HomeMy WebLinkAbout20191209Application.pdfRECEIVED
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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.
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APPLICATION - 1
RECEIVED
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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
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(Seller), and IDAHO POWER COMPANY, an [daho corporation (ldaho Power), hereinafter somctimes
referred to collectively as "Panies" or individually as "Party."
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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.
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1.1
1.8
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l.l0 "Desi ted Dis atch Facilit " - Idaho Power's Load Serving Operations, or any subsequent
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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
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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.
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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.
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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
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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.
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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
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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
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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.
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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
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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