20110318Alpha Wind Comments.pdf

Peter J. Richardson (ISB # 3195)
Gregory M. Adams (ISB # 7454)
RICHARSON & O'LEARY, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter(irichardsonandolear.com
greg(irichardsonandoleary .com
f7 r~/~. '" .,.... ""-~'
If: /10;: 33
Attorneys for Alpha Wind LLC, Bravo Wind LLC,
Charlie Wind LLC, Delta Wind LLC, and Echo Wind LLC
BEFORE THE IDAHO
PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARDING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND ALPHA WIND, LLC
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND BRAVO WIND, LLC
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARDING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND CHARIE WIND, LLC
) CASE NO.IPC-E-IO-51
)
)
)
) COMMENTS OF ALPHA WIND LLC
)
)
)
) CASE NO. IPC-E-IO-52
)
)
)
)
) COMMENTS OF BRAVO WIND LLC
)
)
) CASE NO.IPC-E-IO-53
)
)
)
)
) COMMENTS OF CHARIE WIND
) LLC
)
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND DELTA WIND, LLC
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARDING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND ECHO WID, LLC
) CASE NO.IPC-E-IO-54
)
)
)
)
) COMMENTS OF DELTA WIND LLC
)
)
) CASE NO. IPC-E-IO-55
)
)
)
)
) COMMENTS OF ECHO WIND LLC
)
)
COMES NOW, Alpha Wind LLC, Bravo Wind LLC, Charlie Wind LLC, Delta Wind
LLC, and Echo Wind LLC, each of which is managed by Cotterel WindEnergy Center LLC
(collectively the "Cotterel WindEnergy Center LLCs"), and pursuant to the Idaho Public Utilties
Commission's ("Commission's") Notice of Modified Procedure and Order No. 32188, hereby
fies these Comments in the above-captioned matters.! For the reasons set forth below, the
Cotterel WindEnergy Center LLCs respectfuly request that the Commission approve the Firm
Energy Sales Agreements ("FESAs") with Idaho Power for each of the five projects.
The relevant facts for each of these five projects are substatially similar. Counsel for the
Cotterel WindEnergy Center LLCs has therefore fied a single set of Comments applicable to all
five projects to save the Commission and other interested parties from the need to review five
separate sets of Comments.
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-I0-55
PAGE 2
INTRODUCTION
The five Cotterel WindEnergy Center LLCs are each located near Burley, Idaho, and are
each qualifying facilties ("QFs") entitled to contracts with rates set at Idaho Power's ful
avoided costs, under the Public Utility Regulatory Policies Act of 1978 ("PURP A"), as
implemented by the Idaho Public Utilties Commission. Alpha Wind LLC, Bravo Wind LLC,
Delta Wind LLC, and Echo Wind LLC will have an output of 29.9 megawatts ("MW"), and
Chalie Wind LLC will have an output of 27.6 MW. Each will generate 10 average monthly
megawatts ("aMW") or less. The Cotterel WindEnergy Center LLCs and their predecessors and
parent companes began developing these wind projects in 2001, and possess rights to use all
federal, state, and private lands necessar for the projects. They have proceeded through a
System Impact Study with Idaho Power for interconnection of a larger overall output of 177
MW, under a queue position which the projects stil retain. Interconnection is feasible based on
the existing studies.
In total, the developers of the five projects have spent approximately $7 milion. The
Cotterel WindEnergy Center LLCs' predecessor project was the finalist in Idaho Power's June
2009 wind request for proposals ("RFP").
On October 28,2010, the Cotterel WindEnergy Center LLCs provided Idaho Power with
five stadard PURP A contracts contaning non-Ievelized rates in Order No. 31025, executed by
the Cotterel WindEnergy Center LLCs. After Idaho Power, along with A vista Utilities and
Rocky Mountain Power, fied the Joint Motion to Reduce the Published Rate Eligibility Cap on
November 5, 2010, the Cotterel WindEnergy Center LLCs each filed complaits against Idaho
COMMENTS OF ALPHA WIN LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WID LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-I0-55
PAGE 3
Power on November 8, 2010, alleging they were entitled to standard PURPA contracts and Idaho
Power had uneasonably required the projects to proceed though unecessar interconnection
and transmission processes in response to the QFs' contract submitts when the QFs already
possessed the rights obtained though Idaho Power's Large Generator Interconnection Process in
its Open Access Transmission Tarff ("OATT"). Idaho Power and the Cotterel WindEnergy
Center LLCs agreed to stay the complaint proceedings and execute stadard QF wind contracts.
On Friday, December 10, 2010, after the QFs agreed to proceed through Idaho Power's new
interconnection and transmission process in response to Idaho Power's continued insistence to
use that process, Idaho Power provided five executable contracts. The Cotterel WindEnergy
Center LLCs executed the agreements on December 13, 2010, and sent them to Idaho Power,
which executed the originals on December 15, 2010, and filed the contracts for Commission
approval on December 16,2010.
On Febru 7, 2011, the Commssion issued Order No. 32176, wherein it reduced the
eligibility cap to 100 kilowatts ("kw") for wind and solar QFs, and stated the effective date of the
order would be December 14,2010. Idaho Power informed the QFs on February 23,2011, that it
had incorrectly determined the QFs must proceed through the new transmission process, and
stated it would instead continue the process under Idaho Power's OATT, which is how the QFs
proposed proceeding all along. Because the Cotterel WindEnergy Center LLCs meet any
grandfathering test for entitlement to the published avoided cost rates, the Commission should
COMMENTS OF ALPHA WIND LLC, BRAVO WID LLC, CHARLIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-I0-52, IPC-E-1O-53, IPC-E-1O-54, IPC-E-1O-55
PAGE 4
approve all five contracts.2
LEGAL BACKGROUND
A. The Public Utilty Regulatory Policies Act of 1978's Mandatory Purchase Provisions
This case involves the Commission's implementation of the mandatory purchase
obligation of PURP A, which requires electric utilties to purchase power produced by
cogenerators or small power producers that obtain status as a QF. 16 U.S.C. § 824a-3(a)(2).
Congress's intent "was to encourage the promotion and development of renewable energy
technologies as alternatives to fossil fuels and the constrction of new generating facilities by
electrc utilties." Rosebud Enterprises, Inc. v. Idaho Pub. Uti!. Commn., 128 Idaho 609, 613,
917 P.2d 766, 780 (1996). "Traditional electric utilties were reluctat to purchase power from,
and sell power to, the nontraditional facilties." FERC v. Mississippi, 456 U.S. 742, 750, 102
S.Ct. 2126, 2132-2133 (1982). To overcome this problem, "§ 210(a) (of PURPA) directs the
(Federal Energy Regulatory Commission ("FERC")), in consultation with state regulatory
authorities, to promulgate such rules as it determnes necessar to encourage cogeneration and
small power production, including rues requiring utilties to offer to sell electricity to, and
purchase electricity from, qualifying cogeneration and small power production facilties." Id,
456 U.S. at 750-51, 102 S.Ct. at 2133.
The price PURPA section 21O(b) requires the utilties to pay to QFs in exchange for a
2 The Cotterel WindEnergy Center LLCs note that several paries to GNR- E-l 0-04 have
disputed whether the effective date of Order No. 32176 could be retroactively effective on
December 14, 2010. For puroses of these comments, the Cotterel WindEnergy Center LLCs
will use December 14, 2010, as the effective date, without conceding that the Commission had
the authority to make the reduction in the eligibility cap retroactively effective.
COMMENTS OF ALPHA WIN LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-1O-55
PAGE 5
QF's electrcal output is termed the avoided cost rate, which is the cost to the utilty of producing
the energy itself or purchasing it from an alternative source. 16 U.S.C. § 824a-3(b), (d). FERC
promulgated regulations requiring utilties to compensate QFs for the utilties' full avoided cost.
18 C.F.R. § 292.304(a), (b); Small Power Production and Cogeneration Facilties; Regulations
Implementing Section 210 of the Public Utilty Regulatory Policy Act of 1978, 45 Fed. Reg.
12,214, 12,222-12,223 (Feb. 25, 1980). The U.S. Supreme Cour directly affired FERC's
"full-avoided-cost rule," American Paper Institute, Inc. v. FERC, 461 U.S. 402, 417-18, 103
S.Ct. 1921, 1930 (1983), and that rule is stil in effect today.
FERC's reguations entitle QFs to long term contract rates set at the utilties' ful avoided
costs at the time the QF commits itself to a legally enforceable obligation to deliver its project's
output. 18 C.F.R. § 292.304(a), (b), (d)(2)(ii); JD Wind 1, LLC, "Order Denying 'Request for
Rehearing, Reconsideration or Clarfication,''' 130 FERC ir 61,127, ir 23 (Februar 19, 2010).
Furher, FERC's regulations require utilties to publish "stadard rates" available for long term
contracts available to QFs below a state-implemented maximum generating capacity. 18 C.F.R.
§ 292.304(c)(1)-(3). The Idaho Commission requies utilities in Idao to make the rates in the
published rate schedule available to QFs that generate less than 10 aMW. See US. Geothermal,
Inc. v. Idaho Power Company, Case No. IPC-E-04-8, Order No. 29632, p. 14 (2004). On
February 7, 2011, however, the Commission reduced the eligibility cap to 100 kw for wind and
solar QFs and stated the effective date of this reduction would be December 14,2010. See Order
No. 32176, at pp. 11-12.
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-1O-55
PAGE 6
B. PURP A Grandfathering Criteria
When the published rates change, or become otherwse unavailable to a QF before the QF
can obta a contrt, the QF is entitled to grandfathered rates if it can "demonstrate that 'but for'
the actions of (the utilty, the QF) was otherwse entitled to a power purchase contract." Earth
Power Resources, Inc. v. Washington Water Power Company, Case No. WWP-E-96-6, Order
No. 27231 (1997) (finding utilty delayed negotiations and therefore QF was entitled to
grandfathered rate); see also Blind Canyon Aquaranch v. Idaho Power Company, Case No. IPC-
E-94-1, Order No. 25802 (1994); Snow Mountain Pine v. Maudin, 84 Or. App. 590, 600, 734
P.2d 1366, 1371 (1987).
The most onerous test the Commission has ever used for determining grandfather
eligibilty is the pre-fied complaint test. This test requires, prior to the effective date of the rate
change, the QF must have obtained an executed contract, or have filed a meritorious complaint at
the Commssion alleging it is entitled to a contract. See A. W Brown Co., Inc. v. Idaho Power
Co., 121 Idaho 812, 816-18,828 P.2d 841, 845-47 (1992). The Idaho Supreme Cour has never
mandated ths test as the Commission's only available way to test whether a QF had effected a
legally enforceable obligation, and the Commission has not applied this onerous pre-filed
complaint test consistently. See, e.g., Blind Canyon Aquaranch, Order No. 25802; Earth Power
Resources, Inc., Order No. 27231.
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHAIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-I0-55
PAGE 7
PROCEDURA AND FACTUAL BACKGROUND
A. Development Overview
Boise-based Windland Inc. began development of the wind resource on Cotterel
Mountain in 2001. Affdavit of Kevin Simmons, at ir 3. Windland and Shell Wind Energy Inc.
("SWE") entered into a Project Development Agreement in 2003 to jointly share in the
development and costs associated with permitting a wind generating complex of up to 200 MW
in capacity. Id at ir 4. Although Windland retains a substatial financial interest in the project's
success, in 2008, SWE purchased the controllng interest in the project from Windland and has
been continuing the development, environmental monitoring and marketing of the project. Id at
ir 5.
Since development began in 2001 the development parers have performed extensive
wind data collection and analyses, constrctabilty reviews, an intensive and a very expensive
Environmental Impact Study required due to the project's location on land managed by the
United States Bureau of Land Management, and other related project development activities. Id
at ir 6. To date, the parners have invested approximately $7 milion. Id at ir 7. They curently
possess all real property rights and permits necessar to build the QF projects, as well as the
necessar local zoning permits. Id at irir 9-15.
In addition to a capital investment of close to $300 millon requied to complete
development of the QFs, the project will provide significant local benefits in terms of
constrction jobs (approximately 250) and ful time jobs (approximately 18), property taxes and
other direct benefits for the local economy. Id at ir 8.
COMMENTS OF ALPHA WIND LLC, BRAVO WID LLC, CHARIE WIND LLC, DELTA
WIN LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-1O-52, IPC-E-1O-53, IPC-E-I0-54, IPC-E-I0-55
PAGE 8
B. Discussions with Idaho Power prior to PURP A submittal
Because the Cotterel Mountain wind resource area lies within the Idaho Power's service
terrtory and is very near the Idaho Power transmission system, Windland began discussions with
Idaho Power in 2002. Id at irir 20-21. In 2006, SWE bid the Cotterel Mountain Project into
Idaho Power's RFP seeking up to 150 MW of wind energy. Id. at ir 22. Idaho Power did not
select the Cotterel Mountain Project in that RFP, but Idaho Power subsequently solicited a
proposal from SWE to sell the development rights to Idaho Power. Id at irir 23-24. SWE
expended time and expenses to submit a detailed proposal, but Idaho Power never responded to
SWE's proposal. Id at ir 24-25.
SWE bidded the Cotterel Mountain Project into Idaho Power's 2009 RFP, as a 150 MW
project. Id at ir 26. In late 2009, Idaho Power informed SWE that it had selected the Cotterel
Mountain Wind project as a short-list bidder. Id at ir 27. After many months of negotiations, it
appeared to SWE that the final contract terms were settled in July 2010. Id at ir 28. But Idaho
Power subsequently requested very signficant additional concessions and ultimately terminated
the negotiations and closed the RFP in sumer 2010. Id at ir 29. At that time, SWE was stil
interested in continuing the negotiations to reach a final agreement. Id at ir 30.
Though the years, Windland and SWE have been engaged in the interconnection process
with Idaho Power's interconnection and transmission personnel through Idaho Power's Large
Generator Interconnection Process under its OATT. Id at ir 31. Idaho Power first completed an
interconnection feasibilty study on July 1, 2005, which indicated that up to 240 MW could be
safely injected into the local transmis~on system at cost acceptable to the development parers.
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WIN LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-1O-55
PAGE 9
Id at irir 32-33.
In October 2009, SWE re-activated the interconnection process with Idaho Power for a
project of a reduced size of 177 MW, and was told that because no new generation had been
proposed in the area since the original Feasibilty Study in 2005 Idaho Power would move
directly into the System Impact Study ("SIS") as Generator No. 302. Id at ir 34. Idaho Power
completed the SIS on March 15,2010, which concluded that the full output of 177 MW could be
successfully integrated into the Idaho Power Transmission system at the point of interconnection
without significant modifications to the transmission system. Id at ir 35. The Project entered
into a Facilties Study Agreement on April 22, 2010. Id at ir 36. In July 2010, Idaho Power
contacted SWE regarding the Facility Design Study and began to arange a series of calls to
discuss construction costs and schedules to meet a December 2012 online date. Id at ir 37.
C. The Qualifing Facilties' Contracts Submittals
In fall 2010, SWE developed five qualifying facilties at the Cotterel Mountain Wind
Complex. Id at ir 38. Alpha Wind LLC, Bravo Wind LLC, Delta Wind LLC, and Echo Wind
LLC will each have an output of 29.9 MW, and Charlie Wind LLC wil have an output of 27.6
MW. Id at ir 39. These QFs will each generate 10 megawatts or less when the output is
averaged over any given month. Id The generation equipment of each is separated by at least
one mile at the closest points. Id In October 2010, the five projects were each self-certified as
qualifying facilities. Id at ir 40.
On October 28, 2010, the Cotterel WindEnergy Center LLCs provided Idaho Power with
.
five stadard PURP A contracts contaning the non-Ievelized rates in Order No. 31025, executed
COMMENTS OF ALPHA WIND LLC, BRAVO WIN LLC, CHAIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-I0-55
PAGE 10
by the Cotterel WindEnergy Center LLCs. Id at ir 41. These five contracts were mirror images
of the most recently approved wind QF stadard contract at the time (from Case No. IPC-E-09-
25), with the exception that the Cotterel WindEnergy Center LLCs' contracts contained different
project specifics, lower rates contained in Order No. 31025, and a higher delay liquidated
damages security amount of $45 per kw consistent with the most recent QF contracts. ld at ir 42
and Exhibits 1 - 5.3 SWE provided a cover letter with each of the contracts indicating that the
QFs planed to use a single point of interconnection and continue though the interconnection
process already in progress under Generator Interconnection Request No. 302. Id at ir 43 and
Exhibits 1 - 5.
SWE also contacted Idaho Power transmission and interconnection personnel to inform
them of the reduced overall output of the projects to 147 MW and a change in turbine. Id at ir
44. But on November 4, 2010, Idaho Power sent letters of understading requiring that SWE
agree, prior to execution of the PURP A agreements, that SWE would proceed though new
interconnection and transmission processes. Id at ir 45. Idaho Power's proposed letters of
understading required a signature agreeing to the new process with new milestones to be
achieved before power purchase contracts execution, and included draft Network Resource
Integration Study Agreements, and Transmission Capacity Application Questionnaires for each
QF. Id at ir 46.
3 These October 28th contracts are attached as Exhibits 1-5 to the Afdavit of Kevin
Simmons. In each of the individua cases, the Cotterel WindEnergy Center LLCs have attached
only the Exhibit corresponding to the contract at issue in that case. For example, only the
October 28th contract submittl applicable to the Alpha Wind LLC project is filed with the
Affdavit of Kevin Simmons in Case No. IPC-E-I0-51.
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-1O-55
PAGE 11
Then, on November 5, 2010, Idaho Power, along with Avista Utilties and Rocky
Mountan Power, filed the Joint Motion to Reduce the Published Rate Eligibilty Cap. See Case
No. GNR-E-1O-04. The Cotterel WindEnergy Center LLCs each fied complaints against Idao
Power on November 8, 2010, alleging they were entitled to standard contracts and that Idaho
Power had insisted on an unecessar interconnection and transmission process when the
projects possessed rights acquired through Generator Interconnection Request No. 302. See Case
Nos. IPC-E-I0-51, IPC-E-I0-52, IPC-E-1O-53, IPC-E-1O-54, and IPC-E-1O-55. The
Commission did not grant the immediate reduction in the published rate eligibilty cap requested
by the Joint Utilities, and on November 19, 2010, Idaho Power and the Cotterel WindEnergy
Center LLCs agreed to stay the complaint proceeding in order to execute stadard QF wind
contracts containing the published rates. Affdavit of Kevin Simmons, at ir 49.
On November 30,2010, Idaho Power tendered a draf contract for each QF substantially
similar to the QFs' drafs modeled on the IPC-E-09-25 contract and delivered on October 28,
2010. Id at ir 50. Idaho Power again insisted in a letter dated December 7, 2010, that the QFs
agree to proceed through a different process for securing transmission to Idaho Power's load
center from that in the OATT under their existing Generator Interconnection No. 302. Id at ir
51. Because Idaho Power insisted this new process was a prerequisite to obtaning executed
power sale contracts, the Cotterel WindEnergy Center LLCs had previously signed and
submitted the November 4, 2010 letters of understading, and now each individual QF submitted
the Transmission Capacity Application Questionnaire on December 9,2010. Id at ir 52.
On Friday, December 10, 2010, Idaho Power tendered five executable contracts which
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARLIE WID LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-1O-55
PAGE 12
were substatially similar to those submitted by the Cotterel WindEnergy Center LLCs on
October 28,2010. Id at ir 53. The Cotterel WindEnergy Center LLCs executed the agreements
on December 13, 2010, and sent them to Idaho Power, which executed the originals on
December 15,2010, and fied the contracts for Commission approval on December 16,2010. Id
at ir 54.
On December 21,2010, Idaho Power's PURPA contracts administration deparent sent
letters to each of the QFs asserting that each project must sign a Network Resource Integration
Study Agreement and submit a deposit of $2,000 by Januar 3,2011. Id at ir 55. Idaho Power
stated this was necessar under the new transmission process, outlined in its November 4,2010
letters of understanding, and that if the QFs did not submit the deposit and the agreement by
Januar 3, 2011, the network transmission request would be withdrawn. Id at irir 56-57. The
letter provided for no delay in this requiement for the intervening holidays. Id at ir 57. The
Cotterel WindEnergy Center LLCs signed the Network Resource Integration Study Agreements
on December 30, 2010, electronically mailed scaned copies to Idaho Power on December 31,
2010, and sent the originals by overnight delivery on that same day to ensure that they would
arve on Monday, Januar 3, 2011. Id at ir 59. The QFs transferred the $2,000 for each QF by
wire transfer on Januar 3,2011. Id at ir 60.
But on Februar 22, 2011, Idaho Power refuded the $10,000 provided for the new
transmission study process. Id at ir 61. Idaho Power stated in a letter from its transmission
personnel on Febru 23, 2011, that it approved SWE's changes from the original Generator
Interconnection request of 177 MW to a smaller interconnection of only 148 MW for PURP A
COMMENTS OF ALPHA WID LLC, BRAVO WIND LLC, CHARIE WIN LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-1O-53, IPC-E-1O-54, IPC-E-1O-55
PAGE 13
projects, and would proceed with the same Generator No. 302 under the Large Generation
Interconnection Procedures of the OATT. Id at ir 62. This is the process SWE requested Idaho
Power follow for the QFs when SWE first submitted contracts on October 28, 2010, and the
process each QF alleged it was entitled to follow in the Complaints filed on November 8, 2010.
Id at ir 63. Idaho Power now apparently agrees that the Cotterel WindEnergy Center LLCs may
proceed through the interconnection process under the OATT.
COMMENTS
A. The Cotterel WindEnergy Center LLCs each satisfy the grandfather tests.
There is no question that the Cotterel WindEnergy Center LLCs each entitled themselves
to long term contracts with rates set at the published avoided costs prior to the reduction in the
eligibility cap, because each obligated itself to a legally enforceable obligation to deliver its
project's output before December 14,2010. See 18 C.F.R. § 292.304(a), (b), (d)(2)(ii).
Each QF satisfies even the most stringent grandfather test ever used by the Commission
because each had a meritorious complaint on fie at the Commission on November 8, 2010. See
A. W Brown Co., Inc., 121 Idaho at 816-18, 828 P.2d at 845-47. Each project's complaint
alleged Idaho Power had unjustifiably refused to accept a binding offer to enter into a stadard
PURPA contract and unjustifiably required each QF to proceed through a new interconnection
and transmission process, which would delay execution of contracts. See Complaints, at irir 7,9,
16, Case Nos. IPC-E-I0-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-1O-55. The
allegations proved meritorious because Idaho Power agreed to execute stadad PURP A
contracts. Indeed, each project had even executed Idaho Power's final version of the FESAs on
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARIE WIND LLC, DELTA
WID LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-I0-55
PAGE 14
December 13, 2010. Affdavit of Kevin Simmons, at ir 54. That Idaho Power did not sign the
agreements until December 15, 2010 makes no difference because Idaho Power provided the
final FESAs itself on December 10, 2010, and obviously had no remaining issues with the
contract terms. Id at ir 53. Furer, execution of final agreements by both paries was delayed
by Idaho Power's refusal to execute the FESAs (expressed in its letter dated November 4,2010)
until after the QFs agreed to proceed though a different interconnection and transmission
process, which Idaho Power itself has subsequently stated to be the incorrect process. Id at irir
43-46,51-52,61-63.
Furer, the $7 milion spent on developing the projects and the advanced stage of their
maturty evidences their intent to obligate themselves to the FESAs. See In the Matter of Cassia
Wind to Determine Exemption Status, Case No. IPC-E-05-35, Order No. 29954, pp. 2-4 (2006)
(finding wind QF entitled to grandfathered rates based on matuity of development of project
when it had merely submitted a completed application for interconnection study, including the
applicable fee, and had performed wid studies, commenced preliminar permitting and
licensing activities, and made efforts to secure sites to place tubines). Prior to the rate change
date, the projects' managing company had obtaned interconnection studies establishing the
feasibilty to interconnect output in excess of that needed for the five QFs, Afdavit of Kevin
Simmons, at ir 35, had obtained all necessar real property rights, id at irir 9-19, and had
negotiated various aspects of the project with Idaho Power for several years, id at irir 20-54.
Indeed, the Cotterel WindEnergy Center LLCs were matue enough that their predecessor wind
resource complex was the final bidder in Idaho Power's 2009 RFP. Id at irir 27-28.
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARIE WIND LLC, DELTA
WID LLC, AND ECHO WIN LLC
CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-1O-53, IPC-E-1O-54, IPC-E-1O-55
PAGE 15
Finally, knowledge of the contract terms fuer evidences the intent of the QFs in this
case to obligate themselves prior to the effective date. See In the Matter of the Application of
Idaho Power Company for Approval of a Firm Energy Sales Agreement with Yellowstone Power
Company, Case No. IPC-E-I0-22, Order 32104, p. 12 (2010) (approving of grandfathered rates
despite "the apparent lack of any written documentation . . . evidencing that the terms of a power
purchase agreement were materially complete (before the rate change)" in par because the QF
had "familarity with PURP A projects and the stadard terms of Idaho Power's power purchase
agreements"). Each of the Cotterel WindEnergy Center LLCs executed stadard PURP A
agreements on October 28,2010, a month and a half
in advance of December 14,2010. Affdavit
of Kevin Simmons, at ir 42 and Exhbits 1-5. The terms of those contracts differed minimally
from those provided by Idaho Power on December 10,2010, which the QFs signed on December
13,2010.
B. The Contract terms and Idaho Power's most-current wind integration study allay
the concerns raised in Idaho Power's Application regarding system reliabilty and
cost.
Idaho Power asserted in each of its Applications that "the request in this Application. . . is
made with the specific reservation of rights and incorporation of the averments set fort in the
Joint Petition regarding the possible negative effects to the (sic) both the utilty and its customers
of additional and unfettered PURPA QF generation on system reliabilty, utility operations, and
costs of incorporating and integrating such a large penetration level of PURPA QF generation
COMMENTS OF ALPHA WIND LLC, BRA va WIND LLC, CHAIE WIND LLC, DELTA
WINDLLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-I0-55
PAGE 16
into the utilty's system." Application, at p. 3.4 Because the terms of the FESAs in ths case and
the curent wind integration charge protects ratepayers, and because the projects obligated
themselves prior to the effective date of the eligibility cap reduction, the QFs submit that Idaho
Power's concerns should not preclude Commission approval of the contracts.
First, the Commission should consider the system reliabilty and wind integration
discussion in the Northwest and Intermountain Power Producers Coalition's ("NIPPC")
Comments in GNR-E-1O-04. See NIPPC Opening Comments, Case No. GNR-E-1O-04, pp. 13-
16 (Dec. 22, 2010). In those Comments, NIPPC pointed out that, despite Idaho Power's
statements in the Joint Motion regarding 1100 MW being near Idaho Power's minimum loads,
Idaho Power's own wind integration study concluded that even at 1200 MW of wind capacity on
the Company's system, wid would reach only 80% of its loads and it would do so only for a
few hours per year. See Enernex's Idaho Power 2007 Wind Study, Case No. IPC-E-07-03, p. 34
(Febru 6, 2007). The settlement that resulted after conclusion of that wind integration study
made the avoided cost rates available to wind developers at a rate reduced by $6.50/MWh for
projects coming online when Idaho Power's cumulative wind power is "501 MWand above."
See Order No. 30488, at p. 8. There is no upper cap contained in the order, and Idao Power has
not availed itself of the opportty since to update its wind integration study. Furer, Idaho
Power's wind integration study did not consider the firming abilty of any of the Company's 744
4 Because Idaho Power's Applications in Case Nos. IPC-E-1O-51, IPC-E-I0-52, IPC-E-lO-
53, IPC-E-1O-54, IPC-E-I0-55 are substatially the same, these Comments will refer to them
interchangeably as the the "Application."
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WIN LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPG..E-I0-55
PAGE 17
MW of gas combustion turbine capacity that wil be online by the time the Cotterel WindEnergy
Center LLCs are online in December 2014. See NIPPC Opening Comments, Case No. GNR-E-
10-04, at p. 15. The Commission should also consider that the rates in these PURPA agreements
are lower than those in contracts and self-built projects recently approved for Idaho Power. See
NIPPC Reply Comments, Case No. GNR-E-I0-04, pp. 15-20 (Jan. 21, 2011).
Furher, the FESAs for each QF contain extensive protections for ratepayers which
address the concerns raised by Idaho Power's application. Idaho Power warants that the
Agreements comport with the terms and conditions of the varous Commission Orders applicable
to PURPA agreements for a wind resource. See Application, at p. 4 (citing Order Nos. 30415,
30488, 30738 and 31025). According to those orders, the rate in the FESA for each of the
projects is reduced by the Idaho Power's wind integration charge. Order No. 30488, at pp. 8-9.
The contracts also contain a Mechanical Availability Guarantee, which requires reduced payment
to the QF if its turbines are unavailable for inexcusable reasons. Id The contracts require that
the QF share in the costs of wind forecasting. /d. The FESAs also provide for a reduced rate at
times of the day and months of the year when the energy is worth less to Idaho Power due to
demand and regional market conditions. See Order No. 30415.
Each QF has selected December 31, 2014, as its Scheduled Operation Date, and sections
5.3.2 and 5.8.1 of each FESA contains a liquidated damage and security provision of $45 per kw
of nameplate capacity for failure to achieve that date. That will require the 29.9-MW QFs
(Alpha, Bravo, Delta, and Echo) to each post $1.345 milion, and the 27.6-MW QF (Charlie) to
post $1.242 milion as delay default security after Commission approval of the contracts.
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-1O-55
PAGE 18
The QFs have accepted the provisions in each Agreement and Idaho Power's approved
Schedule 72 regarding non-compensated curlment or disconnection of the QF for system
reliabilty puroses. This provides Idaho . Power the right to exercise "non-compensated
curlment" at times "when the generation being provided by the Facilty in certn operating
conditions exceeds or approaches the minimum load levels of (Idaho Power's) system such that
it may have a detrmental effect upon (Idaho Power's) ability to manage its thermal, hydro, and
other resources in order to meet its obligation to reliably serve loads on its system." Application
at pp. 7-8. Thus, even if there were evidence that system reliability issues may evolve in the
futue, the contracts allow Idaho Power to tae reasonable steps to ensure system integrity.
CONCLUSION
For the reasons set forth above, Alpha Wind LLC, Bravo Wind LLC, Charlie Wind LLC,
Delta Wind LLC, and Echo Wind LLC, respectfuly request that the Commission approve the
Firm Energy Sales Agreements with Idaho Power for each of the five projects.
Respectfuly submitted this 17th day of March 2011,
RICHARDSON & O'LEARY, PLLC
Rf2ds~
Gregory M. Adams
Attorneys for Alpha Wind LLC, Bravo
Wind LLC, Charlie Wind LLC, Delta
Wind LLC, and Echo Wind LLC
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WID LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-I0-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-1O-55
PAGE 19
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 17th day of March, 2011, a tre and correct copy of the
within and foregoing ALPHA WIND LLC, BRAVO WIND LLC, CHAIE WIND LLC,
DELTA WID LLC, AND ECHO WIND LLC and the AFFIDAVIT OF KEVIN
SIMMONS was served as shown to the following paries:
Lisa Nordstrom
Donovan Walker
Idaho Power Company
PO Box 70
Boise, Idaho 83707
dwalker(iidahopower .com
lnordstrom(iidahopower .com
(x) U.S. Mail, Postage Prepaid
( ) Hand Delivered
( ) Overnght Mail
( ) Facsimile
( ) Electronic Mail
Randy Allphin
Idaho Power Company
PO Box 70
Boise, ID 83707
rallphin(iidahopower .com
(x) U.S. Mail, Postage Prepaid
( ) Hand Delivered
( ) Overnght Mail
( ) Facsimile
( ) Electronic Mail
Signed! CJ
ry Adams
COMMENTS OF ALPHA WIND LLC, BRAVO WIND LLC, CHARLIE WIND LLC, DELTA
WIND LLC, AND ECHO WIND LLC
CASE NOS. IPC-E-1O-51, IPC-E-I0-52, IPC-E-1O-53, IPC-E-1O-54, IPC-E-1O-55
PAGE 20
Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (ISB No: 7454)
Richardson & O'Lear, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter(irichardsonandoleary .com
greg(irichardsonandolear .com
;: c~ ...¡. :",...
p f' r)f~ i...3" ! i L ¡ -I' J
Attorneys for Alpha Wind, LLC, Bravo Wind, LLC,
Charlie Wind, LLC, Delta Wind, LLC, and Echo Wind, LLC
BEFORE THE IDAHO
PUBLIC UTILITIES COMMISSIONIN THE MATTER OF THE ) CASE NO.IPC-E-IO-51
APPLICATION OF IDAHO POWER )
COMPANY FOR A DETERMINATION ) AFFIDAVIT OF KEVIN SIMMONS
REGARDING A FIRM ENERGY SALES ) IN SUPPORT OF APPROVAL OF
AGREEMENT BETWEEN IDAHO ) THE ENERGY SALES
POWER AND ALPHA WIND, LLC ) AGREEMENTS FOR ALPHA WIND,
) LLC
)
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARDING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO.
POWER AND BRAVO WIND, LLC
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARDING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND CHARLIE WIND, LLC
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
AFFIDAVIT OF KEVIN SIMMONS
PAGE i
) CASE NO.IPC-E-IO-52
)
) AFFIDAVIT OF KEVIN SIMMONS
) IN SUPPORT OF APPROVAL OF
) THE ENERGY SALES
) AGREEMENTS FOR BRAVO WIND,
) LLC
)
) CASE NO.IPC-E-1O-53
)
)
) AFFIDA VIT OF KEVIN SIMMONS
) IN SUPPORT OF APPROVAL OF
) THE ENERGY SALES
) AGREEMENTS FOR CHARLIE
) WIND, LLC
) CASE NO.IPC-E-IO-54
)
) AFFIDAVIT OF KEVIN SIMMONS
REGARDING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND DELTA WIND, LLC
IN THE MATTER OF THE
APPLICATION OF IDAHO POWER
COMPANY FOR A DETERMINATION
REGARDING A FIRM ENERGY SALES
AGREEMENT BETWEEN IDAHO
POWER AND ECHO WIND, LLC
) IN SUPPORT OF APPROVAL OF
) THE ENERGY SALES
) AGREEMENTS FOR DELTA WIND,
) LLC
)
) CASE NO.IPC-E-IO-55
)
) AFFIDA VIT OF KEVIN SIMMONS
) IN SUPPORT OF APPROVAL OF
) THE ENERGY SALES
) AGREEMENTS FOR ECHO WIND,
) LLC
)
I, Kevin Simmons, do declare the following and if called to testify, would and could
competently testify thereto:
i . I am over the age of 18, and am employed by Shell WindEnergy Inc. in Business
Development.
2. I have directly worked on the development of the qualifying facilities known as
Alpha Wind LLC, Bravo Wind LLC, Charlie Wind LLC, Delta Wind LLC, and Echo Wind
LLC, each of which is managed by Cotterel WindEnergy Center LLC (collectively the "Cotterel
WindEnergy Center LLCs"), and I have personal knowledge of the facts set forth in this affidavit
based upon my work in the development of these projects.
Summary of Development Efforts
3. Development of the Cotterel Mountain Wind Complex ("Complex") was begun
by Boise-based Windland Inc. in 200 i.
4. Windland and Shell Wind Energy Inc. ("SWE") entered into a Development
Agreement in 2003 to jointly share in the development and costs associated with permitting up to
AFFIDAVIT OF KEVIN SIMMONS
PAGE 2
200 megawatts ("MW") of wind generation at the Complex.
5. Although Windland retains a substantial financial interest in the Complex's
success, in 2008, SWE purchased the controllng interest in the Complex from Windland and has
been continuing the development, environmental monitoring and marketing of the Complex.
6. Since 200 i, the development parners have performed extensive wind data
collection and analyses, constructability reviews, an intensive and a very expensive full
Environmental Impact Study pursuant to the National Environmental Policy Act ("NEPA"), and
other related development activities.
7. To date the parners have invested approximately $7 milion dollars in these
mature wind development projects.
8. In addition to a capital investment of close to $300 milion required to complete
development of the QFs, the project wil provide significant local benefits in terms of
construction jobs (approximately 250) and full time jobs (approximately 18), property taxes and
other direct benefits for the local economy.
Real Propert Rights
9. The Cotterel Mountain wind resource area is aligned along the approximately 14-
mile-long Cotterel Mountain ridgeline. All 5 of the Cotterel WindEnergy Center LLC QFs are
located in this wind resource area.
i O. The associated transmission line runs north of the Complex for i 9 miles to a
location north of the Minidoka substation where it wil tie into Idaho Power's 138 kilovolt ("kv")
Minidoka-Adelaide transmission line.
i i. The entire Cotterel Mountain Wind resource area within which the QFs wil be
located consists of over 5,500 acres, and is comprised primarily of Bureau of Land Management
AFFIDAVIT OF KEVIN SIMMONS
PAGE 3
("BLM") and Idaho State lands but also includes transmission easements that have been
procured from four private landowners.
12. The BLM lands are secured pursuant to a right-of-way (49-year lease) granted in
August 2006.
13. The necessar lands managed by the State of Idaho are secured by a lease.
14. The four private landowners have granted easements across their respective
properties.
15. All land use rights have been assigned to Cotterel WindEnergy Center LLC.
Local Zoning Approvals
16. In 2007, Cassia County granted the managers of the Cotterel WindEnergy Center
LLC a conditional use permit for the building of the necessar transmission line across the
private landowners' property.
17. The wind fars themselves are an approved land use and need no Conditional
Use Permit.
18. Minidoka County granted a Special Use Permit for a transmission and substation
easement at the point of interconnection on the Idaho Power transmission line.
19. Both permits have been assigned to Cotterel WindEnergy Center LLC.
Discussions with Idaho Power for sale of energy and capacity
20. Because the Cotterel Mountain wind resource area lies within the Idaho Power's
service territory and is very near the Idaho Power transmission system, Windland and SWE have
always considered Idaho Power to be a logical purchaser of the output.
21. Windland began discussions with John Prescott, then Idaho Power's Vice
President, Power Supply in 2002, and subsequently with Mr. Prescott's successor, Jim Miller,
AFFIDAVIT OF KEVIN SIMMONS
PAGE 4
then Senior Vice President, Power Supply, in 2004.
22. In 2006, SWE bid the Cotterel Mountain Project into Idaho Power's request for
proposals ("RFP") seeking up to 150 MW of wind energy.
23. Idaho Power did not select the Cotterel Mountain Project in that RFP.
24. Idaho Power subsequently solicited a proposal from the project in 2007, to sell the
development rights to Idaho Power, and the parners expended time and expense to submit a
detailed proposal.
25. Idaho Power never responded to the proposal to sell the development rights to the
wind resource area.
26. SWE bidded the Cotterel Mountain Project into Idaho Power's 2009 RFP, as a
150 MW project.
27. Idaho Power informed SWE in October 2009 that it had selected the Cotterel
Mountain Wind project as the short-list bidder.
28. SWE engaged in many months of negotiations, and it appeared to SWE that the
final contract terms were settled in July 2010.
29. Idaho Power subsequently requested very significant additional concessions and
ultimately terminated the negotiations in August 2010.
30. At the time the negotiations ceased, SWE was stil interested in continuing the
negotiations to reach a final agreement.
Project Interconnection and Transmission
3 i. Windland and SWE have been engaged in the interconnection process with Idaho
Power's interconnection and transmission personnel for years through Idaho Power's Large
Generator Interconnection Process under its Open Access Transmission Tariff ("OATT").
AFFIDA VIT OF KEVIN SIMMONS
PAGES
32. Idaho Power assigned Generator Interconnection No. 302, and Idaho Power first
completed an interconnection feasibility study on July 1,2005.
33. The results of that study indicated that up to 240 MW could be safely injected into
the local transmission system at cost acceptable to the development parners.
34. In October 2009, SWE re-activated the interconnection process with Idaho Power
for a project of a reduced size of 177 MW, and was told that because no new generation had been
proposed in the area since the original Feasibility Study in 2005 Idaho Power would move
directly into the System Impact Study ("SIS").
35. Idaho Power completed the SIS on March 15,2010, which concluded that the full
output of 177 MW could be successfully integrated into the Idaho Power Transmission system at
the point of interconnection without significant modifications to the transmission system.
36. The Project entered into a Facilities Study Agreement on April 22, 2010.
37. In July 2010, Idaho Power contacted SWE regarding the Facility Design Study
and began to arange a series of calls to discuss construction costs and schedules to meet a
December 2012 online date.
Qualifying Facilty Contract Requests
38. In fall 2010, SWE decided to exercise its rights under the mandatory purchase
provisions of the Public Utilities Regulatory Policies Act of i 978 to sell the output under long-
term contracts with Idaho Power.
39. SWE developed five projects for a cumulative output of less than it bid into the
RFPs. Alpha Wind LLC, Bravo Wind LLC, Delta Wind LLC, and Echo Wind LLC wil each
have an output of 29.9 megawatts ("MW"), and Charlie Wind LLC wil have an output of 27.6
MW. These QFs are developed to each generate i 0 megawatts or less when the output is
AFFIDAVIT OF KEVIN SIMMONS
PAGE 6
averaged over any given month. The generation equipment of each QF is separated by at least
one mile at the closest points.
40. In October 2010, the five projects were each self-certified as qualifying facilities.
41. On October 28, 20 i 0, the Cotterel WindEnergy Center LLCs provided Idaho
Power with five standard PURP A contracts containing the non-levelized rates in Order No.
31025, executed by the Cotterel WindEnergy Center LLCs.
42. These five contracts were mirror images of the most recently approved wind QF
standard contract at the time (from Case No. IPC-E-09-25), with the exception that the Cotterel
WindEnergy Center LLCs' contracts contained different project specifics, lower rates contained
in Order No. 31025, and a higher delay liquidated damages securty amount of $45 per kilowatt
("kw") consistent with the most recent QF contracts. I have attached true and correct copies of
the October 28,2010 contract submittals as Exhibits 1-5 to this affidavit.
43. SWE provided a cover letter with each of the contracts submitted indicating that
the QFs planed to use a single point of interconnection and continue through the
interconnection process already in progress for Generator Interconnection Request No. 302.
44. SWE also contacted Idaho Power transmission and interconnection personnel to
inform them of the reduced overall output of the projects to 147 MW and a change in turbine.
45. On November 4, 2010, Idaho Power sent letters of understanding requiring that
SWE agree, prior to execution of the PURPA agreements, that SWE would proceed through new
interconnection and transmission processes.
46. Idaho Power's proposed letters of understanding required a signature agreeing to
the new process with new milestones to be achieved before power purchase contracts execution,
and included draft Network Resource Integration Study Agreements, and Transmission Capacity
AFFIDAVIT OF KEVIN SIMMONS
PAGE 7
Application Questionnaires for each QF.
47. Then, on November 5,2010, Idaho Power, along with Avista Utilities and Rocky
Mountain Power, filed the Joint Motion to Reduce the Published Rate Eligibility Cap.
48. The Cotterel WindEnergy Center LLCs each fied complaints against Idaho
Power on November 8, 2010, alleging they were entitled to standard contracts and that Idaho
Power had insisted on an unecessary interconnection and transmission process when the
projects possessed rights acquired through Generator Interconnection Request No. 302. The
Commission docketed the complaint cases as Case Nos. IPC-E-1O-51, IPC-E-IO-52, IPC-E-lO-
53, IPC-E-IO-54, andIPC-E-1O-55.
49. After the Commission did not grant the immediate reduction in the published rate
eligibility cap requested by the Joint Utilities, on November 19, 2010, Idaho Power and the
Cotterel WindEnergy Center LLCs agreed to stay the complaint proceeding and execute standard
QF wind contracts containing the published rates.
50. On November 30, 2010, Idaho Power provided 5 draft contracts substantially
similar to the QFs' drafts modeled on the IPC-E-09-25 contract and delivered by SWE on
October 28,2010.
51. Idaho Power again insisted in a letter dated December 7,2010, that the QFs agree
to proceed through a different process for securing transmission to Idaho Power's load center
from that in the OATT under their existing Generator Interconnection No. 302.
52. Because Idaho Power insisted this new process was a prerequisite to obtaining
executed power sale contracts, SWE had previously signed and submitted the November 4,2010
letters of understanding, and now each individual QFs submitted the Transmission Capacity
Application Questionnaire on December 9, 2010.
AFFIDAVIT OF KEVIN SIMMONS
PAGE 8
53. On Friday, December 10, 2010, Idaho Power tendered five executable contracts
which were substantially similar to those submitted by the Cotterel WindEnergy Center LLCs on
October 28,2010.
54. The Cotterel WindEnergy Center LLCs executed the agreements on December
13, 2010, and sent them to Idaho Power, which executed the originals on December 15, 2010,
and filed the contracts for Commission approval on December 16,2010.
55. On December 21, 2010, Idaho Power's PURPA contracts administration
deparment sent letters to each of the QFs asserting that each project must sign a Network
Resource Integration Study Agreement and submit a deposit of $2,000 by Januar 3, 2011.
56. Idaho Power stated this was necessary under the new transmission process,
outlined in its November 4, 2010 letters of understanding, to study the ability to designate each
project as a network resource.
57. Idaho Power's December 21 letter stated that if the QFs did not submit the deposit
and the agreement by Januar 3, 2011, the network transmission request would be withdrawn.
The letter provided for no delay in this requirement for the intervening holidays.
58. I understood this new process implemented under PURP A to be different from the
process under which SWE had been proceeding pursuant to the OATT.
59. The Cotterel WindEnergy Center LLCs signed the Network Resource Integration
Study Agreements on December 30,2010, electronically mailed scaned copies to Idaho Power
on December 31,2010, and sent the originals by overnight delivery on that same day to ensure
that they would arrive on Monday, Januar 3, 2011.
60. The QFs transferred the $2,000 for each QF by wire transfer on Januar 3, 2011.
61. Subsequently, on February 22,201 i, Idaho Power refunded the $10,000 provided
AFFIDAVIT OF KEVIN SIMMONS
PAGE 9
for the new transmission study process.
62. Idaho Power stated in a letter from its transmission personnel on Februar 23,
2011, that it approved SWE's changes from the original Generator Interconnection request of
177 MW to a smaller interconnection of only 148 MW for PURP A projects, and would proceed
with the same Project No. 302 under the Large Generation Interconnection Procedures of the
OATT.
63. This is the process SWE requested Idaho Power follow for the QFs when SWE
first submitted contracts on October 28, 2010, and the process SWE alleged it was entitled to
follow in the Complaints filed on November 8, 2010.
64. I understand that this OATT process wil analyze Idaho Power's ability to bring
the output to native load and identify whether any network upgrades are required, and that Idaho
Power now agrees with SWE's position that the Cotterel WindEnergy Center QFs may proceed
through the interconnection process under the OATT.
AFFIDAVIT OF KEVIN SIMMONS
PAGE 10
I declare under penalty of peijur under the laws of the United States and under laws of
the state of Texas that the foregoing is true and correct.
DATED this /5 day of March 2011.
.~c.~By
Kevin Simmons
AFFIDA VIT OF KEVIN SIMMONS
PAGE 1 i
STATE OF TEXAS )
COUNTYOF~
) ss.
)
On this \ 5th day of Marh 2011, before me, a Nota Public in and for the State of
Texas, personally appeared Kevin Simmons, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the person who executed this instruent and acknowledged
it to be his free and voluntar act and deed for the uses and puroses mentioned in the
instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year
first above written.
. AI M JOi
7. Co~'''1Q _reet) 7. 2Òl I NOTARY PUBLIC for the State of Texas
Residing at -.it&'h.Tei
My Commission expires J ii/i '1 ) I
AFFIDA VIT OF KEVIN SIMMONS
PAGE 12
I ~ nu i 33. f P¥~ i. ..... ......~ l l l '.*'. .
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC..E..I0-51
ALPHA WIND LLC
AFFIDAVIT OF KEVIN SIMMONS
EXHIBIT NO.1
OCTOBER 28,2010 PURPA CONTRACT SUBMITTAL FOR
ALPHA WIND LLC
~
October 28,2010
Via Hand Delivery
Rady Allphin
PURPA Contracs Admiistrator
Idaho Power Company
121 W. Idaho Street
Boise, Idaho 83702
Re: Alpha Wind LLC PURPA PPA Submittal
Dear Mr. Allphin:
I 'write on behaf of Alpha Wind LLC to reuest that Idaho. Power counter-sign the enclosed power
purchase agment (pP A) for Alpha Wind LLC to sell the output of its wind energy facilty to
Idaho Power as a quaifng facity (QF) under the Public Utilties Regulatory Policy Act of 1978
(pURP A). Alpha Wind LLC intends for this submittl to fully obligate itself to the enclosed
stdard PPA executed by Alpha Wind LLC to operate as a QF under i 0 average monthly
megawatt (aMW). I have also enlose the Foim 556 Notice of Self Certification as a QF fied
yesterday by Alpha Wind LLC with the Federal Energy Reguatory Commssion.
As you may be awae, Idaho Power has alredy engaged in extensive negotiations regarding a
larger, single project with Cotterel WindEnergy Center LLC at the wind site on Cotterel Mountain
nea Burley, Idaho. Coterl WindEnergy Cente LLC is the part company of Alpha Wind LLC,
and as such is trsferring to Alpha Wind LLC the development rights necessa to peifonn under
the enclosed PP A. Thus, Idaho Power should be aware of ths site and that it is matue and ready to
be developed.
The enclosed PURP A PP A contai the stadard rates, teims, and conditons approved by the Idaho
Public Utilities ConussIon (Commission) for projects that wil deliver under 10 aMW. Those
tenns include the rates in effect today (Order No. 31025) with the daily and seasonality load shape
price adjustments (Order No. 3(415), as well as the wind integrtion charge, mechanical availabilty
guarantee, and wind forecating and cost sharing provisions (Order No. 30488).
For consistency with Idaho Power's PPAs, the enclosed Alpha Wind LLC PPA copied the terms
and conditions frm the most recently approved PUR A wind PPA for a project under 10 aM --
the Idaho Winds LLC PPA, which is on fie at the Commission in Case No. LPC-E-09-25. Other
than the Alpha Wind LLC's design and site specifics, the only difference fl:om the Idaho Winds
i.
II.
III.
iv.
V.
Vi.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
xiv.
XV.
XVI.
XVII.
XVIII.
XIX.
XX.
XX.
XXII.
XXIII.
XXIV.
XX.
XXI.
XXI.
XXIII.
XXIX.
Arcle
FIRM ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND ALPHA WIND LLC
TABLE OF CONTENTS
TITLE
Definitions
No Reliance on Idao Power
Waranties
Conditions to Acceptance of Energy
Term and Operations Date
Purchae and Sale of Net Energy
Purchase Price and Method of Payment
Environmenta Attbutes
Facilty and Interconnection
Meterig and Telemetr
Records
Operations
Indemnfication and Insurance
Force Majeure
Liabilty, Dedication
Several Obligations
Waiver
Choice of Laws and Venue
Disputes and Default
Governenta Authorization
Commssion Order
Successors and Assigns
Modification
Taxes
Notices
Additional Terms and Conditions
Severabilty
Counterpars
Entire Agreement Signtures
Appendix A
AppendixB
AppendixC
AppendixD
AppendixE
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FIRM ENERGY SALES AGREEMENT
(10 aMW or Less)
Project Name: Alpha Wind Project
Project Number:
THIS AGREEMENT, entered into on ths _ day of 2010 between ALPHA WID
LLC (Seller), and IDAHO POWER COMPANY, an Idao corporation (Idao Power), hereinafer
sOmetimes referred to collectively as "Pares" or individually as "Par."
WHEREAS, Seller will design constrct, own, maintain and operate an electrc generation
facilty; and
WHREAS, Seller wishes to sell, and Idao Power is willing to purchase, fi electrc energy
produced by the Seller's Facility.
THEREFORE, In consideration of the mutu covenants and agreements hereinafer set fort, the
Pares agee as follows:
ARTICLE I: DEFINITIONS
As used in ths Agreement and the appendices attched hereto, the followig terms shall have the
following meanngs:
1.1 "Availabilty Shortall Price" - The curent month's Mid-Columbia Market Energy Cost mius
the curent month's All Hours Energy Prce specified in paragrph 7.3 of ths Agreement. If ths
calculation results in a value less th 15.00 MilsIKwh the result shall be 15.00 MilsIKwh.
1.2 "Business Days" - means any calendar day that is not a Saturday, a Sunday, or a NERC
recognzed holiday.
1.3 "Calculted Net Energy Amount" - A :ronthly estimate, prepared and documented afer the fact
by Seller, reviewed and accepted by the Buyer that is the calculated monthy maximum energy
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deliveres (measur in Kwh) for each individua wind tubine, totaed for the Facilty to determine the
töta energy that the Facilty could have delivered to Idaho Power durg that month based upon: (1)
each wind tubines Nameplate Capacity, (2) Sufficient Prme Mover available for use by each wind
tubine durng the month (3) incidents of Force majeure, (4) scheduled maintenance, or (5) incidents of
Forced Outages and less Losses and Station Use. If the duration of an event characterized as item 3,4 or
5 above (measured on each individua occurence and individua wid tubine) lasts for less th 15
minutes, then the event will not be considered in ths calculation. The Seller shal collect and maintai
actu data to support ths calculation and shal keep ths data for a minum of 3 years.
1.4 "Commssion" - The Idaho Public Utilities Commission.
1.5 "Contract Year" - The period commencing each calendar year on the same calendar date as the
Operation Date and ending 364 days thereafer.
1.6 "Delay Liquidated Damages" - Damages payable to Idaho Power as calculated in paragraph 5.3,
5.4, 5.5 and 5.6.
1.7 "Delay Penod" - All days past the Scheduled Operation Date until the Seller's Facilty achieves
the Operation Date.
1.8 "Delay Pnce" - The curent month's Mid-Columbia Market Energy Cost minus the curent
month's All Hours Energy Price specified in paragraph 7.3 of ths Agreement. If ths calculation results
in a value less than 0, the result of ths calculation will be o.
1.9 "Designted Dispatch Facility" - Idaho Power's Systems Operations Group, or any subsequent
group designated by Idao Power.
1.10 "Effective Date" - the date stated in the openig paragraph of ths Firm Energy Sales Agreement
representig the date upon which ths Fir Energy Sales Agreement was fuly executed by both Paries.
1.11 "Facilty" - That electrc generation facility described in Appendix B of ths Agreement.
1.12 "First Energy Date" - the day commencing at 00:01 hours, Mountan Time, followig the day
that Seller has satisfied the requiements of Arcle iv and the Seller begis delivering energy to Idaho
Power's system at the Point of Delivery.
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1.13 "Forced Outage" - a paral or total reduction of a) the Facilty's capacity to produce and/or
deliver Net Energy to the Point of Delivery, or b) Idaho Power's abilty to accept Net Energy at the
Point of Delivery for non-economic reasons, as a result of Idaho Power or Facilty: 1) equipment failure
which was not the result of negligence or lack of preventative maintenance or 2) responding to a
transmission provider curlment order or 3) unplaned preventative maitenance to repair equipment
tht left unepaired, would result in failure of equipment prior to the planed maitenance period 4)
planed maitenace or constrction of the Facilty or electrcal lines required to serve ths Facilty. The
Pares shal make commercially reaonable efforts to perform this unplaned preventative maintenance
durng periods of low wid avaiabilty.
1.14 "Heavy Load Hours" - The daily hours beging at 07 :00 am, ending at 11 :00 pm Mountan
Time, (16 hours) excluding all hours on. all Sundays, New Years Day, Memorial Day, Four of July,
Labor Day, Thangiving and Chrstmas.
1.15 "Inadvertent Energy" - Electrc en.ergy Seller does not intend to generate. Inadverten.t energy is
more parcularly described in paragraph 7.5 of this Agreement.
1.16 "IntercoIlection Facilties" .. All equipment specified in Idaho Power's Schedule 72.
1.17 "Intial Capacity Determnation" - The process by which Idaho Power confirs that under
normal or average design conditions the Facilty will generate at no more than 10 average MW per
month and is therefore eligible to be paid the published rates in accordance with Commssion Order No.
29632.
1.18 "Light Load Hours" - The daly hours beginnng at 11 :00 pm, ending at 07 :00 am Mountai
Time (8 hours), plus all other hours on all Sundays, New Years Day, Memorial Day, Four of July,
Labor Day, Thansgiving and Chrstmas.
1.19 "Losses" - the loss of electrcal energy expressed in kilowatt hours (kWh occurg as a result
of the transformation and trsmission of energy between the Meterig Point and the point the Facilty's
energy is delivered to the Idaho Power electrcal system. The loss calculation formula will be as
specified in Appendix B of ths Agreement.
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1.20 "Market Energy Reference Price" - Eighty-five percent (85%) of the Mid-Columbia Market
Energy Cost.
1.21 "Materal Breach" - A Default (paragraph 19.2.1) subject to paragraph 19.2.2.
1.22 "Maximum Capacity Amount" - the maximum capacity (MW) of the Facility will be as
specified in Appendix B of ths Agreement.
1.23 "Mechanca Availability" - the percentage amount calculated by Seller withn 5 days afer the
end of each month of the Facilty's monthy actu Net energy divided by the Facilty's Calculated Net
Energy Amount for the applicable month. Any damages due as a result of the Seller falling short of the
Mechacal A vailabilty Guaantee for each month shall be determed in accordance with paragraph
6.4.4.
1.24 "Mechancal Availability Guatee" shall be as defined in paragraph 6.4.
1.25 "Metering Equipment" - All equipment specified in Schedule 72, ths Agreement and any
additiona equiment specified in Appendix B requied to measure, record and telemeter bi-directiona
power flows from the Seller's Facility at the Meterig Point.
1.26 "Meterig Point" - The physical point at which the Metering Equipment is located tht enables
accurate measurement of the Test Energy and Net Energy deliveries to Idao Power at the Point of
Delivery for ths Facilty that provides all necessar data to adinister ths Agreement.
1.27 "Mid-Columbia Market Energy Cost' - The monthy weighted average of the 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 reportg agency, both Pares will
mutuly agree upon a replacement index, which is similar to the Dow Jones Mid-Columbia Index. The
selected replacement index will be consistent with other simlar agreements and a commonly used index
by the electrcal industr.
1.28 "Nameplate Capacity" - The ful-load electrcal quatities assigned by the designer to a
generator and its prime mover or other piece of electrcal equipment, such as transformers and circuit
breakers, under stadardized conditions, expressed in amperes, kilovolt-amperes, kilowatts, volts or
other appropriate unts. Usualy indicated on a nameplate attached to the individua machine or device.
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1.29 "Net Energy" - All of the electrc energy produced by the Facility, less Station Use, less Losses,
expressed in kilowatt hours (kWh) delivered to Idaho Power at the Point of Delivery. Subject to the
terms of ths Agreement, Seller commts to deliver all Net Energy to Idao Power at the Point of
Delivery for the ful term of the Agreement. Net Energy does not include Inadverent Energy.
1.30 "Operation Date" - The day commencing at 00:01 hours, Mounta Time, following the day that
all requirements of paragrph 5.2 have been completed.
1.31 "Point of Delivery" - The location specified in Appendix B, where Idao Power's and the
Seller's electrcal facilties are interconnected and the energy from ths Facilty is delivered to Idao
Power.
1.32 "Prudent Electrcal Practices" - Those practices, methods and equipment that are commonly and
ordiarly used in electrcal engieerig and operations to operate electrc equipment lawflly, safely,
dependably, effciently and economically.
1.33 "Schedule Operation Date" - The date specified in Appendix B when Seller anticipates
achieving the Operation Date. In establishig this date it is expected that the Seller reasonably
determes this date based upon the best known informtion in regards to equipment availability and
constrction schedules.
1.34 "Schedule 72" - Idaho Power's Tarff No 101, Schedule 72 or its successor schedules as
approved by the Commssion. The Seller shall be responsible to pay all costs of interconnection and
integration of this Facility into the Idao Power electrcal system as specified with Schedule 72 and ths
Agrement.
1.35 "Season" - The thee periods identified in paragraph 6.2.1 of this Agreement.
1.36 "Special Facilities" - Additions or alterations of transmission and/or distrbution lines and
transformers as described in Schedule 72.
1.3 7 "Station Use" - Electric energy that is used to operate equipment that is auxilar or otherwse
related to the production of electrcity by the Facility.
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1.38 "Sufcient Prie Movet' - means wind speed tht is (1) equa to or greater than the generation
unt's manufactuer-specified minimum levels requied for the generation unt to produce energy and (2)
equa to or less than the generation unt~s manufactuer-specified maximum levels at which the
generation unt can safely produce energy.
1.39 "Surlus Energy" - All Net Energy produced by the Seller's Facilty and delivered by the
Facilty to the Idao Power electcal system prior to the Operation Date.
1.40 "Tota Cost of the Facilty" - the tota cost of strctues, equipment and appurenances.
1.41 "Wind Energy Production Forecast" - A forecast of energy deliveres from ths Facility provided
by an Idao Power admnistered wid forecasting modeL. The Facility shall be responsible for an
allocated pòrtion of the total costs of the forecasting model as specified in Appedix E.
ARTICLE II: NO RELIANCE ON IDAHO POWER
2.1 Seller Independent Investigation - Seller warants and represents to Idaho Power that in entering
into ths Agreement and the underg by the Seller of the obligations set fort herein, Seller has
investigated and determined that it is capable of perfonning hereunder and has not relied upon the
advice, experience or expertse of Idao Power in connection with the transactions contemplated by ths
Agreement.
2.2 Seller IndeRendent EXRerts - All professionals or experts includig, but not limited to,
engineers, attrneys and accountats, that Seller may have consulted or relied on in undertg the
1.38 "Sufcient Prie Mover" - mean wind speed that is (1) equa to or greater than the generation
unit's manufctuer-specified minmum levels required for the generation unt to produce energy and (2)
equa to or less than the generation unt's manufactuer-specified maximum levels at which the
generation unt can safely produce energy.
1.39 "Surlus Energy" ~ All Net Energy produced by the Seller's Facilty and delivered by the
Facilty to the Idao Power electrcal system prior to the Operation Date.
1.40 "Total Cost of the Facility" - the tota cost of strctues, equipment and appurenances.
1.41 "Wind Energy Production Forecast" - A forecast of energy deliveries from ths Facilty provided
by an Idaho Power administered wid forecasting modeL. The Facility shall be responsible for an
allocated portion of the tota costs of the forecasting model as specified in Appendix E.
ARTICLE II: NO RELIANCE ON IDAHO POWER
2.1 Seller Independent Investigation - Seller warants and represents to Idao Power that in enterig
into ths Agreement and the undertng by the Seller of the obligations set fort herein, Seller ha
investigated and determined that it is capable of performg hereunder and has not relied upon the
advice, experience or expertse of Idaho Power in connection with the transactions contemplated by ths
Agreement.
2.2 Seller Independent Experts ~ All professionals or experts includig, but not limited to,
engineers, attorneys and accountats, tht Seller may have consulted or relied on in undertg the
trsactions contemplated by ths Agreement have been solely those of Seller.
ARTICLE III: WARTIES
3.1 No Waranty by Idaho Power ~ Any review, acceptace 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 waranties, expressed or implied, regarding any aspect of Seller's design,
specifications, equipment or facilities, including, but not limited to, safety, durabilty, reliabilty,
strengt, capacity, adequacy or economic feasibility.
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3.2 Qualifyg Facilty Statu - Seller warants that the Facilty is a "Quifyng Facilty," as that
term is used and defined in 18 CFR 292.201 et seq. After initial quaification, Seller will tae such steps
as may be requied to maitain the Facilty's Quaifyng Facility status durng the term of ths
Agreement and Seller's failure to maintan Qualifyng Facility statu will be a material Breach of ths
Agreement.
ARTICLE N: CONDITIONS TO ACCEPTANCE OF ENERGY
4.1 Prior to the First Energy Date and as a condition ofIdaho Power's acceptace of deliveries of
energy frm the Seller, Seller shall:
4.1.1 Submit proofto Idaho Power that all licenses, permits or approvals necessar for Seller's
operations have been obtaed from applicable federal, state or local authorities, including, but not
limted to evidence of compliance with Subpar B, 18 CFR 292.201 et seq. as a Qualifying Facilty.
4.1.2 Qpinion of Counel - Submit to Idaho Power an Opinion Letter signed by an attorney
admtted to practice and in good stadig in the State of Idaho providing an opinon that Seller's
licenses, permts and approvals as set fort in paragrph 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 substatial compliance with said permts as of the date of the Opinion Letter. The
Opinion Letter will be in a form acceptable to Idao Power and will acknowledge that the attorney
renderng the opinon understads that Idaho Power is relyig on said opinon. Idaho Power's
acceptance of the form wil not be uneasönably witheld. The Opinion Lettr will be governed by and
shal be interpreted in accordance with the legal opinon accord of the American Bar Association
Section of Business Law (1991).
4.1.3 Intial Capacity Determination - Submit to Idao Power such data as Idaho Power may
reasonably require to perform the Intial Capacity Deterination. Such data will include but not be
limted to, Nameplate Capacity, equipment specifications, prime mover data, resource characteristics,
normal and/or average operatig design conditions and Station Use data. Upon receipt of ths
inormtion, Idaho Power will review the provided data and if necessar, request additional data to
complete the Initial Capacity Determation withn a reasonable time.
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4.1.3.1 If the MaxiIum Capacity specified in Appendix B of ths Agreement and the
cumulative manufactue Nameplate Capacity ratig of the individua generation unts at ths Facilty is
less than 10 MW, the Seller shall submit detailed, manufactuer-specific, verifiable data of the
Nameplate Capacity ratings of the actu individual generation unts to be installed at ths Facilty.
Upon verification by Idaho Power that the data provided establishes the combined nameplate rating of
the generation unts to be intaed at ths Facilty is less than 10 MW, it will be deemed that the Seller
has satisfied the Initial Capacity Determination for this Facility.
4.1.4 Nameplate Capacity - Submit to Idaho Power manufactuer's and engineering
documentation that establishes the Nameplate Capacity of each individua generation unt that is
included with ths entie Facilty. Upon receipt of ths data, Idaho Power shall review the provided
data and determine if the Nameplace Capacity specified is reasonable based upon the manufactuer's
specifed generation ratings for the specific generation unts.
4.1.5 Engieer's Certfications - Submit an executed Engineer's Certification of Design &
Constrction Adequay and an Engineer's Certfication of Operations and Maitenace (O&M) Policy
as described in Commission Order no. 21690. These certificates will be in the form specified in
Appendix C but may be modfied to the extent necessar to recognize the different engineering
disciplines providing the certficates.
4.1.6 Insurance - Submit wrtten proof to Idaho Power of all insurance required in Arcle XIII.
4.1.7 Interconnection - Provide wrtten confiration from Idaho Power's delivery business
unt that Seller has satisfied all interconnection requirements.
4.1.8 Netwo.rk Resource Designation and Transmission Service Request -
4.1.8.1 Provide all data requied by the Idaho Power delivery business unt to enable the
Seller's Facilty to be designted as a network resource.
4.1.8.2 Receive confirmation from the Idaho Power delivery business unt that the
Seller's Facilty has been designated as a network resource.
4.1.8.3 Provide all data required for Idaho Power to submit a Tranmission Service
Request (TSR) for the Seller's Facilty.
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4.1.8.4 Receive confation from Idao Power that the TSR has been granted in
sufcient capacity to meet or exceed the Maximum Capacity and the Seller has paid all costs associated
with any requiements of the TSR.
4.1.9 Written Acceptace - Request and obta wrtten confiration from Idaho Power tht all
conditions to acceptace of energy have been fufilled. Such wrtten confrmation shal be provided
with a commercially reasonable time followig the Seller's request and will not be uneasonably
witheld by Idaho Power.
ARTICLE V: TERM AND OPERATION DATE
5.1 Term.. Subject to the provisions of paragraph 5.2 below, ths Agreement shall become effective
on the date fist wrtten and shall continue in ful force and effect for a period of twenty (20) Contract
Years from the Operation Date.
5.2 9PatonDate.. The Operation Date may occur only afer the Facilty has achieved all of the
followi:
a) Achieved the First Energy Date.
b) Commission approval of ths Agreement in a form acceptable to Idao Power has
been received.
c) Seller has demonstrated to Idaho Power's satisfaction that the Facilty is complete
and able to provide energy in a consistent, reliable and safè maner.
d) Seller has requested an Operation Date from Idao Power in a wrtten formt.
e) Seller has received wrtten confrmation from Idaho Power of the Operation Date.
Ths confation will not be unasonably witheld by Idaho Power.
5.3 ' Operation Date Delay.. Seller shal cause the Facility to achieve the Opration Date on or before
the Scheduled Operation Date.
5.3.1 If the Operation Date occurs afer the Scheduled Operation Date but on or prior to 90
days past the Scheduled Operation Date, Seller shall pay Idaho Power Delay Liquidated
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Damages calculated at the end of each calendar month afer the Scheduled Operation Date as
follows:
Delay Liquidated Damages are equa to ((curent month's Initial year monthy Net Energy
Amount as specified in paragraph 6.2.1 divided by the number of days in the curent month)
multiplied by the number of days in the Delay Period in the curent month) multiplied by the
curent month's Delay Price.
5.3.2 If the Operatîon Date does not occur within niety (90) days followig the Scheduled
Operation Date the Seller shal pay Idaho Power Delay Liquidated Damages, in addition to those
provided in paragraph 5.3.1, calculated as follows:
Fort-five dollars ($45) multiplied by the Maximum Capacity amount with the Maximum
Capacity Amount being measured in kW.
5.4 If Seller fails to achieve the Operation Date withn ninety (90) days after the Scheduled
Opertion Date and Seller has made no commercially reasonable efforts to develop ths Facilty, Idao
Power wil terrnate ths Agreement. If the Seller is makg commercially reasonable effort to develop
ths Facîlty, Idao Power shall not tenninate ths Agreement and additional Delay Damages beyond
those caculted in 5.3.1 and 5.3.2 will be calculated and payable monthy using the delay damage
calculation described in 5.3.1 above for all days exceedig 90 days past the Scheduled Operation Date
until such time as the Seller achieves the Operation Date or until termination of ths Agreement. If
Idaho Power detennines tht the Seller is no longer makng commercially reasonable efforts to develop
ths Facilty Idaho Power shall termate ths Agreement.
5.5 Seller shall pay Idaho Power any calculated Delay Liquidated Damages within 7 days of when
Idaho Power calculates and presents any Delay Liquidated Damages bilings to the Seller. Seller's
failure to pay these damages with the specified time will be a Material Breach of ths Agreement and
Idaho Power may draw fuds from the Delay Securty provided by the Seller in an amount equal to the
calculated Delay Liquidated Damges.
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5.6 The pares agree that the damages Idaho Power would incur due to delay in the Facilty
achieving the Operation Date on or before the Scheduled Operation Date would be diffcult or
impossible to predict with certty, and that the Delay Liquidated Damages are an appropriate
approximation of such daages.
5.7 Withn thrt (30) days of the date of a Commìssion Order as specified in Arìcle XX approvig
ths Agreement; Seller shall post liquid securty ("Delay Securty") in a form as descrìbed ìn Appendix
D equa to or exceedg the amount calculated in paragraph 5.7.1. Failure to post this Delay Securty in
the tie specified above will be a Material Breach of ths Agreement and Idaho Power may terminate
ths Agreement.
5.7.1 Fort-five dollars ($45) multiplied by the Maximum Capacity Amount with the
Maxum Capacity Amount being measured in kW.
5.7.1.1 In the event (a) Seller provides Idaho Power with certification that (1) a
generation interconnection ageement specifyg a schedule tht will enable ths Facilty to achieve the
Operation Date no later than the Scheduled Operation Date has been completed and the Seller ha paid
all requied interconnection costs or (2) a generation interconnection agreement is substatially complete
and all material costs of interconnection have been identified and agreed upon and (b) the Seller is in
compliance with all terms and conditions of the generation interconnection agreement, the Delay
Securty calculated in accordace with paragph 5.7.1 will be reduced by ten percent (10%).
5.7.12 If the Seller has received a reduction in the calculated Delay Securty as specified
in paragraph 5.7.1.1 and subsequently (1) at Seller's request, the generation interconnection agreement
specifed in paragraph 5.7.1.1 is revised and as a result the Facility will not achieve its Operation Date
by the Scheduled Operation Date or (2) if the Seller does not maitain compliance with the generation
interconnection agreement, the ful amount of the Delay Securty as calculated in paragraph 5.7.1 will be
subject to reinstatement and will be due and owing within 15 Business Days from the date Idaho Power
requests reìnstatement. Failure to timely reinstate the Delay Securty will be a Material Breach of this
Agreement.
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5.7.2 Idaho Power shall release any remainig securty posted hereunder afer all calculated
Delay Liquidate Damges are paid in ful to Idaho Power and the earlier of (1) 30 days afer the
Operation Date has been achieved or (2) 30 days afer the termnation of ths Agreement.
ARTICLE VI: PURCHASE AND SALE OF NET ENERGY
6.1 Delivery and Acceptace of Net Energy - Except when either pary's performance is excused as
provided herein, Idao 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 Facilty will also be delivered by the
Seller to Idao Power at the Point of Delivery. At no time will the tota 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
monthy amounts. These amounts shall be consistent with the Mechacal Availabilty Guarantee.
6.2.1 Intial Year Monthy Net Energy Amounts:
Month
Season 1 March
April
May
Season 2 July
August
NOvember
December
Season 3 June
September
October
January
February
Total kWH's
kWH
7,068,000
6,498,000
6,903,233
4,962,300
5,299,381
6,640,094
7,068,000
6,465,409
5,422,300
6,910,015
6,973,137
6,384,000
63,236,732
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6.3 Unless excused by an event of Force Majeure, Seller's failure to deliver Net energy in any
Contract year in an amount equa to at least ten percent (10%) of the sum of the Initial year Monthly Net
Energy Amounts as specified in pargrph 6.2 shall constitute an event of default.
6.4 Mechancal Availability Guatee - After the Operational Date has been established, the
Facilty shal achieve a minimum monthy Mechanical Availabilty of 85% for the Facilty for each
month durg the full term of ths Agreement (the "Mechancal Availabilty Guaantee"). Failure to
achieve the Mechancal Avaiabilty Guarantee shall result in Idaho Power calculatig damages as
specified in paragraph 6.4.4.
6.4.1 At the same tie the Seller provides the Monthy Power Production and Availability
Report (Appendix A), the Seller shall provide and certify the calculation of the Facilty's curent
month's Mechancal Availability. The Seller shall include a sumar of all inormation used to
calculate the Calculated Net energy amount including but not limited to: (a) Force Outages, (b) Force
Majeure events, (c) wid speeds and the impact of generation output and (c) scheduled maitenance and
Station Use information.
6.4.2 The Seller shal maintain and reta for thee yeas detaled documentation supportng the
monthy calculation of the Facilty's Mechacal Availabilty.
6.4.3 Idaho Power shal have the right to review and audit the documentation support the
calculation of the Facilty's Mechacal Availabilty at reasonable times at the Seller's offces.
6.4.4 If the curent month's Mechancal Availabilty is less than the Mechancal Availabilty
Guaantee, daages shall be equal to:
((85 percent of the month's Calculated Net Energy Amount) mius the month's
actu net energy deliveries) multiplied by the Availabilty shortall Price.
6.4.5 Any damages calculated in pargraph 6.4.4 will be offset agaist the curent month's
energy payment. If an unpaid balance remains afer the daages are offset against the energy payment,
the Seller shal pay in ful the remaing balance withn 30 days of the date of the invoice.
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ARTICLE VIl:PURCHASE PRICE AN METHOD OF PAYMNT
7.1 Heavy Load Purchae Price - For all Net energy received durg Heavy Load Hours, Idaho
Power will pay the non-levelized energy price in accordance with Commssion Order 31025, 30738 and
adjusted in accordance with Commission Order 30415 for Heavy Load Hour energy deliveries, and
adjusted in accordance with Commission Order 30488 for the wind integration charge and with
seasonaization factors applied:
Heayy Load Purchase Price
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Season 1 -
(73.50%)
Mills/kWh
40.02
42.76
45.36
48.16
51.16
52.89
54.59
56.43
58.25
60.12
62.34
64.65
67.05
69.55
72.14
74.35
76.62
78.96
81.38
83.87
87.22
90.15
93.19
96.34
Season 2-
(120.00%)
Season 3-
(100.00%)
Mils/kWh
69.45
73,93
78.18
82.74
87.64
90.46
93.23
96.25
99.21
102.27
105.90
109.67
113.59
117.66
121.90
125.49
129.20
133.03
136.97
141.04
146.51
151.30
156.26
161.39
MilS/kWh
56.80
60.52
64.06
67.87
71.95
74.30
76.61
79.12
81.59
84.14
87.16
90.31
93.57
96.97
100.50
103.49
106.58
109.77
113.06
116.45
121.01
125.00
129.13
133.41
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10/23/10
7.2 Light Load. Purchase Prce - For all Net Energy received durng Light Load Hours, Idaho Power
will pay the non-Ievelized energy price in accordance with Commssion Order 31025, 30738 and
adjused in accordance with Commission Order 30415 for Light Load Hour Energy deliveries, and
adjused in accordace with Commssion Order 30488 for the wid integration chage and with
seasonalization factors applied:
Light Load Purchase Price
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Season 1 -
(73.50%)
Mils/kWh
34.67
37.41
40.01
42.81
45.81
47.54
49.24
51.08
52.90
54.77
56.99
59.30
61.70
64.20
66.79
68.99
71.27
73.61
76.03
78.52
81.87
84.80
87.84
90.98
Season 2-
(120.00%)
Mills/kWh
60.72
65.19
69.44
74.00
78.91
81.73
84.50
87.51
90.47
93.53
97.16
100.93
104.85
108.92
113.16
116.76
120.47
124.29
128.24
132.31
137.77
142.56
147.52
152.66
Season 3-
(100.00%)
Mills/kWh
49.52
53.24
56.78
60.59
64.67
67.02
69.33
71.84
74.31
76.86
79.88
83.03
86.29
89.69
93.22
96.21
99.30
102.49
105.78
109.17
113.73
117.72
121.85
126.13
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10/23/10
7.3 AlI Hours Energy Price - The price to be used in the calculation of the Surlus Energy Price and
Delay Prce shall be the non-levelized energy price in accordace with commission Order 31025, 30738
and adjused in accordance with commssion Order 30488 for the wid integration chage and with
seasonalization factors applied:
AU Hours Purchase Price
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Season 1 -
(73.50%)
Mills/kWh
37.64
40.38
42.98
45.78
48.78
50.51
52.21
54.05
55.86
57.74
59.96
62.27
64.67
67.17
69.76
71.96
74.24
76.58
79.00
81.49
84.84
87.77
90.81
93.95
Season 2-
(120.00%)
Mills/kWh
65.57
70.04
74.29
78.85
83.75
86.58
89.35
92.36
95.32
98.38
102.01
105.78
109.70
113.77
118.01
121.60
125.31
129.14
133.09
137.16
142.62
147.41
152.37
157.51
Season 3-
(100.00%)
Mils/kWh
53.56
57.28
60.82
64.63
68.71
71.06
73.37
75.88
78.35
80.90
83.92
87.07
90.33
93073
97.26
100.25
103.35
106.53
109.82
113.21
117.77
121.76
125.89
130.17
-18 -
10/23/10
7.4 Surlus Energy Price"" For all Surlus Energy, Idao Power shall pay to the Seller the curent
month's Market Energy Reference Price or the All hours Energy Price specifed in paragraph 7.3,
whichever is lower.
7.5 Inadvertent Energy ~
7.5.1 Inadvertent Energy is electrc energy produced by the Facilty, expressed in kWh, which
the Seller delivers to Idao 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 Janua contans 744
hour. 744 hours times 10,000 kW = 7,440,000 kWh. Energy delivered in Janua in excess of
7,440,000 kWh in ths example would be Inadvertent Energy.)
7.5.2 Although Seller intends to design and operate the Facilty 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.
7.6 Payment Due Date - Energy payments, less the Wind Energy Production Forecasting Monthy
Cost Allocation (MCA) descrbed in Appendix E and any other payments due Idaho Power, will be
disbured to the Seller withn 30 days of the date which Idaho Power receives and accepts the
documentation of the monthy Mechancal Available Guantee and the Net Energy actually delivered to
Idaho Power as specified in Appendix A.
7.7 Contiuig Jursdiction of the Commission - Ths Agreement is a special contract and, as such,
the rates, terms and conditions contaed in ths Agreement will be constred in accordace with Idao
Power Company v. Idao Public Utilities Commission and Afer Energy, Inc., 107 Idao 781, 693 P.2d
427 (1984), Idao Power Company v. Idao Public Utilties Commssion, 107 Idao 1122,695 P.2d 1
261 (1985), Afon Energy, Inc. v. Idao Power Company, 111 Idao 925, 729 P2d 400 (1986), Section
210 of the Public Utilities Reguatory Policies Act of 1978 and 18 CFR §292.303-308.
ARTICLE VIII: ENVIRONMENTAL ATTBUTES
8.1 Idao Power waives any clai to ownership of Environmenta Attbutes. Environmenta
Attbutes include, but are not limited to, Green Tags, Green Certificates, Renewable Energy Credits
- 19-
10/23/10
(RECs) and Tradable Renewable Certifcates (TRCs) directly associated with the production of energy
from the Seller's Facility.
ARTICLEIX: FACILITY AND INTERCONNECTION
9.1 Design of Facilty -- Seller will design, constrct, install, own, operate and maitan the Facility
and any Seller-owned Interconnecton Facilties so as to allow safe and reliable generation and delivery
of Net Energy and Inadvertent Energy to the Idao Power Point of Deliver for the ful term of the
Agrement.
9.2 Interconnection Facilties - Except as specifically provided for in ths Agreement, the requied
Interconnection Facilties will be in accordance with Schedule 72, the Generation Interconnection
Process and Appendix B. The Seller is responsible for all costs associated with ths equipment as
specified in Schedule 72 and the Generation Interconnection Process, includig but not limited to initial
costs incured by Idaho Power for equipment costs, intalation costs and ongoing monthy Idaho Power
opeations and maitetiance expenses.
ARTICLE X: METERIG AND TELEMETRY
10.1 Meterig - Idaho Power shall, for the account of Seller, provide, instal, and mainta Metering
and Telemetr Equipment to be located at a mutully agreed upon location to record and measure power
flows to Idao Power in accordance with ths Agreement and Schedule 72. The Metering Equipment
will be at the location and the tye required to measure, record and report the Facility's net Energy,
Station use, Indvertent energy and maxmum energy deliveries (kW) at the Point of Delivery in a
maner to provide Idaho Power adequate energy measurement data to adminster ths Agreement and to
integrate ths Facilty's energy production into the Idaho Power electrcal system.
10.2 Teleietr - Idao Power will instal, operate and mainta at Seller's expense meteritig,
communcations and telemetr equipment which will be capable of providing Idao Power with
contiuous instataeous telemet of Seller's Net Energy and Inadvertnt Energy produced and
delivered to the Idaho Power Point of Deliver to Idaho Power's Designated Dispatch Facilty.
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10/23/10
ARTICLE XI - RECORDS
11.1 Matenance of Records - Seller shall maita at the Facility or such other location mutuly
acceptable to the Pares adequate tota generation, Net Energy, Station Use, Inadvertent Energy and
maximum genertion (kW) records in a form and content recommended by Idaho Power.
11.2 Inpection - Either Par, afr reasonable notice to the other par, shal have the right, durng
normal business hours, to inspect and audit any or all generation, Net Energy, Station Use, Inadvertent
energy and maximum generation (kW) records pertng to the Seller's Facility.
ARTICLE XII: OPERATIONS
12.1 Communcations - Idao Power and the Seller shall maita appropriate operating
communcations though Idaho Power's Designated Dispatch Facilty in accordance with Appendix A of
this Agreement.
12.2 Energy Acceptace -
12.2.1 Idaho Power shall be excused frm accepting and paying for Net Energy Or acceptig
Inadverent Energy which would have otherwse be produced by the Facility and delivered by the
Seller to the Point of Deliver, if it is prevented from doing so by an event of Force majeure, Forced
OUtage Or temporar disconnection of the Facilty in accordance with Schedule 72. If, for reasons other
than an event of Force majeure or a Forced Outage, a temporar disconnection under Schedule 72
exceeds Twenty (20) days, beging with the twenty-first day of such interrption, curlment or
reducton, 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 pargraph 6.2. Idao Power will notify
Seller when the interrption, curent or reduction is termated.
12.2.2 If, in the reasonable opinon of Idaho Power, Seller's operation of the Facilty or
Interconnection Facilities is unafe or may otherwse adversely afect Idaho Power's equipment,
peonnel or servce to its customers, Idao Power may temporarly disconnect the Facility from Idao
Power's transmission/distrbution system as specified withn Schedule 72 or tae such other reasonable
steps as Idao power deems appropriate.
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10/23/10
12.2.3 Under no circumstaces will the Seller deliver Net Energy and/or Inadverent Energy
from the Facilty to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount at
any moment in time. Seller's failure to limt deliveries to the maximum Capacity Amount will be a
Materal Breach of ths Agreement.
12.3 Scheduled Maitenance - On or before Janua 31 of each calendar year, Seller shall submit a
wrtten proposed maitenance schedule of signficant Facilty maitenance for tht calendar year and
Idaho Power and Seller shall mutuly agree as to the acceptabilty of the proposed schedule. The
Pares determation as to the acceptabilty of the Seller's timetable for scheduled maitenace will tae
into consideration Prudent Electrcal Practices, Idaho Power system requirements and the Seller's
preferred schedule. Neither Par shal uneasonably withold acceptace of the proposed maintenance
schedule.
12.4 Maitenace Coordiation - The Seller and Idaho Power shall, to the extent practical, coordinate
their respective line and Facilty maintenace schedule such that they occur simultaeously.
12.5 Contact Pnor to Curlment - Idaho Power will mae a reasonable attempt to contact the Seller
pnor to exercising its rights to interrpt the interconnecon or curl deliveries frm the Seller's
Facilty. Seller understads that in the case of emergency circumstaces, real tie operations of the
electrcal system, and/or unplaned events Idaho Power may not be able to provide notice to the Seller
prior to interrption, curailient, or reduction of electrcal energy deliveries to Idao Power.
ARTICLE XIII: INEMINIFACTION AND INSURCE
13.1 Indemnfication - Each Par shall agre to hold haress and to indemn the other Pary, its
offcers, agents, affiliates, subsidiares, parent company and employees agaist all loss, damage, expense
and liabilty to thd persons for injur to or death of person or injur to propert, proximately caused by
the indemnfyng par's constrction, ownership, operation or maintenance of, or by failure of, any
such pary's works or facilties used in connection with ths Agreement. The indemnfyg Par shall,
on the other Par's request, defend any suit asserting a clai covered by ths indemnity.
The indemnfyg Par shall pay all documented costs, including reasonable attorney fees that
may be incurd by the other Par in enforcing ths indemity.
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10/23/10
13.2 Insurce - durg the term of ths Agreement, Seller shall secure and continuously car the
followig insurance coverage:
13.2.1 Comprehensive General Liability Insurance for both bodily injur and propert damage
with limts equa to $1,000,000, each occurence, combined single limit.
13.2.2 The above inurance coverage shall be placed with an insurce company with an A. M.
Best Company ratig of A- or better and shall include:
(a) An endorsement namg Idao Power as an additional inured and loss payee as
applicable, and
(b) A provision statig that such policy shall not be canceled or the limits of liabilty
reduced without sixty (60) days' prior wrtten notice to Idaho Power.
13.3 Seller to. Provide Cerficate of Inurance ~ As required in pargraph 4.1.6 herein and anualy
therer, Seller shall fush Idao Power a certificate of insurance, together with the endorsements
requid therein, evidencing the coverage as set fort above.
13.4 Seller to Notify Idao Power of Loss of Coverage - If the insurance coverage requied by
paragaph 13.2 shall lapse for any reason, Seller will imediately notify Idaho Power in wrting. The
notice will advise Idao Power of the spcific reason for the lapse and the steps Seller is tang to
reinstate the coverage. Failure to provide ths notice and to expeditiously reinstte or replace the
coverage wil constitute a Material Breach of ths Agreement.
ARTICLE XIV: FORCE MAUR
14.1 As used in ths Agreement, "Force Majeure" or "an event of Force Majeure" mean any cause
beyond the control of the Seller or of Idaho Power which, despite the exercise of due dilgence, such
par is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire,
flood, storms, war, hostilties, civil stfe, stres and other labor distubances, earquakes, fires,
lightng, epidemics, sabotage, or changes in law or reguation occurg afer the Effective Date, which,
by the exercise of due diigence, it shall be unable to overcome. If either par is rendered wholly or in
- 23-
10/23/10
par unable to perform its obligations under ths Agreement because of an event of Force Majeure, both
Pares shall be excused from whatever performance is afected by the event of Force Majeure, provided
that:
(1) The non-perormg Par shall, as soon as is reasonably possible after the
occurence of the Force majeure, give the other Par wrttn notice describing the
parculars of the occurence.
(2) The suspension of performance shall be of no greater scope and of no longer
durtion th is requied by the event of Force Majeure.
(3) No obligations of either Par which arose before the occurence causing the
suspension of performance and which could and should have been fuly performed before
such occurence shall be excused as a result of such occurence.
ARTICLE XV: LIAILITY; DEDICATION
15.1 Nothg in ths Agreement sha be constred to create any duty to, any standard of care with
reference to, or any liability to any person not a Par to ths Agreement. No undertng by one par
to the other under any provision of ths Agreement shall constitute the dedication of that Par's system
or any portion thereof to the other Par Or to the public or affect the statu of Idao Power as an
independent public utility corpration or Seller as an independent individual or entity.
ARTICLE XVI: SEVERAL OBLIGAITIONS
16.1 Except where specifically stated in ths Agreement to be otherwse, the duties, obligations and
liabilties of the Pares are intended to be severa and not joint or collective. Nothg contaned in ths
Agrent shall ever be constred to create an association, trst, parership or joint ventue or impose
a trst or paership duty, obligation or liabilty on or with regard to either Par. Each pary shal be
individualy and severally liable for its own obligations under ths Agreement.
- 24-
10/23/10
ARTICLE XVII: WAIVER
17.1 Any waiver at any tie by either par of its rights with respect to a default under this
Agreement or with respect to any other mattrs arising in connection with this Agreement shall not be
deemed a waiver with respect to any subsequent default or other matter.
ARTICLE XVIII: CHOICE OF LAWS AND VENU
18.1 Ths Agreement shall be constred and interpreted in accordance with the laws of the State of
Idaho without reference to its choice of law provisions.
18.2 Venue for any litigation arsing out of or related to ths Agreement will lie in the Distrct cour of
the Four Judicial Distrct ofIdao in and for the County of Ada
ARTICLE XIX: DISPUTES AND DEFAULT
19.1 Disputes - All disputes related to or arsing under ths Agreement, including, but not limited to,
the interretation of the terms and conditions of ths Agreement, wil be submitted to the Commission
for resolution.
19.2 Notice of Default -
19.2.1 Defaults If either Par fails to perform any of the terms or conditions of ths Agreement
(an "event of default"), the non-defaulting Par shall cause notice in wrting to be given to the
defaulting Par, specifng the maer in whch such default occured. If the defaulting Par shall fail
to cur such default with the sixty (60) days afer servce of such notice, or if the defaulting Par
reaonably demonstrates to the other Par that the default can be cured withn a commercially
reasonable time but not with such sixty (60) day period and then fails to diligently pursue such cure,
then, the non-defaulti par may, at its option, termate ths Agreement and/or pursue its legal or
equitable remedes.
19.2.2 Material Breaches - The notice and cure provisions in paragraph 19.2.1 do not apply to
defaults indentified in ths Agreement as Material Breaches. Materal Breaches must be cured as
expeditiously as possible followig occurence of the breach.
- 25-
10/23/10
19.3 Securty for Performance - Prior to the Operation Date and thereafer for the full term of ths
Agreement, Seller will provide Idaho Power with the followi:
19.3.1 Insurce - Evidence of compliance with the provisions of paragraph 13.2. If Seller fails
to comply, such failure will be a materal Breach and may only be cured by Seller supplying evidence
that the requied ìnsurance coverage has been replaced or reintated;
19.3.2 Engineer's Certfications - Every thee (3) years afer the Operation Date, Seller will
supply Idao Power with a Certifcation of Ongoing Operations and Maitenance (O&M) from a
Registerd Professional Engineer lìcensed in the State of Idao, which Certfication of Ongoing O&M
shall be in th 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 requied certficate; and
19.3.3 Lìcenses and Permts - Dug the ful term of ths Agreement, Seller shall maita
complìance with all permits and licenses described in paragraph 4.1.1 of ths Agreement. In addition,
Seller will supply Idao Power with copies of any new or additional permts or licenses. At least every
fift Contrt Year, Seller will update the documentation described in paragraph 4.1.1. If at any time
Seller fails to mata compliance with the permits and licenses described in paragraph 4.1.1 or to
provide the documentation requied by ths paragraph, such failure will be an event of default and may
only be cured by Seller submittng to Idaho Power evidence of compliance from the permittg agency.
ARTICLE XX: GOVERNNTAL AUTHORIZATION
20.1 Ths Agreement is subject to the jursdiction of those goverental agencìes having control over
eìther Par of ths Agreement.
ARTICLE XXI: COMMISSION ORDER
21.1 Ths Agreement shall become finally effective upon the Commission's approval of all terms and
provisions herf without change or condition and declaration that all payments to be made to Seller
hereunder shal be allowed as prudently incurd expenses for ratemakg puroses.
ARTICLE XXII: . SUCCESSORS AND ASSIGNS
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10/23/10
22.1 Ths Agreement and al of the terms and provisions hereof shall be binding upon and inure to the
benefit of the respective successors and assigns of the Paries hereto, except that no assignent hereof
by either Par shall become effective without the wrtten consent of both Pares being first obtaned.
Such consent shall not be uneasonably witheld. Notwthstading the foregoing, any pary which Idao
Power may consolidate, or into which it may merge, or to which it may conveyor transfer substatially
all of its electc utilty assets, shal automatically, without fuer act, and without need of consent or
approval by the Seller, succeed to all ofIdao Power's rights, obligations and interests under ths
Agreement. Ths arcle shall not prevent a fiancing entity with recorded or secured rights from
exercising all rights and remedies available to it under law Or contract. Idaho Power shal have the right
to be notified by the fiancing entity tht is exercisin such rights or remedies.
ARTICLE XXII: MODIFICATION
23.1 No modifications to ths Agreement shall be valid uness it is wrting and signed by both Pares
and subseuently approved by the Commssion.
ARTICLEXX: TAXES
24.1 Each par shall pay before delinquency al taxes and other governenta charges which, if
failed to be pad when due, could result in a lien upon the Facilty or the Interconnection Facilties.
ARTICLE XX: NOTICES
25.1 All wrttn notices under ths Agreement shall be directed as follows and shall be considered
delivered when faxed, e-mailed and confed with deposit in the U.S. Mail, first-class, postage prepaid,
as follows:
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10/23/10
To Seller:Alpha Wind LLC
Attention: Operations Manager
C/O Cotterel WindEenergy Center LLC
150 N. Dai Ashord,
Buildig C, Suite 356D
Houston, TX 77079
Phone: [phone]
Email: dick.wil1ams(gshelL.com
To Idaho Power:Original document to:
Vice President, Power Supply
Idaho Power Company
POBox70
Boise, Idaho 83707
Email: jimmller(iiadhopower.com
Copy of document to:
Cogeneration and Small Power Production
Idaho Power Company
POBox70
Boise, Idaho 83707
Email: rallphin(gidahopower.com
Either Par may chage the contact person and! or addrss information listed above, by providing
wrtten notice from an authorized person representing the Par.
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10/23/10
ARTICLE XXI: ADDITIONAL TERMS AND CONDITIONS
26.1 This Agreement includes the following appendices, which are attched hereto
by reference:
and included
Appendix A -
AppendiB
Appendix C -
AppendixD -
AppendixE
Monthy Power Production and Availabilty Report
Facilty and Point of Delivery
Engieer's Certfications
Forms of Liquid Securty
Wind Energy Production Forecasting
ARTICLE XXII: SEVERAILITY
27.1 The invalidity or unenforceability of any term or provision of ths Agreement shall not affect the
validity or enforceability of any terms or provisions and ths Agreement shall be constred in all other
respects as if the invalid or unenforceable term or provision were omitted.
ARTICLE XXIII: COUNTERPARTS
28.1 Ths Agreement may be executed in two or m.ore counterpars, each of which shall be deemed an
origi but all of which together shal constitute one and the same instrent.
ARTICLE XX: ENTIR AGREEMENT
29.1 Ths Ageem.ent constitutes the entire Agreement of the Pares concerng the subject m.atter
hereof and supersedes all prior or contemporaneous oral or wrtten agreements between the Pares
cöncening the subject matter hereof.
- 29-
10/23/10
IN WIESS WHREOF, The Partes hereto have caused this Agreement to be execued in
their repective naes on the dates set fort below:
ldåo Power Compay Alpha Wind LLC
DanB. Minor
St. Vice President, Delivery
z!l '
Dick Wiliás
. President
L,()~ '10/ ta
, eler"
By By
Dated Dated
"Idaho Power"
- 30-
10/23/10
APPENDIX A
A-I MONTHLY POWER PRODUCTION AN AVAILABILITY REPORT
At the end of each month the followi requird documentation will be submitted
to:
Idao Power Company
Att: Cogeneration and Small Power Production
POBox 70
Boise, Idao 83707
The meter readings requied on ths report will be the readigs on the Idaho Power Meter Equipment
measurg the Facilty's tota energy production delivered to Idaho Power and Station Usage and the
maxmum generated energy (kW) as recorded on the'Meeting Equipment and/or any other requird
energy measurements to adequately admster ths Agreement. This document shall be the document to
enable Idaho Power to begi the energy payment calculation and payment process. The meter readings
On ths reprt shall not be used to calculate the actu payment, but instead will be a check of the
automated meter reading inormation tht will be gathered as described in item A..2 below:
Ths report shal also include the Seller's calculation of the Mechancal Availabilty.
- 31 -
10/23/10
Idaho Power Company
Cogeneration and Small Power Producton
MONTHLY POWER PRODUCTION AN AVAILABILITY REPORT
Project Name:
Month
Project Number:
Year
Addrss
City
Phone Number
State~ Zip
Metered
Maxmum GenerationNet F áCilty
Output
Station
Usage
Station
Usage
Meter Number:
End of Month kWh Meter Reading:
Begiing of Month kWh Meter:
Difference:
Times Meter Constat:
kW
Net Generation
kWh for the Month:
Metered Demand:
Mechacal Availabilty Gutee
Seller Calculated Mechacal Availability
As specified in ths Agreement, the Seller shall include with ths monthy report a sumar
statement of the Mechancal Availabilty of ths Facilty for the calendar month. Ths sumar shall
include detals as to how the Seller calculated ths value and sumar of the Facilty data used in the
calcuation. Idao Power and the Seller shall work together to mutuly develop a sumar report that
provides the required data. Idao Power reseres the right to review the detaled data used in ths
caculation as alowed withn the Agreement.
Signatue Date
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10/23/10
A-2 AUTOMATED METER READING COLLECTION PROCESS
Monthy, Idao Power will use the provided Metering and Telemetr equipment and processes to collect
the meter reading information from the Idaho Power provided Meterig Equipment that measures the
Net Energy and energy delivered to supply Station Use for the Facility recorded at 12:00 AM (Midnight)
of the last day of the month.
The meter inormtion collected will include but not be limited to energy production, Station Use, the
maximum generated power (kW) and any other requied energy measurements to adequately admnister
ths Agreement.
A-3 ROUTE REPORTING
Idaho Power Contact Inormation
Daiy Energy Production Reportg
Call day by 10 a.m., 1-800-356-4328 or 1-800-635-1093 and leave the
followig inormation:
· Project Identification - Project Name and Project Number
. Curent Meter Reading
· Estiated Generation for the curent day
. Estimated Generation for the next day
Planed and Unplaned Project outaes
Call 1..800-345-1319 and leave the following inormation:
· Project Identification - Project Name and Project Number
· Approxiate tie outae occured
Estated day and time of project comig back onlie
Seller's Contat Informtion
24-Hour Project Opertiona Contact
Name:
Telephone Number:
Cell Phone:
Projec On-site Contact Information
Telephone Number:
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10/23/10
APPENDIXB
FACILITY AND POINT OF DELIVERY
PROJECT NO.
Alpha Wind LLC
B-1 DESCRITION OF FACILITY
(Must include the nameplate 'rating et J7AR capabilty (both leading et lagging) of all generation units
to be included in the Facilty.)
The Facility will consist of 13 Siemens wid tubines with individua generator nameplate
rates of 2.3 MW for each unt, for a total Facilty generator nameplate rating of 29.9MW, with a
maxiium Facilty output of29.9 MW. Each generating unt has a reactive power capabilty (V AR
capabilty) of 1,114 kVAr delivered (laggig) to 1,114 kV At consumed (leading). Seller and Idaho
Power may mutuly agr to substitution, any time prior to the Operation Date, a different manufactuer
and/or model wid tubine provided that the aggregate nameplate rating of the Facility does not exceed
30MW.
If the Seller wishes to substitute different wid tubines, the Seller shal provide detailed
specifications of the proposed substitute wid tubines to Idaho Power. Idaho Power will then review
ths detaledinörmation and either accept or reject the Seller's proposed substitute wind tubines. Idaho
Power acceptace of the substitute wind tubines will be required by both confirations that the
interconnecton is able to accommodate the substitute wind tubines and that the substitute wind tubines
ar acceptable under ths Agreement. Ony afer Idaho Power's acceptance of the substitute wid
tubines shal the Seller be allowed to instal the substitute wind tubines, which acceptace shall not be
uneasonably witheld.
- 34-
10/23/10
B-2 LOCATION OF FACILITY
Near: Burley, ID
Section: 36 Townhip: T10S Range: R25E County: Cassia. ID
Section: 31 Townhip: T10S Rane: R26E County: Cassia,ID
Section: l Townhip: TIIS Rage: R25E County: Cassi~ il
Secton: 2 Township: T1IS Rage: R26E County: Cassia,ID
Descnption of Interconnection Location: On-site in Section 25, TIIS, R25E, Elmore County,
Idaho. Interconnect with an existig Idaho Power 138 kV distrbution line. Exact point of
interconnection to be determed as par of the Idaho Power delivery business unt's
interconnection study process. Nearest Idaho Power Substation: Minidoka substation.
B-3 SCHEDULED FIRST ENERGY AND OPERATION DATE
Seller has selected October 31, 2014 as the Scheduled First Energy Date.
Seller has selected December 31, 2014as the Scheduled Operation Date.
In makg these selections, Seller recognzes that adequate testig of the Facilty and
completion of all requirments in paragaph 5.2 of ths Agreement must be completed prior to
the project being granted an Operation Date.
B-4 MAM CAPACITY AMOUNT: ths value will be 29.9 MW which is consistent with the
value provided by the Seller to Idao Power in accordace with Schedule 72. Ths value is the
mamum energy (MW) tht potentially could be delivered by the Seller's Facilty to the Idao
Power electrcal system at any moment in time.
B-5 POINT OF DELIVERY
"Point of Delivery" means, uness otherwse agreed by both Pares, the point of where the
Seller's Facility's energy is delivered to the Idaho Power electrcal system. Schedule 72 will
determe the specific Point of Delivery for ths Facility. The Point of Delivery identified by
Schedule 72 will become an integral par of ths Agreement.
~ 35-
10/23/10
B-6 LOSSES
If the Idao Power Metering equipment is capable of measurng the exact energy deliveries by
the Seller to the Idaho Power electrcal system at the Point of Delivery, no Losses will be calculated for
ths Facilty. If the Idaho Power Meterig is unble to measure the exact energy deliveries by the Seller
to the Idao Power electrcal 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.
Ths loss caculation will be intially set at 2% of the kWh energy production recorded on the Facilty
generation metering equipment. At such time as Seller provides Idaho Power with the electrcal
equipment specifications (transformer loss specifcations, conductor sizes, etc) of all of the electrcal
equipment beteen the Facility and the Idao Power electrcal system, Idaho Power will confgue a
revised loss calculation formula to be agreed to by both Paries and used to calculate the kWh Losses for
the remaing term of the Agreement. If at any time durg the term of ths Agreement, Idaho Power
determnes tht the loss calculation does not correctly reflect the act kWh losses attbuted to the
eleccal equipment between the Facilty and the Idaho Power electrcal system, Idaho Power may
adjust the cacultion and retroactively adjust the previous month's kWh loss calculations.
B-7 METERIG AN TELEMETRY
Schedule 72 will detertine the specific metering and telemetr requiements for ths Facilty.
At the minium the Meteri Equipment and Telemetr equipment must be able to provide and record
hourly energy deliveries to the Point of Delivery and any other energy measurements requied to
admnister ths Agreement. These specifications will include but not be limited to equipment
specifications, equipment location, ldaho Power provided equipment, Seller provided equipment and all
costs associated with the equipment, design and instalation of the Idaho Power provided equipment.
Seller will arange for and make available at Seller's cost communcation circuit(s) compatible to Idaho
Power's communcations equipment and dedicated to Idaho Powers use termating at the Idaho Power
Facilties capable of providig Idao Power with contiuous instataeous information on the Facilties
energy production. Idao Power provided equipment will be owned and maitaned by Idaho Power,
with tota cost of purhae, installation, operation, and maintenance, including admnistrative cost to be
reimbured to Idao Power by the Seller. Payment of these costs will be in accordace with Schedule 72
- 36-
10/23/10
and the tota meteng cost will be included in the calculation of the Monthy Operation and
Maitenance Charges specified in Schedule 72.
- 37-
10/23/10
APPENDrxC
ENGINEER'S CERTIFICATION
OF
OPERATIONS & MAINTENANCE POLICY
The undersigned , on behalf of himself and
, hereinafr collectively referred to as "Engineer," hereby sttes and
cerfies to the Seller as follows:
1. That Engieer is a Licensed Professional Engineer in good stadig in the State of Idao.
2. That Engieer has reviewed the Energy Sales Agreement, hereinafer "Agreement", between
Idao Power as Buyer, and as Seller, dated
3. Tht the cogeneration or small power production project which is the subject of the Agreement
and ths Statement is identified as IPCo Facilty No. and is hereinafr referred to as the
"Project".
4. That the Project, which is comnonly known as the Project, is located in Section
_Townhip_Rage-, Boise Meridian, County, Idao.
5. Tht Engieer recognzes that the Agreement provides for the Project to fush electrcal energy
to Idao Power for a twenty (20) year period.
6. That Engieer has substatial experience in the design, constrction and operation of electrc
power plants of the same tye as ths Project.
7. Tht Engineer has no economic relationship to the Design Engineer of ths Project.
8. That Engineer has reviewed and/or supervised the review of the Policy for Operation and
Maintenace ("O&M") for ths Project and it is his professional opinion that, provided said Project has
been designed and built to appropriate stdards, adherence to said O&M Policy will result in the
Project's producing at or near the design electrcal output, effciency and plant factor for a twenty (20)
year period.
9. Tha.t engieer recognes tht Idaho Power, in accordance with paragrph 5.2 of the Agreement,
is relyig on Engineer's representations and opinions contaied in ths Statement.
- 38-
10/23/10
10. Thàt engineer certfies that the above statements are complete, tre and accurate to the best of his
knowledge and therefore sets his hand and seal below.
By
(p.E. Stap)
Date
- 39-
10/23/10
APPENDIXC
ENGINEER'S CERTIFICATION
OF
ONGOING OPERATIONS AN MATENANCE
The underigned , on behalf of hiself and
hereinafer collectively referred to as "Engieer," hereby states and
certfies to the Seller as follows:
1. That Engeer is a Licensed Professional Engieer in good stading in the State of Idao.
2. That Engineer has reviewed the Energy Sales Agreement, hereinafer "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 ths Statenent is identified as IPCo Facilty No. and hereinafer referred to as the
"Project".
4. That the Project, which is comionly known as the Project, is located in
Section _Township__Rage_, Boise Meridian, County, Idao.
5. Tht Engieer recognes tht the Agreement provides for the Project to fush electrcal energy
to Idao Power for a twenty (20) year period.
6. Tht Engineer has substatial experience in the design constrction and operation of electrc
power plants of the same tye as ths Project.
7. That Engieer has no economic relationship to the Design Engieer of ths Project.
8. That Engineer has made a physical inspection of said Project, its operation and maintenance
records since the last previous cered inpection. It is Engineer's professional opinon, based on the
Project's appearance, that its ongoing O&M has been substatially in accordace with said O&M
Policy; tht it is in reasonably good operating condition; and that if adherence to said O&M Policy
contiues, the Project will continue producing at or near its design electrcal output, effciency and
plant factor for the remainig year of the Agreement.
9. That Engieer recognes tht Idao Power, in accordace with paragaph 5.2 of the Agreement,
is relying on Engineer's representations and opinions contaned in ths Statement.
- 40-
10/23/10
113"28'W 113"27'W 113"26'W
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113"2'W1~~640.00113.29W 64,00113"28'W 113"27'W
FEDERAL ENERGY REGULATORY COMMISSION QMCoo 1902-005
WASHINGTON, DC Exati pts;
F 0 r. m. 5. 5.. ., '6.. Certification of Qualifyng Facility (OF) Status for a smafe;6~,~ I..ProductIon or Cogeneration Facilty '. 'i Plf li: 34
u'
1a Full name of applicant (legal enti on whos behalf qualifyng facilit status is sought fo thl~t.~#r' (
Aipha Wind LLC i.,'
1b Applicant street address
c/o Cotterel WindEnergy Center LLC
150 N.Dairy Ashford Rd.
euUding Cf Suite 356 D
lc City ld State/province
Houston TX
le Postal code 1f Country (if not United States)19 Telephone number
77079 832-337-2537
1h Has the Instant facility ever previously ben certified as a QF?Yes 0 No ~
11 If yes, provide the docket number of the last know QF filing pemining to this fadlit QF ------
1J Underwnkh certlfkatlon process is the applicant making this filing?
~ Notice of self--erlflcatlon 0 Applicëltlon for Commission ceification ('ecuis flUng
c:(see note below)fee; see "Filing Fee" secton on pagé 3)
0 Note:a notie of self-certifICtion is a notice by th applicnt itselthat it facility oompfeswi'h th l'ilts for+:
QF status. A notice of self--ertification does not establish a proceeding, and the Commission does not reiew a to
E notice of selkertification to verify compliance. See the 'What to Expect From the Commission After You Rle""-section on page 3 for more Informaton.
Ja.1k What types) of QF status is the appßcant seeking for its facilitY? (chec all that app)c:-c ~ Qualifng small power production facility staws 0 Qualifyîn.çogeneratio.facUlty status0:i 1.What is the purose an expected effecive date(s) of this filing?to.~~Original certification; facilty expected to be instlled by 10/31/14 and to begin operation on 12/31/14a.0 Change(s) to a preiously certified facilty to be effective on0.c((identify type(s) of change(s) below,and describe change(s) in the 'Miscellaneous section staring on pa 19)
0 Name change and/or other administrative change(s)
0 Change in ownership
0 Change(s) affecting plant equipment, fuel use, power production capacity and/or cogenerati theral output
0 Suppement or correction to a previous filing submited on
(describe the supplement or corrction in the Miscellaneous secon starting on page 19)
1m If any of the following three statements is true, check the box(es) that describe your situation and comple the fon
to the extent possible, explaining any special circumstances in th Miscellaneous secton startng On ,pa 19.
0 The instant facility complies with the Commission's QF requirements by virtue of a waivr of cemin regulations
previously granted by the Commission in an order dated (specify any other relevant waiverorders in the Miscllaneous section starting on page 19)
o The instant facilty would comply
with the Commission's QF requirements If a peition for waiver submittedconcurrently with this application is granted
The instant facilty complies with the Commission's regulations, but has $ptKial drctistnces, such as the
o employment of unique or innovative technologies not contempla.ted by the struti of this form, that make
the demonstration of compliance via this form dificult Qr impossibfe (describe in Mise. section startin on p. 19)
o
o
o
o
o
o
co.~
CO
E'-2c..u
fJcou
FERC Form 556
2a Name of contat person
Kevin Simons
Page 6 - All Facilities
2b Telephone number
832-337-2537
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CO
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COu.
2( Which of the following describes th contact pern's reatiship to the applicant? (check one)
o Àpplicnt (self) ~ Emplo, owner or partr of applicnt authorized to repreent the applicant
o Employee of a company affliated with th applicant authorized to represent the applicant on this matter
o Lawyr, consultant, or other representative authorized to represent the applicant on this matter
2d Company or organization name (if applicant Is an individual, chec here and skip to line 2e) 0
Cotterel Windgnergy Center LLC
2e Street address (if same as ApplifZnt,dle(K here and skip to line 3a)0
150 N. Dairy Ashford Rd.
Building C, Suite 356D
2f City
Houston
29 State/province
TX
2i Country (if not United States)
o
o
~
:1:~-,+:::
0'c
't
COV\C
~
2h Postal code
77079
3a Facility name
Alpha Wind LLC
3b Street address (if a street addresscls not exist for the facilty, check here and skip to line 3c)~
3( Geographic coordinates: If you inicted that no street addres ex for your faCitity by checking the. bo inIine 3b,then you must specif the latitude and longitude coordinate of the facilty in degrees (to three deçånal places). Use
the folloing formulåto cÔnvèrttc declmàl degrees from degrees, mihutes and seconds: dedrhal degrees =
degrees + (mihutes/6O + (seconds/360()). se the "(ieogaphic Coordin~tes" secion on page Mor help. I(you
provided a street address for yor facUity in line 3b, then specifyng the geographic coordinates below is optionaL.
do East(+) 113 472 d de ~ North(+) 42.503 d. .eg.reesLongitu e I~ West H .. egrees Latitu . 0 Souh (-)
3d Citytlfunincorporated, check here and enter nearest city) D 3e State/provinceBurley tdaho
3f County (or check here for independent city) 0
Cassia
39 Country (if not United States)
o
#)
(I
Identi the electric utilties that are contemplated to transa with the faCiity.
~ Identify utility interconnecng wih the facility
idaho Power Contany
4bldéritify otilitie proViding wheeling service or check here if none IZ
4c Identif utilties pur(hasin9 the useful electric poer outpu or check here if noneD
Idaho POt.¡er company
4d Identif utilties providing supplementary power, backup power, maintenance power, and/orinterruptfbIe power
service or check here if none 0
Idaho Power Company
PERC Form 556 Page 7 - AN Facilities
,Sa Direct ownership as of effectve date or operation date: Idetify all dir~t owners of the facil hoatlest 10
percent equit interest.For each Identifd owner, also (1)indicte whether that owner is an electriç utiity, as
defined in seion 3(22) of the federal Power Act (16 US.c.796(22)), or a holding company, as defled In section
1262(8) of the Public Utilty Holding Company Act of 2005 (42 U.S.c. 16451 (8)), and (2) R)rowners which are electric
utilftis or holding companies, provide the percentage of equity interest in the facility held by tht owr. If no
direct owrs hold at least 10 percet equity interest in the facUlt, then provide the reqUied information for the
two direct owners with the larges equity interest in the facilit.
Electric utlity or 'fYes,
holding % equit
Full legal names of direct owners compay interest
1)Cotterel WindEnergy Center LLC Yes.O No ~.100%
2)Yes 0 NoD %
3)Yes 0 No 0 %
4)Yes 0 No D %
5)Yes 0 No 0 %
6)Yes 0 No D %
7)Yes 0 No 0 l
8)Yes 0 No 0 %c:0 9)Yes 0 No 0 %~~10)Yes 0 No 0 %
Q)
continue in the Miscellaneos sectin strtfng on page 19 if acitional space is nee0-o Che here and0"'Sb Upstream (f.e.. indirect) ownership as of effective date or opertion dåte:Ider all upStream (i.e.. indirect) ownersc:of the fadlitythat both (1) hold at least 10 percent equity interest in the facilit, and .(2) are elecrlç utIlitie. asCO
0-defined in sectio 3(i2) of the Federal Power Act (1 Q U.s.c.796(i2)), or holdingcoml'es, as defined in section.-1262(8) ofthe Pubflc Utility Holdng Company Actof2ooS (42 U.s.c. 16451(8)).Al prøvlethe percentag of.i~equity interest in the factlity held by slKh owers.(Note that, because upstream owners may be subsidiries of on
(1 another, total percent equit interest reported may exceed 100 percent.)c:$Check here if no such upstream owners exist.I80
% equit Fuß legal names of electric utilty or holøing company upstream OWers interest
1)%_...~.M_____---
2)%----,--_.---~_._~..-
3)%.-..~.~..~-...,.......-...--......._..
4)%----.._.--..._.._--~..~.._-.. ......_--.---
5)If........__.....
6)%
7)%
8)%
9)%
10)%
0 Check here and continue in the Miscellaneous section strting on pae 19 if additiona space is needed
Se Identify the facility operator
Cotterel t'lndEnergy Center LLC
o
FERCForm S5Ó Page 8 - All Faciltis
.p::a.c..::~(1CW
6a.... Des th primary energy in~ (ch on main category and, If applicable, one subctegor)
o 8tomass (specfy) ~ Renewabl r~urces (specify) 0 Geotheral
o landtìlf gas 0 Hydro power - rier 0 Fossil fuel (specify
o Manre digestr gas 0 Hydro por - tidal 0 Coal (not waste)
o Municpal solid waste 0 Hydro power - wave 0 FueloU/diesel
o Seage digester gas 0 Soar - photovo1tak 0 Natural gas (not waste)
o Wood 0 Solar-thermal 0 Other fossil fuel
o Other biomass (desribe on page 19) f. Wind (describe on page 19)
o Waste (specify tye below in line 6b) 0 Other ~enewable resource 0 Other (describe on page 19)(descbe on pag 19)
lib If yo specified "waseo as the primary energy input in line 63, indkate the tye of waste fuel used: (check one)
o Wast fuel listed in 18CF.R. § 292.202(b) (specifoneofthefollowing)
o Anthradte culm produce prior to July 23, 1985
o Antbraclte refuse tha has an average heat content of 6,000 Btu or less per pound and has an aVerageash content of 45 percent or more
o Bituminous coal refuse that has an average heat conrent of 9,500 Btu per pound or less and has anaverage ash content of 25 percent or more
Top or bottom subbiturnnous coal produced on Fedral lands or on Indian lands that has been
determined to be waste by the United States Deartment of the Interots Bureau of land Managemento (BlM) or that is located on non-Fedral or non-Indian lands outside of BLM's jurisdiction, provided that
the appUcant shows that the latter coal Is an extensIon of that determined by BlM to be waste
Coal refse prouced òn Fel lands or on Indian lands that has been determined to be waste by the
o Bl.M ør thátíslocated on non- Federal or non-Indin lands outside of BLM's Jurisdicton, provided that
appliCllt shows tht th làter is an extensio of that deterIned by BlM to be wase
o lignite produced In a$soc¡~n with the producton of
man tan wax and lignite that becomes exposed
as a result of such a mfning operation
o Gaseous fuels (except natural gas and sythetiC gas from coal) (describe on page 19)
Waste natural gas from gas or oil wel~ (de$(ribe on page 19 how the gas meets the requirements of 18
o C.F.R. § 2.40 for waste natural gasjll"cJude with your filing any materials necessary to demonstrate
compliance with 18 C.F.R. § 2.40)
o Materials that a government agency has certified for disposal by combustion (describe on page 19)
o Heat from exothermic reactions (describe on page 19) 0 Residual heat (describe on page 19)
o Used rubber tires 0 Plastic materials 0 Refinery off-gas 0 Petleum coke
Other waste energy input that has little or no commercial value and exists in the absence of the qualifying
o facility industry (describe in the Miscellaneous secton starting on page 19; include a discussion of the fuel's
lack of commercial value and exIstence in the absence of the qualifying facility industry)
õcProvide the average energyinput, calculated on a calendar year basis, in terms ofBtu/h for the followîng fossil fuel
energy inputs, and provide the relted percentage of the total average annual energy input to the facility (18 C.F.R. §
292.202Q)). For any on or natural gas fuel, use lower heating value (18 C.F.R. § 292.202(m)).
Annual average energy Percentae of total
input for specified fuel annual energy input
o Btuth 0 %
o Btulh 0 %
o Btulh 0 %
Fuel
Natural gas
Oll-based fuels
Coal
FERC Form 556 Page 9 - All FacUltIes
Indicate the maximum gross and maimum net ele$,poer productio capëcitof tne facilty at the Point($)of
delivry by completing the worksheet belo. Respond to all items. If any of the parastIc loads and/or los tdntifed in
line 7b through 7e are neiglble,entet ze forthose lines.
7a Thrnaxmum gross pow prouction capcity at the terminals of ilindMdual getos)untb mostfavorable anticipa de condions 29, 900 kW
7b Parasitic station power ~ed at the fadl1 to run equipment which IS necessary and lnteQral to
the power producion process (biler feed pups, fans/blowers, offce or maitenance buildin
directly related to the operation of the poweT generating facilit, etc.). lfthis facflty lndiides 1'01'-
poer prodution processes (for Instance poer consumed by a cogneration factlltys thermal
host) , do not Include any power consumed by the non-power production actleS in yourreported parasitic station power. 0 WI
7c Electrtcat losses in Interconnection trnsformers OWl
1d Electrical loses in ACIDC conversion equipment, if any
OkW
7e Other interconnection losses In power lines or facilities (other than transformers and ACIDC
conversion equipment) betwen the terminals of the generator(s) and the point of Interconnecio
with the utility
7f Total deductons from gross power production capacity = 7b + 7c+ 7d + 7e
o kW
0.0 kW 0co...+oro
E'-
J2c
7g Maximum net power production capacity = 7a - 7f
29,900.0 kW
7h Description of facility and primary components: DesrIbe the facilit and its operation. Identif all bollers, hei
recver steam genertors, prme mov (any mecnical equipment drivng an electric generaor), elrical
generators, photovoltak solar equipnt, fuel cell equipmnt and/or other prima powergeneratlori eqUipment
usd in the facility. Descriptions of components should include (as apptiae) spedf'!tions ofthe odmlnal
capacities for mecanicl output, electrical outpt, or steam generation of the idntif equipment. For each piè(
of equipment identlfed, cleary indicate how many pieces of thattype of equipmet å(e mdude in the plant, and
which components are normaly operating or normally in standby mode. Prov a descriPtio of how the
components opeate as a sysem. Applicants for cogeneration faCilities do not need to desribe opetins of
systems that are clearl depleted on and easily undersandablé from a cogeneration facäitys attached mass and
heat balance diagram; however, such applicants should provid any necessarydescrl.ption neded to undel"tand
the sequentIal operation of the facility depicted in theIr mass and heat balance diagram. If additionl space is
needed, continue in the Miscellaneous section startng on page 19.
.?i
'ufau.
.t3c..u
~
The .Apha Wind facility will consist of 13 Siemens SWT-101 windtui:bines with
individual generator nameplate readings of 2300 kW each which feed into a common
öollector system. The individual generating units have reactive power
capabilities of 1,114 kVAr lagging and 1,114 kVAR leading. Unless otherwise
constrained, the facility will operate during weather conditions favorable to
energy production (hub height wind speeds between 4 and 25 mis, temi:¡¡tui:es
between -25 and +35 degrees C and during periods where wind turbulence levels
would unreasonably fatigue the machines) .While estimated values have been
provided in lines 7a - 7f, there is some uncertainty in these numer$ i:elating to
the degree of possible generator over-efficiency, uncertainty in the length of
the collection system, uncertainty in soil electrical properties, whether to
assume that there would be time periods when all 13 turbines are operating at
full capacity and other considerations. Given that some of these factors could
cause a slight over- estimate of actual loss values while others co~ld result in
a slight underestimate, we currently take the conservative view that the facility
output nameplate will be 29,900 kW.
FfR Form 556 Page 10 - Small Power Producion
InformatiOn RE:quired for Small Power Production Facility
If you indcate In Ilne 1 k that yo are seeking quli small po production facility status foryoir facility, then you
must repond to the item on this page Otherw, skip pae 10.
Pursuant to 18 C.F.R. § 292.204), the power prodU(tion capaity of any small powerprocWction facility, together
with the poer prOduction capadtyof any other small power productIon facilties that use the same energy
resource, are~ned by tl1esalie person(s) or it afliates, and are located ~t the same site, may not exæed 80
meawatt. To demonstate compliance wih this size limitation, or to demonstrate that your fadlity is exempt
from this size Ijm~tl()11 under the Soar, Wind, Waste, and Gethermaf Power Production IncentIves Act of 1990
(pub. L 101 ~S75, 104 Stat. 28~4 (1990) as amended by Pub. L 102-4, 105 Stat. 249 (1991)), respond to lines sa
through Be belo (as applfcåble).
8å Idênti(y any faCilities With electrical generating equipmt locted Wihin 1 mUe of the ele4rical generatirig
equipment of the instant faCility, and for which any of the entites identîfed in lines sa or 5b, or their affliates, holds
at least a 5 percent equit interes. ACheck here if no such fa.dities exi. r&Y
Facilitlocatlor Root docket # Maximum net power
(city or COUn.ty, stte) (I ån.y) Common owner(s) production capacity
(luc.!2 t!- 00. ._E ..o J9U 'Ë.. ...o ..C (Lo .!!.,p V'
G .cc¡ .i:~ 3:i-
3
Q. :iu c;C Q.
~ Eo.~
§ "5
u g'+ a:o Q.
C Vlo :J.p -
tt (LU ::(¡ u.
t .1Q. .i:U 3:
1)QF -kW........._---.---
2)QF -kW--
3)OF -kW..--.,..------
o Cbecklire andcootlnue in the Misellas seon startng on page 19 if aditiol space is needed
8b The Solar, Wind, Waste, and Geohermal Power Producion Incentives Ac of 199 (Incentives Act) proVides (J
exemption from the.siz~ 11itatlns in 18 C.F.R. § 292.a) for certin falites that were certifed prior to 1995.
Ate you seekiri exemptionfrom the sizhmlttions in 18 C.F.R. § 292.2(a) by virtue of the Incentives Act?
DYeS (eontin.uê atlînè 8c bélów) iz No (skp lines 8e through 8e)
8cWasthe odginal notice of self-'el"catin ol'appIicatloh for Commi$s;ontèrt~tion ofthe faciltty ri.led on or
beforeDecembe31,1994? YesO No CJ
8d Did constroction of the faCility commence on or before December 31, 1999? Yes 0 No 0
8e If you answered No in nne Sd, indicate whether reasonable dilgence was exerCised toward the completion of
the faCility, taking trUo accotJt allfators relevant to construcion? Yes 0 No 0 If you answered Yes, provide
a briefnarråtlve explanation in the MiSellneous secton starting on pag 190f the construction tiitline (in
partcular, decre WhYC0ostction started so long after the faCility was certified) and the dllgence exercised
t0ward completion of the fadlity.
Pursuant to 18 C.f.R. §292ip4(b), qualifying small power production facHitles may use fossil fuels, in minimal
amouhts for only the foll0wingpurposes: ignition; start-up; testing; frame stbilization; control use; alleViation or
preventiol) of unantidpatéø ~uipment outages; and alleviation or prevention of emergencies, directly affecting
the public health, safety, or welfare, which would result from electic power outages. The amount of fossil fuels
usedforthese purposes may not eXceed 25 percent 0f the total energy input of the facility during the 12-mol'th
period beginning with the date the facilityfirst produces electric energy or any calendar year thereafter.
9a Certfication of campllance with 18 C.F.R. § 292.204(b) with respec to uses of f0ssiI fuel:
l& Applicant certfiS that the facility wil use fossil fuels exclusivly for the purpose listed above.
9b Certificatin of compliancewih 18 C.F.R. § 292.204(b) with respet to amount of fossil ful used annually
Applicant certifies that the amount of fossil fuef used at the facility will not, in aggregate, exceed 25
r& percent of the total energy Input of the factlty during the 12-month period begtnnlng with the date the
facility first produces electric energy or any calendar year thereafter.
FERC Form 556 Page 11 - CogMntl f~i1tl
'Information Required for Cogeneration Facilty .
If you indIcated Inlfne 1 k that YOl are seeing qualifng cogeatiQn facility status for your facility, then you must respond
to the items on pages 11 through 13. Otherwise, skp pages 11 tbh 13.
Purant to 18 C.F.R. § 292.it2(c), a 'cogeneration facilit produces electric energy andforrs of usel thermal A
energy (suh as heat or steam) used for industrl, commercial, heat, or COØnptrp05e, throgh the sequentil V
use of energy. Pursant to 18 C.F.R.§ 292.202(S), "sequential use" of energymeal's thefolloWi (1 for a topping-
cycle cogeneration facilit, the use of reject heat from a PQwer production proces in suid~tamoul" in a
thrmal application or proces to confor to the requirements of the operating standd contained in 18 C.F.R. §
292.205(a); or (2) for a bottoming--yde cogeneration facilit, the use of atleastSO rejec heat fro a thermal
applictio or process for power production.
co:¡
~ c(1 0C .-
QJ ..~ËU i.-~~ c(I -c(I~
10a Wht ty(s) of cogeneration technof does the facilit reprsent? (chec atl that apply
o Topplng-ecle cogeneration 0 Bottomlng-ecle cogeneratin
lOb To help demonstrate the seqential operati of th cogeneratinproc,andto supor;cOfllnèewlh
other requiements such as the optin and effie stndards,. indud wi your filings.ma and heat
balance diagram depicting averae annuat oprating conditions. This diara must Indude cerin iters.an
meet certain requirements, as described beow. You must check next to the deription of each requiremènt
below to certif that you have complied with thes requirements.
Chec to certify
compliance with
indicated reqirement
o
o
o
o
o
o
o
o
o
o
Requirement
Diagram must show oritation within sysm piping and!QT ducts Qfal primE mowrs,
heat .recover steam generators, bole elecrigeneratoand c()rs (as
applic;able), as well as any other primary equipmnt relevnt to the cogenerat
process.
Any average annual value required to be reported in line lOb, 128, 13a, 13b, lSd. 13f,
14a, 15b, 15d and/or 1Sf must be computed over the anticipated hours of o~ratlon.
Diag.ram must sp all ful inputs by fuel type an(faverge antiuarate in Btt..Fue
for suplementary firing should be speclfed separately and dea labeled All
specifations of fuel inputs should use lower heating value.
Diagram must speify average gross electric oUtut In kW or MW for each generato.
Olagram must specify average mechål'icaloutput (that Is, any mechanical energy taken
off of the shaft of the prime movers for purposes not directly related to eleetri por
generatin) in horepoer, if any. Typical(,a cogeneration facilty has no mehanicloutput
At each point for whk;h working fluid flow conditins are requite to be specff (see
below), such flow conditn data must indude mass flow rate (in Ib/h or kg/$).
temperature (in OF, R, °C or I(, absolute p.ressure (In psia or tea) an enalpy (in Btllb
or kJ/kg). exception: For sytems where the workingfMçl is Ilqvid only (no vapor at any
point In the cye) and where the tye ofllqyid ~spedfic h~atQftbat liquid are dearl
Indicte on the diaram or in the MI$çellanOOYs seion siangonpae , 9, only mass
flow rate and temperature (nC)tprssure and enthalpy) nee be spe. For reference,
specific heat at standard conditIons for pure Uquid wateris approimately 1.002 Btul
(lb*R) or 4.195 kJ/(kg*K.
Diagram must spedfyworing flid flow contio at inut to and output from each
steam turbine or other expnsion turbne or back-prtireturbfne.
Diagram must specif working fluid flw conditions at delivery to and return frm each
thermal application.
Diagram must specify working fluid flw conditions at make-up water inputs.
fERForm 556 Page 12 - Cogenertion Facilties
C1VI ~
:: .-+-
to:- :.~,;.Oc CO(1. U.
~ g
"0 += No. Your facilty is not subject to the requirements of 18 C.F.R. § 292.205(d) at
this time. However, it may be
C æ 0 subjec to to these requirements in the future if changes are made to the facility. At such time, the applicant
:: (I would need to recert the facility to determine eligibilty. Skip lines 11 d thröUh11j.U. C
. P ~ 11dDoès the applkânt conten that the change identifec in line 11 c are not so significant as to make the fadlity
~ 0 . al'nêW'cogeneratiòn facitty that wold be subject to the 18 CF .R. § 292.20S(d) cogeneration requirements?
'E U Yes. Provie in the Miscellaneous secton starting on page 19 a desription of any relevant changes made to
(I E C~J the facility (inclding the purpse of the changes) and a discussion of why the facilty should not be
E e considered a "new" cogenertion facility in light of the chang Skip lines 11 e through 11 j.
(l \+.!: ~
:: ::0" c.
(I +-0: ::L/ 0o ~o OfN i-..cuU c:-: L.
frr~
EPAct 2005 cogeneration facilities: The Energy Polky Act ot205 (EPAct 20(5)esblls a new sectio 210(n).of
the Public Utility Reglatory Policies Act of 1978 (PURPA), 16 USC 824ë-3(n), with additional requirements for ahy
qulifyg cogenerio facility that (1) is seng to sel electric energ pusuant to section 210 of PtJRPA and (2)
was eiher not a coeneration facilit on August S. 2005, or had not file å sef-eerifcation or appication. for
Commission e;ertiftion ofQF sttus on or beore Februry 1,200. These r&¡uirements were implemented by the
Commisson in .1 S;C.r¡:.R. §292.205td). Complte the lines below, carefully follOWng the instruions, to demonstrate
"ìet~thadditional reauiTementsap.piY to.your e;ogeneration facility and, ifso, whether your facility compiles
wit .sch requirements.
(Io11a Wasyoufadlityoi:rating as a qualifying cogenration facilit on or before August 8,2005? Yes 0 No 0
11 b Was the initial filing seeking cerifcation of your fadlity (whether a notice of self-ceitication or an application
for Commison ~erification) filed on or befre February 1, 2006? Yes 0 No 0
If the answer to either line 11a or 11b ÎsYes, then continu at line 11c below. Otherse, if the answers to both lines
11 a and 11 b are No, skiti to line 11e belo.
He With respect to the design and operatin of the facility, hav any changes been implemented o!'ror after
Febrary 2; 100 that afect generl plant operatloiii affec use of thermal output, and/or increas net power
production capadtyfrom the pIatscapacity on february 1, 2oo6?
o Yes (continue at line 11 d below)
o
'0
No. Applicant stipulates to the faCt that it is a "new" cogeneration facility (for putposes of determining the
OappliCbilofthreuirements ot18C.F.R. § 292.205(d)) by virtof modifcations to the facility that
were
initiate on or afr February 2, 2006. Continue belo at line 11 e.
4)11e Wiil electic enery from the fadlity be sold pursuant to section 210 of PURPA?
DYes. Thefåcility is al'EPAct 1005 cogenetion facility. You must demonstrate compliahce with 18 CF.R. §292.A05(t;) bycötinlJing at line .11 f bew.
Nø. AppliCnt certes that energywil not be sold pur.sant to seon 210 of PURPA. Applicant also c:ertifies
o .jt undèrsndiñg thatitmus recerify its fadlltyin order
to determine compliance With the requirements of
18 C.F.R. § 292.20S(d) before selling energy pursant to section 210 of PURPA in the future. Skip lines 11 f
through 11j.o11f Isithe net poerplodueion c:apadty of your cogneration faCility, as indicated in line 7g above, less than or
equalto 5,ØOO WI
Yes, the hètpoêr tirod~ctrOh CåpaiyÎsles than or equal to 5,000 kW. 18 CF.R. § 292.205(d)(4) provides a
'rebutbfe.t)resurJ)n n:atfogeneration fadites of 5,() kW and smaller capacity comply with the
0reqOireéht for fua01.ent~l use of the facilitYs energy output in 18 CF.R. § 292.205(dJ(2). ApplicantW .tettifes ftUhdèrsandihf¡!ft, should the P?wer producti~n capacit of the facility increase above 5,000
'KW, then thè fâtilft musoereclted to (amog other things) demonstrate compliance with 18 CF.R. §
292.205(d)(2). Skip lines 11 9 through 11).
No. the nettiower pron capacity is greater than 5/000 kW. Demonstrate complance with the
o requirements for fUndarnntaluse .of thefacllits energy output ih 18 CF.R. § 292.205(d)(2) by continuing on
the next page at line 11 g.
. ,
FERC Forro 556 Page 13 - Coenon F'adties
~""(1::c(1 .-vi +"~ §
- u.æ --c vi(1 (J
E ..¡.. ...-to '0
"" toC u.
:: c:u. 0
io :p.2 .... ~
J1 (JC C
(J (JE g~ U
.:: Et: 0~~
Ll +"o ::o .eN ::Ü 0.: ~0. e'W (1
CWÖ
Lines 11 g through 11 k below 9lidthe ~cantthroh the processøt deroonsttilgçQrnpllatlWlthe
requirements for "fndamental usR of the facilitys energy ouput. 18 Ç.F.R § 292.205(d)(2). OI)I~~~po to the
lines on this page if the instructions on the previous page direc YOtl to do so. Qtrwise, skip this page.
18 C.F.R. § 292.20S(d)(2) requíis thattheeletrkal, theral, che1kâländme~llia¡1 j)Llutgf ánEPAcf~OOS
cogeneration fadliiy is used fundamentally for Industial, çommerdal, residential orînstitlialpUlpose and Is
not intended fundamentally for sale to an electric utility, taking into accotl'tteçhn9~içal, ef~n~, economic,
and variable themal energy requiremnts, as ~l1 as state laws appliçbl(! .tcs~les ofelecricenergyfro a
qualifing facility to its host faIDty. If YOt,weredireaed on the pteViusPage totespond to the ilels on this pa,
then your facility is an EPAet 2005 cogeneratio fadlity that is subje to this "fndamental usR reultement.
The Commission's reulations provde a two-tonged approa to densngcopfceWithth
requirements for fundamental use of thefaitsenergy QUt. First, the Commision has esished in 18 CF.R.
§ 292.205(d)(3) a "fundamental use test'that can be used to demonstrate compliance with 18 C.F.R. § 292.205(d)ci).
Under the fundamental use test, a facilty is considered to comply with 18 C.F.R. § 292.20S(d)(2) if at least 50 percent
of the facilitys total annual energy output (including electrical, thermal, chemical and mechanical ènergy output) is
used for industrial, commercial, residential or institutional purposes.
Second, an applicant for a facili tht does not pass the fundamental use test m~y prVidè a narrative explanation
of and support for its contention that the facilit nonetheless meets the requirement that the electricalr thermal,
chernkal and mechaniCal oupUt of an EPAet 2005 cogner'tionfality is used fundamentally for industal,
commercial, residential or institutional purpos and is not intended fundametally for sale to an elctrk utilty,
taking into accunt technological, effdency, econom ie, and variable thermal energy requirel1ts, as well as state
laws applicable to sales of electric energy from a quang fadlity to its host facilit.
Complete lines 11 g through 11j below to determine compliance With the fundamental use test in 18 C.f.R. §
292.20S(d)(3). Complete lies 11 g throuh 11 j even if you do not imend to rely up the findamentdl U$etet to
demonstrate copliance with 18 C.F.R. § 292.205(d)(2).
11 9 Amount of electrlcal, thermal, chemiCal and meèhankal energy output (net of Internal
generation plant losses and para$itlods) expected to be us annually for industrial,
commerdal, residntial or institunal PUrposes and not sold to an electric utilty MW
11 h Total amount of electcal, therrnal, chemical and mechanical energy expect to besold to an electric utility MWh
11i Percentae of total annual energy output expeed to be us for industrial A
commercial, resIdential or Institutional purposes and not sold to.autlity V
::100* l1g/(11g+ 11 h) () %
11j Is the resonse in line 11i greater thn or equal to 50 Percer't?
Yes. Yourfaci1ìty complies with 18 C.F.R. § 292.105(d)(2) byvirtue of passing the furtdamental us test
provided in 18 C.F.R. § 292.20S(d)(3). AppTicant çertes itsurirstanqinthëtifit is to relY4Pon paS$ing
o the fundamental use test as a basis for compIyng with 18 C.F.R. ~ 292.2()S(d)), then th facill must
comply with the fundamental use test i,oth in the 12~month period beginning with the date the facilit first
produces electric energy, and in all subsequnt çalendar years.
No. Yourfadlity does not pass the fundamental use test. Instead, yO mdst prQvide tn thè t.iselneous
section strting on page 19 a narrative explanati of and support fonvhyyor facliitmee the
requirment that the electrical, thermal~ chemkal and mech~nicatoutput of an EPAet.20~5cogneratln
faciit is used fundamentally for industrial, commercial, relderitlaJ ~r I~tt~ttonal PtJrpose and is not
intended fundamentally for sale to an elecric utilty, taking into accounttec:nologlcal,effcien~, economic,
and variable thermal energy requirements, as weIl as state laws applicable to sales of electc enery fro a
QF to its host facilty. Applicants providing a narrtive explanatin of why their faCilit should be found to
o comply with 18 C.F.R. § 292.205(d)(2) in spite of non-compliance with the fundamental use test may want to
review paragraphs 47 through 61 of Order No. 671 (accessible from the Commission's QF website at
ww.ferc.gov/Qf), which provide discssion of the facts and clrc:mstances that may support their
explanation. Applicant should also note that the percentage reported above Will establish the standard that
that facilty must comply with, both for the 12-month period beinning with the date the faCility firs
produces electric energy, and in all subsequent calendar years. See Orer No. 671 at paragraph 51. As such,the applicant should make sure that It reports appropriate values on tines 11 g and 11 h above to serve as the
relevant annual standard, taking into account expected variations in production conditions.
, '
FERC Form 556 Page 14 - Topping-Cycle Cogeneration Fadlitles
Information'Required for Topping-Cycle Cogeneration Facility
If you inQÇat~ In line lOa that your facilty represents toppingle cogeneration technology, then you must respond to
the items on pages 14 and 15. Otherwse, skip pages 14 and 15
Th thèrmalenrg ouput of a topping-e cogenertio faUit is the net energy mae available to an industrial 0
or cómintdalpro~7$S or USéd in a heang or coolin applcation. Pursuant to sections 292.202(c), (d) and (h) of the
~OlmiSSionds r~gu~tions (18 S.F.R. §§ 292.202(c), (d) and (h)), the thermal energyovtput ofa qualifing topping-
cyde co~el)erati()n fa9lity rnus,. ~ usefuL In connecion with this requirement, describe the thermal outpu of the
topping-cde coget:ertion facilit W resnding to lines 113 and 12b below.
(1
~
O' +-C ::.- 0-0. +-0. ::~~4- too EII i.
IDCl
c: .... f-¿(1II::
12aldentifyand describe each thermaLhost and speci the annual average rate of thermalôUtput made available
toeadi hostf() each us. For hos wih multiple use of thermal out¡iutj provide the data for eah use in
separate rows.Average annual rate of
thermal outpt
attributable to use (net of
heat contained in process
return or make-up. water)
Name of entity (thermal host)
taldng thermal outpu
Thermal hosts relationship to facilit;
Themal host's use of themal outpu
SeJect .ther~1 host's relationship to facilty
Select thermal host's use of thermal output
$elect tber~l host's relationship to facility
Select thèrmal host's use of thermal output
seiec thermal host's relationship to facili
Selt thennl host's use of thermal output
Sele thermal hos's relationship to facilty
Select thennl host's use of thermal output
Select thermal host's relationship to facility
Selecthetmal host's.ia of thermal output
Select thermal host's relationship to facility
Select thermal host's use .0£ tlermal output 13tu/h
o Ched here and continue in the Miscellaneous section starting on page 19 if additional space is need
iibDemonstrai()O ofusefunessof thrmal output At a minimum, provide a brief description of each use of the
thermafoåtpoideritified above. In some cas, this brief desñption is suffdentto demonstrate useulness.
l'owever,ifyôUfadlitys USe ofthêràloutput is not common, and/or if the usefulness of such thermal output is
not reasonably clear, then you must proVlde addtional detils as necessary to deonstate Useulness. Your
applîcaijon .m~y be rejetea. andlat additionl Informatin may be required if an insuffcient showing of us.efuness
is ma4e. (ExCEt¡iti()n; lfyou have previously received a Commission cerjfl(tin appro"in a speific use of thermal
out!)Ut r~l.ateto the.lnstant façility, then you need only provide a brief description ofthat use and a reference by
date and docket number to. the ora~l" certifying your facilit with thelndlcated us. Such exemptlon may not be
used itari~change.creates..(l materl deviation from the previusly authized use.) lfaddit¡onal spce Is needed,
çC)fijnueln the Mlsellaneos secion starting on page 19.
1)
Btulh,
2)
Btulh
3)
Btulh
4)
Btulh
5)
Btulh
6)
FER Form 556 Page 15 - T oping-yde Cograti fades
Appflnts for facUltes representrng t0pp-ee technology must demonstrtecompliance with the topping
cycle oprating standrd and, if applicable. efficiency standard... Secion 292.25(a)(1) of tli ComrnS$lon's
regulations (18 C.F.R. § 292.205(a)(1 n establshes the operating standard for toppil'g~c.yde cOgene~tionfacili:
the useful thermal energy output must be no les than 5 percent of the totêll energ outpt . Seci.on 292.2ØS(a)(2)
(18 C.F.R. § 292.205(a)(2)) estbrishes the efcien standard for topping-ccle cogenel'tiofifadimes tot Which
installation commenced on or aftr March 13, 1980: the useful ~er ouput ?fthefà'ity plus 0re- the usefl
thermal energy ou must(A) be no less than 42.5 pecent of the total energy input of n.~tuOlI gas~d oil to the
facility and (8) if the useful thermal energy out is .les than 15 percent of the total energy output of the facility,
be no less than 45 percent of the total energylnpu of natural gas and.oUto the faclltt..To demnstte
compliance with the topplng-ede operating and/or effciency standards. or to demnstrate tht your facility Is
exempt from the effciency standard based on the date that li:tallation commnced. respc)ld to lines 13a through
131 below.
If you indicated in line lOa that your facUity represnts both toppg-cycle and bottmlng-Clé cogeneration
technology, then respond to lines 13athrough 131 below considring only the enrgy inputs and outputs
attributale to the topping-cycle portion of your facility.Your mass and heatbaance diagraO n:us make cler
which mass and enetgyflow values and system components are for whk:h porn (topplJl otbottomlng) of the
cogeneration system.
13a Indiate the annual average rate of use therl energy output mae avable
"'to the host(s), net of any heat contaned in condente return or malce-p water Btulh
c:c:13b Indicate the annual average rate of ne eleeticl energy output
ta 0 kW...0-..13c Multiply line 13b by 3,412 to convert from kW to Btuhc:..:¡:J 0 Btu
~u 13d Indicte the annual average rate of medlanlcaJ energy outut taken direetyof
Q)ta of the shaft of a prime mover for purposes not directly related to power productionQ.U (this value is usually iero)hp0Q):J 13e Multiply fine 13d by 2,544 to conver from hp to Btu/h...-u ~o Btu!h
~~13f Indicate the annual average rate of energy Input from natural gas and oil
,Btul0-C 139 ToppiJl-ecle operating vakie :: 100. if 13a I (13a + 13c +Be)c:Q)
'õ..0 .0%
C.æ 13h Topping-cycle effciency value ::100. (O.5*l3a + 13c+ 13e)/13f
~W 0 %
131 Compllancewit operating standard: Is the operti valu show in line 13g greaterthahor equal to 5%1
o Yes (compIle with operating standard 0 Ne (do not comply with operating standard)
13j Did installation of the facility in Its current form commence on or after March 1319801
0 Yes. Your facilty is subject to the effcienc requirements of 18 CF.R. § 292.205(a)(2). Den:onstre
compliance with the efdency requirement by responding to line 13k or 131, as applicable.below.
0 No.Your facilit is exempt from the effciency standard.Skip lines 13kand13L
13k Compliance with efficiency standard (for low operating value):If the operating value show In line i 39 is les
than 15%. then indicate below whether the effdencyvalue shown in line 13h greater than or equal to 45%:
DYes (complres with effciency standard)0 No (does not compl with effiency standard
131 ComplIance with effciency standard (for high operating value):If the operating value shown in line 13gls
greater than or equal to 15%, then indicate below whether the effciency value shown in line 13h Is greater than or
equal to 425%:
DYes (complies with effciency standard)0 No (does not compl with eficiency standard)
o
o
o
o
o
.
.FER Form 556 Pag 16 - Bottomtng-Cyde Cogeneration Facilities
InformcitiQn.RequireclforBQttQl'iog-Cycle CogeneratIon Facility
If you indictmJn line l~thatyour fadli repesnts bottoming-cle cogeneration technoloy, then yöu must respond
to the items on pages 16 and t7~ Othrwse, ski paes 16 and 17
The thermal energy output of a bottoming-ecle cogeneration facility is the energy related to the process(es) from '0
which at least some of the fejectheatis then used for power productn. Pursuant to sectIons 292.202(c) and (e) of
the Commission's regulatjns (Hl c..F.R. § 292.202(c) and (e)) , the therml energy output of a qualifyng bottoming-
cxçle cag~neration fadlityf1ust be us. In connection wit this requirement, describe the process(es) from which
at feast $Orne pf tl rejt heat is use for power proucon by responding to llnes 14a and t 4b below.
QJ
~I
gi +-._ :iE 0-
o +-+- ~Õ~a: t'
'+0 E:iVI (IVI ..~ l-
'tVI:;
14a ldentify and de$cnbe each theral ho and each bottoming-eycle cogeneration process engaged in by each
host. For hosts with multiple bottomlng-ecle cogeneration processes, provide the data for each process in
separate rows
Name of entity (themal hos)
perfming the process from
which at least some of the
reject heat is used for power
produtiO
Has the energy input to
the thermal host been
augmented for purposes
of increasing power
production capacity?
(ifVes, desèribe on p. 19)
Thermal host's refationship to facility;
Thermaf hosts protes tye
~eleithermal f1st's relatiönship to facility Yes 0 No 0
Selec thermal host's process type
Select thermaf host's relationship to facility Yes 0 No 0
$efec thermal host' process ty
Sefect thermal host's relationship to facility VesD No 0
Seled therl hots.proces type
o Chek her and continue in the Miscellanes secion starting on page 19 if additional space Is needed
14b Demnstratlon of usefulness of thermal output: At a minimum, provide a brief description of each proces
identified above. In some cases, this Mef desciption Is sufcient to demonstrate usefulness. However; If your
faciltys process is not common, and/or if the usefulneSS of such thermal output is not reasonably dear, then you
must provide additional details as .necessary to deonstrate usefulness. Vourappfication may be rejeced and/or
additonal Information may be requIred if an Insuffcient showing of usefulness is made. (Exception: If you have
proysly I'eceived a Commission cerfition approving a spcific bottoming~cyde process reláted to the instant
fatiflt¡ then you need only provide a bri descripton of that process and a reference by date and cle:ket number
to thecrdtêérngyorfadHtywith the indicated process. Such exemption may no be used if any material
changes to the process have ben made.) If additional space is needed, continue in the MisceIlaneous section
starting on page 19.
1)
2)
3)
..
. ,
FÈRC Form 556 Pag 17 - Bottoming-Cycle Cogen3tFadlities
..
Appicants for facilities represeting b0ttoming-cycle technology and for wbichlnstållatlon (Ommece4 on or afrMarch 13, 1990 must demonstrate compliance with the bottoring-cyde eff~cy ~ndar~S:~ion 2~tfOS(b) of
the Commission's. regulations (18 C.F.R. § 292.205(b)) esbIts the effKiency standard for bQt,~()mit~e
cogeneration fadtities: the useful power output of the facility must be. no less than. 45 percent ofthe!Tergylnputof natural gas and oil for supplementaryfiring. To demonstrate compIlanc withthebolng-ccle èfciency
standard rif applicable), or to demonstrate that yor facility is exempt frm this stëndardbased Of' thdate thatinstallatio of the faciIlty began,rend rolines 15a through 15h beow.
If you Indicate In line lOa that yor facility represnts both toppmg--le and bottoming-ccle,co$'ation
technology, then respond to lines 15athrough 15h below considering only the energy if'pu and 0l
-C attributable to the bottoming-cycle portion of your facility.Your mass and heat balance diagram must make clear
c:which mass and enery flow values and systêm components are for whiCh pOrn of the cogeneråtfrfSymroc(topping or bottoming).0)0
C ',p
:¡12 15a Did InstaUation of th facility in its currt form commence on or after March 13, 1981
~::u Yes.Your facilty is subje to the effciency reulremt of 1$ C.F.R. § 29t.i05(b).Demonstrate complianceCO00-ro wIth the effciency requirement by responding to lines 15b throgh 15h below.0 U
CO
OJ 0 No.Your fadlfty is exempt from the effciency standard.Skip the rest of page 17.::u -
à ~15b Indicate the annual average rate of ne electrical energy output
i ~kW0)U lSe Multiply line 15bby3A12 to c.onvert from kWtoBtuthCC...(J 0 BtuthE'0 15d Indtcte the annual average rate of mechanical enrgy outpu taken direcly off
ß æ:of the shaft ofa prime mover for purposes not dIrectly related to power prodtin 0 w (thisvaJ is usually zeo)hoCOl5eMultiply line lSd by 2,544 to conver from bp to Rth
0 Btulh
lSf Indicate the annual average rate of supplementary energy input from naturag8s
or oil ßtulh
15g Bottoming-ede efciency value =100*(15c+15e)l 1Sf
0 %
15h Compfiance with effciency standard:Indicate below whethe the effciency value show in line 15g is .$Jr~terthanor equal to 45%:
DYes (complies with effKiency standard)0 No (does not complwrt effclncy~d)
o
o
oo
.
. .
FER Form 556 Pag 18 - AU Fadlities
(3eytj,ficâteof Compfet~neSs, Accuracy and Authority
Apg:liçant mll cert comPiiance with and understanding of filing reqirements by chedcig next to each Item. below and
signil'9.ëlphe bottom of this section. Forms with incomplte Certîftes of Completenes, Accuracy and Autotty wil be
rejeçtedby the Secretaiy afthe.Com¡nssion.
$ieridtied.be cerfie;thefollowmg:fchet all items and aplicable subitems)
He or she has read the filing, including any inforation contained in any attached documents, such as cogeneration
¡gi mass.êf hea balance d'iarams, aiid any inforation contained in the MiSellaneous seion startng on page 19, and
knOW .Îttontents.
f2..lieorsñhas provided
all or the.reqredinforration for certcation, and the provided information is tru as stated,
to the bes of his or her knoedge and belief.
~ He or she pössess full power and authri to sign the fiing; as reuired by Rule 2oo5(a)(3) of the Commission's Rules of
Practice and Procedure (18 C.F.R § 385.205(a)(3)), he or she is one of the following: (check one)
o The person on whosebêhalf the fillri is mae
i& An offcer of the corporation, trust, associatin, or other organized group 011 behalf of which the fiing is made
o An offter, agent, or employe of the goermental authority, agenc, or instrumental1ty on behalf of whiCh thefißng Is made
o A representative qualifed to prctice before the Commission undr Rule 2101 of the Commission's
Rules of
Prctice and Procedure (18 CF.R. § 385.21 01land who posse authrit to sign
r& He or she has reviewedallai.rntic cakulaiöns ánd agree wit their
results, unless othetse. noted in th
Miscellaneous section starttngonpae 19.
He or she has provided a copy of this Form 556 and all attachments to the utilities with which the fadtlt wîl
!' interconnect eind transact (see lines 4a through 4d~, as well as to th reglatoiy auhores of the states in which theli facilit, and those utllitles reside. See the Required Notite to Publit Utilities and State Regulatory Authorities secton Oh
páge 3 for more information.
ProVie yor signature, adds and sfgnatuedatelielow. Rule 2005(t) of the Comqiision's Roles of Practice and
Proc.edure (18 C.F .R. § 385.2005(c)) provides that persons filing their documents electronically may use typd characters
r~renting his ~r her name tösign the file9~cuents. . A person filing this document eleconiclly should sign (by
typlng his or her name) in the spae préVed below.
Your Signature Your address
150 N. Dairy Ashford Road
Bldg C-356D, Houston, TX 77079
Date
RiChard Williams 10/27/2010
Audit Nötes
Commission Staff Use Only:o
,
. , ,
FERC Form 556
Miscellaneous
Use thts space to provide any information for which there was not sufcient space in the preious seions of the for to
provide. For each such Item of information dearly identify the line number that the informati belongs to. You may also use
this space to provide any additional information you believe is relevant to the certiftion of your facility.
Your response below Is not limited to one page. Additional page(s) witl automatlcalfy be inseed into this for if the
length of your response exceeds the space on this page. Use as many pages as you require.
Page 19 ~ All Facties
f
:
?lli!..i,i'j l
4: 34
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-IO-51
ALPHA WIND LLC
AFFIDAVIT OF KEVIN SIMMONS
EXHIBIT NO.2
SEE AFFIDAVIT OF KEVIN SIMMONS FILED IN CASE NO.
IPC-E-IO-52 FOR EXHIBIT NO.2
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC..E-I0-51
ALPHA WIND LLC
AFFIDAVIT OF KEVIN SIMMONS
EXHIBIT NO.3
SEE AFFIDAVIT OF KEVIN SIMMONS FILED IN CASE NO.
IPC..E..I0-53 FOR EXHIBIT NO.3
í!ì11,.'li-l
1.: ~\;
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-IO-51
ALPHA WIND LLC
AFFIDAVIT OF KEVIN SIMMONS
EXHIBIT NO.4
SEE AFFIDAVIT OF KEVIN SIMMONS FILED IN CASE NO.
IPC-E-IO-54 FOR EXHIBIT NO.4
(I: ')5.i v.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E..I0-51
ALPHA WIND LLC
AFFIDAVIT OF KEVIN SIMMONS
EXHIBIT NO.5
SEE AFFIDAVIT OF KEVIN SIMMONS FILED IN CASE NO.
IPC-E-I0-55 FOR EXHIBIT NO.5