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HomeMy WebLinkAbout20191209Application.pdfRECEIVED i0l9 DEC -9 PH 2: 00 ii,, .''.,,:iiil.ritstoN 3Iffi*@ An roAcoRP company DONOVAN E. WALKER Lead Counsel dwalker@idahopower.com December 9, 2019 VIA HAND DELIVERY Diane M. Hanian, Secretary ldaho Public Utilities Commission 11331 West Chinden Blvd., Building 8 Suite 201-A Boise, ldaho 83714 Re Case No. IPC-E-19-38 South Forks Joint Venture - Sagebrush Hydro Project ldaho Power Company's Application Regarding Energy Sales Agreement Dear Ms. Hanian: Enclosed for filing in the above matter please find an original and seven (7) copies of ldaho Power Company's Application. Very truly yours, ?A/lG- Donovan E. Walker DEW:cld Enclosures 1221 W.ldaho 5t. (81702) P.O. 8ox 70 Boire, lD 83707 DONOVAN E. WALKER (lSB No. 5921) ldaho Power Company 1221 West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5317 Facsimile: (208) 388-6936 dwalker@idahopower.com Attorney for ldaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT WITH BIG WOOD CANAL COMPANY, FOR THE SALE AND PURCHASE OF ELECTRIC ENERGY FROM THE SAGEBRUSH HYDRO PROJECT. CASE NO. IPC-E-19-38 APPLICATION ldaho Power Company ("ldaho Powe/' or "Company"), 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 accepting or rejecting the Energy Sales Agreement ("ESA" or "Agreement") between ldaho Power and Big Wood Canal Company ("Big Wood" or "Seller") under which Big Wood would sell and ldaho Power would purchase electric energy generated by the Sagebrush hydro project ('Facility") located near the city of Gooding, ldaho. ) ) ) ) ) ) ) ) ) APPLICATION - 1 RECEIVED illg tiEC -9 Plt 2: 00 r'- '!r r ;li,ll lC i ' s cotltiiSstoH ln support of this Application, ldaho Power represents as follows I. ]NTRODUCTION 1. The Seller currently has a PURPA energy sales agreement with ldaho Power for this Facility that was executed on April 1 , 1 985. The expiration date of the 1 985 energy sales agreement is May 31, 2020. 2. The ESA submitted herewith is a new contract with the same Qualifying Facility ("QF") for a new term and current terms and conditions. This ESA complies with the Commission's Order Nos. 32697, 32737, and 32802 from Case No. GNR-E-11-03. The ESA contains published rates for projects of 10 average megawatts ("aMW") or less pursuant to Commission Order No. 34350. The Facility is an existing QF that is seeking a replacement agreement. The replacement ESA contains capacity payments for the entire term of the Agreement, with no sufficiency period. See Order No. 32697 at21-22, Order No. 32737 at 5, and Order No. 32871. Pursuant to the Commission's direction in its Reconsideration Order No. 32737, the rates were calculated by Commission Staff for a QF in the "Seasonal Hydro" category based on the surrogate avoided resource ('SAR) avoided cost methodology. 3. The ESA, dated November22,2O19, was signed bythe Selleron November 18, 2019, and by ldaho Power on November 22,2019. The ESA was executed in compliance with the Commission's orders directing the implementation of PURPA for the state of ldaho and contains avoided cost rates pursuant to the Commission's Order No. 34350 dated May 31, 2019. APPLICATION - 2 II. BACKGROUND 4. Sections 201 and 210 of PURPA, and pertinent regulations of the Federal Energy Regulatory Commission ("FERC"), require that regulated electric utilities purchase power produced by cogenerators or small power producers that obtain QF status. The rate a QF receives for the sale of its power is generally referred to as the avoided cost rate and is to reflect the incremental cost to an electrlc utility of electric energy or capacity or both which, but for the purchase from the QF, such utility would generate itself or purchase from another source. The Commission has authority under PURPA Sections 201 and 210 and the implementing regulations of FERC, 18 C.F.R. S 292, to set avoided costs, to order electric utilities to enter into fixed{erm obligations for the purchase of energy from QFs, and to implement FERC rules. 5. On December 18,2012, the Commission issued Order No. 32697, which established parameters for published and negotiated avoided cost rate calculations. The Commission further established and defined numerous contract terms and conditions for energy sales agreements entered into between regulated utilities and QFs. On January 2,2013, the Commission issued Errata to Order No.32697, which corrected published avoided cost rates to include energy payments not discounted by transmission and line loss. Then the Commission issued Reconsideration Order Nos. 32737 and 32802 on February 5, 2013, and May 5,2013, respectively, which further clarified certain terms and conditions of power purchase agreements. Most recently, in Order No. 33898, the Commission directed ldaho Power to utilize July 2026 as its first capacity deficit in the Company's SAR methodology. However, this ESA is a replacement contract and its rates contain capacity payments for the entire contract term. APPLICATION - 3 I!I. THE ENERGY SALES AGREEMENT 6. On November 22,2019, ldaho Power and the Seller entered into an ESA pursuant to the terms and conditions of the various Commission orders applicable to this PURPA agreement for a "Seasonal Hydro" project. A copy of the ESA is attached to this Application as Attachment 1 . Under the terms of this ESA, the Seller elected to contract with ldaho Power for a Zl-year term using the non-levelized, seasonal hydro published avoided cost rates as currently established by the Commission in Order No. 34350 dated May 31, 2019, for replacement contracts and for energy deliveries of less than 10 aMW. 7. Prior to the Effective Date of this ESA, this Facility has been delivering energy to ldaho Power in accordance with an energy sales agreement dated April 1, 1985, that expires on May 31, 2020. The Seller plans to continue operating and maintaining a 575 kilowatt ("kW") (Maximum Capacity Amount, paragraph 8-,4, Appendix B) energy facility located near the city of Gooding, ldaho. The Facility is a QF under the applicable provisions of PURPA. 8. The nameplate rating of this Facility is 575 kW. As defined in paragraphs 1 .23 and 4.1 .4 of the ESA, the Seller will be required to provide data on the Facility that ldaho Power will use to confirm that under normal and/or average conditions, the Facility will not exceed 1 0 aMW on a monthly basis. Furthermore, as described in paragraph 7.7 of the ESA, should the Facility exceed 10 aMW on a monthly basis, ldaho Power will accept the energy (lnadvertent Energy) that does not exceed the Maximum Capacity Amount, but will not purchase or pay for this lnadvertent Energy. APPLICATION - 4 9. As the Facility is already interconnected and selling energy to ldaho Power, the ESA specifies a Scheduled First Energy Date and Scheduled Operation Date for this Facility of June 1, 2020. See Appendix B. As specified in Articles lV and V of this ESA, the parties recognize that information provided under the previous agreement may still be applicable to this replacement ESA. As specified in the ESA, ldaho Power shall review the previously provided information and will accept the information as previously submitted, request updates to that information, and/or require new information to satisfy compliance with the various requirements for the Seller to be granted a First Energy Date and Operation Date for this replacement ESA. ln addition, ldaho Power will monitor the ongoing requirements through the full term of this ESA. 10. The ESA provides that all applicable interconnection charges and monthly operational or maintenance charges under Schedule 72 will be assessed to Seller. A Schedule 72 Generator lnterconnection Agreement, or "GlA," between the Seller and ldaho Power is in process but not yet signed. PURPA QF generation must be designated as a network resource ('DNR') to serve ldaho Power's retail load on its system. ln order for the Facllity to maintain its DNR status, there must be a power purchase agreement associated with its transmission service request in order to maintain compliance with ldaho Power's non-discriminatory administration of its Open Access Transmission Tariff (OATT) and maintain compliance with FERC requirements. 11. Additionally, the notification of Net Energy Amount monthly adjustments described in paragraph 6.2.3 must be provided no later than 5 p.m. Mountain Standard Time on the 25th day of the month that is prior to the month to be revised. lf the 25th day of the month falls on a weekend or holiday, then written notice must be received on the APPLICATION . 5 last business day prior to the 25th. 12. Article XXI of the ESA provides that the ESA will not become effective until the Commission has approved all of the ESA's terms and conditions and declared that all payments ldaho Power makes to the Seller for purchases of energy will be allowed as prudently incurred expenses for ratemaking purposes. IV. MODIFIED PROCEDURE 13. 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, et seg. lf, however, the Commission determines that a technical hearing is required, the Company stands ready to prepare and present its testimony in such hearing. 14. Because the existing contract will run its full term and expire on May 31, 2020, the parties request that the Commission set a procedural schedule that would result in a final Commission determination prior to the expiration of the existing contract. V. COMMUNICATIONS AND SERVICE OF PLEADINGS 15. Communications and service of pleadings, exhibits, orders, and other documents relating to this proceeding should be sent to the following: Donovan E. Walker ldaho Power Company 1221 West ldaho Street (83702) P O. Box 70 Boise, ldaho 83707 dwalker@idahopower. com Energy Contracts ldaho Power Company 1221 West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 enerqycontracts@idahopower.com dockets@idahopower.com VI. REQUEST FOR RELIEF 1 6. ldaho Power respectfully requests that the Commission issue an order: (1) authorizing that this matter may be processed by Modified Procedure; (2) accepting or APPLICATION - 6 rejecting the ESA between ldaho Power and the Seller; and, if accepted, (3) declaring that all payments for purchases of energy under the ESA between ldaho Power and the Seller be allowed as prudently incurred expenses for ratemaking purposes. Respectfully submitted this 9th day of December 2019. DONOVAN E. WALKER Attomey for ldaho Power Company APPLICATION - 7 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 9th day of December 2019, I served a true and correct copy of the within and foregoing APPLICATION upon the following named parties by the method indicated below, and addressed to the following: David Stephenson Big Wood Canal Company 409 N. Apple Street Shoshone, ldaho 83352 Ted Sorenson Wood Hydro LLC 1032 Grandview Drive lvins, UT 84738 _Hand DeliveredX U.S. Mail _Overnight Mail _FAXX Email davidstephenson@cableone. net ted@tsorenson. net I Assistant APPLICATION .8 V' BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. !PC-E-19-38 IDAHO POWER COMPANY ATTACHMENT 1 ENERGY SAl,ES ACREEMENT (Seasonal Hydro Facility l0 average Monthly MW or Less) Project Name: Sagebrush Hydro Project Project Number: 3 l5 15105 THIS ENERGY SAI,IlS AGREEMEN,I.C'AGREEMENT"), entered into on this 2) 6ay 61 0 ul y'z between BIG WOOD CANAL COMPANY, a non-profit Idaho canal company WI'INIISSETTT WHEREAS, Seller owns, maintains and operates a PURPA Qualifoing Facility; and WHEREAS, Seller wishes to sell, and ldaho Power is required to purchase, electric generation produced by a PURPA Qualifing Facility. THEREFORE, In consideration ofthe mutual covenants and agreements hereinafter set forth, the Parties agree as follows: ARTICLII I: DEFINI'I'IONS As used in this Agreement and the appendices attached hereto, the following terms shall have the following meanings: I .l "Adiusted Estimated Net Energy Amount" - The Estimated Net Energi Amount specified in paragraph 6-2 including any adjustments that have been made in accordance with paragraphs 6.2.2, 6.2.3 or 6.2.4. 1.2 "Authorized Agent" - A person or persons specified within paragraph 25.2 ofthis Agreement as being authorized and empowered, for and on behalfofthe Seller, to execute instruments, agreements, certificates, and other documents (collectively "Documents") and to take actions on I (Seller), and IDAHO POWER COMPANY, an [daho corporation (ldaho Power), hereinafter somctimes referred to collectively as "Panies" or individually as "Party." t.3 behalf of the Seller, and that Idaho Power Company and its directors, officers, employees, and agents are entitled to consider and deal with such persons as agents ofthe Ssller lor all purposes, until such time as an authorized oflicer ofthe Sellcr shall have delivcred to Idaho Power Company a notice in writing stating that such person is and shall no longer be an agent on behalf ofthe Seller. Any Documents executed by such persons shall be deemed duly authorized by the Seller for all purposes. "Commission" The ldaho Public tjtilitics Commission. 1.4 "Contract Year" - The period commencing each calendar year on the same calendar date as the Operation Date and ending three hundred sixty-four (364) days thereaftcr. "Delav Curc Pcriod" - One hundred twenty ( 120) days immediately following the Schedulcd Operalion Date. "Delay Damages" - Current month's lnitial Year Monthly Estimated Net Energy Amount as specified in paragraph 6.2.1 as ofthe Effective Date divided by the number ofdays in the current month multiplied by the number of days in the Delay Period in the current month multiplied by the current month's Delay Price. "Delay Period" - All days past the Scheduled Operation Date until the Seller's F.acility achievcs the Opcration Date or the Agreement is terminated by ldaho Power. "Del4y I'!Ee" The current month's Mid-Columbia Market Energy Cost minus the current month's All Hours Energy Price as specified in Appendix E and F ofthis Agreement. If this calculation rcsults in a value less than zero (0), the result of this calculation will be zero (0). "Designated Network Resource (DNR)" - A resource that is designated for Idaho Power network load and does not include any resource. or any poriion thercofl, that is committed for sale to third parties or otherwise cannot be called upon to meet ldaho Power's network load. 1.5 1.6 1.1 1.8 1,9 l.l0 "Desi ted Dis atch Facilit " - Idaho Power's Load Serving Operations, or any subsequent 2 group dcsignated by Idaho Power l.ll "Ellective Date" - The date stated in the opening paragraph of this Energy Sales Agreement representing the date upon which this Energy Sales Agrecment was fully executed by both Parties. "Environmental Attributes" - Any and all credits, benefits, emissions reductions, offsets, and allowances, howsocver entitled, attributable to the generation from the F'acility, and its avoided emission ofpollutants. Environmental Attributes include but are not limited to: (l) any avoided emission of pollutants to thc air, soil or water such as sulfur oxidcs (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (2) any avoided emissions ofcarbon dioxide (CO:), methane (CHr), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere;r (3) the rcporting rights to these avoidcd emissions, such as REC Reporting Rights. REC Reporting Rights are the right ofa REC purchaser to report the ownership ofaccumulated RIrCs in compliance with lederal or state law, if applicable, and to a federal or state agency or any other party at the REC purchaser's discretion, and include without limitation those REC Reporting Rights accruing under Section 1605(b) ofThe Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and intemational or foreign emissions trading program. RECs are accumulated on a MWh basis and one REC represents the Environmental Attributes associated with one (l) MWh of energy. Environmental Attributes do not include (i) any energy, capacity, reliability or other power attributes from thc Facility, (ii) production tax credits or investment tax credits associated with the construction or operation ofthe Facility and other financial incentives in the form of credits, reductions, or allowances associated with the Facility that are applicable to a state or lederal income laxation obligation, (iii) the cash grant in 1 .12 I Avoided emissions may or may not have any value for GHG compliance purposes. Although avoidcd emissions are included in the list of Environmenlal Attributes, this inclusion does not create any right to use those avoided emissions to comply with any CHC regulatory program. 3 I .ll lieu ofthe investment tax credit pursuant to Section 1603 of the American Recovery and Reinvcstment Act of2009, or (iv) emission reduction credits encumbered or used by the Facility for compliance with local, state, or federal operating and/or air quality permits. "Es!irn4edXE!_E!EIgy4E94" I'he monthly Estimated Net Energ/ Amount (kWh) provided by the Sellcr in accordance with paragraph 6.2 and which may be adjusted periodically throughout the 'l'erm ofthis Agreement in accordance with paragraph 6.2. "F'acilitv" - That clectric generation facility described in Appendix B of this Agreement "Facility Nameplate Capacity" - The sum of the individual Generation Unit Nameplate Capacities that are installed at this Facility. "First Enersy Date" - The day commencing at 00:01 hours, Mountain Time, following the day that Seller has satisfied the requirements of Article lV and after the Seller requcsted First Energy Date. "Forced Outase" - A partial or total reduction ofa) the Facility's capacity to produce and/or deliver Net Encrgy to the Point of Delivery, or b) Idaho Powcr's ability to accept Net Energy at the Point of Delivery for non-economic reasons, as a result of ldaho Power or Facility: I ) equipment failure which was not the result of negligcnce or lack of prevcntative maintenance, or 2) responding to a transmission provider curtailment order, or 3) unplanned preventative maintenance to repair equipment that left unrepaired, would result in failure of equipment prior to the planned maintenance period, or 4) planned maintenance or construction ofthe F'acility or electrical lines required to serve this Facility, or 5) icing events within the immediate water sourcc used as the Facility's primary motive force that causes the Facility to reduce energr production. "Fueled Rates" - fueled Rates shall apply to Qualilying Facility projects fueled with fossil fuels as described in Schedule 73, Rate Options. "Generator Interconnection Agreement (GIA)" The interconnection agreement that specifies terms, conditions and requirements of interconnecting to the Idaho Power electrical system, which will include but not be limited to all requirements as specified by Schedulc 72. 4 t.t4 r.l5 l.t6 | .)7 t.l8 r.t9 1.20 "Generation Unit" - A complete electrical generation system within the Facility that is able to generate and deliver electricity to the Point of Delivery independent of other Generation Units within the same Facility. I .21 "Hca Load Hours I II," - Thc daily hours, applicable to energy deliveries, from hour ending 1.22 0700 - 2200 Mountain Time, ( l6 hours) excluding all hours on all Sundays, New Year's Day, Memorial Day, [ndependence Day, Labor Day, Thanksgiving and Christmas. "lladyc4q41!4qCy" - Illectric enerry Seller did not intend to generate. lnadvertent energy is described in paragraph 7.7 ofthis Agreement. "lnterconnection Facilities" - All cquipment specified in the GIA. "lnitial Caoacity Determination" - The process by which ldaho Power confirms that undcr normal or average design conditions the Facility will generatc at no more than ten ( I 0) average megawatts (MW) per month. 1.23 1.25 "Li ht Load Hours Lt." - Thc daily hours from hour ending 2300 - 0600 Mountain Time (8 1.26 hours), plus all other hours on all Sundays, New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. "Losses" The loss ofelectrical energy expressed in kilowaft hours (kWh) occurring as a result ofthe transformation and transmission ofenergy between the point where the Facility's energy is metered and the Facility's Point of Delivery. The loss calculation formula will be as specified in Appendix B ofthis Agreement. "I4gIk4 ErcrCy 3sfel9rc9&t!9" - Eighty-five percent (85%) of the Mid-Columbia Market Energy Cost. "Material Breach" - A Dcfault (paragraph 19.2.1 ) subject to paragraph 19.7.2. "Maximum Caoaciw Amount" - The maximum capacity (Mw) of the Facility will be as specified in Appendix B ofthis Agreement. "Mid-Columbia Market Energv Cost" - Eighty+wo and four tenths percent (82.4%) of the monthly arithmetic average of each day's Intercontinental F,xchange ("lCE") daily firm t.z7 1.28 t.29 5 1.30 1'he Mid-Columbia Market Energy Cost actual calculation being n .824 + ( I {(lCE Mid-C Peak Avg" + HL hours for day) + x=l (lCL, Mid-C Off-Peak Avg, * LL hours for day)) / (n*24)) where n - number ofdays 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 appropriatc respective numbers of HL and LL Hours lor such particular day or days with the result that cach hour in such month shall have a related price in such formula. Ilthe day for which prices are not reported has in it only Ll, Hours (for example a Sunday), the respective averages shall use only prices rcported for LL hours in the immediately preceding and following reporting periods or days. Ilthe day for which prices are not reported is a Saturday or Monday or is adjaccnt on the calendar to a holiday, thc prices used for HL Hours shall be thosc for HL hours in the nearest (forward or backward) reporling periods or days for which H[, prices are reported. Ilthe tCE Mid-C lndex reporling 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 sclected replacement index will be consistent with other similar agreements and a commonly uscd index by thc electrical industry. "Monthly Nameplate Enerey" - Facility Nameplate Capacity (kW) multiplied by the hours in the applicable month. l.3l 6 Mid-C Peak Avg and Mid-C Off-Peak Avg index prices. Each day's index prices will reflect the relative proportions ofpeak hours and off-peak hours in the month as follows: t.32 "Nameolate Caoacity" The full-load electrical quantities assigned by the designer to a Generation Unit and its prime mover or olher piece ofelectrical equipment, expressed in kilovolt- amperes, kilowatts, horsepower or other appropriate units. The nameplate is usually attached to the individual machine or device. This value is established for the term of this Agreement in Appendix B, item B-l o[this Agreement and validated in paragraph 4.1.4 ofthis Agreement. "Np! Erctry" - All of the electric energi produced by the Facility, lcss Station Use and l.osses, expressed in kilowatt hours (kWh) delivered by the F'acility to ldaho Power at the Point of Delivery. Subject to the terms of this Agreement, Seller commits to deliver all Net Energy to Idaho Power at the Point of Delivery for the full term ofthe Agreemcnt. Net Energy does not include Inadvertent Energy. "Non-Fueled Rates" Non-F'ueled Rates shall apply to Qualifying Facility Projects that do not use fossil fuels as their primary fuel as described in Schedule 73, Rate Options. "Non-seasonal Hydro Facilily" As described in Commission Order 32802, a hydro gcnerating Facility that does no1 qualiry as a Seasonal Hydro Iacility as defined in paragraph 1.40 ofthis Agreement. "Ooeration Date" - The day commencing at 00:01 hours, Mountain Time, lollowing the day that all requirements ofparagraph 5.2 have been completed and after the Seller requested Operation Date. "Point of Delivery" - The location specified in the GIA and referenced in Appendix B, wherc Idaho Power's and the Seller's electrical facilities are interconnectcd and the energy from this Facility is delivered to the ldaho Power electrical system. "Prudent Electrical Practices" - Those practices, methods and equipment that are commonly and ordinarily used in electrical engineering and operations to operate electric equipment lawfully, salely, dependably, effi ciently and economically. "Renewable Energv Certificate" or "REC" - A certificate, credit, allowance, green tag, or other transferable indicia, howsoever entitled, indicating generation ofrenewable energy by the Facility, and includes all Environmental Aftributes arising as a result ofthe generation of 7 I .33 t.34 I .35 l.l6 I .37 r.38 r.39 electricity associated with the REC. One REC represents thc Environmental Attributes associated with the generation ofone thousand ( 1,000) kwh ofNet Energy. 1.40 Seasonal Fac ili As described in Commission Order 32802, a hydroelectric generating F'acility that delivers to ldaho Power total Net Energy of at least 55% of its calendar year annual Net Energy during the months June, July and August. "Seasonal Hydro Facilitv Eligibility Test Periods" Beginning with the first full calendar year after thc Operation Date, each five (5) calendar year consecutive period. lfthe term of this Agreement results in the last period not having a full five (5) calendar years, then the last period will be equal to the time from the end ofthe last full five (5) calendar year consecutive period and the expiration date ofthis Agreement. "Scheduled Operation Date" - The date specified in Appendix B when Seller anticipates achieving the Operation Date. The Scheduled Operation Date provided by the Seller shall be a reasonable estimate ofthe date that the Seller anticipates that the Seller's Facility shall achieve the Operation Date and complete Article V compliance items. "Schedule 72" - ldaho Power's TariffNo. l0l , Schedule 72 or ils successor schedules as approved by the Commission. 1.44 "Schedule 73" Idaho Power's TariffNo. l0l. Schedule 73 or its successor schedules as 1 .42 I.4t L43 t.45 I .46 1 ,41 approved by the Commission. "Season" - The three periods identified in paragraph 6.2.1 ofthis Agreement. "Security Deoosit" - $45 per kW Nameplate Capacity ofthe entire Facility. ' Statis! t 9" - Electric energy that is used to operate equipment that is auxiliary or otherwise related to the production of electricity by the Facility. "Termination Damases" - Financial damages the non-defaulting party has incurred as a result of termination of this Agreement. i .48 8 AR'I'I LE II NO RI,I,IAN IDAHO WBR 2.1 Scller Independent Investiqation - Seller warrants and represents to Idaho Power that in entering into this Agreement and the undertaking by Seller ofthe obligations set forth herein, Seller has investigated and detcrmined that it is capable of performing hereunder and has not relied upon the advicc, experience or expertise of ldaho Power in connection with the transactions contemplated by this Agrccmcnt. 2.2 Seller Indcpcndent Experts - All profcssionals or expcrts including, but not limited to, enginccrs, attorneys or accountants, that Seller may have consulted or relied on in undertaking the transactions contemplated by this Agreement have been soiely those of Seller. ARTICLE III: WARRAN.IIES 3.1 No Warranty by ldaho Power - Any review, acceptance or failure to review Seller's design, specifications, equipment or lacilities shall not be an endorsemcnt or a confirmation by ldaho Power and Idaho Power makes no warranties, expresscd or implied, regarding any aspect of Seller's design, specifications. equipment or facilities, including, but not limited to, safcty, durability, reliability, strength, capacity, adequacy or economic feasibility. uali tn I:acili S - Seller warrants that the [racility is a "Qualifoing Facility," as that term is used and defined in l8 C.F.R. $292.201 et seq. and Seller will takc such steps as may bc required to maintain thc Facility's Qualifying Facility status during the term of this Agreement and Sellcr's lailure 1o maintain Qualif ing F'acility status will be a Material Breach of this Agreement. Idaho Power reserves the right to review the Facility's Qualilying facility status and associated support and compliance documents at any time during the term ofthis Agreement 3.3 FIIRC License / Exemotion / Dctcrmination - Scllcr rvarrants that Scllcr possesses a valid license, exemption from licensing, or a determination ofa qualifuing conduit hydropower facility (pursuant to section 30 ofthe l'ederal Power Act) from the Federal L.nergy Regulatory Commission ("FERC') for the Facility. Seller recognizes that SelleCs possession and retention of a valid F-ERC license, exemption, or a determination ofa qualifoing conduit hydropower facility 9 is a material part ofthe consideration for ldaho Power's execution of this Agreement. If applicable, Scllcr will take such stcps as may be required to maintain a valid FIIRC liccnsc, exemption, or a determination of a qualifying conduit hydropower lacility lor the Facility during the term ofthis Agreement, and Seller's failurc to maintain a valid FERC license or exemption will be a material breach ofthis Agreement. 3.4 Seasonal Hydro Facilitv Oualifications - Seller warrants that the Facility is a Seasonal Hydro Facility as that term is defined in paragraph i .40 of this Agreement. After initial qualification, Seller will takc such steps as may be required to maintain the Seasonal Ilydro Facility status during the full term of this Agreement. Seller's failure to achievc Seasonal Hydro Facility status for at least three (3) calendar years during any Seasonal Hydro Facility Eligibility l'est Period will result in this Facility being rcclassified as a Non-Seasonal Ilydro Facility for the remaining Term of this Agreement. ldaho Power reserves the right to review the Seasonal Hydro Facility status ofthis F'acility and associated support and compliance documents at any time during the term of this Agreement. ARTICLII IV: CONDITI N N E O} L,NL,R(JY 4.1 First Enersy Datc - Prior to the tffective Date of this Agrcemcnt, this Facility has been delivering energy to ldaho Power in accordance with a Firm Energy Sales Agreement dated April I, 1985, that expires on May 31, 2020, and some ofthe requirements ofthis Article are similar to thc requirements ofthat previous Agreement. Prior to the First Energy Date and as a condition of Idaho Powcr's acceptance ofdeliveries ofenergy lrom the Seller under this Agreement, Idaho Power shall review the previously provided information and at ldaho Power's sole discretion may l) accept the previously provided inlormation as meeting the requirements of this Article or,2) require updates to the previously provided information or 3) require the Seller to provide new inlormation to complete the lollowing requirements. 4.1 . I Licenses, [.eases, Permits,Determ inations- Aoorovals - Submit proof to ldaho Power that all licenscs, leases, permits, dctcrminations and approvals necessary for Seller's t0 operations have been obtained from applicable owners, federal, state or local authorities, including, but not limited to, evidence of compliance with Subpart B, l8 C.F.R. i292.201 et seq. as a certified Qualilying Facility and evidence ofcompliance with the eligibility to be classified as a Seasonal Hydro Facility as defined in paragraph 1.40 ofthis Agreement. f Counsel - Submit to Idaho Power an opinion letter signcd by an attorney4.1.2 4.t admitted to practice and in good standing in the State of ldaho providing an opinion that Seller's licenses, permits, determinations and approvals as set forth in paragraph 4.1.1 above are legally and validly issued, are held in the name ofthe Seller and, based on a reasonable independent review, counsel is ofthe opinion that Seller is in substantial compliancc with said permits as of the date of the opinion letter. The opinion letter will be in a form acceptable to ldaho Power and will acknowledge that the attomey rendering the opinion understands that Idaho Power is relying on said opinion. Idaho Power's acceptance ofthe form will no1 be unreasonably withheld. The opinion letter will be govcmed by and shall be interpreted in accordance with the legal opinion accord ofthe American Bar Association Section of Business Law ( 1991). 3 Commission Aooroval - Confirm with ldaho Power that Commission approval of this Agreement in a form acceptable to ldaho Power has been received. 4.1.4 Initial C Determination - Submit to ldaho Powcr such data as ldaho Power ma reasonably require to perform the Initial Capacity Determination. Such data will include but not be limiled to, Generation Unit Nameplate Capacity, equipment specifications, prime mover data. resource characteristics, normal and/or average operating design conditions and Station Use data. Upon receipt ofthis information, ldaho Power will review the provided data and if necessary, request additional data to complete the Initial Capacity l)etermination within a reasonable time. 4.1.4.1 If the Maximum Capacity Amount specified in Appendix B of this Agreement and the cumulativc manufacturer's Nameplate Capacity rating of the individual Generation Units at this F'acility does not exceed ten (10) MW, the Seller shall 1l )' 4.1.5 submit detailed, manufacturer, verifiable data ofthe Nameplate Capacity ratings ofthe individual Generation Units to be installed at this Facility. Idaho Power will verifu that the data provided establishes the combined Nameplate Capacity rating ofthe Generation Units to be installed at this Facility does not exceed ten ( l0) MW and will determine if the Seller has satisfied the Initial Capacity Determination. 4.1 .4.2 lf the Maximum Capacity or the cumulativc manufacture's Nameplate Capacity Rating of the individual Generation Units at this l'acility exceeds ten ( l0) MW, Idaho Pouer will review all data submitted by Seller to determine if it is a reasonable estimate that the Facility will not cxceed ten ( l0) average MW in any month. Nameplate Capacity - Submit to Idaho Power manufacturer's and engineering documentation that establishes the Nameplate Capacity ofeach individual Generation Unit that is included within this entire Facility. The sum ofthe individual Generation Unit capacity ratings shall be equal to Facility Nameplate Capacity. Upon receipt of this data, ldaho Power shall review the provided data and determine if the Nameplate Capacity specified is reasonable based upon thc manuflacturer's specified generation ratings for the specific Generation Units. Completion Certificate - Submit a certificate executed by an authorized agent ofthe Seller attesting that all mechanical and electrical equipment ofthe designated Generation Uni(s) has been completed to enable the Generation Unit to begin testing and deliver Tcst Energy in a sale manner. lnsurance - Submit written proofto ldaho Power ofall insurance required in Article XIll. Interconnection - Provide written confirmation from Idaho Power's business unit that administers the GIA that Seller has satisfied all interconnection, hourly metering and testing r€quirements that will enable the Facility to be salely connected to the ldaho Power electrical system. l2 4.1 .6 4.1.7 4.1 .8 4.1 .9 Desisnated Network Resource DNR - Confirm that the Seller's Facility has completed all ofthe requirements to be an ldaho Power DNR capable ofdelivering energy up to the amount of the Maximum Capacity at the Point of Delivery. 4.1.9.1 As specified in Appendix B item 7 ofthis Agreement, the Seller's Facility must achieve DNR status prior to ldaho Power accepting any energy from this Facility. Appendix B item 7 provides information on the initial application process required 1o enable Idaho Power to determine if network transmission capacity is available for this Facility's Maximum Capacity Amount and/or if ldaho Power transmission netrvork upgrades will be required. 'l'he results of this study process and any associated costs will be includcd in the GIA for this Facility. 4.1.9.2 At least thirty (30) days prior to the Scheduled lrirst Energy Date and after the tacility has completed all requirements ofthe GIA that enable the Facility to come online, Idaho Power will completc the process for getting the Seller's Facility approved as an ldaho Power DNR. Ifthe Seller estimates that the actual F'irst Energy is expected to be different then the Scheduled First Energy Date specified in Appendix B of this Agreement, the Seller must notiry ldaho Power ofthis revised date no later than 30 days prior to Scheduled First Energy f)ate. 'I'he Facility cannol deliver any cnergy to ldaho Power until it is approved as a DNR and after completing all the requirements of the GIA and complying with thc requirements of this Agreement. 4.1 . 10 Written ce - Rcquest and obtain writlen confirmation from Idaho Powcr that all conditions to acceptance ofenergJ, have been fulfilled. Such written confirmation shall be provided within a commercially reasonable time following the Seller's requcst and will not be unreasonably withheld by ldaho Porver. l3 ARTICLE, V: ,I.ERM AND OPERAI.ION DATE, 5.1 Term - Subject to the provisions ofparagaph 5.2 below, this Agreement shall become effective on the llffective Date and shall continue in full force and effect for a period ol twenty (20) Contract Years lrom the Operation Date, except that if the Operation Date is granted for a date that is after the Scheduled Operation Date idcntified in Appendix B, in which case the Term shall start on the Scheduled Operation Date. 5.2 Opcration Datg Prior to the lrffbctivc Date of this Agreement, this Facility has been dclivering energJ to Idaho Power in accordance with a Firm Energy Sales Agreement dated April lst, 1985, that expires on May 3 1, 2020, and some of the requirements of this Article are very similar to the requirements of that previous Agreement. Idaho Power shall review the previously provided inlormation and at ldaho Powcr's sole discretion may I ) accept the previously provided information as meeting the requirements of this Article or, 2) require updates to the previously provided information or 3) require the Seller to provide new information to complete the following requirements. A single Operation Date will be granted for the entire Facility and may occur only after the Facility has achieved all of the following: 5.2.1 The Facility is online and delivering electricity to ldaho Power at the Point of Delivery. 5.2.2 Seller has demonstrated to [daho Power's satisfhction that all mechanical and elcctrical testing has been completed satisfactorily and the Facility is able to provide energy in a consistent, reliable and safe manner. 5.2-3 Enqineer's Certifications - Submit an executed Enginccr's Cerlification of Design & 5.2.4 5.2.5 Construction Adequacy and an Engineer's Certification ol Operations and Maintenance (O&M) Policy as describcd in Commission Order No. 2 I 690. These certificates will be in the form specified in Appendix C but may be modified to the extent ncccssary to recognize the different engineering disciplines providing the certificates. Seller has requested an Operation Date from Idaho Power in a written format. Seller has received written confirmation from ldaho Power ofthe Operation Date. l4 5.3 Operation Datc Dclav - Seller shall causc thc Facility to achieve the Operation Date on or beforc 5.4 the Scheduled Operation Date. Delays in the interconnection and transmission network upgrade study, design and construction process ('lhis includes any delay in making the required deposit payments set forth in the Facility's GIA) that are not caused by ldaho Power or Force Majeure events accepted by both Parties, shall not prevent Delay Damages or Termination Damages lrom being due and owing as calculated in accordance with this Agreement. Termination - If Seller fails to achieve the Operation Date prior to thc Scheduled Operation Date, such lailure will be a Material Breach and shall subject the Seller to Delay Damages during the Delay Cure Period. lfSeller fails to achieve an Operation Date during the Delay Cure Period, ldaho Power may immediately terminate this Agreemenl wilh no further notice required. 5.5 Delav Damages Billins and l)avment - Idaho Power shall calculate and submit to the Scllcr anv Delay Damages due ldaho Power within fifteen (15) days after the end ofeach month or within 30 days ofthe date this Agreement is terminated by ldaho Power. 5.6 Termination Damaqe s Billrns and Pavmcnt - Idaho I'orver shall calculate and submit to thc Scller any Termination Damages due Idaho Power within th irty (30) days after this Agreement has been terminated. Seller shall respond within l5 days. In the event ofa dispute regarding the calculation of Termination Damages, either party may resort to a court of compctcnt j urisdiction. 5.1 Seller Paymentt - Seller shall pay Idaho Power any calculated Dclay or Termination Damagcs within l5 days from when Idaho Power presents these final adjusted billings to the Seller. Final adjusted billing being the original billing adjusted to reflect any mutually agreed to changes from the original billing. Seller's lailure to pay these damages within the specified time will be a Material Breach of this Agreement and ldaho Power shall draw funds from the Security Deposit provided by the Seller in an amount equal to the calculaled damages. 5.8 Securit,- Deposit - Within thirty (30) days ofthe date o[a final non-appealable Commission Order approving this Agreement as specified in Article XXl, the Seller shall post and maintain liquid security in a form as described in Appendix D equal to or exceeding the amount specified within this Agreement as the Security Deposit until such time as the Sccurity Deposit is released by ldaho l5 ARTICLE VI: PURCI IASII A}*D SALE OF NI'T I]NERGY 6,1 Nct Ener l,u se and Deliv - Except when eithcr Party's performance is cxcused as provided herein, Idaho Power will purchase and Seller will sell all ofthe Net Energy to ldaho Power at the Point of Delivery. All lnadvertent Energy produced by the Facility will also be delivered by the Seller to ldaho Power at the Point of Delivery. 6.2 Estimated Net Irnerqy Amounts Neither the monthly Estimated Net Energy Amounts provided as ofthe Effective Date of this Agreement nor monthly Adjusted Eslimated Net Energy Amounts provided during the term of this Agreement shall excced ten (10) average monthly MW nor be greater than the Maximum Capacity Amount (measured in kW) multiplied by the hours in the applicablc month. Seller agrees to provide initial and revised Estimated Net Energy Amounts using an automated electronic input portal provided by Idaho Power. If the electronic portal is not available, Seller will provide Estimated Net Energy Amounts to ldaho Po*er via email or altemate methods as specified by ldaho Power. 6.2.1 Monthlr Estimated Net F-nergy Amounts nrovided as ol the tffective Datc of lhis Agreement Season I March April May July August Month kwh 0 t32,t2t 371 ,404 42 8.4 80 421 .447 t6 Power as specified in paragraph 5.8.1. Failure to post this Security Deposit in the time specified above will be a Material Breach ofthis Agreement and ldaho Power may terminate this Agreement. 5.8.1 Securitv Deposit Release - ldaho Power shall release any remaining Security Deposit provided by Seller promptly after cither the facility has achieved its Operation Date or this Agreement has been terminated and only after all final adjusted Delay and Termination Damages have been paid in full to ldaho Power. Scason 2 November fJeccmber J une September October January February 0 0 Season J 6.2.2 Seller's nt of F,ll Net Ener Anr unts - Prior to thc Operation Datc. the Seller may revise all ofthe previously provided monthly Estimated Net Energy Amounts. This revision must be submitted using the electronic portal provided by ldaho Power if available. If portal is not available, then written notice must be provided to ldaho Power by electronic notice (electronic mail) as agreed to by both parties. 6.2.3 Seller's Adi ustment of Estimated Net Enersv Amounts Alter the Ooeration Date - After the Operation Date, the Seller may revise any future monthly Estimated Net Energy Amounts by providing written notice no later than 5 PM Mountain Standard time on the 25fr day of the month that is prior to the month to bc revised. tf the 25th day of the month falls on a weekend or holiday, lhen ldaho Power must receive the rcvision no later than the last business day prior to the 25'h day of the month. For example, if the Seller would like to revise the Ilstimated Net Energy Amount for October, they would need to submit a revised schedule no later than September 25'h or the last business day prior to September 25,h. a.) -lhis revision must be submitted using the electronic portal provided by [daho Power ifavailable. lfportal is not available, then written notice must be provided to ldaho Power in accordance by electronic notice (electronic mail) as agrced to by both parties. b.) Failure to provide timely written notice of changes to the Estimated Net Energy Amounts will be deemed to be an election of no change from the most recently provided monthly Estimated Net llnergy Amounts. 17 402,891 353,99l 105,690 0 0 6.2.4 Idaho Power Adiustment of Month lv Ilstimated Net Enerpv Amou nts If ldaho I)ower is excused lrom accepting the Seller's Net Energy as specified in paragraph 12.2.1 or ifthc Seller declares a Suspension of Energy Deliveries as specified in paragraph 12.3.1 and the Seller's declared Suspension olEnergy Deliverics is accepted by Idaho Power, the monthly estimated Net Energy amount as specified in paragraph 6.2 forthe specific month in which the reduction or suspension under paragraph 12.2.1 or 12.3.1 occurs will be temporarily reduced in accordance with the following and only for the actual month in which the event occurred: NEA Current Month's Estimated Net Encrgy Amount (l'aragraph 6.2) s(it.l a.) If ldaho Power is excused fiom accepting the Seller's Net Energy as specified in paragraph 12.2.1 this value will be equal to the perccntage ofcurtailment as specified by Id"l'o Power multiplied by the TGU as defined below. b.) If the Seller declares a Suspension of Energy Delivcrics as specified in paragraph 12.3. I this value will be the sum of the individual Generation [Jnits sizc ratings as specified in Appendix B lhat arc impacted by the circumstances causing the Seller to declarc a Suspension of Energy Deliverics. lGti Sum ofall ofthe individual generator ratings ofthe Generation Units at this Facility as specified in Appendix B olthis agreement. RSH .I'H Actual hours the Facility's Net Energy dclivcries were either reduced or suspended under paragraph 12.2.1 or I 2.3. I Actual total hours in the current month Resulting formula being: Adjusted Estimated Net llnersi Amount SGU TGU X NEANEA ) -((( RSH TH )) 18 This Adjusted Estimated Net Energy Amount will be used in applicablc Surplus Energy calculations for only the specific month in which ldaho Power was cxcused from accepting the Seller's Net Energy or the Seller declared a Suspension of Energy Deliveries. 6.3 Failure to Deliver Minimum Amounts of Net Encrgy - Unless excused by an event of Force Majeure or ldaho Power's inability to accept Net Energy, Seller's lailure to deliver Net Energy in any Contract Year in an amount equal to at least ten percent (10%) ofthe sum ofthe monthly estimated Net Energy amounts in effect as ofthe Operation Date shall conslitute an event of default. ARTICLE VII: I'LJRCI IASE PRICE AND MI:THOD OF PAYM[TN-]- 1.1 Sumlus Energy -( l) Net Energy produced by the Seller's Facility and delivered to the ldaho 7.2 Powcr electrical system during the month which exceeds one hundred ten percent ( I I 0%) of the monthly Adjusted Estimated Net Encrgy Amount for the corresponding month specified in paragraph 6.2, or (2) ifthe Net Energy produced by the Seller's l"acility and delivered to the Idaho Power electrical system during the month is Iess than ninety percent (90%) ofthe monthly Adjusted Estimated Net Energy Amount for the corresponding month specified in paragraph 6.2, then all Net Energy delivercd by the Facility to the Idaho Power electrical system for that given month, or (3) all Net Energy produced by thc Seller's Facility and delivered by the Facility to the Idaho Power electrical system prior to the Operation Date, or (4) all monthly Net Energy that exceeds the Monthly Nameplate Enerry. Sumlus Enersy Price - For all Surplus Energy, Idaho Power shall pay to the Scller the current month's Market llnergy Reference Price or the applicable All Hours F,nergy Price, whichever is lower. 7 .3 Basc Energy . l'he Net Energy produced by the Seller's Facility and delivered to the ldaho Power electrical system after the Facility has achieved an Operation Date which is greater or equal to ninety percent (90%) and less than or equal to one hundred ten percent (110%) ofthe 19 monthly Adjusted Estimated Net Energy Amount for the corresponding month specified in paragraph 6.2. 7 .4 Base Enerqv Heaw Load Purchase Price For all Base Energy received during Heavy Load Hours, Idaho Power will pay the monthly non-levelized Base Energy Heavy Load Purchase Price as specified in Appendix E or F, 7.5 Basc Encrqv Light Load Purchase Price - For all Base Energy received during Light Load Hours, 7.6 Idaho Power will pay thc monthly non-levelized Base Energy Light Load Purchase Price as specified in Appendix E or F. All Hours Energy Price - 'l'he price to be used in the calculation of the Surplus Energy Price and Delay Damage Price shall be the monthly non-levelized All Hours Energy in Appendix E or F. Inadvertent EnerAl -1.1 7 .7.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to ldaho Power at the Point of Delivery that exceeds len thousand ( 10,000) kW multiplied by the hours in the specific month in which the energy was delivered. (For example, January contains 744 hours. 744 hours times 10,000 kW = 7,440,000 kWh. Enerry delivered in January in excess of 7,440,000 kWh in this example would be lnadvenent Energy.) Although Seller intends to design and operate the Facility to generate no more than ten ( l0) average MW monthly and therefore does not intend to generate and deliver Inadvertent Energy, Idaho Power will accept Inadvertent Energy that does not exceed the Maximum Capacity Amount but will not purchase or pay for Inadvertent Energy. Delivering Inadvencnt Energy to ldaho Power for two (2) consecutive months and/or in any three (3) months during a Contract Year will bc a Material Breach ofthis Agrc€ment and ldaho Power may t€rminate this Agreement within sixty (60) days after the Matcrial Breach has occurred. 7.7.2 1.1.3 20 7.8 Seasonal Hvdro Facility eligibilit), - If the Facility fails to satisfy the Seasonal Hydro Facility Qualifications specified in paragraph 3.4, this Facility shall be reclassified as a Non-Seasonal tlydro Facility for the remaining term of the Agreement and the Non-Seasonal Hydro Facility Energy Prices specified in Appendix F will be applicable. 7.8.1 Annual elieibility audits - On or before February l5th of the year following the first full calendar year after the Operations Date and for evcry calendar year thereafter, Idaho Power will divide the total Net Energy received from the Facility for the months ofJune, July, and August by the total Net Energy received for the previous calendar year to establish a percentage ofenergy deliveries lor the months ofJune, July and August. Any reduction in energy deliveries due to Forced Outages, planned or unplanned maintenance, Force majeure or any other reduction in energy deliveries will result in reduction of both the numerator and the denominator in this calculation, therefore no adjustment to this calculation is required for these events. 7.8.1 . I If this pcrcenlage is greater than or equal to fifly-five percent (55%) it will be deemed that the l'acility has met the requirements to be classified as a Seasonal Hydro Facility for that previous calendar year. 7.8.1.2 Ifthis percentage is less than fifty-five percent (55%), Idaho Power will provide notification to the project of the Facility's failure to meet the Seasonal Hydro Facility requirements lor the previous calendar year and the monthly energy payments for that previous calendar year will be recalculated to reflect the Non- Seasonal Hydro F'acility energy prices as contained within Appendix F of this Agreement. Any overpayments will be collected from the Facility in equal monthly payments over the remaining months of the current calendar year. If the Facility fails to meet the Seasonal Hydro Facility requiremcnts for the second to last calendar year ofthe Contract Term, then the monthly energy payments for the remaining term ofthe contract will be priced according to the Non-Seasonal Hydro Facility Energy Prices specified in Appendix F. 21 '7.9 7.8.1.3 lfthe Facility fails to achieve this percentage of fifty-five percent (55%) for at least three (3) calendar years during any Seasonal Hydro [racility Eligibility Test Period the Facility will be reclassified as a Non-Seasonal Hydro Facility for the remaining term of this Agreement and the Non-Seasonal Hydro l'acility Energy Prices specified in Appendix F will replace the Seasonal t lydro Facility Energy Prices specified in Appendix E for use in all calculations in this Agreemcnt for the remaining term of the Agreement. Pa),ments - tJndisputed Base Energy and Surplus Energy payments, less any payments due to Idaho Power will be disbursed to the Seller within thirty (30) days olthe date which Idaho Power receives and accepts the documentation ofthe monthly Base Energy and Surplus Energy actually delivered to ldaho Power as specified in Appendix A, Seller agrees to use payment method as specified by ldaho Power which could be ACH ("Automated Clearing House"), electronic, wire, paper checks or any other method for making payments to Sellcr. 7.10 Continuins Jurisdiction of the Commission - This Agreemcnt is a special contract and the rates, terms and conditions contained in this Agreement will bc construed in accordance with Idaho Por.r'er Company v. Idaho Public Utilities Commisslgn and Afton F.nclsy, Ittc., 107 ldaho 781 ,693 P.2d 427 (1984), Idaho Power Company v. ldaho Public [Jtilities Commission,l0T ldaho 1122, 695 P.Zd I 261 ( 1985), Afton tnersv. Inc.v. Idaho Power Comoany, lll ldaho 925, 729 P.2d 400 ( I 986), Section 210 of the Public Utility Regulatory Policies Act of 1978 and I 8 C.F.R. $292.303- 308. 8.1 Pursuant to Commission Order No. 32697 and Order No. 32802 the Environmental Attributes and Renewable Energy Certificates as defined within this Agreement and directly associated with lhe production ofenergy from the Seller's Facility are owned by the Seller. 22 ARTlCll.E VI I I : EN V I RQ,NM ENTAL A'l'l-RI!!TE! ARTICLE IX: FAL]II,ITY AND INTERCONNI]CTION 9.1 Design of Faciliw - Seller will design, construct, install, own, operate and maintain the Facility and any Seller-owned Interconnection Facilities so as to allow safe and reliable generation and delivery ofNet Energy and Inadvertent Energy to the Idaho Power Point of Delivery for the full term ofthe Agreement in accordance with the GIA. ET NG M t:'f IIRIt'r-G COMMUNI A'I'IONS A\D ADA TI]LE ,I'RY 10. I Metering - ldaho Power shall, provide, install, and maintain metering equipment needed for metering the electrical energy production from the Facility. The metering equipment will be capable of measuring, recording, relrieving and reporting the Facility's hourly gross electrical energy production, Station Use, maximum energy deliveries (kW) and any other electricity measurements at the Point of Delivery that ldaho Power needs to administer this Agreement and integrate this Facility's electricity dclivered to the ldaho Power electrical system. Specific equipment, installation details and requirements lor this metering equipment will be established in the GIA process and documented in theCIA. Seller shall be responsible forall initial and ongoing costs ofthis cquipment as specified in Schedule 72 and the GIA. 10.2 Meterins Communications - Seller shall, at the Seller's sole initial and ongoing expense, arrange for, provide, install, and maintain dedicated metering communications cquipment capablc of transmitting thc metering data specified in paragraph 10. I to ldaho Power in a frequency, manner and form acceptable to ldaho Power. Seller shall grant ldaho Power sole control and use of this dedicatcd metering commun ications equipment. Specific details and requirements for this metering communications equipment will be established in the CIA process and documented in the GIA. 10.3 Supervisory Control and Data Aqquisition (SCADA) Islrrnetry - ln addition to the requircments of paragraph 10. I and 10.2, Idaho Power may require telemetry equipment and telecommunications which will be capable of providing Idaho Power with continuous instantaneous SCADA telemetry ofthe Seller's Net Enerry and Inadvertent F-nergy production in 23 ARTICLE X: a form acceptable to Idaho Power. Seller shall $ant ldaho Power sole control and use ofthis dedicated SCADA and telecommunications equipment. Specific details and requirements lor this SCADA Telemetry and telecommunications equipment will be established in the GIA process and documented in the GIA. Seller shall be responsible for all initial and ongoing costs of this equipment as specificd in Schedule 72 and the GIA. ARI'ICLE XI - RECORDS I I . I Maintenance of Rccords - Scllcr shall maintain monthly records at the Facility or such other |.2 location mutually acceplable to the Parties. These records shall includc total generation, Net Energy, Station Use, Surplus L,nergy, lnadvertent Energy and maximum hourly generation (kW) and be recorded in a form and content acceptable to [daho Power. Monthly records shall be retained for a period of not less than five (5) years. lnspection - Either Party, after reasonable notice to the other Party, shall have the right, during normal business hours, to inspect and audit any or all records pertaining to the Seller's Facility generation, Net Energy, Station Use, Surplus Energy, Inadvertent Enerry and maximum generation (kW) records pertaining to the Seller's Facility. AR'I'I LE Xll: OPERATIONS 12 .1 Communications - Idaho Power and the Seller shall maintain appropriate operating communications through ldaho Power's Designated Dispatch Facility in accordance with the GIA. 12 .2 Acceotance of Enerp\, t2.2.1 Idaho Power shall be excuscd from accepting and paying for Net Energy or accepting Inadv€rtent linergy which would have otherwise been produced by the Facility and delivered by the Sellcr to the Point of Delivery: a.) Ifgeneration deliveries are interrupted due an event of Force Majcure or Forced Outage. b.) If interruption of generation deliveries is allowed by Section 210 of the 24 t2.2.7 )2.2.3 12.2.4 Public Utility Regulatory Policies Act of 1978 and l8 C.F.R. $292.304 c.) If temporary disconnection and/or interruption of energy deliveries is in accordance with Schedule 72 or other provisions as specified within the CIA. d.) If ldaho Power determines that curtailment, interruption or reduction of Net Energy or Inadvertent Energy deliveries is necessary because of line construction, clectrical system maintenance requirements, emergencies, electrical system operating conditions, electrical system reliability emergencies on its system, or as otherwise required by Prudent Electrical Practices. If, in the reasonable opinion of Idaho Power, Seller's operation of the Facility or lnterconnection Facilities is unsafe or may otherwise adversely affect Idaho Power's equipment, personnel or service to its customers, Idaho Power may temporarily disconnect the Facility from Idaho Power's transmission/distribution system as specified within the C IA or Schedule 72 or take such other reasonable steps as Idaho Power deems appropriate. Under no circumstances will the Seller deliver generation from the Facility to the Point of Delivery in an amount that exceeds the Maximum Capacity Amount at any moment in time. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a Material Breach of this Agreement. If Idaho Power is unablc to accept the generation from this Facility and is not excused from accepting the Facility's generation, Idaho Power's damages shall be limited to only the value of the estimated electricity that ldaho Power was unable to accept valued at the applicable energy prices specified in this Agreement. ldaho Power will have no responsibility to pay for any other costs, lost revenue or consequential damages the Facility may incur. 12.3 Seller Declared Suspension of Enerqv Deliveries 12.3.1 If the Seller's Facility experiences a Forced Outage, and the Seller initiates a Declared 25 12.3.2 Suspension of Energy Deliveries, Seller shall, after giving notice as provided in paragraph 12.3.2 below, temporarily reduce deliveries of Net Energy (kW) to Idaho Power from the Facility to not exceed the reduced enerry deliveries (kW) stated by the Seller in the initial declaration for a period of not less than forty-eight (48) hours ("Declared Suspension of Energy Deliveries"). The Seller's Declared Suspension of llnergy Deliveries will begin at the start ofthe next lull hour following the Seller's telcphone notification as specified in paragraph 12.3.2 and will continue for the time as specified in the written notification provided by the Seller. In the month(s) in which the Declared Suspension of Energy occurred, the Estimated Net Energy Amount will be adjusted as specified in paragraph 6.2.3. Ifthe Seller desires to initiate a Declared Suspension of Energy Deliveries as provided in paragraph l2.3.l,theSellerwill notifuthe Designated Dispatch Facility by telephone. The beginning hour ofthe Declared Suspension of Energy f)cliveries will be at the earliest the next full hour after making telephone contact with ldaho Power. The Seller will, within twenty-four (24) hours after the telephone contact, provide ldaho Power a written notice in accordance with Article XXV that will contain the beginning hour and expected duration of the Declared Suspension of Energy Deliveries, a description of thc conditions that caused the Seller to initiate a Declared Suspcnsion of Energy Deliveries and the reduced level (kW) of energy deliveries the Facility is requesting that will be set as the maximum energy deliveries to Idaho Power for the duration of the Declared Suspension of Energy Delivery event (not less than 48 hours). Idaho Power will review the documentation provided by the Seller to detcrmine ldaho Power's acceptance ofthc described lorced Outage as qualifuing for a Declared Suspension of Energy Deliveries as specified in paragraph 12.3.1. Idaho Power's acceptance ofthe Seller's Forced Outage as an acccptable Forced Outage will be based upon the clear documentation provided by the Seller that the Forced Outage is not due to an event of Iorce Majeure or by neglect, disrepair or lack of adequate preventative maintenance of the Seller's Facility. 26 12.4 Scheduled Maintenance On or before January 3 I't ol each calendar year, Seller shall submit a written proposed maintenance schedule of significant facility maintenance for that calendar year and ldaho Power and Seller shall mutually agree as to the acceptability of the proposed schcdule. lf the Seller intends to perform planned maintenance at approximately the same time every year, the Seller may submit a maintenancc schedule for the first calendar year and includc a statement that this maintenance schedule shall be consistent for all future years, until such time as the Seller notifies ldaho Powcr ofa change to this schedule. The Parties determination as to the acceptability of the Seller's timetable for scheduled maintenance will take into consideration Prudent Electrical Practices, ldaho Power system requirements and the Seller's preferred schedule. Neither Party shall unreasonably withhold acceptance of the proposed maintenance schedule. 12.5 ldaho Powcr Maintenanse Information Upon recciving a ll'riltcn rcquest from thc Scller. Idaho Power shall provide publicly available inlormation with regard to ldaho Power planned maintenance information that may impact the Facility. 12.6 Contact Prior to Curtailment - Idaho Power will make a reasonable attempt to contact the Seller prior to interrupting the interconnection or curtailing deliveries from the Seller's Facility. Seller understands that in the case of emergency circumstances, real time operations ol the electrical system, and/or unplanned events, Idaho Power may nol be able to provide notice to the Seller prior to interruption, curtailment, or reduction ofelectrical energy deliveries to ldaho Power. l rcLI xilt IN DEMN IF I AND IN ll ll.l Indemnification - Each Pany shall agree to hold harmless and to indonnil_v the other Pany, ils officers, and employees against all loss, damage, expensc and liability to third persons for injury to or death of person or injury to property, proximately caused by the indemnifuing Party's, (a) construction, ownership, operation or maintenance of, or by failure of, any of such Party's works or facilities used in connection with this Agreement, or (b) ncgligent or intentional acts, errors or omissions. The indemnilying Party shall, on the other Party's request, defcnd any suit asse(ing a claim covered by this indemnity. The indemni!ing Party shall pay all documented costs, including 27 t3.2 t4.l reasonable attomey fees that may be incurred by the other Party in enforcing this indemnity. Insurance - During the term ofthis Agreementt Seller shall secure and continuously carry insurance as specified in Appcndix G. ARTICLE XIV: FORCE MAJL,I.JRE As used in this Agreement, "Force Majeure" or "an event of Force Majeure" means any cause beyond the control of the Seller or of ldaho Power which, despite the exercise of due diligence, such Party is unable to prevent or overcome. Force Majeure includes, but is not limited to, acts of God, fire, flood, storms, wars, hoslilities, civil strife, strikes and other labor disturbances, ea(hquakes, fires, lightning, epidemics, sabotage, or changes in law or regulation occurring after the effective date, which, by the exercise of reasonable forcsight such party could not reasonably have been expected to avoid and by thc exercise of due diligence, it shall be unable to overcome. Fluctuations and/or changes of the motive force and/or the fuel supply gg9_49! events ol Force Majeure. Ifeither Party is rendered wholly or in part unable to perform its obligations under this Agreement because of an event of Force Majeure, both Parties shall be excused from whatcver performance is affected by the event of Force Majeure, provided that: (l) The non-performing Party shall, as soon as is reasonably possible after the occunence ofthe Force Majeure, give the other Party written notice describing thc particulars of the occurrence. (2) The suspension of performance shall be of no greater scope and of no longer duration than is required by the evcnt of Force Majeure. (3) No obligations of either Party which arose before the occurrence of the Force Majeure event and which could and should have been fully performed before such occurrence shall be excused as a result of such occurrencc. 28 AR|ICLII XV: LIABILITY DEDICATIoN l5.l Limitation of l-iahilih. Nothin g in this Agreement shall bc construed to creatc any duiJ- to, any standard ofcare with reference to, or any liability to any person not a Party to this Agroemenl. Neither party shall be liable to the other for any indirect, special, consequential, nor punitive damages, except as expressly authorized by this Agreement. Dedication. No undertaking by one Party to the other under any provision ofthis Agreement shall constitute the dedication ofthat Party's system or any portion thereofto the Party or the public or affect the status ofldaho Power as an independent public utility corporation or Seller as an independent individual or entity. 15.2 16. r 17.1 I8.r r 8.2 ARI lCLE XVI: SEVt,RAI- OBLIGAI'IONS Except where specifically stated in this Agreement to be otherwise, the duties, obligations and liabilities ofthe Parties are intended to be several and notjoint or collective. Nothing contained in this Agreement shall be construed to create an association, trust, partnership orjoint venture or impose a trust or partnership duty. obligation or liability on or with regard to either Party. L,ach Party shall be individually and severally liable for its own obligations under this Agreement. AR'IlCl.E XVII: WAIVER Any waiver at any time by cither Party of its rights with respect to a default under this Agreement or with respect to any other matters arising in connection with this Agreement shall not be deemed a waiver with respect to any subsequent default or other matter. AR llCl.li XVIII: CHOICII OF LAWS A\l) Vl,Ntll, This Agreement shall be construed and interpreted in accordance with the laws ofthe State of ldaho without reference to its choice of law provisions. Venue for any litigation arising out ofor related to this Agreement will lie in the District Court of the Fourth Judicial District of ldaho in and for the County of Ada. 29 19. I t9.2 R LE XIX: DISPUTES AND DIIFAL]I, Disoutes - All disputes relatcd to or arising under this Agreement, including, but not limited to, the interpretation of the terms and conditions of this Agreement, will be submitted to the Commission for resolution. Notice of Default l9.Z.l Defaults - If either Party fails to perform any of the terms or conditions of this Agreement (an "event ofdefault"), the non-defaulting l)arty shall cause notice in writing to be given to the defaulting Party, specifoing the manner in which such delault occurred. Ifthe defaulting Party shall fail to cure such default within the sixty (60) days after service of such notice, or if the defaulting Party reasonably demonstrates to the other Party that the default can be cured within a commercially reasonable time but not within such sixty (60) day period and then fails to diligently pursue such cure, then the non-defaulting Party may, at its option, terminate this Agreement and/or pursue its legal or equitable remedies. 19.2.2 Matcrial Breaches - Thc notice and cure provisions in paragraph 19.2.I do not apply to defaults identified in this Agreement as Material Breaches. Material Breaches must be cured as expeditiously as possible following occurrence ofthe breach. ldaho Power can terminate the Agreement at any time following the Material Breach unless there is a specific cure, or cure period, identified by this Agreement for that specific Material Breach then that cure, or cure period, shall apply. 19.3 Prior to the Operation Date and therealter lor the full term of this Agreement, Seller will provide Idaho Power with the following: 19.3.1 lnsurance - Evidence ofcompliance with the provisions ofAppendix G. lf Seller fails to comply, such failure will be a Material Breach. 19.3-Z Enqineer's Certifications - Every three (3) ycars after the Operation Date, Seller will supply ldaho Power with a completed Certification ol Ongoing Operations and Maintenance form as specified in Appendix C. 'l'he certification will be from a 30 20.1 t 9.3,3 Registered Professional Engineer licensed in the State of ldaho. Seller's failure to supply the required certificate will be an evcnt of default. Such a default may only be cured by Seller providing the required certificate; and l,icenses / Leases/ Permits / Determinations - During thc full term of this Agreement, Sellcr shall maintain compliance *ith all leases, permits, licenses and determinations described in paragraph 4.1.1 of this Agreement. In addition, Seller will supply ldaho Power with copies ofany new or additional permits, licenses or detcrminations. At least every fifth Contract Year, Seller will update the documentation described in Paragraph 4.1 .l . If at any time Seller fails to maintain compliance with the leases, permits, licenses and determinations described in paragraph 4.1.1 or to provide rhe documentation required by this paragraph, such failure will be an event of delault and may qqb be cured by Seller submitting to Idaho Powcr cvidence of compliance from the permitting agency. ARTICLE XX: GOVERNMENTAL AU,I.I IORIZATION This Agreement is subject to thejurisdiction ofthose governmental agencies having control over either Party of this Agreement. ARTICI.F. XXI: COMMISSION- ORDER Idaho Power shall file this Agreement for its acccptance or rejection by the Commission. This Agreement shall only become finally effective upon the Commission's approval ofall terms and provisions hereof without change or condition and declaration that all payments to be made to Seller hercunder shall be allowcd as prudently incurred expenses for ratemaking purposes. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns ofthe Parties hereto. Neithcr this Agreement nor any rights or obligations ofeither Party hereunder may be assigned, in whole or in part, by operation of law or otherwise, without the prior 31 2t.t 22.1 ARTICI,I] XXII: SUCCESSORS AND ASSI(iNS 23.1 24.1 25 .l wrinen consent ofboth Parties, which consent shall not be unreasonably withheld. Any party with which Idaho Power may consolidate, merge, convey or transfer substantially all of its electric utility assets, shall automatically, without lurther act, and without need of consent or approval by the Seller, succeed to all ofldaho Power's rights, obligations and interests under this Agreemcnt. Any purported assignment in derogation ofthe foregoing shall be void. This article shall not prevent a financing entity with recorded or sccured rights from exercising all rights and remedies available to it under law or contract. [daho Power shall have the right to be notified by thc financing entity that it is cxercising such rights or remedies. AR.l lCLIr XXIII: MODIFICATION No modification to this Agrcement shall be valid unless it is in writing and signed by both Parties and subsequently approved by the Commission. ARTICLE XXIV: TAXIIS Each Party shall pay before delinquency all taxes and other govemmental charges which, il failed to be paid when due, could result in a lien upon the Facility or the lnterconnection Facilities. ARTICLE XXV: NO'I'ICES AND AUI'IIORIZED AGEN IS Notices - All written notices under this Agrecment shall be directcd as follows and shal] bc considered delivcrcd when faxed, e-mailed and confirmed with deposit in the U.S. Mail, first- class. postage prepaid. as lollows: To Sellcr: Original document 1o: David Stephenson Big Wood Canal Company 409 N. Apple Street Shoshone, Idaho 833 52 davidstephensonldcablconc.net 32 Copies to: Ted Sorenson 1032 Grandview Drive Ivins. UT 84738 ted@1ca!g!!a!.!e1 'l'o Idaho Power: Original document to: Vice President, Power Supply ldaho Power Company PO Box 70 Boise, Idaho 83707 energycontracts@ idahopower.com Copy ofdocument to: Cogeneration and Small Power Production Idaho Power Company PO Box 70 Boiss, Idaho 83 707 ener8ycontracts@ idahopower.com Either Parry" may change the contact person and/or address information listed above, by providing written notice from an authorized person representing thc Party 25.2 Authorizcd Agsds) Name Title David Stephenson Manager Ted Sorenson ABent George Elliott Agent Miriah Elliott Agent 'l he Seller may modily the Authorized Agents by requesting and completing an Authorized Agent form provided by Idaho Power. -l'his document will include the requested changes and requirc signature(s) from an authorized pany ofthe Seller. -)-) AR I'lCl.E XXVI: ADDITIONAL TERMS AND CONDI IIONS 26.1 Equal Employment. Seller agrees to comply with all applicablc cqual cmployment opportunity, 26.2 small business, and affirmative action laws and regulations. All Equal Employment Opportunity and affirmative action laws and regulations are hereby incorporated by this reference, including provisions of3E U.S.C. S 4212, Executive Order I1246, as amended, and any subsequent executive orden or other laws or regulations relating to equal opponunity for employment on government contracts. To the extent this Agreement is covered by Executive Order 11246, the Equal Opportunity Clauses contained in 4l C,F.R. $60-1.4,41 C.F.R. $60-250.5, and 4l C.F.R. $60-741.5 are incorporated herein by reference. Prior to the Seller executing this Agreement, the Seller shall have: a) Submitted an interconnection application for this Facility and is in compliance with all payments and requirements of the interconnection process. b) Acknowledged responsibility for all interconnection costs and any costs associated with acquiring adequale firm transmission capacity to enable the project to be classified as an Idaho Power DNR. Iffinal interconnection or transmission studies are not complete a11he time the Seller executes this Agreement, the Seller understands that the Seller's obligations to pay Delay and Termination Damages associated with the project's lailure to achieve the Operation Date by the Scheduled Operation Date as specified in this Agreement is not relieved by final interconnection or transmission costs, processes or schedules. c) Provide acceptable and verifiable evidence to ldaho Power that demonstrates the Facility is eligible for the published avoidcd costs requested by the Seller and contained within this Agreement. Commission Order No. 34350 effective June 1, 2019, provides the current published avoided costs lor Non-Seasonal Hydro F'acilities, Seasonal llydro Facilities, Other Facilities, Solar F'acilities, and Wind Facilities. Commission Order No. 32697 provides for full capacity payments for existing projects that have requested replacement contracts after their existing contract expires. 34 26.3 This Agreement includes the following appendices, which are attached hereto and included by relerence: Appendix A - Generation Scheduling and Reporting Appendix B - Facility and Point ofDelivery Appendix C - Engineer's Certifications Appendix D - Forms of l,iquid Security Appendix E - Seasonal Hydro Facility Energy Prices Appendix F - Non-Seasonal Hydro Facility Energy Priccs Appendix G - lnsurance Requirements ARTICLE XXVII: SEVI1RABILITY 21.t The invalidity or unenforceability ofany term or provision of this Agreement shall not affect the validity or enforceability of any other terms or provisions and this Agreement shall bc construed in all other respects as ilthe invalid or unenforceable term or provision were omilled. ARTICLE XXVIII: COUNTERPAR I S 28.1 '['his Agreement may be cxccuted in two or more countcrparts, each of which shall be deemed an original but all ofwhich together shallconstitute onc and the same instrument. 35 ARTICLI, XXIX: ENTIRE AGREEML,NT 29.1 This Agreement constitutes the entire Agreement ofthe Parties conceming the subject matter hereofand supersedes all prior or contemporaneous oral or written agreements between the Parties conceming the subject matter hereof. IN WITNESS WIIEREOF, The Parties hereto have caused this Agreement to be executed in their respective names on the dates set forth below: ldaho Power Companv Bis Wood Canal Company By By Tessia Park Vice President, Power Supply David Stephenson Manager Datcd it vr-(q Datcd //tt- E "ldaho Power""Seller" 36 APPENDIX A A _I MONTHLY POWER PRODUCTION AND SWITCHING REPORT At the end ofeach month, the power production and switching report will be emailed to: csppaccounting@idahopower.com Ilemail is not available, then the repon can be mailed to: Idaho Power Company Cogeneration and Small Power Production Reports C/O Financial Accounting l22l W. ldaho Boise, ldaho 83702 The meter readings required on this report will be the readings on the ldaho Power meter equipment measuring the !'acility's total energy production and Station Usage delivered to Idaho Power and the maximum generated energy (kW) as recorded on thc metering equipment and./or any other required energJ measurements to adequately administerthis Agreement. This document shall bethedocumentto enable ldaho Power to begin the energy payment calculation and payment prcrcess. The meter readings on this report may not be used to calculate the actual payment, but instead will be a check ofthe automated meter reading inlormation that will be gathered as described in item A-2 below: I Idaho Power Company Cogeneration and Small Power Production MONTHLY POWER PRODUCTION AND SWITCHING REPORT Month Ycar Project Name Address C ity Project Phone Number: State Facility ()utput Station Usage Metered Maximum kw Meter Number: End of Month kWh Meter Reading: Beginning of Month kWh Meter: Difference: Times Meter Constant: kWh for the Month: Metered l)emand: Breaker Opening Record Breaker Closing Record Date 'l'imc Mctcr Datc Time Meter I ) 3 4 5 6 7 Breaker Opcninp Reason Codcs Lack of Adequate Prime Mover Forccd Outage of Facility Disturbance of IPCo System Scheduled MNintenxnce Testing of Protection Systcms Cause Unknown Other (Explain) I hereby certify that the above met€r readings arc true and correct as of Midnight on the last day of the abovc month and that the switching record is accurate and complete as required by the Encrgy Sales Agreement to which I am a Party. Signature 38 Date zip Net Generation Reason A-2 AUTOMATED METER RBADINC COLLECTION PROCESS Monthly, ldaho Power will use the provided metering and telemctry equipment and processes to collect the meter reading information from the Idaho Power provided metering equipment that measures the Ne1 Energy and energy delivered to supply Station Use for the Facility recorded at l2:00 AM (Midnight) of the last day ofthe month. The meter information collectcd will include but not be limited to energy production, Station Use, the maximum generated power (kW) and any other required energy measurements to adequately administer this Agreement. A-3 ST]LLER CONTACT INFORMA'IION Seller's Contact Information Project Manasement Name: Ted Sorcnson Cell Phone: 208-589-6908 Name: Dale Hellwinkel Cell Phone: 208-358- l 7l I 39 24-Hour Project Opcrational Contact B-l B-2 B-3 APPENDIX B FACII-ITY AND POINI' OT DELIVERY Project Number: 3 I 5 I 5105 DESCRIPTION OF FACILITY The Sagcbrush hydro lacility is located on the South Gooding Main Canal, near Gooding, Idaho The repairs to the project include the installation of a single 575 kW vertical Kaplan turbine generating unit. The manufacturer will bc China Chang Jiang llnergy Corp and they will build it in 2019 or 2020. Facility Nameplate Capacity: 575 kW Qualilying Facility Catcgory (Small I'ower Production or Cogeneration): Small Power Production Primary Energy Source (llydro, Wind, Solar, Biomass, Waste, Geothermal): llydfs Fuelcd or Non-Fueled Rate (Generator primarily fueled with fossil or non-lossil fuel): Non-Fueled Any modifications to the l"acility, including but not limited to thc generator or turbine, that ( I ) incrcascs or decreases the Facility Nameplate Capacity, or (2) changes the Qualifuing Facility Category, or (3) changes the Primary Enerry Source or (4) changes to the generator luel and subsequently the Fueled Rate or Non-Fucled Rate, will require a rcview of the Agreement terms, conditions and pricing and ldaho Power, at its solc determination, mav adjust the pricing or terminate the Agreement. Ifthe Agrcement is terminated bccause olsaid modifications, the Scller will bc rcsponsible lor any 'lermination Damages. LOCATION OF I.ACILITY Near: Gooding, Idaho Actual or nearest physical street address: 4/l0ths of a mile NW of intersection of Old Gooding Highway and Ohlinger Rd. GPS Coordinates: Latitude Decimal Degrees 42.947 493 LongitudeDecimalDegrees -114.591674 State: ldaho County: Gooding Description of Interconnection Location: Project is already interconnected at powerhouse. SCHEDULED FIRST ENERGY DATE AND OPERATION DATE Since this Facility is interconnected and already delivering energy to ldaho Power in accordance with a Firm Energ;r Sales Agreement that will expire at hour ending 2400 on May 31,2020, it is 40 Project Name: Sagebrush Ilydro Project B-4 ts-5 B-6 expected that the First Energy Date and the Operal.ion Date for this Agreement shall both occur at the same time. Both the Scheduled l'irst Energy Date and the Scheduled Operation Date will be at 00:01 AM on June l, 2020, provided that the Commission approvcs the replacement Agrecmenl and the Seller completes all ofthe Articlc IV and Article V requirements prior to May 3 l, 2020. MAXIMUM CAPACITY AMOUNT: The Maximum Capacity Amounl is 575 kW which is consistent with the value provided by the Seller to ldaho Power in accordance with the GIA. This value is the maximum generation (kW) that potentially could be delivered by the Seller's Facility to the ldaho Power electrical system at any moment in time. POIN'f OF DELIVERY "Point of Delivery" means, unless otherwise agreed by both Parties, the point ofwhere the Sellcr's Facility energy is delivered to the ldaho Power electrical system. The GIA will determine the specific Point of Delivery for this Facility. The Point of Delivery identified by the GIA will become an integral part ofthis Agreement. LOSSES Ifthe Idaho Power metering equipment is capable ofmeasuring the energy deliveries by the Seller to the Idaho Power electrical system at the Point of Delivery, no l,osses will be calculated for this F-acility. Ifthe ldaho Power metering equipment is unable to measure the energy deliveries directly at the Point of Delivery, the Losses will be calculated. This loss calculation is cunently set at one and twenty-seven one hundredths percenl (l.27oh) of the kWh electricity production recorded on the Facility generation metering equipment. Ifat any time during the term ofthis Agreement, Idaho Power determines that the loss calculation needs to be revised due to a change in the electrical equipment or some oth€r factor, then ldaho Power may adjust the calculation and retroactively adjust the previous month's kWh loss calculations. 4l B-7 DESIGNATED NETWORK RESOURCts (DNR) This Facility is an ldaho Power DNR pursuant to an existing energy sales agreement. The DNR status will continue if this Agreement is l) executed and approved by the Commission, and 2) a GIA has been executed by both parties and 3) the Seller is in compliance with all requirements of that GIA. Idaho Power cannot accept or pay for generation from this Facility ifthe Facility has not achieved the status of being an ldaho Power DNR. Federal Energy Regulatory Commission ("FERC) rules require ldaho Power to prepare and submit the application to achieve DNR status for this Facility. Because much ofthe information Idaho Powcr needs to prepare the DNR application is specific to the Seller's Facility, Idaho Power's ability to file the DNR application in a timely manner is contingent upon timely receipt olthe required information from the Seller. Prior to Idaho Power beginning the process to enable ldaho Power to submit a request for DNR status for this Facility, the Seller shall have l) filed a Generation [nterconncction application,2) submitted all information required by ldaho Power to complete the application, and 3) either executed this Agreement or, at a minimum, provided ldaho Power with confirmation of the Seller's intent to complete this Agreement in a timely manner. Seller's failure to provide complete and accurate information in a timely manner can significantly impact Idaho Power's ability and cost to attain the DNR designation for the Seller's Facility and the Seller shall bear the costs of any of these delays that are a result of any action or inaction by the Seller. APPENDIX C IiNGINEER'S CER'I'I I. ICATION oli OPERAl'IONS & MAINTENANCL, POI,ICY The undersigned on behalf of himself/herself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: I . That Engineer is a Licensed Professional Engineer in good standing in the State of ldaho. 2. That Engineer has reviewed the Energy Sales Agreement, hereafter referred to as the "Agreement," betwccn ldaho Power as Buyer, and as Seller. dated 3, 'l hat thc cogeneration or small power production project which is the subjecl ofthe Agreement and this Statemcnt is identilled as ldaho Power Company Facility No.and is hcrcinalter referred to as the "Project." 4. That the Project, which is commonly known as the Project, is located in Section Township _ Range []oisc Mcridian.County, Idaho. 5. That Engineer recognizes that the Agreement provides for the Project to fumish clectrical energy to ldaho I'ower for a year pcriod 6. That trngineer has substantial experience in the design, construction and operation ofelectric power plants ofthe same type as this Project. 7. That Engineer has no economic relationship to the Design Engineer ofthis Project. 8. That Engineer has reviewed and/or supervised the review ofthe Policy for Operation and Maintenance ("O&M") for this Project and it is his professional opinion that, said Project has been designed and built to appropriate standards, and adherence to said O&M Policy will result in the Project's producing at or near the design electrical output, efficiency and plant factor for the full Contact Term of That I.)ngineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, is 43 I vears. relying on Engincer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, true and accurate to the best of his/her knowledge and therefore sets his/her hand and seal below. By (P.E. Stamp) Dale ++ APPENT)IX C EN(;INEER'S CERTIFICA'I'ION oll ONGOING OPERA1 IONS AND MAINTENANCE The undersigned on behall ol himselfi herself and hereinafter collectively referred to as "Engineer," hereby states and certifies to the Seller as follows: l. That Engineer is a Licensed Professional Engineer in good standing in the State of ldaho. 2. That flngineer has reviewed thc Energy Sales Agreement, hereafter referred to as the "Agreement," between ldaho Power as Buyer,and as Scller. dated 3. 'l'hat the cogeneration or small power production project which is the subject ofthe Agrccment and this Statemcnt is identificd as ldaho Pou'er Conrpany Facility No.and hcrcinalter refened to as thc "Project". 4. That the Project, which is commonly known as the Project, is located in Section _ Township _ Range _, Boise Meridian, _ County, Idaho. 5. That Engineer recognizes that the Agreement provides for the Project to fumish electrical energy to Idaho Power for a _ year period. 6. That Engineer has substantial experience in the design, construction and operation ofelectric powcr plants ofthe same type as this Project. 7. That Engineer has no economic relationship to the Design Engineer ofthis Project. 45 8. That Engineer has made a physical inspection of said Project, its operations and maintenance records since the last previous certified inspection. The Engineer certifies, based on the Project's appearance and the information provided by the Project, that the Project's ongoing O&M has been completed in accordance with said O&M Policy; that it is in reasonably good operating condition; and it is in the Engineer's professional opinion that if adherence to said O&M Policy continues, the Project will continue producing at or n€ar its design electrical output, efficiency and plant lactor for the remaining _ years ofthe Agreement. 9. That lingineer recognizes that ldaho Power, in accordance with paragraph 5.2 ofthe Agreement, is relying on Engineer's representations and opinions contained in this Statement. 10. That Engineer certifies that the above statements are complete, lrue and accurate to the best of his/her knowledge and therefore sets his/her hand and seal below. Bl (P.lr. Stamp) Date 46 ENCINET"R'S CERTIFICA'IION OF DESI(iN & CONS'I'RUCTION ADEQUAC]Y 1'he undcrsigned , on behalf of himself/herself and hereinafter collectivcly referred to as "lingineer", hereby states and certifies to ldaho Power as follows: l . That Engineer is a Licensed Professional Engineer in good standing in the State of ldaho. 2. That linginccr has reviewed the Energy Sales Agreement, hereafter referred to as the "Agreement", betrveen ldaho Power as Buyer. and as Scllcr. dated 3 That the cogeneration or small power production project, which is the subject of thc Agreement and this Statement. is identified as Idaho Power Company Facility No and is hereinafter referred to as the "Project". 4.ThattheProject,whichiscommonlyknownasthe-Project,islocatedin Scction _ Township Itange , Boise Meridian,County- Idaho 5 That Engineer recognizes that the Agreement provides for the Project to furnish electrical encrgy to ldaho Power for a year period. 6. That Engineer has substantial experience in the design, construction and operation of electric power plants ofthe same type as this Project. 7. That Engineer has no economic relationship to the Design Engineer of this Project and has made the analysis ofthe plans and specifications independently. 8. That Engineer has reviewed the engineering design and construction of the Project, including the civil work, electrical work, generating cquipment, prime mover conveyance system, Seller furnished Interconnection Facilities and other Project facilities and equipment. 9. That the Project has been constructed in accordance with said plans and specifications, all 47 APPt.]NDIX C applicable codes and consistent with Prudent Elcctrical Practices as that term is described in the Agreement. 10. That the design and construction of the Project is such that with reasonable and prudent operation and maintenancc practices by Seller, the Project is capable of performing in accordance with the terms ofthc Agreement and rvith Itrudent Electrical Pracliccs lor a year period. ll. That Engineer recognizes that Idaho Power, in accordance with paragraph 5.2 of the Agreement, in interconnecting the Project with its system, is rclying on Engineer's representations and opinions contained in this Statement. l?- -l'hat Engineer certifies that the above statements are complete, true and accurate to the best of his/her knowledge and therefore sets his/her hand and seal below. By (P.E. Stamp) Date 48 FORMS OF I,IQUID SECURITY -l'he Seller shall provide ldaho Power with commercially rcasonable security instruments such as Cash, Cash liscrow Security, Guarantee or l.ettcr of Crcdit as those terms are defined below or othcr forms of liquid financial security that would provide readily available cash to Idaho Power to satisfy the Security Deposit requirement and any other security requirements within this Agreement. For the purpose ofthis Appendix D. thc tcrm "Credit Requirements" shall mean acceptable financial creditworthiness ofthe entity providing the security instrument in relation to the term of the obligation in the reasonable judgment of ldaho Power, provided that any guarantee and/or [,ettcr of Crcdit issued by any other entity with a short-term or long-term investment grade credit rating by Standard & Poor's Corporation or Moody's Investor Services, Inc. shall be deemed to have acceptable fi nancial creditworthiness. l. Cash Seller shall deposit cash in the amount ofthe required Security Deposit with Idaho Power. Idaho Power will not be responsible to calculate or pay any interest on these funds deposited with Idaho Power. 2. Cash Escrow Security - Seller shall dcposit funds in an escrow account established by the Seller in a banking institution acceptable to both Parties equal to the required security amount(s). A single escrow account may be established for all security requirements, however detailed accounting of the individual security requirements must be maintained by thc Seller and Seller shall be obligated to maintain the appropriate amounts to satisry each ,19 APPENDIX I.) security requirement within the individually identified accounts. I'he Seiler shall be responsible for all cosls 3. Guarantee or Letter ofCredit Security Seller shall post and maintain in an amount equal to the Security Deposit: (a) a guaranty from a party that satisfies the Credit Requirements, in a form acceptable to ldaho Power at its discretion, or (b) an irrevocable Letter of Credit in a form acceptable to Idaho Power, in favor of ldaho Power. The l-etter of Credit will be issued by a financial institution acceptable to both parties. A single aggregate Guarantee or Letter of Credit may be provided lor all security requiremcnts, however detailed accounting ofthc individual security requirements must be maintained by the Seller and Seller shall be obligated to maintain the appropriate amounts to satisly each security requirement within the individually identified accounts. The Seller shall be responsible for all costs associated with establishing and maintaining the Guarantee(s) or t,ctte(s) of Credit. 50 APPI]NDIX E SEASONAL HYDRO I-ACILITY E,NI]RGY PRICES (Prices based on the Maximum Capacity Amount of 575 kW, Non-Fueled Rates) E-l Base Energv Heav."y Load Purchase Price Forall Base linergy received during Heavy Load Hours, Idaho Power will pay the non-levelized energy pricc in accordance with Commission Order No. 34350 eftbctive June l, 2019, with full capacity payments per Commission Order No. 37697 and seasonalization factors applied : Year Season I - (73.50 %) Mills/kWh Season 2 - ( 120.00 %) MillsikWh Season 3 - (100.00 %) Mills,&Wh 202.0 202t 2022 2023 2024 2025 2026 2027 2028 2029 2030 203 r 2032 2033 2034 2035 7036 2037 2038 2039 2040 2041 57.27 57.99 59.52 6t .77 64.43 67.06 69.00 '70.24 12.21 73.41 74.98 76.32 78.72 80.63 82.52 84.35 86.40 88.0s 89.80 9l .65 94.07 95.69 93.5 r 94.67 97.18 100.85 105.19 109.48 I12.66 r 14.68 I I 7.89 I 19.86 122.42 124.61 128.52 13t.64 134.17 137 .72 l4 I .06 143.76 146.61 149.64 153.59 156.24 71 .92 78.89 80.98 84.04 81 .66 91.23 93.88 95.51 98.24 99.88 102.01 I 01.84 107. l0 109.70 I t2.21 I t4.71 I I 7.55 I t9.80 t27.t8 t24.70 127.99 130.20 51 L.-2 Base Energv Liqht Load Purchase Price - For all Base Energy received during l,ight Load Hours, Idaho Power will pay the non-levelized energy price in accordance with Commission Order No. 34350 effective June l, 2019, with full capacity payments per Commission Order No. 32697 and, seasonalization lactors applied: Year Season I - (73.50 %) M ills/kWh Season 2 - (120.00 %) Millvkwh Scason 3 - ( 100.00 %) Mills/kWh 2020 2021 2022 2023 2024 7025 2026 2027 2028 2029 2030 203 I 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 5t.92 52.64 54.11 56.42 59.08 6t .71 63.65 64.89 66.86 68.06 69.63 70.97 73.37 75.28 77.17 79.00 8l .05 82.70 84.45 86.30 88.72 90.34 84.77 85.94 88.45 92.1 I 96.45 t00.74 103.92 105.95 109.1 5 I I l.l2 I t3.68 I t5.88 I19.79 t22.91 12s.99 r28.98 132.32 135.02 137.88 140.90 't 44.86 147 .50 70.64 7t.61 73.70 76.76 80.38 83.95 86.60 88.29 90.96 92.60 94.73 96.56 99.82 t02.42 104.99 t07 .49 t't0.27 1',tz.52 il4.90 1 t7.42 120.71 122.97 52 E-3 All Hours Energy Pricq - The price to be used in the calculation of the Surplus Energy Price and Delay Damage Price shall be the non-levelized energy price in accordance with Commission Order 34350 effective June l, 2019, with full capacity payments per Commission Order No. 32697 and seasonalization factors applied: Y ear Season I - (73.50 %) Mills/kWh Season 2 - ( 120.00 %) Mills/kWh SeasonS-(100.00%) Mills/kwh 2020 z02t 2022 2023 2024 2025 2026 2027 2028 2029 2010 2031 7032 2033 2034 2035 2036 2037 2038 2039 2040 204t 54.89 55.6r 57.14 59.39 62.05 64.68 66.62 67 .86 69.83 7t.03 72.60 73.94 76.34 78.25 80. t4 8l .97 84.02 85.67 87.42 89.27 9r.69 93.31 89.62 90.78 93.29 96.96 l0l .30 105.59 108.77 I10.79 il4.00 115.97 I 18.53 120.72 124.64 127.76 r30.84 r33.83 131.t'7 139.81 142.72 145 .7 5 149.70 152.35 7 4.68 '15.65 77.15 80.80 84.47 87 99 90.64 92.33 95.00 96.64 98.77 100.60 r 03,86 I 06,46 109.03 1 .53 I 14.1 I I 16.56 I I ti.94 \21 .46 124.75 126.96 5l APPENDIX F' NON-SI,ASONAL I IYDRO FACII,ITY ENERGY PRICES (Priccs based on the Maximum Capacity Amount o1575 kW, Non-Fueled Rates) F-l Base Energy eaw Load Purchase Price Forall Base [nergy rcceived during Heavy Load Hours, Idaho Power will pay the non-levelized cnergS, price in accordance rvith Commission Order No. 34350 eflective June l, 2019, with full capacity payments per Commission Order No. 32697 and seasonalization factors applied : Ycar Season l-(73.50%) Millykwh Season 2 - ( 120.00 %) Mills/kWh Season3-(100.00%) Mills/kWh 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 ?041 43.70 44.27 45.55 47.59 50.05 52.46 54.20 55.22 56.96 57.94 59.28 60.40 62.56 64.73 65.E8 6',7.47 69.27 70.67 72.16 73.75 7 5.91 77.26 7t.35 72.t9 74.37 77.70 8t.71 85.65 88.48 90.15 93.00 94.60 96.79 98.61 t02.14 104.87 107.56 I t0.15 I I 3.09 I t5.37 I I 7.81 t20.4t 123.94 126.14 59.46 60. t6 6t.98 64.75 68.09 7l .38 73.7 4 75.13 77 .50 78.83 80.66 82.t1 85.1 I 87.3 9 89.63 91.79 94.24 96.15 98.18 100.34 r03.28 105.12 54 t-2 Base Enerqy Light Load Purchasc Price For all Base Energy received during l,ight Load Hours, Idaho Power will pay thc non-levelized energy price in accordance with Commission Order No. 34350 effective June 1, 2019, with full capacity payments per Commission Order No. 32697 aad seasonalization factors appl ied: Year Scason I - (73.50 %) Mills/kWh Season 2 - ( I 20.00 %) M ills/kWh Season 3 - (100.00 %) Mills/kWh 2020 20zt 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 38.3s 3 8.87 40.20 42.24 44.69 47.1 | 48.85 49.87 5t.61 52.59 53.93 55.05 57.21 58.88 60.53 62.12 63.92 65.32 66.81 68.40 70.56 71 .9t 62.62 63.46 65.64 68.97 72.97 76.92 79.75 81.41 84.26 85.87 88.05 89.87 93.40 96.13 98.82 l0 t .42 104.35 106.64 109.08 |1.6',7 l r5.20 I I 7.41 52.18 5 2.88 J4- /t' 57 .41 60_81 64. l0 66.46 67.85 10.22 7i.55 73.38 74.89 17.83 80,1r 82.3 5 84,5 I 86,96 88.87 90.90 93.06 96.00 91 .84 55 I'-3 All Hours Enersv Price - Thc pricc to bc used in the calculation ofthe Surplus Iinergy Pricc and Delay Damage Price shall be the non-levelized energy price in accordance with Commission Order 34350 effective June l, 2019, with full capacity payments per Commission Order No. 32697 and seasonalization factors applied: Year Season I - (73.50 %) Mills/kWh Season2-(120.00%) Mills/kWh Season 3 - (100.00 %) Mills/kWh 41.32 4l .84 43.17 45.2t 47.66 50.08 51.82 52.84 54.58 55.56 56.90 58.02 60.1 8 6l .85 63.50 6s.09 66.88 68.29 69.78 7t.37 73.s3 74.88 67.46 68.3 I 70.49 73.81 77.82 81.77 84.60 86.26 89.1I 90.71 92.90 94.72 98.7s 100.98 103.67 106.27 109.20 I I t.49 I 13.92 I 16.52 120.05 t22.26 56.22 56.92 58.74 61.51 64.85 68. l4 70.50 71.89 74.26 75.60 77.42 78.93 8l .87 84.15 86.39 88.55 9l .00 92.91 94.94 97.10 100.04 l0l .88 56 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 203 l 2032 2033 2034 2035 2036 2031 2038 2039 2040 z04t INST-]RANCI] RIIQUIREMENTS The Seller shall secure and continuously carry insurance as specified within this Appendix for the term of the Agreement. lnsurance Requirements: l. All insurance required by this Agreement shall be placed with an insurance company with an A.M. Best Company rating of A- or better. 2. Ifthe insurance coverage required in this Appendix is cancelled, materially changed or lapses for any reason, the Seller will immediately notiry ldaho Power in writing. 'l'his notice will advise ldaho Power of the specific reason for cancellation, material change or lapse and the steps being taken to comply with these Insurance Requirements. Failure to provide this notice and to comply with these lnsurance Requirements within five (5) days of the cancellation, material change or lapse will constitute a Material Breach and Idaho Power may terminate this Agrcement. 3. Prior to the First Energy date and subsequently within ten (10) days ofthe annual anniversary of the Operation Date, the Seller shall provide a Certificate of Insurance in the name of Idaho Power Company and list ldaho Power Company as an Additional Insured [ndorsement and Waiver of Subrogation Endorsement. 4. The Certificate of lnsurance shall evidence the appropriate insurance coverage of Comprehensive General Liability lnsurancc for both bodily injury and property damage with limits equal to one million dollars ($1,000,000), each occurrence, combined single limit. The deductible for such insurance shall be consistent with current Insurance Industry Utility practices for similar property. 57 APPENDIX G