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HomeMy WebLinkAbout20110318Delta Wind Comments.pdfPeter J. Richardson (.~' SB # 3195) Gregory M. Adams (lSB # 7454) RICHASON & q'LEARY, PLLC 515 N. 27th Street I Boise, Idaho 83702 i Telephone: (208) 93$-2236 Fax: (208) 938-7904! peter~clillan~olear.com gregrgrichardsonandplear.com Attorneys for Alpha Wind LLC, Bravo Wind LLC, Chalie Wind LLC, ijelta Wind LLC, and Echo Wind LLC iii BEFORE THE IDAHO r (=t 17 !,: t;21 'j:. PUBLIC UTILITIES COMMSSION IN THE MATTEi OF THE APPLICATION cPF IDAHO POWER C.OMP. ANY FO~! A DETE, . RMINATION REGARING A IR ENERGY SALES AGREEMENT B TWEEN IDAHO POWER AND A . PHA WIND, LLC IN TH MATTEk OF THE APPLICATION c?F IDAHO POWER COMPANY FORj A DETERMINATION REGARIN. G A fIR ENERGY SALES AGREEMENT BfTWEEN IDAHO POWER AN BRA VO WIN, LLC I IN THE MATTER. OF THE APPLICATION cPF IDAHO POWER COMPANY FO~ A DETERMINATION REGARING A fIR ENERGY SALES AGREEMENT BßTWEEN IDAHO POWER AND CIjIE WIN, LLC ) CASE NO. IPC-E-10-51 ) ) ) ) COMMENTS OF ALPHA WIND LLC ) ) ) ) CASE NO.IPC-E-10-52 ) ) ) ) ) COMMNTS OF BRAVO WIN LLC ) ) ) CASE NO. IPC-E-10-53 ) ) ) ) ) COMMENTS OF CHAIE 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 REGARING A FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER AND ECHO WID, LLC , I ) CASE NO. IPC-E-10-54) : ) ) ) ) ) ) ¡ COMMNTS OF DELTA WIN LLCi i ) CASE NO.IPC-E-ia-55 ) ) ) ~ COMMENTS OF EC~O WIN LLC ) ) COMES NOW, Alpha Wind LLC, Bravo Wind LLC, Chalie W~nd LLC, Delta Wind LLC, and Echo Wind LLC, each of which is managed by Cotterel WinpEnergy Center LLC , ,, (collectively the "Cotterel WindEnergy Center LLCs"), and pursuat to thelldaho Public Utilties Commission's ("Commssion's") Notice of Modified Procedure and Ordlr No. 32188, hereby files these Comments in the above-captioned matters.! For the reasons I set fort below, the iCotterel WindEnergy Center LLCs respectfly request that the Commissfon approve the Firm ! Energy Sales Agreements ("FESAs") with Idaho Power for each of the fivelprojects. i I ¡i i The relevant facts for each of these five projects are substatially siililar. Counel for the Cotterel WindEnergy Center LLCs has therefore filed a single set of Comments applicable to all ifive projects to save the Commission and other interested pares from tht need to review fiveseparate sets of Comments. : COMMNTS OF ALPHA WID LLC, BRAVO WI LLC, CHAIE WI LLC, DELTA iWIND LLC, AND ECHO WID LLC ! CASE NOS. IPC-E-1O-51, IPC-E-10-52, IPC-E-I0-53, IPC-E-1O-54, IPC-It-10-55UOO2 i r INTRODUCTION \ The five Co~erel WindEnergy Center LLCs are each located near Burley, Idao, and are i each quaifyg facilities ("QFs") entitled to contracts with rates set at Idao Power's ful I avoided costs, undtr the Public Utiity Regulatory Policies Act of 1978 ("PUR A"), as implemented by the I Idaho Public Utilties Commssion. Alpha Wind LLC, Bravo Wind LLC, i Delta Win LLC, ed Echo Wind LLC will have an output of 29.9 megawatts ("MW"), and Chalie Wind LLC "fll have an output of 27.6 MW. Each will generate 10 average monthy i megawatt ("aMW"j or less. The Cotterel WindEnergy Center LLCs and their predecessors and parent companes b~gSl developing these wid projects in 2001, and possess rights to use all i ifederal, state, and Jivate lands necessar for the projects. They have proceeded though a , System Impact Stu4Y with Idaho Power for interconnection of a larger overall output of 177 i MW, under a queue ~sition which the projects stil retan. Interconnection is feaible based on th existing studies. I i In tota, the ¡developers of the five projects have spent approximately $7 millon. The i Cotterel WindEner~ Center LLCs' predecessor project was the finalist in Idaho Power's June i 2009 wi request far proposals ("RFP"). ! On October i8, 2010, the Cotterel WindEnergy Center LLCs provided Idaho Power with, five stadad PUR~ contracts contanig non-levelized rates in Order No. 31025, executed by i the Cotterel WindE~ergy Center LLCs. Afer Idaho Power, along with Avista Utilities an Ii Rocky Mountan PolVer, fied the Joint Motion to Reduce the Published Rate Eligibilty Cap on i November 5, 2010, the Cotterel WindEnergy Center LLCs each filed complaints agaist Idao COMMENTS OF AtPHA WI LLC, BRAVO WI LLC, CHAIE WIND LLC, DELTA WID LLC, AND ~CHO WI LLC CASE NOS. IPC-E-l0-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-10-55 PAGE 3 ¡ ~ Power on November 8, 2010, allegig they were entitled to standard PURP.. contrcts and Idaho , Power had uneasonably required the projects to proceed though unece~sar interconnection i and transmission processes in response to the QFs' contract submitts nlhen the QFs already i Ipossessed the rights obtained though Idaho Power's Large Generator Intertonnection Process in i its Open Access Transmission Tarff ("OA TT"). Idaho Power and the Cotterel WindEnergy !Center LLCs agreed to stay the complait proceedigs and execute stadaid QF wid contracts. On Friday, December 10, 2010, afer the QFs agreed to proceed thoug~ Idaho Power's new i interconnection and transmission process in response to Idaho Power' s c~ntinued insistence to iuse that process, Idaho Power provided five executable contracts. The tottrel WindEnergy Center LLCs executed the agreements on December 13, 2010, and sent tpem to Idao Power, which executed the originals on December 15, 2010, and fied the contiacts for Commssion Iapproval on December 16,2010. On Febru 7, 2011, the Commission issued Order No. 32176, ~hereinit reduced the eligibilty cap to 100 kilowatts ("kw") for wind and solar QFs, and stated t1 effective date of the i order would be December 14,2010. Idaho Power informed the QFs on Februar 23,2011, that it i had incorrectly determined the QFs must proceed though the new transbission process, and I stated it would instead continue the process under Idao Power's OATT, ~hich is how the QFs i ¡ proposed proceeding all along. Because the Cotterel WindEnergy Ce,ter LLCs meet any i grandfathering test for entitlement to the published avoided cost rates, thl Commission should I COMMENTS OF ALPHA WIN LLC, BRAVO WI LLC, CHAIE WID LtC, DELTAWIND LLC, AND ECHO WI LLC i 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 contacts.2 LEGAL BACKGROUND A. The Publie ~tity Regu.latoiy Polieies Ad of 1978's Mandatoiy Purehase Provisions !¡, Ths case iivolves the Commission's implementation of the mandatory purchase obligation of PURf A, which requies electrc utilities to purchase power produced by cogenerators or sma¡1 power producers that obtan status as a QF. 16 U.S.C. § 824a-3(a)(2). Congress's intent "lias to encourage the promotion and development of renewable energy technologies as alteijatives to fossil fuels and the constction of new generating facilties by electrc utilities." Rpsebud Enterprises, Inc. v. Idaho Pub. Uti!. Commn., 128 Idao 609, 613, 917 P.2d 766, 780 d996). "Traditional electrc utilities were reluctat to purchase power from, i i and sell power to, ~e nontraditional facilties." FERC v. Mississippi, 456 U.S. 742, 750, 102 S.Ct. 2126, 2132-2IØ3 (1982). To overcome ths problem, "§ 210(a) (of PURPA) directs the i (Federal Energy Reguatory Commssion ("FERC")), in consultation with state reguatory¡ authorities, to prom~gate such rues as it determes necessar to encourage cogeneration and i ¡ small power produqtion, includig rues requig utilties to offer to sell electrcity to, and i purchae electrcity ~om, quaifyng cogeneration and small power production facilties." Id, 456 U.S. at 750-51, i02 S.Ct. at 2133. The price PURPA section 210(b) requies the utilties to pay to QFs in exchange for a i i 2 The CotterellWindEnergy Center LLCs note tht several paries to GNR-E-I0-04 have disputed whether tA effective date of Order No. 32176 could be retroactively effective on December 14, 2010.1 For puroses of these comments, the Cotterel WindEnergy Center LLCs will use December ~4, 2010, as the effective date, without conceding tht the Commission had the authority to make the reduction in the eligibilty cap retroactively effective. COMMNTS OF ALPHA WIN LLC, BRAVO WIND LLC, CHAIE WIND LLC, DELTA WID LLC, AN EtHO WIND LLC CASE NOS. IPC-E-l0-51, IPC-E-I0-52, IPC-E-10-53, IPC-E-I0-54, IPC-E-I0-55 PAGE 5 I i QF's electrcal output is termed the avoided cost rate, which is the cost to tle utilty of producing the energy itself or purchasing it from an alternative source. 16 U.S.C. § ~24a-3(b), (d). FERC , promulgated reguations requirig utilties to compensate QFs for the utilitles' full avoided cost. I18 C.F.R. § 292.304(a), (b); Small Power Production and Cogeneration f.acilties; Regulations i Implementing Section 210 of the Public Utilty Regulatory Policy Act oj 1978, 45 Fed. Reg. i i12,214, 12,222-12,223 (Feb. 25, 1980). The U.S. Supreme Cour direqtly affirmed FERC's , i "full-avoided-cost rue," American Paper Institute, Inc. v. FERC, 461 U~S. 402, 417-18, 103 S.Ct. 1921, 1930 (1983), and that rue is stil in effect today. FERC's reguations entitle QFs to long term contract rates set at thelutilties' ful avoided I costs at the time the QF commits itself to a legally enforceable obligation ~o deliver its project's output. 18 C.F.R. § 292.304(a), (b), (d)(2)(ii); JD Wind 1, LLC, "Order ~enyig 'Request for Rehearng, Reconsideration or Clarfication,'" 130 FERC , 61,127, , 23 I (Febru 19, 2010). IFurer, FERC's reguations require utilities to publish "stadad rates" atailable for long term i contracts available to QFs below a state-implemented maximum generatinK capacity. 18 C.F.R. , j§ 292.304(c)(I)-(3). The Idao Commssion requies utilities in Idao to ¡make the rates in the published rate schedule available to QFs tht generate less th 10 aMW. $ee U.S. Geothermal, i Inc. v. Idaho Power Company, Case No. IPC-E-04-8, Order No. 2963~, p. 14 (2004). On Februar 7,2011, however, the Commssion reduced the eligibilty cap to 1100 kw for wid and, solar QFs and stated the effective date of ths reduction would be Decembei 14,2010. See Order i No. 32176, atpp. 11-12. ! COMMENTS OF ALPHA WI LLC, BRAVO WIND LLC, CHAIE WIN LLC, DELTAWIND LLC, AND ECHO WID LLC I CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-1O-53, IPC-E-I0-54, IPC-a-1O-55 PAGE 6 i ¡i B. PURP A Gr~J1dfathering Criteria ¡ When the pu~lished rates chage, or become otherwse unavailable to a QF before the QF ca obta a con~ the QF is entitled to grandfathered rates if it can "demonstrate tht 'but for' the actions of (the lltilty, the QF) was otherwse entitled to a power purchase contract." Earth Power Resources, I1rc. v. Washington Water Power Company, Case No. WWP-E-96-6, Order i No. 27231 (1997) !cfidig utility delayed negotiations and therefore QF was entitled to grandfathered rate); fee also Blind Canyon Aquaranch v. Idaho Power Company, Case No. IPC- E-94-1, Order No. ~5802 (1994); Snow Mountain Pine v. Maudin, 84 Or. App. 590, 600, 734 P.2d 1366, 1371 (19~7). ¡ The most o*erous test the Commission has ever used for determng grandfather eligibilty is the pre-hled complait test. Ths test requies, prior to the effective date of the rate , chage, the QF mus~ have obtaed an executed contract, or have filed a meritorious complaint at the Commssion all~ging it is entitled to a contract. See A. W. Brown Co., Inc. v. Idaho Power Co., 121 Idaho 812, i 816-18,828 P.2d 841,845-47 (1992). The Idao Supreme Cour has never mandated ths test a$ the Commssion's only available way to test whether a QF had effected a legally enforceable ¡obligation, and the Commission ha not applied ths onerous pre-fied complaint test consi~tently. See, e.g., Blind Canyon Aquaranch, Order No. 25802; Earth Power Resources, Inc., Ord~r No. 27231. i COMMENTS OF ALPHA WIND LLC, BRAVO WI LLC, CHAIE WIND LLC, DELTA WIN LLC, AN ~CHO WIN LLC CASE NOS. IPC-E-tO-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-10-54, IPC-E-I0-55 PAGE 7 PROCEDURA AN FACTUAL BACKGROUN Å. Development Overvew Boise-based Windland Inc. began development of the wind i¡esource on Cotterel Mountain in 2001. Affdavit of Kevin Simmons, at ir 3. Windland and S~bii Wind Energy Inc. i ("SWE") entered into a Project Development Agreement in 2003 to Ijointly share in the ! development and costs associated with permittng a wid generating comp~ex of up to 200 MW , i in capacity. Id at ir 4. Although Windland retans a substatial financial i4terest in the project's i success, in 2008, SWE purchased the controlling interest in the project frJm Windland and has i been continuing the development, environmenta monitoring and marketig of the project. Id. at ir 5.I: ISince development began in 2001 the development parers have! performed extensive i wind data collection and analyses, constrctabilty reviews, an intensive Jmd a very expensive ,Envionmenta Impact Study required due to the project's location on ljd manged by the i i United States Bureau of Land Management, and other related project develppment activities. Id at ir 6. To date, the parners have invested approximately $7 millon. Id * ir 7. They curently possess all real propert rights and permits necessar to build the QF prpjects, as well as the necessar local zoning permits. Id at irir 9-15. ¡ IIn addition to a capital investment of close to $300 milion *quired to complete development of the QFs, the project will provide signficant local lPenefits in terms of constrction jobs (approximately 250) and full time jobs (approximately 1$), propert taxes and : other direct benefits for the local economy. Id at ir 8. COMMENTS OF ALPHA WIN LLC, BRAVO WI LLC, CHAIE -tIN LLC, DELTAWID LLC, AND ECHO WID LLC : !CASE NOS. IPC-E-I0-51 IPC-E-10-52 IPC-E-1O-53 IPC-E-1O-54 IPC-E-10-55, , , , i PAGE 8 . B. Discussions lvith Idaho Power prior to PURP A submittal ¡ Because the totterel Mountan wid resource area lies with the Idao Power's serce , ¡ terrtory and is ver ~ear the Idao Power transmission system, Windland began discussions with Idao Power in 200~. ld. at "20-21. In 2006, SWE bid the Cotterel Mountan Project into Idaho Power's RFP ¡seekig up to 150 MW of wind energy. ld. at' 22. Idaho Power did not select the Cottrel :tounta Project in that RFP, but Idaho Power subsequently solicited a i proposal from SWE to sell the development rights to Idaho Power. ld. at" 23-24. SWEi expended time and ~xpenses to submit a detaled proposal, but Idaho Power never responded to SWE's proposa. Id.1 at' 24-25. , SWE biddedlthe Cotterel Mounta Project into. Idaho Power's 2009 RFP, as a 150 MW project. ld. at' 26. i In late 2009, Idaho Power informed SWE that it had selected the Cotterel Mounta Wind projlct as a short-list bidder. ld. at' 27. After many month of negotiations, it appeared to SWE th~t the fial contract terms were settled in July 2010. ld. at' 28. But Idaho i Power subsequently irequested ver signficant additional concessions and ultimately terminated the negotiations and I closed the RFP in sumer 2010. ld. at' 29. At tht time, SWE was still i interested in continutg the negotiations to reach a fial agreement. ld. at' 30. Though the tears, Windland and SWE have been engaged in the interconnection process with Idaho Power's I interconnection and transmission personnel though Idaho Power's Large i Generator Interconnlction Process under its OATT. ld. at' 31. Idaho Power first completed an interconnection feas~bilty study on July 1, 2005, which indicated that up to 240 MW could be saely injected into tle local transmis~on system at cost acceptable to the development parers. ! COMMNTS OF A.PHA WIND LLC, BRAVO WIND LLC, CHAIE WIND LLC, DELTA WI LLC, AND l1CHO WI LLC CASE NOS. IPC-E-l0-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-1O-55 PAGE 9 Id at" 32-33. In October 2009, SWE re-activated the interconnection process with Idao Power for a project of a reduced size of 177 MW, and was told that because no new I generation had been ¡ proposed in the area since the original Feasibilty Study in 2005 Idaho I Power would move directly into the System Impact Study ("SIS") as Generator No. 302. Id. 4t, 34. Idaho Power i ¡ completed the SIS on March 15,2010, which concluded that the ful outputlof 177 MW could be i 1 successfully integrated into the Idao Power Transmission system at the polnt of interconnection without signficant modifications to the transmission system. Id at' 35.1 The Project entered into a Facilties Study Agreement on April 22, 2010. Id at' 36. In Julr 2010, Idaho Power contacted SWE regarding the Facilty Design Study and began to aran~ a series of calls to discuss constrction costs and schedules to meet a December 2012 online dlte. Id. at' 37. C. The Qualifing Facilties' Contracts Submittals In fall 2010, SWE developed five quaifyg facilties at the Co~erel Mountan Wind Complex. Id at' 38. Alpha Wind LLC, Bravo Wind LLC, Delta Wind LLC, and Echo Wind 1 LLC will each have an output of 29.9 MW, and Charlie Wind LLC will h~ve an output of 27.6 MW. Id at , 39. These QFs will each generate 10 megawatts or les~ when the output is ! averaged over any given month. Id The generation equipment of each i$ separated by at least i one mile at the closest points. Id In October 2010, the five projects wereleach self-certified asi quaifying facilties. Id at' 40. On October 28,2010, the Cotterel WindEnergy Center LLCs provi4ed Idaho Power with five standard PURPA contracts containig the non-Ieveli~ed rates in OrderiNo. 31025, executed i COMMENTS OF ALPHA WIND LLC, BRAVO WI LLC, CHAIE ~D LLC, DELTA WID LLC, AND ECHO WIN LLC CASE NOS. IPC-E-1O-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-I0-54, IPC-l1-1O-55 PAGE 10 by the Cotterel Win~nergy Center LLCs. Id. at ~ 41. These five contracts were mior images of the most recently! approved wind QF stadad contract at the tie (from Case No. IPC-E-09- i i 25), with the exceptin that the Cotterel WindEnergy Center LLCs' contracts contaed different project specifics, l~wer rates contaed in Order No. 31025, and a higher delay liquidate i i daages securty anount of $45 per kw consistent with the most recent QF contracts. Id at ~ 42 i and Exhbits 1 - 5.31 SWE provided a cover letter with each of the contracts indicating that the i QFs planed to use ia single point of interconnection and continue though the interconnection process already in ilogressunder Generator Interconnection Request No. 302. Id. at ~ 43 and Exhbits 1 - 5. SWE also cqntacted Idao Power transmission and interconnection personnel to inorm them of the reducedioverall output of the projects to 147 MW and a change in tubine. Id at ~ , 44. But on Novem~r 4, 2010, Idao Power sent letters of understading requirig that SWEi agree, prior to exeqution of the PURP A agreements, that SWE would proceed though new interconnection and I transmission processes. Id at ~ 45. Idao Power's proposed letters of ii understading requied a signtue agreeing to the new process with new milestones to be achieved before poiver purchase contracts execution, and included draft Network Resource Integration Study A~eements, and Transmission Capacity Application Questionnes for each QF. Id at ~ 46. i3 These Octoijr 28th contracts are attched as Exhbits 1-5 to the Affdavit of Kevin Simmons. In each o~ the individua cases, the Cotterel WindEnergy Center LLCs have attached only the Exhibit correspondi to the contract at issue in that case. For example, only the October 28th contratt submitt applicable to the Alpha Wind LLC project is filed with the Affdavit of Kevin Siirmons in Case No. IPC-E-I0-51. COMMNTS OF AlPlM,WID LLC, BRAVO WIN LLC, CHAIE WIND LLC, DELTA WIND LLC, AND ElCHO WI LLC CASE NOS. IPC-E-l0-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-1O-55 PAGE 11 i Then, on November 5, 2010, Idao Power, along with Avist ¡Utilities and Rocky Mountan Power, filed the Joint Motion to Reduce the Published Rate Elig~bilty Cap. See Case ¡ No. GNR-E-1O-04. The Cotterel WindEnergy Center LLCs each filed co~plaints agaist Idaho Power on November 8, 2010, alleging they were entitled to standard co$'acts and that Idaho IPower had insisted on an unecessar interconnection and transmissiqn process when the projects possessed rights acquired though Generator Interconnection RequJst No. 302. See Case Nos. IPC-E-I0-51, IPC-E-1O-52, IPC-E-10-53, IPC-E-1O-54, and lPC-E-1O-55. The Commission did not grant the imediate reduction in the published rate eligibilty cap requested i, by the Joint Utilties, and on November 19, 2010, Idaho Power and the Çotterel WindEnergy Center LLCs agreed to stay the complaint proceedig in order to execute stadard QF wid , contracts containing the published rates. Affdavit of Kevin Simmons, at'¡ 4~. On November 30, 2010, Idaho Power tendered a draf contract for each QF substatially I,similar to the QFs' drafs modeled on the IPC-E-09-25 contract and delivered on October 28, 2010. fd. at'¡ 50. Idao Power agai insisted in a letter dated December 7,2010, that the QFs agree to proceed though a different process for securng transmission tq Idaho Power's load ! ¡ center from that in the OATT under their existing Generator Interconnectlon No. 302. fd. at ir 51. Because Idaho Power insisted ths new process was a prerequisite ~ obtaning executed ii power sale contracts, the Cotterel WindEnergy Center LLCs had pr~viously signed and submitted the November 4,2010 letters of understadig, and now each ineUvidual QF submitted i the Transmission Capacity Application Questionnaire on December 9, 2010l fd. at ir 52. ¡ On Friday, December 10, 2010, Idao Power tendered five execu~ble contracts which COMMENTS OF ALPHA WI LLC, BRAVO WIN LLC, CHAIE ~D LLC, DELTAWIND LLC, AND ECHO WIND LLC ¡ CASE NOS. IPC-E-I0-51, IPC-E-10-52, IPC-E-1O-53, IPC-E-I0-54, IPC-E-I0-55 PAGE 12 were substatially $imilar to those submitted by the Cotterel WindEnergy Center LLCs on October 28,2010. Ip, at, 53. The Cotterel WindEnergy Center LLCs executed the agreements on December 13~ iOlO, and sent them to Idao Power, which executed the originas on December 15, 2010,¡and filed the contrcts for Commssion approval on December 16,2010. Id at, 54. i On Decemb~ 21,2010, Idaho Power's PURA contracts admnistration deparent sent ! letters to each of th1 QFs assertg that each project must sign a Network Resource Integration Study Agreement ard submit a deposit of $2,000 by Janua 3, 2011. Id at, 55. Idaho Power i stated ths was nece~sar under the new transmission process, outlined in its November 4,2010 letters of understa4ing~ and tht if the QFs did not submit the deposit and the agreement by Janua 3, 2011, th~ network transmission request would be withdrawn. Id at "56-57. The , letter provided for nio delay in ths requiement for the intervenig holidays. Id at, 57. The Cotterel WindEnergt Center LLCs signed the Network Resource Integration Study Agreements on December 30, 2Ql0, electronically mailed scaned copies to Idaho Power on December 31, 2010~ and sent the ~rigins by overnght delivery on that same day to ensure that they would arve on Monday, J~ua 3, 2011. Id at' 59. The QFs tranferred the $2,000 for each QF by wie transfer on JantF 3, 2011. Id at' 60. But on Febrt 22, 2011, Idaho Power refuded the $10,000 provided for the new transmission study ~rocess. Id at' 61. Idaho Power stated in a letter from its tranmission personnel on Feb~ 23, 2011, tht it approved SWE's chages from the origin Generatori Interconnection req~est of 177 MW to a smaler interconnection of only 148 MW for PURP A COMMNTS OF ALPHA WI LLC, BRAVO WID LLC, CHAIE WI LLC, DELTA WI LLC, AND EiCHO WID LLC CASE NOS. IPC-E-l0-51~ IPC-E-I0-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-I0-55 PAGE 13 projects, and would proceed with the same Generator No. 302 under ile Large Generation Interconnection Procedures of the OATT. Id at ir 62. Ths is the process $WE requested Idaho Power follow for the QFs when SWE fist submitted contracts on October 28, 2010, and the process each QF alleged it was entitled to follow in the Complaints filed o~ November 8, 2010. ! Id at ir 63. Idaho Power now apparently agrees that the Cotterel WindEne~gy Center LLCs may proceed though the interconnection process under the OATT. COMMNTS A. The Cotterel WindEnergy Center LLCs each satisfy the grandf~ther tests. There is no question that the Cotterel WindEnergy Center LLCs ea~h entitled themselves to long term contracts with rates set at the published avoided costs prior tl the reduction in the eligibilty cap, because each obligated itself to a legally enforceable ob~igation to deliver its project's output before December 14,2010. See 18 C.F.R. § 292.304(a), (hj, (d)(2)(ii). Each QF satisfies even the most strgent grandfather test ever usea by the Commission ì because each had a meritorious complait on file at the Commssion on Nqvember 8, 2010. See A. W Brown Co., Inc., 121 Idaho at 816-18, 828 P.2d at 845-47. Eacl~ project's complait alleged Idaho Power had unjustifiably refued to accept a binding offer tol enter into a stadard PURP A contract and unjustifiably required each QF to proceed though ~ new interconnection and transmission process, which would delay execution of contracts. See qompiaints, at irir 7,9, i 16, Case Nos. IPC-E-I0-51, IPC-E-I0-52, IPC-E-10-53, IPC-E-1O-54,1 IPC-E-I0-55. The ¡ allegations proved meritorious because Idaho Power agreed to execine stadad PUR A contracts. Indeed, each project had even executed Idao Power's final version of the FESAs on COMMENTS OF ALPHA WID LLC, BRAVO WIN LLC, CHAIE WIN LLC, DELTAWIND LLC, AND ECHO WIND LLC i CASE NOS. IPC-E-10-51, IPC-E-1O-52, IPC-E-I0-53, IPC-E-1O-54, IPC-E-10-55PAGE 14 . December 13, 201q. Afdait of Kevin Simmons, at ir 54. That Idao Power did not sign the agreements until D~cember 15, 2010 makes no difference because Idaho Power provided the :f FESAs itself pn December 10, 2010, and obviously had no remaing issues with the contrt ter. Id ~t ir 53. Furer, execution of fmal agreements by both paries was delayed by Idao Power's refsa to execute the FESAs (expressed in its letter dated November 4,2010) until afer the QFsi agreed to proceed though a different interconnection and trsmission i process, which I~ Power itself ha subsequently stated to be the incorrect process. Id at irir i 43~46, 51-52, 61-63J i Furer, the ~7 milion spent on developing the projects and the advanced stage of their matuty evidences their intent to obligate themselves to the FESAs. See In the Matter of Cassia i, Wind to Determine ~xemption Status, Cas No. IPC-E~05-35, Order No. 29954, pp. 2-4 (2006) i i (fmding wid QF erititled to grandfathered rates based on matuty of development of project when it had merely!supmittd a completed application for interconnection study, includig the applicable fee, an~ had performed wid studies, commenced preliminar perittg and licensing activities, Fd made efforts to secure sites to place tubines). Prior to the rate change date, the projects' m,siaging company had obtaned interconnection studies establishig the feasibilty to intercqect output in excess of that needed for the five QFs, Affdavit of Kevin Simmons, at ir 35, ~ad obtaned all necessar real propert rights, id at ir 9-19, and had negotiated varous ~pects of the project with Idaho Power for several years, id. at irir 20-54. Indeed, the Cotterel 1WindEnergy Center LLCs were matue enough tht their predecessor wid resource complex wls the fial bidder in Idaho Power's 2009 RFP. Id at irir 27-28. COMMNTS OF ~PHA WIND LLC, BRAVO WI LLC, CHAIE WI LLC, DELTA WIND LLC, AND aCHO WIN LLC CASE NOS. IPC-E~iO~51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-I0-55 PAGE 15 . i Finally, knowledge of the contract terms fuer evidences the int$t of the QFs in ths 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) (approvig Of grandfathered rates despite "the apparent lack of any written documentation . . . evidencing tha~ the terms of å power purchase agreement were materially complete (before the rate change)" in! par because the QF had "familarty with PUR A projects and the stadard terms of Idao PoWer's power purchase agreements"). Each of the Cotterel WindEnergy Center LLCs execut~d stadad PURP A agreements on October 28,2010, a month and a halfin advance of Decembtr 14,2010. Affdavit i of Kevin Simmons, at ~ 42 and Exhbits 1-5. The terms of those contracts differed minimally from those provided by Idaho Power on December 10,2010, which the QF~ signed on December 13,2010. B. The Contract terms and Idaho Power's most-current wind int~gration 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 its Application. . . is made with the specific reservation of rights and incorporation of the aveqnents set fort in the Joint Petition regarding the possible negative effects to the (sic) both the ut~lity and its customers of additional and unfettered PUR A QF generation on system reliabilty, ~tilty operations, and costs of incorporating and integrating such a large penetration level otPll A QF generation COMMENTS OF ALPHA WI LLC, BRAVO WIND LLC, CHARIE -WIND LLC, DELTAWIND LLC, AND ECHO WID LLC : CASE NOS. IPC-E-I0-51, IPC-E-1O-52, IPC-E-1O-53, IPC-E-I0-54, IPC-E-1O-55 PAGE 16 into the utility's system." Application, at p. 3.4 Because the terms of the FESAs in ths cae and the curent wid qitegration chage protects ratepayers, and because the projects obligated themselves prior to ~e effective date of the eligibilty cap reduction, the QFs submit that Idaho Power's conce s~ould not preclude Commssion approval of the contracts. First, the qoinssion should consider the system reliabilty and wind integration discussion in the INortwest and Intermountain Power Producers Coalition's ("NIPPC") Comments in GNR1f-l0-04. See NIPPC Opening Comments, Case No. GNR-E-I0-04, pp. 13- 16 (Dec. 22, 2010). In those Comments, NIPPC pointed out that, despite Idaho Power's sttements in the Jonit Motion regardig 1100 MW being near Idaho Power's minum loads, Idaho Power's own ~nd integration study concluded that even at 1200 MW of wid capacity on the Company's systfm, wid would reach only 80% of its loads and it would do so only for a few hours per year. lSee Enernex's Idaho Power 2007 Wind Study, Case No. IPC-E-07-03, p. 34 i (Febru 6, 2007). i The settlement tht resulted afer conclusion of that wind integration study made the avoided c~st rates avaiable to wind developers at a rate reduced by $6.50IMWh for projects coming onltne when Idao Power's cumulative wid power is "501 MWand above." See Order No. 3048~, at p. 8. There is no upper cap contaned in the order, and Idao Power ha not availed itself of! the opportty since to update its wid integration stdy. Furer, Idaho Power's wind integr~tion study did not consider the firg abilty of any of the Company's 744 4 Because Id~o Power's Applications in Case Nos. IPC-E-I0-51, IPC-E-1O-52, IPC-E-I0- 53, IPC-E-I0..S4, IPt-E-I0..55 are substatially the same, these Comments will refer to them interchangeably as tie the "Application." COMMNTS OF AtPHA WI LLC, BRAVO WI LLC, CHAIE WIN LLC, DELTA WID LLC, AND eCHO WI LLC CASE NOS. IPC-E-l0-51, IPC-E-10-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-I0-55 PAGE 17 i i MW of gas combustion tubine capacity that will be online by the time the potterel 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 thesl PURA agreements ¡ are lower than those in contracts and self-built projects recently approved for Idao Power. See NIPPC Reply Comments, Case No. GNR-E-I0-04, pp. 15-20 (Jan. 21, 201 q. Furher, the FESAs for each QF conta extensive protections for ratepayers which address the concerns raised by Idaho Power's application. Idao Power warants that thei Agreements comport with the terms and conditions of the varous Commis5:10n Orders applicable ! ito PURA agreements for a wind resource. See Application, at p. 4 (citiig Order Nos. 30415, 30488, 30738 and 31025). Accordig to those orders, the rate in the FjESA for each of the projects is reduced by the Idaho Power's wind integration chage. Order No. 30488, at pp. 8-9. The contracts also contain a Mechancal Availabilty Guaantee, which req,*res reduced payment i to the QF if its tubines are unavailable for inexcusable reasons. Id The ¡contracts require that the QF share in the costs of wid forecasting. Id. The FESAs also provid~ for a reduced rate at times of the day and months of the year when the energy is wort less tel Idaho Power due to demand and regional market conditions. See Order No. 30415. Each QF has selected December 31, 2014, as its Scheduled Operatitm Date, and sections 5.3.2 and 5.8.1 of each FE SA contans a liquidated damage and securty pr~vision of $45 per kw ! of nameplate capacity for failure to achieve that date. That will requi the 29.9-MW QFs (Alpha, Bravo, Delta, and Echo) to each post $1.345 millon, and the 27.6+MW QF (Chalie) to post $1.242 milion as delay default securty afer Commission approval ofthe contracts. COMMENTS OF ALPHA WIND LLC, BRAVO WIN LLC, CHAIE WIND LLC, DELTAWIND LLC, AND ECHO WIND LLC i CASE NOS. IPC-E-1O-51, IPC-E-1O-52, IPC-E-1O-53, IPC-E-I0-54, IPC-E-I0-55PAGE 18 . The QFs ha~e accepted the provisions in each Agreement and Idaho Power's approved Schedule 72 regardmg non-compensated curlment or disconnection of the QF for systm reliabilty puroses~ Ths provides Idaho . Power the right to exercise "non..compensated curlment" at time~ "when the generation being provided by the Facilty in certn operatig conditions exceeds qr approaches the minmum load. levels of (Idao Power's) system such that it may have a demienta effect upon (Idaho Power's) abilty to manage its thermal, hydro, and other resources in o¥er to meet its obligation to reliably serve loads on its system." Application at pp. 7-8. Thus, eyen if there were evidence that system reliabilty issues may evolve in the futue, the contracts ~low Idao Power to tae reasonable steps to ensure system integrty. CONCLUSION For the reao~ set fort above, Alpha Wind LLC, Bravo Wind LLC, Chalie Wind LLC, Delta Wind LLC, ~d Echo Wind LLC, respectfuly request that the Commssion approve the Firm Energy Sales Agrements with Idao Power for each of the five projects. Respectfly submi~d ths 17th day of March 2011, RICHASON & O'LEARY, PLLC t£~ Gregory M. Adams Attorneys for Alpha Wind LLC, Bravo Wind LLC, Charlie Wind LLC, Delta Wind LLC, and Echo Wind LLC COMMNTS OF AtPHA WIN LLC, BRAVO WIN LLC, CHAIE WIND LLC, DELTA WID LLC, AND ECHO WIND LLC CASE NOS. IPC-E-10-51, IPC-E-I0-52, IPC-E-I0-53, IPC-E-I0-54, IPC-E-I0-55 PAGE 19 i CERTIFICATE OF SERVICE I HEREBY CERTIFY tht on the 17th day of March, 2011, a tre an~ correct copy of the withn and foregoing ALPHA WIND LLC, BRAVO WID LLC, C~IE WID LLC, DELTA WI LLC, AN ECHO WI LLC and the AFFIDAVIT 0' KEVIN SIMMONS was served as shown to the following pares: Lisa Nordstrom Donovan Walker Idao Power Company POBox 70 Boise, Idaho 83707 dwalker((idahopower. coms Inordstromrgidahopower .com (x) U.S. Mai, Postage Prepaid ( ) Hand Delivered . ( ) Overnght Mail ( ) Facsimile ( ) Electronic Mail Randy Allphin Idaho Power Company PO Box 70 Boise, ID 83707 rallphincmidahopower.com (x) U.S. Mail, Postage Prepaid ( ) Hand Delivered ( ) Overnght Mail ( ) Facsimile ( ) Electronic Mail Si~edJAßL Adam COMMENTS OF ALPHA WID LLC, BRAVO WID LLC, CHAIE WIN LLC, DELTA WID 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 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: (208) 938-7901 Fax: (208) 938-7904 peter(ßxichardsonandolear.com greg;rgchardsonandolear.com ?I'f'Ll" ¡t 7 PM L' c-2i;? ;. d.. 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 TH MATTER OF THE ) CASE NO.IPC-E-I0-51 APPLICATION OF IDAHO POWER ) COMPANY FOR A DETERMINATION ) AFFIDAVIT OF KEVIN SIMMONS REGARING 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 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 CHARLIE WIND, LLC IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR A DETERMINATION AFFIDAVIT OF KEVIN SIMMONS PAGE 1 ) CASE NO.IPC-E-10-52 ) ) AFFIDAVIT OF KEVIN SIMMONS ) IN SUPPORT OF APPROVAL OF ) THE ENERGY SALES ) AGREEMENTS FOR BRAVO WIND, ) LLC ) ) CASE NO.IPC-E-I0-53 ) ) ) AFFIDAVIT 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 REGARING A FIRM ENERGY SALES AGREEMENT BETWEEN IDAHO POWER AND ECHO WID, LLC , ) IN SUPPORT OF APPROVAL OF ) THE ENERGY SALES ) AGREEMENTS FOR DELTA WIND, ) LLC ) ) CASE NO.IPC-E-IO-55 ) ) AFFIDAVIT OF KEVIN SIMMONS ) IN SUPPORT OF APPROVAL OF ) THE ENERGY SALES ) AGREEMENTS FOR ECHO WIND, ) LLC ) I, Kevin Simmons, do declare the followig and if called to testify, would and could competently testify thereto: 1. 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 e'Complex") was begun by Boise-based Windland Inc. in 2001. 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 f 200 megawatts ("MW") of wind generation at the Complex. 5. Although Windland retains a substatial 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 2001, the development parers have performed extensive wind data collection and analyses, constrctabilty reviews, an intensive and a very expensive full Environmental Impact Study puruant to the National Environmental Policy Act ("NEPA"), and other related development activities. 7. To date the parers have invested approximately $7 milion dollar in these matue wind development projects. 8. In addition to a capital investment of close to $300 milion required to complete development of the QFs, the project will provide signficant local benefits în terms of construction jobs (approximately 250) and full time jobs (approximately 18), property taxes and other diect benefits for the local economy. Real Propert Rights 9. The Cotterel Mountain wind resource area is aligned along the approximately 14- mile..long Cotterel Mountan ridgeline. All 5 of the Cotterel WindEnergy Center LLC QFs are located in ths wind resource area. 10. The associated transmission line rus north of the Complex for 19 miles to a location nort of the Minidoka substation where it wil tie into Idaho Power's 138 kilovolt ("kv") Minidoka-Adelaide transmission line. 11. 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 AFFIDA VIT OF KEVIN SIMMONS PAGE 3 l ("BLM") and Idaho State lands but also includes transmission easements that have been procured from four private landowners. 12. The BLM lands are secured puruant to a right-of-way (49-year lease) granted in August 2006. 13. The necessar lands managed by the State of Idaho are securd 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 conditiona 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. i 8. Minidoka County granted a Special Use Permit for a transmission and substation easement at the point of interconnection on the Idaho Power trsmission 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 Miler, AFFIDA VIT 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 proposa from the project in 2007, to sell the development rights to Idaho Power, and the parers expended time and expense to submit a detaled proposal. 25. Idaho Power never responded to the proposal to sell the development rights to the wind resource area. 26. SWE bidded the Cotterel Mountan 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 month of negotiations, and it appeared to SWE that the final contract terms were settled in July 2010. 29. Idaho Power subsequently requested very signficant 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 31. Windland and SWE have been engaged in the interconnection process with Idaho Power's interconnection and transmission personnel for years though Idaho Power's Large Generator Interconnection Process under its Open Access Transmission Tariff ("OA TT"). AFFIDAVIT OF KEVIN SIMMONS PAGE 5 32. Idaho Power assigned Generator Interconnection No. 302, and Idaho Power first completed an interconnection feasibilty study on July 1,2005. 33. The results of tht 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 Idao 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"). 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 signficant modifcations to the trasmission system. 36. The Proj.ect entered into a Facilties 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 Reg.uests 38. In fall 2010, SWE decided to exercise its rights under the mandatory purchase provisions of the Public Utilities Regulatory Policies Act of 1978 to sell the output under long- term contracts with Idaho Power. 39. SWE develope five projects for a cumulative output of less than it bid into the RFPs. Alpha Wind LLC, Bravo Wind LLC, Delta Wind LtC, and Echo Wind LLC wil each have an output of 29.9 megawatts C'"MW"), and Charlie Wind LLC wil have an output of 27.6 MW. These QFs are developed to each generate 10 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-certifed as qualifying facilties. 41. On October 28, 2010, the Cotterel WindEnergy Center LLCs provided Idaho Power with five stdard 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 stadard contrct 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 tre and correct copies of the October 28,2010 contrct submittals as Exhibits 1-5 to ths afdavit. 43. SWE provided a cover leter with each of the contracts submitted indicating that the QFs planed to use a single point of interconnection and continue though 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 tubine. 45. On November 4, 2010, Idao Power sent letters of understanding requiring that SWE agree, prior to execution of the PURP A agreements, that SWE would proceed through new interconnection and transmission processes. 46. Idaho Power's proposed letters of understading required a signatue 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 Utilties and Rocky Mountan Power, filed the Joint Motion to Reduce the Published Rate Eligibility Cap. 48. The Cotterel WindEnergy Center LLCs each filed complaints against Idaho Power on November 8, 2010, allegig they were entitled to standard contracts and that Idaho Power had insisted on an unecessar interconnection and trsmission process when the projects possessed rights acquired though Generator Interconnection Request No. 302. The Commission docketed the complaint cases as Case Nos. IPC-E-l 0-51, IPC-E-10-52, IPC-E-I0- 53, IPC-E-I0-54, andIPC-E-I0-55. 49. After the Commission did not grt the immediate reduction in the published rate eligibilty cap requested by the Joint Utilties, 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 ths 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 j 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 Commssion approval on December 16,2010. 55. On December 21, 2010, Idaho Power's PURPA contrcts 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. 56. Idao Power stated this was necessar under the new trsmission process, outlined in its November 4, 2010 letters of understanding, to study the abilty 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 withdrwn. 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 arive on Monday, Januar 3, 2011. 60. The QFs transferred the $2,000 for each QF by wire transfer on January 3, 2011. 61. Subsequently, on February 22, 2011, 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 Complaits filed on November 8, 2010. 64. I understand that this OATT process wil analyze Idaho Power's abilty to bring the output to native load and identify wheter any network upgrades are requied, and that Idaho Power now agrees with SWE's position tht the Cotterel WindEnergy Center QFs may proceed through the interconnection process under the OATT. AFFIDAVIT OF KEVIN SIMMONS PAGE 10 I I declare under penalty of perjur under the laws of the United States and under laws of the state of Texas that the foregoing is tre and correct. DATED this I ~ day of March 2011. By ¡LL.~~ ,~ Kevin Simmons AFFIDA VIT OF KEVIN SIMMONS PAGE 11 \ STATE OF TEXAS ) ) ss. COUNTYOF~) On ths \ 5th day of March 2011, before me, a Nota Public in and for the State of Texas, personaly appeared Kevin Simons, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed ths instrent and acknowledged it to be his free and volunta act and deed for the uses and puroses mentioned in the instrent. IN WITNESS WHEREOF, I have hereunto set my hand and offcial seal the day and year first above wrtten. , -.M~.. Cni,.... __ --""7. _n NOTARY PUBLIC for the State of Texas Residing at~,1ei My Commission expire 121 ii 111 AFFIDAVIT OF KEVIN SIMMONS PAGE 12 zan I . c3tl' ú .,. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-IO-54 DELTA WIND LLC AFFIDAVIT OF KEVIN SIMMONS EXHIBIT NO.1 SEE AFFIDAVIT OF KEVIN SIMMONS FILED IN CASE NO. IPC-E-IO-51 FOR EXHIBIT NO.1 4: 53 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-IO-54 DELTA 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 r-t: I' nu i ,. f"3i ¡ rri tl.j..... BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-IO-54 DELTA WINDLLC AFFIDAVIT OF KEVIN SIMMONS EXHIBIT NO.3 SEE AFFIDAVIT OF KEVIN SIMMONS FILED IN CASE NO. IPC-E-IO-53 FOR EXHIBIT NO.3 ll=53 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-10-54 DELTA WINDLLC AFFIDAVIT OF KEVIN SIMMONS EXHIBIT NO.4 OCTOBER 28, 2010 PURPA CONTRACT SUBMITTAL FOR DELTA WINDLLC ~?fu"' ..,.. ,~ t !¡: t3.i v.. October 28, 2010 Via Hand Delivery Randy Allphin PUR A Contracts Adinistrator Idao Power Company 12 i W. Idao Strt Boise, Idaho 83702 Re: Delta Wind LLC PUR A PPA Submittal Dear Mr. Allphin: I write on behalf of Delta Wind LLC to reuet tht Idah Power counter-sign the enclosed power pur agement (PPA) for Delta Wind LLC to sell th output of its wind engy facility to Idaho Pow as a quaify facilty (QF) under the Public Utilties Regulatory Policy Act of 1978 (pURA). Delta Win LtC intends for this submittl to fuly obligate itslf to the enclose $tndard PPA executed by Delta Wind LLC to operate as a QF under 10 averge monthly ingawatt (aM. I have also enclose the Fonn 556 Notice of Self Cerification as a QF filed yesterday by Delta Wind LLC with the Federal Ener Regulatory Comnsion. As you may be awar, Idaho Power has already enged in extensve negotiations l'egarding a larger, single project with Cotterl WindEnergy Center ttC at the wid site on Cotterel Mountain nea Burey, Idaho. Cotterl WindEnergy Center LLC is the parent compay of Delta Wind LtC, an as such is transferring to Delta Wind LLC the development rits necessa to perform under the enclosed PPA. Thus, Idao Power should be awar of this site and that it is mae and redy to be developed. The enclosed PUR A PPA contains the stada rates, tenus, and conditions approved by the Idao Public Utiities Coimnission (Commssion) for projects that wil deliver under 10 aMW. Those tenns inlude the rates in effct today (Order No. 31025) wih th daily and seasonality load shpe price adjustments (Order No. 30415), as well as the wi integation charg, mechanical avilabilty guar, and wind forecasting and cost shg provisions (Orer No. 30488). For consistency with Idaho Power's PPAs, the enclosed Delta Wind LLC PPA copied the teons and conditions frm the most recntly aproved PURPA wind PPA for a project under 10 aMW -" the Idaho Winds LLC PPA, which is on file at the Conuission in Case No. IPC-E-09"25. Other than the Delta Win LLC's design and site speifics, the only differece from th Idah Winds LLC PPA is that of the price and the amount of delay security. The price schedules in the enclosed PPA Mr. Allphi October 28, 2010 Page 2 ar derived frm the non-levelized rate schedule in Order No. 31025 (not Order No, 30744 as in the Idaho Winds LLC PPA). Additionally, the price scheules include a reducion of $6.501 MWh for the wind integration charge during an hour and all year. as we assume that Idao Power wil be using the $6.50IMWh charge at the relevant times per the wind integrtion chage calculaion foimula approved in Order No. 30488. Delta Wind LLC intends to obligate itself oruy to the appropriate rates utilzig that formula. Finally, Delta Wind LLC underss that Idao Power has begu requirig a delay security of $45/k, while th Idaho Winds LLC PPA executed a litte over a year ago utilized only a $20/kw delay securty. To avoid conflict, Delta Wind LLC intends to obligate itself to the $45/kw delay security, and has included that amount in th enlosePPA. Delta Win LLC wil be near four other PUR A QFs -- Alpha Wind LLC, Bravo Wind LLC, Charlie Wind LLC, and Echo Win LLC. Delta Wind LLC will have its own meter to report generation to Idaho Power, but each of the five QFs will interconnct to Idao Power's systm at the single point of interconnection with the four other QFs. Th point of inteconnection wil be th point studied under Lae Generator Request No. 302. That request secured trmission access for up to 177 MW of capacity for Cottrel WindEnergy Center LLC. Thus, there should be no issues with Idaho Power's abilty to accept and integrate the 147.2 MW of cumulative output of Delta Wind LLC and the four other nearby QFs. I look forward to hearin back from you at your ealiest convenience. v i7 truly yours,lfw~Dick Wiliams Preident Delta Wind LLC I. II. III. IV. V. VI. VI. VII. IX. X. XI. XII. XII.XI. XV. XVI. XVII.XV.XI. XX. XX. XXII. XXII.XX. XX.XX. XXII. xxrn.XX. FIR ENRGY SALES AGRE BETWEN IDAHO POWER COMPANY AN DELTA WI LLC TABLE OF CONTES mLEArcle Deons No Relian on Ida Power Warties Conditions to Accce of Enegy Ter an Options Dae Pu ánd Sale of Net Energy Puha Prce an Metd of Payment EnVÌnmenta Attbut FåCìlty an Interconnection Metg and TelemetRe OprationsInemcaon and Inurce Force Majeue Liabilty~ Decation Seer Obligations Waiver Chice of Laws an Venue Dispes an Defaut Goveren Authorition Coirssion Order Succesrs an Assign Modficaon Taxes Notces Addtional Tens and Conditions SeverbiltyCowites Enti Agrement Signtus Appex AAppdiB AppndiC AppedixD AppdiE -1 - 10/23/10 FI ENGY SALES AGREMENT (10 aM or Les) Prjec Name: Delta Win Pmec Prec Number: TIS AGRE, entere into on this _ da of 2010 ben DELTA WI LLC (Seller), an IDAHO POWE COMPAN, an Idao corpration (Idao Powe), here so refe to collecvely àS "Pares" or individualy as "Par." WHRES, Seller wi desig co own, mata and ope an elecc genon fality; an WHRES, Seer wi to sell, and Ida Power is will to purhas, fi elecc en pr by th Seller's Facity. THORE, In coideon of the mut cove and agents he se fort th Par ag as follows: ARTICLE I: DEFINITIONS As us in ths Agent and th apce athe hereo, the followig term shl have the followi mes: 1.1 ~~Avaübilty Shol'e" - Th curt month's Mid-e1uibia Maet Ener Cost mius thcutmont's Al Hour .&e :Pce spifed in pa 7 .3oÎ th Agent If ths èàii rets ina vaue les th 15.00 Miwh th reult sha be 15.00 Min~wh. 1.2 ..~ Days" - m~ an caen day th is not a Satuy, a Sunday, or a NERC te~ hølidåy. 1.3 "Calcu Net~A.unt" - A monty est, pred an documted af th fa bY 8el1, reewed an ac by th Buyer th is the caculated monthymaum engy - 2- 10/23110 delivee$(~ ii K.wh) f0 eå invidu wi tue, totaed f0r the Facilty to det th t0ta enei _ th Facüit cod have dever to Ida P0we dur thtmott ba upøn: (1) eah witu Näîlate Cåpty, (2) Suteient Pre Mover avaáble for us by ea wid tt dung the m0n (3) iacide of Force maeur, (4) scheed ni, or (5) inidents of F0t ()itl.ean le Lose and Staon Use. If th durtion of an event cliteri as ite 3, 4 or 5 abve (~ on ea indiVìdu occe an individua wid tuine) las for les than 15 inut~ 1Ì th ev will ootbecoii~ intbis cacuaton. The Seller sh collect and inta á. da t( ~itths .eacu1n an sh kee ths da for a mininui of 3 yea. 1.4 ~.on'" - Th Idao Public.. Utlities Commssin. i.5 ~~t¥ea' -- Th pe comiin eah caenda yea on th saecaenda dae as th Opon Da an en 364 days th. i.6 ~y1tim. ~" - Dages payable to Idao Powe as cacuated in pah 5.3, 5.4, 5.5 an 5.6. 1.7 "Dela Perod" - Al days pa th Sced Opraon Date until th Seller's Facilty achieves th Opon Da. 1.8 "DeyPrce" - Th cur month's Mid-Columbia Maet Energy Cost mius the curt month' s Alllou En Prce speified in pah 7.3 of ths Agrent. If ths cacuaton reults ìi a vaue le$ th 0, the ret of ths eaculaton will be O. 1.9 "I&ma Di Facilty - Ida Power's Syst Optins Grup, or any subsuent gr degnat by Ida Power. 1.10 ~~E:lveJ)te" -- th date st ìith opeg pargrh of ths Fin Energy Sales Agree re:t th da upn whch ths Fin En Saes Ageeent was fuy execute by both Pares. l.l l ~~FMl -- Th eleecgeition fality describe in Appnd Bof ths Agen 1; 12 "fim Engy Date" - th day commencìig at 00:01 hour, Mounta Tim, fölloWitl day tht Seller ha samed th reents 0f Arcle IV and th Seller begi deliver ener to Idao POWè$ sy at th Point of Deliver. - 3- 10/23110 1.13 "fgr Oue" -apaal or to ren of a) th Facit's caty to produc anor deliver Net En to th Poin of Deliver, or b) Ida Powe's abilty to accpt Net En at th Poin ofDevø fo noomc res, as a ret of Ida Power or Facilty: 1) equipmt falur whch wa no th re of neen or lak of prentave mace or 2) rendng to a tìMUiiss prvide curilme ord or 3) unlan prentave mate to re equipment th lef mi would re in faur of eqpmen prior to th plan ma peod 4) plam ma or conson of th Facilty or elecca lin re to se th Facty. Th Pa sh mae coaly rele efrt to pe th unlan prve matee du pe of low wi availaty. 1.14 "Hean Lo Hour" - Th daly hour being at 07:00 am, endig at 1 i:oo pm Mounta Time, (16 hour) excludin al hour on all Sun, New Yea Day, Memori Day, Fou of July, La Da, Thvi and Chrst. i. i 5 'inat En' - Electrc enrg Seller doe not intend to genra. Inverent engy is mor paly dèSribe in pah 7.5 of ths Agent. 1.16 "Jnon Faç" -Al eqpment spifed in Idao Power's Scheule 72. 1.17 "Intial Caty Deinaton" - Th pr by which Ida Powe con th unde noim or aver desgn condtins th Facity wi gener at no mor th 10 averge MW pe mon an is thor eligible to be pad th publishe ra in acrdce with Comssion Orer No. 29632. 1.18 "Light.Lq Holt" .. The day liour begig at 11:00 pm, en at 07:00am Mounta Tim (800)., plus al oth holt on al Sunys, New Yea Day, Memorial Day, Four of July, Lar Day, Thanksvi an Chrst. i .19 "Lt" .. th los of elecca ener expr in kiowátt hour (kWh) occut as á res ofth't$f()on an trĆĄSonor enrg beee the Meteng Point an the point the Faclity's ei. is deliver to the Ida Powe electrcaI syste. Th loss caculaton formul will be as spifed in ~_ B of ths Agen - 4- 10/23110 1.20 "Make En Refe Prce" - Eighty-five pe (85%) of the Mid-Columbia Market Engy Co. 1.21 "~Ili" -- A Default ~ap 19.2.1) subject to paph 19.2.2. i.22 "Mgmnmi Caty Amunt" - th maum caty (M of the Facilty wi be as spified in Ap B of ths Agent. 1.23 "M Availty" - th petae amoun caculat by Seller with 5 days af th en of eah month of the Facty's moy ac Net engy divide by th Facilty's Calcu Net En Am fo th aplicale month. Any da due as a result of th Seller faling short of th Meha Avality Guate for eah mont sha be dete in acrdce with pah 6.4.4. 1.24 ''M Avai Gua" sh be as defi in pah 6.4. 1.25 "Metg Equipmt" - All equipmt spified in Scule 72, th Agrent an any adtion eqpmt spified in Ap B reui to meaur, re and teet bi-dretiona powe flows frm th Seller's Facil at th Met Point. 1.26 "M~ Poi - Th physica point at whch th Meteg Eqpment is locte tht enbles ac meent of th Tes Ene an Net Energy delveres to Idao Powe at the Poin of Delier for ths Facilty tht prodes al necess da to adiniste th Agrt. 1.21"M~iimiibiMam: &e Cos" - Th inntly weigh avere of th dailyon..pe an off..pe Dow Jone Mid.c()lumbi Index (Dw Jones Mid.. Index) prces for no:f ener. If th Do Jon Mi..luibialnex prceisdisetiued by the rertg agency, bøth Pares will :mtty ag ~ a ~Iacen inex whch is simar to the I)w Jones Mid-Columbi Index. Th selecte relaet inx wi be const with oth simar agen an acomnonly us index by th elèCca in. 1.28 '~~tt" - Th mll-1oaelecca auatitiesasgn by th deign to a gêtem an its pt :movetar other piec of elecca equipment, suh as.tr:fet an ciruit br,.un. ~ c.øntions, expr in am, kiIQvo1t-ampe, kilowatt, volts or otappæpriatunts. Usulyinea on a naeplate atthed to the indvidua mahie or device. -5 - 1013110 i .29 "Net Em" - Al of the electrc: .~ pruc by the F3ßilty, les Station Use, less Lø, ex in kilowa oours (kWh) deliver to Ida Powe at the Point of ))li ver. Subjec to the te. of tis ~ Sell commits to delìver all Net Enrgy to Ida Powe at the Point of Delive for th fu te Qftb Agien. Net Endoe not.inlud Inverent Ene. 1.30 .~Da" - The day eøineninat 00:01 hour, Moun Time, føllowi th da th all reents of pah 5.2 háve be complet 1.31 "Poin ofDeliye" - Th location spfied in Appdi B, wher Idao Powe's and th Seners elecca facilties ar in an th ener frm ths Facilty is delivered to Ida Powe. 1.32 "Pt Elecçalrce" - Th prce, met an eqent th ar commony and ory us in eleca en and opeons to opete elecc equipmt lawfly, safly, dey, effcieny and ecnomicay. 1.33 ''S Qpon Da" - Th da spified in Ap B wh Seller anticipte achievi th Opon Da. In esli th da it is exp tht the Seller renaly de" iin ths da ba upn th be known inoron in regads to equien avaabilty an coon schees. i .34 nSce '72" - Ida Pow~s Tar No 101, Schede 72 or its suoerschees as apyed by the Conind$$on 'T Seßersh be rensible to pay aU cost of inteon an inteoii of ths F3ßUity into th Ida Power elecca system as spifed with Scule 72 an ths~ent 1.35 ~" - The th peodidentied in pa 6.2.1 of ths Agent. 1.36 "Spe Faces" - Addion or altetion of trsmion and/or distbuon lin an trfor as debe in Schee 72. 1.37 "Sta Use" - Elecc en th is us to ope equient th is auar or otherse rela to th prn of eleccit by the Facilty. - 6.. 1013110 1.38 "Sutept Pr Mover - me wi sp th is (l) equa to or grte th th geeron unt's mar-sfied minum levels re for the generion unt to pr energy an (2) equa to or less 1h the geneon unt's mauf-spfied maimum levels at which the geon unt ca saely pruc en. 1.39 "Sum1us En" - All Net En pruced by th Seller's Facity and deliver by the Fac to th Ida Powe elecca sy pror to th Option Dae. i .40 "Tota Co of th Fac - th tota co of st, equipment an apen. i.4 i "Wm4 En Pron Fore - A for of en delivees fr this Facilty provided by an ldabo Power adinist wi fog moL. Th Facity shal be reble fu an aloc poon of th to cos of the fore model as spifed in App E. ARTICLE U: NO RELIACE ON IDAHO POWE 2.1 Sel In Inveson - Seller war an rerets to Idao Power th in en in th Agt and the unerg by th Seller of the obligaton se fort herin, Seller ha ines an deed th it is cae of peorg heunde and ha not relied upn th adce, exence or expse of Idao Pow in connecon with th trcton contplat by th Agent 2.2 Se Iide Ex - Al prfesionas or exp inludi but not limited to, eo, atrney an acuntats, th Seller may have coulte or relied on in unerng th tlanon colat by ths Agrt have be solely those of Seller. ARTICLE II: WARS 3.1 No Wam by Id Powe - Any review, acce or faiur to reviw Seller's design spcaon eqpmen or failities shl not be an endorent or a confon by Idao Powe and Ida Power maes no waties, expr or imlied regarg any as of Sell's deig spficaon, eqpm or faites, includ but not lited to, sa, duilty, reliailty, st ca, ady or ecnomic feaibilty. .. 7- 1013110 3.2 Qpif Faclity St . Seller Wàts th th Facity is a '~ifyng Faclit," as tht te is us an deed in is CPR 292.201 et se. Af intial qualificaon Seller will tae suh stps as ma be re to mantan th Facity's Quifyg Faclity st du th te of ths Agr and Sell's faur to mantn Qug Facili st wil be a maal Breh of thAg ARTICLE N: CONPONS IQ AÇCEPANE OF ENGY 4.1 Pr to th Fir En Da an as a condon of Idao Power's actace of deliveres of en fr th Seller, Seller sh: 4.1.1 Submt prf to Ida Powe th al lice, pe or apvals ne for Seller's op have be ob from apicale fed, st or loc aurities, inlud bu not li to evde of coplian wi Sub B, 18 CFR 292.201 et se. as a Qu Facilit. 4.1.2 Opin of Çol - Submt to Ida Power an Opon Ler sign by an at admitted to pr an in goo st in th Stae of Idao prvidi an ()on th Seller's lice, pe an apval as se for in paph 4.1. i abve are legly an validly issue ar held in th na of th Seler an ba on a renale inepeden review, counl is of the opinon th Selle is in subs copli with sad pets as of the da of th Opinon Le. The Opin Le wil be in a for acle to Idao Power an will acwlede th th aty rede th opinon un th Ida Powe is relying on sad opon. Idao Powe's acep of th form will not be unnaly wild. Th Opinon Le will be govemed by an sl be inerpre in ac wi th lega opion acrd of the Amerca Bar Assoaton Secon of Bu Law (1991). 4.1.3 Ipti Caity :Qoo - Submt to Ida Power su da as Ida Power may rely reui to peor th Inti Caity Deeron. Such da will inlud but not be limte to Namla Caity, equipm spifcaons prie mover da re cha, no anor aver op desgn condons and Staon Use da Upon rept of th inor Ida Powe wi review th prvide da an if nees, re additina data to cote th Inal Cait Deon with a reble tie. - 8- 10123110 4.1.3.1 lfth Maxum Caty sped in Ap B of th Ag an th cumulatve mauf Namla Caacty rag of th individua generon unts at ths Facilty is le th 10 MW, th Sener sha subt deed mauf-spific, verfile da of the Namla Caty ra of th ac individu geeron unts to be ined at ths Facilty. Upon vecaon by Idah Powe th the data provide eslishes th combined naepla ra of th generti unts to be ined at th Facilty is les th 10 MW, it wi be de th the Seller ha saed the Ini Caity Deon for ths Facilty. 4.1.4 NaCaty - Subm to Ida Pow mauf's an enng doon th estli th Namlat Capacity of eah invidu geon unt tht is inlud within th enti Faclity. Upo recpt of ths da Ida Powe shl review th prvi da an de if the Namlac Caty spified is rele ba upon th mauftu's spfied geertion ra for th spific generaon unts. 4.1.5 Engi's Cecaon - Submt an execut En's Cercaon of Deign & Co Aduay and an En's Cercation of Opons and Maitena (O&M) Policy as debe in Commisson Orer no. 2169. Thes ceca wi be in th form spifed in Apx C bu may be moded to the ex nesa to regn th differ eneeg dipli prviding th cecat. 4.1.6 ln - Submt wr prf to Ida Power of al ince reui in Arcle xm. 4. i. 7 Intennon - Prvide wr conftion frm Ida Power's deliver busines unt th Sell ha safied al intennon requients. 4.1.8 Netor Reur Degnon an Tramission Sece Reue - 4.1.8.1 Ptvi all da reuied by the Idao Powe deliver bu un to enle th Seller's Facty to be desgn as a .nork reur. 4.1.8.2 Reve coon frm the Ida Power deliver buines unt tht the Sell's Facilty ha be deign as a netork resure. 4.1.8.3 Provide al da re for Ida Powe to sut a Trasson Sece Reque (TR) for th Sell's Facty. -9- 10/23/10 4. i .8.4 Reve con frm Ida Powe th the TSR ha be grte in sucient caity to mee or exce th Mamn Capity and th Seller ba pad all cost asiat with an reuime of th TSR 4. i.9 Writt A~ - Re an ob wrtt conftion frm Ida Pow th al cotions to ac of en hae be fufied. Suc wrtt confon shl be provide wi1mo a coialy ree time followig th Seller's reue an will not be unably withld by Ido Powe. ARTICLE v: TERM AN OPERATION DATE 5.1 Tei - Subje to the prvision ofpø 5.2 beow, this Agrent shal beme effve on th da fi wrtt an shal contiue in fu forc an effec for a pe of twen (20) Cont Yea frm th Option Da. 5.2 Op Pa - Th Op Date may ocur ony af th Facty ha achieved al of th followi: a) Achi th Fir Enrg Da. b) Commission apval of th Ag in a form acble to Ida Powe ha be reived e) Seller ha deat to Idao Powe's safacon th th Facli is complet an able to prvide ener in a cons relile an sae ma. d) Seller ha reue an Opon Da frm Ida Power in a wrtt form. e) Seller ha re wrtt confon frm Idao Powe of th Opon Date. Ths confon wi not be unnaly withld by Idao Powe. 5.3 Omw Pa Qela - Seller sha ca the Facil to aceve the Opon Da on or before th Scheed Opon Da. 5.3.1 If th Opon Da ocur af th Scheded Opon Dat but on or pror to 90 days pa th Scheuled Opon Dae, Seller shall pa Idao Powe Delay Liquida -10 - 10123/10 Da cacuat at th end of eah caenda mon af th Scheduled Opon Da asfol: Delay Liqudate Daes ar eq to ((cur month's Intial yea monthy Net En Amun as spifed in pa 6.2.1 divided by th numbe of days in the curt month) mUlpli by th numbe of days in th Delay Perod in the cut month) multiplied by th cur mont's Dela Prce. 5.3.2 If th Opon Da do not ocur with niet (90) days followi the Scheuled Opaton Da the Sell sh pay Idao Powe Dela Liquida Dages, in addition to th pr in pa 5.3.1, cacu as follows: For-five doll ($45) multiplied by the Maum Caity amoun with the Maximum Capity Amunt be meur in kW. 5.4 IfSeIl fais to aceve th Opon Dat wi nity (90) days af th Scheuled Opaton Da an Seller ha mad no commialy rele effor to develop ths Facilit, Ida Powe wi te this Agrt If the Seller is making commerially renale effor to devlop this Facilty, Idao Powe shl not tee th Agrent and adtiona Delay Daes beyond th calcul in 5.3.1 an 5.3.2 win be caate an payable monty usin th delay daage cacuat debe in 5.3.1 above for all da exceg 90 days pas the Scheul Opon Date mi su ti as the Selle achieves th Opaton Dae or un teinaton of ths Agt If Ida Powe de th th Seller is no longer ma coerialy ree effort to deelop th Facil Ida Powe sh tete ths Agrmen. 5.5 Seer sh pa Ida Powe any cacuated Delay Liquda Dames with 7 days of wh Ida Powe cacules an pr any Delay Liquda Daes billigs to the Seller. Seller's faur to pay th da withn th sped tie will be a Matal Breh of th Agrment and Ida Powe Ií drw fu fr the Delay Securty provide by th Seller in an amount equa to th ca Delay Liquida Daes. -11 - 10123110 5.6 Th paes ag th th daes Idao Power would incu due to delay in the Facity achiev th Op Date on or befor th Scheuled Opon Da would be dicult or imbl to prct with cety, an th th Delay Liquida Dames ar an apprat apprxiaton of such daes. 5.7 Witin th (30) days of th da of a Commssion Or as spified in Arcle XX apvig th Ag; Seler shl po liquid se ("Delay Securty) in a form as debe in Appe D equa to or exæe the amun ca in pa 5.7.1. Failur to po th Dela Sety in th ti spif abe wil be a Ma Breh of th Agr an Ida Powe may terminat th Agen 5.7.1 For-five dollar ($45) multipli by th Maum Cait Amou with the Maum Caty Amt be mea in kW. 5.1.L.1ln th even (a) Seller prvide Ida Power with ceficaon th (1) a ge inte agen spfYing a schee tht will enble ths Facty to acev th OpOn Da no la th th Scul Opon Da ha be complet an th Seller ha pad al re innnon co or (2) a geon inteonnon agen is substtialy complet an al ma co of inon have be idetied and agee up an (b) the Sell is in coli wî all tes an cond of th genon incoon agen the Delay Se ca in acrd wi pah 5.7.1 will be re by te pe (10%). 5.7. i.2 If th Seer ha reve a reucn in th caat Delay Secty as speifed in pa 5.7.1.1 an subsey (1) at Seller's reue the generon inonnecon agnt spfied in paaph 5.7.1.1 is rese an as a ret th Faclity will not achieve its Option Da by th Sced Opraon Da or (2) if the Seller does not maita complian with the generon in ag th fu amunt of th Delay Securty as caculte in pa 5.7.1 will be subjec to re an wil be du an owi with 15 Bus Da fr th da Ida Powe reue reen Faiur to tiely rete th Delay Seurty will be a Maer Breh of thsAgt -12 - 10/23110 5.72 Idah Powe sh relea any reing sety post he af al caculate Delay Liqui Damges ar pa in ful to Idaho Powe and the ealier of (1) 30 days afer th Opon Dae ha be achieve or (2) 30 days af th tetion of ths Agent. ARTICLE YJ: PURCHAE AN SALE OF NET ENRGY 6. i Dever an A~ of Net Eiçr - Exce when ei par's perm is ex as prvi he, Ida Powe will puha an Seller will sell an of th Net energy to Ida Powe at th Poin of Deliver. Al Inert Engy pr by the Faclit will also be delive by th Seller to Ida Powe at th Poin of Deliver. At no tie wi th tota amunt of Net Engy anor Inadve Ener pr by th Fac an deliver by th Seller to th Poin of Deliver exce the Maum Ca AmlJ 6.2 Ne Ep Amun - Ser inte to pruc and deliver Net Engy ii th foll mony axunts. Th amunts sh be cot with th Mecca Avalabilty Gute. 6.2.1 IPti Y. MQiithy Net En A:ts: Seasn 1 Month Marc April May kWH 7,06,00 6,498,00 6,959,520 seas 2 July Aug Nomber Dember 5,06,501 5,395,072 6,717,807 7,06,00 season 3 June septemberOctr January Feruary Total kWH's 6,514,010 5,50,039 6,972,148 7,053,252 6,3,00 65,208,097 -13 - 10123/10 6.3 Unles excu by an evt of For Majeu, Seller's faur to delive Net en in any Con ye in an amou equa to at lea te pet (10%) of th su of the Intial yea MontbyNet Eægy Amts as spifed in pah 6.2 sh coe an even of defult 6.4 Maè-jç; Avaabty Gu - Af th Option Date ha be eslishe th Faclity sh aceve a minimum monthy Mecca Avaablity of 85% for th Facilty for ea mo du th fu te oftb Agt (th "Mecca Avaity Gu"). Fai to acev th Mechaca Availabli Gute shl ret in Ida Powe cacug da as sp in pa 6.4.4. 6.4. l At th sa ti th Seller prvides th Monthy Power Pruction an Avabilty Re (App A), th Seller sh prvide an cefy the cation of th Facil's curt mo's Mebaca Avaiab. The Seer sh inde a su of all inoron us to ca th Caat Net ener amtm inudin but not limited to: (a) Forc Ou (b) Foro Maeu evts (c) wid sp an th impa of generon out an ( c) scheed maan an Ston Use inmiaton. 6.4.2 Th Seller shl maintan and re for the yea deled doumtion supg th motby caon of th Facty's Mehaca Avalabiity. 6.43 Ida Powe shal ha th right to revew an aut the doumon surt th caon of th Facit's Mechaical Avalabiit at renable ties at th Seller's offces. 6.4.4 If th cur moth's Mechaniea Avaiabity is less th th Mecca Availabty Gu, da shall be equa to; ((85 pe of the month's Cacuat Net Engy Amount) mius the mo's ac ne ener delier) mulplied by th Avaiilty shortall Prce. 6.4.5 Any da caculat in paph 6.4.4 wil be offse agt th cut moth's en paymen If an und ba res afer the das are offt agai the en payment, th Seller sh pay in ful the remning baance with 30 days of the date of the invoice. -14 - 101210 ARTICLE VI: PWCHAE PRICE AN MEOD OF PA~ 7.1 Hmn Lo Pu Pr - For al Net ener reved du Hea Lo Hou, Ida Powe wi pay th no-leli en pnce in acrd with Commssion Orer 3 i 025, 30738 and adjus in aci: with Commss Orer 30415 for Heavy Load Hour en deliveres an adus in acrdce wi Comissn Or 3048 for th wi integon chae and with sezaion fa applied: He LOE Pu Pr se 1" (73.50) Yea Mi 2011 40.02 2012 42.76 2013 45.36 2014 48.16 2015 51.16 2016 52.89 2017 54.59 2018 56.43 2019 58.25 202 60.12 2021 62.34 202 64.65 2023 67.05 204 69.55 2025 72.14 2026 74.35 2027 76.62 208 78.96 209 81.38 2030 83.87 2031 87.22 20 90.15 2033 93.19 203 96.34 8e2- (120.00) Mils 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 Se 3- (100.00%) MIIsWh 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.n 113.06 116.45 121.01 125.00 129.13 133.41 ..15 - 10123110 7.2 Li Lo fm Prce - For al Net En reved dur Ligh Lo Hour Ida Powe wi pa th non-levelied en prce in tWrd with Commsson Or 31025, 30738 and ad in ac with Commission Or 30415 for Light Load Hour Energy deliver~ and adjus in ac with Commsson Or 30488 fo the wi inon cha an with selizaion fars aplied: Liht Lo Pur Pri Yea 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 201 202 203 204 205 202 2027 2028 20920 20120 203320 Se 1- (1.50) Se 2- (120.00) Mi 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 MBIs 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 Se 3- (100.00) Mi 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 -16 - 10/23110 7.3 Al Hou En Pr - The pr to be use in th caon of th Surlus Energ Prce an Dela Prce shll be th non-Ievti en prce in acrd with coon Or 3 i 025, 30738 an adjus in acrd with coon Or 3048 for th wid intion ch an wi senaizon fars aplied: AJ Hour Py Pr Yea 2011 2012 2013 2014 2015 2016 2017 2018 2019 200 2021 202 20320 20520 2027 208 202 2030 20.31 203 2033 2034 sen 1- (73.50) MiJl 37.64 40.38 42.98 45.78 48.78 SO.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 $e2- (120.00%) Mftls 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 se 3- (100.00) Mi 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 93.73 97.26 100.25 103.35 106.53 109.82 113.21 117.77 121.76 125.89 130.17 -17 - 10123110 7.4 Sum En Pi - For al Suilus Enegy, Ida Powe shal pay to th Seller th cut mo's Maet En Refer Pr or th All hour En Prce spifed in pa 7.3, whve is lowe. 7.5 Inveen En - 7.5.1 Iner En is electc energy pr by th Fac, exre in kWh, which th Seler deer to Id Powe at th Point of Deliver th excees i 0,00 kW multiplìed by the hour in th spifc month in which th eny wa delive. (For exale Janua conta 744 ho. 744 ho ti 10,00 leW = 7,44,00 kWh En deliver in Janua in exce of 7,44,00 kWh in ths exple would be Inerent En.) 7.52 Althugh Seer inte to deign an op th Facty to gen no more th 10 ave MW an tlfo do not inte to gener Invertt En, Ida Powe wi ac Inver Engy tht doe not exce th Mamn Caity Amout bu will not purha or pay for Inver En. 1.6 Pay. DJ Dä - En paym~ less the Wind En Prucon Forg Monthy Cos AUoeon (MeA) debe in App E an an oth paymnt due Idao Power, wi be di to th Seer withn 30 days of th da whch Ida Powe reves and ac the doon of th montly Mec.hca Avaable Guee and the Net En acly delivered to Ida Pow as spified in Appdi A. 7.7 Couing l~ of th Commssion - Ths Agent is a sp cont and, as suh, th ra tein an coditins co in th Agrt wi be cons in acordance with ~ Powe ~ v. Ig Puli Utities Common an Af En, In.. I07Ida 781, 693 P .2d 427 (198), 1* power Coiiy v. IslaM Pulic Utiti Comjssn, 107 Ida i 122,695 P.2d 1 261 (1985), AfBn In. v. Id Powe Cony, ii 1 Ida 925, 729 P2d 400 (1986), Seon 210 of th Puc Uti Re Policies Act of 1978 and 18 CPR §292.303-308. ARTI Vil: ENONMAL ATTUT 8.1 Ida Powe wave any cla to ownhip of Ennmenta Attbu. Envienta Attbu inlud, bu ar no limte to, Gr Tag, Grn Cerficates, Rewale Ener Cr -18 - 10/23110 (RCs) an Traable Renble Cetica (TCs) diy asso wi the prodon of en fr th Seller's Fac. ARTICLE IX: FACILIT AN INCONNON 9.1 Dem ofFac - Sell wi ~ co in, own ope an matan th Facty an any Sell-own ~ Fac so as to alow sa an reble geeron an delive of Net En an Iner En to th Idao Powe Poin of Deliver for the fu te of thAgt 9.2 ~9J Façlm - Ext as spy prode for in this Agent, th reui Ineeon Facities wi be in acce with Scedule 72, the Geraon Interection Pr an Ap B. Th Seller is reble for al co asated with th equipment as sp in Sd 72 an th Gen Inmion Pr inhiditg bu no limite to intial co ~ by rdahopow fur eqpm co, in co and ongin montly Ida Poweop an ma ex. ARTILE X: METE AN mWME 10.1 Me - lda Powe shL fo th acun ofSeUe, prvi in and ~ Metng an Tele .Et to be loc ata muy ag upn locon to rec an me powe :t te Id Powe in a£ witl ths Ag an Sc 72. Th Met Eqpmen wi be at th locon an th ty re to mea, re and re the Facity's net Enegy, Sta ~ In en and maum en deveres (kW) at the Poit of Deliver in a me to prvide ldaPÐwe ade engy met da to adinist th Ag an to ìn th Fàeilty's en pron into th Ida Powe elca syst. 10.2 Tel - Idao Powe wi in op an mata at Sele's expe meteg, cocans an teem eqpm whch will be cable of prvidi Idao Power with coti in tele of Sell's Net Ener and Invert Ener pruc and deii to th Idaho Powe Poi of Deliver to Ida Powe's De Dih Facilty. -19 - 1013110 ARTICLE XI - REORDS 11.1 Mlt!ofRe - Seller shall maintn at th Facty or such other lon muty ao to th Paes ad to genon Net Engy) Ston Use, Iner En an ma geon (lW) re in a form an cont remmen by Ida Powe. 11.2 I~oti - Eit Par, af rele noce to the oth pa. shl have the right, dur no bune hour, to in an aut any or aU geon, Net En, Staon Use Ii en an maum geon (lW) re pe to th Seller's Facilty. ARTICLE XI: OPERTIONS 12. i Coai - Idaho Pow an th Seller sh mant apate opatng cocaons tb Ida Powe's Degnte Disp Faclity in acrd with Apdi A of ths Agt 12.2 ij Acce - 12.2.1 Ida Powu shl be excu frm acceg an payig for Net Enegy or ac Inernt En whch would have ot be pr by th Facty an delive by the Seer to th Po of Delive, if it is prented frm doin so by an evt of Forc maeu, Fored Ou or tera dionon of th Faclity in acrd wi Schee 72. If for rens ot th an ev of For maje or a Forc Ou, a temra dion unde Schule 72 exce Twe (20) days, bennig wi th twty-fi day of suc inteon, curt or teo! Seller wi be deeed to be deliver Net Enegy at a ra eqva to th pr ra daly ave oftl amun sp for th aplicale month in pah 6.2. Ida Pow wi noti Sell wh th iiteon, cu or reuc is te. 12.2.2 If, in th rele opon ofIda Powe, Seller's Qjon of th Facty or Inon Facilti is un or may ot adverly aft Ida Power's equipmt, pe or sece to its cumer, Ida Power ma temray discnnec th Facty frm Ida Pos trsmdistribuon sys as spifed wi Scheule 72 or tae suh otr reasle st as Ida po des ap. -20- 10123/10 12.2.3 Und no ci wi th Sell delier Net Enrg anor Invert En frm th Facilty to th Poit of Deliver in an amoun th exce th Maui Capity Amou at an mom in ti. Seller's faur to limi devees to th ma Ca Amou will be a Maal Brh of th AgL 12.3 Sch Maipt - On or before Janua 31 of eah cada yea, Seer sha sut a wr pr mainte scheule of significat Facty mante for th caen yea an Ida Powe an Sele sb mut ag as to the actality of the pro schee. The Pares deuiin as to th acty of the Seller's tietle for scheuled matean wi tae into coderon Pn Elca Prce, Ida Pow syst reuien an th Seller's pr sce. Neith Par shl unnably wild ac of th prse mai schee. 12.4 Mi11 Co - Th Seer an Idao Power ~ to th ex prca, cord their reve line an Facility ma schedule suh tht thy oc siultausly. 125 CgPror to CnJipt - Ida Power wi mae a ree atpt to cota th Seller pror to exinit rights to in th inonon or cu delivees fr th Seller's Facty. Seer ~ th in th ca of emy cirum, re ti opeons of th elec sy anor unpla event Ida Power may not be able to provide ootice to th Seller pror to inon cuent, or re of elecca en&y deliveries to Ida Power. ARnCLE XI: INEMACTION AN INURCE 13. i Infjon - Ea Par sh ag to hold haes and to inmn th other Par, its ofce agts afia, sudiaries pa copay and employee agains all los, da, exp an lity to th pens for iiui to or de of pen or injur to prop, prximly ca by th inif pa's co owp, opon or mai of: or by faur of, any suh pa's work or faliti us in coecon with th Agrt. Th inemnifyg Par sh, on th ot Par's reue defed any sut as a cla cover by ths inemity. Th indefy Par shall pay al doum costs, includ renable at fee th ma be in by th oth Par in ening ths inemty. -21- 1013110 13.2 In - du th te of th Agrt, Sell sh se an contiuously ca th followi inurce covera: 13.2.1 Comehenive Ge Liait In for both boly injur an prope da with limts equa to $1,00,00, ea oce, combi sin limit. 13.2.2 Th abve ine cover sh be plac with an in coany with an A. M. Be Coy rati of A- or be an sh include: (a) An enrst na Idao Powe as an adtiona in an los payee as applcae, an (b) A prvision sting th suh policy shl not be caled or the lits of liabili reuc with sixt (60) days' pror wrtt notce to Ida Powe. 13.3 8. to Pryi Cerca of,I - As reui in pa 4.1.6 he an anly th, Sell sh fash lda Powe a ceca of in, toer with the enen re th evdecin th coer as se fort abve. 13.4Se to Not lga Pow efLo of Coyee - If th ince covere reuied by pa 13.2 shl lap fo any re Seller wi imatly noti Id Powe in wrting. The no wi ad Ida Powe of th spifc re for th lap and th st Seer is ta to re th cover. Faiur to provi th notce an to extiously rein or relac th covere wil cons a Ma Bre of ths Agrt. ARTICLE XI: FORCE MAIJ 14.1 As us in ths Agrt, "Forc Majeu" or "an even of For Maje" me any cause beond th QO1rl of th Seller or of Ida Powe whch despte th exerse of due digence, such pa is unle to prent or overe. Forc Majeur inludes, but is not limte to, ac of Go fi, fl st, wa li civi ste, stes an other lab distce eaua, fi lighng ep sabo, or cha in law or reguaton occu af the Effecve Da, whch, by th exerse of du dige, it sha be unable to overe. If eith pa is redeed wholly or in -22- 10123/10 pa unable to pem its obligaons un ths Agent be of an even afForce Majeur, bo Pa shD be excus fr whever pe is afec by th event of For Maeur, prvide th: (1) Th nopeoning Par shl, as so as is rely poble af th occu of th For majeu~ give th oth Par wrtt notice descbi the pacular of th ocur. (2) The sun of peor sh be of no grte scpe an of no loner dur th is reui by th eve of Forc Majeu. (3) No obtga of ei Par whch ar before th ocur causin the suon of peorm an whch could an should have be fuy peorm befor suh oe sh be excu asa reult of suh occe. ARTICL XV: LIAILITY; DEDICATON 15.1 Noting in this Agrt sh be cons to cr any dut to, any stda of ca with re to, or any lity to any pen not a Par to ths Agrent. No undeg by one pa to th oter UD any prsi of ths Agrt shl coii the dedcan of tht Par's syem or an pon thf to th oth Par or to th public or afec th st of Idaho Powe as an in pulic utty corpon or Seer as an inde invidual or entity. ARTICLE XV: SEVE OBLIGANS 16.1 Ex wh spcay st in th Agr to be oter, th dutes, obligaon an liab of th Pares ar inte to be sever an not join or collece. Nothin cont in ths Ag shaU ever be co to cr an ason ti paerp or joint vene or imse a tr or pa dut, obgaon or libilty on or with rega to eithr Par. Ea pa sh be invily an severly liae for its own obligatons unde th Agen. -23- 10123110 ARTIC;Y XV: WAIR 17.1 An waver at antime by ei pa ofit rights with re to a deft uner ths Ag or wi re to an ot ma arsin in conon with ths Ag shl not be de a wave with re to any suse defat or other ma. ARTICLE XV: CHOICE OF LAWS AN VE 18.1 Ths Agr sh be cost an intei in acrd with the laws of the Sta of Id withut referce to its chice of law prvisions. 18.2 Ven for any litigaon arsin out of or relate to ths Agrt will lie in th Distct cour of th Fou Jud Distct of Idao in an for th Comty of Ada ARUCLE XI: DISPUT AN DEFAULT 19.1 Di - Al disp relat to or ar uner th Agent, inud bu not limite to, th inet of th te an condion of ths Agrent, will be su to the Commssion for reluton 19.2 NQtce ofDeult- 19.2. i Defats If eith Par fals to peorm any of the tenn or codition of ths Agrt (an ~evt of default'), th non-dau Par sh case notice in wrtig to be given to th deti Par, sp th maner in whch suh defat oc. Iftl defati Pa sh fail to cu su default wi th si (60) days af sece of suh notice or if the deting Pa rey deon to th ot Par th th defult ca be cur with a coerialy ree ti but no wi suh si (60) day peod an th fai to digeny puue suh cu, th th no-dfaul pa may, at its opon, te ths Agrent and/or pue its lega or eqtale rees 19.2.2 Ma Bre - The noce an cur provisions in pah 19.2.1 do not aply to dets ii in ths Agen as Mat Brehe. Maal Brees mus be cur as extioo as possble followi occe of th br. -24- 1013110 19.3 Se for Peor - Pror to th Opon Da and thre for th fu te of ths Ag Se wi prvide Ida Powe with the followi: 19.3.1 In - Evidee of colian wi th prvision of pa 13.2. If Seller fas to coly, su faur wi be a ma Bre and may only be cu by Seler sulyi evdece th th reui in co'Ver ha be reac or reinte; 19.3.2 Engi's Ceçaon - Ever th (3) yea af th Opon Dae, Seller wi suly Ida Pow with a Cecaon of Onoin Opons an Ma (O&M frm a Re Prfeson En lice in th Sta of Idao, whch Cercaton of Ongoing O&M sb be in th for spfied in Ap C. Seller's faur to suly the re ceca will be an evt of defat. Such a default may only be cu by Seller prviding th reui certfica; and 19.3.3 Lice ap Per - Du th fu ter of th Agrent, Seller sha mata co wi al pe an li deõe in pa 4.1.1 of ths Ageeen In adtion, Sell wi suy Ida Powe wi coes of any ne or addion permts or lice. At leat eve fift Con Yea, Seler wil up the doumtaon debe in pah 4.1. i. If at any tie Sele fas to mata copli wi th pets an lice debe in pa 4. i. i or to prvide th doenon reui by th pa suh faur wi be an evt of default an may ony be Cl by Seller suttg to Idao Powe evde of complice frm th pettg ageny. ARTILE XX GOVERNAL AYllORIZATION 20.1 Th Agent is subect to th jursdction of thos gover ages ha contrl ove eith Par of ths Agent. ARTICLE XX: COMMSION ORDER 2 i. i Th Ag shall be fiy effecve upn the Commion's apval of all tes and prvi hef wi ch or condtion an deon tht al paymen to be made to Seller he man be alowe as prnty inured ex for ra pur. ARTICLE xx: SUCCESSORS AND ASSIGNS -25- 10/23110 22.1 Ths Ag an all of th te and prvi hef sh be bindi up an inur to th befit of th retive surs and as of the Pares he, excet th no ast heref by ei Par sh beme efve wiut the wr const of both Pares beg fi obt. Such const sh no be un withld. Notwthdig th foregoing, any pa whch Ida Pow ma COiidate, or into whch it may me, or to whh it may convey or trfer suly al of its èledc utility as, shn aucaly, withut fu ac an withut ne of const or apova by th Seer~ su to al ofIda Powe's righ, obligaon an inte un th Agt Th arle shall not pievent a fi entity wi re or seur righ frm exersig al righ an rees avalale to it unde la or cotr. Idao Powe shall have th right to be not by the fici enty th is exerisi Sù rits or remedes. ARTICLE XXII: MODIFICATION 23.1 No moon to ths Ag shal be vad un it is wr an sign by both Pares an sutly aproved by th Commision. AR XX: TAX 24.1 Ea pa shl pay befo delinquecy all taes an ot gover chaes whch if fale to be pad wh due, cod ret in a lien upo th Faclity or th Internnecon Faces. ARTICLE XX: NOTICES 25. i Al wr noce un th Agen sh be died as follow an sh be conside dèver wh fa e-ma an cofirm with desit in th U.S. Mai fi-clas, poe prep~ asfoUows: - 26- 10123110 ToSeUer:Delta Win LLC Aton Opaton Maner C/O Co WmdEgy Cente LLC150 N. Da~ Buidi C~ Sui 3560Ho~TXn079 Ph: 832-337-2555Eml: gig.~U.com Qrgi dpen to:To Id Powe Vic Pr Powe SuplyIda Pow Coy PO Boir 10 Bo~ Idao 83701 Emai: jimmiJcmiagpower.com Çgy of do to: Co an Sm Powe PronIda Pow Coy POBox 70 Bois Ida 83707 Èmal: mJP1o(jpowe.com Ei Par ma c:ge th co peson anor ad inrmaton list above, by prvidig wntt no fr an aut ~ repesti th Par. -27 - 1013110 ARTICL XX: ADDmONAL TE AN CONDmQNS 26.1 Th Ag inlud th follwi apces, whch ar athe he and inlud by refer:ApA -AppB -ApC -ApD -ApE - Monthy Powe Prucon an Availabity Rert Facty an Poin of DeliverEng's Ceron For of Liqud SectyWin En Prucon For ARTI XX: SEVEJLIT 27.1 Th inwldity or un of an te or prvi of th Ag sh not afec th vaidity or ~orll of any te or prvision an ths Agr shl be co in all other re as if th invad or unorble te or prvion wer omitt. ARTICLE x:: CORPARTS 28.1 Th Ag may be execut in tw or mor co~ eah of whch sh be ~ an orgi bu al of whch to shl cotu one an th sa inent ARTICLE XX: ENT AGREEM 29.1 Ths Agt cotu th en Agren of th Pares co th suec ma hef an su aU pr or cotemp ora or wrtt ag be th Par CO Ding th suec mater hef. -28- 10123110 IN WIES WHF, Th Paes.h have ca th Ag to be exec intl æsve Da on th da se fo belo Ida Powe Çny By DaB. MiSr. Vice Pl' Deliv Da "Ida Powe' DêWmd .I. ByJ.flA ' Dick Vilfot;Da -29- 10i10 APPENIX A A-I MONT Y POWE PRODUCTION AN AVAILABILIT REPORT At 1h en of eah month th followi reui docention will be submtt to: Ida Powe Compay Att: Còon and Sma Power Pruction PO Box 70 Boise, Ida 83707 Th me regs reui on this rert will be the re on th Ida Power Met Equipment me th Faci1's to en pron deliver to Ida Powe and Station Usae and the maum ge en (kW) as rerd on th Meeg Equipment and/or any oth reui eny ~ents to adly adnist ths Agr Th dot shl be th documt to enle Id Pow to be th en paymt cacuon and payment pr. Th met reings on th re shll not be us to calat the ac payment, bu in will be a chek of the au me reg inrmon th wi be ga as denbe in ite A-2 below: Th re sh also inlud th Se's caculaton of th Mechanca Availabilty. -30- 10/23/10 ldao Power Compan CogeraÖØ an Sma Power Pruc MOTHLY POWE PRODUCTON AN AVAlIL REPORT Prje Nam: Month Prec Numbe: Yea Ad City Phne NumbeSt_ Zi Me"V GgNet FaclityQn Staon~Ston~Met Numbe En ofMOD kWh Met Rea: Begiumg of Mon kWh Met Diffce: Tim Met Cot kWh fo th Mon: Met De: kW Ne Ge Mecica AYJty Qm Sell Cacul Meca Avaabli As spfi in ths Agent, th Sell sh inlud with ths monthy rert a sum stt of th Mecea Avaabty of ths Facilty for th caen mont. Ths su shl inlud de as to how th Selle cacuat ths vaue an su of the Facilty data us in th cacu. Ida Powe and th Seller sh wor toge to mutly deelop a sum repo th prvi th reui da Ida Power rees th right to reew th de da us in ths caCllaon as alowed within th Agt. Signature Da - 31- 10/23110 A-2 AUTOMATED METE REING COLLECTON PROCESS Mon, Ido Povv wi us th prvi Metri an Telem equipm an pro to coll th me re inormon frm th Ida Power prvide Metng Equipmt th me th Net Engy an engy deliver to suly Stan Use for th Facilit re at 12:00 AM (Mdnght) of th la da of th mo. Tl ~ iaQn coll wil inlud bu no be lî to en pron Sta Use, th mainam ge poer (kW) an any ot reui enrg meurts to adly adst ths Agt. A-3 ROUT REPORTIG Id pgw Conta it Day En Pt Re Ca daily by 10 a., 1-80356-328 or 1-80035-109 an lee th follwi inorm: · Prec Ideon - Prjec Nam an Prec Num· Cut Met Rea · Esma Geeiatn for th curt day· Es Gen for th ne day ~. YimlimIM Pmec outes001-10-1319 an leve th follwig inormtion: · Prec ldetion - Projec Name and Projec Numbe· Apxima tie oue oc £s day an ti of prec co ba on Se's Co IDormoo 2+Bs Prjec Opo;g Co Nam: Telhone Numbe: Cell Ph: Pm Oite Co¡i !ion Telep Numbe - 32- 10123110 APPENB FACIUTY AND POIN OF DELIVRY PROJECT NO. Delt Win LLC B-1 DESCION OF FACILIT (Mt i1 th na rag an V AR cailit (bth leadg an la of all gerat unitsto be in ii the Facilit.) Th Facil wil co of 13 Sieen wid tuin with invidua geraor nalat ra of2.3 MW fo ea unt, for a to Facilty gener na ra of 29.9MW, with a maum Facty out of 29.9 MW. Eah geering unt ha a reve powe caty (V AR cailty) of 1,114 tV Ar delive (lagi to 1,114 kV Ar consed (lea). Seller and Idao Powe may muty ag to subson any ti pror to the Opon Da, a differt mauf anor mol wi tu prvide th th agga nameplat rati of th Facilty do not exce 30 MW. If th Seller wish to subs differt wi tuin, th Seller sha prvide deled spif of th prse sutu wi tu to Idaào Powe. Idao Power wi th review 1l de inon an eith ac or reec th Seller's prpose substi wi tubine. Ida Powe ac of th substu wi tu wi be re by both confon th th inte is abe to ac th substu wi tu an th th sutu wi tues ar acle un tis Agrent. Ony af Ida Powe's accetace of th subtu wid tu shl th Seer be alowe to in the substu wi tu, whch acep sh no be unly wield. -33- 10123110 B-2 LOCATION OF FACILIT Nea: Buey, ID Seon: 12. 13£24 Town: TI2S Ra: R25E Coun: Ca ID Se: 7. 18 Town: II is Rae: R26E County: Caia, ID Depton of Ineron Loon: On-site in Seon 25, Tl is, R2, Elm County, Ida. Inte wi an exstng Ida Powe 138 kV distbution lin. Exa point of intion to be de as pa of th Ida Powe delive busins unt's innnon sty pr. Nea Idao Power Subson: Mido subson. ß.3 SCHDULED FIT ENGY AN OPERATION DATE Sell ha se Oc 31, 2014 as th Scheuled Fir Enegy Dat. Seer ha seec Debe 31.. ,014 as th Scheduled Opon Da. In mak thes selecon Sell regn th ad te of the Facty and coleon of al reen in paph 5.2 of ths Agrt mus be complet pror to th prje bein gr an Opon Da. B- MA CAPACIT AMOU: ths value wi be 29.9 MW whch is consnt with th va prvide by th Seler to Idao Power in acrd with Scule 72. Th vaue is th maum en (M th poteally could be deliver by th Seller's Facilty to th Idao Powe elec sy at an momet in tie. ß.5 POIN OF DELIY ''Poi ofDeer me unes ot ag by both Pares, the poin ofwh th Sell's Facty's en is deliver to th Idaho Powe elecca syst. Schede 72 wi deii th spc Poin of Deer fo th Facilty. The Poin of Deliver identied by Scule 72 wi bee an inte pa of ths Agrent. - 34- 10123110 8-6 LOSES If th Ida Power Met eqt is caable of me th exa en delivees by th Se to th Ida Powe elecca syst at th Point of Deliver, no Loss wi be cacued for th Facity. If th Ida Powe Met is unle to mea the ex engy deliveres by the Seller to th Id Powe elee sy at th Point of Deliver, a Loss caculon wil be esbli to mea th en los (kWh) be th Seller's Facilit an th Idao Powe Point of Deliver. Ths los caon will be intily se at 2&/Ó of th kWh en prn re on the Facilty geon me equipmt At su tie as Seller provide Idao Powe with the elecca eqpmt sp (trer los spons, co siz etc) of al of th eleccal eq be th Facty and th Ida Power elecca sy Idao Powe wil cogu a rese lo caculaon forula to be ag to by both Pares an us to cacule th kWh Loss for th reng te of th Agen. If at an ti dur th te of ths Agt, Idao Powe deiemiims th th loss caon do no coy reflec th ac kWh loss atbu to th elec eq be th Fac an th Idao Pow elecca sy Ida Powe may adus th ca an revely adjus th prous mont's kWh los cacution. B-7 MEG AN TELEMEY Sc 72 wi dee th spif metg and telemet reuits for th Facty. At th minum th Me Equipm an Telem equipmt mus be able to prvide an recor hoy en deivees to th Poin of Deliver an any oth en meaents reui to adiser th Agnt. Th spcaon will inlud but not be limite to eqment spca, eqpm loon, Ida Powe prvide equipment, Seller prvide equient an all co as with th equipm des an inon of th Ida Powe prvide equipmt. Seer wi ar for an mae avlae at Senets co communcation cirt( s) compble to Ida pow comnunon eqpm an deca to Idao Powe us ter at th Idao Powe Faces cae of prdin Idaho Powe wi cotiuo inta inoron on th Facilties en pron. Idao Powe prvide equipm wi be owned an ma by Ida Power, wi to co of puha, inon, opeon, and mainte, inlud adstve cost to be reise to Id Power by th Seller. Paymt of th cost wi be in acdance with Schedule 12 -35 - 10123/10 an th to me co will be inlu in th cacuaton of th Mony Opon an Mantelé Ches sped in Schee 72. -36- 10/23110 APPENIXC ENGINER'S CERTICATION OF OPERATIONS & MAANCE POLICY Th un , on beofbimlfan . henaf collecvely refe to as ~ginee," hey st and ce to th Seller as follows: i. Th En is a Lice Preson Eng in go stg in th Sta of Ida. 2. Th En ha reew th Ene Saes Agrent, ber "Agrt", be Id Pow as Buer, an as Seller, da 3. Th th cogenon or sma powe prucon prjec which is the sujec of the Agt an ths St is idefi as IP Facil No. and is he refer to as the "Prec" . 4. Th th Prec whch is coony knwn as the Projec is loc in Seon _Town_Ra-t Bo Merdi Coun, Ida. 5. Th En re th th Ag provide for th Prjec to fush elecca ener to Id Powe for a tw (20) yea pe. 6. 11 En ha sutial exence in th de conson and opon of elecc powe pla of th sae ty as th Prjec 7. Tb En ha no ecno relaonsip to th Deign Enginee of th Prjec 8. Th Engee ba reewe an4l0r suse th reew of th Polcy for Opon an Mate ("O&M" for ths Prjec an it is his professiona opinon th prvide sad Prjec ha be de an but to ap stda adce to sad O&M Policy wi rest in the Pr's pr at or ne th de elecca out efciency and plant far for a twenty (20) ye peod 9. Th en re th Ida Po, in accord wi pagr 5.2 of th Agen is relyi on En's re an opinon cota in ths Staent. - 37- 10/23/10 i O. Th en cees th th abve stents ar coplete, tr and acure to th be of his knwl and thore se hi ha an se below. By (p.E. Stap) Da -38- 101210 APPENIXC ENGIR'S CERTIICATION OF ONGOING OPERTIONS AN MAANCE Th ungn , on be of hilf an he collecvely refer to as "Engi," heby st an cees to th Sell as follws: i. Th Enne is a Lice Prfena En in goo stdi in th St of Ida. 2. Th Ennee ha re th En Sales Agent, he "Ag", be Idao Powe as Buyer, an as Seller, da 3. Th th coon or sm powe prucon prjec whh is th subjec of th Agen and ths Sta is idetified as IP Facil No. an he referre to as th "Prjet". 4. Th th Prje whch is coy knwn as th Prjec is loc in Seon _Town_Rane-, Boise Mendian Couty, Idao. 5. Th Engne re th th Ag prvide for the Prjec to fu elecca en to Ida Power for a twty (20) ye peod. 6. Th En ha su exen in the deign conscton and opeon of elecc powe pla of the sae ty as ths Prje. 7. Th Enne ha no eemi relaonship to the Degn Eng of tbis Prjec 8. Th En ha ma a phys inon of sad Prjec its opeon an maitee re si th las previou ceed inon. It is Eng's prfessiona opinon, ba on the Pr's ap th its ongoi O&M ba be substiy in acrd wi sad O&M Policy th it is in renaly go opg coon; and th if aderce to sad O&M Policy coti th Prjec wi coue prucin at or ne its desgn elecca outut effcieny and pla fa for th reinaini _ yea of th Agren. 9. Th En regn th Idao Powe, in acord with pa 5.2 of th Agent, is reyi on En's renton an opions cota in th Staen ~ 39- 10123110 10. Th Enr cees th th abve stents ar coplet, tre an acur to th best of hi knwlè an th se his ha and sea below. By (p.E. Sta) Da -40- 10123110 APENIXC ENGINR'S CERTIICATION OF DESIGN" CONSTRUCTON ADEQUACY Th un ~ on beha of hiself an he collvely reer to as "Engi:' heby st an cees to th Seller as follow: 1. Th Enee is a Lice Prfeon Engi in go stg in th Sta ofIda. 2. Th Engi ha re th Fir Ene Sales Ag hein "Agr", be Ida Power as Buyer, an as Seller, daed 3. Th th cogeon or sml powe prucon prjec whch is th suec of th Ageeen an this Stat, is id as IP Facty No an is herein refer to as th "Pje. 4. Tbth Proj whch is conly knwn as the Prec is loc in Seon _TOWp_Ræi-, Cou, Id. 5. Th &l regn th th Agen prvide for the prjec to fuh elecca ener to Ida Power for a twnt (20) ye peod 6. Th Enee ha su exen in th deign coon an opon of elecc po pl of th sa ty as ths Prjec 7. Th Enee ha no ecnomic relatonp to th Degn Enee of ths Prjet an ba mae th an of th pla an spifcaon inepndtly. 8. Th En ba reed th en degn an conson of th Prje inlud the civi ~ elec wor geerin eqpm pr mover coveya syst, Seller fu hite Facti an oth Prjec facties an eqpmt. 9. Th th Prje ba be co in acrd with sa pla an spificaons all aplile co an co wi Pn Elecca Prce as th te is debe in theAg -41- 10i10 10. Th th degn an conson of th Prec is su th with rele an prt ope an mace ptce by Seer, Th Prec is cable of pe in ac with th te of th Agrt an wi Pn Elecca Prtice for a twty (20) ye peod. 1 i. Th. Bn regn th Ida Powe, in ao with pagrh 5.2 of th Agr in in1e th Prjec wi it sy, is relyi on Engi's retaons an opinions co in ths Sta 12. Th Bn ce th th ab sients ar coplete, tr and acur to th be of his kned an th se hi ha an se bew. By (p.E. Sta) Da -42- 1012/10 APPENIXD FORMS OF LIQUID SECUR Th Se shll prvide Id Powe wi coy reble seurty in su as Ca Esw Sety, Gute or Lett of Cret as thse te ar defi below or ot form of liquid firi se th woul prvie rey avable ca to Idao Power to sa th Deay Seurty an any ot sety rereents within this Ageeen For th pu of tl ap D, th te "Crt Requiments" sh mea acle ficial crtw of th entiy prviding th sety int in relaon to th term of th obligaon in th ree jud of Ida Pow, prvide th any gu anor let of cr issu by an oth enty with a sho-te or lon-te inves gr crt ra by Sta & Poo's Cora.or Mo's Inves Sece, In. shl be deed to have acle fianialcrne. 1. Ca Es Seur - Seller sh det fu in an escw 8Cmit eslis by th Sell in a baking intuon acle to bo Par equa to th Delay Sety or ot re se amoun (8). Th Selle sh be rensble for al cost, an reve any inte ea asiat with eslisbng an maiinig th esw 8Cunt(S). 2. Gu or Le of Cr Sety - Seller sh po an main in an amomit eq to th Delay Seurty or Ðt re se amunt: (a) a guty frm a pa th saes th Crt ~ in a for acble to Ido Powe at its dion or (b) an irvocle Le of Crt in a fo acle to Ida Powe, in faor of Ida Powe. Th Le of CIt wi be is by a finaal inon acle to both paes. Th Seller sh be rebl for all co as wi eslishi an mataning th Guartees) or Les) of Cret -43- 10123110 APENE WI ENERGY PRODUCTON FORECASTING As sp in Conimisson Or 3048, Ida Powe sh ma us of a Wind Ener Pructon For mol to :f the en prucon fr ths Facty an od Quif Facilty wi geon re. Seller an Ida Power wi sh th cost of Win En Pruction For Th Facty's sh ofW'md en Prucon Fore is de as spfied below. Sell sha wi not be gr th 0.1 % of th tota en paym ma to Seller by Ida Powe dur th pr Co Yea. a. For ever mo oftb Ag benning wi th fi fu month af th Fîr En Da as sp in Apndi oftb Agrt, th Win engy Pron FOl Moy Cost Alocon (MeA) will be due an payable by th Seller. Any Win en Prucon Forg Monthy Cost Alocon (MCA) th ar not reimbu to Idaho Powe sh be deuc frm en paym to th Sell. · As th value of th 0.1 % ca of th Facilti tota en paymen wi no be kn un th fi Con Yea is complete, at th en of th fi Co Yea any pror alocon th exce th 0.1% ca sh be adjus to refl th 0.1 % ca an if th Faclity ha pad th monthy alocons a reftd wi be includ in eq monthy am over th enng Con Yea. If th Facit ha not pad th mothy alocon th amunt du Ida Powe wi be adus acaø th un baan wi be deuc fr th enuig Contt yea's engy payments. b. Du th fi Contr ye, as the value of the 0.1 % ca of the Facties to energy pa wi not be kn un th fi Contrt Yea is complet, Idao Power wi deUG th Facilty's caulat sh of th Win Engy Prucon Fore co sped in it d ea mo dur th firs Contr Yea an subsuey refu any oveymen (pym tht exce the ca) in equa monthy ammits over th en Con Yea. c. Th cost alocon forula debe below wi be reewed an revise if ne on th la day of any mo in whch the cuulve MW nala of wid prjects have -44- 10i10 Commisiòn apve agts to deer engy to Idao Power ha be rese by an æton of the Commisson. d. Th moy co alon wi be ba upn th followi form: Wh:T....M (l is equa to th tota nalate rag of all QF wi prec th ar un comiac to prvide en to Ida Powe Com. F'& MW tF is equa to naat iat of th Fac asspifed in Ap B. AI. Wil f. Prn F' Cos (A.t) is eq to th to aiua co Ida Power in to prvide Win En Production Foring. Ida Pow will es th AFCost for th cur yea baed up th prou ye's cost an exed co for th curt yea. At ye-- Ida Powe wi co th ac co to th esmat co an an differce be th es AFCostan th ac AFCos will be inlud in th next yea's AFCo Aiul Ces Altin (ACA) = AFCes X (F I TM An Me Cos AI (MCA) = ACA 112 e. Th Win ED Pron For Monthy Cos Alon (MCA) is due an payable to lda Powe. Th MCA win fi be ne ag any mony energy paym owe to th Seller. If th neg of th MCA ag th moy enrg paymen rets in a baan be due Ida Powe, the Facty shl pay ths am wi is das of th date of th paymt invoice. -45- 1013110 l §..,~ l ~ ~ ~ ia ~ CA COUNTYCO PRECTDE fA WI DEOP AR . s.m:PlT_ _ie'1.~'Ul__""c_ '".... I 113'27' 6$,00 , FEDERAL ENERGY REGULATORY COMMISSION WASHINGTON, DC F Q,r m. ... .. . 5. .5.. ... ,6... Certification ofQuallfying Facilty (OF) Status for a Small PowerProduction or Cogeneration Facility OMB Control # 1902.0075 Exon 5131/2013 18 Full nae of applicant (leål entit on whose behalf quali facllty sttu is souht formls fadlt Delta Wind LLC . 1b Applicnt stret address è/O Cotterel windEnergy Center LLC 150 N.Dai,rý Ashford Rd. l3uUding C,Suite 356 D 1cOty 1d State/province Houston TX 1e Postal code 11 Country (if not United States)1 9 Telephone number 77079 832-337-2537 1h Has the Instant fadllt ever previously been certif as a QF?VesO No ig 1.Ifyé, prid the docke number of the last knn QF filing perairrng to this facUity QF M M..~-- 1j Under which certifatIon process Is the applicant making this filing? 1.Notice of self-certcatlon 0 Application for Commission certtfcatlon (requireS flllg c:(se note below)fee; see "RUng Fee" setion on page 3) .2 Note: a notice of sei-certlflcation Is a notice by the applicant itself that Its fadllty complies with the requirements for+-QFstátus A notice of selHertificaon doe not esblis a proceeing, an the Commiss do not reøwan: E notce of s.elf.certlfication to verify compliance.See the 'What to Expect From the Commission After You File" ""setin on page 3 for more information.~1k Wht types) of QF status Is the applicant seeking for its fadlity1 (check all that apply)c:.. C r&~ng smaUpør.ptoQud1ol" ftllit status 0 Qualifying cogeneration fadlistatus 0-.1l .WhätlS theJ¡o$e and ~ed efeciv date(s) of this fllng?(0.~ìl Orginal celtfloitiOn¡ facilty expected to be installed by 10/31/14 and to begin operatin on 12/31/14 Q. o Change(s) to a previøuly certfied facilit to be effective on0.c((ientify tys) of change(s) below, and describe change(s) in the Miscllaneus setion staring on pag 19) 0 Name change and/or øther administrative change(s) 0 Change in ownersip 0 Change(s) afectlog plant equipment, fuel use, power prouctfo capacit and/or cogeneration thermal output o Supplement or.correction to a previous flUng submitted on (describe the supplement or correction In the Miscellaneous sectIon starting on page 19) 1.m If any of the folloing three statements Is true, check the box(es) that desribe your situation and complete the form to the extent possible, explaIning any special circumstances In the Miscellaneous seon starting on page 19. 0 The instant facility complies with the Commission's QF requirements by virte of a waiver of cerin regulatios preiously granted by the Commission in an order dated (specify any other relevant waiver orders In the MisceUaneous secton starting on page 19) o The Instant fadlityWould comply with the CommIssion's QF requirement If a petition for waivr submitted concurrently with this application is granted 0 the instant facilltcompliès with the Commission's reulations, but has special circumstances, such as the employmnt of unique or Innovative technologies not contemplated by the strcture of this form, that make the demonstratin of compliance via this form diffult or Impossible (describe in Mise. sectio starting (In p. 19) o o o o o o . FERC Form 556 Page 6 - All Facilities, 2a Name of contact person 2b Telephone number Kevin Siinons 832-337-2537 2c Which of the following describes the contact person's relationship to the applicant? (check one) c:o Appllcant (self)i: Employee, owner or partner of applicant authorizd to represent the applicant 0 o Employee of a company affliated with the applicant authorized to represent the applicant on this matter'Pro o lawyer, consultant, or other representative authorized to represent the applicant on this matterE2dCompany or organiztion name (if applicant is an indivdual, check here and skip to line 2e)Oi-~Cotterel WindEnergy Center LLCc:- t)2e Street address (if same as Applicant, check here and skip to line 3a)0 !9 1S0 N.Dairy Ashford Rd.c:Building C,Suite 35600U2fCity 29 State/province Houston TX 2h Postal code 2i Country (If not United States) 77079 3a Facilty name C Delta Wind LLC0'P 3b Street address (if a street address does not exist for the facilty, check here and skip to line 3c) i:toU0.. -0c: CO 3c Geographic coordinates: If you indicated that no street address exists foryourfacilit by checking the box in line 3b,C then you must specify the latitude and longitud co.ordinates of the faciflty In derees (to three decimal plaçes). Use0.-the following formula to convert to decimal degrees from degrees, minutes and seconds: decimalc.grees::+Je degrees + (mlnutesl60) + (seconds/3600).See the "Geographic Coordinates" secion on page 4 for help. If you (¡provIded a street address for your facilty in line 3b, then specifyIng the georaphic coordInates befoWls optionaL.-.¡ o East(+)18 North (+)c:longitude 113.469 degrees latitude 42.379 degrees(J 18 West(-)o Sou(-)-0 .è' 3d City (If unincorporated, check here and enter nearest city) 0 3e State/province Burley Idaho'ü CO 3f County (or check here for independent city) 0 39 Country (if not UnIted States)u.Cassia Identify the electric utUities that are contemplated to transact with the fadlity. II 4a Identify utilty Interconnecting with the facility(J :e Idaho Poto,er Company..¡::4b Identify utilitIes providing wheeling serve or check here if none 18O"c:t 4c Identify utilties purchasing the useful electric power output or check here if none 0 to Idaho Power CompanyIIc: ~4d Identify utilities providing supplementary power, backup power, maIntenance power, and/or interruptible power ¡i-service or check here if none 0IdahoPowerCompany (I o o o o o FE Form 556 Page 7 - All Fadlltle 5a~.owerlp as of efive date or option date: Identify aU dirt owners of the fadli h~g.t k! 10 percen eq lnélst i= each Identifid ower, al (1) itiate whther tha owner Is an ele utili, as dene in seio 3(22) of the Fedral Power Act (16 U5.C. 796(22)), or a holding company, as defed In setion 1262(8 of th Puc UtlHoIlng Company Act of 200S (42 U.S.c. 16451 (8)), and (2) for own which are elec ~~ or holing companies prov th pecentge of equit interest in the facility heJd by that owner. If no dIect owners hol at lest 10 perent equity interst in the facilty, then provide the require Information for the tW dire owrs with the lagest equity Inerest In the faility. i:o+:e 8-o"'Cto C. :2 l! Q)c ~ Full legal names of direc owners 1) Cotterel NindEnergy center LLC 2) 3) 4) 5) 6) 7) 8) 9) 10) Elecric utility or hoding company YesD YesD YesD YesD YesD Yes 0 YesD YesD YesD YesD No f8 NoD NoD NoD NoD NoD NoD NoD No D NoD Full legal names of elctric uti or hoding company upstream owners If Yes, % equIty interest 100% % % % % % % % % % o 'Oi. bere an contiJlue in the tvsÇellaneoU$ sect startng on page 19 if aditional space is nee 5b U~eall (i.é., indlTetl QWl'E!rsp as. of effive date or operati date: Identify aD upstream (i.e., lndiretl owners Of the fallit that both (1) hold at least 10 percent equity Interest in the facilty, and (2) are electric utflties, as defined tn secon 3(22) of the F~eral Pow Act (16 U.s.c. 7~22)), or hQldlng compank!s, as defined in section 1262(8) of th Publc Utiity Holdin çompany Act of 205 (42 U5.C. 16451 (8)). Also provie the percentage of equit Interest In tlfalt he by $Uh ower. (Note that, beuse upstream owner may be subsidiari of one another, total percent equity Interest reported may exceed 100 percent.) Check here if no such upstream owners exist. f8 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 0 % equity Interest % % % %.._ % % % % % % o Çheck here and cöntinue in the MisllaAeusselon startin on page 19 if additonal space is needed Se Idéltl th failty opertor Cotterel WindEnergy Centèr LLC FERC Form 556 Page 8 ~ Al Facilities. 6a Describe the primary energy Inpu (check on main categor and, If applicable, one subcateory) o Biomass (specify) o landfill gas o Manure digester gas o Municipal solid waste o Sewage digester gas o Wood o Other biomass (describe on page 19) o Geothermal o Fossllfueltspeclf) o Coal (not waste) o Fuel oiVdiesel o Natural gas (not waste) Other fossil ful o (descib on page 19) 18 Reneable resouces (spe) o Hydro power ~ river o Hydro power ~ tidal o Hydro power ~ wave o Solar - photovoltaic o Solar ~ thermal ¡g Wind o Othe renewable resurce 0 Other (describe on page 19)(desribe on page 19) 6b If you specified "waste" as the primary energy input in line 6a, indicate the type of wast fuel used: (check one) o Waste (specify type below in line 6b) ..::Q.C;:~(JCW o Waste fuel listed In 18 CF .R. § 292.202(b) (specify one of the following) o Anthracite culm produced priorto July 23, 1985 o Anthracite refuse that has an average heat content of 6,000 Btu 01' less per pound and has an average ash content of 4S percent or more o Bituminous coal refus that has an average heat content of 9,500 Btu per pound or less and has anaverage ash content of 25 percent or more Top or bottom subbitumfnous coal produced on Fecrallands or on Indin lands that has.been determined to be waste by the United States Departt of the IntertsBureaii of tand Managemento (BlM) or that is located on non-Federal or non-Indian lands outside of BlM's jurisdictiOn, prov~ th1lt the applicant shows that th latter coal is an extensiOn of that determ by BtM to be waste Coal refuse produced on Fedal lands or on Indian lands that has been determined te bewaste by the o BlM or that Is located on non~Federal Or non..ndian lands outide of BlM's jurisdlctln, proVid that applicant shows that the latter Is an exension of that determlned by l;lM to bewaste o LIgnite produced in association with the prouction of montan wax ànd lignite that becomes expsedas a result of such a mining operation o Gaseous fuels (except natural gas and synthetic gas from coal) (describe on pae 19) Waste natural gas from gas or oil wells (deribe on page 19 how the gas meets the reqt.1rements of 18 o CF.R. § 2.400 for waste natural gas; include with your filing any materials necessary to demonstrate compliance with 18 CF.R. § 2.400) o Materials that a government agency has certified for dispsal by combustion (describe on page 19) o Heat from exothermic reactions (describe on page 19) 0 Residual heat (desribe on page 19) o Used rubber tires 0 Plastic materials 0 Refinery off-gas 0 Petroleum coke Other waste energy input that has little or no commercial value and exists In the absence of the aWlllfing o facility industry (describe in the Miscellaneous section starting on page 19; indude a discussin of the ful's lack of commercial va and exisence In the absence of the qualìfing facUlty industry) 6c Provide the average energy input, calclated on a caendar year basis, in terms of Bt for th followingftssil fuel energy Inputs, and provide the related percentage of the total average annual ener input to the faci1lty(l $ C.F.1t § 292.202(j). For any 011 or natural gas fuel, use lower heatin value (18 CF oR. § 292.202(m)). Annual average energy Percetage of total input for specied fuel annual eoy inplJt o Btuth 0 %o Btu/h 0 0'- o Btulh 0 % Fuel Natural gas Oil..based fuels Coal , FERC for SS6 Page 9 - All Faciitie In th mø gro and ~mum net eleic por production capacit of the failty at th pot($) of de by coletng the workhet belo. Rend to aliltems. If an of the parsiic lods aiior losses identled In line 7b thro 7e are negliib, enter zeo for thos lines. 7a The maxum gro po prodon capa at th termials of the indlvdua generator(s)un th mo favbl antipd de conio 7b Parti st po us at th faci to ru equipmt whi Is neessary and Integra to th po prod proces (b feed pu fanslowers, ofce or maintenance buigs di relted to the th po geerting f~y, et). If this facit Inclde no- I poer pr pres Instanc poer consumed by a coon fadltys therrnal I ho , ~ no i~ any po consumed by the no-pr produion activti in yo reported parasitic station powr. 1c Elical los in Intercnnecton transformers 29,900kW o kW o kW 7d Electcal losss In ACIC conven eapmnt, if any o kW 7e Oter inteteneon losses in power lines or facllttles (othr than transforrs and ACID Ç~?l) equipment) beteen th teimlnals of the generator(s) and the point of interconnection. tJi utli . 1f iotal deductions froni gross power prducon capacity = 7b + 7c + 7d + 7e o kW 0.0 kW 0c:.2 iø É~c:- 79 Maximum net po pructin capaci = 7a. 7f 29,900.0 kW.... 7h Decitlon of fait and primary copoents: Deibe the fadltty and it opetin. idnti all bø het recove steam geetåtors, prime mover (any mechaical equipment driving an elecgeerator), e1cltlcal geetitophovolc so1ar equlpt. fu cel eqent andor oter prmarypør geeratin eqrn t.edln the~. Ðesclptløns ofcoiponets shoud lndud(as applica) spedficaon of the nomim ~Ite; fomehankálöiitpt.eI~outt ()stm geer0fthe ided eqipmt For ea Jr ofeqenidtifed c~ini(te how many pieces of tha ty of equipent are included in the plant, an Whm compoents are noraliyopeatlg or norll in standby Ine. Proid a deipt of how the c:onponents ~ra~ as a Sy$te . Appkènts for cogeneration fa9litle~ do .l'ot need t() desçrie opèratons of sytes th an dearly de(ted on and easily understandable frm a coneratl(n faclllts attçhed mass andhet baneedtral'¡how~$U1l aplJnt shouprov any I'etessa desrition need to understand the sequential operation of the facUlty depicted In their mas~ and heat balaee dlagl' If add~IQnal space Is hed, cohtinuln th Mtscellaneo setlo startIng on page 19. g.0tou. ~c: '£ ~ Tbe Dêlta Wi~d facility will consist of 13 $ieme~s $WT~101 wi~d turbi~es with individual generator nameplate readings of 2300 kWeach which feed into a common colleetor system. The individual generating units have reactive power capabilities of 1,114 kVAr lagCJing and i,114 kVAR leading. Unless otlerwise constrained¡ the facility will operate during weather cOnØitions favorable to enexCJY production (h\1 height wind speds between 4 and 25 m/sl te1eratures between -25 and. +35 degrees C and during periods where wind turbulence levels would unreasonably fatigue the machines) . . Wbile e.stimated values have been provided in lines 7a. - 7f, there is . some uncertainty in these numrs relating to th~degre~of pos.sible generator over-efficiency, uncert:,1inty in the length of th~ collection system, uncertainty in soil electrical properties, whether toassum tht there t\'ould be tim.e periods when all 13 turbines are oprating.at full capacity and other considerations. Given that some of these factors could cause a slight over- estimåte of actual loss values while others could result in a Slight unerestimate, we currently take the conservatÂve view that the facility output nameplate will be 29,900 kW FER Form 556 Page 1 a - Small Power Production. , Information Required for Small Power PrQduetionFadlity If you indicêlted tn Une lk that you are ~kiiig quaUfying small power prQdiictlon facUity stUS fpr yor faclllt, th you must respond to the items on this page Otheise, skip page 10 Pursuant tQ 18 C.F.R. § 292.204(a), the poer production capadt)of anys~llpo~r prQddlon fadlity,.togetlr with the powr production capacity of any other small power production facilities that use thesal1e energy resource, are owned by th same person(s) or its affliates, and areloated at the Sameslte, may n()tex~erd 80 megawatts. To demonstrate complane with this size nmitatlon, or to demon$trc~ that yourfacility is ~empt from this size limitation under the Solar, Wind, Waste, and Geotheral Power Prod(lø Incentl\ Act of 1990 (Pub. L 101-575, 104 Stat 2834 (1990) os amened by Pub. L 102-4, 105 Stt. 249 (1991)), respond to lineSBa through Be below (as applicable). (\uc:.!2 ~- 00. ._E ~ Uo .-êE() :: § fi ''¡ tñto .cu q: +-ë '§(\U (\ ~u c:c: (\.!2 E ~.~o g.u (\io a:o (\ c: vio :J~-to (\U :Jq: i.ë .c(\ .'tU St Sa Identify any facilities with electrIcal generating equipment located within 1 mile of the elecrical generating equipment of the instant facllity, and for which any of the entities identified In Iin~ sa or sb,or their affiates, holds at least a 5 percent equity interest. Check here if no such facilties exist. f. Facility location Root docket # (city or county, state) (if any)Common owners) Maximm net power prodctio capacity kW1)QF --- 2)QF --- 3)QF --- o Check here and continue in th MlseHaneoussectiGn staring on page 19 if adtional $peisneeded 8b The.Solar, WlnelWaste, and Geøthermal Power ProductlolncentlveAc of .199Q (klentivesAçt) proVIes exemption from the siie Ilmliatios in 18 C.F.R. § 292.204(a) for certain fåc:llWe$.thatwe.recertprlor to 1995. Are yo seeking exeption from the size limitations in 18 C.F.R. § 292.204(alby vllte of the lncentive Act? o y~ (continue at line 8c below) f. No (skip li 8c through 8e) 8e Was the origial notice of self--ertlfcatln or application for (Lømmlson cerflcat!ønofthe facilit flied on or beforeDecembe31,l9947 YésD No 0 Sd Old construction of the facllit commence on or before December 31, 19997 Yes 0 No 0 Be ¡fyou answered No in line 8d, ifdlcate whether reasonable dilgence was exercised toward the completion of the facility, taking Into account all factors relevant to construction? Yes 0 No 0 If you answered Yes, provide a brief narrative explanation In the Miscellaneous sectionsiarting on page 19 of the construttion tlmeline (In particular, describe why constructio started so long after the faCility was certfid) and the diligence exersed toward completion of the facllty. Pursuant to 1 s C.F.R. § 292.24(b), qualifying small pawerproductian facilities may use fQssiI fuels, .in minimal amonts, for only the follGWingputWses ignition; st~-up; testing; flame stabiflzatlon contlof l.se; alleatlon or prevntion of unanticipated equipment ou.tages¡ andallevitln or prevention of emergencies, directly affecting the public health. safety, or welfare, which would result from elecic power.ouiages.The amount of fOSl fuels used for thes pupose may not exceed 25 percent of the tota energy input of the facility dUring. the 12'1nth period beginning with the date the facilit first produces electric energy or any calendar year thereafter. 9a Certification of compfiance wih 18 C.F.R. § 292.204(b) wit respet to uses offossil fUl; f. Appllcant certifes that the fadlfty will use fossil fuelse)duslyfor thê purposes fisted above. 9b CertifiCation of compliance with 18 CF.R. § 292.204() with respect to amount of fossil fuel used anrually: Applicant certifies that the amount of fossil fuel used at the facIlity will not, In aggregate, exceed 25 IZ percent of the tQtal energy input of the facilty during the 12-rnonth period beginning with the date the facility first produces electric energy or any calendar year thereafter. o ); ); o .. FER Form 556 Page 11 - CogeneratiOn Facilitis lnfarmt)tlOrJ ReqLlired forCQgeneration FaçiUty If yo lttec in ll.1 k th ye ateseeng qug cogenertion fadllt ~tus for yor faGØ, t~ yo must respo Wtll~ ~~11thJ3ó~ $k paes .11 thrh. 13. PtitSånt to i8C.i=.R. § 292'L()(t), a cøgeratioh facilit prodêes electr ener9Y~hdforms of~efl theral 0 energy (such as heat or ~ai) used folndustll, commercial, heatig, or cool J?rpes,through the sequential use of enesi. Purst to 18 C.F.R. § m.202(s), useueJtial use" of energy means thefbllWi: (1) for a topping- cye cogenertion faRty, the use of reject heat from a power prodUèti procs in sument amounts in a thermal appliction or process to conform to the requIrements of the operating standard contained in 18 c.F.R. § 2.2~eS(a); or (2) fotabottornlfio.le cogenertion fadllt, the use of at leas so reject heat from a thermalappatln or proess for po production. . co += e cQ) 0 c: .- CU .ien tao Eu 0-~e c: Q) - ~ o10a Wht types) of coeneraton technoloy doe th facility represt? (chec all th ël) o Top..ecogen 0 Boorning-cle cogenti lOb To help demonstrae t": setial opeation of the cogenera pròêss, and to stt comfan¡æ WI other reqreents suc as th opemg and effiency stndrds, lnud wltnyøur fig a mass and heat balace dfag'depitt avgeannüalopatng condftlos. This diagram must Ince certlnltell and meet certain requiremnts, asdesd beow. You mut Chck nex to the deptn ofeach requement below to certfy that you have compiled with these requirements. Chec to certify compliance With iJ1ç~4 reqinnt o Reire DIgram must show orientati wtthln sytem piping and/or duet of aU prime mors het're steàgenerto boile el .genemo, an condns (as apPicae), as we as an oth .prlrnry eqpmt releva.ntto th cogellatln prQCes5. Anya'lé. annul values required to be reported in fines lOb. 113, 13a, 13b, 13d, 1 ~f, 14a, 1Sb, 1.5 ahdol" 15t must be èompued over the antkipated hours of opration. Dfagram rnus spif aU ful inputs by fuel ty and average annual rate In Btu/h. Fuel for si.tnntåry fllngshould be speclfed serately andearly.labeled. All specifcaions offuel inpü should use loer heing IJlus. o o o Dlagrammust speIfy avrage gross electric oUtput in 1(.or MW fOl each generor. Diagram must spifaver~ mechanicl 9utPut(thatis il)l rneÇhlc1 energ) take of of the shaft of the prime movers for puross not diret related to elecric poer geeratlon)ln ho.rsepor, If any. ,Typally, a cogeratlon fadlt has no mechanicalouut o o At each potnt for whIch working fll.ld flw conditions arerequlred to be specified (see below), such ffow condition data must Include ma flow rate (In Iblh or kg/s), tempetué 'ti°F, R, "C or K), abolu pre .(tn psl or kPa)and enthalpy (In Btullb or kJlk). Exeption: For sytems where the working fl.lslkldønl(no vapo at any pot tnthe ey) and whee the type QfJiautd and $piflc heat of that llqukl are dearl Indicate ør th diagram or in the MlsceilaneU$section st(l 9n page 19, only mas fl ra~an tempeitu (nø presre al'd entbpy) ne besPeified. For referente, spe het at standrdcondittons fo pure Ikukl water Is approxtel 1.002 Btul Ob*R) or 4.195 kJ/(kgK). o Diagram must specify working flul flow conditions at input to and output from each stearn turne or othe expansion turbine or bápressure turbine Diagram mus specify worki.ng flid fl contions at deery to and return frorn eah thermal appllcatlon. Diagra must specify workng fluid flow conditions at rnake-up water Input. o o .. FERC form 556 Page 12 - CogeeratlnFadllts . (JII ~.:: :: j9 :a i: ta Q) u. ~ §"0 ''¡i: ~ :J Q)u. i: '- Q) J2 O'oJ! u ¡ E E 0(J ~ .= .¡ :: :J0" 0. Q) +Jex :JlI 0o :;o ~N Q)+J CU W c: "+ fb 0 EPAct 2005 cogeneration faöfities: The Energy Policy Act of200S (EPAc 20(5) eståblished a neW section 210(n) of the Public Utllity Regulator Policies Act of 1978 (PURPA), 16 USC824a~3(h),withaddlional requirementsfQrany qualifyng cogeneration facility that (1 lis seeking to sell electic ener~pursuanttos~ti() 210ofP~~PA and (i was either nota cogeneratio facility on August 8, 2005, or had not filda self.certiflfationor~.pp~(ltion for Commission cettifiøtio.n of QF status on or before February 1, 2006. Ttle req.uirerntswere jmp~mented by the Commission In 18 C.F.R. § 292.20S(d). Complete the line below, carefully follo~ng theinstructions,to demonstate whether thse additional requirements apply to yor cogeneaton facilit and, if so, wher yotrfadlity complies with such requirements. 11a Was yourfacUity operating as a qualifying cogeneration faclity on or befQre.August s, 2005~ .. y~ D NoD ., 11 b Was the initial filing seking certfition of you fadit (wheher a notie of self-ceiailon or an applfçatioh 4) for Commission certifcation) fled on or before February 1, 201 Yes 0 NoD If the answer to either line 11 a or 11 b is Yes, then continue at line 11 c beow.Otherise,lf the answers to both lines 11aang 11bareNo,skipto line l1e bel.ow. 11 ( With respet to the design aodoperation qf the facility, l:ave.any:dlogsbeen~lerented on or after 0 February 2, 2006 that affec genralplant ope~lon,~ect use of:therrmaiolJtput..and.orincreas netpower production capacity from theplants capadty on February 1, 2061 o Yes (continue at line 11 d below) No. Yourfacllty is not subject to the reuirements of 18 C.f.R. § 292.205(d) at this time. However, it may be o subject to to these requirements in the future if changes are made to the facUit. At ø time, the applicant would need to recertify the faclJityto deterine eligibilJty. Skip lines 11d through t 1j. 11d Does the applicant contend that th chang identifed In hne 11 c are not so signifint as to m. the faeliity 0 a "new" cogeneration faclflty that wold be subjec to the 18 c.f.R. § 292.25(d) cogeneration requirements? Yes. Provide in the Miscellaneous section startng on page 19 a desrIption of any relevant changesmadèto o the facility (indudlng the purpose .of the changes) and a discussion of why the facility should not be considered a "new" coeneration facility In light of these changes. Skip lines 11 e through 11 j. No.. Applicat stipulates to the fact that it Isa "newcqgeneratiQ facllty (for purposes of detetminll' the o applicbilIty of the requirements of 18C.F oR. § 292.2OS(d))byvirtue of modifications to the fac:tñ that wer Initiated on or after Februry 2, 2006. Continue.be at line 11 e. 11 e Wlllelectrlc energy from the facilty be sold pursuant to sectio 210 of PURPA? .. o Yes, The fadlity Is an EPAct 2005 cogneration facilit. You must demonstrate compliance with 18 C.F.R.§292.205(d)(2) by continuing at line 1 1 f below. No. Applicant cerflsthat energywiU not be sold pursuant to secton 21 () of PURPA. Applicant also cerifies o its understanding that It must recertify its facility In order to determine compliance with the requlrements of18 CF.R. § 292.205(d) before sellng energy pursuant to section 210 of PURPA in the future. Skip lines 11 f through 11j. 11f is the net power production capacity of yo cqgeneratlonfa,ility,as indicated in line 7g above, less than or 0 equal to 5,00 kW Yes, the net power productoncapadty is les than or equal toS,uO kW. 18 CFJ~. § 292.20S(d)(4) provides a reblltable presumption that cogenertin facilties of S,okW and smaller capadty comply with the o requtrements for fundamental use of the facilits energ ottput in 18 C.F.R. § 292.205(d)(2l. Applicant cerifies Its undersanding that, should the powe producion capait of the facilty Increase abQve s,ao kW, then the facilty must be recertifd to (among other thlngsl demonstrate compliance wit 18 CF.R. § 292.20S(d)(2). Skip lines t 19 through 11j. No, the net poer producon caadty is greter than 5,OOOkW. . Deonstrate compliance with the o requirements for fundamental use of the faclllts energy: output In 18 C.F.R. § 292.20S(d)(2) by contiuing on the nex page at line 1 19. .. FERC Form 556 Page 13 - Cogneration Fadlltles ::(1::c(l .-V) ..:, C - 8ß-c VI(1 .2:E ~ CO .-"0 uc CO :i u.u. c s- .2 J2 ~s- tl (1c c (1 (1E 0\(1 0s- U .S E0" 0&~i. ..o ::o 0.N '5 ~~0. eiW (1 CW '0 tines 119 tfR11k b~owguki til appllcnt throgh th proces of demonstrating coan Yth tht! reqlrements for ~aamel use" of the fådUtys energ output. 18 C.f.R. § 292.20S(çl). Only repod to the lines on this page if the instructions on the prous pae direct yo to do so. Otheiwse, ski this page. lS C.F.R § 292.iOS(d)(2) reqtres that the eleal, thermal, clmkal andmehaical QUput of an £PAct 2005 cotio faôit is usedfundamtay for indusial, comercial, resldtial or institutlonal purpses and Is oo innd fundtfntãl1for sale to an electri utliy, taking Into account tehnologil efdeJ, economic, and varable thalen rerements, as wetl as state lawapplcable to sals of elect energ from a quBfngfadlityto it hos fac:lltY. If YO were direcd on the preVius page to respond to the its on this page, thn yOli facili ls an EPAct 2005 coeneration facUity that is subject to this "fdamentalusen requirement. The Commission's regu(atlons provide a two-proned approach to demonstrating compliance with the reir~ts forfuëm~"talu~ Qf tie faQitys energy outpt. Fir, the Comiskm has ~tablishd in 18 C.F.R § 292.20S(d)() a "ftdamenta use tes" that c;nbe use ttl dem~ate complianc:e Wih 18 C.F.R. § 292.205(d)(2). Under the fundamental use test, a facilit Is considered to complywi 18 C.F.R. § 29.i20S(ci(2) if at least SO perent of the faCilitys total annual energy output (Including electrical, thermal, chemicl and mecanical energy output) is used for industrial, commercial,reldentlal or institutional purposes. $end, ~ applIcant for a faclty that .does not pass the fudamental us test may provide a narrative exlanaion of and wpport for Its cotenti that the fadllty nonetheless mets the requiremnt that the electricl, theal, chemical and mechanical output of an EPAct 2005 cogeneration facilty is used fundamentally tor indutrial, commercial, residential or institutional purposes and Is not intended fundamentally for sale to ari electric utility, taking into account techß(loicall effciency, economic and variable thermal energy requirements, as well as state la applicable to saies of electric energy from a qualifng facility to its host facilit. Complte tines 11 g through 11 j below to deterine compliance with the fundamental use test in 18 CF.R. § 292.205(d).(3). Compirines 11 g through llj eve, if yo do not intend to rely upon the fundamental use test to demonsrate compliance With 18 e.ER. § 292.25(d)l2. 11 9 AmOUnt of electical, therrnt chmicl and mecanical energy outut (net of Internal generatio plant IosSès and pal'sllclo) exected to be use annually for lndustrla~commercial, resdentlalorJnsttiQOlpurpo.ss and not sok: to an electc utilty MW 11 h Total amont ofetecrlcal, thermal, chemical and mechanical energ éxpcted to be so to an electic utllty '. MWh 111 Percen~ of totaannualenergy ouput expected to be used for Industrial, .A cornmercial, residential or institutional purpose and not sold to a utility V=100*11g/(11g+11h) 0 % 11J is the re$ponse In Une 11 i greater than or equl to 50 pècent? Yes. Your fali complies wih 18 C.F.R. § 292.20S(d)()by virte of passing the fundmental use test proviêd In 18 C.F.R. § 292.20S(cn(3). Applicant tettes Itsunderstafing that, If it is to rely upon passing o the fUndental use test asa ba$Is forcomplyingwit IĆ  C.F.ft, § 292.205(d)(2),then the facilty must comply With the fundamenta use test both In the 12-month period beginning Wih th date the fadlIty flt prodces .ctrlc energy, ~nd In all subsquent calendar years. No. Yourfacllit does not pass the fudamental use tes. Instead, you mus prove In the Miscellaneous setIon strting on pae 19 a narrative exlanation of and supprt for wli yor facility meet the requirement th the élecrica thermal, chemical and mechanical output of an EPAct 205 cogeneration facll Is use fuameally for industal, commercial, residential or instittional purps and Is not Intendd fundanentallfor sale to an electric utilit, taking Into account technologicl, efiecy, economic, and variâble thermal energy reirements as well as stte law$applicble to sal of electrlenergy ftom a QF to its host facility. Applicants provg a narrati explnatIon of why thir facilit should be found to o comply with 18 C.F.R. § 292.20S(d)(2) in spte of non-eompllance wlth the fundamental use test may want to review paragraphs 47 through 61 of Order No. 671 (accessible from the CommissIon's QF web$lte at ww.ferc.gov/QF), which provi discussion of the facts and circumstances that may support their explanation. Applicant should also note that the percentage reported above Will establish the standard that that facilit must comply with, both for the 12-month period beginning wit the date the facility first produces electrlc energy, and In all subsequent calendar years. See Order No. 671 at paragraph 51. As such, the applicant should make $Ore that it reports appropriate values on nnes 11 9 and 11 h above to serve as the relevant annual standard, taking into account expeed variations III production conditions. FERC Form 556 Page 14 - Topping-Cyde Cogeneration Facilitles . Information Required for Topping-Cycle Cogeneration Fàçility if you indkated in line lOa that your facilty represents topping-eycle cogeneration teçt.uiology, then you mu!!t respond to the Items on pages 14 and 15 Oterwse sk pages 14 and 15., The thermal energy output ofa topping-ele cogertln facilty is the net energy made avail~leto an industrial orcommercial process orused in a heating or cooling applkation.Pursunt to sections 292.202(c), (d) and (n) of the Commission's regulations (18 C.F.R.§§292.202(c),(d)and (n)),the therma energy.output ofa qualifing toping- cye cogeneration facilty must be usefl.In conneconwiththis requirement,describethe therroal output of the topplng-ecle cogeneration facilty by responding to lines 12a and 1 2b below. 118 Identify and describe each thermal host, and specify the annual averagè rate of thermal outeot roade avaIlable to each host for each us. For hosts with multIple uses of thermal outPt provkle th dëltafor each usein separaterows.Averageannualrate of thermal outpu attributable to use(net of Name ofentìtY (thermal host)Thermal host's relationship to fao1ity;neafcomaed ¡nprôce~ taking thermal ouput Thêrmal hosts us of thermal Qutput return ormake'i$water) n Selec thermal host's relationship to facility Selec thermal host's use of thermaloi.tptJt Bwlh 2)Select thermal host's relationsnjp tofêldlit. (J !Slect thrmal host's trseQfthermat QUtpn Btutb å'3) Seect thermal host's relationship to facility i Select thermal host's use of thermal oiplt BtulC\.. C ::Selec themal hosts relatJonship fQ fa.cRity...0.4)0-..0-::Select thermal host's use of thermal outpU Btulh ~0 Select thermalhosts relationship to facty- 5)Io ~0 E Select therml host's use of thermal ()utput ,;Btulh VI ~ VI OJ Seectthermal hosts relatiQOshipto faólìty(J .i 6)c i-Select thermal host's use oftheriwl ouput Btulhi.0 Chec hereandcontJnue In the Miscellaneous setionsttrigiQO page19 If additiona space Is neeed(JVI:;12b Demon$tratlon of Llsef.ness of thrmal output: At a mlnlmuf',prQ\'~eaal'ef desiption of each useQf me thermal outplt ldentlfd above. In some cases, thIs brief deSCrlptlonts sUffIcJent to demanStrêlte usefulnes~ However, if your facility's us of thermal output is not common, and/Qr if the usfulness of such thermal outt is not reasonably clear.then you must provide additional details as necesry.to demonst~teusefulnes. YO!J application maybe rejeted and/or additional information maybe requlred.lfao Insuffclentshowing ef usefilness is made.(Exceptio:If you have previouly rei:eive a CommilQn certii:tionappovin a specific use oflihermal output related to the insant facility, then you need onl provide a brtderiptlon of thatuse and a refrence by date and docket number to meorder cerifing your facilitywi theindicated us SUch ex~ption Ilynot be used if any chane creates a material deviation from meprevQuslyauthorl:zed use.If addltø.nal space Is needed, continue In the Miscellanessection startng on page 19. o FERC Form 556 Page 15 . Topping-Cycle Cogeneration Facilitie "0 c: æ 0 0' +:t: ...- :; .. U~- .. to8.uo (l CL :;u ~ Ö' :=i U0' c: c: CI -a.g- g-~i. Applct$.fofalitiesÆpreænt toppingle tethnogy mustdemstte.comlance Wi thetopplng- 0 cy opera~~rd an,if ~pI~le, efftl stani:. setion 292.2.0~1) oftheCo~'s relatins (18 C.F.R. § 292.205(a)(1)) estables the opeatng standard for topping-ele cogenaton fadlltes: the useftherml engy Outpt must be no less than 5 percent of the total eny output. Sectio 29225(a)() (If! t.F.R. § 29~.2QS(a)(i)) establ~hes the efcystndard for tappihg-ee cogeneration facllltleforwhich intalatln coin~ed ()I' or a~ Mardi 13, 19a: the useful power ouut of the facility pJ one-hlf the usel tb~ enrg outPutiiiuSt (A) be no less than 42.5 percent of the tota energ itput ofrira ga and oil to the facilit an (8) if th useful thel enrg.y output i~less than .15 perent of the total energy outpu of the facll, be.no les thn 45 percentofthe total en~y Inpu of natural gas and 011 to the facillty. To demonstrate corrp1nce wih the toplng,.yr operatingandor effien stndards or todestrate that your facilty Is exempt fr the effciency standard based on the date tht Instalation commenced, res.pond to lines 133 through 131bew. If Y( ind In lin lOa that your facil reresents boh toppiiig-cyde and bottorring-e cogeneratto t~nol, then respond to lines 133 throgh 131 bel considring only the energ inputs and outpts attutb~ to th topplng-eleportlon of your facility. Your mass and heat bace diagm must make cler whicmas and energy flow vales and sytem components are for whih polo (topngór bottoming) of the coèheration system. 1 ~~ .lndkate the annuala\frae~e of ose thermai energ outPutrrde avdable to the hostCs)' net of any heat contind In consate retrn or makeup water Btulh 13b Indate the anntial avraE! rate of net elecIcal energy outpu kW o13c Mutip line l3bby 3,4 12tø coiwrt from kW to Btulh o Btut 13d Indicte the annual avra tate of mechanical ene output taken direcly off of the shaf of a prime rtver for purpô not dll'etrelated to power production (this value Is usually ~r()). 13e Multip Utl 13d by 2,544 to conver from hp to Btulh hp o Rtuth o 131 Indic th annual avra rae of energy inpu fr natul gas and oil Btuth 13g Topplde operting value = 100* 13a I Cl3a + 13c + Be) 13b Topng-ee efencyvalue = 100 * (O.S*13a + 13c + Be) /13£ 0%o 0% 131 COrnpllnçelNitlaperating st,ndard~ Is the operatIng value shown In line 13g greter than o,r equal to 5%1 DYes rcórrpli with oPetatl~ stndard) 0 No (dos iiot complwith oprating standard) 13jOid installåtl' òf the facill lii.lt curre forncommence on or afer March 13, 1981 D Yes. Your faclli Is subject to the efcienc requirements of 18 C.F.R. § 292.205(a)(2). Demonstrtecompliance with the efiency requirement by responding to line 13k or 131, as applicable, below. o No. Your factlty Is exempt from the effciency standard. Skip nnes 13k and 131. 13k Compiiance with effcIency standard (for low operating value): If the operating value shown In line 13g is less than 15%, then indicate below whether the effciency value shown In line 13h greater than or equal to 45%: D Yes (complies wit efciency standard) 0 No (does not comply with effciency stahdard) 131 Compii.ance with efciency standard (for high oprating value): If the operating value shown in line 13g Is greater thah or equal to 15%, then Indicate beow whether the effiency value shown In line 13h is greater than or equal to 42.5%: D Yes (complies with efciency standard) 0 No (does not comply with efflency standard) o FEBC Form 556 Page 16 - Bottomin-Cycl CognerationFad · InformatronRequired for Bottbming-Cyde Cogeneration FaçUity If you indiced In line lOa that yourfadlity represents bottming-cye cogneratin tecnology. then yø must respond to the items on pages 16 and 17. Othrwise skip paes 16 an 17. The thermal energy output ota bottomln cogenration facility is the ellrgy relted to theptotess(es) from '0 which at least some of the reje heat is then us for poer prodcton. Pursant to secons 292.262(c) and (e) of the Commision's regulation (18 C.F.R. § 292.262(c) and (e)) , the themal energoûtput of a qulifyng bottming- cyde cogeneration facilty must be usefL. In connec with this requirement, deibe theprocesstes) from which at least some of the reject heat Is used for power proucti by reponding to lines 14a and 14b belo. 14a IdentIfy and describe each thermal host and each bottoming-cyde cogenration procese~gage In by each host. For hosts with multfple bottoming-cyle cogeneration processes, provide the data for each process Inseparate rows. .l;as theetlergy Input toName of entity (thermalhost the.tber:mal host beenperformng the proc~ from augrnerteQ for purposeswhich at least some ofthe ofllKeing power reject heat ls used for power Thermal hosts relattpps~p to faØI.ity¡ prodliç~n aip,açity?production Thermal host's prpce.ss type (lfYes...d~cribeon p. 19) 1) Selea thermal host's relationship to facUit Yes 0 No'O Selec thermal hasts proces type 2) Select thermal host's relationship to facility y es 0 No 0 Select thermal hostsprOÇess type 3) Select thermal host'sre1atJonsÒlP to farility Yes 0 NoD Select thermal host's process type o Check here and contirueir the MiseUaneous section starting on page 19 ffacdttIOlI.sp.aeis needed Q) ~ ~ +o._ ::E 0. o +o i: :so ~CO I\ è E II Q)II .. Q) l-e: ~II~ 14b Demonstration of usefulness/of thermal output: At a minimum,pr~ abriE de~Ptl otj¡ach process Identied above. In some cases, this brief description Is suffcient to demonstate usef\lIness. HOWever, if your faciltys process is not common, and/or if the usdlness of suh thermatputpt.ls iit ~~blycle' theilY~ must provide additioal details as necessary to demonstrate usefulness. Your applcatln may be reJeetedandtor additional information mëlY be reuired If an Insuffht snowing of uSeflnes Is mad. tExceptiotr~YOU ha previousy receive a Commiskm c:ertifeaon approving a speifc bottominrrde process related/to the instant facility, then yo need only provid a brief description of that prcess and a reference.by date and doc numbe to th order certifying your facilty WIth the indicated process. Such exemption may not be used if any material changes to the process have been made.) If additional ~e Is need, contiue in the Miscellaneous section startIng on page 19. I FERC Form 556 Page 17 . 8ottomln~).Cyde Cogeneratlo/' FacUlties "' c: c:tt 00'.- c: +o._ tt..- ~ a(J - c. coaU (J . (J_ ='u 1ã~~, ~ ~..'.'a '- (JE '0 o a=:¡ w co Appltnts for failities reprsenting botoming-cycle technology and fQ.r which lostaUation commencèd on or after March 13, 1990 must demonstrte!=omtance with the bottomlng-ccle effiencystândards. Section 292.205(b) of the Commisson's regulations (18 C.F.R. § 292.205(b)) establishes the efciency standard for bottomlng-clt cogeneration fali: the usful poer outut of th fadlt.y must be no less than4S percent of the enegy input of natura gas and oil fótsupplentåryflrig. To demostrate cotpliance with the bottoming-ceefdecy standard (if applicable). or to demonstrate that your facility is exempt from this standrd baed on the date that installatlon of the facilit began, respod to lines 1 Sa through lSh belo. If you Indkated .ln lin ioa that your falty represnts both topping-ccl.e and bottomi,ng-cyde cogeneration tec~nology, tiier resr1 to line 1. Sa tiirough 1Sh belQW considerig only the enegy Inputs and oututs attributble to the bottoting-le portio of your facility. Your mass and hèa balance diagram must make clear which mass and energy flw values and system components are for whch portion of the cogeneration system (towing() botting). 15a Did InstallatIon of the facUlty In Its current form commence on or after March 13. 1981 o Yes Your facßitlssUbec to th efdencyreufrementof 18 C.F.R § 29UÒStb). Demonstrate compliancewith the effciency requirement by responding to lines 15b through 1 Sh bel. o No. Your facll1ty is expt fit the effciency standard. Skip the re of page 17. 'ISh Indieatethe annual awrge rate of net elrical energy output 1SC Mutlpyllne 15b by 3,412 to conver from kW to Btulh 1 $d Indcate the annual average rate of mechnical energy output taken direcly off oHhe shaf.of a prime moer for purpo not dlretlyrelatd to powerprodlJn (this value is usuàlly zero) '1.5 Multilylle 1 Sd by 2,54 to convert from hp to Btulh 1$flnlcatetb ànnlaveagerate of supplmetary energy inpUt fro natural gas or 011 15g Bottoming-ccle efcienc value = 100 * (1 Se + lSe) / 1 Sf o (l0% 1$ltCo~ltante Wlh effelocy standard:lndieatè belw whether the effi~cy valtt show~ In Rne 1 Sg is greater than or equal to 45%: o Yes (compies with effiency standard) 0 No (doe oot comply with effiency standard \ FERC Form 556 Page 18 - An Fadnties' Certificate of Completeness, Accuracy and Authority Applicant must certify compllariewith and understaiidlng offillng requirementsbychecingf)e~ to eadl item below and sigflng at the bottomc;f this section. Forms with Incomplete Cerificates of Compietene~, Accuracy and Authority wlH be rejeted by the Seretary of the Commisson. Signer identified below certifies the follong: (check all itms and appÐcable subites) He or she has read the filing, indudng any information containe in any attched documents, SUhas cø.eneratlon ~ mass and heat b(îlance diagrams, and any informtion contained in the Miscellaneous secion Strting on page 19, and knows it contents. ¡g He or she has provided all of the required Information for certification, and the proVldedlnformaton Is true as stated, to the best of his or her knowledge and belief. ~ He or she possess full power and authority to sign the flling; as required by Rule2005(a)(3) of the Commision's Ru~ of Practice and Procedure (18 C.F.R. § 385.2005M(3n, he or she Is one of the followig: (check one) o The persn on whose behalf the filing is made ~ An offcer ofthecQrporatlon, trust, assoation, or oter organized group on bealf of which the filing is ma o An offcer, agent, or employe of the governmental authority, agency, or instruentaliy on behalf of which tbe flUng is made o A representative quållfed to practice before the Commision under Rue 2101 of the Conimissicin's Rule ofPractice and Procedure (18 C.F.R. § 385.2101) and who possesses authority to sign ~ He or she has reviawedall.automatiçcaeuati and agrees with their results, unloterwse noted Îl the Miscelfaneous section starting on page 19. He or she has provied a copy of this Form 556 and all attachments to the utiHtieswl1t which the facilltyVtI ~ interconnect and transat (see lines 4a throu 4d), as well as to the..regulatoiy authoties of the st ¡nwhich the .. facilty and those utlltties reside. See the ReqUired Notce to PubtlcUtlhtis and State RegufoiyAuthòiities section on page 3 for more information. Provide your signature, address and signature date below. Rule 200S(c) of the Commission's Rules of Practice and Procedure (18 C.F.R. § 385.2oo.5c)) provIdes that persons flUng their doments elronlcaØy maya~T~~çbracters representing his or her name to sign the filed documents. A person filing thls document electronICllY shdulg sign (by typing his or her name) In the space provided below. . Your Signature Your address Date 150 N.Dairy Ashford Road Richard Williams Bldg C-356D,Houston,TX 77079 10/27/2010 Audit Notes Commission Staff Use Only:o I FER Fo 5$6 Miscellaneous Use this spe to prvide any If'foatfon for which there was not suflet space In the prevOU setis of the for to pr Foreaçh such Item of infotlon dearl Idti the lie numbr tlut the Infmation bengs to. Voumay also use thl spe to prO¥ aiiy additonl Informati you belleVè is relevant to the eertlflcatlon of your fa(lllty. VOl r~ bew Is not Iimlte to one page AddItional page(s) wil automtically be Insertd Into thIS form if th 1e9t of yo.ur respose excee the spce on thl pa Use as many pas as you requIre. Page 19. An Facltles 1.' i:?.,' 0v BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-10-54 DELTA WINDLLC AFFIDAVIT OF KEVIN SIMMONS EXHIBIT NO.5 SEE AFFIDAVIT OF KEVIN SIMMONS FILED IN CASE NO. IPC-E-10-55 FOR EXHIBIT NO.5