20150402Application.pdf

hffi*.
An IDACORP Company
DONOVAN E. WALKER
Lead Couneal
April 2, 2015
VIA HAND DELIVERY
Jean D. Jewell, Secretary
ldaho Public Utilities Commission
472 West Washington Street
Boise, ldaho 83702
Re: Case No. IPC-E-15-10
ldaho Power Co m pany's Application for Approva! of Amend ments
Dear Ms. Jewell:
Enclosed for filing in the above matter please find an original and seven (7)
copies of ldaho Power Company's Application forApproval of Amendments.
DEW:csb
Enclosures
1221 W. ldaho St. (83702)
P.O. Box 70
Boise, lD 83707
Very truly yours,
onovan E. Walker
DONOVAN E. WALKER (lSB No. 5921)
ldaho Power Company
1221 West ldaho Street (83702)
P.O. Box 70
Boise, ldaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Attorney for ldaho Power Company
!N THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF AMENDMENTS TO FIRM
ENERGY SALES AGREEMENT/POWER
PURCHASE AGREEMENTS REGARDING
THE MID.C MARKET INDEX.
-..f-
ti'jr- !l--l n! ..,,.rt r, L D'! t-. n ?l:l r't'U.J
,':1.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-15-10
APPLICATION FOR APPROVAL
OF AMENDMENTS
ldaho Power Company ("ldaho Powe/'), in accordance with RP 52 and the
applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA'),
hereby respectfully applies to the ldaho Public Utilities Commission ("Commission") for
an order approving amendments ("Amendments") to a Firm Energy Sales Agreement
("FESA") between ldaho Power and a PURPA qualifying facility ('QF") and to Power
Purchase Agreements ("PPA") between ldaho Power and two geothermal projects.
These Amendments are virtually identical, and cover the same issue as those submitted
and approved as part of the settlement stipulation ("Stipulation") in Case No.
IPC-E-13-25, and the First Amendment to the FESA between ldaho Power and United
Materials of Great Falls, lnc., Case No. IPC-E-14-21.
APPLICATION FOR APPROVAL OF AMENDMENTS - 1
ln support of this Application, ldaho Power represents as follows:
I. INTRODUCTION AND BAGKGROUND
1. ldaho Power has executed three individual amendments to an existing
FESA and two PPAs. The Amendments are attached hereto as Attachments 1 through
3 as indicated below. The below table Iists the applicable party as well as the
Commission case number in which each FESA/PPA was approved:
2. The Raft River Energy I LLC and USG Oregon LLC PPAs contain
reference to a "Market Energy Cost" and/or "Mid-Columbia Market Energy Cost" price
that refers to provisions regarding lnadvertent Energy Price and Test Energy Price.
3. The Hidden Hollow Energy LLC FESA contains 90/110 firmness
requirements that apply a Market Energy Cost and/or Mid-Columbia Market Energy
Cost price to energy deliveries that do not meet the 90/110 requirements. The FESA
defines the Market Energy Cost with reference to the Dow Jones Mid-Columbia Index
prices for non-firm energy. The FESA provisions for Surplus Energy and the Market
Energy Cost generally correlate to ldaho Powe/s Schedule 86, Cogeneration and Small
Power Production Non-Firm Energy.
4. The Dow Jones Mid-Columbia lndex was discontinued by the publisher as
of October 2013. Case No. IPC-E-13-25 was initiated to address a replacement market
index reference for the non-firm energy price reflected in Schedule 86. The parties to
Attachment QF Party/FESA/PPA Seller FESA/PPA
Approval Order
Case Number
1 Raft River Energy I LLC Order No. 30485 !PC-E-07-17
2 USG Oregon LLC Order No. 31087 lPc-E-09-34
3 Hidden Hollow Energy LLC Order No. 29928 tPc-E-05-29
APPLICATION FOR APPROVAL OF AMENDMENTS.2
Case No. IPC-E-13-25 executed a Stipulation, approved by the Commission in Order
No. 33053, which sets forth reference to the lntercontinental Exchange (.lCE') Mid-
Columbia lndex prices, with a revised formula for calculating the non-firm price in
Schedule 86. In addition, the parties to Case No. IPC-E-13-25 agreed to amend the
FESAs between ldaho Power and each intervening party to reference the ICE index
using the same Ianguage as, and consistent with, the Schedule 86 language agreed
upon in the Stipulation. ln approving the Stipulation, the Commission stated, "We also
find it reasonable to allow any additional existing PURPA QFs that currently have a
contract with Idaho Power containing reference to the Dow Jones non-firm Mid-C
electricity price index, should they so choose, to amend their respective agreements
consistent with the terms of this Settlement Stipulation and similar to the contract
amendments approved by this Order." Order No. 33053, p. 4.
II. THE AMENDMENTS
5. ldaho Power and each project have agreed to amend the FESA/PPA to
include, nearly word for word, the reference to the ICE index and revised formula that
was adopted for Schedule 86 in Case No. IPC-E-13-25. The Amendments simply set
forth, virtually verbatim, the provisions from Schedule 86 to define "Market Energy Cost"
and/or "Mid-Columbia Market Energy Cost" as appropriate for each FESA/PPA.
Pursuant to the parties' agreement, and pursuant to the FESA/PPA which requires both
parties to agree upon a replacement index should the Dow Jones index be
discontinued, an effective date of October 2013 for use of the ICE index and calculation
referenced in the Amendments is requested. This provides for a switch to and use of
the agreed upon ICE index from the time the Dow Jones index was discontinued. The
Commission approved the October 2013 effective date in the same First Amendment to
APPLICATION FOR APPROVAL OF AMENDMENTS - 3
the FESA between Idaho Power and United Materials of Great Falls, lnc., Case No.
lPc-E-1 4-21.
III. PROCEDURE
6. ldaho Power requests that the Commission approve the proposed
Amendments upon Staffs review and without further process. Staff previously
recommended, "Based on the Commission's determination of reasonableness in
!PC-E-13-25 to the definition of 'Market Energy Cost' and change in index, and because
the Commission already deemed it reasonable for'any additional existing PURPA QFs'
to amend their respective agreements with similar terms, Staff further recommends that
the Commission approve the First Amendment without further process." Staff Decision
Memorandum, p.3, Case No. IPC-E-14-21.
7. Alternatively, should the Commission determine that further process is
required, ldaho Power believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under
Modified Procedure; i.e., by written submissions rather than by hearing. RP 201, ef seg.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
8. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
Donovan E. Walker
Lead Counsel
Regulatory Dockets
ldaho Power Company
1221West ldaho Street
P.O. Box 70
Boise, ldaho 83707
dwalker@ idahopower. co m
dockets@idahopower. com
Randy C. Allphin
Energy Contract Ad ministrator
ldaho Power Company
1221Wesl ldaho Street
P.O. Box 70
Boise, ldaho 83707
rallphin@idahopower. com
APPLICATION FOR APPROVAL OF AMENDMENTS - 4
V. REQUEST FOR RELIEF
9. ldaho Power respectfully requests that the Commission issue an order
accepting the Amendments to the Firm Energy Sales AgreemenUPower Purchase
Agreements submitted herewith without change or condition
Respectfully submitted this 2"d day of April 2015.n€-ru
DONOVAN E. WALKER
Attomey for ldaho Power Company
APPLICATION FOR APPROVAL OF AMENDMENTS - 5
CERTIFICATE OF SERVICE
t HEREBY CERTIFY that on the 2nd day of April 2015 I served a true and correct
copy of the within and foregoing APPLICATION FOR APPROVAL OF AMENDMENTS
upon the following named parties by the method indicated below, and addressed to the
following:
Raft River Energy I LLC
(Raft River Unit #1)
Attn: CEO
Raft River Energy ! LLC
c/o U.S. Geothermal lnc.
390 East Parkcenter Boulevard, Suite 250
Boise, ldaho 83706
Attn: CFO
Raft River Energy ! LLC
c/o U.S. Geothermal lnc.
390 East Parkcenter Boulevard, Suite 250
Boise, ldaho 83706
USG Oregon LLC
(Neal Hot Springs Unit #1)
Attn: CEO
USG Oregon LLC
390 East Parkcenter Boulevard, Suite 250
Boise, ldaho 83706
Attn: CFO
USG Oregon LLC
390 East Parkcenter Boulevard, Suite 250
Boise, ldaho 83706
Hidden Hollow Energy LLC
(Hidden Hollow Landfill Gas)
Hidden Hollow Energy, LLC
c/o Fortistar Methane Group LLC
One North Lexington Avenue, Sixth Floor
White Plains, New York 10601
Hand DeliveredX U.S. Mail
Ovemight Mail
FAX
Email [e-mail]
Hand DeliveredX U.S. Mail
_Ovemight Mail
FAX
Email khawklev@ usoeothermal. com
Hand Delivered
U.S. Mail
Overnight Mail
FAX
Email [e-mail]
Hand DeliveredX U.S. Mail
_Overnight Mail
_FAXX Email [e-mail]
_Hand DeliveredX U.S. Mail
_Ovemight Mail
_FAXX Email [e-mail]
APPL]CATION FOR APPROVAL OF AMENDMENTS - 6
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-15-10
IDAHO POWER COMPANY
ATTACHMENT 1
FIRST AMENDMENT
TO THE
FIRM ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
RAFT RIVER ENERGY I LLC
This First Amendment of the Firm Energy Sales Agreement ("First Amendment") is
entered into on thisfrday of El,.,ury ,2015 by and between Idaho Power Company, an Idaho
corporation ("Idaho Power"), and Raft River Energy I LLC, a Delaware limited liability
company ("Raft River" or "Seller") (individually a*Partt''and collectively the "Parties").
WHEREAS, Idaho Power and Seller entered into a Firm Energy Sales Agreement on
Septernber 24, 2007 (the "Agreement") for the purchase and sale of energy produced by the
Seller's facility that was approved by the Idaho Public Utilities Commission ("[daho PUC") in
Order No. 30485 on January 9,2008;
WHEREAS, On Septunber 13, 2013, the Publisher of the Dow Jones and Platts indices
provided notice to Idaho Power that it was discontinuing publication of the Dow Jones non-firm
index and transitioning to the Platts non-firm index and since such transition, the Platts index has
reported zero volumes;
WHEREAS, Idaho Power and other parties to Docket No. IPC-E-13-25 entered into a
Settlernent Stipulation on May 9, 2014 ("Stipulation") that changed the definition of Mid-
Columbia Market Energy Cost in Schedule 86 to replace the Dow Jones non-firm index with the
Intercontinental Exchange firm index for purposes of calculating market energy cost, and this
Stipulation was approved by the Idaho PUC in Order No. 33053 on June 10,2014;
WHEREAS, the Idaho PUC's order approving the Stipulation also approved amendments
replacing the Dow Jones non-firm index with the Intercontinental Exchange firm index in
contracts of parties to Docket No. IPC-E-13-25, and found it to be reasonable to allow existing
PURPA qualifying facilities that currently have a contract with Idaho Power containing reference
to the Dow Jones non-firm index to amend their contracts consistent with the terms of the
Stipulation; and
WHEREAS, Seller and Idaho Power desire to amend the definition of Market Energy
Cost in this Agreernent consistent with the Stipulation;
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties hereto agree as follows:
l. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part
of this Agreernent by this reference to the same extent as if these recitals were set forth in full at
this point.
Firm Energy Sales Agreement
Project: 10000002 Raft River Unit #l
First Amendment - Page I of 3
2. Definitions. Article l, section 1.37 shall be deleted in its entirety and the following section
shall be substituted in its stead:
1.37 "Market Energy Cost" - 82.4yo of the monthly arithmetic average
of each day's Intercontinental Exchange ("lCE") daily firm Mid-C Peak
Avg and Mid-C Off-Peak Avg index prices. Each day's index prices will
reflect the relative proportions of peak hours and off-peak hours in the
month as follows:
Heavy Load (HL) Hours: The daily hours from hour ending 0700-2200
Mountain Time, (16 hours) excluding all hours on all Sundays, New Years
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
Light Load (LL) Hours: The daily hours from hour ending 2300-0600
Mountain Time (8 hours), plus all other hours on all Sundays, New Years
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
The actual Mid-Columbia Market Energy Cost calculation being:
n
.824 * ( I {GCE Mid-C Peak Avg- * HL hours for day) + (ICEx:l
Mid-C Off-Peak Arg* * LL hours for day)) I (n*24))
where n: number of days in the month
If the ICE Mid-C Index prices are not reported for a particular day or days,
prices derived from the respective averages of HL and LL prices for the
immediately preceding and following reporting periods or days shall be
substituted into the formula stated in this definition and shall therefore be
multiplied by the appropriate respective numbers of HL and LL Hours for
such particular day or days with the result that each hour in such month
shall have a related price in such formula. If the day for which prices are
not reported has in it only LL Hours (for example a Sunday), the respective
averages shall use only prices reported for LL hours in the immediately
preceding and following reporting periods or days. If the day for which
prices are not reported is a Saturday or Monday or is adjacent on the
calendar to a holiday, the prices used for HL Hours shall be those for HL
hours in the nearest (forward or backward) reporting periods or days for
which HL prices are reported.
If the ICE Mid-C Index reporting is discontinued by the reporting agency,
both Parties will mutually agree upon a replacement index, which is
similar to the ICE Mid-C Index. The selected replacement index will be
consistent with other similar agreements and a commonly used index by
the electrical industry.
Firm Energy Sales Agreement
Project: 10000002 Raft River Unit #1
First Amendment - Page 2 of 3
3. Commission Approval. The obligations of the Parties under this First Amendment are
subject to the Idaho PUC's approval of this First Amendment and such approval being upheld on
appeal, if any, by a court of competent jurisdiction. The Parties will submit this First
Amendment to the Idaho PUC and recommend approval in its entirety pursuant to RP 274.
4. Effect of Amendment. Except as expressly amended by this First Amendment, the
Agreonent shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined
herein shall have the same meaning as used in the Agreement.
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs, executors, administrators, successors, and
assigns, who are obligated to take any action which may be necessary or proper to carry out the
purpose and intent thereof.
7. Authority. Each Party represents and warrants that (i) it is validly existing and in good
standing in the state in which it is organized, (ii) it is the proper party to amend the Agreement,
and (iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute a single
instrument.
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be
duly executed as of the date above written.
RA IDAHO POWER COMPANY
Name:
Title:ritre:,(VD fr**r&o*tu-.
Firm Energy Sales Agreement
Project: 10000002 Raft River unit #1
First Amendment - Page 3 of 3
By:
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-I5-10
IDAHO POWER COMPANY
ATTACHMENT 2
FIRST AMENDMENT
TO THE
FIRM ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
USG OREGON LLC
This First Amendment of the Firm Energy Sales Agreement ("First Amendment") is
entered into on this fday of frjru,,.y, ,2015 UV *a between Idaho Power Company, an Idaho
corporation ("Idaho Power"), and USG Oregon LLC, a Delaware limited liability company
("USG Oregon" or "Seller") (individually a "Party" and collectively the "Parties").
WHEREAS, ldaho Power and Seller entered into a Firm Energy Sales Agreement on
December ll, 2009 (the "Agreement") for the purchase and sale of energy produced by the
Seller's facility that was approved by the ldaho Public Utilities Commission ("Idaho PUC") in
Order No. 31087 on May 20,2010;
WHEREAS, On September 13,2013, the Publisher of the Dow Jones and Platts indices
provided notice to Idaho Power that it was discontinuing publication of the Dow Jones non-firm
index and transitioning to the Platts non-firm index and since such transition, the Platts index has
reported zero volumes;
WHEREAS, Idaho Power and other parties to Docket No. IPC-E-13-25 entered into a
Settlement Stipulation on May 9, 2014 ("Stipulation") that changed the definition of Mid-
Columbia Market Energy Cost in Schedule 86 to replace the Dow Jones non-firm index with the
Intercontinental Exchange firm index for purposes of calculating market energy cost, and this
Stipulation was approved by the ldaho PUC in Order No. 33053 on June 10,2014;
WHEREAS, the Idaho PUC's order approving the Stipulation also approved amendments
replacing the Dow Jones non-firm index with the Intercontinental Exchange firm index in
contracts of parties to Docket No. IPC-E-13-25, and found it to be reasonable to allow existing
PURPA qualifying facilities that currently have a contract with Idaho Power containing reference
to the Dow Jones non-firm index to amend their contracts consistent with the terms of the
Stipulation; and
WHEREAS, Seller and Idaho Power desire to amend the definition of Market Energy
Cost in this Agreement consistent with the Stipulation;
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties hereto agree as follows:
1. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part
of this Agreement by this reference to the same extent as if these recitals were set forth in full at
this point.
Firm Energy Sales Agreement
Project: 10000003 Neal Hot Springs Unit #l
First Amendment - Page I of 3
2. Definitions. Article l, sectionl.34 shall be deleted in its entirety and the following section
shall be substituted in its stead:
1.34 "Market Enersy Cost" - 82.4oA of the monthly arithmetic average
of each day's Intercontinental Exchange ("ICE") daily firm Mid-C Peak
Avg and Mid-C Off-Peak Avg index prices. Each day's index prices will
reflect the relative proportions of peak hours and off-peak hours in the
month as follows:
Heavy Load (HL) Hours: The daily hours from hour ending 0700-2200
Mountain Time, (16 hours) excluding all hours on all Sundays, New Years
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
Light Load (LL) Hours: The daily hours from hour ending 2300-0600
Mountain Time (8 hours), plus all other hours on all Sundays, New Years
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
The actual Mid-Columbia Market Energy Cost calculation being:
n
.824 * ( I {GCE Mid-C Peak Avg* * HL hours for day) + (ICE
x:l
Mid-C Off-Peak Avgx * LL hours for day)) I (n*24)'1
where n: number of days in the month
If the ICE Mid-C Index prices are not reported for a particular day or days,
prices derived from the respective averages of HL and LL prices for the
immediately preceding and following reporting periods or days shall be
substituted into the formula stated in this definition and shall therefore be
multiplied by the appropriate respective numbers of HL and LL Hours for
such particular day or days with the result that each hour in such month
shall have a related price in such formula. If the day for which prices are
not reported has in it only LL Hours (for example a Sunday), the respective
averages shall use only prices reported for LL hours in the immediately
preceding and following reporting periods or days. If the day for which
prices are not reported is a Saturday or Monday or is adjacent on the
calendar to a holiday, the prices used for HL Hours shall be those for HL
hours in the nearest (forward or backward) reporting periods or days for
which HL prices are reported.
If the tCE Mid-C Index reporting is discontinued by the reporting agency,
both Parties will mutually agree upon a replacement index, which is
similar to the ICE Mid-C Index. The selected replacement index will be
consistent with other similar agreanents and a commonly used index by
the electrical industry.
Firm Energy Sales Agreement
Project: 10000003 Neal Hot Springs Unit #l
First Amendment - Page 2 of 3
3. Commission Approval. The obligations of the Parties under this First Amendment are
subject to the ldaho PUC's approval of this First Amendment and such approval being upheld on
appeal, if any, by a court of competent jurisdiction. The Parties will submit this First
Amendment to the Idaho PUC and recommend approval in its entirety pursuant toRP 274.
4. Effect of Amendment. Except as expressly amended by this First Amendment, the
Agreement shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined
herein shall have the same meaning as used in the Agreement.
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs, executors, administrators, successors, and
assigns, who are obligated to take any action which may be necessary or proper to carry out the
purpose and intent thereof.
7. Authority. Each Party represents and warrants that (i) it is validly existing and in good
standing in the state in which it is organized, (ii) it is the proper party to amend the Agreement,
and (iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute a single
instrument.
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be
duly executed as of the date above written.
USG IDAHO POWER COMPANY
By:By:
Name:
ritle: DA+.erDe^rT- ritr", SVP frnkrSt,p+(l.{-
Firm Energy Sales Agreement
Project: 10000003 Neal Hot Springs Unit #l
First Amendment - Page 3 of 3
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
GASE NO. IPC-E-I5-10
IDAHO POWER COMPANY
ATTACHMENT 3
FIRST AMENDMENT
TO THE
FIRM ENERGY SALES AGREEMENT
BETWEEN
IDAHO POWER COMPANY
AND
HIDDEN HOLLOW ENERGY LLC
This First Amendment of the Firm Energy Sales Agreement ("First Amendment") is
entered into on this lftiay of fr/,rua.:-/ ,2015 by and between Idaho Power Company, an Idaho
corporation ("Idaho Power"), and Hidden Hollow Energy LLC, a Delaware limited liability
company as successor-in-interest to G2 Energy (Hidden Hollow) LLC, ("Hidden Hollow Energy
LLC" or "Seller") (individually a'oParty" and collectively the "Parties").
WITNESSETH:
WHEREAS, Idaho Power and Seller entered into a Firm Energy Sales Agreement on
October I l, 2005 (the "Agreement") for the purchase and sale of energy produced by the Seller's
facility that was approved by the Idaho Public Utilities Commission ("Idaho PUC") in Order No.
29928 on December 6,2005;
WHEREAS, by Certificate of Conversion dated August l, 2008, G2 Energy (Hidden
Hollow) LLC was converted to Hidden Hollow Energy LLC;
WHEREAS, On September 13,2013, the Publisher of the Dow Jones and Platts indices
provided notice to Idaho Power that it was discontinuing publication of the Dow Jones non-firm
index and transitioning to the Platts non-firm index and since such transition, the Platts index has
reported zero volumes;
WHEREAS, Idaho Power and other parties to Docket No. IPC-E-13-25 entered into a
Settlement Stipulation on May 9, 2014 ("Stipulation") that changed the definition of Mid-
Columbia Market Energy Cost in Schedule 86 to replace the Dow Jones non-firm index with the
lntercontinental Exchange firm index for purposes of calculating market energy cost, and this
Stipulation was approved by the ldaho PUC in Order No. 33053 on June 10,2014
WHEREAS, the Idaho PUC's order approving the Stipulation also approved amendments
replacing the Dow Jones non-firm index with the Intercontinental Exchange firm index in
contracts of parties to Docket No. IPC-E-13-25, and found it to be reasonable to allow existing
PURPA qualifying facilities that currently have a contract with Idaho Power containing reference
to the Dow Jones non-firm index to amend their contracts consistent with the terms of the
Stipulation; and
WHEREAS, Seller and Idaho Power desire to amend the definition of Mid-Columbia
Market Energy Cost in this Agreement consistent with the Stipulation;
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties hereto agree as follows:
Firm Energy Sales Agreement
Project: 21615100 Hidden Hollow Landfill Gas
First Amendment - Page I of 3
l. Incorporation of Recitals. The above-stated recitals are incorporated into and made a part
of this Agreement by this reference to the same extent as if these recitals were set forth in full at
this point.
2. Definitions. Article l, section 1.13 shall be deleted in its entirety and the following section
shall be substituted in its stead:
l.l3 "Market Enersy Cost" - Eighty-five percent (85%) of (82.4% of
the monthly arithmetic average of each day's Intercontinental Exchange
("ICE") daily firm Mid-C Peak Avg and Mid-C Off-Peak Avg index
prices). Each day's index prices will reflect the relative proportions of
peak hours and off-peak hours in the month as follows:
Heavy Load (HL) Hours: The daily hours from hour ending 0700-2200
Mountain Time, (16 hours) excluding all hours on all Sundays, New Years
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
Light Load (LL) Hours: The daily hours from hour ending 2300-0600
Mountain Time (8 hours), plus all other hours on all Sundays, New Years
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.
The actual Mid-Columbia Market Energy Cost calculation being:
n
0.85 * [.824 * (I {GCE Mid-C Peak Avg* * HL hours for day) +
x=l
(lCE Mid-C Off-Peak Avgx * LL hours for day)) I (n*z$)l
where n: number of days in the month
If the ICE Mid-C lndex prices are not reported for a particular day or days,
prices derived from the respective averages of HL and LL prices for the
immediately preceding and following reporting periods or days shall be
substituted into the formula stated in this definition and shall therefore be
multiplied by the appropriate respective numbers of HL and LL Hours for
such particular day or days with the result that each hour in such month
shall have a related price in such formula. If the day for which prices are
not reported has in it only LL Hours (for example a Sunday), the respective
averages shall use only prices reported for LL hours in the immediately
preceding and following reporting periods or days. If the day for which
prices are not reported is a Saturday or Monday or is adjacent on the
calendar to a holiday, the prices used for HL Hours shall be those for HL
hours in the nearest (forward or backward) reporting periods or days for
which HL prices are reported.
Firm Energy Sales Agreement
Project: 21615100 Hidden Hollow LandfillGas
First Amendment - Page 2 of 3
If the ICE Mid-C lndex reporting is discontinued by the reporting agency,
both Parties will mutually agree upon a replacement index, which is
similar to the ICE Mid-C lndex. The selected replacement index will be
consistent with other similar agreements and a commonly used index by
the electrical industry.
3. Commission Approval. The obligations of the Parties under this First Amendment are
subject to the Idaho PUC's approval of this First Amendment and such approval being upheld on
appeal, if any, by a court of competent jurisdiction. The Parties will submit this First
Amendment to the Idaho PUC and recommend approval in its entirety pursuant to RP 274.
4. Effect of Amendment. Except as expressly amended by this First Amendment, the
Agreement shall remain in full force and effect.
5. Capitalized Terms. All capitalized terms used in this First Amendment and not defined
herein shall have the same meaning as used in the Agreement
6. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit
of the Parties hereto, and their respective heirs, executors, administrators, successors, and
assigns, who are obligated to take any action which may be necessary or proper to carry out the
purpose and intent thereof.
7. Authority. Each Party represents and warrants that (i) it is validly existing and in good
standing in the state in which it is organized, (ii) it is the proper party to amend the Agreement,
and (iii) it has the requisite authority to execute this First Amendment.
8. Counterparts. This First Amendment may be executed in any number of counterparts, each
of which shall be deerned an original and all of which taken together shall constitute a single
instrument.
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be
duly executed as of the date above written.
HIDDEN HOLLOW ENERGY LLC IDAHO POWER
By:A"-C=(^-By:
S--tf C,Au^Name:
C-Fo
Date:z- rq-/r
Firm Energy Sales Agreement
Project 21615100 Hidden Hollow Landfill Gas
First Amendment - Page 3 of 3
Name:
Title: