l
~~~ I I -. l ------,
, TBD _by seller [Commercial Operation. Date __ ._ _ ____ !
1---_____ . __ .. , ___ -_ ~_-=~_=_~ _______ . _ .. __ . ____ l
3. Operating Requirements
Voltage flicker at startup and during operation must be limited to less than 5% as measured at the
Point of Interconnection. The project is required to comply with the applicable Voltage and Current
Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and
requirements/or harmonic Control in Electrical Power Systems.
Lava Beds Wind Project will be subject to reductions directed by Idaho Power Grid Operations
during transmission system contingencies. When outages occur, the Project will be subject to
Generator Output Limit Control ("GOLC") and will have equipment capable ofreceiving an analog
setpoint, via DNP 3.0 from Idaho Power for GOLC, Generator Output Limit Control will be a
3
4.
5.
setpoint from Idaho Power to the Project indicating maximum output allowed during transmission
contingencies.
Interconnection Customer will be able to modify power plant facilities on the Interconnection
Customer side of the Point of Interconnection with no impact upon the operation of the transmission
or distribution system whenever the generation facilities are electrically isolated from the system via
the X disconnect switch and a tenninal clearance is issued by Idaho Power Company's Grid
Operator.
Reactive Power
Lava Beds Wind Project should be controlled to operate as a VAR neutral system with a ± 300
kV AR operating band.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent section of the power system without
tripping due to low voltage. The Project must be capable ofremaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
6. Upgrades
6.1 Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local
service transfOlmer on the feeder side of the substation breaker for hot-line check. Idaho Power
will also install a transfer trip scheme via SCADA at Haven Substation.
Esti mated Costs
The following good faith estimates are provided in 2011 dollars:
Estimated Cost:
i/llterc01mection Facilities: t • -I I ;Overhead Generation Interconnection Package r ---
:Substation Upgralles:
:LTC Upgrade
!Local S.~rvice Tr~nsf0l111erzTl:ans~r ~rip
IPC
TOTAL ,.
I
TOTAL:
GRAND TOTAL $257,000---~~~--~~--
4
$225 000\
$225,000!
$;000;
$~O,OOO.
$32,000:
Note Regarding Transmission Service:
This Facility Study is a Network Resource Interconnection Facility Study. This study identifies the
facilities necessary to integrate the Generating Facility into Idaho Power's network to serve load within
Idaho Power's balancing area. Network Resource Interconnection Service in and of itself does not
convey any right to deliver electricity to any specific customer or Point of Delivery.
5
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY •
ATTACHMENT 13
Generator Interconnection
Facility Study Report
for the
Lava Beds Wind Project-GI #156
for
Exergy Developm~nt Group of Idaho, LLC
III
Bingham County, ID
6/9/11
~i lDAHO ~POWER®
An IDACORP Company
FACILITY STUDY REPORT (FSR)
Lava Beds
Project #156
6/9/11
1. General Facility Description
The proposed project will consist of Idaho Power's standard 4 pole overhead generation
interconnection package. The location of the project is in sections 14,22,23,26,27,34 and 35 of
TIS, R32E and sections 2 and 3 ofT2S, R32E in Idaho Power's eastern service territory in Bingham
County, Idaho. It connects to the 34.5kV system out of Idaho Power Company's Haven substation.
The total project output is 18 MW.
Interconnection Customer:
James Carkulis
Exergy Development Group of Idaho, LLC
802 W. Bannock, Suite 1200
Boise Idaho
A Standard Generator Interconnection Agreement under Idaho Power Company's Open Access
Transmission Tariff (OATT) or Schedule 72 between Interconnection Customer and Idaho Power
Company -Delivery (Transmission Owner) for the Lava Beds Project, specifically Generator
Interconnection Project # 156, will be prepared for this project.
1.1 Interconnection Point
The Interconnection Point for the Lava Beds Project will be the Generator side ofIdaho Power's
X disconnect switch in the interconnection package. The project's location is 800N and 1900W
in Bingham County, Idaho. A drawing identifying the Point of Interconnection is attached.
1.2 Point of Change of Ownership
The Point of Change of Ownership for the Lava Beds Project will be the Generator side of Idaho
Power's X disconnect in the interconnection package.
1.3 Customer's Interconnection Facilities
The Interconnection Customer will install twelve GE 1.5MW wind turbines, the Power collector
system to, and including the step-up transformer(s), appropriate grounding measures and
associated auxiliary equipment. Interconnection customer will build facilities to the Point of
Change of Ownership for the generator facility.
1.4 Other Facilities Provided by Interconnection Customer
1.4.1 Telecommunications
In addition to communication circuits that may be needed by the Interconnection
Customer, the Interconnection Customer shall provide the following communication
circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for querying the revenue
meter at the generation interconnection site.
2. One leased DDS (Digital Data Service) circuit for SCADA between the generation
interconnection site and Idaho Power's Pocatello Service Building (301 E. Benton
Street, Pocatello, ID 83201). This circuit must operate at 19.2 kbps data rate or
higher. Please note that Frame Relay service is not acceptable.
The Interconnection Customer is required to coordinate with a communications provider
to provide the communications circuits and pay the associated one time setup and
periodic charges. The communication circuits will need to be installed and operational
prior to generating into Idaho Power system. Note that installation by communications
provider may take several months and should be ordered in advance to avoid delaying the
project. If the communication circuit types listed above are not available at the site by a
communications provider, the Interconnection Customer shall confer with Idaho Power.
If high voltage protection is required by the communications provider for the incoming
communications provider cable, the high voltage protection assembly shall be engineered
and supplied by the Interconnect Customer. Options are available for indoor or outdoor
mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for trouble-shooting of Idaho
Power owned equipment.
1.4.2 Ground Fault Equipment
The Interconnection Customer will install transformer configurations that are
Grounded WYE on the high side and will limit the contribution of ground fault
current to 20 amps or less at the Interconnection Point.
1.4.3 Easements
The Interconnection Customer will provide to IPCO a surveyed (Metes & Bounds)
legal description along with exhibit map for IPCO's facilities. After the legal
description has been delivered to IPCO for review, IPCO will supply to the
Interconnection Customer a completed IPCO easement for signature by the land
owner of record. Once the signatures have been secured, the Interconnection
Customer will return the signed easement to IPCO for recording.
1.4.4 Generator Output Limit Control
The Interconnection Customer will install equipment to receive signals from Idaho
Power Grid Operations for Generation Output Limit Control ("GOLC") -see Section
3 Operating Requirements.
1.4.5 Local Service
The Interconnection Customer is responsible to arrange for local service to their site,
as necessary.
2
1.5 Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to
distribution feeder HA VN042. If the Interconnection customer is going underground to the
Interconnection Point, Idaho Power will include a pole riser for the Generator to install
cables to interconnect to the Idaho Power system. If the interconnection customer is going
overhead to the Interconnection Point, it will be at a tension not to exceed the design tension
specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and
riser necessary for the package. The interconnection will be controlled by a SEL-311 C
protection relay. The relay will be located in a pole mounted enclosure and will also contain
a test switch (TS4), SLSS, dialup modem, 202 modem, isolation interface, power supply, DC
converter, control switch and surge protector.
Facility Estimated Cost:
The following good faith estimates are provided in 2011 dollars:
IInterconnection Facilities: I I~~""d"q~neration Interconn~ction Package .. IIPC ____ --t ____ ....:.$_2_2~,OOO
SUBTOTALI __ --$22~,OOO
!See Section 6 for the Project Gra~d i~tal.__ . _____ ----" ______ .
2. Milestones
Months after Construction
Received by IPCO __
Weeks after IPCO Construction Complete
~------------------------TBD by seller
3. Operating Requirements
IIPCO Construction Complete
I . --I PCO Co;;;mts;ioning C-o-m-'P-le-te--------'
ICommercial Operation Date
----------------~
Voltage flicker at startup and during operation must be limited to less than 5% as measured at the
Point oflnterconnection. The project is required to comply with the applicable Voltage and Current
Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and
requirements for harmonic Control in Electrical Power Systems.
Lava Beds Wind Project will be subject to reductions directed by Idaho Power Grid Operations
during transmission system contingencies. When outages occur, the Project will be subject to
Generator Output Limit Control ("GOLC") and will have equipment capable of receiving an analog
setpoint, via DNP 3.0 from Idaho Power for GOLC. Generator Output Limit Control will be a
setpoint from Idaho Power to the Project indicating maximum output allowed during transmission
contingencies.
3
4.
Interconnection Customer will be able to modify power plant facilities on the Interconnection
Customer side of the Point of Interconnection with no impact upon the operation of the transmission
or distribution system whenever the generation facilities are electrically isolated from the system via
the X disconnect switch and a terminal clearance is issued by Idaho Power Company's Grid
Operator.
Reactive Power
Lava Beds Wind Project should be controlled to operate as a VAR neutral system with a ± 300
k V AR operating band.
5. Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent section of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
6. Upgrades
6.1 Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local
service transformer on the feeder side of the substation breaker for hot-line check. Idaho Power
will also install a transfer trip scheme via SCADA at Haven Substation.
Estimated Costs
The following good faith estimates are provided in 2011 dollars:
Estimated Cost:
Interconnection Facilities:
\overhead Generati~ Inte=-=-rc-=o=-=-nn-e-c-ti-on-p-aC-k-a_g-_e-_-_-_-
r~bs;a~ion Upgrades:
ILT~ U~S!:~~ _____ _
Local Service Transformer/Transfer T riL ,-=-~-l
I
_ [PC $225,0001
TOTAL
-,
$225,00°1 I - -I
IPe J.~?-O.9.9! 0--, IPe $30,000
TOTAL: I $3~,000 I
GRAND TO TAL I I $~57,0001
Note Regarding Transmission Service:
This Facility Study is a Network Resource Interconnection Facility Study. This study identifies the
facilities necessary to integrate the Generating Facility into Idaho Power's network to serve load within
Idaho Power's balancing area. Network Resource Interconnection Service in and of itself does not
convey any right to deliver electricity to any specific customer or Point of Delivery.
4
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 14
llICHARDSON & Q'LEARY. PUC
ATTORNEYS AT LAW
Peter Richardson
T~l: 208·938·7901 Fa: 208·938·7904
p ~te r@rich"dsonandoleary.com
P.O. Bolt 7218 Boise. 10 83707 • ~1~ N. 27th St. Boisc.lD 83702
June 30, 2011-HAND DELIVERY
Donovan Walker, Lead Counsel
Idaho Power Company
1221 West Idaho St.
Boise, Idaho 83702
Re: Notch Butte Wind Project and Lava Beds Wind Project Progress
Dear Donovan:
I am writing to provide you \\oith an update on the progress Exergy Development Group
of Idaho is making on bringing these projects on line. As you know, the original on line
date was extended for these projects to September of2010. As the agreement has a ten
month 'grace period' the default commercial on line date looks to be July 1, 2011.
Assuming the project does not meet the default commercial on line date by July first, the
project is allowed to cure if it can do so in a commercially reasonable time. See
Paragraphs 5 and 22 of the power purchase agreements.
Exergy anticipates these projects will reach their commercial on line date by the end of
this year. In order to achieve that goal, it is planning on beginning construction in
approximately forty-five days. All of the normal near-term pre construction activity is
fully underway and Exergy sees no roadblocks to its successfully bringing these projects
on line pursuant to a slightly modified time line from that contained in the Power
Purchase Agreement.
I just wanted to advise you of the progress that is being made to achieve commercial
operations within a reasonable time of the deadline contained in the power purchase
agreements. If you would like to discuss or if you disagree with the conclusion that
Exergy is, indeed making commercially reasonable efforts to achieve commercial
operations please give me a call so we can discuss in more detail.
~ine~IY y~~ __ -_
r Richardson, ISB # 3195
RICHARDSON & O'LEARY PL
Cc: Randy Allphin
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 15
James Carkulis
Exergy Development Group of Idaho, LLC
802 W. Bannock, Suite 1200
Boise, ID 83702
Re: Lava Beds Wind Project -GI #156
Dear James:
An IDACO~P Company
July 28,2011
Via email & Certified Mail# 70090820000123019237
Attached please find a copy of the final Facility Study Report (FSR) and a draft Generator
Interconnection Agreement (GIA) for your Generator Interconnection project. This Agreement is part of
Idaho Power Company's Rate Schedule 72 tariff approved by the Idaho Public Utilities Commission
(IPUC). The IPUC has the authority to review and modify these schedules periodically. You may view
the most current tariff at Idaho Power's website at:
http://www.idahopower.com/aboutuslregulatoryinfo/tari.ffs.asp .
Under the Generator Interconnection process, the following items must be provided to me on or before
execution of the GIA:
Proof of Site Control for the project
Financial arrangements! construction funding
Although the preferred method of funding is full deposit upfront; payment arrangements may be
requested. If you have not already done so, please contact Aubrae Sloan (208-388-5697), Operations
Finance at your earliest convenience to discuss Idaho Power's credit requirements for construction
funding. Once we receive funding, or the credit requirement is met, we can proceed with construction of
the project. The actual construction and labor charges will be reconciled approximately 90 days
subsequent to project completion.
You may have noticed that we have drafted the GIA Attachments based on the enclosed Final Facility
Study Report. Please review the Attachments to make sure they are comprehensive and accurate and
advise me of any changes as soon as possible. Failure to respond to this letter by August 28, 2011 will
cause your Generator Interconnection request to have been deemed withdrawn and tenninated. If you
have any further questions, please don't hesitate to contact me at 208.388.2658.
EncI: Final Facility Study Report
draft GIA for Lava Beds Wind Project # 156
Cc: (via email) Dustin Shive1ylExergy
Lisa LoomislIPC
Rich BauerlIPC
Aubrae SloanllPC
Randy AUphinlIPC
Sincerely,
'1
( Ozthlllt..
Rowena Bishop
Operations Analyst
P.O Box 70 (83707)
1221 W Idaho St
Boise, 10 83702
James Carkulis
Exergy Development Group of Idaho, LLC
802 W. Bannock, Suite 1200
Boise,ID 83702
Re: Lava Beds Wind Project -GI Project # 156
Dear Mr. Carkulis:
July 28,2011
IDAHO POWER®
An IDACORP Company
Attached please find a Final Facility Study Report (FSR). I am available to discuss the FSR, and
begin Construction arrangements for the project.
The final report will be used to prepare a draft Generator Interconnection Agreement in
preparation for Construction. Rowena Bishop will be working with you to finalize the
Interconnection Agreement.
Before we can begin Construction or order materials, you are responsible for contacting Idaho
Power's credit department to discuss credit requirements for construction funding. Please
contact Aubrae Sloan (208-388-5697) at your earliest convenience. Once we receive funding, or
the credit requirement is met, we can proceed with construction of the project.
The actual construction and labor charges will be finalized approximately 90 days subsequent to
project completion. We will reconcile any over-or underpayment at that time.
I look forward to hearing from you soon.
Sincerely,
Lisa Loomis
Project Leader
Attachment: Lava Beds Wind Project Final Facility Study Report with Drawings
Cc: R Bishop/IPC
A Sloan/IPC
Generator Interconnection
Facility Study Report
for the
Lava Beds Wind Project -GI #156
for
Exergy Development Group of Idaho, LLC
ill
Bingham County, ID
7/28/11
An IDACORP Company
FACILITY STUDY REPORT (FSR)
Lava Beds
Project #156
7/28/11
1. General Facility Description
The proposed project will consist of Idaho Power's standard 4 pole overhead generation
interconnection package. The location of the project is in sections 14,22,23,26,27,34 and 35 of
TIS, R32E ap.d sections 2 and 3 ofT2S, R32E in Idaho Power's eastern service territory in Bingham
County, Idaho. It connects to the 34.5kV system out of Idaho Power Company's Haven substation.
The total project output is 18 MW.
Interconnection Customer:
James Carkulis
Exergy Development Group of Idaho, LLC
802 W. Bannock, Suite 1200
Boise
Idaho
A Standard Generator Interconnection Agreement under Idaho Power Company's Open Access
Transmission Tariff (OA TT) or Schedule 72 between Interconnection Customer and Idaho Power
Company -Delivery (Transmission Owner) for the Lava Beds Project, specifically Generator
Interconnection Project # 156, will be prepared for this project.
1.1 Interconnection Point
The Interconnection Point for the Lava Beds Project will be the Generator side of Idaho Power's
X disconnect switch in the interconnection package. The project's location is 800N and 1900W
in Bingham County, Idaho. A drawing identifying the Point of Interconnection is attached.
1.2 Point of Change of Ownership
The Point of Change of Ownership for the Lava Beds Project will be the Generator side of Idaho
Power's X disconnect in the interconnection package.
1.3 Customer's Interconnection Facilities
The Interconnection Customer will install twelve GE 1.5MW wind turbines, the Power collector
system to, and including the step-up transformer(s), appropriate grounding measures and
associated auxiliary equipment. Interconnection customer will build facilities to the Point of
Change of Ownership for the generator facility.
1
1.4 Other Facilities Provided by Interconnection Customer
1.4.1 Telecommunications
In addition to communication circuits that may be needed by the Interconnection
Customer, the Interconnection Customer shall provide the following communication
circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for querying the revenue
meter at the generation interconnection site.
2. One leased DDS (Digital Data Service) circuit for SCADA between the generation
interconnection site and Idaho Power's Pocatello Service Building (301 E. Benton
Street, Pocatello, ID 83201). This circuit must operate at 19.2 kbps data rate or
higher. Please note that Frame Relay service is not acceptable.
The Interconnection Customer is required to coordinate with a communications provider
to provide the communications circuits and pay the associated one time setup and
periodic charges. The communication circuits will need to be installed and operational
prior to generating into Idaho Power system. Note that installation by communications
provider may take several months and should be ordered in advance to avoid delaying the
project. If the communication circuit types listed above are not available at the site by a
communications provider, the Interconnection Customer shall confer with Idaho Power.
Ifhigh voltage protection is required by the communications provider for the incoming
communications provider cable, the high voltage protection assembly shall be engineered
and supplied by the Interconnect Customer. Options are available for indoor or outdoor
mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for trouble-shooting of Idaho
Power owned equipment.
1.4.2 Ground Fault Equipment
The Interconnection Customer will install transformer configurations that are
Grounded WYE on the high side and will limit the contribution of ground fault
current to 20 amps or less at the Interconnection Point.
1.4.3 Easements
The Interconnection Customer will provide to IPCO a surveyed (Metes & Bounds)
legal description along with exhibit map for IPCO's facilities. After the legal
description has been delivered to IPCO for review, IPCO will supply to the
Interconnection Customer a completed IPCO easement for signature by the land
owner of record. Once the signatures have been secured, the Interconnection
Customer will return the signed easement to IPCO for recording.
1.4.4 Generator Output Limit Control
The Interconnection Customer will install equipment to receive signals from Idaho
Power Grid Operations for Generation Output Limit Control ("GOLC") -see Section
3 Operating Requirements.
1.4.5 Local Service
The Interconnection Customer is responsible to arrange for local service to their site,
as necessary.
2
1.5 Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to
distribution feeder HA VN042. If the Interconnection customer is going underground to the
Interconnection Point, Idaho Power will include a pole riser for the Generator to install
cables to interconnect to the Idaho Power system. If the interconnection customer is going
overhead to the Interconnection Point, it will be at a tension not to exceed the design tension
specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and
riser necessary for the package. The interconnection will be controlled by a SEL-311 C
protection relay. The relay will be located in a pole mounted enclosure and will also contain
a test switch (TS4), SLSS, dialup modem, 202 modem, isolation interface, power supply, DC
converter, control switch and surge protector.
Facility Estimated Cost:
The following good faith estimates are provided in 2011 dollars:
__ ~~ __________ ~~~~ __ ~ __ ~w-________ ~ __ ~O~w~ne_~_h~I~ __ ~ ___ ComEstim~at~e __ ~
I
lnterconnection Facilities: -_.----.--------~ .. --------------------_._-----,
IPC _______ ;---. ____ $~~~OOO;
_S~_1J1i_V_T~ _________ -'-_______ ~~~_5,09~
----_.---.--------
2. Milestones
Date Milestones -....... -= ........ -~
TBD ~onstntction Funds Received by IPCO '--___ ~ _ _ __ *_ _ __ ._ . _~ ____________ 4 ______________ • __ ... _ • __ • ___ • __ • _____ _
:6 Months after Construction CO Construction Complete Pun<!~ ~~ce~v_e~ by E~O___ _1.__ __ _ _ __ _ __ _ __
'2 Weeks after IPCO Construction IPCO Commissioning Complete
--------.--.. -. -,---.. ----,
QOlll:e1ete __ . ____ -------{--.. ---.--__ -.-_ --._-
I TBDby seller ~Commercial Operation Date -___ .. _ .. -__ ~_.--I
3. Operating Requirements
Voltage flicker at startup and during operation must be limited to less than 5% as measured at the
Point of Interconnection. The project is required to comply with the applicable Voltage and Current
Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and
requirements for harmonic Control in Electrical Power Systems.
Lava Beds Wind Project will be subject to reductions directed by Idaho Power Grid Operations
during transmission system contingencies. When outages occur, the Project will be subject to
Generator Output Limit Control ("GOLC") and will have equipment capable of receiving an analog
setpoint, via DNP 3.0 from Idaho Power for GOLC. Generator Output Limit Control will be a
3
4.
5.
setpoint from Idaho Power to the Project indicating maximum output allowed during transmission
contingencies.
Interconnection Customer will be able to modify power plant facilities on the Interconnection
Customer side of the Poirit of Interconnection with no impact upon the operation of the transmission
or distribution system whenever the generation facilities are electrically isolated from the system via
the X disconnect switch and a terminal clearance is issued by Idaho Power Company's Grid
Operator.
Reactive Power
Lava Beds Wind Project should be controlled to operate as a V AR neutral system with a ± 300
kV AR operating band.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent section of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
6. Upgrades
6.1 Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local
service transformer on the feeder side of the substation breaker for hot-line check. Idaho Power
will also install a transfer trip scheme via SCADA at Haven Substation.
Estimated Costs
The following good faith estimates are provided in 2011 dollars:
Estimated Cost:
Interconnection Facilities:
~ub~~ti~n_ Upgr~d~~_
!--TC_~~a_de__ _ _ .
------
'Loc~l §ervic~ Tr~sformer/Transfer Trip
ewnershl
IPC
,IPC
TOTAL
GRAND TOTAL $257,000 =-~~----~~~~
4
Cost Estrmafe
$22.?~OQO'
. ~~25,000
__$2,OOq
$30POO
__ ~3~~9~~_
Note Regarding Transmission Service:
This Facility Study is a Network Resource Interconnection Facility Study. This study identifies the
facilities necessary to integrate the Generating Facility into Idaho Power's network to serve load within
Idaho Power's balancing area. Network Resource Interconnection Service in and of itself does not
convey any right to deliver electricity to any specific customer or Point of Delivery.
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Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101
[effective date]
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
TABLE OF CONTENTS
RECITALS ............................................................................................................................................. 1
AGREEMENTS ..................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. This Agreement is not an agreement to purchase Seller's power. ........................................ 1
4. Attachments ......................................................................................................................... 1
5. Effective Date, Term, Termination and Disconnection .......................................................... 1
6. Assignment. Liability, Indemnity, Force majeure, Consequential Damages and Default ....... 5
7. Insurance ............................................................................................................................. 7
8. Miscellaneous ....................................................................................................................... 7
9. Notices ................................... : ............................................................................................. 8
10. Signatures ............................................................................................................................ 9
Attachment 1 ......................................................................................................................................... 1
Attachment 2 ......................................................................................................................................... 1
Attachment 3 ......................................................................................................................................... 1
Attachment 4 ......................................................................................................................................... 1
Attachment 5 ......................................................................................................................................... 1
Attachment 6 ......................................................................................................................................... 1
Idaho Power Company Generator Interconnection Agreement # 156
I,P.u.C. No. 29, Tariff No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the day of , 2011 between
____________ , ("Seller" or "The Project") and Idaho Power Company -Delivery
("Company", or "Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 -One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
5. Effective Date, Term, Termination and Disconnection.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of9
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and
remain effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2. 1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller'S Generation
Facility will be disconnected from the Company's transmission/distribution system. The
termination or expiration of this Agreement shall not relieve either Party of its liabilities
and obligations, owed or continuing at the time of the termination. The provisions of this
Section shall survive termination or expiration of this Agreement.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice. 11 Good Utility Practice means any of
the practices, methods and acts engaged in or approved by a significant portion of the electric
industry during the relevant time period, or any of the practices, methods and acts which, in the
exercise of reasonable judgment in light of the facts known at the time the decision was made,
could have been expected to accomplish the desired result at a reasonable cost consistent with
good business practices, reliability, safety and expedition. Good Utility Practice is not intended
to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to
be acceptable practices, methods, or acts generally accepted in the region. Good Utility
Practice includes compliance with WECC or NERC requirements. Payment of lost revenue
resulting from temporary disconnection shall be governed by the power purchase agreement.
5.3.1 Emergencv Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to
endanger life or property; or (2) that, in the case of the Company, is imminently likely (as
determined in a non-discriminatory manner) to cause a material adverse effect on the
security of, or damage to the Company's transmission/distribution system, the
Company's Interconnection Facilities or the equipment of the Company's customers; or
(3) that, in the case of the Seller, is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the reliability and security
of, or damage to, the Generation Facility or the Seller's Interconnection Facilities. Under
Emergency Conditions, either the Company or the Seller may immediately suspend
interconnection service and temporarily disconnect the Generation Facility. The
Company shall notify the Seller promptly when it becomes aware of an Emergency
Condition that may reasonably be expected to affect the Seller's operation of the
Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the
Company's equipment or service to the Company's customers. To the extent
information is known, the notification shall describe the Emergency Condition, the extent
of the damage or deficiency, the expected effect on the operation of both Parties'
facilities and operations, its anticipated duration, and the necessary corrective action.
5.3.2 Routine Maintenance. Construction. and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.c. No. 29, Tariff No. 101 Page 3 of 9
and temporarily disconnect the Generation Facility from the Company's
transmission/distribution system when necessary for routine maintenance, construction,
and repairs on the Company's transmission/distribution system. The Company will
make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt
interconnection or curtail deliveries from the Seller's Facility. Seller understands that in
the case of emergency circumstances, real time operations of the electrical system,
and/or unplanned events, the Company may not be able to provide notice to the Seller
prior to interruption, curtailment or reduction of electrical energy deliveries to the
Company. The Company shall use reasonable efforts to coordinate such reduction or
temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of significant Facility
maintenance for that calendar year and the Company and Seller shall mutually agree as
to the acceptability of the proposed schedule. The Parties determination as to the
acceptability of the Seller's timetable for scheduled maintenance will take into
consideration Good Utility Practices, Idaho Power system requirements and the Seller's
preferred schedule. Neither Party shall unreasonably withhold acceptance of the
proposed maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and
Generation Facility maintenance schedules such that they occur simultaneously. Seller
shall provide and maintain adequate protective equipment sufficient to prevent damage
to the Generation Facility and Seller-furnished Interconnection Facilities. In some cases,
some of Seller's protective relays will provide back-up protection for Idaho Power's
facilities. In that event, Idaho Power will test such relays annually and Seller will pay the
actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's
transmission/distribution system. The Company shall use reasonable efforts to provide
the Seller with prior notice. If prior notice is not given, the Company shall, upon request,
provide the Seller written documentation after the fact explaining the circumstances of
the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller's Generation
Facility may cause disruption or deterioration of service to other customers served from
the same electric system, or if operating the Generation Facility could cause damage to
the Company's transmission/distribution system or other affected systems. Supporting
documentation used to reach the decision to disconnect shall be provided to the Seller
upon request. If, after notice, the Seller fails to remedy the adverse operating effect
within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless
the provisions of Article 5.3. 1 apply.
5.3.7 Modification of the Generation Facilitv. The Seller must receive written
authorization from the Company before making any change to the Generation Facility
that may have a material impact on the safety or reliability of the Company's
transmission/distribution system. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Good UWity Practice. If the Seller makes
such modification without the Company's prior written authorization, the latter shall have
the right to temporarily disconnect the Generation Facility.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u .C. No. 29, Tariff No. 101 Page 4 of9
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's
transmission/distribution system to their normal operating state as soon as reasonably
practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power.
Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty
(180) days' notice to the Seller, change its nominal operating voltage level by more than
ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho
Power's expense, Seller's equipment as necessary to accommodate the modified
nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate,
maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection
Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities
necessary or useful to this Agreement, including adequate and continuing access rights
on property of Seller. Seller warrants that it has procured sufficient easements and
rights-of-way from third parties so as to provide Idaho Power with the access described
above. All documents granting such easements or rights-of-way shall be subject to
Idaho Power's approval and in recordable form.
5.4.2 Use of Public Rights-of-Way. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of
duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho
Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and
receive from any local, state or federal governmental body the right to erect, construct
and maintain Seller-furnished Interconnection Facilities upon, along and over any and all
public roads, streets and highways, then the use by Seller of such public right-of-way
shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction and/or maintenance of electric distribution and transmission facilities and
Idaho Power may claim use of such public right-of-way for such purposes at any time.
Except as required by Paragraph 5.4.4, Idaho Power shall not be required to
compensate Seller for exercising its rights under this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission
facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection
Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own
distribution or transmission facilities along, over and above any public right-of-way
acquired from Seller pursuant to Paragraph 5.4.2, attaching Seller's Interconnection
Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4,
Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same condition, both financially and electrically, as Seller existed prior
to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties
agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 5 of 9
5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility
Practices, (2) equitably share the costs of installing, owning and operating jointly used
facilities and rights-of-way. If the Parties are unable to agree on the method of
apportioning these costs, the dispute will be submitted to the Commission for resolution
and the decision of the Commission will be binding on the Parties, and (3) shall provide
Seller with an interconnection to Idaho Power's system of equal capacity and durability
as existed prior to Idaho Power exercising its rights under this Paragraph 5.4.
6. Assignment, Liability. Indemnity. Force majeure. Consequential Damages and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to aSSignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liabilitv. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnity,
6.3.1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 6 of 9
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Party is rendered whoJly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 7 of 9
6.5 Default and Material Breaches.
6.5. 1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default'J, the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carry the following
insurance coverage:
7.1 Comprehensive General Liability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A. M. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notify Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7. 1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breac;h.
8. Miscellaneous.
8.1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law principles.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 8 of 9
of those Idaho Power fumished Interconnection Facilities as required under Schedule 72 and/or
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Seller: ________________________ _
Attention: __________________________ _
Address: ____________________________ _
City: __________ State: ____ .Zip: ____ _
Phone: Fax:
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
----------
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Seller: _________________________ _
Attention: __________________________ _
Address: ____________________________ _
City: ___________ State: ____ Zip: ______ _
Phone: Fax:
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
------------
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No. 101 Page 9 of 9
Seller's Operating Representative:
Seller: _______________________ _
Attention: _________________________ _
Address: _________________________ _
City: ____________ State: _____ Zip: ____ __
Phone: Fax: --------
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Seller
Name: ________________________ _
Title: ____________________ _
Date: _________ _
For the Company
Name:
Title: Manager, Grid Operations -Idaho Power Company, Delivery
Date: _______________ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 2
Attachment 1
Description and Costs of the Generation Facility. Interconnection Facilities and Meterinq
Equipment
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
substation. The project location is The total project output is 18 MW.
Interconnection Point
The Interconnection Point for the Lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is 800N and
1900W (in Sections 14, 22, 23, 26, 27, 34 and 35 of T1, R32E and Section 2 &3 of T2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point. A
drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install twelve GE 1.5MW wind turbines, the Power collector system to, and including the
step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control (JIGOLC") -see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
2. One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power
Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 2
Ground Fault Equipment
The Seller will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements
The Interconnection Customer will secure appropriate easements with the land owner for the
interconnection facilities as described in the Facility Study Report. IPca construction will not proceed
until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the Interconnection Point, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4), SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
protector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned, operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are provided in 2011 dollars
___________ Owners,"J;iu~ __ ~---,,,,,,,,,,t .... Es~tim=8t,,,,-e _-,
~~e~erat~~:!::;l:i~ieli~-"---.. _-.--.------:seller-· ----.----f---------SN/A
]I~t;r~o~/~~/i;;,Facilities!..... --~~-=~~~~~----;.--=-~ -.. -~~--r=---=--9Yl?rh~.~._Q.tlE_t?!~g.~!! ~!~~coIl!l(l£!~9E~!lc~~g~ _ _ ___ Yco . _________ 1_ ____ $225,000;
, I ' ;(S.l!~1!Tr!Cf!"¥'~!y!J1l!!.1~.rJ!j~£(~r.~_nt!..!f!J{l.l) ." .... JO,!,AL~ _____ ._. . ___ $22?,OOO
-------. ,--._-_._.-..
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facility, Interconnection Facilities, Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 3
Milestones:
Note: These Milestones are estimates only, and not guarantees of meeting or not meeting any specific
date or milestone.
~ ~~~~
TBD IFunding Received
6" months after Construction FundsR-ecelved bi/PCO Construction Complete -. I
IPca t
1
2 wee~-after IPce Construction C~.~.E~~= __ lPC.l? ~o.!"'missioning com~/~te_~--== __ l
l[t~e provided b~ Seller a~a later dat.~_] ___ Ico'!'mercial Operation ._~l
Agreed to by:
For the Interconnection Customer ______________ Date _____ _
For the Transmission Provider
Idaho Power Company, Delivery ______________ Date. _____ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Seller's Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system. The project is required to comply with the applicable Voltage
and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and
Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they
may be updated from time to time.
Generator Output Limit Control (liRe-dispatch" or "GOLC")
The Project will be allowed to deliver the net output of 18MW at the Interconnection Point subject to
reductions directed by Idaho Power Company Grid Operations during transmission system
contingencies. When outages occur, the Project will be subject to Generator Output Limit Control
("GOlC") and have equipment capable of receiving an analog setpoint, via DNP 3.0 from Idaho Power
for GOlC. Generator Output Limit Control will be a setpoint from Idaho Power to the Project indicating
maximum output allowed during transmission contingencies.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Ground Fault Equipment
The Seller will install transformer configurations that provide a ground source to the transmission
system.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point.
Idaho Powe:-Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 6
Company's Description of Special Facilities and Upgrades Required to Integrate the Generation
Facility and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven SUbstation and install a local service
transformer on the feeder side of the SUbstation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
The followin good faith estimates are provided in 2011 dollars:
Desc • non
!~~bstatioll !!RJf!ades~._. _ _ _ --------1
'LT9_l.!£./¥ade__ ____ _ __ . --ilrP~.9_+_ $2,OQQl
:Local Service Transformer/Transfer Trip IPe O $30,0001
:---.-.---. -.. -_ ....... __ .. -•.•. --.-.---.-.•. _-...•.. _.-.•.. ,,-0 ... -··--·TOTALI -_. -. -1--_. _-=--$3-"-2...!..,0::....0~01
'---... '0-_... 0----------1---I
,....--_____________ ._____ ______ __________ I
!nterconnectiOtI. ..EE.s.~~Jl!om Attachment 1 . TOTAL .. ____ t _. '---1 $225~0.00j
I I I
PROJECT GRAND TOTALI I $257,0001
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 16
JUCHARJ)S~QN a: O'-LEABY. rw:
ATTORNEYS AT LAW
Peter Richardson
Tel: [phone] I Fax: 208·938·7904
perc r~ richardso n indo leary. com
P.O. BOl< 7218 Boise.ID 8370T. 515~. 27th St. Boise.ID 8:F02
August 5, 2011
Via Electronic and U.S. Mail
Donovan Walker, Lead Counsel
Randy Allphin, PURP A Contracts Administrator
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707
Re: Notch Butte Wind Park and Lava Bed Wind Park Request to Extend Cure Period
Dear Donovan and Randy:
This letter may serve as acknowledgement that we have received your letters dated July 26,2011,
each of which states that it provides ''Notice of Default as of the date of this letter." Section 22.2.1
of the two finn energy sales agreements ("FESAs") applicable to these projects does not limit the
projects to a rigid 60-day cure period after such Notice. Rather, the FESAs provide that the
defaulting party may cure the default within a commercially reasonable time if it is able to do so
and diligently pursues that cure.
Your letters appear to state that the projects must cure the default in achieving the commercial
online date within 60 days of the Notice ofDefaul4 which calculates to be September 24,2011,
because Idaho Power believes the projects have failed to demonstrate they are diligently attempting
to cure any potential default within a commercially reasonable time. Specifically, your letters state,
;'If the default is not cured within said sixty (60) days, then Idaho Power may exercise its rights to
terminate and/or pursue its legal or equitable remedies unless the project demonstrates that it is
diligently pursuing cure of the default by the commercially reasonable time period of year end,
2011."
To be clear, my letter to you dated June 30, 2011 did not state that Exergy Development Group of
Idaho considered year-end 2011 to be the outer limit ofa commercially reasonable period to cure
the online date default. Exergy does not agree with the following statement in your letters: "If the
project is not online by year end 2011, the parties agree that the commercially reasonable period to
cure this default has expired .... " My letter merely stated that Exergy expected to be able to bring
each project online by the end of the year because all of the nonnal near·tenn preconstruction
activity was underway. Exergy believes that a time frame beyond year end 2011 could be a
commercially reasonable period within which to bring the projects online.
Mr. Walker and Mr. Allphin
August 5, 2011
Page 2
Nevertheless, Exergy still intends to energize each ofthese projects by year end 2011. Exergy has
brought many wind projects online in Idaho, and based on its commercial experience and
knowledge that all nonnal preconstruction activities are complete for each of these projects, it
expects that it will be able to energize these projects by year end 2011. Exergy is diligently
pursuing achievement of the year end 2011 energized date for each project.
However, completion of the interconnection construction required to fully meet the online status
defined in the FESAs is largely in Idaho Power's hands. Based on communications with Idaho
Power's transmission! interconnection personnel, Idaho Power should be able to complete the
interconnection construction for the Lava Beds project by year end 20 11, but the Notch Butte
project may not be fully interconnected until June 2012. Because interconnection construction is
largely beyond Exergy's control, Exergy will have cured any default caused by it by energizing the
projects. In short, Exergy believes it would be acting well within a commercially reasonable time
frame to have both projects energized by year end 2011. To the extent that interconnection delays
are the cause of a continued delay default, Exergy cannot accept responsibility or liability for such
delays, and such delays would not be the basis for termination of either FESA.
If Idaho Power believes that the FESAs require Exergy to provide additional items or information to
demonstrate that Exergy can meet its obligations in the time frame referenced above, could you
please explain in detail what items or infonnation Idaho Power would deem sufficient to extend the
cure period beyond September 24,2011? Otherwise, would you please confmn that Idaho Power
considers Exergy to have established that year end 2011 vvill be a commercially reasonable time
within which Exergy must meet the online date obligations within Exergy's control, as that tenn is
used in section 22.2.1 of the FESAs?
Also, if Idaho Power believes that Exergy must provide items or information demonstrating that it is
diligently pursuing the cure after expiration of the 60-day period on September 24, 2011, could you
please provide guidance on the type, extent, and timing of items and information Idaho Power
believes necessary?
Thank you for your attention to this matter. Please copy Mr. James Carkulis with any
correspondence to my office regarding this matter.
very fJ.?&
Peter J. Richardson
Attorney for Exergy Development Group of Idaho, LLC
cc: James Carkulis, Exergy Development Group ofldaho, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 17
Dustin Shively
Exergy Development Group of Idaho
802 W Bannock Street Suite 1200
Boise, ID 83702
August 26, 2011
Via email & Certified Mail
#70090820000123019626
An IDACORP company
Re: Lava Beds Wind Project ~ Generator Interconnection Agreement (GIA) (#156)
Dear Dustin:
Thank you for your updated Attachments to the Schedule 72 Interconnection Agreement for the
Lava Beds Wind project. Attached is the Final OIA, with an extra set of signature pages. Please
complete the NOTICES infonnation, and sign and return both sets of the signature pages to me
by September 30, 2011 so that we may finalize the interconnection process. We will return a
fully executed copy of the signature pages for your files.
Please provide written notification to Idaho Power Company ATfN: Rich Bauer at least 30 days
prior to testing so that we may prepare software updates for preschedule and real time operations.
When you are ready for testing please contact Idaho Power's Outage Coordinator's desk during
nonna! business hours at least seven (7) days in advance, at 208-388-2633, 5125 or 5175. If
contact needs to be made after hours, please call Eastern Region 208-388-5185.
If you have any further questions, please don't hesitate to call.
7{;;:
Rowena Bishop
Operations Analyst
Ph 208-388-2658
[e-mail]
End: 2 copies -Schedule 72 Interconnection Agreement signature pages
Final OIA
Cc: Rich Bauer! IPC
P.O. 80x 70 (83707)
1221 W Idaho St.
Boise, 10 83702
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101
[effective date]
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
TABLE OF CONTENTS
RECiTALS .............................................................................................................................................. 1
AGREEMENTS ..................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. This Agreement is not an agreement to purchase Seller's power ......................................... 1
4. Attachments ......................................................................................................................... 1
5. Effective Date. Term. Termination and Disconnection .......................................................... 1
6. Assignment, Liability. Indemnity, Force majeure. Conseguential Damages and Default ....... 5
7. Insurance ............. ,., ............................................................................................................. 7
8. Miscellaneous ....................................................................................................................... 7
9. Notices ................................... : ............................................................................................. 8
10. Signatures ............................................................................................................................ 9
Attachment 1 ......................................................................................................................................... 1
Attachment 2 ......................................................................................................................................... 1
Attachment 3 .......................................................................................................................................... ·1
Attachment 4 ......................................................................................................................................... 1
Attachment 5 ......................................................................................................................................... 1
Attachment 6 ......................................................................................................................................... 1
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the day of , 2011 between
~ __ ---::-----= ______ ' ("Seller" or "The Project") and Idaho Power Company -Delivery
("Company", or "Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 .... One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
5. Effective Date, Term, Termination and Disconnection.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 9
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and
remain effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seiler'S Generation
Facility will be disconnected from the Company's transmission/distribution system. The
termination or expiration of this Agreement shall not relieve either Party of its liabilities
and obligations, owed or continuing at the time of the termination. The provisions of this
Section shall survive termination or expiration of this Agreement.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice. 11 Good Utility Practice means any of
the practices, methods and acts engaged in or approved by a significant portion of the electric
industry during the relevant time period, or any of the practices, methods and acts which, in the
exercise of reasonable judgment in light of the facts known at the time the decision was made,
could have been expected to accomplish the desired result at a reasonable cost consistent with
good business practices, reliability, safety and expedition. Good Utility Practice is not intended
to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to
be acceptable practices, methods, or acts generally accepted in the region. Good Utility
Practice includes compliance with WECC or NERC requirements. Payment of lost revenue
resulting from temporary disconnection shall be governed by the power purchase agreement.
5.3.1 Emergency Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to
endanger life or property; or (2) that, in the case of the Company, is imminently likely (as
determined in a non-discriminatory manner) to cause a material adverse effect on the
security of, or damage to the Company's transmission/distribution system, the
Company's Interconnection Facilities or the equipment of the Company's customers; or
(3) that, in the case of the Seller. is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the reliability and security
of, or damage to, the Generation Facility or the Seiler'S Interconnection Facilities. Under
Emergency Conditions, either the Company or the Seller may immediately suspend
interconnection service and temporarily disconnect the Generation Facility. The
Company shall notify the Seller promptly when it becomes aware of an Emergency
Condition that may reasonably be expected to affect the Seller's operation of the
Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the
Company's equipment or service to the Company's customers. To the extent
information is known, the notification shall describe the Emergency Condition, the extent
of the damage or deficiency, the expected effect on the operation of both Parties'
facilities and operations, its anticipated duration, and the necessary corrective action.
5.3.2 Routine Maintenance, Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 3 of 9
and temporarily disconnect the Generation Facility from the Company's
transmission/distribution system when necessary for routine maintenance, construction,
and repairs on the Company's transmission/distribution system. The Company will
make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt
interconnection or curtail deliveries from the Seller's Facility. Seller understands that in
the case of emergency circumstances, real time operations of the electrical system,
and/or unplanned events, the Company may not be able to provide notice to the Seller
prior to interruption, curtailment or reduction of electrical energy deliveries to the
Company. The Company shall use reasonable efforts to coordinate such reduction or
temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of Significant Facility
maintenance for that calendar year and the Company and Seller shall mutually agree as
to the acceptability of the proposed schedule. The Parties determination as to the
acceptability of the Seller's timetable for scheduled maintenance will take into
consideration Good Utility Practices, Idaho Power system requirements and the Seller's
preferred schedule. Neither Party shall unreasonably withhold acceptance of the
proposed maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and
Generation Facility maintenance schedules such that they occur simultaneously. Seller
shall provide and maintain adequate protective equipment sufficient to prevent damage
to the Generation Facility and Seller-furnished Interconnection Facilities. In some cases,
some of Seller's protective relays will provide back-up protection for Idaho Power's
facilities. In that event, Idaho Power will test such relays annually and Seller will pay the
actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's
transmission/distribution system. The Company shall use reasonable efforts to provide
the Seller with prior notice. If prior notice is not given, the Company shall, upon request,
provide the Seller written documentation after the fact explaining the circumstances of
the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller's Generation
Facility may cause disruption or deterioration of service to other customers served from
the same electric system, or if operating the Generation Facility could cause damage to
the Company's transmission/distribution system or other affected systems. Supporting
documentation used to reach the decision to disconnect shall be provided to the Seller
upon request. If, after notice, the Seller fails to remedy the adverse operating effect
within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless
the provisions of Article 5.3. 1 apply.
5.3.7 Modification of the Generation Facility. The Seller must receive written
authorization from the Company before making any change to the Generation Facility
that may have a material impact on the safety or reliability of the Company's
transmission/distribution system. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Good Utility Practice. If the Seller makes
such modification without the Company's prior written authorization, the latter shall have
the right to temporarily disconnect the Generation Facility.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 4 of 9
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's
transmission/distribution system to their normal operating state as soon as reasonably
practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power.
Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty
(180) days' notice to the Seller, change its nominal operating voltage level by more than
ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho
Power's expense, Seller'S equipment as necessary to accommodate the modified
nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate,
maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection
Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities
necessary or useful to this Agreement, including adequate and continuing access rights
on property of Seller. Seller warrants that it has procured sufficient easements and
rights-of-way from third parties so as to provide Idaho Power with the access described
above. .AII documents granting such easements or rights-of-way shall be subject to
Idaho Power's approval and in recordable form.
5.4.2 Use of Public Rights-of-Wav. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of
duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho
Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and
receive from any local, state or federal governmental body the right to erect, construct
and maintain Seller-furnished Interconnection Facilities upon, along and over any and all
public roads, streets and highways, then the use by Seller of such public right-of-way
shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction and/or maintenance of electric distribution and transmission facilities and
Idaho Power may claim use of such public right-of-way for such purposes at any time.
Except as required by Paragraph 5.4.4, Idaho Power shall not be required to
compensate Seller for exercising its rights under this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission
facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection
Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own
distribution or transmission facilities along, over and above any public right-of-way
acquired from Seller pursuant to Paragraph 5.4.2, attaching Seller's Interconnection
Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4,
Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same condition, both financially and electrically, as Seller existed prior
to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties
agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 5 of 9
5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility
Practices, (2) equitably share the costs of installing, owning and operating jointly used
facilities and rights-of-way. If the Parties are unable to agree on the method of
apportioning these costs, the dispute will be submitted to the Commission for resolution
and the decision of the Commission will be binding on the Parties, and (3) shall provide
Seller with an interconnection to Idaho Power's system of equal capacity and durability
as existed prior to Idaho Power exercising its rights under this Paragraph 5.4.
6. Assignment. Liabilitv. Indemnity, Force majeure, Consequential Damages and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to aSSignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnity.
6.3.1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 6 of9
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Party is rendered who/ly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 7 of 9
6.5 Default and Material Breaches.
6.5. 1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default"), the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carry the following
insurance coverage:
7.1 Comprehensive General Liability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A. M. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notify Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breaqh.
8. Miscellaneous.
8.1 Governina Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law prinCiples.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 8 of 9
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Seller: _______________________ _
Attention: __________________________ _
Address: ------------~------~~--------------City: ______________ -State:-----'Zip: ____ _
Phone: Fax:
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
----------
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Seller: __________________________ _
Attention: ________________________________ _
Address: ________________________________ __
City: ____________ State: ___ --'Zip: _____ _
Phone: Fax:
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 8411 0-0447
------------
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 9 of 9
Seller's Operating Representative:
Seller: __________________________ _
Attention: _______________________________________ _
Address: _______________________ ~----------------
City: __________________ State: _____ .Zip: ____ _
Phone: Fax: -----------
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Seller
Name:
Title: __________________________________ _
Date:
For the Company Name: __________________________________ __
Title: Manager, Grid Operations -Idaho Power Company, Delivery
Date: ____________ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29) Tariff No.1 01 Page 1 of 2
Attachment 1
Description and Costs of the Generation Facility, Interconnection Facilities and Metering
Eguipment
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
substation. The project location is The total project output is 18 MW.
Interconnection Point
The Interconnection Point for the lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is 800N and
1900W (in Sections 14, 22, 23, 26, 27, 34 and 35 of T1, R32E and Section 2 &3 of T2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point. A
drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install twelve GE 1.5MW wind turbines, the Power collector system to, and including the
step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOlC") -see Attachment 4 Op~rating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
2. One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power
Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 2
Ground Fault Equipment
The Seller will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements
The Interconnection Customer will secure appropriate easements with the land owner for the
interconnection facilities as described in the Facility Study Report. IPCO construction will not proceed
until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the Interconnection Point, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4), SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
protector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned, operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are rovided in 2011 dollars
Generation Facilities:
PJ"ovi~~d _~y .~_~.~!~~_
Interconnection Facilities:
9.v~_r~~~~ Gen~ration Jnte~~onnec.!!~n Pa~~~e
(S.~l!.1!,[4:.C!!¥.~IV!. 6.fl!!.P..,:ok~t. Gr.l!nd To_t,!:!) ..
Seller
---_. ---,
IPeo
TOTAL
$N/A
$225,000
_$~251100
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facility, Interconnection Facilities, Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 3
Milestones:
Note: These Milestones are estimates only, and not guarantees of meeting or not meeting any specific
date or milestone.
~te Milestones
TBD !Funding Received
'6 months afterConstructiOnFunds Received b}/PCO Construction Comple~' .--_.---
, ~£:ca ________ . _______ .. _ .. _. ____________ .
12 weeks after IPca Construction Complete IPCO Commissioning Complete
---j
I
... -_. ---------,----.. --~ ---~----_.. ... -.~-.. --~ -.-. ------
[to be provided by Seller at a later date] 'Commercial Operation .--------.. ------_ .. __ ._---'---
Agreed to by:
For the Interconnection Customer ______________ Date _____ _
For the Transmission Provider
Idaho Power Company, Delivery ______________ ,Date _____ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 4
Additional Operating Requirements for the Compants Transmission System and Affected
Systems Needed to Support the Seller's Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system. The project is required to comply with the applicable Voltage
and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and
Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they
may be updated from time to time.
Generator Output Limit Control (liRe-dispatch" or "GOLC',
The Project will be allowed to deliver the net output of 18MW at the Interconnection Point subject to
reductions directed by Idaho Power Company Grid Operations during transmission system
contingencies. When outages occur, the Project will be subject to Generator Output Limit Control
("GOlC") and have equipment capable of receiving an analog setpoint, via DNP 3.0 from Idaho Power
for GOlC. Generator Output Limit Control will be a setpoint from Idaho Power to the Project indicating
maximum output allowed during transmission contingencies.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Ground Fault Equipment
The Seller will install transformer configurations that provide a ground source to the transmission
system.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point.
Idaho Powe~ Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Attachment 6
Company's Description of Special Facilities and Upgrades Required to Integrate the Generation
Facility and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
SUbstation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local service
transformer on the feeder side of the substation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
• I -+ _.-.---, ----_ .. __ !..._---------------~
JPca : $2,000' 0------.,-__ ~ _ __ _ __._
~~c_a.! S{;:!"i.~~ !!!!.ll_s.r~f!!:!~r/J!~~ie~.I~~p ___ .. _ __I ____ !pca _ .. _ _ _ $30,000
TOTAL' $32,000 --.------• ____ ._~ __ • __________ • ________ -4 • ______ • ______ •• --_____ -; ____________ j
PROJECT GRAND TOTAL $257,0001
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 18
RICHARUSON & O'L"~RY, pu.c
ATTORNEYS AT LAW
Peter Richardson
I ~ I ~ (l 1< 'I I ~. ' ~ 1"11 1".1 1I1l· <) J ~ -.) (J ~
pt'f~r~·· rll. nJ rJ:!ItJ nJ.n do I ~J. r,' ... ll m
P.t) 8 0 ), -].1~ B()I~c (n fn"'o-':;I~ ~ 2-d ... ~r Blll!i(' 11"1 R~'02
September 1,2011 -HAND DELIVERY
Donovan Walker, Lead Counsel
Idaho Power Company
1221 West Idaho St.
Boise, Idaho 83702
Re: Notch Butte Wind Project and Lava Beds Wind Project Update
Dear Donovan:
I am writing to provide you with an update on the progress Exergy Development Group
of Idaho is making on bringing these projects on line. As you know, the original on line
date was extended for these projects to September of 20 1 O. As the agreement has a ten
month 'grace period' the default commercial on line date was be July 1,2011. Although
the project has not met the default commercial on line date of July first, the project is
allowed to cure if it can do so in a commercially reasonable time. See Paragraphs 5 and
22 of the power purchase agreements.
As I last reported to you, Exergy continues making progress with a goal of achieving
commercial on line date for these two projects by the end of this year. All the ground
work, soil bores and geotechnical work is completed. Turbines have been ordered and
the heavy construction work will commence as soon as the irrigation water is off and the
soil has dried and finned after the gro"ving season is over. The engineering, construction
and procurement contracts are in place and the projects are ready to go.
I just wanted to keep you in the loop and fully advised ofthe progress that is being made
to achieve commercial operations ""ithin a reasonable time of the deadline contained in
the power purchase agreements. If you would like to discuss or if you disagree with the
conclusion that Exergy is, indeed making commercially reasonable efforts to achieve
commercial operations please give me a call so we can discuss in more detail.
Sincerely y urs. I /
.. J : \ --.~--­Peter R ichardson. {SB . 3195
RICHARDSON & O'LEARY PL
Cc: Randy Allphin
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 19
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01
December 15, 2011
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18 MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
TABLE OF CONTENTS
RECiTALS .............................................................................................................................................. 1
AGREEMENTS ...................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. This Agreement is not an agreement to purchase Seller's power ......................................... 1
4. Attachments ......................................................................................................................... 1
5. Effective Date, Term, Termination and Disconnection .......................................................... 1
6. Assiqnment. Liabilitv. Indemnity, Force majeure, Consequential Damages and Default. ...... 5
7. Insurance ............................................................................................................................. 7
8. Miscellaneous ...................................................................................................................... 7
9. Notices ................................................................................................................................. 8
10. Signatures ............................................................................................................................ 9
Attachment 1 .......................................................................................................................................... 1
Attachment 2 .......................................................................................................................................... 1
Attachment 3 .......................................................................................................................................... 1
Attachment 4 .......................................................................................................................................... 1
Attachment 5 .......................................................................................................................................... 3
Attachment 6 .......................................................................................................................................... 1
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the __ day of I 2011 between Exergy Development Group
of Idaho, LLC ("Seller" or "The Project") and Idaho Power Company -Delivery ("Company", or
"Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 -One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
5. Effective Date, Term, Termination and Disconnection.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 2 of 9
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and
remain effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facility will be disconnected from the Company's transmission/distribution system. The
termination or expiration of this Agreement shall not relieve either Party of its liabilities
and obligations, owed or continuing at the time of the termination. The provisions of this
Section shall survive termination or expiration of this Agreement.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of
the practices, methods and acts engaged in or approved by a significant portion of the electric
industry during the relevant time period, or any of the practices, methods and acts which, in the
exercise of reasonable judgment in light of the facts known at the time the decision was made,
could have been expected to accomplish the desired result at a reasonable cost consistent with
good business practices, reliability, safety and expedition. Good Utility Practice is not intended
to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to
be acceptable practices, methods, or acts generally accepted in the region. Good Utility
Practice includes compliance with WECC or NERC requirements. Payment of lost revenue
resulting from temporary disconnection shall be governed by the power purchase agreement.
5.3. 1 Emergency Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to
endanger life or property; or (2) that, in the case of the Company, is imminently likely (as
determined in a non-discriminatory manner) to cause a material adverse effect on the
security of, or damage to the Company's transmission/distribution system, the
Company's Interconnection Facilities or the equipment of the Company's customers; or
(3) that, in the case of the Seller, is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the reliability and security
of, or damage to, the Generation Facility or the Seller's Interconnection Facilities. Under
Emergency Conditions, either the Company or the Seller may immediately suspend
interconnection service and temporarily disconnect the Generation Facility. The
Company shall notify the Seller promptly when it becomes aware of an Emergency
Condition that may reasonably be expected to affect the Seller's operation of the
Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the
Company's equipment or service to the Company's customers. To the extent
information is known, the notification shall describe the Emergency Condition, the extent
of the damage or deficiency, the expected effect on the operation of both Parties'
facilities and operations, its anticipated duration, and the necessary corrective action. .
5.3.2 Routine Maintenance, Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 3 of 9
and temporarily disconnect the Generation Facility from the Company's
transmission/distribution system when necessary for routine maintenance, construction,
and repairs on the Company's transmission/distribution system. The Company will
make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt
interconnection or curtail deliveries from the Seller's Facility. Seller understands that in
the case of emergency circumstances, real time operations of the electrical system,
and/or unplanned events, the Company may not be able to provide notice to the Seller
prior to interruption, curtailment or reduction of electrical energy deliveries to the
Company. The Company shall use reasonable efforts to coordinate such reduction or
temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of significant Facility
maintenance for that calendar year and the Company and Seller shall mutually agree as
to the acceptability of the proposed schedule. The Parties determination as to the
acceptability of the Seller's timetable for scheduled maintenance will take into
consideration Good Utility Practices, Idaho Power system requirements and the Seller's
preferred schedule. Neither Party shall unreasonably withhold acceptance of the
proposed maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and
Generation Facility maintenance schedules such that they occur simultaneously. Seller
shall provide and maintain adequate protective equipment sufficient to prevent damage
to the Generation Facility and Seller-furnished Interconnection Facilities. In some cases,
some of Seller's protective relays will provide back-up protection for Idaho Power's
facilities. In that event, Idaho Power will test such relays annually and Seller will pay the
actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's
transmission/distribution system. The Company shall use reasonable efforts to provide
the Seller with prior notice. If prior notice is not given, the Company shall, upon request,
provide the Seller written documentation after the fact explaining the circumstances of
the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller's Generation
Facility may cause disruption or deterioration of service to other customers served from
the same electric system, or if operating the Generation Facility could cause damage to
the Company's transmission/distribution system or other affected systems. Supporting
documentation used to reach the decision to disconnect shall be provided to the Seller
upon request. If, after notice, the Seller fails to remedy the adverse operating effect
within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless
the provisions of Article 5.3. 1 apply.
5.3.7 Modification of the Generation Facility. The Seller must receive written
authorization from the Company before making any change to the Generation Facility
that may have a material impact on the safety or reliability of the Company's
transmission/distribution system. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Good Utility Practice. If the Seller makes
such modification without the Company's prior written authorization, the latter shall have
the right to temporarily disconnect the Generation Facility.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 4 of 9
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's
transmission/distribution system to their normal operating state as soon as reasonably
practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power.
Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty
(180) days' notice to the Seller, change its nominal operating voltage level by more than
ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho
Power's expense, Seller's equipment as necessary to accommodate the modified
nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate,
maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection
Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities
necessary or useful to this Agreement, including adequate and continuing access rights
on property of Seller. Seller warrants that it has procured sufficient easements and
rights-of-way from third parties so as to provide Idaho Power with the access described
above. All documents granting such easements or rights-of-way shall be subject to
Idaho Power's approval and in recordable form.
5.4.2 Use of Public Rights-of-Wav. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of
duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho
Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and
receive from any local, state or federal governmental body the right to erect, construct
and maintain Seller-furnished Interconnection Facilities upon, along and over any and all
public roads, streets and highways, then the use by Seller of such public right-of-way
shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction and/or maintenance of electric distribution and transmission facilities and
Idaho Power may claim use of such public right-of-way for such purposes at any time.
Except as required by Paragraph 5.4.4, Idaho Power shall not be required to
compensate Seller for exercising its rights under this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission
facilities to Seller'S Interconnection Facilities, may reconstruct Seller's Interconnection
Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own
distribution or transmission facilities along, over and above any public right-of-way
acquired from Seller pursuant to Paragraph 5.4.2, attaching Seller's Interconnection
Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4,
Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same condition, both financially and electrically, as Seller existed priol
to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties
agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 5 of 9
5.4.2 and 5.4.3 shall: (1) comply with all applicable laws, codes and Good Utility
Practices, (2) equitably share the costs of installing, owning and operating jointly used
facilities and rights-of-way. If the Parties are unable to agree on the method of
apportioning these costs, the dispute will be submitted to the Commission for resolution
and the decision of the Commission will be binding on the Parties, and (3) shall provide
Seller with an interconnection to Idaho Power's system of equal capacity and durability
as existed prior to Idaho Power exercising its rights under this Paragraph 5.4.
6. Assignment, Liability. Indemnity, Force majeure, Consequential Damages and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1 .2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnitv.
6.3. 1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 6 of 9
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 7 of 9
6.5 Default and Material Breaches.
6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "DefaultJl or an "Event of DefaultJl), the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6. 1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carry the following
insurance coverage:
7. 1 Comprehensive General Liability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A. M. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to NoUN Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breach.
8. Miscellaneous.
8.1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law principles.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 8 of 9
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities .
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01
Seller's Operating Representative:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
Page 9 of 9
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives .
For the Seller
Name:
Title: -----------------------------------------
Date:
For the Company
Name:
Title: Manager, Grid Operations -Idaho Power Company, Delivery
Date:
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 1
Description and Costs of the Generation Facility, Interconnection Facilities and Metering
Equipment
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
substation. The total project output is 18 MW.
Interconnection Point
The Interconnection Point for the Lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is 800N and
1900W (in Sections 14, 22, 23, 26, 27, 34 and 35 of T1 , R32E and Section 2 &3 of T2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point. A
drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install nine Gamesa 2.0MW wind turbines, the Power collector system to, and including
the step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOlC") -see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
The Seller will provide a DNP 3.0 serial data connection to the local Idaho Power Company SCADA
RTU when any communication with Seller-owned and maintained equipment is required for GOlC,
voltage control or other plant monitoring or control. Preliminary points lists and functional description
can be obtained from Idaho Power's assigned Project Leader.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
2. One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power
Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
avoid delaying the project. If the communication circuit types listed above are not available at the sitt
by the local communications provider, the Seller shall confer with Idaho Power.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 2 of 2
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Ground Fault Equipment
The Seller will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements
The Seller will provide to IPCO a surveyed (Metes & Bounds) legal description along with exhibit map
for IPCO's facilities. After the legal description has been delivered to IPCO for review, IPCO will supply
to the Seller a completed IPCO easement for signature by the land owner of record . Once the
signatures have been secured, the Seller will return the signed easement to IPCO for recording. IPCO
construction will not proceed until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the Interconnection Point, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recioser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4), SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
protector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned, operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are rovided in 2011 dollars
[Generation Facilities: r-------
I
Provided by Seller
b zttgconnectio fl Facilitiesl-
IOverbead Generation Interconnection Package ,
. irSf!e /t T!A.9H1)!1JI'!! ~f(Jr..f.t:(Jil!Et.qra,!:d !o.i..alJ.
iIPCO ---
TOTAL:
$N/A
$225,OOQ.
$225 0001
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facility, Interconnection Facilities, Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 1 of 1
Attachment 3
Milestones:
Note: These Milestones are estimates only, and not guarantees of meeting or not meeting any specific
date or milestone.
--------------.-f------16 months after Construction Funds Received b IPCO Construction Complete l'Pca
~ wee~s after IPCO Construction Complete IPCO Commissioning Comple_te ______ ---l
![to be provided by Seller at a later date] Commercial Operation
Agreed to by:
For the Interconnection Customer ______________ Date _____ _
For the Transmission Provider
Idaho Power Company, Delivery _______________ Date _____ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Seller'S Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system. The project is required to comply with the applicable Voltage
and Current Distortion Limits found in IEEE Standard 519-1992 IEEE Recommended Practices and
Requirements for Harmonic Control in Electrical Power Systems or any subsequent standards as they
may be updated from time to time.
Generator Output Limit Control (URe-dispatch" or uGOLC'?
The Project will be subject to reductions directed by Idaho Power Company Grid Operations during
transmission system contingencies and other reliability events. When these conditions occur, the
Project will be subject to Generator Output Limit Control ("GOlC") and have equipment capable of
receiving signals from Idaho Power for GOlC. Generator Output Limit Control will be a setpoint from
Idaho Power to the Project indicating maximum output allowed.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Meteorological Data
Historical wind data -Within 60 days after execution of this Agreement, the Seller shall provide Idaho
Power with the following:
a) historical wind data in an electronic format from the proposed Facility site or for a location
within two miles of the Facility site.
b) a third party wind assessment study report used by Seller to value investment in the Facility.
No later than 30 days prior to the Commercial Operation Date, the Seller shall have either:
a) Erected at the site at least one (1) high quality, approximate hub-height (plus or minus 20
meters), permanent, meteorological wind measurement tower(s) at location(s) on the
site equipped with:
(I) Two (2) anemometers per tower;
(ii) Two (2) air temperature sensors per tower;
(iii) One (1) barometric pressure sensor (with DCP sensor); and
(iv) Two (2) wind vanes per tower, or
b) Arranged to provide Idaho Power approximate hub-height wind speed, wind direction, air
temperature, barometric pressure, and data from a meteorological wind measurement
tower within two miles of the Facility site.
Idaho Power Company Generator Interconnection Agreement # 156
I.P. U.C. No. 29, Tariff No.1 01 Page 1 of 1
Facility availability status shall be provided no later than within the calendar month following the
month of the Commercial Operation Date. Failure by the Seller to operate and maintain this
equipment to provide such meteorological and turbine availability data in a manner to provide
reasonably accurate and dependable data for the full term of this Agreement shall be an event
of Default under paragraph 6.5.1.
The associated cost for obtaining this data is the Sellers responsibility and was not included in the
Facility Study Report cost estimate.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1.
Attachment 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29 , Tariff No.1 01 Page 1 of 1
Attachment 6
Company's Description of Special Facilities and Upgrades Required to Inteqrate the Generation
Facility and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven SUbstation and install a local service
transformer on the feeder side of the SUbstation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
The following good faith estimates are provided in 2011 dollars:
Substation U. grades: ___ _
LTC_Upgrade __ _ _ ________ . _ {PCO 1 -'--$2 000:
Local Service Transformer/Transfer Tr~i ,--__ JPCO __ L $30,0001
__ _ __ .__ TO TALi 1_ $3j
--;;te;:;:;;;'~eclion cosls (from Alla,,-hmenll) TOTAL 1 _ F 25,OOOI
PROJECT GRAND TOTAL $257,000
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 20
Dustin Shively
Exergy Development Group of Idaho, LLC
802 W Bannock Suite 1200
Boise, ID 83702
January 25,2012
Via email & Certified Mail #70102780000090951366
lEW«)
POWER
An lOACORP Company
Re: Lava Beds Wind Project -Final Generator Interconnection Agreement (GIA) (#156)
Dear Dustin:
Attached is an original copy of the Final Generator Interconnection Agreement (GIA), and two
signature pages for the Lava Beds project. This GIA has been updated to reflect your request for
turbine change from twelve GE 1.5MW wind turbines, to nine Gamesa G97 2.0MW wind
turbines. We have also updated Attachment 3 Milestones to reflect our construction lead times
needed to meet the in service date you have requested.
Lisa Loomis will continue working with you during the construction period. When you are
ready for testing please contact Idaho Power's Outage Coordinator's desk during normal
business hours at least seven (7) days in advance, at 208-388-2633, 5125 or 5175. After hours,
please contact Idaho Power Eastern Regional Dispatch at 208-388-5185.
Please have both sets of signature pages to the GIA signed, and returned to me for execution on
or before February 27, 2012. We will return a set of fully executed signature pages for your
files.
Sincerely,
btXfJ
Operations Analyst
Ph 208-388-2658
Enc1: Original FINAL GIA and 2 sets signature pages for signature
Cc (via email): James CarkulislExergy
Rich Bauer/IPC
p,o, Box 70 (83707)
1221 W. Idaho St.
Boise, 10 B3702
Idaho Power Company Generator Interconnection Agreement # 156
I,P.U.C. No. 29, Tariff No. 101
January 24,2012
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
TABLE OF CONTENTS
RECiTALS ............................................................................................................................................. 1
AGREEMENTS ..................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. This Agreement is not an agreement to purchase Seller's power ......................................... 1
4. Attachments ......................................................................................................................... 1
5. Effective Date, Term, Termination and Disconnection .......................................................... 1
6. Assignment, Liability, Indemnity, Force majeure, Consequential Damages and Default. ...... 5
7. Insurance ............................................................................................................................. 7
8. Miscellaneous ....................................................................................................................... 7
9. Notices ................................................................................................................................. 8
10. Signatures ............................................................................................................................ 9
Attachment 1 ......................... , ...................................................................... ' ......................................... 1
Attachment 2 ......................................................................................................................................... 1
Attachment 3 ......................................................................................................................................... 1
Attachment 4 ................................................................................... , ..................................................... 1
Attachment 5 ................................................................... , ...................................................................... 3
Attachment 6 ......................................................................................................................................... 1
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the __ day of , 2012 between Exergy Development Group
of Idaho, LLC ("Seller" or "The Project") and Idaho Power Company -Delivery ("Company", or
"Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller'S power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 -One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
5. Effective Date, Term, Termination and Disconnection.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 2 of 9
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and
remain effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facility will be disconnected from the Company's transmission/distribution system. The
termination or expiration of this Agreement shall not relieve either Party of its liabilities
and obligations, owed or continuing at the time of the termination. The provisions of this
Section shall survive termination or expiration of this Agreement.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of
the practices, methods and acts engaged in or approved by a significant portion of the electric
industry during the relevant time period, or any of the practices, methods and acts which, in the
exercise of reasonable judgment in light of the facts known at the time the decision was made,
could have been expected to accomplish the desired result at a reasonable cost consistent with
good business practices, reliability, safety and expedition. Good Utility Practice is not intended
to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to
be acceptable practices, methods, or acts generally accepted in the region. Good Utility
Practice includes compliance with WECC or NERC requirements. Payment of lost revenue
resulting from temporary disconnection shall be governed by the power purchase agreement.
5.3.1 Emergency Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to
endanger life or property; or (2) that, in the case of the Company, is imminently likely (as
determined in a non-discriminatory manner) to cause a material adverse effect on the
security of, or damage to the Company's transmission/distribution system, the
Company's Interconnection Facilities or the equipment of the Company's customers; or
(3) that, in the case of the Seller, is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the reliability and security
of, or damage to, the Generation Facility or the Seller's Interconnection Facilities. Under
Emergency Conditions, either the Company or the Seller may immediately suspend
interconnection service and temporarily disconnect the Generation Facility. The
Company shall notify the Seller promptly when it becomes aware of an Emergency
Condition that may reasonably be expected to affect the Seller's operation of the
Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the
Company's equipment or service to the Company's customers. To the extent
information is known, the notification shall describe the Emergency Condition, the extent
of the damage or deficiency, the expected effect on the operation of both Parties'
facilities and operations, its anticipated duration, and the necessary corrective action.
5.3.2 Routine Maintenance, Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No. 101 Page 3 of 9
and temporarily disconnect the Generation Facility from the Company's
transmission/distribution system when necessary for routine maintenance, construction,
and repairs on the Company's transmission/distribution system. The Company will
make a reasonable attempt to contact the Seller prior to exercising its rights to interrupt
interconnection or curtail deliveries from the Seller's Facility. Seller understands that in
the case of emergency circumstances, real time operations of the electrical system,
and/or unplanned events, the Company may not be able to provide notice to' the Seller
prior to interruption, curtailment or reduction of electrical energy deliveries to the
Company. The Company shall use reasonable efforts to coordinate such reduction or
temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of significant Facility
maintenance for that calendar year and the Company and Seller shall mutually agree as
to the acceptability of the proposed schedule. The Parties determination as to the
acceptability of the Sellers timetable for scheduled maintenance will take into
consideration Good Utility Practices, Idaho Power system requirements and the SeIler'S
preferred schedule. Neither Party shall unreasonably withhold acceptance of the
proposed maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and
Generation Facility maintenance schedules such that they occur simultaneously. Seller
shall provide and maintain adequate protective equipment sufficient to prevent damage
to the Generation Facility and Seller-furnishE~d Interconnection Facilities. In some cases,
some of Sellers protective relays will provide back-up protection for Idaho Power's
facilities. In that event, Idaho Power will test such relays annually and Seller will pay the
actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's
transmission/distribution system. The Company shall use reasonable efforts to provide
the Seller with prior notice. If prior notice is not given, the Company shall, upon request,
provide the Seller written documentation after the fact explaining the circumstances of
the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller's Generation
Facility may cause disruption or deterioration of service to other customers served from
the same electric system, or if operating the Generation Facility could cause damage to
the Company's transmission/distribution system or other affected systems. Supporting
documentation used to reach the decision to disconnect shall be provided to the Seller
upon request. If, after notice, the Seller fails to remedy the adverse operating effect
within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless
the provisions of Article 5.3. 1 apply.
5.3.7 Modification of the Generation Facility. The Seller must receive written
authorization from the Company before making any change to the Generation Facility
that may have a material impact on the safety or reliability of the Company's
transmission/distribution system. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Good Utility Practice. If the Seller makes
such modification without the Company's prior written authorization, the latter shall have
the right to temporarily disconnect the Generation Facility.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 4 of 9
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's
transmission/distribution system to their normal operating state as soon as reasonably
practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power.
Idaho Power may, in accordance with Good Utility Practices, upon one hundred eighty
(180) days' notice to the Seller, change its nominal operating voltage level by more than
ten percent (10%) at the Point of Delivery, in which case Seller shall modify, at Idaho
Power's expense, Seller's equipment as necessary to accommodate the modified
nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate,
maintain, replace, and remove Idaho Power's Metering Equipment, Interconnection
Equipment, Disconnection Equipment, Protection Equipment and other Special Facilities
necessary or useful to this Agreement, including adequate and continuing access rights
on property of Seller. Seller warrants that it has procured sufficient easements and
rights-of-way from third parties so as to provide Idaho Power with the access described
above. All documents granting such easements or rights-of-way shall be subject to
Idaho Power's approval and in recordable form.
5.4.2 Use of Public Rights-of-Wav. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of
duplicate electric lines being constructed in close proximity. Therefore, subject to Idaho
Power's compliance with Paragraph 5.4.4, Seller agrees that should Seller seek and
receive from any local, state or federal governmental body the right to erect, construct
and maintain Seller-fumished Interconnection Facilities upon, along and over any and all
public roads, streets and highways, then the use by Seller of such public right-of-way
shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction and/or maintenance of electric distribution and transmission facilities and
Idaho Power may claim use of such public right-of-way for such purposes at any time.
Except as required by Paragraph 5.4.4, Idaho Power shall not be required to
compensate Seller for exercising its rights under this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission
facilities to Seller's Interconnection Facilities, may reconstruct Seller's Interconnection
Facilities to accommodate Idaho Power's usage or Idaho Power may construct its own
distribution or transmission facilities along, over and above any public right-of-way
acquired from Seller pursuant to Paragraph 5.4.2, attaching Seller's Interconnection
Facilities to such newly constructed facilities. Except as required by Paragraph 5.4.4,
Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same condition, both financially and electrically, as Seller existed prior
to Idaho Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties
agree that the exercise by Idaho Power of any of the rights enumerated in Paragraphs
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 5 of9
5.4.2 and 5.4.3 shall; (1) comply with all applicable laws, codes and Good Utility
Practices, (2) equitably share the costs of installing, owning and operating jOintly used
facilities and rights-of-way. If the Parties are unable to agree on the method of
apportioning these costs, the dispute will be submitted to the Commission for resolution
and the decision of the Commission will be binding on the Parties, and (3) shall provide
Seller with an interconnection to Idaho Power's system of equal capacity and durability
as existed prior to Idaho Power exercising its rights under this Paragraph 5.4.
6. Assignment. Liability, Indemnity, Force majeure, Conseguential Damages and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6. 1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnity.
6.3. 1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
Idaho Power Company Generator Interconnection Agreement # 156
I,P.U.C. No. 29, Tariff No. 101 Page 6 of 9
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 7 of 9
6.5 Default and Material Breaches.
6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default'J, the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carry the following
insurance coverage:
7.1 Comprehensive General Liability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A. M. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notify Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7. 1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breach.
8. Miscellaneous.
8. 1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its proVisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law principles.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 8 of 9
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u .C. No. 29, Tariff No. 101
Seller's Operating Representative:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, 10 83702
Ph: 208-336-9793
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
Page 9 of 9
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Seller
Name:
Title: ---------------------------------------------------------------------------------
Date:
For the Company
Name:
Title: Manager, Grid Operations -Idaho Power Company, Delivery
Date:
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 3
Attachment 1
Description and Costs of the Generation Facility. Interconnection Facilities and Meterinq
Equipment
Type of Interconnection Service:
Full Output:
Nominal Delivery Voltage:
Interconnection Details
Studied as an Idaho Power Network Resource under PURPA
18MW
34.5 kV
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
substation. The total project output is 18 MW.
Interconnection Point
The Interconnection Point for the lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is 800N and
1900W (in Sections 14, 22, 23, 26, 27, 34 and 35 of T1, R32E and Section 2 &3 of T2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point. A
drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install nine Gamesa 2.0MW wind turbines, the Power collector system to, and including
the step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOlC") -see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
The Seller will provide a DNP 3.0 serial data connection to the local Idaho Power Company SCADA
RTU when any communication with Seller-owned and maintained equipment is required for GOlC,
voltage control or other plant monitoring or control. Preliminary points lists and functional description
can be obtained from Idaho Power's assigned Project leader.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
1. One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
2. One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power
Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 3
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Ground Fault Equipment
The Seller will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements ,
The Seller will provide to IPCO a surveyed (Metes & Bounds) legal description along with exhibit map
for IPCO's facilities. After the legal description has Ibeen delivered to IPCO for review, IPCO will supply
to the Seller a completed IPCO easement for signature by the land owner of record. Once the
signatures have been secured, the Seller will return the signed easement to IPCO for recording. IPCO
construction will not proceed until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the Interconnection Point, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4), SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
protector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned, operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are provided in 2011 dollars
-lion
Generation Facilities:
. ___ Pro,!:ide~.!?y ~~n~r:
'Interconnection F acitities: ---
()ve.rhead: Gep:er:atigIl ~~erc~~.Il~c~~o~ lacl<~ge
(S.ee 4 T!1C.!!¥!JJY! ~fo.!J!roie~~ G~l!,!d Total)
---~--
:Seller
IPeo
TOTAL
$N/A
$225,000
__ $~~5100Q
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 3 of 3
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facility, Interconnection Faci(ities, Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u .C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 3
Milestones:
1. Idaho Power Company agrees only to the Construction timelines under its direct control
provided in the Facility Study Report for this Project.
2. These milestones will begin, and the construction schedule referenced below, will only be valid
upon receipt of funding in full from the Seller or their authorized third party no later than the date
set forth below for such payment. Additionally, failure by Seller to make the required payments
as set forth in this Agreement by the date(s) specified below will be a material breach of this
Agreement, which may result in any or all of the following: (i) loss of milestone dates and
construction schedules set forth below: (ii) immediate termination of this Agreement by Idaho
Power; (iii) removal from the generator interconnection queue.
Critical milestones and responsibility as agreed to by the Parties:
ResP'Onsible
Dgte Pa MiI_estones ~--~~~~------~-----e~l~? ____ . _____ -j~~/!*!':... _______ . ___ .. _. __ 'C~~struct;~~f'!.ndi'!...g rf! .... cei~ed b~ Idaho Power _ . _...-;
9/1 /12 'Seller !Customer GOLC/Reactive controls ready to connect
,9/1-5/12 -.-.... /tPCO -----ilPCO Construction-Complete -------
.-.----. --. -........ . -.-r.=------,----_ .... --------.-------i.9/3~~._ ... I1!'CO _____ :'!c..O Commiss;~~ing CO'!!~~!!.te __ . __________ . __ ",_
'9/30/12 -lIPCO l Project Leader issues Construction Complete Letter , _ _ _ _J_ .. __ .... ~ ____ L-________ ._ __ _. . ___ . .,
~?/30/1~_._._1eller _____ .. _.Icus~ome~_testinf! begin!.........._,_ .... _. __ .-~_ _ _______ :
'10/31/12 ISeller ,Customer's requested In-Service Date
.... --_ .. --' -----_._----.---.-------------_ .... _---._--
Agreed to by:
For the Interconnection Customer ______________ Date _____ _
For the Transmission Provider
Idaho Power Company, Delivery ______________ Date. _____ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Seller's Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
The project is required to comply with the applicable Voltage and Current Distortion Limits found in
IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in
Electrical Power Systems or any subsequent standards as they may be updated from time to time.
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Generator Output Limit Control (liRe-dispatch" or "GOLe'?
The Project will be subject to reductions directed by Idaho Power Company Grid Operations during
transmission system contingencies and other reliability events. When these conditions occur, the
Project will be subject to Generator Output Limit Control ("GOlC") and have equipment capable of
receiving signals from Idaho Power for GOlC. Generator Output Limit Control will be a setpoint from
Idaho Power to the Project indicating maximum output allowed.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Meteorological Data
Historical wind data -Within 60 days after execution of this Agreement, the Seller shall provide Idaho
Power with the following:
a) historical wind data in an electronic format from the proposed Facility site or for a location
within two miles of the Facility site.
b) a third party wind assessment study report used by Seller to value investment in the Facility.
No later than 30 days prior to the Commercial Operation Date, the Seller shall have either:
a) Erected at the site at least one (1) high quality, approximate hub-height (plus or minus 20
meters), permanent, meteorological wind measurement tower(s) at location(s) on the
site equipped with:
(I) Two (2) anemometers per tower;
(ii) Two (2) air temperature sensors per tower;
(iii) One (1) barometric pressure sensor (with DCP sensor); and
(iv) Two (2) wind vanes per tower, or
b) Arranged to provide Idaho Power approXimate hub-height wind speed, wind direction, air
temperature, barometric pressure, and data from a meteorological wind measurement
tower within two miles of the Facility site.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Facility availability status shall be provided no later than within the calendar month following the
month of the Commercial Operation Date. Failure by the Seller to operate and maintain this
equipment to provide such meteorological and turbine availability data in a manner to provide
reasonably accurate and dependable data for the full term of this Agreement shall be an event
of Default under paragraph 6.5.1 .
The associated cost for obtaining this data is the Sellers responsibility and was not included in the
Facility Study Report cost estimate.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.c. No. 29. Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point. It is
preferable to bring each generating unit online separately to minimize voltage flicker on the distribution
system.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No.1 01 Page 1 of 1
Attachment 6
Company's Description of Special Facilities and Upgrades Required to Integrate the Generation
Facility and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local service
transformer on the feeder side of the substation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
The following good faith estimates are provided in 2011 dollars:
DeS'c i non
S-,~bstaJ!.~~T!P.g"-.lJdes: __________________________ ... __ .. ____ -"_. ____ ~_~ _______ " ... __ _
L!<;_PJ?~~~~___ _ _ ___ ._ ... __ ... _yco _____ . ___ $2,09Q
'L()c.~l_ §~r.Yi~e_Jr~~f()~~!/T!~~f~r Iri£ _. .. _.__ 1Pc9 _ _ ~ _ $30,000
TOT~i... __
-------
PROJECT GRAND TOTAL $257,0001
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 21
May 23,2012
Mr. Dustin Shively
Exergy Development Group of Idaho
802 W. Bannock, Suite 1200
Boise, Idaho 83702
Subject: Lava Beds Wind Project -GI #156
Dear Mr. Shively,
An IDACORP Company
Enclosed is a copy of the Final Generator Interconnection Agreement for Lava Beds Wind
Project. We sent this to you on January 25,2012, and did not receive anything back. As of May
23,2012, we do not have an executed GIA nor funding for this project.
Failure to submit an executed copy of this GIA and have funding in place by June 25, 2012, will
result in Idaho Power terminating the present generator interconnection request and withdrawing
the Lava Beds Wind Project from the generator interconnection queue. If you wish to proceed
forward with the interconnection, you must execute the GIA by signing and submitting both
copies and pay the required funding by June 25, 2012. We will return a set of fully executed
pages for your files. In addition, Idaho Power must receive your proof of site control and
insurance certification pursuant to Section 7 of the agreement. Please let me know if you have
any further questions.
Sincerely,
Josh Harris
Operations Analyst
Idaho Power Company
208-388-5751
cc: Donovan Walker/IPC
Lisa Loomis/IPC
Tess Park/IPC
122 J W. Idaho 51. (83702)
P,O. Box 70
Boise, 10 B3707
Idaho Power Company Generator Interconnection Agreement # 156
I,P.U.C. No. 29, Tariff No. 101
May 23,2012
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No.1 01 Page 1 of 1
TABLE OF CONTENTS
RECITALS .............................................................................................................................................. 1
AGREEMENTS ...................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. This Agreement is not an agreement to purchase Seller's power ......................................... 1
4. Attachments ......................................................................................................................... 1
6. Assignment. Liability, Indemnitv. Force majeure. Consequential Damages and Default. ...... 4
7. Insurance ............................................................................................................................. 7
8. Miscellaneous ...................................................................................................................... 7
9. Notices ................................................................................................................................. 8
10. Signatures ............................................................................................................................ 9
Attachment 1 .......................................................................................................................................... 1
Attachment 2 .......................................................................................................................................... 1
Attachment 3 ......................... ~ ................................................................................................................. 1
Attachment 4 .......................................................................................................................................... 1
Attachment 5 .......................................................................................................................................... 2
Attachment 6 ........................................................................................................................................... 1
Attachment 7 .......................................................................................................................................... 2
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the __ day of • 2012 between Exergy Development Group
of Idaho, LLC ("Seller" or "The Project") and Idaho Power Company -Delivery ("Company", or
"Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 -One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
Attachment 7 -Generator Interconnection Control Requirements.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 9
5. Effective Date, Term, Termination and Disconnection.
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and remain
effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5. 2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facility will be disconnected from the Company's transmission/distribution system. The termination or
expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or
continuing at the time of the termination. The provisions of this Section shall survive termination or
expiration of this Agreement.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of the
practices, methods and acts engaged in or approved by a significant portion of the electric industry
during the relevant time period, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost consistent with good business practices,
reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or
acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC
requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by
the power purchase agreement.
5.3. 1 Emergency Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or
property; or (2) that, in the case of the Company, is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the security of, or damage to the
Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment
of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on the reliability and security of, or
damage to, the Generation Facility or the Seller's Interconnection Facilities. Under Emergency
Conditions, either the Company or the Seller may immediately suspend interconnection service and
temporarily disconnect the Generation Facility. The Company shall notify the Seller promptly when it
becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller's
operation of the Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the Company's equipment
or service to the Company's customers. To the extent information is known, the notification shall
describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the
operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective
action.
5.3.2 Routine Maintenance, Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility and temporarily
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 3 of9
disconnect the Generation Facility from the Company's transmission/distribution system when
necessary for routine maintenance, construction, and repairs on the Company's
transmission/distribution system. The Company will make a reasonable attempt to contact the Seller
prior to exercising its rights to interrupt interconnection or curtail deliveries from the Seller's Facility.
Seller understands that in the case of emergency circumstances, real time operations of the electrical
system, and/or unplanned events, the Company may not be able to provide notice to the Seller prior to
interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company
shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that
calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed
schedule. The Parties determination as to the acceptability of the Seller'S timetable for scheduled
maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and
the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed
maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and Generation Facility
maintenance schedules such that they occur simultaneously. Seller shall provide and maintain
adequate protective equipment sufficient to prevent damage to the Generation Facility and Seller­
furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide
back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually
and Seller will pay the actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's transmission/distribution system.
The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not
given, the Company shall, upon request, provide the Seller written documentation after the fact
explaining the circumstances of the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller's Generation Facility may cause
disruption or deterioration of service to other customers served from the same electric system, or if
operating the Generation Facility could cause damage to the Company's transmission/distribution
system or other affected systems. Supporting documentation used to reach the decision to disconnect
shall be provided to the Seller upon request. If, after notice, the Seller fails to remedy the adverse
operating effect within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless the provisions of
Article 5.3. 1 apply.
5.3. 7 Modification of the Generation Facility. The Seller must receive written
authorization from the Company before making any change to the Generation Facility that may have a
material impact on the safety or reliability of the Company's transmission/distribution system. Such
authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good
Utility Practice. If the Seller makes such modification without the Company's prior written authorization,
the latter shall have the right to temporarily disconnect the Generation Facility.
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's transmission/distribution system to
their normal operating state as soon as reasonably practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 4 of 9
may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the
Seifer, change its nominal operating voltage level by more than ten percent (10%) at the Point of
Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary
to accommodate the modified nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace,
and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment,
Protection Equipment and other Special Facilities necessary or useful to this Agreement, including
adequate and continuing access rights on property of Seller. Seller warrants that it has procured
sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access
described above. All documents granting such easements or rights-of-way shall be subject to Idaho
Power's approval and in recordable form.
5.4.2 Use of Public Rights-of-Wav. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of duplicate
electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with
Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal
governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities
upon, along and over any and all public roads, streets and highways, then the use by Seller of such
public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction and/or maintenance of electric distribution and transmission facilities and Idaho Power
may claim use of such public right-of-way for such purposes at any time. Except as required by
Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission facilities to
Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate
Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along,
over and above any public right-of-way acquired from Seller pursuant to Paragraph 5.4.2, attaching
Seller's Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph
5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this
Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same condition, both financially and electrically, as Seller existed prior to Idaho
Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise
by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all
applicable laws, codes and Good Utility Practices, (2) equitably share the costs of installing, owning
and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method
of apportioning these costs, the dispute will be submitted to the Commission for resolution and the
decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an
interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho
Power exercising its rights under this Paragraph 5.4.
6. Assignment. UabilitVr IndemnitVr Force majeure. Consequential Damages and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 50f9
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the aSSigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnitv.
6.3. 1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No. 101 Page 60f9
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 7 of 9
6.5 Default and Material Breaches.
6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default'?, the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carry the following
insurance coverage:
7. 1 Comprehensive General Liability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an AM. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notify Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7. 1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breach.
8. Miscellaneous.
8. 1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law principles.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 8 of 9
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101
Seller's Operating Representative:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
Page 9 of 9
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Seller
Name: ------------------------------------------------
Title: __________________________________ _
Date: __________________ __
For the Company
Name:
Title: Director, Load Serving Operations -Idaho Power Company
Date:
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 1
Description and Costs of the Generation Facility. Interconnection Facilities and Metering
Equipment
Interconnection Details
Type of Interconnection Service: Studied as an Idaho Power Network Resource under PURPA
Full Output: 18 MW
Nominal Delivery Voltage: 34.5 kV
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
substation. The total project output is 18 MW.
Interconnection Point
The Interconnection Point for the lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is 800N and
1900W (in Sections 14, 22, 23, 26, 27, 34 and 35 of T1, R32E and Section 2 &3 of T2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point.
A drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install nine Gamesa 2.0MW wind turbines, the Power collector system to, and including
the step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOlC") -see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
The Seller will provide a DNP 3.0 serial data connection to the local Idaho Power Company SCADA
RTU when any communication with Seller-owned and maintained equipment is required for GOlC,
voltage control or other plant monitoring or control. Preliminary points lists and functional description
can be obtained from Idaho Power's aSSigned Project leader.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 2 of 2
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications troUble-shooting of Idaho
Power owned equipment.
Ground Fault Equipment
The Seller will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements
The Seller will provide to IPCO a surveyed (Metes & Bounds) legal description along with exhibit map
for IPCO's facilities. After the legal description has been delivered to IPCO for review, IPCO will supply
to the Seller a completed IPCO easement for signature by the land owner of record. Once the
signatures have been secured, the Seller will return the signed easement to IPCO for recording. IPCO
construction will not proceed until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the Interconnection Point, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4), SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
protector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned , operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are provided in 2011 dollars
DeScriptigj)
Generation Facilities:
Provided by Seller
Interconnection Facilities:
Overhead Generation Interconnection Package
(See ATTACHMENT 6 for Project Grand Total)
TOTAL
Ownership
Seller
IPeo
$N/A
$225,000
$225,000
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No.1 01 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facility. Interconnection Facilities, Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 3
Milestones
Idaho Power Company agrees only to the Construction timelines under its direct control provided in the
Facility Study Report for this Project.
These milestones will begin, and the construction schedule referenced below, will only be valid upon
receipt of funding in full from the Seller or their authorized third party no later than the date set forth
below for such payment. Additionally, failure by Seller to make the required payments as set forth in
this Agreement by the date(s) specified below will be a material breach of this Agreement, which may
result in any or all of the following: (i) loss of milestone dates and construction schedules set forth
below: (ii) immediate termination of this Agreement by Idaho Power; (iii) removal from the generator
interconnection queue.
Critical milestones and responsibility as agreed to b the Parties:
D~te
6/23/12
12/23/12
117/13
1/22/13
1/22/13
1/22/13
2/22/13
Agreed to by:
Responsible
Par!)'
Seller
Seller
-
IPCO
IPCO
IPCO
Seller
Seller
~nestones
Construction funding received by Idaho Power ----Customer GOLC/Reactive controls ready to connect
lPCO Construction Complete
IPCO Commissioning Complete
--.----~
Project Leader issues Construction Complete Letter
Customer testing begins
-
Customer's requested In-Service Date
For the Interconnection Customer _______________ ,Date _____ _
For the Transmission Provider
Idaho Power Company Date ----------------------
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Seller's Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
The project is required to comply with the applicable Voltage and Current Distortion Limits found in
IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in
Electrical Power Systems or any subsequent standards as they may be updated from time to time.
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Generator Output Limit Control (liRe-dispatch" or "GOLC'?
The Project will be subject to reductions directed by Idaho Power Company Grid Operations during
transmission system contingencies and other reliability events. When these conditions occur, the
Project will be subject to Generator Output Limit Control ("GOlC") and have equipment capable of
receiving signals from Idaho Power for GOlC. Generator Output Limit Control will be a setpoint from
Idaho Power to the Project indicating maximum output allowed.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Meteorological Data
Historical wind data -Within 60 days after execution of this Agreement, the Seller shall provide Idaho
Power with the following:
a) historical wind data in an electronic format from the proposed Facility site or for a location within two
miles of the Facility site.
b) a third party wind assessment study report used by Seller to value investment in the Facility.
No later than 30 days prior to the Commercial Operation Date, the Seller shall have either:
a) Erected at the site at least one (1) high quality, approximate hub-height (plus or minus 20 meters),
permanent, meteorological wind measurement tower(s) at location(s) on the site equipped with:
(I) Two (2) anemometers per tower;
(ii) Two (2) air temperature sensors per tower;
(iii) One (1) barometric pressure sensor (with DCP sensor); and
(iv) Two (2) wind vanes per tower, or
b) Arranged to provide Idaho Power approximate hub-height wind speed, wind direction, air
temperature, barometric pressure, and data from a meteorological wind measurement tower within two
miles of the Facility site.
Facility availability status shall be provided no later than within the calendar month following the month
of the Commercial Operation Date. Failure by the Seller to operate and maintain this equipment to
provide such meteorological and turbine availability data in a manner to provide reasonably accurate
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 2 of 2
and dependable data for the full term of this Agreement shall be an event of Default under paragraph
6.5.1.
The associated cost for obtaining this data is the Sellers responsibility and was not included in the
Facility Study Report cost estimate.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I,P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point. It is
preferable to bring each generating unit online separately to minimize voltage flicker on the distribution
system.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 6
Company's Description of Special Facilities and Upgrades Required to Integrate the Generation
Facility and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
Substation Upgrades
Idaho Power will upgrade the L Te on the transformer at Haven Substation and install a local service
transformer on the feeder side of the substation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
The following good faith estimates are provided in 2011 dollars:
Local Servic~ Transfo1)11erlTral!~fer Trip
TOTAL
Interconnection costs (from Attachment 1) TOTAL
[PROJECT GRAND TOTAL
Ownership Cost Estimate
IPca
IPCa
,$2,000
$3Q,QQQ
$32,000
$225,000
$257,000
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 7
Generation Interconnection Control Requirements
Generator Output Limit Control (GOLC)
IPC requires Interconnected Power Producers to accept GOlC signals from our EMS.
The GOlC signals will consist of two points shared between the IPC EMS and the Customer's
Generator Controller:
GOlC Setpoint: An analog output that contains the MW value the Customer should curtail to, should a
GOlC request be made via the GOlC On/Off discrete output Control point.
An Analog Input feedback point must be updated (to reflect the GOlC setpoint value) by the Customer
Controller upon the Controller's receipt of the GOlC setpoint change, with no intentional delay.
GOlC On/Off: A discrete output (DO) control point with latching Off/On states. Following a "GOlC On"
control, the Customer Controller will run power output back to the MW value specified in the GOlC
Setpoint. Following a "GOlC Off' control, the Customer is free to run to maximum possible output.
A Discrete Input feedback point must be updated (to reflect the GOlC DO state) by the Customer
Controller upon the Controller's receipt of the GOlC DO state change, with no intentional delay.
If a GOlC control is issued, it is expected to see MW reductions start within 1 minute and plant output
to be below the GOlC Setpoint value within 10 minutes.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 20f 2
Generation Interconnection Data Points Requirements
Digital Inputs to IPCo (DNP Obj. 01, Var. 2)
Index Description State (0/1) Comments:
0 52A Customer Capacitor Breaker (if present) Open/Closed Sourced at substation
1 GOlC Off/On Control Received (Feedback) Off/On Provided by Customer
Digital Outputs to Customer (DNP Obj. 10, Var.1)
Index Description Comments:
0 GOlC Off/On Provided by IPCO
NOTE: GOlC Setpoint indicates MW value to curtail to when GOlC Off/On DO is ON.
Analog Inputs to IPCo (DNP Obj. 30, Var. 2)
Raw Raw EU EU
Index Description High low High EU low Units Comments:
GOlC Setpoint Value Received -Provided by
0 (Feedback) 32767 32768 TBD TBD MW Customer
Spare -hold for Voltage Control Setpoint -Provided by
1 Value Rec'd (Feedback) 32767 32768 TBD TBD kV Customer
-Provided by
2 Maximum Park Generating Capacity 32767 32768 TBD TBD MW Customer
-Provided by
3 Number of Turbines In High Speed Cutout 32767 32768 32767 -32768 Units Customer
-For Provided by
4 Ambient Tem~erature 32767 32768 327.67 -327.68 C Customer
-Provided by
5 Wind Direction 32767 32768 3276.7 -3276.8 Deg Customer
MPH
-or Provided by
6 Wind Speed 32767 32768 327.67 -327.68 m/s Customer
Analog Outputs to Customer (DNP Obj. 40, Var. 2)
Raw Raw EU EU EU
Index Description High low High low Units Comments:
-
0 GOlC Setpoint 32767 32768 TBD TBD MW Provided by IPCO
-
1 Spare -hold for Voltage Control Setpoint 32767 32768 TBD TBD kV Provided by I PCO
NOTE: Curtailment Setpoint indicates MW value to Curtail to when Curtailment Off/On DO is ON.
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER C.OMPANY
ATTACHMENT 22
June 25, 2012
Idaho Power Company
Attn: Josh Harris
1221 West Idaho Street
Boise, ID 83702
RE: Lava Beds Wind Park -GI #156
Dear Mr. Harris,
Exergy has received your letter and Generator Interconnection Agreement (GIA) delivered on May
23,2012 and is pleased to submit the enclosed and executed GlA. In your May 23,2012 letter you
state that Exergy must submit payment in advance of the June 25, 2012 deadline. It has been
Exergy's recent experience that an executed GlA submitted to Idaho Power does not come with the
reasonable expectation that it will be countersigned. For this reason Exergy will await Idaho Power's
countersignature to this GlA before submitting payment.
Please also note that Exergy has revised the dates in the table in Attachment 3 to reflect a
Customer's Requested In-Service Date of December 15,2012.
Best Regards,
Joshua Gunderson, Project Engineer
phone: [phone]
email: [e-mail]
Exergy Development Group, 802 W. Bannock, 12th Floor, Boise, 10 phone: [phone] fax: [phone]
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101
May 23,2012
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
TABLE OF CONTENTS
RECITALS ............................................................................................................................................. 1
AGREEMENTS ..................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. This Agreement is not an agreement to purchase Seller's power ......................................... 1
4. Attachments ......................................................................................................................... 1
6. Assignment, Liabilitv. Indemnitv, Force majeure, Conseauential Damaaes and Default. ...... 4
7. Insurance ............................................................................................................................. 7
8. Miscellaneous ....................................................................................................................... 7
9. Notices ............................. -. .................................................................................................. 8
10. Signatures ............................................................................................................................ 9
Attachment 1 ......................................................................................................................................... 1
Attachment 2 ......................................................................................................................................... 1
Attachment 3 .......................................................................................................................................... 1
Attachment 4 ......................................................................................................................................... 1
Attachment 5 ......................................................................................................................................... 2
Attachment 6 ......................................................................................................................................... 1
Attachment 7 ......................................................................................................................................... 2
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the __ day of , 2012 between Exergy Development Group
of Idaho, LLC ("Seller" or "The Project") and Idaho Power Company -Delivery ("Company", or
"Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller'S Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering EqUipment.
Attachment 2 -One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
Attachment 7 -Generator Interconnection Control Requirements.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 2 of9
5. Effective Date. Term. Termination and Disconnection.
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and remain
effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facility will be disconnected from the Company's transmission/distribution system. The termination or
expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or
continuing at the time of the termination. The provisions of this Section shall survive termination or
expiration of this Agreement.
5.3 Temporarv Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good utility Practice." Good Utility Practice means any of the
practices, methods and acts engaged in or approved by a Significant portion of the electric industry
during the relevant time period, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost consistent with good business practices,
reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or
acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC
requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by
the power purchase agreement.
5.3.1 Emergencv Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or
property; or (2) that, in the case of the Company, is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the security of, or damage to the
Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment
of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on the reliability and security of, or
damage to, the Generation Facility or the Seller's Interconnection Facilities. Under Emergency
Conditions, either the Company or the Seller may immediately suspend interconnection service and
temporarily disconnect the Generation Facility. The Company shall notify the Seller promptly when it
becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller'S
operation of the Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the Company's equipment
or service to the Company's customers. To the extent information is known, the notification shall
describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the
operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective
action.
5.3.2 Routine Maintenance. Construction. and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility and temporarily
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No. 101 Page 3 of9
disconnect the Generation Facility from the Company's transmission/distribution system when
necessary for routine maintenance, construction, and repairs on the Company's
transmission/distribution system. The Company will make a reasonable attempt to contact the Seller
prior to exercising its rights to interrupt interconnection or curtail deliveries from the Seller's Facility.
Seller understands that in the case of emergency circumstances, real time operations of the electrical
system, and/or unplanned events, the Company may not be able to provide notice to the Seller prior to
interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company
shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of significant Facility maintenance for that
calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed
schedule. The Parties detennination as to the acceptability of the Seller'S timetable for scheduled
maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and
the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed
maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and Generation Facility
maintenance schedules such that they occur simultaneously. Seller shall provide and maintain
adequate protective equipment sufficient to prevent damage to the Generation Facility and Seller­
furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide
back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually
and Seller will pay the actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's transmission/distribution system.
The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not
given, the Company shall, upon request, provide the Seller written documentation after the fact
explaining the circumstances of the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller's Generation Facility may cause
disruption or deterioration of service to other customers served from the same electric system, or if
operating the Generation Facility could cause damage to the Company's transmission/distribution
system or other affected systems. Supporting documentation used to reach the decision to disconnect
shall be provided to the Seller upon request. If, after notice, the Seller fails to remedy the adverse
operating effect within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless the provisions of
Article 5.3.1 apply.
5.3. 7 Modification of the Generation Facility. The Seller must receive written
authorization from the Company before making any change to the Generation Facility that may have a
material impact on the safety or reliability of the Company's transmission/distribution system. Such
authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good
Utility Practice. If the Seller makes such modification without the Company's prior written authorization,
the latter shall have the right to temporarily disconnect the Generation Facility.
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's transmission/distribution system to
their nonnal operating state as soon as reasonably practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u .C. No. 29, Tariff No. 101 Page 4 of9
may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the
Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of
Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller'S equipment as necessary
to accommodate the modified nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace,
and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment,
Protection Equipment and other Special Facilities necessary or useful to this Agreement, including
adequate and continuing access rights on property of Seller. Seller warrants that it has procured
sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access
described above. All documents granting such easements or rights-of-way shall be subject to Idaho
Power's approval and in recordable form.
5.4.2 Use of Public Rights-of-Wav. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of duplicate
electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with
Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal
governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities
upon, along and over any and all public roads, streets and highways, then the use by Seller of such
public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction andlor maintenance of electric distribution and transmission facilities and Idaho Power
may claim use of such public right-of-way for such purposes at any time. Except as required by
Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exerCising its rights under
this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution andlor transmission facilities to
Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate
Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along,
over and above any public right-of-way acquired from Seller pursuant to Paragraph 5.4.2, attaching
Seller'S Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph
5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this
Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same condition, both finanCially and electrically, as Seller existed prior to Idaho
Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise
by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all
applicable laws, codes and Good Utility Practices, (2) equitably share the costs of installing, owning
and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method
of apportioning these costs, the dispute will be submitted to the Commission for resolution and the
decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an
interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho
Power exercising its rights under this Paragraph 5.4.
6. Assignment. Liability, Indemnity, Force majeure. Consequential Damages and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 50f9
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting,
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attomey's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnity.
6.3.1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the proVisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 6 of9
shall be a Matenal Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly 0; in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever petfonnance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of petformance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I,P.U.C. No. 29, Tariff No. 101 Page 7of9
6.5 Default and Material Breaches.
6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "DefauIr' or an "Event of Default'), the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously cany the following
insurance coverage:
7.1 Comprehensive General Liability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A. M. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A proVision stating that such policy shall not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notify Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breach.
B. Miscellaneous.
B.1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law principles.
B.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 8 of9
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice'~ shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, 10 83702
Ph: 208-336-9793
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101
Seller'S Operating Representative:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, 10 83702
Ph: 208-336-9793
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
Page 9 of9
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Seller
Name: ____________________________________________ __
Title: _______________________________ _
Date: ________________ _
For the Company
Name: ________________________________________ __
Title: Director, Load Serving Operations -Idaho Power Company
Date: __________________ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 1
Description and Costs of the Generation Facilitv. Interconnection Facilities and Metering
Equipment
Interconnection Details
Type of Interconnection Service: Studied as an Idaho Power Network Resource under PURPA
Full Output: 18 MW
Nominal Delivery Voltage: 34.5 kV
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
SUbstation. The total project output is 18 MW.
Interconnection Point
The Interconnection Point for the lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is 800N and
1900W (in Sections 14,22,23,26,27,34 and 35 ofT1, R32E and Section 2 &3 ofT2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point.
A drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install nine Gamesa 2.0MW wind turbines, the Power collector system to, and including
the step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOlC") -see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
The Seller will provide a DNP 3.0 serial data connection to the local Idaho Power Company SCADA
RTU when any communication with Seller-owned and maintained equipment is required for GOlC,
voltage control or other plant monitoring or control. Preliminary points lists and functional description
can be obtained from Idaho Power's assigned Project leader.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of2
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Ground Fault Equipment
The Seiler will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements
The Seller will provide to IPCO a surveyed (Metes & Bounds) legal description along with exhibit map
for IPCO's facilities. After the legal description has been delivered to IPCO for review, IPCO will supply
to the Seller a completed IPCO easement for Signature by the land owner of record. Once the
Signatures have been secured, the Seller will return the signed easement to IPca for recording. IPca
construction will not proceed until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interc~onnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the I nterconnection Point, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4) , SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
protector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned, operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are provided in 2011 dollars
Generation Facilities:
Provided by Seller
Interconnection Facilities:
Overhead Generation Interconnection Package
(See ATTACHMENT 6 for Project Grand Total)
TOTAL
----~--~~--------
Seller
IPCO
$N/A
$225,000
$225,000
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facility. Interconnection Facilities. Metering
Eguipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 3
Milestones
Idaho Power Company agrees only to the Construction timelines under its direct control provided in the
Facility Study Report for this Project.
These milestones will begin, and the construction schedule referenced below, will only be valid upon
receipt of funding in full from the Seller or their authorized third party no later than the date set forth
below for such payment. Additionally, failure by Seller to make the required payments as set forth in
this Agreement by the date(s) specified below will be a material breach of this Agreement, which may
result in any or all of the following: (i) loss of milestone dates and construction schedules set forth
below: (ii) immediate termination of this Agreement by Idaho Power; (iii) removal from the generator
interconnection queue.
6/30/12 Seller Construction funding received by Idaho Power once GIA is
_ __f!xegyted by lPCa
11/03/12 Seller Customer GaLC/Reactive controls ready to connect
---.. . - ----
11/10/13 IPca IPca Construction Complete
11/24/13 IPca IPca Commissioning Complete
11/24/13 IPca Project Leader issues Construction Complete Letter -11/24/12 Seller Customer testing begins
12/15/12 Seller Customer's requested In-Service Date
Agreed to by:
For the Interconnection Customer ______________ Oate _____ _
For the Transmission Provider
Idaho Power Company ______________ Oate _____ _
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Seller's Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
The project is required to comply with the applicable Voltage and Current Distortion Limits found in
IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in
Electrical Power Systems or any subsequent standards as they may be updated from time to time.
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Generator Output Limit Control (tiRe-dispatch" or "GOLC")
The Project will be subject to reductions directed by Idaho Power Company Grid Operations during
transmission system contingencies and other reliability events. When these conditions occur, the
Project will be subject to Generator Output Limit Control ("GOlC") and have equipment capable of
receiving signals from Idaho Power for GOlC. Generator Output Limit Control will be a setpoint from
Idaho Power to the Project indicating maximum output allowed.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Meteorological Data
Historical wind data -Within 60 days after execution of this Agreement, the Seller shall provide Idaho
Power with the following:
a) historical wind data in an electronic format from the proposed Facility site or for a location within two
miles of the Facility site.
b) a third party wind assessment study report used by Seller to value investment in the Facility.
No later than 30 days prior to the Commercial Operation Date, the Seller shall have either:
a) Erected at the site at least one (1) high quality, approximate hub-height (plus or minus 20 meters),
permanent, meteorological wind measurement tower(s) at location(s) on the site equipped with:
(I) Two (2) anemometers per tower;
(ii) Two (2) air temperature sensors per tower;
(iii) One (1) barometric pressure sensor (with DCP sensor); and
(iv) Two (2) wind vanes per tower, or
b) Arranged to provide Idaho Power approximate hub-height wind speed, wind direction, air
temperature, barometric pressure, and data from a meteorological wind measurement tower within two
miles of the Facility site.
Facility availability status shall be provided no later than within the calendar month following the month
of the Commercial Operation Date. Failure by the Seller to operate and maintain this equipment to
provide such meteorological and turbine availability data in a manner to provide reasonably accurate
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of2
and dependable data for the full term of this Agreement shall be an event of Default under paragraph
6.5.1 .
The associated cost for obtaining this data is the Sellers responsibility and was not included in the
Facility Study Report cost estimate.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.c. No. 29. Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point. It is
preferable to bring each generating unit online separately to minimize voltage flicker on the distribution
system.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 6
Company's Description of Special Facilities and Upgrades Required to Integrate the Generation
Facilitv and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local service
transformer on the feeder side of the substation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
The following good faith estimates are provided in 2011 dollars:
Substation _Upgrades:
LTC Upgrade
Local Service TransfonnerlTransfer Trip
TOTAL
Interconnection costs (from Attachment 1) TOTAL
IPROJECT GRAND TOTAL
IPCO
IPCO
_ ~2tOOO
$30,000
$32,000
$225,000
$257,000
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 2
Attachment 7
Generation Interconnection Control Requirements
Generator Output Limit Control (GOLC)
IPC requires Interconnected Power Producers to accept GOlC signals from our EMS.
The GOlC signals will consist of two points shared between the IPC EMS and the Customer's
Generator Controller:
GOlC Setpoint: An analog output that contains the MW value the Customer should curtail to, should a
GOlC request be made via the GOlC On/Off discrete output Control point.
An Analog Input feedback point must be updated (to reflect the GOlC setpoint value) by the Customer
Controller upon the Controller's receipt of the GOlC setpoint change, with no intentional delay.
GOlC On/Off: A discrete output (DO) control point with latching Off/On states. Following a "GOlC On"
control, the Customer Controller will run power output back to the MW value specified in the GOlC
Setpoint. Following a "GOlC Off" control, the Customer is free to run to maximum possible output.
A Discrete Input feedback point must be updated (to reflect the GOlC DO state) by the Customer
Controller upon the Controller's receipt of the GOlC DO state change, with no intentional delay.
If a GOlC control is issued, it is expected to see MW reductions start within 1 minute and plant output
to be below the GOlC Setpoint value within 10 minutes.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 2 of2
Generation Interconnection Data Points Requirements
Digital Inputs to IPCo (DNP Obj. 01 , Var. 2)
Index Description State (0/1) Comments:
0 52A Customer Capacitor Breaker (if present) Open/Closed Sourced at substation
1 GOlC Off/On Control Received (Feedback) Off/On Provided by Customer
Digital Outputs to Customer (ONP Obj. 10, Var.1)
Index Description Comments:
0 GOlC Off/On Provided by IPCO
NOTE: GOlC Setpoint indicates MW value to curtail to when GOlC Off/On DO is ON.
Analog Inputs to IPCo (DNP Obj. 30, Var. 2)
Raw Raw EU EU
Index Description High low High EU low Units Comments:
GOlC Setpoint Value Received -Provided by
0 (Feedback) 32767 32768 TBD TBD MW Customer
Spare -hold for Voltage Control Setpoint -Provided by
1 Value Rec'd (Feedback) 32767 32768 TBD TBD kV Customer
-Provided by
2 Maximum Park Generating Capacik 32767 32768 TBD TBD MW Customer
-Provided by
3 Number of Turbines In High Speed Cutout 32767 32768 32767 -32768 Units Customer
-For Provided by
4 Ambient Temperature 32767 32768 327.67 -327.68 C Customer
-Provided by
5 Wind Direction 32767 32768 3276.7 -3276.8 De~ Customer
MPH
-or Provided by
6 Wind Speed 32767 32768 327.67 -327.68 m/s Customer
Analog Outputs to Customer (ONP Obj. 40, Var. 2)
Raw Raw EU EU EU
Index Description High low High low Units Comments:
-
0 GOlC Setpoint 32767 32768 TBD TBD MW Provided bY'IPCO
-
1 Spare -hold for Voltage Control Setpoint 32767 32768 TBD TBD kV Provided by IPCO
NOTE: Curtailment Setpoint indicates MW value to Curtail to when Curtailment Off/On DO is ON.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 23
June 26,2012
Mr. Josh Gunderson, Project Engineer
Exergy Development Group of Idaho
802 W. Bannock, Suite 1200
Boise, Idaho 83702
Subject: Lava Beds Wind Project -GI #156
Dear Mr. Gunderson,
An IDACORP Company
This is in response to your cover letter of June 25,2012. Idaho Power sent Exergy the Final GIA
for this project on May 23, 2012, and with your June 25, 2012, cover letter Idaho Power received
two unsigned copies with amended dates in return. First of all, the GlAs that you returned to
Idaho Power were not signed by Exergy, contrary to statements in the cover letter. Secondly,
Exergy unilaterally made changes to the Final GIA by inserting different dates in Attachment 3 -
Milestones. That being said, Idaho Power has considered your proposed changed dates, and
Idaho Power will accommodate Exergy's changes -provided that Exergy executes the GIA we
are transmitting to you with this letter, which has been signed by Idaho Power, and pays the
required funds by the date supplied by you in the copies received by Idaho Power on June 25,
2012.
Enclosed is a copy of the Final Generator Interconnection Agreement for Lava Beds Wind
Project signed by Idaho Power Company. This is the same Final GIA that was previously
transmitted to you, with the addition of the dates that you sent back with your June 25, 2012,
submission. Idaho Power will agree to your proposed changes in the Milestone dates, that
provides for completion Idaho Power construction by November 10, 2012, and completes the
interconnection by December 15, 2012. However, in order to proceed, you must execute the
GIA and pay the required funding.
As an additional accommodation, because the date for receiving funding in your proposed dates
is June 30, 2012, which falls on a Saturday, Idaho Power will extend that initial date to the close
of business of the next business day. Because the deadline for executing the GIA and funding
the interconnection was yesterday, and because we have accommodated your last minute request
for a change in the dates, you must execute the GIA and provide the required funding
immediately should you wish to proceed with the interconnection, and in any event must do so
no later than close of business on Monday, July 2,2012.
Failure to return a signed copy of this GIA and have funding in place by 5:00 p.m., Mountain
Time, on July 2, 2012, will result in Idaho Power tenninating the present generator
interconnection request and withdrawing the Lava Beds Wind Project from the generator
interconnection queue. If you wish to proceed forward with the interconnection, you must
execute the GIA by signing and SUbmitting the agreement and Attachment 3, submit proof of site
control and insurance certification, and also pay the required funding by July 2,2012. Failure to
1221 W. Idaho St, (83702)
p,O, Bo~ 70
Boise, ID 83707
Josh Gunderson Page 2 of2 May 23, 2012
submit all required documents by July 2, 2012 will result in removal from the generator
interconnection queue. Please let me know if you have any further questions.
Sincerely,
Josh Harris
Operations Analyst
Idaho Power Company
208-388-5751
cc: James Carkulis/Exergy
Donovan Walker/IPC
Lisa Loomis/IPC
Tess ParklIPC
Kathy AndersonlIPC
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No. 101
June 26, 2012
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18 MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
TABLE OF CONTENTS
RECiTALS ............................................................................................................................................. 1
AGREEMENTS ..................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. Tl7is Agreement is not an agreement to purellase Seifer's power ......................................... 1
4. Attacl7rnents ......................................................................................................................... 1
6. Assiqnment. Liability. Indemnity. Force majeure, Consequential Damages and Default. ...... 4
7. Insurance ............................................................................................................................. 7
8. Miscellaneous ....................................................................................................................... 7
9. Notices ................................................................................................................................. 8
10. Signatures ..................... : ...................................................................................................... 9
Attachment 1 ......................................................................................................................................... 1
Attachment 2 ......................................................................................................................................... 1
Attachment 3 ................ , ....... , ........................ , ....................................................................................... 1
Attachment 4 .................... , ............................ , ....................................................................................... 1
Attachment 5 ... , ........ , ................................ , ........................................................................................... 2
Attachment 6 .......................................................................................................................................... 1
Attachment 7 ......................................................................................................................................... 2
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No.1 01 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the __ day of , 2012 between Exergy Development Group
of Idaho, LLC ("Seller" or "The Project") and Idaho Power Company -Delivery ("Company", or
"Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 -One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering Equipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
Attachment 7 -Generator Interconnection Control Requirements.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 9
5. Effective Date, Term, Termination and Disconnection.
5.1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and remain
effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to sell power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facility will be disconnected from the Company's transmission/distribution system. The termination or
expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or
continuing at the time of the termination. The provisions of this Section shall survive termination or
expiration of this Agreement.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of the
practices, methods and acts engaged in or approved by a significant portion of the electric industry
during the relevant time period, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost consistent with good business practices,
reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or
acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC
requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by
the power purchase agreement.
5.3.1 Emergencv Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or
property; or (2) that, in the case of the Company, is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the security of, or damage to the
Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment
of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on the reliability and security of, or
damage to, the Generation Facility or the Seller's Interconnection Facilities. Under Emergency
Conditions, either the Company or the Seller may immediately suspend interconnection service and
temporarily disconnect the Generation Facility. The Company shall notify the Seller promptly when it
becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller's
operation of the Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the Company's equipment
or service to the Company's customers. To the extent information is known, the notification shall
describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the
operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective
action.
5.3.2 Routine Maintenance, Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seller's Generation Facility and temporarily
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 3 of 9
disconnect the Generation Facility from the Company's transmission/distribution system when
necessary for routine maintenance, construction, and repairs on the Company's
transmission/distribution system. The Company will make a reasonable attempt to contact the Seller
prior to exercising its rights to interrupt interconnection or curtail deliveries from the Seller's Facility.
Seller understands that in the case of emergency circumstances, real time operations of the electrical
system, and/or unplanned events, the Company may not be able to provide notice to the Seller prior to
interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company
shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of significant Facifity maintenance for that
calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed
schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled
maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and
the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed
maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and Generation Facility
maintenance schedules such that they occur simultaneously. Seller shall provide and maintain
adequate protective equipment sufficient to prevent damage to the Generation Facility and Selfer­
furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide
back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays annually
and Seifer will pay the actual cost of such annual testing.
5.3.5 Forced Outages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's transmission/distribution system.
The Company shall use reasonable efforts to provide the Seifer with prior notice. If prior notice is not
given, the Company shalf, upon request, provide the Seller written documentation after the fact
explaining the circumstances of the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller's Generation Facility may cause
disruption or deterioration of service to other customers served from the same electric system, or if
operating the Generation Facifity could cause damage to the Company's transmission/distribution
system or other affected systems. Supporting documentation used to reach the decision to disconnect
shall be provided to the Seller upon request. If, after notice, the Seller fails to remedy the adverse
operating effect within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless the provisions of
Article 5.3. 1 apply.
5.3.7 Modification of the Generation Facilitv. The Seifer must receive written
authorization from the Company before making any change to the Generation Facility that may have a
material impact on the safety or reliability of the Company's transmission/distribution system. Such
authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good
Utility Practice. If the Seller makes such modification without the Company's prior written authorization,
the latter shall have the right to temporarily disconnect the Generation Facility.
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's transmission/distribution system to
their normal operating state as soon as reasonably practicable folfowing a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shalf
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 4 of 9
may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the
Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of
Delivery, in whicl? case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary
to accommodate the modified nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
term of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace,
and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment,
Protection Equipment and other Special Facilities necessary or useful to this Agreement, including
adequate and continuing access rights on p roperty of Seller. Seller warrants that it has procured
sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access
described above. All documents granting sucl1 easements or rights~of-way shall be subject to Idaho
Power's approval and in recordable form.
5.4.2 Use of Public Rights-of~Wav. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of duplicate
electric lines being constructecl in close proximity. Therefore, subj ect to Idaho Power's compliance with
Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal
governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities
upon, along and over any and all public roads, streets and highways, then the use by Seller of such
public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of~way for
construction and/or maintenance of electric distribution and transmission facilities and Idaho Power
may claim use of such public right~of-way for such purposes at any time. Except as required by
Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution and/or transmission facilities to
Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate
Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along,
over and above any public right-of-way acquired from Seller pursuant to Paragraph 5.4.2, attaching
Seller's Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph
5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this
Paragraph 5.4.3.
5.4.4 CondWons of Use. It is the intention of the Parties that the Seller be left in
substantially the same condWon, both financially and electrically, as Seffer existed prior to Idaho
Power's exercising its rigMs under tllis Paragraph 5.4. Therefore, the Parties agree that the exercise
by Idaho Power of-any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with a/l
applicable laws, codes and Good Utility Practices, (2) equitably share the costs of installing, owning
and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method
of apportioning these costs, the dispute will be submitted to the Commission for resolution and the
decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an
interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho
Power exercising its rights under this Paragraph 5.4.
6. Assignment. Liability, Indemnity. Force majeure, Consequential Damaqes and Defau lt.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 5 of 9
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liability. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnity.
6.3.1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the provisions of this Agreement. Liability under this proviSion is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 6 of 9
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Maj eure' means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, ligl1tning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by tlw
exercise of due diligence, it shall be unable to overcome. If either Party is rendered wholly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever performance is affected by the event of
Force Majeure, provided that:
(1) The non-performing Party shall, as soon as is reasonably possible after
the occurrence of tl1e Force Majeure, give the other Party written notice describing the
particulars of the occun"ence.
(2) The suspension of performance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of performance and which could and should have been fully performed
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No.1 01 Page 7 of 9
6.5 Default and Material Breaches.
6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default"), the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement and/or pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6.1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carry the following
insurance coverage:
7.1 Comprehensive General Liability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A.M. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shall not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notifv Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific reason for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breach.
8. Miscellaneous.
8.1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law principles.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 8 of 9
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 and/or
described in this Agreement, less the cost of removal and transfer to Idaho Power's nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shall have the right to offset the invoice amount against
any present or future payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, 10 83702
Ph: 208-336-9793
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, 10 83702
Ph: 208-336-9793
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative . The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities.
Idaho Power Company Generator Interconnection Agreement # 156
I,P.U.C. No. 29, Tariff No. 101
Seller's Operating Representative:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, 10 83702
Ph: 208-336-9793
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
Page 9 of 9
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Seller
Name: ______________________________________________ __
Title: ___________________________________ _
Date: _________________ __
For the Company
Name: -----------------------------------------------
Title: Director, Load Serving Operations -Idaho Power Company
Date: 6/26/12
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 1
Description and Costs of the Generation Facilitv, Interconnection Facilities and Metering
Equipment
Interconnection Details
Type of Interconnection Service: Studied as an Idaho Power Network Resource under PURPA
Full Output: 18 MW
Nominal Delivery Voltage: 34 .5 kV
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
substation. The total project output is 18 MW.
Interconnection Point
The Interconnection Point for the lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is 800N and
1900W (in Sections 14, 22, 23, 26, 27, 34 and 35 of T1, R32E and Section 2 &3 of T2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point.
A drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install nine Gamesa 2.0MW wind turbines, the Power collector system to, and including
the step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOlC") -see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
The Seller will provide a DNP 3.0 serial data connection to the local Idaho Power Company SCADA
RTU when any communication with Seller-owned and maintained equipment is required for GOlC,
voltage control or other plant monitoring or control. Preliminary points lists and functional description
can be obtained from Idaho Power's assigned Project leader.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Ta riff No. 101 Page 2 of 2
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Ground Fault Equipment
The Seller will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements
The Seller will provide to IPCO a surveyed (Metes & Bounds) legal description along with exhibit map
for IPCO's facilities. After the legal description has been delivered to IPCO for review, IPCO will supply
to the Seller a completed IPCO easement for signature by the land owner of record. Once the
signatures have been secured, the Seller will return the signed easement to IPCO for recording. IPCO
construction will not proceed until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the Interconnection Paint, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4), SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
protector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned, operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are provided in 2011 dollars
Generation Facilities:
Provided by Seller
Interconnectiofl Facilities:
Oved1ead Generation Interconnection Pa.0~ge_
,(SeeATTACHMENT6jor Project Grand Total)
TOTAL
-1-----~ eller --:r-
lIP 0
- I _
$NIA
'$225,000
,$225,OO~
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 2
One-line Diagram Depicting tile Small Generation Facilitv. Interconnection Facilities. Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 3
Milestones
Idaho Power Company agrees only to the Construction timelines under its direct control provided in the
Facility Study Report for this Project.
These milestones will begin, and the construction schedule referenced below, will only be valid upon
receipt of funding in full from the Seller or their authorized third party no later than the date set forth
below for such payment. Additionally, failure by Seller to make the required payments as set forth in
this Agreement by the date(s) specified below will be a material breach of this Agreement, which may
result in any or all of the following: (i) loss of milestone dates and construction schedules set forth
below: (ii) immediate termination of this Agreement by Idaho Power; (iii) removal from the generator
interconnection queue.
Seller Construction funding received by Idaho Power
~----------r-------------~------------------~ ,11/3/12 Seller ________ J_C_u_s_to_mer GaLC/Reactive controls ready to connec_t _____ _
r 1/10/12 }~ ._IPCO Construction Complete __ _
11/24/12 IPca IPca Commissioning Complete ----1!· --------
111/24/1 _2 ____ rPca Project Leader issues Construction Comple_te_L_e_tt_e_r ___ -
iii /24112 !~eller Customer testing begins
112/15/12 Seller Customer's requested In-Service Date --------------------_.
Agreed to by:
For the I nterconnection Customer ______________________ Date _____ _
For the Transmission Provider
Idaho Power Company
~p~ ______________ Date 6/26/12
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 4
Additional Operating Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Seller's Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
The project is required to comply with the applicable Voltage and Current Distortion Limits found in
IEEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in
Electrical Power Systems or any subsequent standards as they may be updated from time to time.
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Generator Output Limit Control tiRe-dispatch" or "GOLC'?
The Project will be subject to reductions directed by Idaho Power Company Grid Operations during
transmission system contingencies and other reliability events. When these conditions occur, the
Project will be subject to Generator Output Limit Control ("GOlC") and have equipment capable of
receiving signals from Idaho Power for GOlC. Generator Output Limit Control will be a setpoint from
Idaho Power to the Project indicating maximum output allowed.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Meteorological Data
Historical wind data -Within 60 days after execution of this Agreement, the Seller shall provide Idaho
Power with the following:
a) historical wind data in an electronic format from the proposed Facility site or for a location within two
miles of the Facility site.
b) a third party wind assessment study report used by Seller to value investment in the Facility.
No later than 30 days prior to the Commercial Operation Date, the Seller shall have either:
a) Erected at the site at least one (1) high quality, approximate hub-height (plus or minus 20 meters),
permanent, meteorological wind measurement tower(s) at location(s) on the site equipped with:
(I) Two (2) anemometers per tower;
(ii) Two (2) air temperature sensors per tower;
(iii) One (1) barometric pressure sensor (with OCP sensor); and
(iv) Two (2) wind vanes per tower, or
b) Arranged to provide Idaho Power approximate hub-height wind speed, wind direction, air
temperature, barometric pressure, and data from a meteorological wind measurement tower within two
miles of the Facility site.
Facility availability status shall be provided no later than within the calendar month following the month
of the Commercial Operation Date. Failure by the Seller to operate and maintain this equipment to
provide such meteorological and turbine availability data in a manner to provide reasonably accurate
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No.1 01 Page 2 of 2
and dependable data for the full term of this Agreement shall be an event of Default under paragraph
6.5.1.
The associated cost for obtaining this data is the Sellers responsibility and was not included in the
Facility Study Report cost estimate.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachm ent 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point. It is
preferable to bring each generating unit online separately to minimize voltage flicker on the distribution
system.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 6
Companv's Description of Special Facilities and Upgrades Required to Integrate the Generation
Facilitv and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local service
transformer on the feeder side of the substation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
The following good faith estimates are provided in 2011 dollars:
,SlIbstlltion a I'ade..~_ ----f------l--------J _~2,000 LTC Upgrade __ _
ILocaJ Service TransfonnerlTransfer Trip ___ _
~TOTAL ___ _
I
Interconnection costs rom Attachment 11 TOTAL
~-------.. ------
PROJECT GRAND TOTAL
IPCO
PCO 1-
---
)$30,000
!$32:000
i
--($225,000
$257,000
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 7
Generation Interconnection Control Requirements
Generator Output Limit Control (GOLC)
IPC requires Interconnected Power Producers to accept GOlC signals from our EMS.
The GOlC signals will consist of two points shared between the IPC EMS and the Customer's
Generator Controller:
GOlC Setpoint: An analog output that contains the MW value the Customer should curtail to, should a
GOlC request be made via the GOlC OnlOff discrete output Control point.
An Analog Input feedback point must be updated (to reflect the GOlC setpoint value) by the Customer
Controller upon the Controller's receipt of the GOlC setpoint change, with no intentional delay.
GOlC On/Off: A discrete output (DO) control point with latching OfflOn states. Following a "GOlC On"
control, the Customer Controller will run power output back to the MW value specified in the GOlC
Setpoint. Following a "GOlC Off' control, the Customer is free to run to maximum possible output.
A Discrete Input feedback point must be updated (to reflect the GOlC DO state) by the Customer
Controller upon the Controller's receipt of the GOlC DO state change, with no intentional delay.
If a GOlC control is issued, it is expected to see MW reductions start within 1 minute and plant output
to be below the GOlC Setpoint value within 10 minutes.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U .C. No. 29, Tariff No. 101 Page 2 of 2
Generation Interconnection Data Points Requirements
Digital Inputs to IPCo (DNP Obj. 01, Var. 2)
Index Description State (0/1) Comments:
0 52A Customer Capacitor Breaker (if present) Open/Closed Sourced at substation
1 GOlC Off/On Control Received (Feedback) OffiOn Provided by Customer
D~gJtal Outputs to Customer (DNP Obj. 10, Var.1)
Index Description Comments:
0 GOlC Off/On Provided by IPCO
NOTE: GOlC Setpoint indicates MW value to curtail to when GOlC Off/On DO is ON.
Analog Inputs to IPCo (DNP Obj. 30, Var. 2)
Raw Raw EU EU
Index Description High low High EU low Units Comments:
GOlC Setpoint Value Received -Provided by
0 (Feedback) 32767 32768 TBD TBD MW Customer
Spare -hold for Voltage Control Setpoint -Provided by
1 Value Rec'd (Feedback) 32767 32768 TBD TBD kV Customer
-Provided by
2 Maximum Park Generating Capacity 32767 32768 TBD TBD MW Customer
-Provided by
3 Number of Turbines In High Speed Cutout 32767 32768 32767 -32768 Units Customer
-For Provided by
4 Ambient Temperature 32767 32768 327.67 -327.68 C Customer
-Provided by
5 Wind Direction 32767 32768 3276.7 -3276.8 Deg Customer
MPH
-or Provided by
6 Wind Speed 32767 32768 327.67 -327.68 m/s Customer
Analog Outputs to Customer (DNP Obj. 40, Var. 2)
Raw Raw EU EU EU
Index Description High low High low Units Comments:
-
0 GOlC Setpoint 32767 32768 TBD TBD MW Provided by IPCO
-
1 Spare -hold for Voltage Control Setpoint 32767 32768 TBD TBD kV Provided by I PCO
NOTE: Curtailment Setpoint indicates MW value to Curtail to when Curtailment OfftOn DO is ON.
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 24
In ~ .-;;-\ P n f;n ,? ~ I ru~ ,I, L I L~ II" ;; Ii i·,: C II • '---\ ..... : . ./ ~ L· ~ .~ I ~ JUL 0 2 2012 ~
8;ill1,-
NOTICE OF FORCE MAJEURE
UNDER
FIRM ENERGY SALE AGREEMENTS DATED OCTOBER 14, 2005
RE:
LAVA BEDS PROJECT (#41455200) AND NOTCH BUTTE PROJECT (#31615300)
From Seller:
To Idaho Power:
With copy to:.
Date:
Exergy Development Group of Idaho, LLC
802 W. Bannock Ste. 1200
Boise, ID 83702
Attn: James Carkulis, Managing Member
Email: [e-mail]
Vice President, Power Supply
Idaho Power Company
PO Box 70
Boise, Idaho 83707
Email: [e-mail]
Cogeneration and Small Power Production
Idaho Power Company
PO Box 70
Boise, Idaho 83707
Email: [e-mail]
July 2,2012
VIA EMAIL, HAND DELIVERY AND REGULAR MAIL
In accordance with Article XVI (Force Majeure) of the Firm Energy Sale Agreements referenced
above (hereinafter, collectively, the "FESA"), and Section 6.4 of their respective corresponding
Generator Interconnection Agreements, Seller hereby gives Idaho Power written notice of the
occurrence of Force Majeure events, in the following particulars:
1. This Notice of Force Majeure is directly tied to that certain other Notice of Force
Majeure, dated June 28, 2012, e-rnailed on June 29, 2012, and followed up my regular mail,
regarding the JACK RANCH PROJECTS (DEEP CREEK -# 31721200; ROGERSON FLATS -
#31721300; SALMON CREEK -#31721400; and COTTONWOOD -#31721100. A copy of that
Notice of Force Majeure is attached hereto, and incorporated herein by this reference as if set forth
in fulL
2. Idaho Power, with the understanding, as communicated in various meetings and e-
mails between Idaho Power and Seller, that both the Lava Beds Project and the Notch Butte Project
are integrally related to the Jack Ranch Projects for purposes of combined financing, has caused the
Exergy Development Group 802 W Bannock, 12ch Floor Boise, 10 83702 P 208.335.9793 F 208.336.9431
interconnection facilities and upgrade construction completion dates for the Jack Ranch Projects to
change to a date that is after Seller's Scheduled Operation Date under the FESA for the Jack Ranch
Projects, thereby creating an impossibility of performance on the part of Seller, in a manner beyond
the control of Seller, all as more fully set forth in the attached Notice of Force Majeure for Jack
Ranch Project.
3. The impossibility of performance under the Jack Ranch Projects FESA creates an
event of Force Majeure not only with respect to the Jack Ranch Projects, but also the Lava Beds
Project and Notch Butte Project, as follows:
(i) Plainly and simply, without the Jack Ranch Project, both the Lava Beds
Project and the Notch Butte Project are not finance able. All the Projects are packaged together for
financing purposes. If one or the Projects is caused to be eliminated from the package, for reasons
beyond the control of Seller, then all of the Projects will be eliminated, again for reasons beyond the
control of Seller.
(ii) Because Idaho Power has moved the interconnection facilities and upgrade
construction completion dates under the Jack Ranch Projects to a date that is after Seller's Scheduled
Operation Date, Idaho Power has created impossibility of performance on the part of Seller, and, as a
direct consequence, has also caused impossibility of performance and fmstration of purpose under
all the Projects.
4. Notwithstanding the foregoing, other events of Force Majeure have arisen, to wit:
(i) Per the IPUC docket, in a decision released June 30, 2012, the IPUC has
denied Grand View Solar's request for a summary judgment ruling that a developer, not Idaho
Power, owns RECs associated with a renewable project.
(ii) Also per the IPUC docket are the Issues of pricing, size, duration and
curtailment, all of which are pending.
Accordingly, as all of the foregoing will affect not only the Jack Ranch, Notch Butte and Lava Beds
Projects, but also any other renewable energy project, the entire circumstance of continued viability
of all renewable energy projects is undecided and beyond the control of Seller, the ultimate decisions
upon whiGh may render Seller wholly or in part unable to perform its obligations under the FESA.
Accordingly, by this written notice to Idaho Power, Idaho Power is advised that its actions have
created a Force Majeure event, thereby creating a suspension of performance for the duration of the
event, as further described in Article XVI of the FESA.
Further, pursuant to Section 19.1 (Disputes) of Article XXII of the FESA, if Idaho Power disputes
this matter, Seller reserves the right to submit the same to the Idaho Public Utilities Commission
and/or pursue any resolution to which it may be entitled before the appropriate Idaho district court,
FERC andlor any other applicable tribunal or governing body.
Exergy Development Group 802 W Bannock, 12to Floor Boise, 10 83702 P 208,336.9793 F 208,336,9431
Further, Seller asserts that it is protected from any default under the FESA pending resolution of any
the asserted Force Majeure issues, including, without limitation, any dispute or litigation as to
whether said Force Majeure Event does protect Seller from any such default.
SELLER:
Exergy Development Group of Idaho, LLC
cc: Donovan E. Walker (hand delivery)
Peter 1. Richardson (email)
Peter A. del Vecchio (email)
Walter 1. Dunn (email)
Richard A. Riley (email)
Brian L. Ballard (email)
Exergy Development Group 802 "IV Bannock, 12th Floor Boise, 10 83702 P 208.336.9793 F 208.336.9431
NOTICE OF FORCE MAJEURE
UNDER
-l~~ )...
eXerp~f DEV~LOPMENr GROUr 0 J
FIRM ENERGY SALE AGREEMENTS DATED DECEMBER 10, 2010
RE: JACK RANCH PROJECTS:
From Seller:
To Idaho Power:
With copy to:
Date: June 28,2012
DEEP CREEK (# 31721200)
ROGERSON FLATS (#31721300)
SALMON CREEK (#31721400)
COTTONWOOD (#31721100)
Exergy Development Group ofIdaho, LLC
802 W. Bannock Ste. 1200
Boise, ID 83702
Attn: James Carkulis, Managing Member
Email: [e-mail]
Vice President, Power Supply.
Idaho Power Company
POBox 70
Boise, Idaho 83707
Email: [e-mail]
Cogeneration and Small Power Production
Idaho Power Company
POBox 70
Boise, Idaho 83707
Email: [e-mail]
VIA EMAIL AND REGULAR MAIL
In accordance with Article XIV (Force Majeure) of the Firm Energy Sale Agreements referenced
above (hereinafter, collectively, the "FESA"), Seller hereby gives Idaho Power written notice of the
occurrence of Force Majeure events, in the following particulars:
1. Pursuant to studies, Idaho Power established interconnection facilities and upgrade
construction completion dates as occurring in December 2011. Idaho Power communicated same to
Seller, and Seller, in reliance, and in discussions with Idaho Power, established June 20, 2012, as the
Scheduled Operation Date under the FESA.
Exergy Development Group 802 W Bannock, 12th Floor Boise,lD 83702 P 208.336.9793
F 208.336.9431
J...~).-./ ~ , e 'e r~' --<l~ l'
O,v'COPM"" "'OUP . Y
2. Unilaterally, Idaho Power then decided to conduct further studies and based thereon,
unilaterally moved its interconnection facilities and upgrade construction completion dates forward,
most recently settling on dates in June 2014.
3. Despite repeated requests from Seller, Idaho Power has refused to amend the FESA to
allow Seller to change its Scheduled Operation Date to reasonably accommodate Idaho Power's
change of its interconnection facilities and upgrade construction completion dates to June 2014.
4. Because Idaho Power has arbitrarily moved its interconnection facilities and upgrade
construction completion dates to a date that is after Seller's Scheduled Operation Date, Idaho Power
has unilaterally created the absolute impossibility of performance on the part of Seller. This
intentional and intended consequence has been repeatedly brought to the attention of Idaho Power
and is well known to Idaho Power.
5. The intentional and intended consequences of Idaho Power's unilateral manipulation
of dates within its sole control, serves to have created, by Idaho Power's own actions, the cause of
the looming, certain and impossible achievement by Seller of the Scheduled Operation Date of June
30,2012. Idaho Power's refusal to agree to a reasonable change in the Scheduled Operation Date is
clearly "beyond the control of the SeUer ... despite the exercise of due diligence ... [that Seller] is
unable to prevent or overcome ... " and is, therefore within the definition of Force Majeure as set
forth in Article XIV the FESA.
6. This is not a case of Seller failing to post delay security (such has been posted). This
is not a case of Seller's reliance upon the actions of third party permitting agencies (such as, by way
of example, and not limitation, the BLM). This is not a case where there are events or issues arising
outside of the control of Idaho Power. To the contrary, this is a case where there has been, and
continues to be, unilateral and intentional delay and manipulation by Idaho Power of events and
issues solely with the control of Idaho Power, the intent of which is to cause the default to Seller.
For example, Idaho Power could easily agree to amend the FESA to a reasonable date that correlates
to the revised Idaho Power dates (changed after Seller has relied upon originally established dates).
Idaho Power refuses to do so.
7. Further, Idaho Power has also set the stage for impossibility of performance 011 the
part of Seller with respect to the condition imposed by Section 4.1.7 (Interconnection) of the FESA,
that Seller provide written confirmation by Idaho Power to Idaho Power of the satisfaction of all
interconnection requirements. Pursuant to the chain of letter correspondence attached
(notwithstanding that there are fundamental disagreements between Seller and Idaho Power
regarding the matters set forth therein), Idaho Power has chosen not to countersign the GIA signed
and submitted to Idaho Power, thereby making satisfaction of this condition impossible. Seller
reserves all rights to contest the position of Idaho Power regarding the OIA as set forth in the
attached correspondence (in particular the incorrect recollection of Donovan Walker regarding the
circumstances of how the insertion of the Section 8.3 Option to Build per OATI was brought to his
attention). However, for purposes of describing with particularity the occurrence of an event of
Force Majeure, the attached is submitted as such description, and as forming the basis for Seller's
Exergy Development Group 802 W Bannock, 121h Floor Boise,lD 83702 P 208.336.9793
F 208.336.9431
A~~ J--
. ~~ ~ . ~~ e(~'x-'/ert~g' -~y@
DEVEI.OPMEI./T GROUP .' ,
notice to Idaho Power that Idaho Power's unilateral refusal to sign a contract creates an event
beyond the control of Seller within the definition of Force Majeure as set forth in the FESA.
Accordingly, by this written notice to Idaho Power, Idaho Power is advised that its actions have
created a Force Majeure event, thereby creating a suspension of performance for the duration of the
event, as further described in Article XIV of the FESA.
Further, pursuant to Section 19 .1 (Disputes) of Article XIX of the FESA, ifIdaho Power disputes
this matter, Seller reserves the right to submit the same to the Idaho Public Utilities Commission
and/or pursue any resolution to which it may be entitled before the appropriate Idaho district court,
FERC and/or any other applicable tribunal or governing body.
Further, Seller asserts that it is protected from any default under the FESA pending resolution of the
asserted Force Majeure issues, including, without limitation, any dispute or litigation as to whether
said Force Majeure Event does protect Seller from any such default.
SELLER:
Exergy Develop rfl Group of Idaho, LLC
By: // ~
ames T. Carkulis --·· --ManaginIt11~ber
cc (via email): Donovan E. Walker
Peter J. Richardson
Peter A. del Vecchio
Richard A. Riley
Brian L. Ballard
----. -. _. -
Exergy Development Group 802 W Bannock, 12th Floor Boise,ID 83702 P 208 .336 .9793
F 208.336 .9431
DONOVAN E. WALKER
Lead Counsel
[e-mail]
June 18, 2012
VIA ELECTRONIC & U.S. MAIL
Peter J. Richardson
RICHARDSON & O'LEARY, PLLC
515 North 2ih Street
P.O. Box 7218
Boise, Idaho 83702
..fF I lilAHO ~POWER®
An IDACOR!' Company
Re: Jack Ranch Projects -Your June 15, 2012, letter to Tess Park
Dear Mr. Richardson:
This letter responds to your letter of June 15, 2012, to Idaho Power's Tess Park.
In that letter you represent that Mr. Carkulis did, "in fact" sign the Final GIA for the Jack
Ranch Projects. This is factually incorrect. Mr. Carkulis delivered to Idaho Power, at
4:57 p.m. on Wednesday, June 13, 2012, versions of the Final GIA that had been
modified, and then signed by Mr. Carkulis. The modification(s) to the document were
not red-lined or otherwise identified in the document. In fact, the modification(s) were
not even pointed out until the two representatives of Exergy that ·made the delivery were
asked directly if there were any changes made to the documents. At that time the
Exergy representatives pointed out some additional language that was added to the
pro-forma portion of the Final GIA, in Section 8, where a subsection 8.3 was added to
include language allowing Exergy to self build all required interconnection facilities and
upgrades.
As you are well aware, this particular issue was expressly addressed in my June
12, 2012, letter to Mr. Carkulis, and was expressly discussed on the phone conference
that you organized on June 13, 2012, attended by myself and Jason Williams for Idaho
Power, as well as you and your associate, Greg Adams, several attorneys from
McGuire Woods from across the country, and the two representatives of Exergy that
hand delivered the modified documents directly after the call. The unambiguous
communication from both the June 12, 2012, letter as well as the June 13 conference
call is that the requested self-build language is not an appropriate, nor an acceptable
term in the Final GIA. Contrary to these communications, Mr. Carkulis unilaterally
inserted the inappropriate language into the Final GIA before signing and returning the
122.1 IN Idaho 5t. (83702)
P.O. Box 70
BoiSE. 10 B3707
James Carkulis
June 12, 2012
Page 2 of 2
same to Idaho Power. Consequently, Mr. Carkulis failed to sign and return the Final
GIA that was sent to Exergy on May 14, 2012, by the June 13, 2012, deadline.
Additionally, Mr. Carkulis did not pay the required deposit by the close of business on
June 13, 2012.
As previously communicated to Exergy by letter dated June 14, 2012, because
Exergy did not return an executed copy of the Final GIA, nor pay the required deposit
funds by the June 13, 2012, deadline, the Projects have been removed from Idaho
Power's generator interconnection queue.
Sincerely,
Donovan E. Walker
DEW:csb
cc: Lisa Grow, Idaho Power (via e-mail)
Tess Park, Idaho Power (via e-mail)
Randy Allphin, Idaho Power (via e-mail)
Jason Williams, Idaho Power Corporate Counsel (via e-mail)
James Carkulis, Exergy (via e-mail)
RliCHfAltimS..:0~r &: QJ~y' PUC
ATTORNEYS AT LAW
Peter Richardso n
Tel: [phone] f •. <: 208-938-7904
t)~ te [e-mail] n ~ i'tJo I c:t rv. cu m
P.O. Box 7218 B~i.e, II) 83707 -515 N. 27,h $,. Soise. [1) 83702
June 15,2012
Tess Park, Load Serving Operations Director
Idaho Power Company
1221 West Idaho Street
Boise, Idaho 83702
HAND DELIVERY
Re: Jack Ranch Projects, Project No. 325/327
Dear Ms. Park:
I am in receipt of your letter dated June 14,2012 addressed to Mr. Carlmlis. You must
have realized by now that your statement that "Exergy did not provide Idaho Power an
executed copy ofthe Final GIA, nor was a deposit for the Projects received" is in error.
An Exergy employee delivered a signed GIA directly and fersonally to Mr. Donovan
Walker at five minutes of five p.m. on Wednesday the 13' . That GIA was, in fact
executed by Mr. Carkulis and Mr. Carkulis is prepared to post the deposit when the
agreement is fully executed by Idaho Power.
I therefore respectfully request that you replace these projects to their rightful place in the
queue.
Sincer~-Uv.~
Peter Richardson
Cc: Donovan Walker, Senior Attorney-Idaho Power Company
James Carkul is
Exergy Development Group
802 West Bannock Street, 12th Floor
Boise, Idaho 83702
An IDAGOP.P Company
June 14,2012
VIA email & Certified Mail # 70113500000156449112
Subject: Jack Ranch Projects Project # 325/327 -FINAL NOTICE
Dear James Carkulis:
By letter dated May 14, 2012, Idaho Power Company ("Idaho Power") provided the Exergy
Development Group ("Exergy") with a Final Generator Interconnection Agreement ("Final
GIA") for the proposed Jack Ranch Projects ("Projects") to be interconnected in Twin Falls
County, Idaho. Exergy was to execute and return the Final GIA with the required deposit by
June] 3, 2012. That time period has now expired. Exergy did not provide Idaho Power an
executed copy of the Final OIA, nor was a deposit for the Projects received. Therefore, the
Projects have been removed from Idaho Power's generator interconnection queue.
Should you wish to continue to pursue generator interconnection for the Projects, YOll may re­
submit an application that can be found on www.idahopower.com.
cc (via email):
Donovan Walker/IPC
Nancy CyrlIPC
Aubrae Sloan/IPC
Josh Harris/IPC
Sincerely.
Tess Park
Load Serving Operations Director
Ph 208.388.2360
P.O. Box 70 (83707)
1221 w. Idaho 5t.
Boise, ID 83702
McGufreWoodlllP
600 Travis Street
Suite 7Soo
Houston, TX 77002-2906
Phone: [phone]
Fax: [phone]
www.mcguirewoods.com
( .-:
Peter A. def Vecchio
Direct 713.353.6672 McGUJREWCDDS
JUne 13,2012
Donovan Walker
Legal Department
Idaho Power Company
1221 West Idaho Street
Boise,ID 83702
" I ,---
RE: Exergy Development Group of Idaho, LLC's Jack Ranch Projects
Dear Donovan:
pdelvecchloQ)mcgulrewoods.com
Direct Fax: [phone]
I am 'Nriting on behalf of Exergy Development Group of Idaho, LLC, in response to your letter
to 1.1r. James Carkulis dated June 12, 2012. That letter rejected Exergy's ongoing attempts to
seek from Idaho Power reasonable use qf fair and well-established interconnection procedures
that Exergy believes would allow it to int~rconnect its projects in a timely manner. Idaho
Power'~ posit:i.9I1 has pls...ced Ex~rgy iIla ~ery difficult .position, ana ~.y oompel Exetgy to
pursue a11 .avaiJlible 1~ga1 aim eqpitiilile l'elnedies fo~ what amountS to a breach of .good 'fl!lth.and
fait ,dealing unqf;:f !.daho co.n~m: Jaw~ as well as discriminatory treatJ;nent under implementing
rules of the Public Utili*s Regulatory P-01icy <,\ct of 1978.
As you know, Exergy is the developer offow qualifying facility (QF) projects referred to as the
Deep Creek, Rogerson Flats, Cottonwood, and Salmon' Creek projects (the "Projects"). Exergy
executed finn energy sales agreements (FESAs) with Idaho Power for each of these Projects in
late 2010. ~o Power IeqUired the mclnsi9TI in these FESA,s ofa'dell,iY liq1;iiqa.teddaIIi.ag~s
pr9vi~ion tha~ .teq1lired Ej{eQ~Y tQ post :&4s!lcilqwatt Qf ~ep1ate capa~ityto ensure that the
Projects wOlild meet.a Scheduled Qpera:tion Date 6fJUhe 30,'2012. Idaho Power. included in the
delay default provision the requirement in Artlcle 4.1.7 that Exergy be I'I,ble to ~'Provide written
con\fu:matiort .fro.Ih ldahp Power's delivery business writ that Seller has satisfied ail
interconnection requirements." Idaho Power drafled tho~prbv1sions ahd .-:... other' than tbe .
projected date itseif --provideciExergy with no oPPOrtunity for input.
As Exergy has communicated to Idaho Power, Exergy believed it would be able to achieve the
interconnection component by the Scheduled Operation Date by interconnecting these four
Projects at the point of interconnection on the 345 kV line used in Interconnection Request No.
327. From the well-advanced interconnection process initiated under Idaho Power Open Access
Transmission Tariff (OATT) for Intercollllection No. 327, Exergy expected that there would be
no issue with completing the interconnection of the lesser 80-MW output by the required date,
Your accusations that the Projects had been moved forward by Exergy with a blind eye to
Allanta I Austin I Baltimore I Brus.sels I Charloltc I Charloltesville I Chicago I Hooston I JaCKsonville I LondOll
Los Angeles I New York I Norfolk I Pittsburgh I Raleigh I Richmond I Tysons Comer I Washington, D.C.I Wilmington
Donovan Walker
June 13,2012
Page 2
(---(-
interconnection risk is simply wrong, The interconnect feasibility study for this interconnect
request was completed by Idaho Power on July 28,2010. That study, whi.ch was completed six
~o~ths Jlru:9~t.o ~xecution of the Jack Ranch FESAs, provides: ''Jh~ _l?~9P.psed'inMservic~ datI; ,
W'Decembet 2011." The Projects, in reliance on Idaho Power's own study. then requested an on
line date in July 2012, on the assumption that the interconnection work to be perfonned by Idaho
Power would take no more than a year. This assumption was collaborated by the System Impact
Study which was ~mpleted. in December of2010. That study also states that; "The proposed in­
service date for this Project is December 201]." Exergy reasonably and in good faith relied upon
Idaho Power to make an informed decision as to the appropriate on line date.
Idaho Power worked with Exergy under the terms of the OATI to make modifications to the
initial 200MW Energy Resource designation for Interconnection Request No. 327 to allow for
these four QF Projects to interconnect at the same location on the applicable 345 kV line.
Exergy consequently understood Idaho Power to be proceeding under the terms of the OATI for
this interconnection. Exergy considers the terms of the OA IT to allow for a quicker progression
to a fully completed interconnection process. Exergy maintains that, had Idaho Power
consistently adhered to the principles of the OATT. it could have progressed much more quickly
to a reasonable and fully executed Large Generator Interconnection Agreement. But Idaho
Power has failed to do so.
For example, the OAIT section32.1 rec.(Ulr.~s that if the Trartsnrl$sionPrbvidertleteUItines that a "
system impact®dy is nece~S?IY, lt sball so iPfurftl the ~missioI;l cti~tomer-·I~soon .'~
, practicable," but ~ any eyent will provide a system-impact study agreement v.ithin 30 days of a
completed application for network resource designation. Exergy's letter initiating the revised
network transmission request from the revised point of interconnection was sent June 3, 2011,
and it took 75 days for Idaho Power to respond on August 17,2011 that a system impact study
would be needed. For a much more complicated process of actually completing a system impact
study or a facility study, the OATT only allows only 60 days, and under sections 19.9 and 32.5
requires Idaho Power to file a notice and possibly incur penalties with FERC if a significant
number of studies for non-affiliates exceed that 60-day deadline. Additionally, Idaho Power's
August 17, 2011 letter provided Exergy with six days to execute the included network
transmission study agreement regarding the system impact study and deposit $10,000, but Idaho
Power's OATT section 32.1 provides a transmission customer with 15 days to execute a system
impact study agreement.
The 75-day response period for Idaho Power (compared to 30 days in the OATT) and the 6-day
response requirement for Exergy (compared to 15 days in the OA Tf) are flatly discriminatory to
Exergy's QF Projects as compared to others who are attempting to use the transmission system.
This is only one such example of Idaho Power's delays and unreasonable requirements placed
upon Exergy with regard to the interconnection and network transmission components of these
Projects,
In fact, Idaho Power has unilaterally imposed short response times for Exergy and allowed itself
generous amounts 0f time achieve various tasks throughout this process. To put it simply,
Donovan Walker
June 13,2012
Page 3
Exergy has made clear its intent to proceed un.qer the reasonable timelines set forth in the QAIT
in order to avoid:being in default ofldahoPDwe't~s u:nte~(;)]lable delay damag-es 'pr0-vision in the
. -FES.A;s, , Yet Idaho Power has refused to follow that process, and instead has materially
frustrated Exergy's ability to complete the interconnection.
Your letter sent June 12, 2012 is yet another example. Idaho Power Transmission apparently
believes it is not capable of having the interconnection complete in time for the deadline in the
FESAs, or the 90 days thereafter Idaho Power bas provided for Exergy to cure any delay
"default" prior to Idaho Power's rigqt (agam. unc;ter thQ FES~ it dr~ed.) to termin?te the
FESAs. Exetgy Tea~~nablj px!?p6~ed t~ use-,i! common .pt0cec;iure froin SemolL 5.1.3 of Idaho
~()Wer?s OATI to self 5uild the Inler.c0TI.Q.~ctiOn. That would at least place Exergy in control ·of
the Interconnection construction, and consequently the related ability to achieve online status
accordance with the FESAs. There is no basis for denial of this request. Exergy and its partners
clearly have the capacity to self construct the interconnection process.
Your reliance on the terms and provisioll$ qf a S41te~jurisdictional Schedule 72 are unavailing.
First, -Idaho Pp.wer bas-conseIite.d to use ,the procedw:~6fthe OATrb.yctl1ir~e .pfcopduct.
Those provisions were used in correspondence between Exergy and Idaho Power to make the
necessary modifications to the Interconnection Request No. 327 beginning in April 201 L You
claim that Exergy failed to adhere to some "comment period" that Idaho Power bas created.
However, even ifIdaho Power could foist an unfair process on an interconnecting generator for
some failure to provide commen1s, we understand that Exergy has communicated its intent to use
the CAIT provisions consistently from the start. Idaho "Power cannot indiscriminately "cherry
pick". using some prov:isions of the OAIT favorable to itself at some points and completely
ignoring OA Tr at other'times whenever Idaho Power chooses.
Second, and more importantly, the ~ohequle 72 process as iiPpli~d is incQnsistent with federal
and state QF regulations. Ip$.o Power is wscdnrinating agalJist-anU prbYiding-Iess protection to
the interconnection rlghts-of QFs than. those ,available for lJ.qn~Q:F ,~enerators, .,As you are well
aware, "a -state may only take,'i:lctioi:). under PURPA. to tQe elCtent that that acuonis Consistent
With [:fERC;sJ Iules." Cedar Creek Wind LLC, 137 FERC 61,006, ~ 27 (2011). Federal Energy
Regulatory Commission-(FERC) regulations and case precedent is abundantly clear that well·
established interconnection protections afforded under PURPA are lp.tended,'to preve~t th~ type
oftHscriminatorytreatment exlribited by Idaho Powerher.e (e.g. 18 C.F.R. § 292.301 -314). By
prohibiting Exergy from se1f..building its QFs' interconnection in the same m~er Idaho power
is required to allow non-QF generators under the OATI, Idaho Power i;i l.1smg -$~ SchedlIle12
proceSs as at? Unieasonab-i~ sqield to Qj.se~e ilgairtst Exergy. subverting and contorting the
very purpose of Schedule 72. . .
Finally, a duty of good faith and fair dealing is implied in any cOntract, Indep. Sch. Dist. afBoise
City v. Harris Family Ltd P'ship, 150 Idaho 583, 589, 249 P.3d 382, 388 (2011). The fOUI
FESAs at issue here are no exception. -Idaho Power has unreasonably demanded that, in order
for Exergy to exercise its state and federal right to sell to Idaho Power as a QF, Exergy ~ust
agree to a delay defalllt damages provi$ion that required Exergy tc:> post S1.!bstantial security in
Donovan Walker
June 13,2012
Page 4
(.-
e~c~s~ of three nWliQI). dolIar$(qr these P~oje~ts.' Idaho Power claims in other forums that it does
notneedfueoutptlt from wfud projects at this time. Yet \l,~re ~~$o J;>pw~r refus~ 10 slightly .
extend the online 4a;ty ill Exe~gy':;. FESAs. For 14$,9 io-w~ to Jir$.i§t upon Qu.ilditig tthe.
jnteFc\?wecliqn hs~lf-und9r deaQ1wes t1f&\.w,ilJ pot -mettt4e,--4~$9.1ll].es iciah«(~P0v.:~r'teflis~ to. .
ihQv{;iil,. the "FE-SA, is .j,}; 1tagsPatBllt attempf to te.Priinat~ ./he:PESA§ .. Idaho Power CanDot pretend
as thougb it 1S two different entitles. Idaho }lower~s intent is clear. No court would view Idaho
Power's conduct as anything other than a monopolist utility's attempt to terminate the FESAs.
As such, Idaho Power's actions are a clear breach of the implied covenant of good faith and fair
dealing.
Idaho Power's entire course of conduct including its actions, inactions and interactions with
Exergy regarding the interconnection procedures with respect to its four QF Projects and the
related FESAs has the potential to cause tremendous harm to Exergy and seriously threatens the
viability of these Projects. Earlier today, Exergy had delivered to Idaho Power executed
counterparts of the relevant Interc.onnection Agreements. We are expecting Idaho Power to
execute and deliver counterparts of Interconnection Agreement to Exergy as soon as possible. If
this is not completed by the close of business r;m Monday, June 18th or if Idaho Power fOlTIlal}y
or infolTIlally remoyes ~y of th~ ,Projects from its interconnection queue,'Exetgy intends to
purstJe all ~vahable legal· and equitable TeI;I1ecli.f{S ag!Unst I@hoJ>owetfotalldltee(aIJ.9 indirect
oustS associated "villi these Pr.ojects, includir!g the-re~ piall secuiiiy paym~nts made under the
FESAs.,8.1l ]llIId ~~ -Soft de.v~19pmerd ~d CQP44U¢tion.'cQ~~ aS$6C~ateq 'Wj.t/;l .:the P1=ojects·',.$e
value of all non-refimdable deposits placed pn Wind turbines and 'other ¢quipment,aswell as
other coh&eqIiential md Pllilitive da.m:a,ges.
Peter A. del Vecchlo
ce. James Carkulis, Exergy Development Group of Idaho, LLC
Peter Richardson, Richardson & O'Leary
DONOVAN E. WALKER
Lead Counsel
[e-mail]
June 12, 2012
VIA ELECTRONIC & U.S. CERTIFIED MAIL
RETURN RECEIPT REQUESTED
James Carkulis
Exergy Development Group
802 West Bannock Street, 1 ih Floor
Boise, Idaho 83702
§IDAHO
POWER®
An IDACORP company
Re: Jack Ranch Projects -Your June 12, 2012, E-Mail to Josh Harris
Dear Mr. Carkulis:
This letter responds to your e-mail of June 12,2012,toldaho Power's Josh
Harris. As we have discussed several times and as you are fully aware, Idaho Power's
Tariff Schedule 72 is the governing Tariff/document for PURPA OF Generator
Interconnections to Idaho Power's system. Schedule 72 provides that "The Company
[Idaho Power] will construct, own, operate and maintain all equipment, Upgrades and
Relocations on the Company's electrical side of the Interconnection Point." IPUC No.
29, Tariff No.1 01, Sheet No. 72-7 . Schedule 72 does incorporate many provisions of
the FERC-approved Large Generator and Small Generator Interconnection Procedures
in the State Schedule 72 process. See IPUC No. 29, Tariff No. 101, Sheet No. 72-3,
sub. 2. Only those provisions of the LGIA and SGIA that are not addressed by
Schedule 72 are applicable in this state jurisdictional generator interconnection process.
Any provisions of the LGIA and/or SGIA that purport to allow a OF project to construct
any facilities used in any way to serve any other Idaho Power customer "on the
Company's electrical side of the Interconnection Point" are not applicable as Schedule
72 requires such facilities to be constructed, owned, operated, and maintained by Idaho
Power. We have specifically discussed this requirement on more than one occasion in
our face-to-face meetings regarding your Jack Ranch projects, as well as several of
your other projects with Idaho Power.
Additionally, the provision you cite to in the LGIA (5.1.3) -if it were applicable in
this situation -applies only to Stand Alone Network Upgrades. As mentioned above,
and as discussed with you previously, any facilities that are involved with the provision
of service by Idaho Power to any other customers are not Stand Alone Upgrades, and
1221 W. Idoho 5t (83702)
P.O Box 70
BoiSE. ID 83707
James Carkulis
June 12, 2012
Page 2 of 4
must be constructed by Idaho Power pursuant to Schedule 72. This includes the
interconnection facilities and upgrades for the Jack Ranch projects.
Further, as we discussed and as you requested, specific language consistent
with what Idaho Power has contracted for with other QF interconnections -specifically
the Thousand Springs GIA -was included in the final GIA, which we provided to you on
May 14, 2012. Those additional provisions would allow Idaho Power to work
cooperatively with you and bring to bear the assistance of third-party contractors and
other methods to reasonably expedite the required work for your interconnection and
upgrades. The Thousand Springs GIA language that you referenced is as follows:
This is a revised date, upward in time from 1/15/11, based
upon Interconnection Customer's needs and requests.
Idaho Power will use reasonable efforts to have IPC's
commissioning completed by 12/31/10. This revised
completion date is contingent upon all materials being
delivered on their scheduled delivery dates, the transmission
line outage occurring as scheduled, receiving all necessary
local, state and federal permits, including FERC and NEPA,
and construction & regional resources being available.
The parties hereby acknowledge that Idaho Power shall not
be liable for any possible damages associated in any way
with Renewable Energy Credits or Attributes, the firm energy
sales agreements, and the like, attributable to
Interconnection Customer, or any of the various projects
named on page one of the GIA, should the 12/30/10 date not
be met.
Under normal efforts to bring the projects online a normal
amount of overtime is utilized. Because of the
Interconnection Customer's desire to meet an IPC
commissioning date of 12/31/10, Interconnection Customer
hereby authorizes IPC to incur additional expenses,
including additional overtime, lodging, travel, and other
expenses needed to bring in other IPC resources and
personnel from other IPC regions as necessary to work on
this interconnection.
The corresponding language that appears in the Jack Ranch GIA is as follows:
Customer has requested an in-service date of 12/15/2012.
Idaho Power does not commit to this date but will use
reasonable efforts to have commissioning complete by
James Carkulis
June 12,2012
Page 3 of 4
6/9/2014. This date is contingent upon all materials being
delivered in a timely manner, as well as other factors, some
of which are described above. The parties hereby
acknowledge that Idaho Power shall not be liable to for any
possible damages associated in any way with Renewable
Energy Credits or Attributes, tax credits, the firm energy
sales agreements, and the like, attributable to Customer, or
any of the various projects named on page one of this GIA,
should the 6/9/2014 date not be met.
Under normal efforts to bring the projects online a normal
amount of overtime is utilized. Because of the Customer's
desire to meet an IPC commissioning prior to 6/9/2014,
Customer hereby authorizes IPC to incur additional
expenses, including additional overtime, lodging, travel, and
other expenses needed to bring in other IPC resources and
personnel from other IPC regions, or to utiliz-e third party
contractors, as necessary to work on this interconnection.
As evidenced by the language quoted above and included in the Final GIA for the
Jack Ranch projects, as long as Exergy is willing to pay the associated additional cost,
Idaho Power will use commercially reasonable efforts -including additional resources of
its own, third-party contractors, and other steps to expedite the required interconnection
work. However, as has been previously communicated to you in writing, even with the
use of such measures to expedite, Idaho Power's estimate is a minimum of 18 months
from payment of funds and execution of the Final GIA to complete the necessary
system upgrades and interconnection facilities. As stated in Idaho Power's April 13,
2012, letter to you:
As stated, Idaho Power will use commercially reasonable
efforts, and work with you to expedite the construction of
your interconnection facilities, including the use of third-party
contractors -and including additional costs -if authorized
and borne entirely by Exergy -to expedite the work required
to interconnect your project to Idaho Power's system,
allowing its energization. However, so as to be clear, I must
reiterate that this does not change Idaho Power's estimate of
a minimum of 18 months from payment of funds and
execution of the GIA to complete the necessary system
upgrades and interconnection facilities required to energize
your project on Idaho Power's system, and even given the
other uncertainties involved, it could take longer than 18
months still.
James Carkulis
June 12, 2012
Page 4 of 4
Your comment and request to include a provision consistent with the Thousand
Springs GIA was received by Idaho Power during the appropriate 30-day comment
period on the Jack Ranch Draft GIA. Idaho Power has incorporated your requested
language into the Jack Ranch Final GIA to extent that Schedule allows. Your additional
request at this late hour to include language from Idaho Power's LGIA is not only
inappropriate, as the time for comment on the Draft GIA has passed, but it also has
been previously and specifically discussed, addressed, resolved. Unfortunately, your
request in your most recent e-mail appears to be another transparent attempt to now set
up legal claims against Idaho Power that have no merit, while purporting to proceed in
good faith and in a commercially reasonable manner -similar to those referenced in
Idaho Power's June 8 letter to you.
Finally, as a reminder, pursuant to the May 14, 2012, letter to you from Idaho
Power's Tess Park, and confirmed by Idaho Power's letter dated June 8,2012, and now
this letter as well, "Failure to submit an executed copy of the enclosed Final GIA, which
includes the estimated milestones for the completion of construction, and complete the
necessary financing arrangements for the Jack Ranch Projects by June 13, 2012, will
result in Idaho Power terminating your generator interconnection request and
withdrawing the Jack Ranch Projects from the generator interconnection queue."
~9wtV(
80novan E. Walker ---
DEW:csb
cc: Lisa Grow, Idaho Power (via e-mail)
Tess Park, Idaho Power (via e-mail)
Randy AHphin, Idaho Power (via e-mail)
Jason Williams, Idaho Power Corporate Counsel (via e-mail)
DONOVAN E. WALKER
Lead Counsel
[e-mail]
June 8, 2012
VIA ELECTRONIC & U.S. CERTIFIED MAIL
RETURN RECEIPT REQUESTED
James CarkuJis
Exergy Development Group
802 West Bannock Street, 12th Floor
Boise, Idaho 83702
Re: Jack Ranch Projects -Your Letter Dated June 1,2012
Dear Mr. Carkulis:
An IOACORP Company
This leUer responds to your leUer dated June 1, 2012, to Lisa Grow wherein you
again make a request that Idaho Power Company ("Idaho Power") agree to extend the
June 30, 2012, Scheduled Operation Dates that you selected and obligated your
projects to in the Firm Energy Sales Agreements ("FESAs") for each of the Jack Ranch
Projects (i.e., Cottonwood Wind Park, Deep Creek Wind Park, Rogerson Flats Wind
Park, and Salmon Creek Wind Park). As we have previously communicated to you,
Idaho Power does not agree to extend those dates.
Your most recent allegation that Idaho Power agreed to a December 2011 on­
line date from a generator interconnection standpoint and that you relied on Idaho
Power's representation of a December 2011 generator interconnection date is
absolutely without merit. December 2011 was the date selected by the Exergy
Development Group ("Exergy") when it submitted its Small Generator Interconnection
Request Application Forms and the Interconnection Request for a Large Generating
Facility on March 12, 2010. Importantly, Exergy submitted five generator
interconnection requests on March 12,2010. GI 322, 223, 324, and 235 were each for
20 megawatt ("MW") projects and GI 327 was for a single 200 MW project. Exergy
subsequently withdrew the requests for GI 322, 323, and 324, leaving GI 325 and GI
327.
The Generator Interconnection Feasibility Study provided to Exergy for GI 325
and 327 by Idaho Power on July 28, 2010 ("Feasibility Study"), states "The proposed in­
service date is December, 2011." This statement is merely a factual recital of the in-
1221 W Idaho 5t (83702)
P.D Box 70
Boise. JD 83707
James Carkulis
June 8, 2012
Page 2 of 6
service date requested by Exergy when it submitted its generator interconnection
application forms for the Jack Ranch Projects. The same is true with the Generator
Interconnection System Impact Study provided to you by Idaho Power on December 29,
2010 ("System Impact Study"), which states, "The proposed in-service date for this
project is December, 2011." Again, this language was included as a mere recitation of
what Exergy requested when it submitted its generator interconnection forms. Nowhere
in those documents does Idaho Power represent, let alone agree, that the generator
interconnection facilities for the Jack Ranch Projects would be constructed and on-line
by December 2011. Indeed, Idaho Power has never represented to Exergy that the
Jack Ranch Projects would be on-line by December 2011.
In fact, Idaho Power communicated to you on multiple occasions, both verbally
and in writing, that Exergy was proceeding at its own risk in signing FESAs in December
2010 with a Scheduled Operation Date of June 3D, 2012, prior to Idaho Power
completing the necessary generator interconnection and transmission studies to
determine how long it would take to construct and/or upgrade such facilities as well as
the cost of such facilities. Specifically, in a letter dated November 17, 2010 (nearly one
month prior to you executing the FESAs) to Exergy's attorney, Peter J. Richardson,
Idaho Power told Exergy that:
It was Idaho Power's understanding that Mr. Carkulis wished
to get the results of the required interconnection and
transmission studies, which will identify the need for and cost
of interconnection facilities and possible transmission
upgrades, prior to the time at which he would sign a Firm
Energy Sales Agreement ("FESA") which would obligate the
projects to a Scheduled Operation Date. As you are aware,
the FESA contains provisions providing for delay damages
should the projects fail to meet the Scheduled Operation
Date set forth in the FESA. These delay damages are
sec'ured by the requirement to post liquid delay damage
security thirty (3~} days subsequent to IPUC approval of the
FESA. As you are also aware, it is your client's
responsibility to work with Idaho Power's Delivery business
unit to ensure that sufficient time and resources will be
available for Delivery to construct the interconnection
facilities, and transmission upgrades if required, in time to
allow the projects to achieve the Scheduled Operation Date
set forth in the FESA. As Mr. Carkulis has previously been
advised, delays in the interconnection or transmission
process do not constitute excusable delays in achieving the
Scheduled Operation Date, and, if the projects fail to achieve
the Scheduled Operation Date at the times specified in the
FESA, delay damages will be assessed. It was for this
James Carkulis
June 8, 2012
Page 3 of 6
reason that Idaho Power was of the understanding that your
client was not yet ready to commit to the execution of a
FESA.
If this is not the case, and if your client wishes to proceed
forward with the execution of a FESA prior to completion of
the interconnection and transmission studies and accept the
associated risk thereto, then Idaho Power can send you a
draft PURPA Wind FESA that contains the most recent and
up-to-date "standard" terms and conditions that have been
approved by the IPUC.
Letter from Donovan E. Walker to Peter J. Richardson dated November 17, 2010, at pp.
1-2.
On November 23, 2010, Exergy's attorney responded to Idaho Power's
November 17,2010, letter by stating:
As you requested, I write to confirm that Exergy, as the
developer for [the Jack Ranch Projects], is willing to sign
contracts including the standard $45/kw delay liquidated
damages clause prior to completion of the entire
interconnection and transmission process for these projects,
including Idaho Power internal processes required to
designate the resource as a network resource. Exergy
understands that, under the current standard contract Idaho
Power would agree to enter into, a delay in achieving the
online date caused by the interconnection or transmission
processes is a delay which will not excuse a possible trigger
in the delay damages clause.
Letter from Peter J. Richardson to Donovan E. Walker dated November 23,2010.
The very next day, on November 24, 2010, Idaho Power sent draft FESAs to
Exergy's attorney, including a cover letter which stated, in part:
Your letter also confirms and acknowledges that your client
wishes to move forward with the FESA, including the
standard, Idaho Public Utilities Commission ("Commission")
approved $45 per kilowatt of project capacity delay security,
prior to completion of the interconnection and transmission
studies and processes. Further, that your client understands
it is their responsibility to work with Idaho Power's Delivery
business u nit to ensure that sufficient time and resources will
James Carkulis
June 8,2012
Page 4 of6
be available for Delivery to construct the interconnection
facilities, and transmission upgrades if required, in time to
allow the projects to achieve the Scheduled Operation Date
that the projects will commit themselves to in the FESA. In
addition, your client has been advised, and accepts the risk,
that delays in the interconnection or transmission process do
not constitute excusable delays in achieving the Scheduled
Operation Date, and if the projects fail to achieve the
Scheduled Operation Date at the times specified in the
FESA, delay damages will be assessed , and delay security
applied. Please allow me to suggest that special
consideration be given to the Scheduled Operation Date
selected by the projects for inclusion and the FESA, such
that with the information available at this time a date is
chosen that has a good probability of providing time for the
anticipated interconnection and possible transmission
upgrades to be completed.
Letter from Donovan E. Walker to Peter J. Richardson dated November 24,2010.
In response, Exergy's attorney sent a letter stating, in part:
Exergy is fully aware of the contracts' provisions and, as you
know has successfully developed many projects using the
standard Idaho Power contract. Exergy is also fully aware of
transmission and interconnection risks, as well as the liquid
security provision.
Letterfrom Peter J. Richardson to Donovan E. Walker dated November 29,2010.
This series of correspondence demonstrates that not only did Exergy have actual
notice of the risks associated with selecting a Scheduled Operation Date in the FESAs
without knowing the time frames or costs associated with interconnection and
transmission facilities for the Jack Ranch Projects, Exergy affirmatively acknowledged
and accepted those risks. With actual knowledge and affirmative acceptance of these
risks, Exergy selected a Scheduled Operation Date of June 30, 2012, in each of the
FESAs, which Exergy executed on December 10, 2010, and which were ultimately
approved by the Idaho Public Utilities Commission on February 11, 2011.
In addition, as a sophisticated developer of generation projects and having
previously developed more than a dozen other PURPA QF wind projects on Idaho
Power's system, Exergy is fully aware of the stUdies Idaho Power must conduct as well
as the processes necessary for generators, such as the Jack Ranch Projects, to
connect to Idaho Power's system. In addition, Exergy is fully aware from its previous
James Carkulis
June 8, 2012
Page 5 of6
development projects with Idaho Power that the factual recitation of the proposed dates
by a generator contained in the Feasibility Study and System Impact Study are in no
way a guarantee by Idaho Power nor even a representation by Idaho Power as to when
generator interconnection facilities will be on-line.
Further, after executing the FESAs, but prior to Idaho Power issuing the Facilities
Study for the Jack Ranch Projects, Exergy requested that Idaho Power make significant
changes to the generator interco nnection facilities configuration for the Jack Ranch
Projects, which required Idaho Power to restudy a large portion of the Jack Ranch
Projects. Specifically, on April 12, 2011, Exergy sent Idaho Power a leUer requesting
several revisions to the Jack Ranch Projects, including reducing Exergy's GI 327 from
200 MW to 84 MW with an option to reduce the interconnection even further to 63 MW
at some point in the future. Further, Exergy requested that the point of interconnection
for the Cottonwood Wind Park, Deep Creek Wind Park and Rogerson Flats Wind Park
be changed from an Idaho Power 138 kilovolt ("kV") line to a 345 kV line. Idaho Power
responded via letter dated April 27, 2011, that a request of this type required Idaho
Power to conduct a material modification review under Idaho Power's Large Generator
Interconnection Procedures. Idaho Power further clarified that the change in the
voltages from 138 kV to 345 kV for three of the four Jack Ranch Projects would require
a restudy of the Facilities Study that was then in progress due to the different integration
voltages and the associated different Idaho Power transmission lines. See letter dated
May 20, 2011, from Dave Angell to James Carkulis. These significant changes
requested by Exergy caused delays in the Jack Ranch Project's generator
interconnection process.
Idaho Power is disappointed in reviewing your June 1, 2012, letter in that it
contains many known misstatements of fact in an attempt to contend that Idaho Power,
and not Exergy, was responsible for any delay that has occurred and the ultimate failure
of Exergy to meet the Scheduled Operation Date that Exergy set for itself. Your letter is
a transparent attempt to now, at this late hour, set up legal claims against Idaho Power
that have no merit, while purporting to proceed in good faith and in a commercially
reasonable manner. For example, at the end of your June 1 letter you state "each of
the Project Companies has made, in good faith and based on the information provided
by Idaho Power Company in the aforementioned studies, the applicable security
deposits with the assumption that Idaho Power Company would be able to construct the
interconnection facilities on the schedule originally set by the interconnection stUdies."
This statement is incorrect.
First, Exergy has completely failed to, and has not to this day, paid the required
construction deposit, nor executed the required Generator Interconnection Agreement
("GIA") in order for Idaho Power to proceed with any of the required detailed design,
engineering, ordering of materials, and construction of the interconnection facilities
and/or transmission upgrades. What Exergy has paid are the required deposits for
Idaho Power to conduct the mandatory studies (Feasibility Study, System Impact Study,
James Carkulis
June 8, 2012
Page 6 of 6
and Facilities Study). none of which provide a valid time line unless and until Exergy
executes the required GIA and pays the requisite construction deposit for work to begin.
Second, as stated above, as a sophisticated developer of generation projects and
having previously developed more than a dozen other PURPA QF wind projects on
Idaho Power's system, Exergy is fully aware of the studies Idaho Power must conduct
as well as the processes necessary for generators, such as the Jack Ranch Projects, to
connect to Idaho Power's system. Exergy is fully aware that the recitation in Section 4
of the Feasibility Study Report of what Exergy requested as an on-line date in its
Generator Interconnection Application (December 2011) is not a representation by
Idaho Power that the required work -which at the Feasibility Study stage is still
unknown -can be accomplished by any date certain.
Additionally, even if Idaho Power were to agree, which it certainly does not. to
change the Scheduled Operation Date in the FESAs, you have requested December 1,
2012, as the new Scheduled Operation Date. Further you state that this December
2012 date is consistent with the interconnection agreements applicable to each Project.
The December 2012 date is most definitely NOT consistent with the anticipated time
line, construction, and upgrades required of the interconnection of the Jack Ranch
Projects. As clearly stated in the final GIA transmitted to you on May 14, 2012. "Idaho
Power does not commit to this date [December 15, 2012] but will use reasonable efforts
to have commissioning co mplete by 6/9/2014." Consequently, your requested change
in the Scheduled Operation Date, even if agreeable to Idaho Power, would not resolve
the problem that exists today, with Exergy insisting upon a Scheduled Operation Date
that is before the time at which the Jack Ranch Projects' interconnection could be
completed.
Lastly, as a reminder, per the May 14, 2012, letter to you from Idaho Power's
Tess Park, "Failure to submit an executed copy of the enclosed Final GIA, which
includes the estimated milestones for the completion of construction, and complete the
necessary financing arrangements for the Jack Ranch Projects by June 13, 2012, will
result in Idaho Power terminating your generator interconnection request and
withdrawing the Jack Ranch Projects from the generator interconnection queue."
Donovan E. Walker
DEW:csb
cc: Lisa Grow, Idaho Power (via e-mail)
Tess Park, Idaho Power (via e-mail)
Randy, Allphin, Idaho Power (via e-mail)
Jason Williams, Idaho Power Corporate Counsel (via e-mail)
01 June 2012
Lisa A. GroW"
Senior Vice Presid~nt, PCl\-\"er Supply
Idaho Po\-ver Company
PO Box 70
Boise. Idaho 83707
Re: Cottonwood Wind Park -Project #31721100, Deep Creek Wind Park -Project # 317'21200,
Rogerson Flats \Vind Park -Project -# 31721300 and Salmon Creek Wind Park -Project # 31 n 1400
Dear Ms. Grow.
Each of Cotwmvood Vo/ind Pm'k, LLC Deep Creck Wind Park, LLC, Rogerson Flats Wind Park.
LLC and Salmon Creck Wind Park LLC (collectively, the "'Project Companies") has entered into an
individual Firm Energy Sales Agreement with Idaho Pov.:er Company dated December 10, 2010
(collectively, the "Proj-::ct PPAs'").
ram \witing this letter on behalf of the Project Companies to ask that Idaho Power Company amend
Appendix 13 (Facility and Point of Delivery) of each of the Project PPAs such that Section B-3
(Scheduled First Energy and Operation Date) reads as follo"l.v5:
~'Seller has selected November 1. 2012 as the Scheduled First Energy Date
Seller has selected Decemher 1. 2012 as the Scheduled Operation Date"
The current schedule gtven by Idaho Power Tnmsmission is December 2013.
This amendment will result in the schedule of the Project PPAs being consistent with each of the
interconnectiOll agreements applicable to each of the projects.
The parties originally agreed to June 30. 2012 as the Schedukd Operation Date because Idaho Power
'Company had originally provided tbe Project Companies with an initial on-line date of December
J I. 2011 based on the intcrc011ncctioll studies. Specifically, the Generator Connector Feasibility
Study final report elated July :28. 20 10 for projects queue #-325 and queue #327 completed by Idaho
Po,,;er Compan)' is premised upon a proposed in-service date of December 20 II (See Section 4.0 of
the final report). Moreover, the Generator Connector System impact Study final report dated
December 29,2010 for projects queue #325 and queue #327 completed by Idaho PmNer Company is
also based on the same proposed in-service dale ()fDecembcr 2011 (See Section 4.0 of the final
repon).
The information we·vl.: received from Idaho IJo\ver Company in these studies has triggered many
events. The project companies left sufficient room to build ii'om the energization date of December
2011 of the substation to completion under the P P A. The project companies have been in continLloll-s
construction of these projects since December of 20 11 based in large part on the information from
Idaho Po\.ver Company contained in these studies. For example, the project companies have ordered
substation equipment, readied the transformer to ship, built roads and excavated foundations. among
other things. It was reasonable for the project companies to take these actions based 011 the fact that
we were getting this information from Idaho Power Company. We hope that we have not relied on
thjs information to our detriment.
Based on the results the studies delivered from Idaho Power Company. the parties included six
months of contingency (should Idaho Power Company experience any delays in the construction of
the necessary interconnection facilities) and. thus, the June 30,2012 date \vas included in each of the
Project PPAs. The Project Companies entered into the Pmjcct PPAs (with the aforementioned dates)
hased in large part on tbc information provided by Idaho Power Company. The Project Comparries
acted in good I~tith and in a commercially reasonable manner based on the informatio11 that Idaho
Power Company pro\·idcd.
Now that Idaho Power Company has made the Project Companies aware that the illlerconnection
facilities will not be completed in order to allow the Project Companies to meet the Scheduled
Operation Date. I am asking simply to have the dates in the Project PPAs reneet what Idaho Power
Company is telling us that th~y will accomplish regarding the interconnection t1lCilities.
Please note, ench of the Project CQl1lpi:H1il: lias made. il1 good faith and based on the infol1nation
provide I b: Idahn Power 'll111 fK1ny in the afnremL'ntioned studies. th<! applicable st.'cllrity deposits
""ith (he assumption that [c1aho Pu'.\'er Company would be able to construct the interconneclion
facilities on the schedule originally set hy1hc inlerconnection studies. The Project Companies have
been diligently trying ro \.\o1'k with Ldalw P w(:r Company to overcome this delay, but it is beyond
the: control of the Project CompaniL's.
If you agree with the amendment. please respond appropriately and r will have the appropriale
amendments drafted for each of the Project PPAs, I am vcry appreciati\"e oryom consideration and
v,,'ould ask for a resolution as soon as possible.
S· I r lI1cere y.'
/" ..... ,.,
/
/··jal11cs T.j::m:k.HH.;';;'s.---
\. ManageF-o f' each oCthe Project Companies
Cc: Idaho Power Company. Cogeneration and Small Power Production
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 25
July 3,2012
VIA email &
AnIOACORPCO~nv
Certified mail # 70113500000156449075
Mr. Josh Gunderson, Project Engineer
Exergy Development Group of Idaho
802 W. Bannock, Suite 1200
Boise, Idaho 83702
Subject: Lava Beds Wind Project # 156 -FINALIDEFICIENCY NOTICE
Dear Mr. Gunderson:
By letter dated June 26, 2012, Idaho Power provided you with an executed Final Generator
Interconnection Agreement ("GIA") for the proposed Lava Beds Wind Project to be
interconnected in Bingham County, Idaho.
Exergy Development Group was to execute and return the Agreement with the required deposit
by 5 pm Mountain Time on July 2, 2012. That time period has expired. Without waiving any
claims or rights pursuant to the qIA, Finn Energy Sales Agreement, or otherwise, Idaho Power
acknowledges receipt ofExergy's claim of force majeure related to this project on July 2,2012.
Idaho Power does not agree with Exergy's claim of force majeure, and will be responding to the
same separately. Because Exergy failed to execute the GIA and failed to make the rectuired
deposit payment, the application for Generation Interconnection has now been deemed
withdrawn, and this project has been removed from Idaho Power's Generation futerconnection
queue.
cc (via email):
Tess Park/IPC
Orlando Ciniglio/IPC
Lisa Loomis/IPC
Aubrae Sloan/IPC
Sincerely,
Josh Harris
Operations Analyst
Ph 208.388.2658
[e-mail]
Donovan Walker/IPC
Jason Williams/IPe
James Carkulis/Exergy
P. O. Ball 70 (83707)
1221 W. Idaho St.
Boise, 10 83702
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 26
July 3,2012
Idaho Power Company
ATTN: Joshua Harris
PO Box 70
Boise, Idaho 83707
Re: Lava Beds Wind Project # 156 -Generator Interconnection Agreement
y
Please find attached the executed Generator Interconnection Agreement for the lava Beds Wind
Project (#159). This document was intended to be a part of the package that was delivered to Idaho
Power yesterday, July 2, 2012, but was inadvertently overlooked in the attorney's office. Please
include this document with the set of other matters that was provided.
Sinceq~IYI
.~~
Dustin Shively
Project Engineer
Exergy Development Group
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101
June 26, 2012
GENERATOR INTERCONNECTION AGREEMENT
Schedule 72
LAVA BEDS WIND PROJECT
18MW
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
TABLE OF CONTENTS
RECITALS ............................................................................................................................................. 1
AGREEMENTS ..................................................................................................................................... 1
1. Capitalized Terms ................................................................................................................ 1
2. Terms and Conditions .......................................................................................................... 1
3. This Agreement is not an agreement to purchase Seller'S power. ........................................ 1
4. Attachments ......................................................................................................................... 1
6. Assignment. LiabiHtv. Indemnity. Force majeure, Consequential Damaqes and Default ....... 4
7. Insurance ............................................................................................................................. 7
8. Miscellaneous ....................................................................................................................... 7
9. Notices ................................................................................................................................. 8
10. Signatures ................. , .......................................................................................................... 9
Attachment 1 ......................................................................................................................................... 1
Attachment 2 ......................................................................................................................................... 1
Attachment 3 ......................................................................................................................................... 1
Attachment 4 ......................................................................................................................................... 1
Attachment 5 ............................................................................................ 0 ........... 0 ................................ 2
Attachment 6 ............................... 0 ....................... 0" 0 ...... 0 ..... 0 ....................................................... 0 ........ 0 1
Attachment 7 .................... 0 .......... 0 ................... 0 ................................ 0" 0 ........ 0 .......... 0 0 ••• 0 ........................ 2
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No.1 01 Page 1 of 9
This Generator Interconnection Agreement ("Agreement") under Idaho Power Company's
Schedule 72 is effective as of the __ day of ,2012 between Exergy Development Group
of Idaho, LLC ("Seller" or "The Project") and Idaho Power Company -Delivery ("Company", or
"Transmission Owner").
RECITALS
A. Seller will own or operate a Generation Facility that qualifies for service under Idaho
Power's Commission-approved Schedule 72 and any successor schedule.
B. The Generation Facility covered by this Agreement is more particularly described in
Attachment 1.
AGREEMENTS
1. Capitalized Terms
Capitalized terms used herein shall have the same meanings as defined in Schedule 72 or in the body
of this Agreement.
2. Terms and Conditions
This Agreement and Schedule 72 provide the rates, charges, terms and conditions under which the
Seller's Generation Facility will interconnect with, and operate in parallel with, the Company's
transmission/distribution system. Terms defined in Schedule 72 will have the same defined meaning in
this Agreement. If there is any conflict between the terms of this Agreement and Schedule 72,
Schedule 72 shall prevail.
3. This Agreement is not an agreement to purchase Seller's power.
Purchase of Seller's power and other services that Seller may require will be covered under separate
agreements. Nothing in this Agreement is intended to affect any other agreement between the
Company and Seller.
4. Attachments
Attached to this Agreement and included by reference are the following:
Attachment 1 -Description and Costs of the Generation Facility, Interconnection
Facilities, and Metering Equipment.
Attachment 2 -One-line Diagram Depicting the Generation Facility, Interconnection
Facilities, Metering EqUipment and Upgrades.
Attachment 3 -Milestones For Interconnecting the Generation Facility.
Attachment 4 -Additional Operating Requirements for the Company's Transmission
System Needed to Support the Seller's Generation Facility.
Attachment 5 -Reactive Power.
Attachment 6 -Description of Upgrades required to integrate the Generation Facility and
Best Estimate of Upgrade Costs.
Attachment 7 -Generator Interconnection Control Requirements.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.c . No. 29, Tariff No. 101 Page 2 of 9
5. Effective Date, Term, Termination and Disconnection.
5. 1 Term of Agreement. Unless terminated earlier in accordance with the provisions
of this Agreement, this Agreement shall become effective on the date specified above and remain
effective as long as Seller's Generation Facility is eligible for service under Schedule 72.
5.2 Termination.
5.2.1 Seller may voluntarily terminate this Agreement upon expiration or
termination of an agreement to se" power to the Company.
5.2.2 After a Default, either Party may terminate this Agreement pursuant to
Section 6.5.
5.2.3 Upon termination or expiration of this Agreement, the Seller's Generation
Facility wiff be disconnected from the Company's transmission/distribution system. The termination or
expiration of this Agreement shall not relieve either Party of its liabilities and obligations, owed or
continuing at the time of the termination. The provisions of this Section shall survive termination or
expiration of this Agreement.
5.3 Temporary Disconnection. Temporary disconnection shall continue only for so
long as reasonably necessary under "Good Utility Practice." Good Utility Practice means any of the
practices, methods and acts engaged in or approved by a Significant portion of the electric industry
during the relevant Ume period, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost consistent with good business practices,
reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or
acts generally accepted in the region. Good Utility Practice includes compliance with WECC or NERC
requirements. Payment of lost revenue resulting from temporary disconnection shall be governed by
the power purchase agreement.
5.3.1 Emergency Conditions. "Emergency Condition" means a condition or
situation: (1) that in the judgment of the Party making the claim is imminently likely to endanger life or
property; or (2) that, in the case of the Company, is imminently likely (as determined in a non­
discriminatory manner) to cause a material adverse effect on the security of, or damage to the
Company's transmission/distribution system, the Company's Interconnection Facilities or the equipment
of the Company's customers; or (3) that, in the case of the Seller, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on the reliability and security of, or
damage to, the Generation Facility or the Seller's Interconnection Facilities. Under Emergency
Conditions, either the Company or the Seller may immediately suspend interconnection service and
temporarily disconnect the Generation Facility. The Company shall notify the Seller promptly when it
becomes aware of an Emergency Condition that may reasonably be expected to affect the Seller's
operation of the Generation Facility. The Seller shall notify the Company promptly when it becomes
aware of an Emergency Condition that may reasonably be expected to affect the Company's equipment
or service to the Company's customers. To the extent information is known, the notification shall
describe the Emergency Condition, the extent of the damage or deficiency, the expected effect on the
operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective
action.
5.3.2 Routine Maintenance, Construction, and Repair. The Company may
interrupt interconnection service or curtail the output of the Seiler'S Generation Facility and temporarily
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 3 of9
disconnect the Generation Facility from the Company's transmission/distribution system when
necessary for routine maintenance, construction, and repairs on the Company's
transmission/distribution system. The Company will make a reasonable attempt to contact the Seller
prior to exercising its rights to interrupt interconnection or curtail deliveries from the Seller's Facility.
Seller understands that in the case of emergency circumstances, real time operations of the electrical
system, and/or unplanned events, the Company may not be able to provide notice to the Seller prior to
interruption, curtailment or reduction of electrical energy deliveries to the Company. The Company
shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Seller.
5.3.3 Scheduled Maintenance. On or before January 31 of each calendar year,
Seller shall submit a written proposed maintenance schedule of Significant Facility maintenance for that
calendar year and the Company and Seller shall mutually agree as to the acceptability of the proposed
schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled
maintenance will take into consideration Good Utility Practices, Idaho Power system requirements and
the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed
maintenance schedule.
5.3.4. Maintenance Coordination. The Seller and the Company shall, to the
extent practical, coordinate their respective transmission/distribution system and Generation Facility
maintenance schedules such that they occur simultaneously. Seller shall provide and maintain
adequate protective equipment sufficient to prevent damage to the Generation Facility and Seller­
furnished Interconnection Facilities. In some cases, some of Seller's protective relays will provide
back-up protection for Idaho Power's facilities. In that event, Idaho Power will test such relays armually
and Seller will pay the actual cost of such annual testing.
5.3.5 Forced Ot,ltages. During any forced outage, the Company may suspend
interconnection service to effect immediate repairs on the Company's transmission/distribution system.
The Company shall use reasonable efforts to provide the Seller with prior notice. If prior notice is not
given, the Company shall, upon request, provide the Seller written documentation after the fact
explaining the circumstances of the disconnection.
5.3.6 Adverse Operating Effects. The Company shall notify the Seller as soon
as practicable if, based on Good Utility Practice, operation of the Seller'S Generation Facility may cause
disruption or deterioration of service to other customers served from the same electric system, or if
operating the Generation Facility could cause damage to the Company's transmission/distribution
system or other affected systems. Supporting documentation used to reach the decision to disconnect
shall be provided to the Seller upon request. If, after notice, the Seller fails to remedy the adverse
operating effect within a reasonable time, the Company may disconnect the Generation Facility. The
Company shall provide the Seller with reasonable notice of such disconnection, unless the provisions of
Article 5.3. 1 apply.
5.3.7 Modification of the Generation Facility. The Seller must receive written
authorization from the Company before making any change to the Generation Facility that may have a
material impact on the safety or reliability of the Company's transmission/distribution system. Such
authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good
Utility Practice. If the Seller makes such modification without the Company's prior written authorization,
the latter shall have the right to temporarily disconnect the Generation Facility.
5.3.8 Reconnection. The Parties shall cooperate with each other to restore the
Generation Facility, Interconnection Facilities, and the Company's transmission/distribution system to
their normal operating state as soon as reasonably practicable following a temporary disconnection.
5.3.9 Voltage Levels. Seller, in accordance with Good Utility Practices, shall
minimize voltage fluctuations and maintain voltage levels acceptable to Idaho Power. Idaho Power
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 4 of 9
may, in accordance with Good Utility Practices, upon one hundred eighty (180) days' notice to the
Seller, change its nominal operating voltage level by more than ten percent (10%) at the Point of
Delivery, in which case Seller shall modify, at Idaho Power's expense, Seller's equipment as necessary
to accommodate the modified nominal operating voltage level.
5.4 Land Rights.
5.4.1 Seller to Provide Access. Seller hereby grants to Idaho Power for the
tenn of this Agreement all necessary rights-of-way and easements to install, operate, maintain, replace,
and remove Idaho Power's Metering Equipment, Interconnection Equipment, Disconnection Equipment,
Protection Equipment and other Special Facilities necessary or useful to this Agreement, including
adequate and continuing access rights on property of Seller. Seller warrants that it has procured
sufficient easements and rights-of-way from third parties so as to provide Idaho Power with the access
described above. All documents granting such easements or rights-of-way shall be subject to Idaho
Power's approval and in recordable fonn.
5.4.2 Use of Public Rights-of-Wav. The Parties agree that it is necessary to
avoid the adverse environmental and operating impacts that would occur as a result of duplicate
electric lines being constructed in close proximity. Therefore, subject to Idaho Power's compliance with
Paragraph 5.4.4, Seller agrees that should Seller seek and receive from any local, state or federal
governmental body the right to erect, construct and maintain Seller-furnished Interconnection Facilities
upon, along and over any and all public roads, streets and highways, then the use by Seller of such
public right-of-way shall be subordinate to any future use by Idaho Power of such public right-of-way for
construction andlor maintenance of electric distribution and transmission facilities and Idaho Power
may claim use of such public right-of-way for such purposes at any time. Except as required by
Paragraph 5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under
this Paragraph 5.4.2.
5.4.3 Joint Use of Facilities. Subject to Idaho Power's compliance with
Paragraph 15.4.4, Idaho Power may use and attach its distribution andlor transmission facilities to
Seller's Interconnection Facilities, may reconstruct Seller's Interconnection Facilities to accommodate
Idaho Power's usage or Idaho Power may construct its own distribution or transmission facilities along,
over and above any public right-of-way acquired from Seller pursuant to Paragraph 5.4.2, attaching
Seller's Interconnection Facilities to such newly constructed facilities. Except as required by Paragraph
5.4.4, Idaho Power shall not be required to compensate Seller for exercising its rights under this
Paragraph 5.4.3.
5.4.4 Conditions of Use. It is the intention of the Parties that the Seller be left in
substantially the same condition, both financially and electrically, as Seller existed prior to Idaho
Power's exercising its rights under this Paragraph 5.4. Therefore, the Parties agree that the exercise
by Idaho Power of any of the rights enumerated in Paragraphs 5.4.2 and 5.4.3 shall: (1) comply with all
applicable laws, codes and Good Utility Practices, (2) equitably share the costs of installing, owning
and operating jointly used facilities and rights-of-way. If the Parties are unable to agree on the method
of apportioning these costs, the dispute will be submitted to the Commission for resolution and the
decision of the Commission will be binding on the Parties, and (3) shall provide Seller with an
interconnection to Idaho Power's system of equal capacity and durability as existed prior to Idaho
Power exercising its rights under this Paragraph 5.4.
6. Assignment, Liability, Indemnity, Force majeure, Consequential Damaqes and Default.
6.1 Assignment. This Agreement may be assigned by either Party upon twenty-one
(21) calendar days prior written notice and opportunity to object by the other Party; provided
that:
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff N.o. 101 Page 5 of9
6.1.1 Either Party may assign this Agreement without the consent of the other
Party to any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the assigning Party
under this Agreement.
6.1.2 The Seller shall have the right to contingently assign this Agreement,
without the consent of the Company, for collateral security purposes to aid in providing
financing for the Generation Facility, provided that the Seller will promptly notify the
Company of any such contingent assignment.
6.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting
the same financial, credit, and insurance obligations as the Seller. Where required,
consent to assignment will not be unreasonably withheld, conditioned or delayed.
6.2 Limitation of Liabilitv. Each Party's liability to the other Party for any loss, cost,
claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from
any act or omission in its performance of this Agreement, shall be limited to the amount of direct
damage actually incurred. In no event shall either Party be liable to the other Party for any
indirect, special, consequential, or punitive damages, except as authorized by this Agreement.
6.3 Indemnitv.
6.3.1 This provision protects each Party from liability incurred to third parties as
a result of carrying out the provisions of this Agreement. Liability under this provision is
exempt from the general limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and actions
relating to injury to or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all other obligations by
or to third parties, arising out of or resulting from the other Party's action or failure to
meet its obligations under this Agreement on behalf of the indemnifying Party, except in
cases of gross negligence or intentional wrongdoing by the indemnified Party.
6.3.3 If an indemnified person is entitled to indemnification under this article as
a result of a claim by a third party, and the indemnifying Party fails, after notice and
reasonable opportunity to proceed under this article, to assume the defense of such
claim, such indemnified person may at the expense of the indemnifying Party contest,
settle or consent to the entry of any judgment with respect to, or pay in full, such claim.
Failure to defend is a Material Breach.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
6.3.5 Promptly after receipt by an indemnified person of any claim or notice of
the commencement of any action or administrative or legal proceeding or investigation
as to which the indemnity provided for in this article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or delay in such notification
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 6 of 9
shall be a Material Breach and shall not affect a Party's indemnification obligation unless
such failure or delay is materially prejudicial to the indemnifying party.
6.4 Force Majeure. As used in this Agreement, "Force Majeure" or "an event of
Force Majeure" means any cause beyond the control of the Seller or of the Company which,
despite the exercise of due diligence, such Party is unable to prevent or overcome. Force
Majeure includes, but is not limited to, acts of God, fire, flood, stonns, wars, hostilities, civil
strife, strikes and other labor disturbances, earthquakes, fires, lightning, epidemics, sabotage, or
changes in law or regulation occurring after the Operation Date, which, by the exercise of
reasonable foresight such party could not reasonably have been expected to avoid and by the
exercise of due diligence, it shall be unable to overcome. If either Patty is rendered wholly or in
part unable to perform its obligations under this Agreement because of an event of Force
Majeure, both Parties shall be excused from whatever perfonnance is affected by the event of
Force Majeure, provided that:
(1) The non-perfonning Party shall, as soon as is reasonably possible after
the occurrence of the Force Majeure, give the other Party written notice describing the
patticulars of the occurrence.
(2) The suspension of perfonnance shall be of no greater scope and of no
longer duration than is required by the event of Force Majeure.
(3) No obligations of either Party which arose before the occurrence causing
the suspension of perfonnance and which could and should have been fully perfonned
before such occurrence shall be excused as a result of such occurrence.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29, Tariff No. 101 Page 7 of9
6.5 Default and Material Breaches.
6.5.1 Defaults. If either Party fails to perform any of the terms or conditions of
this Agreement (a "Default" or an "Event of Default'J, the nondefaulting Party shall cause
notice in writing to be given to the defaulting Party, specifying the manner in which such
default occurred. If the defaulting Party shall fail to cure such Default within the sixty
(60) days after service of such notice, or if the defaulting Party reasonably demonstrates
to the other Party that the Default can be cured within a commercially reasonable time
but not within such sixty (60) day period and then fails to diligently pursue such cure,
then, the nondefaulting Party may, at its option, terminate this Agreement andlor pursue
its legal or equitable remedies.
6.5.2 Material Breaches. The notice and cure provisions in Paragraph 6.6. 1 do
not apply to Defaults identified in this Agreement as Material Breaches. Material
Breaches must be cured as expeditiously as possible following occurrence of the
breach.
7. Insurance.
During the term of this Agreement, Seller shall secure and continuously carry the following
insurance coverage:
7.1 Comprehensive General Uability Insurance for both bodily injury and property
damage with limits equal to $1,000,000, each occurrence, combined single limit. The deductible
for such insurance shall be consistent with current Insurance Industry Utility practices for similar
property.
7.2 The above insurance coverage shall be placed with an insurance company with
an A.M. Best Company rating of A-or better and shall include:
(a) An endorsement naming Idaho Power as an additional insured and loss
payee as applicable; and
(b) A provision stating that such policy shalf not be canceled or the limits of
liability reduced without sixty (60) days' prior written notice to Idaho Power.
7.3 Seller to Provide Certificate of Insurance. As required in Paragraph 7 herein and
annually thereafter, Seller shall furnish the Company a certificate of insurance, together with the
endorsements required therein, evidencing the coverage as set forth above.
7.4 Seller to Notify Idaho Power of Loss of Coverage -If the insurance coverage
required by Paragraph 7.1 shall lapse for any reason, Seller will immediately notify Idaho Power
in writing. The notice will advise Idaho Power of the specific rea'son for the lapse and the steps
Seller is taking to reinstate the coverage. Failure to provide this notice and to expeditiously
reinstate or replace the coverage will constitute grounds for a temporary disconnection under
Section 5.3 and will be a Material Breach.
8. Miscellaneous.
8. 1 Governing Law. The validity, interpretation and enforcement of this Agreement
and each of its provisions shall be governed by the laws of the state of Idaho without regard to
its conflicts of law principles.
8.2 Salvage. No later than sixty (60) days after the termination or expiration of this
Agreement, Idaho Power will prepare and forward to Seller an estimate of the remaining value
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 8 of9
of those Idaho Power furnished Interconnection Facilities as required under Schedule 72 andlor
described in this Agreement, less the cost of removal and transfer to Idaho Powers nearest
warehouse, if the Interconnection Facilities will be removed. If Seller elects not to obtain
ownership of the Interconnection Facilities but instead wishes that Idaho Power reimburse the
Seller for said Facilities the Seller may invoice Idaho Power for the net salvage value as
estimated by Idaho Power and Idaho Power shall pay such amount to Seller within thirty (30)
days after receipt of the invoice. Seller shalf have the right to offset the invoice amount against
any present or futl,lTe payments due Idaho Power.
9. Notices.
9.1 General. Unless otherwise provided in this Agreement, any written notice,
demand, or request required or authorized in connection with this Agreement ("Notice") shall be
deemed properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Seller:
Exergy Development Group of Idaho, LLC
Attn : Dustin Shively
802 W. Bannock, Suite 1200
Boise, 10 83702
Ph: 208-336-9793
If to the Company:
Idaho Power Company -Delivery
Attention: Operations Manager
1221 W. Idaho Street
Boise: Idaho 83702
Phone: [phone] Fax: [phone]
9.2 Billing and Payment. Billings and payments shall be sent to the addresses set
out below:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise, ID 83702
Ph: 208-336-9793
Idaho Power Company -Delivery
Attention: Corporate Cashier
PO Box 447
Salt Lake City Utah 84110-0447
Phone: [phone] email: [e-mail]
9.3 Designated Operating Representative. The Parties may also designate
operating representatives to conduct the communications which may be necessary or
convenient for the administration of this Agreement. This person will also serve as the point of
contact with respect to operations and maintenance of the Party's facilities.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101
Seller's Operating Representative:
Exergy Development Group of Idaho, LLC
Attn: Dustin Shively
802 W. Bannock, Suite 1200
Boise,lD 83702
Ph: 208-336-9793
Company's Operating Representative:
Idaho Power Company -Delivery
Attention: Regional Outage Coordinator -Regional Dispatch
1221 W. Idaho Street
Boise, Idaho 83702
Phone: [phone], or 388-5175 during regular business hours
(after hours Eastern Region 208-388-5185).
Page 90f9
9.5 Changes to the Notice Information. Either Party may change this information by
giving five (5) Business Days written notice prior to the effective date of the change.
10. Signatures,
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Seller
Name: _________ ~~~~~7--~~~#~~-----__________________ __ ,~-~
Title: __ M_a_il_ag_l_n_g __ Me_rnb __ e_r ________________________ _
Date: _J_u_ly_2_,_2_0_1_2 ___ _
For the Company
Name: _______________________________________________________ _
Title: Director, Load Serving Operations -Idaho Power Company
Date: 6/26/12
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 1
Description and Costs of the Generation Facilitv. Interconnection Facilfties and Meterinq
Equipment
Interconnection Details
Type of Interconnection Service: Studied as an Idaho Power Network Resource under PURPA
Full Output: 18 MW
Nominal Delivery Voltage: 34.5 kV
General Facility Description
The proposed project will consist of Idaho Power Company's standard 4 pole overhead generation
interconnection package. It connects to the 34.5kV system out of Idaho Power Company's Haven
substation. The total project output is 1B MW.
Interconnection Point
The Interconnection Point for the lava Beds Project will be the Generator side of Idaho Power
Company's X disconnect switch in the interconnection package. The project's location is BOON and
1900W (in Sections 14, 22, 23, 26, 27, 34 and 35 ofT1 , R32E and Section 2 &3 ofT2S, R32E) in
Bingham County, Idaho. The Point of Change of Ownership will be same as the Interconnection Point.
A drawing identifying the Point of Interconnection is included as Attachment 2.
Seller's Interconnection Facilities
The Seller will install nine Gamesa 2.0MW wind turbines, the Power collector system to, and including
the step-up transformer(s), appropriate grounding measures, and associated auxiliary equipment. The
Seller will build facilities to the Point of Change of Ownership for the generator facility.
The Seller will install equipment to receive signals from Idaho Power Company Grid Operations for
Generator Output Limit Control ("GOlC") -see Attachment 4 Operating Requirements.
The Seller will provide phone service to IPCo's generator interconnect package as described in
Telecommunications below.
The Seller will provide a DNP 3.0 serial data connection to the local Idaho Power Company SCADA
RTU when any communication with Seller-owned and maintained eqUipment is required for GOlC,
voltage control or other plant monitoring or control. Preliminary points lists and functional description
can be obtained from Idaho Power's assigned Project leader.
All interconnection equipment electrically located on the generator side of the Point of Change
Ownership shall be owned and maintained by the Seller.
Other Facilities Provided by Seller
Telecommunications
In addition to communication circuits that may be needed by the Seller, the Seller shall provide the
following communication circuits for Idaho Power's use:
One POTS (Plain Old Telephone Service) dial-up circuit for revenue metering at the generation
interconnection site.
One DDS (Digital Data Service) circuit guaranteed minimum data rate of 19,200 bits per second for
SCADA between the generation interconnection site and a point designated by Idaho Power Company.
The Seller is required to coordinate with the local communications provider to provide the
communications circuits and pay the associated monthly charges. The communication circuits will
need to be installed and operational prior to generating into Idaho Power system. Note that installation
by the local communications provider may take several months and should be ordered in advance to
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 2
avoid delaying the project. If the communication circuit types listed above are not available at the site
by the local communications provider, the Seller shall confer with Idaho Power.
If high voltage protection is required by the local communications provider for the incoming cable, the
high voltage protection assembly shall be engineered and supplied by the Seller. Options are available
for indoor or outdoor mounting. The high voltage protection assembly shall be located in a manner that
provides Idaho Power 24-hour access to the assembly for communications trouble-shooting of Idaho
Power owned equipment.
Ground Fault Equipment
The Seller will install transformer configurations that are Grounded Wye on the high side and will limit
the contribution of ground fault current to 20 amps or less at the Interconnection Point.
Local Service
The Seller is responsible to arrange for local service to their site, as necessary.
Easements
The Seller will provide to IPCO a surveyed (Metes & Bounds) legal description along with exhibit map
for IPCO's facilities. After the legal description has been delivered to IPCO for review, IPCO will supply
to the Seller a completed IPCO easement for signature by the land owner of record . Once the
signatures have been secured, the Seller will return the signed easement to IPCO for recording. IPCO
construction will not proceed until the appropriate easements are secured.
Idaho Power Company's Interconnection Facilities
Idaho Power will install a standard generation interconnection package that will connect to distribution
feeder HAVN042. If the Seller is going underground to the Interconnection Point, Idaho Power will
include a pole riser for the Seller to install cables to interconnect to the Idaho Power system. If the
Seller is going overhead to the Interconnection Point, it will be a a tension not to exceed the design
tension specified by Idaho Power.
The new interconnection package will include four distribution poles to mount a local service
transformer, solid blade disconnects, primary metering package, recloser, relays, fuses and riser
necessary for the package. The interconnection will be controlled by a SEL-311 C protection relay. The
relay will be located in a pole-mounted enclosure and will also contain a test switch (TS4), SLSS, dialup
modem, 202 modem, isolation interface, power supply, DC converter, control switch and surger
piOtector.
All interconnection equipment electrically located on the utility side of the Interconnection Point shall be
owned, operated, and maintained by Idaho Power.
Estimated Cost & Ownership
The following good faith estimates are provided in 2011 dollars
--~----~~--~~.~~----~~ btRri lion Ownership
Generation Facilities: . -. --
Provided by Seller
Interconnection Facilities:
Overhead Generation Interconnection Package
(See ATTACHMENT 6 for Project Grand Total)
TOTAL
Seller $N/A
IPCO $225,000
$225,000
Full payment is required up front in accordance with Section 9, unless payment arrangements are
made in advance with Idaho Power Operations Finance.
Billing for construction activities will be based upon actual expenditures.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 2
One-line Diagram Depicting the Small Generation Facilitv. Interconnection Facilities. Metering
Equipment and Upgrades
Idaho Power Company Generator Interconnection Agreement # 156
I,P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Attachment 3
Milestones
Idaho Power Company agrees only to the Construction timelines under its direct control provided in the
Facility Study Report for this Project.
These milestones will begin, and the construction schedule referenced below, will only be valid upon
receipt of funding in full from the Seller or their authorized third party no later than the date set forth
below for such payment. Additionally, failure by Seller to make the required payments as set forth in
this Agreement by the date(s) specified below will be a material breach of this Agreement, which may
result in any or all of the following: (i) loss of milestone dates and construction schedules set forth
below: (ii) immediate termination of this Agreement by Idaho Power; (iii) removal from the generator
interconnection queue.
--....... ;.......;.~~~"O"';';;;'~--l onsibility as agreed to by the Parti_·e_s_: _______ -----~_.____.
Date
17/2/12
'11/3/12
Milestones
'01 01 loIn/12 ~I/~
IConstruction funding received by Idaho Power
:Customer GOLC/Reactive controls ready to connect i-------------r---------------------IIPea Construction Complete
--~ ,11/24/12 IIPCO Commissioning Complete -----_._-----------11124112
11/24/12 ----!12/15/12
IPca
I Seller -"--Seiler ---------'--
Agreed to by:
'Project Leader issues Construction Complete Letter ----. ---_._-----.. ..--
Customer testing begins ----------Customers requested In-Service Date
For the Interconnection Customer /r ¢:::: Date July 2, 2012 -~--~-=---~~~-------
For the Transmission Provider
Idaho Power Company
~p~ ______________ Date 6/26/12
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No. 101 Page 1 of 2
Attachment 4
Additional Operat;ng Requirements for the Company's Transmission System and Affected
Systems Needed to Support the Sellers Needs
The Company shall also provide requirements that must be met by the Seller prior to initiating
parallel operation with the Company's Transmission System.
Operating Requirements
The project is required to comply with the applicable Voltage and Current Distortion Limits found in
I EEE Standard 519-1992 IEEE Recommended Practices and Requirements for Harmonic Control in
Electrical Power Systems or any subsequent standards as they may be updated from time to time.
Voltage flicker at startup and during operation will be limited to less than 5% as measured at the
Interconnection Point. It is preferable to bring each generating unit online separately to minimize
voltage flicker on the distribution system.
Seller will be able to modify power plant facilities on the generator side of the Interconnection Point with
no impact upon the operation of the transmission system whenever the generation facilities are
electrically isolated from the transmission system via the X disconnect switch and a terminal clearance
is issued by Idaho Power Company's Grid Operator.
Generator Output Limit Control (ItRe~dispatch" or sSGOLC'')
The Project will be subject to reductions directed by Idaho Power Company Grid Operations during
transmission system contingencies and other reliability events. When these conditions occur, the
Project will be subject to Generator Output Limit Control ("GOlC") and have equipment capable of
receiving signals from Idaho Power for GOlC. Generator Output imit Control will be a setpoint from
Idaho Power to the Project indicating maximum output allowed.
Low Voltage Ride Through
The Project must be capable of riding through faults on adjacent sections of the power system without
tripping due to low voltage. The Project must be capable of remaining interconnected for any single
phase voltage as low as 0.7 PU for 30 cycles, and for all three phase voltages as low as 0.8 PU for 30
cycles.
Meteorological Data
Historical wind data -Within 60 days after execution of this Agreement, the Seller shall provide Idaho
Power with the following:
a) historical wind data in an electronic format from the proposed Facility site or for a location within two
miles of the Facility site.
b) a third party wind assessment study report used by Seller to value investment in the Facility.
No later than 30 days prior to the Commercial Operation Date. the Seller shall have either:
a) Erected at the site at least one (1) high quality, approximate hub-height (plus or minus 20 meters),
permanent, meteorological wind measurement tower(s) at location(s) on the site equipped with:
(I) Two (2) anemometers per tower;
(ii) Two (2) air temperature sensors per tower;
(iii) One (1) barometric pressure sensor (with DCP sensor); and
(iv) Two (2) wind vanes per tower, or
b) Arranged to provide Idaho Power approximate hub-height wind speed, wind direction, air
temperature, barometric pressure, and data from a meteorological wind measurement tower within two
miles of the Facility site.
Facility availability status shall be provided no later than within the calendar month following the month
of the Commercial Operation Date. Failure by the Seller to operate and maintain this equipment to
provide such meteorological and turbine availability data in a manner to provide reasonably accurate
Idaho Power Company Generator Interconnection Agreement # 156
I.P.u.C. No. 29. Tariff No. 101 Page 2 of2
and dependable data for the full term of this Agreement shall be an event of Default under paragraph
6.5.1.
The associated cost for obtaining this data is the Sellers responsibility and was not included in the
Facility Study Report cost estimate.
Commercial Operation Requirements
The Seller will be granted a requested Commercial Operation date only when all requirements have
been met under this GIA and Idaho Power Company's Power Sales Agreement.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29. Tariff No. 101 Page 1 of 1
Attachment 5
Reactive Power Requirements
The project must be controlled to operate at unity power factor +/-300 kVar. Voltage flicker at startup
and during operation will be limited to less than 5% as measured at the Interconnection Point. It is
preferable to bring each generating unit online separately to minimize voltage flicker on the distribution
system.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 1
Attachment 6
Company's Description of Special Facilities and Upgrades Required to Integrate the Generation
Facilitv and Best Estimate of Costs
As provided in Schedule 72 this Attachment describes Upgrades, Special Facilities, including
Network Upgrades, and provides an itemized best estimate of the cost of the required facilities.
Upgrades
Substation Upgrades
Idaho Power will upgrade the LTC on the transformer at Haven Substation and install a local service
transformer on the feeder side of the substation breaker for hot-line check. Idaho Power will also install
a transfer trip scheme via SCADA at Haven Substation.
The following good faith estimates are provided in 2011 dollars:
es n
Substatio,!-Upgrades:
LTC Upgrade
Local Service Transformer/Transfer Trip
TOTAL
Interconnection costs (from Attachment 1) TOTAL
!PROJECT GRAND TOTAL
IPCO
IPCO
$2,000
$30,000
$32,000
$225,000
$257,000
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 1 of 2
Attachment 7
Generation Interconnection Control Requirements
Generator Output Limit Control (GOLC)
IPC requires Interconnected Power Producers to accept GOlC signals from our EMS.
The GOlC signals will consist of two points shared between the IPC EMS and the Customer's
Generator Controller:
GOle Setpoint: An analog output that contains the MW value the Customer should curtail to, should a
GOlC request be made via the GOlC On/Off discrete output Control point.
An Analog Input feedback point must be updated (to reflect the GOlC setpoint value) by the Customer
Controller upon the Controller's receipt of the GOlC setpoint change, with no intentional delay.
GOlC On/Off: A discrete output (DO) control point with latching Off/On states. Following a "GOlC On"
control, the Customer Controller will run power output back to the MW value specified in the GOlC
Setpoint. Following a "GOlC Off" control, the Customer is free to run to maximum possible output.
A Discrete Input feedback point must be updated (to reflect the GOlC DO state) by the Customer
Controller upon the Controller's receipt of the GOlC DO state change, with no intentional delay.
If a GOlC control is issued, it is expected to see MW reductions start within 1 minute and plant output
to be below the GOlC Setpoint value within 10 minutes.
Idaho Power Company Generator Interconnection Agreement # 156
I.P.U.C. No. 29, Tariff No. 101 Page 2 of 2
Generation Interconnection Data Points Requirements
Digital Inputs to IPCo (DNP Obj. 01 , Var. 2)
Index Description State (0/1) Comments:
0 52A Customer Capacitor Breaker (ifp!esent) Open/Closed Sourced at substation
1 GOlC OfflOn Control Received (Feedback) Off/On Provided by Customer
Digital Outputs to Customer (DNP Obj. 10, Var.1)
Index Description Comments:
0 GOlC Off/On Provided by IPCO
NOTE: GOlC Setpoint indicates MW value to curtail to when GOlC Off/On DO is ON.
Analog Inputs to IPCo (DNP Obj. 30, Var. 2)
Raw Raw EU EU
Index Description High low High EU low Units Comments:
GOlC Setpoint Value Received -Provided by
0 : (Feedback) 32767 32768 TBD TBD MW Customer
Spare -hold for Voltage Control Setpoint -Provided by
1 Value Rec'd (Feedback) 32767 32768 TBD TBD kV Customer
-Provided by
2 Maximum Park Generating Capacity 32767 32768 TBD TBD MW Customer
-Provided by
3 Number of Turbines In High Speed Cutout 32767 32768 32767 -32768 Units Customer
-For Provided by
4 Ambient Temperature 32767 32768 327.67 -327.68 C Customer
-Provided by
5 Wind Direction 32767 32768 3276.7 -3276.8 Deg Customer
MPH
-or Provided by
6 Wind Speed 32767 32768 327.67 -327.68 mls Customer
Analog Out puts to Customer (DNP Obj. 40, Var. 2)
Raw Raw EU EU EU
Index Description High low High low Units Comments:
-
0 GOlC Setpoint 32767 32768 TBD TBD MW Provided by IPCO
-
1 Spare -hold for Voltage Control Setpoint 32767 32768 TBD TBD kV Provided by I PCO
NOTE: Curtailment Setpoint indicates MW value to Curtail to when Curtailment Off/On DO is ON.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 27
DONOVAN E. WALKER
Lead Counsel
[e-mail]
July 30, 2012
VIA E-MAIL AND U.S. MAIL
[e-mail]
Josh Gunderson, Project Engineer
Exergy Development Group of Idaho
802 West Bannock, Suite 1200
Boise, Idaho 83702
[e-mail]
Peter J. Richardson
RICHARDSON & O'LEARY, PLLC
515 North 27th Street
P.O. Box 7218
Boise, Idaho 83707
IIl&UtO POWER®
An IDACORP Company
Re: Lava Beds Wind Project, GI #156 ("Lava Beds") -Termination of
Generator Interconnection Agreement
Messrs. Gunderson and Richardson:
By letter dated June 26, 2012, from Idaho Power Company's ("Idaho Power")
Josh Harris to Exergy Development Group of Idaho's ("Exergy") Josh Gunderson, Idaho
Power accepted Exergy's proposed changes to the dates contained in the May 23,
2012, Final Generator Interconnection Agreement ("GIA") for Lava Beds and forwarded
a final GIA containing those changes and signed by Idaho Power for Exergy's signature.
As stated in the June 26 letter, "The GIAs that you [Exergy] returned to Idaho Power
were not signed by Exergy, contrary to statements in the cover letter." Further, Exergy
had made the allegation in its June 25, 2012, letter that, "It has been Exergy's recent
experience that an executed GIA submitted to Idaho Power does not come with the
reasonable expectation that it will be countersigned. For this reason Exergy will await
Idaho Power's countersignature to this GIA before submitting payment." Consequently,
Idaho Power's June 26, 2012, letter forwarded to Exergy a Final GIA, executed by Idaho
Power, that contained Exergy's requested dates, and provided for the completion of
Idaho Power construction by November 10, 2012, and completion of the interconnection
by December 15,2012, as Exergy had requested.
That same June 26, 2012, letter states clearly that the only thing remaining and
needed in order to proceed with the interconnection of the Lava Beds Wind Project was
for Exergy to sign the GIA and to pay the required funding. In addition, the letter states,
"Failure to return a signed copy of this GIA and have funding in place by 5:00 p.m.,
Mountain Time, on July 2. 2012, will result in Idaho Power terminating the present
1221 W. Idaho St (83702)
P.O. Box 70
Boise, ID 83707
Josh Gunderson
Peter J. Richardson
July 30, 2012
Page 2 of 2
generator interconnection request and withdrawing the Lava Beds Wind Project from
the generator interconnection queue." (Emphasis in original.)
On July 2, 2012, rather than executing the GIA and paying the required funds, as
it had previously said it would in its June 25, 2012, letter, Exergy hand delivered a claim
of force majeure to Idaho Power. Then, on July 5, 2012, Idaho Power received a signed
GIA, along with a cover letter stating that, "This document was intended to be part of the
package that was delivered to Idaho Power yesterday, July 2, 2012, but was
inadvertently overlooked in the attorney's office." To this date, Exergy has made no
payment or other financial arrangements to pay the required construction funding
($257,000) necessary to move forward with the interconnection and the executed GIA.
The GIA executed by both Idaho Power and Mr. Carkulis, on behalf of Exergy,
provides:
These milestones wi!! begin, and the construction schedule
referenced below, will only be valid upon receipt of funding in
full from the Seller [Exergy] or their authorized third party no
later than the date set forth below [July 2, 2012] for such
payment. Additionally, failure by Seller to make the required
payments as set forth in this Agreement by the date(s)
specified below wi!! be a material breach of this Agreement,
which may result in any or all of the following: (i) loss of
milestone dates and construction schedules set forth below;
(ii) immediate termination of this Agreement by Idaho Power;
(iii) removal from the generator interconnection queue.
On July 3, 2012, Idaho Power's Josh Harris sent a letter to Exergy informing that
because it had failed to make the required deposit payment, that the application for
generator interconnection of Lava Beds Wind Project "has now been deemed
withdrawn, and this project has been removed from Idaho Power's Generation
Interconnection queue."
PLEASE BE ADVISED: Because of Exergy's failure to make the required
construction deposit payment pursuant to the executed GIA between Exergy and Idaho
Power for the Lava Beds Wind Project, the GIA is now hereby terminated. You will
receive, under separate cover, Idaho Power's Complaint and Petition for Declaratory
Order filed with the Idaho Public Utilities Commission related to this matter and the
termination of the Firm Energy Sales Agreement between Lava Beds and Idaho Power.
alker
DEW:evp
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-12-23
IDAHO POWER COMPANY
ATTACHMENT 28
July 13,2012
Donovan Walker
Legal Department
Idaho Power Company
1221 West Idaho Street
Boise, ID 83702
RE: Notch Butte Wind Park's Notice of Force Majeure
Dear Donovan:
With reference to your letter of July 11,2012, to Josh Gunderson (re: Notch Butte Wind Park
-GIA #349 & #359 and Final GIA and Your Letter Dated July 9, 2012), on behalf of Notch Butte
Wind Park LLC ("Notch Butte"), the undersigned responds as follows:
1. Thank you for acknowledging your receipt of Notch Butte's Notice of Force Majeure
on July 2,2012. Notch Butte respectfully acknowledges your stated position of disagreement
therewith. However, it is Notch Butte's position that your receipt of the Notice of Force Majeure,
regardless your disagreement therewith, nonetheless imposes a suspension of both parties'
performance for the duration of the event of force majeure.
This is not a case of Notch Butte being in default of its FESA prior to giving the Notice of
Force Majeure.
This is not a case where Notch Butte's tender or posting of a security is conditioned upon a
requested performance by Idaho Power.
This is a case, however, where the Notice of Force Majeure has been given in compliance
with Article XVI of the FE SA, with the particulars ofthe occurrence of Force Majeure set forth
therein.
2. Without limitation upon the foregoing, and with the express non-waiver of and the
express reservation of any and all rights and remedies under the FES1\., as well as any and all rights
and remedies otherwise available to Notch Butte, including pursuant to PERC intervention with
respect to FERC jurisdictional matters, and including by statute, tort or contract law, the following is
specifically called to your further attention:
(i) The Notice of Force Majeure previous given and received by you is
incorporated herein by this reference thereto, in all respects as if fully set forth herein. A suspension
of both parties' performance has been put into effect. Idaho Power's disagreement with respect
thereto does not affect that suspension. If Idaho Power disputes this, then pursuant to Section 22.1
of the FESA, Idaho Power is contractually obligated to submit the matter to the Commission for
~x2rgy Devel'Jpment Group .31)2 W Ba'-'nor:~, 12'" [:!oor Boise,ID 83702 P 208336 '979.3 f= 208 336 9431
resolution. Idaho Power has no ability to resolve the matter in its own favor simply by unilateral
fiat.
(ii) Of particular note is the fact that pending IPUC Case No. GNR-E-I1-03
discloses, among other things, the ongoing attempt by Idaho Power to modify provisions of the
FESA with respect to curtailment and REC ownership, thereby engaging in what is perceived by
Notch Butte to be anticipatory breach by Idaho Power of Section 26.1 of the FESA which disallows
modification without a writing signed by both Notch Butte and Idaho Power. The unilateral attempt
by Idaho Power to obtain through Commission intervention substantive modification ofthe FESA
makes it impossible for Notch Butte to further perform with any certainty its obligations under the
FESA. Accordingly, in addition to the unilateral activities ofIdaho Power (which are beyond the
control of Notch Butte and clearly not within the reasonable foresight of Notch Butte so as to have
been avoided by the exercise of due diligence by Notch Butte) being within the defmition of Force
Majeure, the unilateral activities ofIdaho Power also create grounds for the declaration by Notch
Butte of anticipatory breach by Idaho Power of its obligations under the FESA, not only with respect
to Section 26.1, but also, without limitation, with respect to Idaho Power's implicit obligation of
good faith and fair dealing under the FESA. Notch Butte therefore reserves the right to give formal
Notice of Default under Section 22.2 of the FESA with respect to the foregoing anticipatory breach
of Idaho Power, pending its further consideration of same.
Please be guided accordingly.
~~ ~.~----------
/ / James Carkul· L--/ Notch Butte Wind Park, LLC
E;<ergv Oeveloprnent Group 802 IN Bannock, 12,h Floor Boise, 10 83702 P 208 336.9793 F 208 336 9431