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HomeMy WebLinkAbout20220505Settlement Stipulation.pdfsm. AnID CORPCompany DONOVAN E. WALKER Lead Counsel dwalker@ida hopower.com May 5, 2022 VIA ELECTRONIC MAIL Jan Noriyuki, Secretary ldaho Public Utilities Commission 11331 West Chinden Blvd., Building 8 Suite 201-A Boise, ldaho 83714 Re Case No. !PC-E-20-27 Coleman HydroElectric LLC Idaho Power Company's Application re the Sales and Purchase of the Electric Energy from the Coleman Hydro Project Dear Ms. Noriyuki: Attached for electronic filing, please find the Settlement Stipulation and Motion to Approve Settlement Stipulation in the above entitled mafter. lf you have any questions about the aftached documents, please do not hesitate to contact me. Very truly yours, Zdat4 Donovan E. Walker DEW:cld Enclosures DONOVAN E. WALKER (lSB No. ss21 ) ldaho Power Company 1221 West ldaho Sfeet (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-531 7 Facsimile: (208) 388-6936 dwal ker@idahopower.com Attorney for ldaho Power Company GREGORY M. ADAMS (lSB No.74il) Richardson Adams, PLLC 515 N.27s Sheet Boise, ldaho 83702 Telephone: (208) 938-2236 Fax (208) 938-7904 greg@richardsonadams.com Attorney for Coleman Hydroelectric, LLC IN THE MATTER OF THE APPLICATION OF IDAHO POWER COMPANY FOR APPROVAL OR REJECTION OF AN ENERGY SALES AGREEMENT WITH COLEMAN HYDROELECTRIC LLC, FOR THE SALE AND PURCHASE OF ELECTRIC ENERGY FROM THE COLEMAN HYDRO PROJECT DAYN HARDTE (rSB NO. 9917) Deputy Attomey General ldaho Public Utilities Commission PO Box 83720 Boise, ldaho 83720fi74 Telephone: (208) 334-031 2 dayn.hard ie@puc.idaho.gov Attomey br Commission Staff CASE NO. |PC-E-2A-27 SETTLEMENT STIPULATION AND MOTION TO APPROVE SETTLEMENT ST!PULATION IN THE PUBLIC UTILITIES COMMISSION OF THE STATE OF IDAHO ) ) ) ) ) ) ) ) ) This settlement stipulation ('Settlement Stipulation") is entered into between ldaho Power Company ("ldaho Powe/' or "Company'); Coleman tPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 1 Hydroelectric, LLC ("Coleman Hydro'), and ldaho Public Utilities Commission Staff ("Staff) (hereafter jointly refened to as "Parties'or individually as a "Pafi"). As explained below, the Parties respectfully request that the ldaho Public Utilities Gommission ("Commission") enter its Order approving the Seftlement Stipulation and the Energy Sales Agreement, as amended by the First Amendment to the Energy Sales Agreement, between ldaho Power and Coleman Hydro without material change or condition, and without further proceedings as follows: r. TNTROOUCT|oiT AND IIOTION ' 1. The terms and conditions of this Settlement Stipulation are set forth herein. The Parties agree that this Settlement Stipulation represents a fair, just, and reasonable compromise of the dispute(s) between the Parties and that this Settlement Stipulation is in the public interest. The Parties jointly seek to obtain Commission approval of the Settlement Stipulation as a condition precedent b the Settlement Stipulation's efiectiveness. The Parties maintiain that the Settlement Stipulation as a whole and its acceptance by the Commission represent a reasonable resolution of all issues between the Pailies identified herein. Therefore, the Parties hereby respectfully move the Commission, in accordance with RP 56, for an Order approving the Settlement Stipulation executed between the Parties and all of its terms and conditions without material change or condition. II. BACKGROUilD 2. On June 25, 2021, ldaho Power filed an application requesting tPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 2 acoeptance or rejection of the Energy Sales Agreement executed between ldaho Power and Coleman Hydro. As submitted fur Commission approval, the Energy Sales Agreement contained the published avoided cost rates made effective on and after June 1, 2019 by Order No. 34350 (the'Order No. 34350 rates'). 3. The Commission established comment deadlines under its rules for modified procedure. 4. On August 6, 2021, Staff filed comments recommending, in relevant part, that the Commission should condition approval of the Energy Sales Agreement on the parties replaclng the Order No. 34350 rates with the rates approved effective June 1, 2020 by Order No. 34683 (the "Order No. 34683 rates'). Staff asserted that the rates proposed for use by ldaho Powe/s application - the Order No. 34350 rates - were unavailable because the Energy Sales Agreement was fully executed and effective afier the new rates took effect on June 1, 2O2O, per Oder No. 34683. 5. On August 13,2024, Haho Power liled reply comments providing explanation as to the parties' negotiations and why ldaho Power agreed to execute the agreement with the Order No. 34350 rates. ldaho Power explained that Coleman Hydro had been pursuing an Energy Sales Agreernent since May of 2018 and there were no material terms in dispute. lt explained that the final wrttten agreement had been sent to Coleman Hydro prior to June 1 ,2020, and the only element absent at the time of the June 1 rate change was the actual signatures on the Energy Sales Agreement, which occurred on June 8, and June tPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 3 19,2020. Thus, based on ldaho Powe/s understanding of PURPA's mandatory purchase obligation, ldaho Power did not believe it could refuse to sign the contract. But it asserted that eligibility for the Order No. 34350 rates was a determination to be decided by the Commission. 6. Coleman Hydro also filed its own reply comments, and after receiving an extension of time, it filed supplemential comments and a supporting declaration of Jordan Whittaker. Coleman Hydro's filings conoborated the timeline of events submitted by ldaho Power and further explained that prior to June 1, 2O2O, Coleman Hydro had already incurred the vast majority of the expense in completing construction of the facility in reliance on its belief it would be paid the Order No. 34350 rates. As of May 19, 2O2O, Coleman Hydro had communicated its agreement to allterms and conditions of the fina! Energy Sales Agreement, but it explained that the document was not executed untll after June 1,2O2O, due solely to the delay of having the physical document mailed back and forth to affix signatures to it during the global pandemic. Coleman Hydro argued that under applicable law, it was entitled to the Order No. 34350 rates contained in the executed agreement, and the Commission should apprcve the agreement as filed by ldaho Power. 7. On December 17, 2020, the Commission issued its Final Order No. 34870- The Commission's Final Order No. 34870 conditioned approval of the Energy Sales Agreement upon the Order No. 34350 rates being replaced with the Order No. 34683 rates. lPc-E-zo-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 4 8. On January 4, 2021, Coleman Hydro filed a petition for reconsideration, requesting that the Commission reconsider Final Order No. 34870 and approve the Energy Sales Agreement as filed by ldaho Power with the Order No. 34350 rates. ln support, Coleman Hydro submitted additional declarations in support of its position. 9. After granting reconsideration for further consideration, the Commission issued Reconsideration Order No. 34991 on April 5,2021. The Commission denied Coleman Hydro's request to revise its Final Order No. 34870. 10. On May 11,2021, Coleman Hydro filed a notice of appeal to the ldaho Supreme Court. 11. Before the due date for Coleman Hydro's opening brief in the Court, the Parties initiated settlement discussions. Based upon the settlernent discussions; as a compromise of the respective positions of the parties; in order to provide certainty and to avoid the uncertainties and cost of litigation before the Commission, @urts, and other administrative bodies; and for other consideration as set forth below; the Parties agree to the following terms, conditioned upon and subject to approval of the fullowing terms by the Commission: m. TERiis oF THE.SETTLEilEI{T SnpULATtON 12. ldaho Power and Coleman Hydro agree to a First Amendment to the Energy Sales Agreement to include the following amendments to the Agreement initially submitted to the Commission in this proceeding: tPc-E-20-27 JOINT SETTLEMENT STIPUI.ATION AND MOTION PAGE - 5 a. Rates: The Parties agree to compromise rates that are less than the Order No. 34350 rates proposed for approval in ldaho Powe/s initial application and higher than the Order No. 34683 rates initially recommended for use by Staff. The compromise rates are included in amended Appendix E and Appendix F. b. Scheduled First Energy and Operation Date: ln light of a bnger than expected approval prooess for the Energy Sales Agreement and an unexpected delay in the completion of construction of interconnection facllites, and to avoid future disputes over such matters, the Parties agree to amend the Energy Sales Agreemenfs Scheduled First Energy Date and Scheduled Operatlon Date in Appendix B as follows: i. Scheduled First Energy Date: October 15,2022 ii. Scheduled Operation Date: November 15,2022 c. Facility Capacity: ln light of the Commission's recent direction in Order No. 35239, the Parties agree to amend he Facility Nameplate Capacity and Maximum Capacity Amount in Appendix B as bllows to reflect actual anticipated capacity based on the most cunent information available: i. Facility Nameplate Capacity: 750 kW ii. Maximum Capacity Amount 8003W tPc-E-2U27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 6 d. lnadvertent Energy: The Parties agr€e to amend the ESA's provision for'lnadvertent Energy" to stiate that energy delivered in excess of the Facilit/s Nameplate Capacity amount, as measured on any hourly basis in kwh, shall be lnadvertent Eneqy which ldaho Power will accept but fur urfiich ldaho Power has no obligation to pay Seller, as set forth in more detail in the First Amendment to the ESA's amendment to Paragraph 7.7. e. Typographical Conection: The Parties agree to conect a typographical error regarding the description of the brm of business organization in the Energy Sales Agreemenfs opening paragraph to clarify that the Seller, Coleman Hydroelectric, LLG, is a limited liability company. t. Effectiveness: The Parties agree that the effectiveness of the First Amendment to the Energy Sales Agreement is expressly conditioned upon Commission approval of the Energy Sales Agreement, as amended by the First Amendment to the Energy Sales Agreement, without material change or condition, and should the Commission fail to issue an order providing such approval, the First Amendment will be of no legal effect whatsoever; in such event of non-approval, the Parties will be tPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 7 restored to their prior positions under the initially submitted Energy Sales Agreement and applicable law. 13. Reservation of Riohts: No Party concedes its position with respect to the laufirlness of the Commission's prior rejection of the rates contained in the initially submitted Energy Sales Agreement in Order Nos. &4870 & 34991. This Settlement Stipulation is intended as a reasonable compromise in the public interest and to save parties and the Commission.from further litigation. No Party shall be bound, benefited, or prejudiced by any position asserted in the negotiation of this Settlement Stipulation, except to the extent expressly stated herein, nor shall this Settlement Sfipulation be construed as a waiver of rights unless such righB are exprcssly waived herein. Except as otherwise expressly provided for herein, execution of this Settlement Stipulation shall not be deemed to constitute an acknowledgment by any Party of the validity or invalidity of any particular method, theory, or principle of regulation or cost recovery. No Party shall be deemed to have agreed that any method, theory, or principle of regulation or cost recovery employed in aniving at this Settlement Stipulation is appropriate for resolving any issues in any other proceeding in the future. No findings of fact or conclusions of law other than those stated herein shall be deemed to be implicit in this Settlement Stipulation. This Settlement Stipulation sets forth the complete understanding of the Parties, and this Settlement Stipulation includes no other promises, understandings, representiations, lPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 8 arangements or agreements pertaining to the subject matter of this Settlement Stipulation, or any other subject matter, not expressly contained herein. 14. The Parties agree that no part of this Stipulation or the formulae and rnethods used in developing the agreements herein or a Commission order approving the same shall in any manner be argued or considered as precedential in any future case. 15, The obligations of the Parties are subject to the Commission's approval of this Settlement Stipulation in accordance with its terms and mnditions and upon such approval being upheld on appeal, if any, by a court of competent jurisdiction. All terms and conditions of 0ris Settlement Stipulation are subject to, and expressly contingent upon, approval by the Commission without material change or modification, and only after such approval and expiration of the period for rehearing and appeal of such approval, or in the case of an appeal challenging such approval upon affirman@ on appeal. 16. Procedure Before the Commission: The Parties wi!! submit this Settlement Stipulation to the Commission and re@mmend approval in its entirety. The Parties shall support this Settlement Stipulation before the Commission and shall not appeal a Commission order approving the Settlement Stipulation or an issue resolved by the Settlement Stipulation. lf this Settlement Stipulation is challenged by anyone who is not a Party, then each Party reserves the right to file testimony, cross-examine witnesses, and put on such case as they deem appropriate to respond fully to the issues presented, including the tPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 9 right to raise issues that are incorporated in the settlements embodied in this Seftlement Stipulation. Notwithstanding this reservation of rights, the Parties agree that they will continue to support the Commission's adoption of the terms of this Settlement Stipulation. 17. Procedure Before ldaho Suoreme Court: The Supreme Court granted a suspension of the appeal to allow the parties to complete negotiation of settlement, and the Courfs order establishes that the suspension will remain in effect until March 21,2A22. On Marct 16,2022, Coleman Hydro filed a stipulated motion to continue the suspension of proceedings on appeal. To the extent that it becomes necessary to further continue the suspension of the appeal before a Commission order approving or rejecting this SetUement Stipulation is issued and becomes final and non-appealable, the parties agree to cooperate in good faith to request that the Court continue such suspension. ldaho Power and the Commission will agree to stipulate to continuation suctr suspension or to allow Coleman Hydro to represent to the Court that the suspension motion is uncontested. lf the Commission unconditionally approves this Settlement Stipulation and Energy Sales Agreement, as amended by the First Amendment to the Energy Sales Agreement, Coleman Hydro wil! voluntarily dismiss its appeal before Supreme Court promptly upon expiration of the rights of any person to petition for reconsideration and/or appeal sucfi order, and all Parties will stipulate to such dismissal with each party to bear its own costs and fees. lf the Commission does not unconditionally approve this Settlernent Stipulation and tPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 10 the Energy Sales Agreement, as amended by the First Amendment to the Energy Sales Agreement: (a) this Settlement Stipulation and the First Amendment to the Energy Sales Agreement will automatically terminate and be of no legal effect upon rejection by the Commission; (b) Coleman Hydro may move the Supreme Court to lift the suspension of the appeal, and no Party will oppose such a motion to lift the stay of the appeal; (c) All Parties expressly reserve the right to revert to their prior positions before the Court in the appeal of Order Nos. 34870 & 34991. 18. This SetUement Stipulation may be executed in counterparts and each signed counterpart shall constitute an original document. M. PROCEDURE 19. Pursuant to RP 274,lhe Commission has discretion to detennine the manner with whicfr it oonsiders a proposed settlement. ln this matter, the Parties have reached agreement on a final resolution to this case. This Setdement Stipulation is reasonable and in the public interest. The Parties request that the Commission approve the Settlement Stipulation without further proceedings. 20. ln the altemative, should the Commission determine that further proceedings are roquired to consider the Settlement Stipulation, pursuant to RP 201, the Parties believe the public interest does not require a hearing to consider the issues presented by this Motion and request it be processed as expeditiously as possible by Modified Procedure, without waiving the right to a hearing on the previously disputed matters in this proceeding should the Commission reject the Settlement Stipu lation. tPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE-11 V. REOUESTED RELIEF NOW, THEREFORE, the Partee respectfulV requeot that the Cornrnission enter lts Order appoving the SetUernent Stpulation ard the Energy Sahs Agreement, as amended by the First Amendment to the Energy Sales Agrcement, betrveen ldaho Pouuer and Cohman ffiro url0rout rnaterial cfiange or ondilion, and wi[rout fur$er prcceedings. Respectftrlly submitted th*9+l\ day of May 2o22. DONOVAN E. WALKER Attorney fior ldaho Poupr Company HYDROELEGTRIC, LLC GREGORY M. ADAMS Attomey fur Coleman Hydroelectic, LLC cottrssroN STAFF DAYN HARDIE. Attomey for Commission Stafr tPc-E-20-27 JOINT SETTLEMENT STIPUIATION AND MOTION PAGE - 12 CERTIFICATE OF SERVICE I HEREBY ertify $rat I haw on fris{fuay of May 2}z2,served the bregoing Joint Settlement Stipulation and Motion, by emailwherc listed, to the bllowing: Jan Noriyuki Gommbslon Secretary ldaho Public Utiliti€s Commission P.O. Box 83720 Boise, lD 83720{n74 jan. norlyukl@puc.idaho. gov Dayn Hardie Depu$ Attomey Genenal ldaho Public Ufflities Gommission P.O. Box 83720 Boise, lD 83720{D74 dayn. hardie@puc. ldaho. gov By: aPc-E-20-27 JOINT SETTLEMENT STIPULATION AND MOTION PAGE - 13 Gregory M. Adams (lSB No. 74il1 Richardson Adams, PLLC 515 N.27t' Sbeot Boise, ldaho 83702 Tebphone: (208) 93&2236 Fax (208) 938-7904 $eg@richardsonadarns.oom BEFORE THE IDAHO PUBLIG UTILITIES COMMISSION GASE NO. IPC-E-20-27 IDAHO POWER COMPANY ATTACHMENT 1 FIRST AMENDMENT TO THE ENERGY SALES AGREEMENT BETWEEN IDAHO POWER COTVIPANY ANI) COLEMAN HYDRO LLC This First Amendment of the Enetgy Sales Agreement ("First Amendment") is entered into on this Jptday of April 2022,by and between Idaho Power Company, an ldaho corporation ("ldaho Pow'er"). and Coleman Hydro LLC, a limitsd liability company ("Seller") (individually a "Party" and collectively the "Parties"). WHEREAS, Idaho Power and the Seller hold an Energy Sales Agrcement ("ESA") dated June 19\ 2020, for the purchase and sale of generation produced by the Colenran Hydro PURPA Qualifring Facility ("Facility"). The ESA contains ldaho Public Utilities Commission (*Commission") avoided cost prices effective June l, 2019, that were published by Order No. 34350; and WHEREAS, the Commission Order No. 34683 dated May 29,2020. published the new avoided cost rates effective June I, 2020; and WHEREAS, the Commission Order No. 34870 dated Decernber 17,2020, approved the ESA "conditioned upon on the Company and Seller updating the ESA's published avoided cost rates consistent with Order No. 346E3."; and WHEREAS, the Commission OrderNo.3499l dated April5,202l, denied Seller's request to revise Final Order No. 34870 upon reconsideration, and on May I l,2021, Coleman Hydro filed a Notice of Appeal to the ldaho Supreme Court; and WHEREAS, before the filing of briefs at lhe ldaho Supreme Court Idaho Power, Seller, and Commission Staffinitiated settlement discussions. Based upon the settlcment discussions; as a compromise of the respective positions of the parties; in order to provide certainty and to avoid the uncerlainties and cost of litigation before the Commission, courts, and other administrative bodies; and consistent with the Settlement Slipulation between ldaho Power, Seller, urd Commission Staff; Idaho Power and Seller desire to amend the ESA to include the avoided oost rates ageed to in the Settlement Stipulation, as well as various other amended terms of the ESA. NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknorvledged, and intending to be legally bound, the Parties hereto agree as follows: l. Incoraoration of Recitals. The above-stated recitols are incorporated into and made a part of this ESA by this reference to the same extcnt as if these recitals wer€ set forth in full at this point. 2. Pricing - Appendix E end F. Appendix E and F of the ESA shall be deleted in their entirety Energy Sales Agrocment Projccc 20200501 Coleman Hydro Project First Amendment - Page 9 of l0 and replaced with the following new Appendix E and F: APPENDTX E SEASONAL FTYDRO FACILITY ENERGY PRICES @rices based on the Nameplate Capacity Amorurt of 750 kW, Non-Fueled Rates) - For all Base Energy received during Heavy Load Hours, Idaho Power will pay the non-levelized energy price in accordance with the Settlement Stipulation between Idaho Power, Sellcr, and IPUC Staf{, with seasonalization factors applied: Season | -(73.50y") Season 2- (120.00o/o) Season 3 - (100.00 0/o) Year Mills/kwh Mills/kwh MillJkwh E-l 2022 2023 2024 2025 2026 2027 202E 2029 2030 203t 2032 2033 2034 2035 2036 2037 2038 2039 2040 20/-l 2442 2M3 204/- 22.8s 24.t9 26.10 28.32 66.93 68.60 70.51 'n.75 73.01 74.24 76.30 78.16 79.97 81.68 83.54 85.41 87.22 88.97 91.08 92.69 94.47 96.80 99.46 37.31 39.50 42.61 46.23 t09.28 l I1.99 115.12 It7.l4 tlg.2t 12r.22 124.57 t27.60 130.56 133.36 136.39 t39.4s 142.41 t4s.27 r48.71 151.34 154.24 t58.04 162.38 31.09 32.92 35.51 38.53 91.06 93.33 9s.93 97.62 99.34 101.02 103.81 106.34 108.81 I I l.13 l13.66 tt6.2t l18.68 121.06 123.92 126.12 128.s3 l3 l .70 135.32 Energy Sales Agreement Project 20200501 Colernan Hydro Project First Amendment - Page 9 of l0 E-2 Base Energy Light Load Purchase kicc - For all Base Energy received during Light Load Hours, Idaho Powerwill pay the non-levelized energy price in accordancewith the Scttlement Stipulation between Idaho Power, Seller, and IPUC Staff, with seasonalization factors applied: Season I - (73.50W Season 2 - (120.00 YA Season 3 - (100.00 7o) Year Milk/kWh Mills/kwh Mills/kwh 2022 2023 2024 202s 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 204t 20/.2 2043 2044 r7.50 18.84 20.75 22.97 61.58 63.24 65.16 66.40 67.66 68.89 70.9s 72.80 74.62 76.33 78.19 80.06 81.87 83.62 85.73 87.34 89.12 91.44 94.1 28.s7 30.76 33.87 37.50 100.54 t03.26 106.38 108.40 110.47 112.49 115.84 118.87 r 21.83 r24.62 127.66 t30.72 133.68 136.53 139.98 142.60 145.50 149.30 153.65 23.81 25.64 28.23 31.25 83.78 86.05 88.65 90.34 92.06 93.74 96.s3 99.06 10r.53 103.85 106.38 108.93 111.40 I13.78 116.il 1 18.84 121.25 124.42 128.04 Energy Salcs Agroement Project 20200501 Coleman Hydro Project First Amendment - Page 9 of l0 E-3 All Hours Energy Price - The price to be rsed in the calfllation of the Surplus Energl Price and Delay Damage Price shall be the non-levelized enagy price in accordance with the Settlement Stipulation between ldaho Power, Seller, and IPUC Stafr with seasonalization factors applied: Season I - (73.50 o/o) Season 2 - (l20.WyA Season 3 - (100.00 0/o) Year Mills/kwh Mills/kwh Mills/kWh 2022 2023 2024 2025 2026 2027 2028 2029 2030 203t 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2M2 2043 2044 20.47 21.81 23.72 25.94 64.55 66.2t 68.r3 69.37 70.63 71.86 73.92 75.77 77.59 79.30 8 r.l6 83.03 84.84 t6.59 88.70 90.31 92.09 94.41 97.0E 33.42 35.61 38.72 42.35 10s.39 108.10 I I1.23 113.25 115.32 l17.33 120.68 t23.72 t26.68 129.47 132.51 135.57 138.52 141.38 t44^82 t47 A5 150.35 154.15 158.50 27.85 29.68 32.27 3s29 87.82 90.09 92.69 94.38 96.10 97.78 I00.57 103. l0 105.57 107.89 tl0-42 n2.97 r15.44 tt7.82 120.68 122.88 125.29 128.46 132.08 Encrgy Sales Agreement Projecc 20200501 Colsman Hydro Project First Amcndment - Page 9 of l0 F-1 APPENDIXF NON-SEASONAL FIYDRO FACILITY ENERGY PNCES (Prices based on the Nameplate Capacity Amount of 750, Non-Fueled Rates) Base Energ.v Heaw Load Purchase Price - For all Base Energy reeeived during Heavy Load Hours, Idaho Power will pay the non-lerrelized enerry price in accordance with the Settlement Stipulation between Idaho Power, Seller, and IPUC Staff, with scasonalization factors applied : Season I - (73.50 %) Scason 2 - ( 120.00 %) Season 3 - (100.00 7o) Year Mills/kU/h Mills/kUlh Millslkwh 2022 2023 2024 2025 2026 2027 2028 2029 2030 203t 2032 2033 2034 2035 2036 2037 2038 2039 2M0 2041 2M2 2M3 2044 22.85 24.19 26.t0 28.32 52.13 53.s7 s5.26 56.28 57.32 58.32 60.14 61.76 63.33 64.80 66.4t 68.03 69.s8 71.07 72.92 74.26 75.77 77.82 80.20 37.31 39.50 42.61 46.23 85.10 87.46 90.23 91.88 93.58 95.22 98. t9 100.83 r03.40 105.79 t08.42 I11.07 113.5r I16.04 119.06 121.24 123.70 127.05 r30.94 31.09 32.92 35.51 38.53 70.92 72.89 75.19 76.57 77.98 79.35 8l.82 84.02 86.17 88.16 90.35 92.56 94.68 96.70 99.21 l0l.(X 103.09 10s.88 t09.t2 Energy Sales Agrccment Projec[ 2020050 I Coleman Hydro Project First Amendment - Page 9 of l0 E-2 Basc Energ.v Lisht LoadPur€hEsc P.riac - For all Base Energy reccived during Light Load Hours, Idaho Power will pay the non-levelized enerry price in accordance with the Settlernent Stipulation betwee! Idaho Power, Seller, and IPUC StaG with seasonalization factors applied: Season I - (73.50 %) Season 2 - (120.00 %) Season 3 - (100.00 o/o) Year Mills/kwh Mills&Wh Mills/kWh 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 20/,0 2Mt 2042 2M3 2044 17.50 1E.84 20.75 22.97 45.78 48.22 49.9t 50.93 51.97 52.97 54.79 56.41 s7.9t s9.45 51.05 62.68 64.23 65J2 67.57 6E.91 '10.42 72.47 74.85 28.57 30.76 33.E7 37.50 't6.37 7E.72 8r.49 83.15 84.84 85.48 89.45 92.W 94.66 97.M 99.69 102.33 104.88 107.30 l10.32 112.51 t14.97 r 1t.32 122.21 23.81 25.& 28.23 31.25 63.il 65.61 67.91 6929 70.70 72.07 74.54 76.74 78.89 80.88 83.07 85.28 87.40 89.42 91.93 93;t6 95.81 98.60 101.84 Encrgy Salcs Agrcement Projece 20200501 Coleman Hydro Project First Amendment - Page 9 of l0 F-3 All Hours Enere}, Price - The price to be used in the calculation of the Surplus Energy hicc and Delay Damage Price shall be the non-levelized enerry price in accordance with the Sefilemetrt Stipulation between Idaho Power, Seller, and IPUC Staff, with seasonalization factors applied: Season l -(73.50n Season 2-(l20.0OVA Scason3 - (100.00 o/o) Year Mills/kWh MillJkWh MillVkwh 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 20/.t 2042 2043 2M4 2A.41 21.81 23.72 25.94 49.75 5 l.l9 52.t8 53.90 54.94 s5.94 57.76 s9.38 60.95 62.42 &.02 65.65 67.20 68.69 70.54 71.88 73.39 75.44 77.82 33.42 35.61 38.t2 42.35 8t.22 83.57 86.34 87.99 89.69 91.33 94.30 96.94 99.s 1 101.91 104.53 107.18 109.72 l 12.15 1 15. 17 tt7.36 119.82 123.17 127.M 2't.85 29.68 32.27 35.29 67.6E 69.65 7l_95 73.33 74.74 76.11 78.58 80.79 82-93 u.92 87.1r 89.32 9t.44 93.46 95.97 97.80 99.85 t02.64 105.88 Energy Sales Agreement Projcct 2020050lC.olcman tlydro Projeot First Amendmcnt - Page 9 of l0 3. Inadvertent Energy - Paragnph 7.7. The ESA's provision for "Inadvertent Energy" shall be amended to state that energy delivered in excess of the Facility's Nameplate Capacity amount, as measured on any hourly basis in lorh, shall be Inadyertent Energy which Idaho Power will accept but for which Idaho Power has no obligation to pay Seller, as set forth below. Paragraph 7.7 of the ESA shall be deleted in its entirety and replaced with the new paragraphT.T: 7.7 Inadvertent Enerqv - 7.7.1 Inadvertent Energy is electric energy produced by the Facility, expressed in kWh, which the Seller delivers to Idaho Power at the Point of Delivery that: a.) exceeds ten 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. Energy delivered in January in excess of 7,440,000 kWh in this example would be Inadvenent Energy.) -or- b.) exceeds the amount of energy (in kWh) that can be generated in any given hour based on the Nameplate Capacity amount (in kW). (For example, with a Nameplate Capacity Amount of 750 kW, energy delivered in excess of 750 kWh in any given hour in this example would be Inadvertent Energy.) 7 .7.2 Although Seller intends to design and operate the Facility to generate no more than ten (10) average MW monthly, or no more than the energy that can be generated at the Nameplate Capaciry amount continuously ovsr any given hour, and therefore does not intend to generate and deliver Inadvertent Energy, Idaho Power will accept Inadvertent Energy, but will not purchase or pay for Inadvertent Energy. 7.7.3 Delivering Inadvertent Energy to ldaho Power for two (2) consecutive months and/or in any three (3) months during a Conffact Year, due to exceeding ten thousand (10,000) kw multiplied by the hours in the specific month in which the energy is delivered (Article 7.7 -l a.) but not due to exceeding the amount of energy that can be generated in any given hour based on the Nameplate Capacity amount (Article 7.7.1 b.), will be a Material Breach of this Agreement and ldaho Power may terminate this Agreement within sixty (60) days after the Material Breach has occunrd. 4. Nameplate Capacity and Maximum Capacity Amount - Appendix B. The "Facility Nameplate Capacity" in paragraph B-1 of Appendix B to the ESA shall hereby be changed from Energy Sales Agreement Project: 2020050 t Coleman Hydro Project First Amendment - Page 9 of l0 800 kW to 750 kW. *800" shall be deleted and replaced with "750." The 'Ma:<imum Capacity Amount" in paragraph 84 of Appendix B to the ESA shall remain at 800 krilrr. The following words shall be deleted from the first sentence of Appendix 84: "in accordance with the GIA." 5. Scheduled First Energy Date and Scheduled Operetion Date - Appendix B. The "Scheduled First Energy Date" and "Scheduled Operation Date" contained in Paragraph 2 shall herebybechangedtoJulyl,2022,andAugustl,2022,respectively,assetforthbelow. Paragraph B-2 of the ESA shall be deleted in its entirely and replaced with the new paragraph B-2: 8.3 SCHEDULED FIRST ENERGY DATE AND OPERATION DATE Seller has selected October 15,2022, as the Scheduled First Energy Date. Seller has selected November 15,2022, as the Scheduled Operation Date. Because the Facility is a Seasonal Hydro Facility, should the interconnection facilities be completed at a time when there is no flowing water with which to bring the project online, then the Scheduled Operation Date, or expiration of the 120-day Delay Cure Period if the Scheduled Operation Date has passedo will be delayed to the next available month during which there is water available withwhich to generate. 6. Tlpographical Correction - Seller Name. in the first paragraph of Page I of the ESA, delete*COLEMAN I{YDROELECTRIC, LLC a non-profit Idaho canal company (Seller)" and replace those words with'COLEMAN HYDROELECTRIC, LLC a limited liability company (Seller)." 7. Commission Approval. The Parties will submit this First Amendment to the IPUC andrequest approval or rejection in its entirety pursuant to RP 274. The Parties agree that the effectiveness of the First Amendment to the Energy Sales Agreement is expressly conditioned upon Commission approval of the Energy Sales Agreement, as amended by the First Amendment to the Energy Sales Agreement, without material shange or condition, and such approval being upheld on appeal, if any, by a court of competent jurisdiction. Should the Commission issue an order rejecting such approval, the First Amendment will be of no legal effect whatsoever; in such event of non- approval, the Parties will be restored to their priorpositions under the initially submitted ESA and applicable law. 8. Effect of Amendment. Except as expressly amended by this First Amendment, the ESA shall remain in full force and effect. 9. Capitalized Terms. All capitalized terms used in this First Amendment and not defined herein shall have the same meaning as used in the ESA. 10. Scope of Amendment. This First Amendment shall be binding upon and inure to the benefit of the Parties hereto, and their respective heim, executors, administrators, successors, and assigns, who are obligated to take any action which may be necessary or proper to carry out the purpose and intent thereof. Energy Sales Agreement Project: 202fi)501 Coleman Hydro koject First Amendment - Page 9 of l0 I l. Authority. Each Party represfits and warrants that (i) it is validly existing and in good standing in the state in which it is organized, (ii) it is the proper party to amend the ESA, and (iii) it has the requisite authority to execute this First Amcndment. 12. Counterperts. This First Amendment may be executed in any number of counterparts, each of which shall be deerned an original and all of which taken together shall constitute a single instmment. IN WITNESS WHEREOF, the Parties hereto have caused this Fint Amendmcnt to bc duly executed as of the date above wriftcn. COLEMAN IDAHO By:By: Name:S',,Ja^ (Jl';'l'+>"L*-Name:U Aoeur^t Title: Ptc.n noint l1o-rb..Title:--77 Date:Datc: Energy Salcs Agreemcnt Projccu 2020050 I Colcman Hydro Pmjcct Ffu$ Amar&ncnt - Prgc 9 of l0