20200317Formal Complaint.pdf

Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (lSB No. 7454)
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadams. com
gr e g@ichardsonadam s. c om
REC EIVED
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Attorneys for Complainant Black Mesa Energy, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
BLACK MESA ENERGY, LLC,
Complainant,Case No. I PC- E- 2o- t 7
FORMAL COMPLAINTVS
IDAHO POWER COMPANY,
Defendant.
I INTRODUCTION
2 l. This is a formal complaint filed by Black Mesa Energy, LLC ("Black Mesa")
3 against the Idaho Power Company ("ldaho Power" or the "Company") with the [daho Public
4 Utilities Commission (the "Commission" or "IPUC") pursuant to Idaho Administrative Rule
5 3 I .01 .01 .054. As explained further herein, this complaint seeks a determination that Black Mesa
6 has formed two legally enforceable obligations: (l) committing Idaho Power Company to
7 purchase the net output of the Black Mesa Energy 1 storage qualifying facility ("QF") for a20-
8 year term of power sales utilizing the Commission's published avoided cost rates for "Other"
9 facilities in effect on the date of this complaint; and(2) committing Idaho Power Company to
l0 purchase the net output of the Black Mesa Energy 2 storage QF for a2}-year term of power sales
I I utilizing the Commission's published avoided cost rates for "Other" facilities in effect on the
12 date of this complaint.
Page I - Formal Complaint of Black Mesa Energy, LLC.
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1 CONTACT INFORMATION
2.Copies of all pleadings and other correspondence in this matter should be served
upon counsel for Black Mesa Energy, LLC at:
Peter J. Richardson
Gregory M. Adams
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadam s. com
gr e g@ichardsonadam s. c om
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l3 TDENTITY OF PARTIES
14 3. Black Mesa Energy, LLC, is an Idaho limited liability company that is developing
l5 energy storage small power production facilities known as Black Mesa Energy I and Black Mesa
16 Energy 2 in Elmore County in Southem tdaho.
17 4. tdaho Power Company is an Idaho Corporation with its principal place of
l8 business at l22l West Idaho Street, Boise, Idaho 83702- Idaho Power Company is a public
l9 utility providing electric service in the State of Idaho. Idaho Power Company is subject to the
20 jurisdiction of the Idaho Public Utilities Commission, the Public Utility Commission of Oregon,
2l and the Federal Energy Regulatory Commission ("FERC").
22 JURISDICTION AND APPLICABLE LAWS AND REGULATIONS
23 5. This case involves the Public Utility Regulatory Policies Act of 1978's
24 ("PURPA") avoided cost provisions and FERC's implementing regulations thereto, which
25 PURPA directs states to implement. See l6 U.S.C. $ 824a-3 (a)-(g); FERC v. Mississippi,456
26 U.5.742,751 (1982). Section 210 of PURPA requires electric utilities to purchase power
Page 2 - Formal Complaint of Black Mesa Energy, LLC.
I produced by small power production facilities that obtain status as a QF under Section 201 of
2 PURPA. l6 U.S.C. $ 82aa-3(a)(2).
3 6. In ldaho, the Commission possesses jurisdiction to implement FERC's PURPA
4 regulations and to adjudicate complaints against public utilities under PURPA. Afton Energt
5 Inc. v. Idaho Power Co., I I I ldaho 925,929,729 P.2d400,404 (1986).
6 7. Among FERC's regulations, Section 292.304(d)(2xii), Title l8 of the Code of
7 Federal Regulations provides QFs with the option of selling electric energy and capacity to a
8 utility based on the utility's "avoided costs" at the time the QF incurs a legally enforceable
9 obligation (also known as a "LEO") to deliver energy or capacity over a specified term. l8
l0 c.F.R. g 2e2.304(d)(2xii).
l1 8. Under the LEO rule, "a QF has the option to commit itself to sell all or part of its
12 electric output to an electric utility. While this may be done through a contract, if the electric
l3 utility refuses to sign a contract, the QF may seek state regulatory authority assistance to enforce
14 the PURPA-imposed obligation on the electric utility to purchase from the QF, and a non-
l5 contractual, but still legally enforceable, obligation will be created pursuant to the state's
l6 implementation of PURPA." JD Wind l, LLC,l29 FERC fl 61,148, atP 25 (Nov. 19, 2009).
17 Thus, "il QF, by committing itself to sell to an electric utility, also commits the electric utility to
l8 buy from the QF; these commitments result either in contracts or in non-contractual, but binding,
19 legally enforceable obligations." Id.
20 FACTS
21 9. Black Mesa is developing proposed energy storage facilities known as the Black
22 Mesa Energy I facility and the Black Mesa Energy 2 facllity, each of which have a net output of
23 20 MW-AC and will generate less than l0 average monthly MW. The Black Mesa Energy I
Page 3 - Formal Complaint of Black Mesa Energy, LLC.
I facility and the Black Mesa Energy 2 facllity will utilize a common interconnection to ldaho
2 Power's electrical system, but the electric generating equipment of the two facilities will be
3 separated by a distance of at least one mile.
4 10. Black Mesa has certified the Black Mesa Energy I and Black Mesa Energy 2
5 facilities as storage QFs with FERC. On or about February 23,2017, Black Mesa first
6 completed and duly filed a Form 556 certifying its first configuration for its energy storage
7 development project as a single storage QF (at that time referred to as the Black Mesa Energy
8 facility) utilizing renewable resources in FERC Docket No. QF l7-705-000. Subsequently, Black
9 Mesa has recertified the initial storage QF in FERC Docket No. QF17-705-001 and changed the
l0 name of the facility to "Black Mesa Energy 1", and Black Mesa also filed a Form 556 certifying
I I its second storage QF as "Black Mesa Energy 2" in FERC Docket No. QF20-535-000. In these
12 certification forms, Black Mesa certified the Black Mesa Energy I and Black Mesa Energy 2
l3 facilities as "Other renewable resource'o - specifically as an "energy storage system Qualifying
14 Facility," not as a wind or solar QF resource type, and explained each facility would utilize
l5 energy storage. FERC accepted the Form 556s.
16 I l. Black Mesa attempted to initiate discussions with Idaho Power regarding sale of
17 the power in 2017 . On or about February 11,2017, Black Mesa submitted to Idaho Power the
l8 information required by Schedule 73 to receive a power purchase agreement ("PPA") (also
19 referred to by Idaho Power as an Energy Sales Agreement or "ESA") and requested that Idaho
20 Power, comply with the contracting procedures contained in its Schedule 73 for the purpose of
2l executing a PURPA PPA for a storage QF.
22 12. Black Mesa's submittal on or about February I l, 2017, provided Idaho Power
23 with a completed Schedule 73 application and all required supporting documents for its first
Page 4 - Formal Complaint of Black Mesa Energy, LLC.
I energy storage QF (at that time referred to as the Black Mesa Energy facility) utilizing the non-
2 levelized, non-fueled, published avoided cost rates for "Other" facilities. A copy of Black
3 Mesa's email request is attached as Exhibit 1.
4 13. Black Mesa alleges each of its energy storage facilities is entitled to "other"
5 published avoided cost rates and contract term by virtue of its FERC certification status as an
6 "other" facility. However, Black Mesa further alleges that its storage facilities are further
7 entitled to the "other" rates because each facility's characteristics, including daily generation
8 profile, is distinct from those of solar or wind generation. Because a storage facility has stored
9 energy, a cloud or momentary drop in wind does not cause an immediate drop in output. [n
10 contrast to as-available renewable energy output, the Black Mesa facilities will deliver firm
I I energy commitments of energy and capacity throughout the day to ldaho Power and will
12 continue supplying energy and capacity during critical peak times after the sun goes down in
l3 summer evenings. Such output profiles may resemble the "Battery Output to Grid" curves in the
14 following graphic representation:r
I The graph was prepared by the Black Mesa engineering team and demonstrates a possible output profile of
a battery storage QF that is energized with an intermittent renewable resource.
Page 5 - Formal Complaint of Black Mesa Energy, LLC.
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- - - - Solar Generation Battery Output to Grid
I 14 Idaho Power's IPUC-approved Schedule 73 requires the Company to respond to
2 such a request within l0 business days either with a notification of any deficiencies in the
3 application, or if the application is not deficient with an indicative pricing proposal (for
4 published rate requests). Specifically, Idaho Power's Schedule 73 requires the Company to take
5 one of two actions in response to a PPA request such as made by Black Mesa Energy, LLC.
6 Paragraph l.b ofSchedule 73 provides:
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Where the Company determines that the Customer has not provided sufficient
information as required by Section l.a, the Company shall, within l0 business days,
notiff the Customer in writing of any deficiencies.
Paragraph l.c of Schedule 73 provides
Following satisfactory receipt of all information required in Section l.a, the Company
shall, within 20 business days, provide the Customer with an indicative pricing proposal
containing terms and conditions tailored to the individual characteristics of the proposed
Qualifring Facility; provided, however, that for Qualiffing Facilities eligible for
Published Rates pursuant to the Commission's eligibility requirements, the Company will
provide such indicative pricing proposal within l0 business days.
Page 6 - Formal Complaint of Black Mesa Energy, LLC
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15. On February 23,2017, Black Mesa followed up its initial request for a PPA by
asking, via email, that ldaho Power confirm receipt of the request. A copy of this email is
attached as Exhibit 2. Idaho Power responded, also on February 23,2017, reassuring Black
Mesa that it (ldaho Power) "will respond in accordance with Schedule 73." A copy of Idaho
Power's email dated February 23,2017 is attached as Exhibit 3.
16. Despite its reassurance, Idaho Power never did respond to Black Mesa's request
in accordance with Schedule 73. Instead of complying with the contracting procedures in
Schedule 73,on February 27,2017, Idaho Power informed Black Mesa via email that it had
"filed an application to the Idaho Public Utilities Commission requesting a declaratory order that
determines the contract term and avoided cost pricing methodology for which your proposed
project may be eligible." Copies of ldaho Power's letter and transmittal email are attached as
Exhibit 4.
17. In response to Idaho Power's application, referenced above, the Commission
issued two orders declaring that all battery energy storage projects energized with solar energy
are to be treated as though they are solar QFs without storage. See Order No. 33785 &
Reconsideration Order No. 33858. Under the Commission's determination, energy storage QFs
with an energy input of solar energy are only entitled to a PURPA PPA term of two years of
f,rxed prices that are available to solar QFs and not 20-year power sale terms with fixed prices
that are available to all projects other than solar or wind QFs. Specifically, the Idaho
Commission declared that:
[I]n order to qualiff as a PURPA resource, the primary energy source behind the battery
storage must be considered. We [the Idaho PUC] must, then, look to Franklin's and
Black Mesa's primary energy sources in order to determine their eligibility under
PURPA.
Page 7 - Formal Complaint of Black Mesa Energy, LLC
I Order No. 33785, p. I l. Based on that rationale, the IPUC determined that Black Mesa's energy
2 storage facility is only entitled to a two-year contract because its primary energy source is solar
3 and solar QFs under the IPUC's implementation of PURPA are only entitled to two-year
4 contracts.
5 18. Subsequent to the Commission's order, the other QFs affected by the
6 Commission's orders (the Franklin Storage QFs) brought suit against the Commission in the
7 United States District Court for the District of Idaho, and the District Court ruled that the
8 Commission's orders violated PURPA. Frqnklin Energ,t Storage One, LLC v. Kjellander, Case
9 No.: I : l8-cv-00236-REB, 2020 U.S. Dist. LEXIS 8892 (Jan. 17,2020). Among other findings,
l0 the court determined that, "By'looking behind' Plaintiffs' QF status to examine the proposed
I I input power generation profile of the facilities, the Commissioners violated PURPA by
12 questioning Plaintiffs'qualifications or eligibility under PURPA, and by then deciding, for all
l3 substantive purposes, that each is a solar QF rather than an energy storage QF entitled to
14 treatment as an'other QF."' [d. at*44.
l5 19. During the pendency of the litigation over the legality of the Commission's
l6 orders, Black Mesa continued its development efforts and pursued its interconnection request for
17 its energy storage facilities. Black Mesa has received a Feasibility Study for a 40 MW-AC joint
l8 interconnection proposed for use for the Black Mesa Energy I and Black Mesa Energy 2
19 facilities. The Feasibility Study concludes the proposed interconnection is feasible.
20 20. Once the Federal District Court rendered its decision, Black Mesa immediately
2l reiterated its request for a fixed-rate 2U-year PPA utilizing the published, non-levelized, non-
22 fueled avoided cost rates for "Other" facilities for Black Mesa Energy I storage QF and
23 submitted a request for its Black Mesa Energy 2 storage QF. Specifically, on or about January
Page 8 - Formal Complaint of Black Mesa Energy, LLC
I 18,2020, Black Mesa "reiterate[d] its previous request for an Energy Sales Agreement pursuant
2 to Schedule 73 as [initially] requested on 2ll0l17" with respect to the Black Mesa Energy I
3 storage QF. Additionally, on or about January 18,2020, Black Mesa submitted to ldaho Power a
4 completed Schedule 73 application with all supporting documents for the Black Mesa Energy 2
5 storage QF, requesting a PPA utilizing the non-levelized, non-fueled, published avoided cost
6 rates for "Other" facilities. The PPA requests submitted on or about January 18,2020 are
7 contained in Exhibit 5.
8 21. In an almost eerie repeat of history, Idaho Power responded with a letter three
9 days later on January 21,2020, stating that it had filed a petition with the Commission to
l0 establish avoided cost rates applicable to PURPA storage qualifoing facilities. Idaho Power did
I I not identi$ any deficiencies in the renewed Schedule 73 application or any basis in law as it
12 exists as of the date of that request upon which Idaho Power may refuse to contract with Black
l3 Mesa's energy storage QF under the published avoided cost rates for "Other" facilities.
14 22. Given ldaho Power's refusal to supply a PPA to Black Mesa, Black Mesa
l5 determined that it was able to commit itself to the terms and conditions commonly included in
l6 Idaho Power's PURPA PPAs approved by the Commission, and Black Mesa inserted the
17 project-specific information for the Black Mesa Energy I storage QF and the Black Mesa Energy
l8 2 storage QF into a PPA containing what Black Mesa understood to be common terms and
l9 conditions for such PURPA PPAs. Black Mesa executed and submitted such a PPA for each
20 storage facility to Idaho Power on or about January 24,2020. The relevant contents of the PPA
2l submittal on or about January 24,2020 are contained in Exhibit 6.
22 23. ldaho Power has not identified any non-rate terms or conditions to which ldaho
23 Power objects in the proposed PPA submitted by Black Mesa to Idaho Power.
Page 9 - Formal Complaint of Black Mesa Energy, LLC
| 24. Idaho Power has not to date, offered to nor suggested that it intends to, comply
2 with the requirement of its Schedule 73 that it tender indicative pricing within l0 days and
3 contract terms within the 15 business day time period in Schedule 73. lnstead, Idaho Power
4 asserted through a letter dated February 3,2020, that it objects to the proposed PPAs on the
5 ground that it has asked the Commission to eliminate the right of energy storage QFs to sell
6 power under published avoided cost rates for a 2O-year term of fixed-price power sales. Idaho
7 Power thereby has now twice ignored its obligations under Schedule 73 with respect to requests
8 by Black Mesa for indicative pricing and contract terms.
9 25. Consistent with the IPUC-approved Schedule 73 and to the extent required by the
l0 Commission and ldaho Power in this case, Black Mesa alleges that it is capable of and will
I I commit to delivering the electrical output of the Black Mesa Energy I storage QF and the Black
12 Mesa Energy 2 storage QF within 365 days of a final non-appealable determination by the
l3 Commission finding that Black Mesa created a legally enforceable obligation for each facility as
14 alleged in this complaint. See Schedule 37 at Sheet 73-5.
15 LEGAL CLAIM
16 First Claim for Relief- Black Mesa Enerev I
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Idaho Power is in violation of PURPA, FERC's regulations and orders, and the
Commission's orders by failing to enter into a power purchase agreement for the Black
Mesa Energy I storage QF containing published avoided cost rates for "Other" facilities in
effect on the date of this complaint.
26- Black Mesa re-alleges all preceding paragraphs.
27. Black Mesa has attempted in good faith to engage in negotiations to obtain a fully
executed power purchase agreement to deliver energy and capacity to ldaho Power from its
Black Mesa Energy I storage QF located in Elmore County, Idaho.
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| 28. Idaho Power has illegally refused to abide by its own IPUC-approved process for
2 executing power purchase agreements with QFs.
3 29. To date, Idaho Power has refused to execute its standard PURPA PPA for the
4 Black Mesa Energy I storage QF.
5 30. Black Mesa committed itself to sell energy and capacity from its Black Mesa
6 Energy I storage QF to Idaho Power.
7 31. Consequently, Black Mesa has committed Idaho Power to buy from its Black
8 Mesa Energy I storage QF.
9 32. These commitments result in non-contractual, but binding, legally enforceable
l0 obligations.
I I 33. By refusing to respond to Black Mesa's requests to tender pricing and contract
12 terms for PURPA power purchase agreements for Black Mesa Energy I storage QF, Idaho
13 Power is in violation of PURPA, FERC's implementing regulations, and the Commission's
14 orders. See 16 U.S.C. $ 824a-3(a)(2); 18 C.F.R. 5 292.304(dX2)(ii); JD Wind l, LLC, 129 FERC
15 fl 61,148, atP 25; Blind Canyon Aquaranch v. Idaho Power Company, Case No. IPC-E-94-1,
16 Order No. 25802 (Nov. 1994).
17 34. Black Mesa is entitled to a power purchase agreement for the Black Mesa Energy
l8 I storage QF containing:
19 a. The non-levelized, non-fueled, published avoided cost rates for "Other" facilities
20 in effect on the date of this complaint;
2l b. A ZD-year power sale term containing fixed prices;
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Page I I - Formal Complaint of Black Mesa Energy, LLC
The remaining non-rate and non-term-length contract provisions proposed in the
PPA unilaterally executed by Black Mesa for the Black Mesa Energy I storage
QF, submitted to Idaho Power on or about January 24,2020; or, should ldaho
Power object to any such contract provisions, such other contract provisions as
the Commission determines, within the bounds of its lawful discretion, to be just
and reasonable.
Second Claim for Relief- Black Mesa Enerev 2
Idaho Power is in violation of PURPA, FERC's regulations and orders, and the
Commission's orders by failing enter into a power purchase agreement for the Black Mesa
Energy 2 storage QF containing published avoided cost rates for "Other" facilities in effect
on the date of this complaint.
35. Black Mesa re-alleges all preceding paragraphs.
36. Black Mesa has attempted in good faith to engage in negotiations to obtain a fully
executed power purchase agreement to deliver energy and capacity to Idaho Power from its
Black Mesa Energy 2 storage QF located in Elmore County, ldaho.
37. Idaho Power has illegally refused to abide by its own IPUC-approved process for
executing power purchase agreements with QFs.
38. To date, Idaho Power has refused to execute its standard PURPA PPA for the
Black Mesa Energy 2 storage QF.
39. Black Mesa committed itself to sell energy and capacity from its Black Mesa
Energy 2 storage QF to [daho Power.
40. Consequently, Black Mesa has committed Idaho Power to buy from its Black
Mesa Energy 2 storage QF.
41. These commitments result in non-contractual, but binding, legally enforceable
obligations.
Page 12 - Formal Complaint of Black Mesa Energy, LLC.
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I 42. By refusing to respond to Black Mesa's requests to tender pricing and contract
2 terms for PURPA power purchase agreements for the Black Mesa Energy 2 storage QF, Idaho
3 Power is in violation of PURPA, FERC's implementing regulations, and the Commission's
4 orders. See 16 U.S.C. $ 824a-3(a)(2): 18 C.F.R. $ 292.304(dX2Xii); JD Wind I, LLC, 129 FERC
5 fl 61,148, atP 25; Blind Canyon Aquaranch v. Idaho Power Company, Case No. IPC-E-94-1,
6 Order No. 25802 (Nov. 1994).
7 43. Black Mesa is entitled to a power purchase agreement for the Black Mesa Energy
8 2 storage QF containing:
9 a. The non-levelized, non-fueled, published avoided cost rates for "Other" facilities
l0 in effect on the date of this complaint;
I I b. A}0-year power sale term containing fixed prices;
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13 c. The remaining non-rate and non-term-length contract provisions proposed in the
14 PPA unilaterally executed by Black Mesa for the Black Mesa Energy 2 storage
l5 QF, submitted to ldaho Power on or about January 24,2020; or, should Idaho
16 Power object to any such contract provisions, such other contract provisions as
17 the Commission determines, within the bounds of its lawful discretion, to be just
l8 and reasonable.
19 PRAYER FOR RELIEF
20 WHEREFORE, Black Mesa Energy, LLC respectfully requests that the Commission
2l issue an Order:
22 l. On both claims, declaring that Idaho Power is in violation of PURPA, FERC's
23 implementing regulations, and the Commission's orders.
Page l3 - Formal Complaint of Black Mesa Energy, LLC.
I 2. On the First Claim, finding that Black Mesa Energy, LLC has created a legally
enforceable obligation to sell the energy and capacity of its Black Mesa Energy I storage QF to
Idaho Power, and requiring Idaho Power to execute a standard PURPA power purchase
agreement for the Black Mesa Energy I storage QF containing the following terms and
conditions:
a. The non-levelized, non-fueled, published avoided cost rates for "Other" facilities
in effect on the date of this complaint;
b. A20-year power sale term containing fixed prices;
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c. The non-rate terms and non-term-length contract provisions proposed in the PPA
unilaterally executed by Black Mesa for the Black Mesa Energy I storage QF,
submitted to Idaho Power on or about January 24,2020; or, should tdaho Power
object to any such contract provisions, such other contract provisions as the
Commission determines, within the bounds of its lawful discretion, to be just and
reasonable.
3. On the Second Claim, finding that Black Mesa Energy, LLC has created a legally
enforceable obligation to sell the energy and capacity of its Black Mesa Energy 2 storage QF to
Idaho Power, and requiring Idaho Power to execute a standard PURPA power purchase
agreement for the Black Mesa Energy 2 storage QF containing the following terms and
conditions:
d. The non-levelized, non-fueled, published avoided cost rates for "Other" facilities
in effect on the date of this complaint;
e. A ZD-year power sale term containing fixed prices;
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f. The non-rate terms and non-term-length contract provisions proposed in the PPA
unilaterally executed by Black Mesa for the Black Mesa Energy 2 storage QF,
submitted to Idaho Power on or about January 24,2020; or, should Idaho Power
object to any such contract provisions, such other contract provisions as the
Commission determines, within the bounds of its lawful discretion, to be just and
reasonable.
Granting any other relief that the Commission deems necessary.
Respectfully submiued this lTth day of March 2020,
Peter J. Richardson (lSB No. 3195)
Gregory M. Adams (lSB No. 7454)
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadams. com
gre g@richardsonadams. com
Attorneys for Complainant Black Mesa Energy,
LLC
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Page l5 - Formal Complaint of Black Mesa Energy, LLC.
Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
Peter@richardsonadams. com
ere g@richardsonadams. com
Attorneys for Complainant Black Mesa Energy, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
BLACK MESA ENERGY, LLC,
Complainant,
vs.
IDAHO POWER COMPANY,
Defendant.
Case No.
FORMAL COMPLAINT
EXHIBIT I
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Fnonnr Brian Lyrrch <Brian@mezzdev.c:om>
Date: Saturdal Februa ry 1.1, 2Ol7 at 1:11 PM
To: ":fi4Darrington @idahopower,com:>
Cc: Brian {-ynch <Brian@mezzdev corrr>
Subiect: Black Mesa Energy pricing request- resubmitted after email bounced back
Please find helow :l.re r'equested infornation h-r-rnr Schedr.,le 73 and cornpleted Qualifying Facility Energy Sales Agreernent Application to
receive arr indtcatirre oricrng proposal for the Black Mesa Energy Storage QF Proiect. Please let me knovu if rhere are anv questions [ach of
the ferr,s from le{rtion t of the Contracting Procedures of Schedule 73 is responded to oeiow:
Pnoject Name: Black IVlesa Energy, LLC
Location. Black lVlesa Substation, King Hill, ldaho
Organization chart: Black Alesa Energy, LLC is wholly owned by MB VlezzDev, LLC
Generation technology: Black Vlesa Energy is an energy storaBe system Qualifying Facility that provides
scheduled and dispatchable electricity. The storage system will receive 1-00% of input energy from renewabie
energy sources.
Maximum Capacity & Net Fower See attached FERC QFSelf-Certification Form 556, rruhich quantifies these
amounts
l,lourly production: Attached is an 8760 of power production
Dispatch orders; The project will provide scheduled, dispatchable power output in forvriard looking time
intervals ranging from 5-30 minui,es pending final system design Within these intervals ldaho Power may have
the ability to downward adjust the output, subject to full compensation of potential output available.
Mlap of QF fl.ocation: See attached.
Anticipated coD'. 1.2 / L/ zolq
permitting status: Conditional Use Permit Application to Elmore County has been prepared and is being
subnritted.Nomajorobstaclesareanticipated All ofthenecessarylocal agencieswill beengagedtoprovide
comment and feedback on the proposed project. Building permits will be obtained prior to construction. There
are currently no anticipated schedule impacts to the Q4 2019 COD due to permitting.
QF Status. A FERC Form 556 QF Self -Certification has been submitted, see attached
Fuel type: The energy provided to ldaho Porrrrer will be 100% from the battery storage system The system will
be charged from a renewable energy source such as wind, sotar, biomass, etc. lnitial designs consist of a PV solar
facility to charge the system
Fuel source: i\ot applicable as the battery storage will be charged from a renewable source
lnterconnection:The pro.iect has prepared an SGIA interconnection application with suppor-ting material and to
be sLrbmltted in FebruarV 2017.
Contract. term and rate opl:ion. 20-year term with "Non-Levelized Non-Fueled Rates"
Black Mesa Energy v. IPCo - Exhibit I - Page I of 26
Within the next ten business days and pursuant to Section 1(b) please provide your written
notice of any deficiencies in this request or, if there are no deficiencies, pursuant to Section 1(c)
please provide ldaho Power's indicative pricing proposal.
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Black Mesa Energy v. IPCo - Exhibit I - Page 2 of 26
Form
FEDERAL ENERGY REGULATORY COMMISSION oMB contror# re02-00/s
WASHINGTON, DC Expiration 06/10i201e
( tr 4( Certification of Qualifying Facility (QF) Status for a Small Power
J J \.,f Production or Cogeneration Facility
General
Questions about completing this form should be sent to irr r , ).i(!i) ,' qov. lnformation about the Commission's QF
program, answers to frequent{y asked questions about QF requirements or completing this form, and contact information for
QFprogramstaff areavailableattheCommission'sQFwebsite, r,v,v,'r, .*: ,,, 1.)t. TheCommission'sQFwebsitealso
provides links to the Commission's QF regulations (18 C.F.R. S l3'l .80 and Part 292), as well as other statutes and orders
pertaining to the Commission's QF program.
Who Must File
Any applicant seeking QF status or recertification of QF status for a generating facility with a net power production capacity
(as determined in lines 7a through 79 below) greater than 1000 kW must file a self certification or an application for
Commission certification of QF status, which includes a properly completed Form 556. Any applicant seeking QF status for a
generating facility with a net power production capacity 1000 kW or less is exempt from the certification requirement, and is
therefore not required to complete or file a Form 556. 5ee l8 C.F.R. I 292.2A3.
How to Complete the Form 556
This form is intended to be completed by responding to the items in the order they are presented, according to the
instructionsgiven. lfyouneedtoback-track,youmayneedtoclearcertainresponsesbeforeyouwill beallowedtochange
other responses made previously in the form. lf you experience problems, click on the nearest help button ( i; ) tor
assistance, or contact Commission staff at I orrn556q)fer(.gov.
Ceftain lines in this form will be automatically calculated based on responses to previous lines, with the relevant formulas
shown. Youmustrespondtoall ofthepreviouslineswithinasectionbeforetheresultsofanautomaticallycalculatedfield
will be displayed. lf you disagree with the results of any automatic calculation on this form, contact Commission staff at
For-r, r r(iid'!'--.;u\/ to discuss the discrepancy before filing.
You must complete all lines in this form unless instructed otherwise. Do not alter this form or save this form in a different
format. lncomplete or altered forms, or forms saved in formats other than PDF, will be rejected.
How to File a Completed Form 556
Applicants are required to file their Form 556 electronically through the Commission's eFiling website (see instructions on
page 2). By filing electronically, you will reduce your filing burden, save paper resources, save postage or courier charges,
help keep Commission expenses to a minimum, and receive a much faster confirmation (via an email containing the docket
number assigned to your facility) that the Commission has received your filing.
lf you are simultaneously filing both a waiver request and a Form 556 as part of an application for Commission certification,
see the "Waiver Requests" section on page 3 for more information on how to file.
Paperwork Reduction Act Notice
This form is approved by the Office of Management and Budget. Compliance with the information requirements established
by the FERC Form No. 556 is required to obtain or maintain status as a QF. See 18 C.F.R. S l3l .80 and Part 292. An agency may
not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently
valid OMB control number. The estimated burden for completing the FERC Form No. 556, including gathering and reporting
information, is as follows: 3 hours for self-certification of a small power production facility, 8 hours for self-certifications of a
cogeneration facility, 6 hours for an application for Commission certification of a small power production facility, and 50 hours
for an application for Commission certification of a cogeneration facility. Send comments regarding this burden estimate or
any aspect of this collection of information, including suggestions for reducing this burden, to the following: lnformation
Clearance Officer, Office of the Executive Director (ED-32), Federal Energy Regulatory Commission, 888 First Street N.E.,
Washington, DC20426 (')a'" r ie,ri rrtr-:(,,1)l'rlr: .qo'r); and Desk Officer for FERC, Office of lnformation and Regulatory Affairs,
Office of Management and Budget, Washington, DC 20503 (o r'l ;LrDmii;rrJi,q)()r-nrr -.oo q,;v). lnclude the Control No.
1902-0075 in any correspondence.
Black Mesa Energy v. IPCo - Exhibit I - Page 3 of 26
FERC Form 556 Page 2 - lnstructions
Electronic Filinq (eFiling)
To electronically file your Form 556, visit the Commission's QF website at ,r/'r,,'; irli.,;ov/i-)r and click the eFiling link.
lf you are eFiling your first document, you will need to register with your name, email address, mailing address, and phone
number. lf you are registering on behalf of an employer, then you will also need to provide the employer name, alternate
contact name, alternate contact phone number and and alternate contact email.
Once you are registered, log in to eFiling with your registered email address and the password that you created at
registration. Follow the instructions. When prompted, select one of the following QF-related filing types, as appropriate,
from the Electric or General filing category.
Filing category Filing type as listed in eFiling Description
Electric
(Fee) Application for Commission Cert. as Cogeneration QF
Use to submit an application for
Commission certification or
Commission recertification of a
cogeneration facility as a QF.
(Fee) Application for Commission Cert. as Small Power QF
Use to submit an application for
Comm ission certification or
Commission recertification of a
small power production facility as a
QF.
Self-Certification Notice (QF, EG, FC)
Use to submit a notice of self-
certification of your facility
(cogeneration or small power
production) as a QF.
Self-Recertification of Qualifying Facility (QF)
Use to submit a notice of self-
recertification of your facility
(cogeneration or small power
production) as a QF.
Supplemental lnformation or Request
Use to correct or supplement a
Form 556 that was submitted with
errors or omissions, or for which
Commission staff has requested
additional information. Do not use
this filing type to report new
changes to a facility or its
ownership; rather, use a self-
recertification or Com mission
recertification to report such
changes.
6eneral
Use to submit a petition for
declaratory order granting a waiver
of Commission QF regulations
pursuant to 18 C.F.R. 55 292.20a(a)
(3) and/or 292.205(c). A Form 556 is
not required for a petition for
declaratory order unless
Commission recertification is being
requested as part of the petition.
(Fee) Petition for Declaratory Order (not under FPA Part I )
You will be prompted to submit your filing fee, if applicable, during the electronic submission process. Filing fees can be paid
via electronic bank account debit or credit card.
During the eFiling process, you will be prompted to select your file(s) for upload from your computer.
Black Mesa Energy v. lPCo - Exhibit I - Page 4 of 26
FERC Form 556 Page 3 'lnstructions
Filing Fee
No filing fee is required if you are submitting a self-ce(ification or self-recertification of your facility as a QF pursuant to l8
C.F.R.5 292.207(a).
A filing fee is required if you are filing either of the following:
(1) an application for Commission certification or recertification of your facility as a QF pursuant to 18 C.F.R. 5 292.207(b), or
(2) a petition for declaratory order granting waiver pursuant to l8 C.F.R. 55 292.204(a)(3) and/or 292.205(cl.
The current fees for applications for Commission certifications and petitions for declaratory order can be found by visiting the
Commission's QF website at rrvww fer .-ir;,r ''lr and clicking the Fee Schedule link.
You will be prompted to submit your filing fee, if applicable, during the eiectronic filing process described on page 2.
Required Notice to Utilities and State Regulatory Authorities
Pursuant to 18 C.F.R. 5 292.207(a)(ii), you must provide a copy of your self-certification or request for Commission certification
to the utilities with which the facility will interconnect and/or transact, as weli as to the State regulatory authorities of the
states in which your facility and those utilities reside. Links to information about the regulatory authorities in various states
can be found by visiting the Commission's QF website dt vr/rturrv i+, ' .govi()F and clicking the Notice Requirements link.
What to Expect From the Commission After You File
An applicant filing a Form 556 electronically will receive an email message acknowledging receipt of the filing and showing
the docket number assigned to the filing. Such email is typically sent within one business day, but may be delayed pending
confirmation by the Secretary of the Commission of the contents of the filing.
An applicant submitting a self-certification of QF status should expect to receive no documents from the Commission, other
than the electronic acknowledgement of receipt described above. Consistent with its name, a self-certification is a
certification by the applicanrltself that the facility meets the relevant requirements for QF status, and does not involve a
determination by the Commission as to the status of the facility. An acknowledgement of receipt of a self-certification, in
particular, does not represent a determination by the Commission with regard to the QF status of the facility. An applicant
self-certifying may, however, receive a rejection, revocation or deficiency letter if its application is found, during periodic
compliance reviews, not to comply with the relevant requirements.
An applicant submitting a request for Commission certification will receive an order either granting or denying certification of
QF status, or a letter requesting additional information or rejecting the application. Pursuant to 18 C.F.R. S 292.207(b)(3), the
Commission must act on an application for Commission certification within 90 days of the later of the filing date of the
application or the filing date of a supplement, amendment or other change to the application.
Waiver Requests
18 C.F.R. S 292.204(aX3) allows an applicant to request a waiver to modify the method of calculation pursuant to 18 C.F.R. S
292.204(a)(2) to determine if two facilities are considered to be located at the same site, for good cause. 18 C.F.R. 5 292.205(c)
allows an applicant to request waiver of the requirements of 18 C.F.R. 5S 292.205(a) and (b) for operating and efficiency upon
a showing that the facility will produce significant energy savings. A request for waiver of these requirements must be
submitted as a petition for declaratory order, with the appropriate filing fee for a petition for declaratory order. Applicants
requesting Commission recertification as part of a request for waiver of one of these requirements should electronically
submit their completed Form 556 along with their petition for declaratory order, rather than filing their Form 556 as a
separate request for Commission recertification. Only the filing fee for the petition for declaratory order must be paid to
cover both the waiver request and the request for recertification lf such requests are mode simultoneously.
l8 C.F.R. 5 292.203(dX2) allows an applicant to request a waiver of the Form 556 filing requirements, for good cause.
Applicants filing a petition for declaratory order requesting a waiver under '18 C.F.R. S 292.2A3G)Q) do not need to complete
or submit a Form 556 with their petition.
Black Mesa Energy v. IPCo - Exhibit I - Page 5 of 26
FERC Form 556 Page 4 - lllstructions
Geographic Coordinates
lf a street address does not exist for your facility, then line 3c of the Form 556 requires you to report your facility's geographic
coordinates (latitude and longitude). Geographic coordinates may be obtained from several different sources. You can find
links to online services that show latitude and longitude coordinates on online maps by visiting the Commission's QF
webpage at !\/!v,/v ,,, . gr;v,'Ql and clicking the Geographic Coordinates link. You may also be able to obtain your geographic
coordinates from a GPS device, Google Earth (available free at httr) , . r,'- got2glt...,:rn), a property survey, various
engineering or construction drawings, a property deed, or a municipal or county map showing property lines.
Filing Privileged Data or Critical Energy lnfrastructure lnformation in a Form 556
fhe Commission's regulations provide procedures for applicants to either (1) request that any information submitted with a
Form 556 be given privileged treatment because the information is exempt from the mandatory public disclosure
requirements of the Freedom of lnformation Act, 5 U.5.C. S 552, and should be withheld from public disclosure; or (2) identify
any documents containing critical energy infrastructure information (CEll) as defined in 18 C.F.R. 5 388.1 13 that should not be
made public.
lf you are seeking privileged treatment or CEll status for any data in your Form 556, then you must follow the procedures in 18
C.F.R. S 188.1 12. See w',,r,,v 'i'ri .Jo\, !ttro, tilirr,J lui_d,:, f :le-cr:ri.4sp for more information.
Among other things (see 18 C.F.R. S 388.1 12 for other requirements), applicants seeking privileged treatment or CEll status for
data submitted in a Form 556 must prepare and file both (l ) a complete version of the Form 556 (containing the privileged
and/or CEll data), and (2) a public version of the Form 556 (with the privileged and/or CEll data redacted). Applicants
preparing and filing these different versions of their Form 556 must indicate below the security designation of this version of
their document. lf you are not seeking privileged treatment or CEll status for any of your Form 556 data, then you should not
respond to any of the items on this page.
Public (redacted): Applicant is seeking privileged treatment and/or CEll status for data contained in the Form 556 lines
I indicated below. This public version of the applicants's Form 556 contains all data elcep! for data from the lines
indicated below, which has been redacted.
Privileged: lndicate below which lines of your form contain data for which you are seeking privileged treatment
Critical Energy lnfrastructure lnformation (CEll): lndlcate below which lines of your form contain data for which you are
seeking CEll status
The eFiling process described on page 2 will allow you to identify which versions of the electronic documents you submit are
public, privileged and/or CEll. The filenames for such documents should begin with "Public", "Priv", or "CEll", as applicable, to
clearly indicate the security designation of the file. Both versions of the Form 556 should be unaltered PDF copies of the Form
556, as available for download from .,',,,vr,, ' ..!l()'// I.)i . To redact data from the public copy of the submittal, simply omit the
relevant data from the Form. For numerical fields, leave the redacted fields blank. For text fields, complete as much of the
fieldaspossible,andreplacetheredactedportionsofthefieldwiththeword"REDACTED"inbrackets. Besuretoidentify
above ail fields which contain data for which you are seeking non-public status.
The Commission is not responsible for detecting or correcting filer errors, including those errors related to security
designation. lf your documents contain sensitive information, make sure they are filed using the proper se(urity designation.
Non-Public: Applicant is seeking privileged treatment and/or CEll status for data contained in the Form 556 lines
I indicated below. This non public version of the applicant's Form 556 contains alt data, including the data that is redacted
in the (separate) public verslon of the applicant's Form 556.
Black Mesa Energy v. IPCo - Exhibit I - Page 6 of 26
1a Full name of applicant (legal entity on whose behalf qualifying facility status is sought for this facility)
tsIar:k Mesa BnergY, LLC
'l b Applicant street address
i'.',. ljt:;< )IjI
1c City
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ld State/province
1e Postal code
9i)21 4
1f Country (if not United States)
th Has the instant facility ever previously been certified as a QF? Yes I No X
tg Telephorre nurnber
_lLr)-rrl--r')a
Form 556
FEDERALENERGYREGULATORYCOMMISSION oMBContror#re02-00/s
WASHINGTON, DC Expiration 06/t0/201e
Certification of Qualifying Facility (QF) Status for a Small Power
Production or Cogeneration Facility
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li lfyes,providethedocketnumberofthelastknownQFfilingpertainingtothisfacility' QF
lm lf any of the following three statements is true, check the box(es) that describe your situation and complete the form
to the extent possible, explaining any special circumstances in the Miscellaneous section starting on page 19.
,-- The instant facility complies with the Commission's QF requirements by virtue of a waiver of certain regulationsu previously granted by the Commission in an order dated (specify any other relevant waiver
orders in the Miscellaneous section starting on page 19)
,-- The instant facility would comply with the Commission's QF requirements if a petition for waiver submittedu concurrently with this application is granted
The instant facility complies with the Commission's regulations, but has special circumstances, such as the
I employment of unique or innovative technologies not contemplated by the structure of this form, that make
the demonstration of compliance via this form difficult or impossible (describe in Misc. section starting on p. l9)
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lj Under which certification process is the applicant making this filing?
* Notice of self-certification ,--., Application for Commission certification (requires filing
^ (see note below) U fee; see "Filing Fee" rection on page 3)
Note: a notice of self-certification is a notice by the applicant itself that its facility complies with the requirements for
QF status. A notice of self-certification does not establish a proceeding, and the Commission does not review a
notice of self-certification to verifr compliance. See the "What to Expect From the Commission After You File"
section on page 3 for more information.
I k What type(s) of QF status is the applicant seeking for its facility? (check all that apply)
\ Qualifoing small power production facility status ! Qualifying cogeneration facility status
t I What is the purpose and expected effective date(s) of this filing?
\ Original certification; facility expected to be installed by l0 i )" / 19 and to begin operation on L2 / 1 / L9
Change(s) to a previously certified facility to be effective on
(identifu type(s) of change(s) below, and describe change(s) in the Miscellaneous section starting on page '19)
Name change and/or other administrative change(s)
Change in ownership
Change(s) affecting plant equipment, fuel use, power production capacity and/or cogeneration thermal output
Supplement or correction to a previous filing submitted on
(describe the supplement or correction in the Miscellaneous section starting on page 19)
Black Mesa Energy v. IPCo - Exhibit I - Page 7 of 26
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2a Narne of cr.rntact person
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2b lelephone number
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2c Which of the following describes the conta€t person's relationship to the applicant? (check one)
ffi Applicant (selfl f] Employee, owner or partner of applicant authorized to represent the applicant
! Employee of a company affiliated with the applicant authorized to represent the applicant on this matter
f Lawyer, consultant, or other representative authorized to represent the applicant on this matter
2d Company or organization name (if applicant is an individual, check here and skip to line 2e)
Black Mesa Elrrer(Jy, LL(l
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3a Facility name
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3c Geographic coordinates: lf you indicated that no street address exists for your facility by checking the box in line 3b,
then you must specifi/ the latitude and longitude coordinates of the facility in degrees (to three decimal places). Use
the following formula to convert to decimal degrees from degrees, minutes and secondsr decimal degrees =
degrees + (minutes/60) + (seconds/3600). See the "Geographic Coordinates, section on page 4 for help. lf you
provided a street address for your facility in line lb, then specifring the geographic coordinates below is optional.
[l East (+)Longitude fr west (_)
r.Lr.LiIdegrees lX North (*)Latitude fr south (-)
,1 ) .'t ') degrees
3d City (if unincorporated, check here and enter nearest city) X
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3e State/province
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3f County (or check here for independent city)
E Irnore
39 Country (if not United States)
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ldentify the electric Lrtilities that are contemplated to transact with the facility
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FERC Form 556
4a ldentify utility interconnecting with the facility
Idaho P,Jwer Company
4c ldentify utilities purchasing the useful electric power output or check here if none
Irlaho Powe r Company
Page6-All Facilities
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Black Mesa Energy v. IPCo - Exhibit I - Page 8 of 26
5a Directownershipasof effectivedateoroperationdate: ldentifyall directownersof thefacilityholdingatleast 10
percent equity interest. For each identified owner, also (1) indicate whetl.rer that owner is an electric utility, as
defined in section 3(22) of the Federal PowerAct(16 U.S.C.796(22)), ora holding company, asdefined in section
1262(8) of the Public Utility Holding Company Act of 2005 (42 U.5.C. 16451(8)), and (2) for owners which are electric
utilities or holding companies, provide the percentage of equity interest in the facility held by that owner. lf no
direct owners hold at least 10 percent equity interest in the facility, then provide the required information for the
two direct owners with the largest equity interest in the facility.
Electric utility or lf Yes,holding o/o equity
Full legal names of direct owners company interest
1 i .,;rt .vi,r :,-', '..) , : :.. ,Yes f
Yesf,
Yes f
Yes f
Yes f
Yes !
Yes I
Yes I
Yes !
Yes fl
NoE
NoI
NoI
NoI
NoE
NoE
NoI
Notr
Non
NoE
2l
3)
4)
s)
6)
7l
8)
9)
10)
! Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed
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5b Upstream (i.e., indirect) ownership as of effective date or operation date: ldentify all upstream (i.e., indirect) owners
of the facility that both (1) hold at least 10 percent eguity interest in the facility, and (2) are electric utilities, as
defined in section 3(22) of the Federal PowerAct (16 U.S.C.796(22)), or holding companies, as defined in section
1 262(8) of the Public Utility Holding Company Act of 2005 (42 U.S.C. 16451(8)). Also provide the percentage of
equity interest in the facility held by such owners. (Note that, because upstream owners may be subsidiaries of one
another, total percent equity interest reported may exceed 100 percent.)
Check here if no such upstream owners exist. ffi
Full legal names of electric utility or holding company upstream owners
7o equity
interest
1)
2)
3)
4)
s)
6)
7l
8)
e)
t0)
Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed
FERC Form 556 PageT-All Facilities
u
5< ldentify the facility operator
'l i r _'< lvli) -r.l irln,t ta,l ,/', LL,
Black Mesa Energy v. IPCo - Exhibit I - Page 9 of 26
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FERC Form 556 PageS-All Facilities
6b lf you specified "waste" as the primary energy input in line 6a, indicate the type of waste fuel used: (check one)
f Waste fuel listed in l8 C.F.R. 5 292.202(b\ (specifl/ one of the following)
fl Anthracite culm produced prior to July 23, 1985
- Anthracite refuse that has an average heat content of 6,000 Btu or less per pound and has an averageL ash content of45 percent or more
,-., Bituminous coal refuse that has ar! average heat content of 9,500 Btu per pound or less and has an
" average ash content of 25 percent or more
Top or bottom subbituminous coal produced on Federal lands or on lndian lands that has been
,- determined to be waste by the United States Department of the lnterior's Bureau of Land Management
" (Bt-tvt) or that is located on non-Federal or non-lndian lands outside of BLM's jurisdiction, provided that
the applicant shows that the latter coal is an extension of that determined by BLM to be waste
Coal refuse produced on Federal lands or on lndian lands that has been determined to be waste by the
! BLM or that is located on non- Federal or non-lndian lands outside of 8LM's jurisdiction, provided that
applicant shows that the latter is an extension of that determined by BLM to be waste
- Lignite produced in association with the production of montan wax and lignite that becomes exposedu u, . result of such a mining operation
I Gaseous fuels (except natural gas and synthetic gas from coal) (describe on page l9)
Waste natural gas from gas or oil wells (describe on page 19 how the gas meets the requirements of 18
E C.F.R. S 2.400 for waste natural gas; include with your filing any materials necessary to demonstrate
compliance with l8 C.F.R. 5 2.400)
[] Materials that a government agency has certified for disposal by combustion (describe on page l9)
! Heat from exothermic reactions (describe on page 19) [ Residual heat (describe on page 19)
E Used rubber tires I Plastic materials ! Refinery off-gas I Petroleum coke
Other waste energy input that has little or no commercial vaiue and exists in the absence of the qualifying
! facility industry (describe in the Miscellaneous section starting on page 19; include a discussion of the fuel's
lack of commercial value and existence in the absence of the qualifoing facility industry)
6< Provide the average energy input, calculated on a calendar year basis, in terms of Btu/h for the following fossil fuel
energy inputs, and provide the related percentage of the total average annual energy input to the facility (18 C.F.R. 5
292.2O2(j)1. For any oil or natural gas fuel, use lower heating value (18 C.F.R. 5 292-2O2(m)\.
Fuel
Annual average energy
input for specified fuel
Percentage of total
annual ene input
i--t5
0 Btu/h
r) Btu/h
o Btu/h
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6a Describe the primary energy input: (check one main category and, if applicable, one subcategory)
I Biomass (specify) ffi Renewable resources (specify) f] Geothermal
[] Landfill gas ! Hydro power - river ll Fossil fuel (specifu)
ff Manure digester gas ! Hydro power - tidal ! Coal (not waste)
! Municipal solid waste I Hydro power - wave [] Fuel oil/diesel
I Sewage digester gas ! Solar - photovoltaic ! Natural gas (not waste)
[] Wood [ Solar - thermal ,_ Other fossil fuel
fl other biomass (describe on page 19) ! wind " (describe on page 19)
f waste (specifu type betow in tine 6b) * ?alHffi::'oo];J",|":',"" [l other (describe on pase 1e)
Natural gas
e
Black Mesa Energy v. IPCo - Exhibit I - Page l0 of 26
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lndicate the maximum gross and maximum net electric power production capacity of the facility at the point(s) of
delivery by completing the worksheet below. Respond to all items. lf any of the parasitic loads and/or losses identified in
lines 7b through 7e are negligible, enter zero for those lines.
7a The maximum gross power production capacity at the terminals of the individual generator(s)
under the most favorable anticipated design conditions ,,';t| kW
7b Parasitic station power used at the facility to run equipment which is necessary and integral to
the power production process (boiler feed pumps, fans/blowers, office or maintenance buildings
directly related to the operation of the power generating facility, etc.). lf this facility includes non-
power production processes (for instance, power consumed by a cogeneration facility's thermal
host) , do not include any power consumed by the non-power production activities in your
reported parasitic station power.'rl kW
7< Electrical losses in interconnection transformers
4 i,] kW
7d Electrical losses in AC/DC conversion equipment, if any
92 r) kW
7e Other interconnection losses in power lines or facilities (other than transformers and AC/DC
conversion equipment) between the terminals of the generator(s) and the point of interconnection
with the utility ,.J6 KW
7f Total deductions from gross power production capacity = 7b + 7c + 7d + 7e
79 Maximum net power production capacity =7a -7f
FERC Form 556 Page9-All Facilities
7h Description of facility and primary components: Describe the facility and its operation. ldentify all boilers, heat
recovery steam generators, prime mevers (any mechanical equiprnent driving an electric Aenerator), electrical
generators, photovoltaic solar equipment, fuel cell equipment and/or other primary power generation equipment
used in the facility. Descriptions of components should include (as applicable) specifications of the nominal
capacities for mechanical output, electrical output, or steam generation of the identified equipment. For each piece
of equipment identified, clearly indicate how many pieces of that type of equipment are included in the plant, and
which components are normally operating or normally in standby mode. Provide a description of how the
components operate as a system. Applicants for cogeneration facilities do not need to describe operations of
systems that are clearly depicted on and easily understandable from a cogeneration facility's attached mass and
heat balance diagram; however, such applicants should provide dny necessary description needed to understand
thesequential operationof thefacilitydepictedintheirmassarrdheatbalancediagram. lf additional spaceis
needed, continue in the Miscellaneous section starting on page 19.
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Black Mesa Energy v. IPCo - Exhibit I - Page ll of 26
FERC Form 556 Page 10 - Small Power Production
lnformation Required for Small Power Production Facility
lf you indicated in line 1 k that you are seeking qualifying small power production facility status for your facility, then you
must to the items on this Otherwise,page 10.
8a ldentify any facilities with electrical generating equipment located within I mile of the electrical generating
equipment of the instant facility, and for which any of the entities identified in tines 5a or 5b, or their affiliates, holds
at least a 5 percent equity interest.
here if no such facilities exist. ffi
Facility location Root docket #
(city or county, state) (if any)
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Common owner(s)
Maximum net power
production capacity
Pursuant to 18 C.F.R. 5 292.204(a), the power production capacity of any small power production facility, together
with the power production capacity of any other small power production facilities that use the same energy
resource, are owned by the same person(s) or its affiliates, and are located at the same site, may not exceed 80
megawatts. To demonstrate compliance with this size limitation, or to demonstrate that your facility is exempt
from this size lirnitation under the Solar, Wind, Waste, and Geothermal Power Production lncentives Act of ,I990
(Pub. L. 101-575,104 Stat. 2834 (1990) as omended by Pub. L. 102-46, 105 Stat. 249 (1991)1, respond to lines 8a
through 8e below (as applicable).
8c Was the original notice of self-certification or application for Commission certification of the facility filed on or
before December 31, 1994? Yes No
8d Did construction of the facility commence on or before December 3,l, 1999? Yes No
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8e lf you answered No in line 8d, indicate whether reasonable diligence was exercised toward the completion of
the facility, taking into account all factors relevant to construction? Yes No lf you answered Yes, provide
a brief narrative explanation in the Miscellaneous section starting on page 19 of the construction timeline (in
particular, describe why construction started so long after the facility was certified) and the diligence exercised
toward completion of the facility.
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3)
QF kw
QF-kw
QF KW
Check here and continue in the Miscellaneous section starting on page l9 if additional space is needed
8b The Solar, Wind, Waste, and Geothermal Power Production lncentives Act of 1990 (lncentives Act) provides
exemption from the size limitations in 1 8 C.F.R. I 292.204(al for certain facilities that were certified prior to I 995
Are you seeking exemption from the size limitations in 18 C.F.R. 5 292.20AG) by virtue of the lncentives Act?
I Yes (continue at line 8c below) ffi ttto {st<ip lines 8c through 8e)
Pursuant to l8 C.F.R. S 292.204(b), qualifying small power production facilities may use fossil fuels, in minimal
amounts, for only the following purposes: ignition; start-up; testing; flame stabilization; control use; alleviation or
prevention of unanticipated equipment outages; and alleviation or prevention of emergencies, directly affecting
the public health, safety, or welfare, which would result from electric power outages. The amount of fossil fuels
used for these purposes may not exceed 25 percent of the total energy input of the facility during the l2-month
period beginning with the date the facility first produces electric energy or any calendar year thereafter.
9a Certification of compliance with 18 C.F.R. S 292.204(b) with respect to uses of fossil fuel:
ffi Applicant certifies that the facility will use fossil fuels excluslvely for the purposes listed above.
9b Certification of compliance with 18 C.F.R. 5 292.204(b) with respect to amount of fossil fuel used annually:
Applicant certifies that the amount of fossil fuel used at the facility will not, in aggregate, exceed 25
ffi percent of the total energy input of the facility during the 12-month period beginning with the date the
facility first produces electric energy or any calendar year thereafter.
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Black Mesa Energy v. IPCo - Exhibit I - Page 12 of 26
FERC Form 556 Page 1 'l - Cogeneration Facilities
lnformation Required for Cogeneration Facility
lf you indicated in line lk that you are seeking qualifoing cogeneration facility status for your facility, then you must respond
to the items on pages I 1 13. Otherwise, skip pages 'l 'l through 13.
lOa What type(s) of cogeneration technology does the facility represent? (check all that apply)
Topping-cycle cogeneration Bottoming-cycle cogeneration
10b To help demonstrate the sequential operation of the cogeneration process, and to support compliance with
other requirements such as the operating and efficiency standards, include with your filing a mass and heat
balance diagram depicting average annual operating conditions. Ihis diagram must include certain items and
meet certain requirements, as described below. You must check next to the description of each requirement
below to certify that you have complied with these requirements.
Check to certify
compliance with
indicated requirement
Diagram must show orientation within system piping and/or ducts of all prime movers,
heat recovery steam generators, boilers, electric generators, and condensers (as
applicable), as well as any other primary equipment relevant to the cogeneration
procesS.
Any average annual values required to be reported in lines 1 0b, I 2a, 1 3a, 1 3b, I 3d, 1 3l
14a, 15b, 1 5d and/or 1 5f must be computed over the anticipated hours of operation.
Diagram must specifo all fuel inputs by fuel type and average annual rate in Btu/h. Fuel
for supplementary firing should be specified separately and clearly labeled. All
specifications of fuel inputs should use lower heating values.
Diagram must specify average gross electric output in kW or MW for each generator.
Diagram must specify average mechanical output (that is, any mechanical energy taken
off of the shaft of the prime movers for purposes not directly related to electric power
generation) in horsepower, if any. Typically, a cogeneration facility has no mechanical
output.
At each point for which working fluid flow conditions are required to be specified (see
below), such flow condition data must include mass flow rate (in lb/h or kgls),
temperature (in'F, R, "C or K), absolute pressure (in psia or kPa) and enthalpy (in Btu/lb
or kJlkg). Exception: For systems where the working fluid is liquid only (no vapor at any
point in the cycle) and where the type of liquid and specific heat of that liquid are clearly
indicated on the diagram or in the Miscellaneous section starting on page 19, only mass
flow rate and temperature (not pressure and enthalpy) need be specified. For reference,
specific heat at standard conditions for pure liquid water is approximately 1.002 Btu/
(lb*R) or 4.195 kJl(kg*K).
Diagram must specifiT working fluid flow conditions at input to and output from each
steam turbine or other expansion turbine or back'pressure turbine.
Diagram must specifu working fluid flow conditions at delivery to and return from each
thermal application.
Diagram must speciflr working fluid flow conditions at make-up water inputs.
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Pursuant to 18 C.F.R. 5 292.202(c), a cogeneration facility produces electric energy and forms of useful thermal
energy (such as heat or steam) used for industrial, commercial, heating, or cooling purposes, through the sequential
useofenergy. Pursuanttol8C.F.R.5292.202(s),"sequential use"ofenergymeansthefollowing: (1)foratopping-
cycle cogeneration facility, the use of reject heat from a power production process in sufficient amounts in a
thermal application or process to conform to the requirements of the operating standard contained in 18 C.F.R. S
292.205(a); or (2) for a bottoming-cycle cogeneration facility, the use of at least some reject heat from a thermal
application or process for power production.
Black Mesa Energy v. lPCo - Exhibit I - Page l3 of 26
FERC Form 556
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l ld Does the applicant contend that the changes identified in line 1 1c are not so significant as to make the facility
a "new" cogeneration facility that would be subject to the l8 C.F.R.5 292.205(d) cogeneration requirements?
Yes. Provide in the Miscellaneous section starting on page 19 a description of any relevant changes made to
the facility (including the purpose of the changes) and a discussion of why the facility should not be
considered a "new" cogeneration facility in light of these changes. Skip lines 1 1e through 1 1j.
No. Applicant stipulates to the fact that it is a "new" cogeneration facility (for purposes of determining the
applicability of the requirements of l8 C.F.R. 5 292.205(d)) by virtue of modifications to the facility that were
initiated on or after February 2,2006. Continue below at line 1 1e.
l le Will electric energy from the facility be sold pursuant to section 210 of PURPA?
Yes. The facility is an EPAct 2005 cogeneration facility. You must demonstrate compliance with 18 C.F.R. S
292.205(dX2) by continuing at line 1 I f below.
No. Applicant certifies that energy will nof be sold pursuant to section 210 of PURPA. Applicant also certifies
its understanding that it must recertify its facility in order to determine compliance with the requirements of
18 C.F.R. 5 292.205(d) before selling energy pursuant to section 210 of PURPA in the future. Skip lines 1 1f
through 1 1j.
l lf ls the net power production capacity of your cogeneration facility, as indicated in line 79 above, less than or
equal to 5,000 kW?
Yes, the net power production capacity is less than or equal to 5,000 kw. l8 c.F.R. s 292.205(dx4) provides a
rebuttable presumption that cogeneration facilities of 5,000 kW and smaller capacity comply with the
requirements for fundamental use of the facility's energy output in 18 C.F.R. 5 292.205(d)(2). Applicant
certifies its understanding that, should the power production capacity of the facility increase above 5,000
kW, then the facility must be recertified to (among other things) demonstrate compliance with 18 C.F.R. S
292.20s(dX2). Skip lines 1 1g through 11j.
No, the net power production capacity is greater than 5,000 kW. Demonstrate compliance with the
requirements for fundamental use of the facility's enerqy output in 18 C.F.R, 5 292.205(d)(2) by continuing on
the next page at line 'l 19.
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Page 12 - Cogeneration Facilities
EPAct 2005 cogeneration facilities: The Energy Policy Act of 2005 (EPAct 2005) established a new section 210(n) of
the Public Utility Regulatory Policies Act of 1978 (PURPA), 16 USC 824a-3(n), with additional requirements for any
qualifring cogeneration facility that (1) is seeking to sell electric energy pursuant to section 210 of PURPA and (2)
was either not a cogeneration facility on August 8, 2005, or had not filed a self-certification or application for
Commission certification of QF status on or before February '1, 2006. These requirements were implemented by the
Commission in l8 C.F.R. S 292.205(d). Complete the lines below, carefully following the instructions, to demonstrate
whether these additional requirements apply to your cogeneration facility and, if so, whether your facility complies
with such requirements.
t I a Was your facility operating as a qualifying cogeneration facility on or before August 8, 2005? Yes No
1 I b Was the initial filing seeking certification of your Facility (whether a notice of self-certification or an application
for Commission ce(ification) filed on or before February 1,2006? Yes No
lf the answerto either line l la or 11b isYes, then continue at line 11c below. Otherwise, if the answers to both lines
1'la and I I b are No, skip to line 1 le below.
1 1 c With respect to the design and operation of the facitity, have any changes been implemented on or after
February 2, 2006 that affect general plant operation, affect use of thermal output, and/or increase net power
production capacity from the plant's capacity on February l, 2006?
Yes (continue at line I 1d below)
No. Your facility is not subject to the requirements of 18 C.F.R. 5 292.205(d) at this time. However, it may be
subject to to these requirements in the future if changes are made to the facility. At such time, the applicant
would need to recertify the facility to determine eligibility. Skip lines 11d through 11j.
Black Mesa Energy v. lPCo - Exhibit I - Page 14 of 26
FERC Form 556 Page 13 - Cogeneration Facilities
Lines I .lg through 1 I k below guide the applicant through the process of demonstrating compliance with the
requirements for "fundamental use" of the facility's energy output. 18 C.F.R. 5 292.205(d)(2). Only respond to the
lines on this page if the instructions on the previous page direct you to do so. Otherwise, skip this page.
l8 C.F.R. S 292.205(dX2) requires that the electrical, thermal, chemical and mechanical output of an EPAct 2005
cogeneration facility is used fundamentally for industrial. commercial, residential or institutional purposes and is
not intended fundamentally for sale to an electric utility, taking into account technological, efficiency, economic,
and variable thermal energy requirements, as well as state laws applicable to sales of electric energy from a
qualifyingfacilitytoitshostfacility. lfyouweredirectedonthepreviouspagetorespondtotheitemsonthispage,
then your facility is an EPAct 2005 cogeneration facility that is subject to this ,fundamental use" requirement.
The Commission's regulations provide a two-pronged approach to demonstrating compliance with the
requirements for fundamental use of the facility's energy output. First, the Commission has established in l8 C.F.R.
5 292.205(dX3) a "fundamental use test" that can be used to demonstrate compliance with 18 C.F.R. S 292.205(dX2).
Under the fundamental use test, a facility is considered to comply with '18 C.F.R. S 292.205(d)(2) if at least 50 percent
of the facility's total annual energy output (including electrical, thermal, chemical and mechanical energy output) is
used for industrial, commercial, residential or institutional purposes.
Second, an applicant for a facility that does not pass the fundamental use test may provide a narrative explanation
of and support for its contention that the facility nonetheless meets the requirement that the electrical, thermal,
chemical and mechanical output of an EPAct 2005 cogeneration facility is used fundamentally for industrial,
commercial, residential or institutional purposes and is not intended fundamentally for sale to an electric utility,
taking into account technological, efficiency, economic, and variable thermal energy requirements, as well as state
laws applicable to sales of electric energy from a qualifying facility to its host facility.
Complete lines 119 through 1 1j below to determine compliance with the fundamental use test in 18 C.F.R. 5
292.205(dX3). Complete lines 'l I g through 11j even if you do not intend to rely upon the fundamental use test fo
demonstrate complionce with l8 C.F.R. 5 292.205(d)(2).
Iti Percentageoftotalannualenergyoutputexpectedtobeusedforindustrial,
commercial, residential or institutional purposes and not sold to a utility
= 100 * 1 19 /(1 lg + 1 1 h)
1f j ls the response in line 1 'l i greater than or equal to 50 percent?
Yes. Your facility complies with l8 C.F.R. S 292.205(dX2) by virtue of passing the fundamental use test
provided in l8 C.F.R. S 292.205(d)(3). Applicant certifies its understanding that, if it is to rely upon passing
the fundamental use test as a basis for complying with 18 C.F.R. g 292.205(dX2), then the facility must
comply with the fundamental use test both in the 12-month period beginning with the date the facility first
produces electric energy, and in all subsequent calendar years.
No. Your facility does not pass the fundamental use test. lnstead, you must provide in the Miscellaneous
section stafting on page 19 a narrative explanation of and support for why your facility meets the
requirement that the electrical, thermal, chemical and mechanical output of an EPAct 2005 cogeneration
facility is used fundamentally for industrial, commercial, residential or institutional purposes and is not
intended fundamentally for sale to an electric utility, taking into account technological, efficiency, economic,
and variable thermal energy requirements, as well as state laws applicable to sales of electric energy from a
QF to its host facility. Applicants providing a narrative explanation of why their facility should be found to
comply with 18 C.F.R. 5 292.205(d)(2) in spite of non-compliance with the fundamental use test may want to
review paragraphs 47 through 61 of Order No.671 (accessible from the Commission's QF website at
www.ferc.gov/QF), which provide discussion of the facts and circumstances that may support their
explanation. Applicant should also note that the percentage reported above will establish the standard that
that facility must comply with, both for the 12-month period beginning with the date the facility first
produces electric energy, and in all subseguent calendar years. See Order No. 671 at paragraph 5'l . As such,
the applicant should make sure that it reports appropriate values on lines I I g and 'l I h above to serve as the
relevant annual standard, taking into account expected variations in production conditions.
Black Mesa Energy v. lPCo - Exhibit I - Page l5 of 26
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I I g Amount of electrical, thermal, chemical and mechanical energy output (net of internal
generation plant losses and parasitic loads) expected to be used annually for industrial,
commercial, residential or institutional purposes and not sold to an electric utility
I t h Total amount of electrical, thermal, chemical and mechanical energy expected to be
sold to an electric utility
FERC Form 556 Page l4 - Topping-Cycle Cogeneration Facilities
lnformation Required for Topping-Cycle Cogeneration Facility
lf you indicated in line l0a that your facility represents topping-cycle cogeneration technology, then you must respond to
the items on 14and 15. Otherwise,14 and 15.
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ot.,.l:)12b Demonstration of usefulness of thermal output: At a minimum, provide a brief description of each use of the
thermal output identified above. ln some cases, this brief description is sufficient to demonstrate usefulness.
However, if your facility's use of thermal output is not common, and/or if the usefulness of such thermal output is
not reasonably clear, then you must provide additional details as necessary to demonstrate usefulness. Your
application may be rejected and/or additional information may be required if an insufficient showing of usefulness
is made. (Exception: lf you have previously received a Commission certification approving a specific use of thermal
output related to the instant facility, then you need only provide a brief description of that use and a reference by
date and docket number to the order certifying your facility with the indicated use. Such exemption may not be
used if any change creates a material deviation from the previously authorized use.) lf additional space is needed,
continue in the Miscellaneous section starting on page 19.
The thermal energy output of a topping-cycle cogeneration facility is the net energy made available to an industrial
or commercial process or used in a heating or cooling application. Pursuant to sections 292.202(c), (d) and (h) of the
Commission's regulations (18 C,F.R. 55 292.202(c), (d) and (h)), the thermal energy output of a qualifoing topping-
cycle cogeneration facility must be useful. ln connection with this requirement, describe the thermal output of the
topping cycle cogeneration facility by responding to lines l2a and I 2b below.
'l2a ldentifiT and describe each thermal host, and specify the annual average rate of thermal output made available
to each host for each use. For hosts with multiple uses of thermal output, provide the data for each use in
seporate rows' Average annual rate of
thermal output
attributable to use (net of
Name of entity (thermal host) Thermal host's relationship to facility; heat contained in process
taking thermal output Thermal host's use of thermal output return or make-up water)
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Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed
Black Mesa Energy v. IPCo - Exhibit I - Page 16 of 26
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Appllcants for facilities representing topping-cycle technology must demonstrate compliance with the topping-
cycle operating standard and, if applicable, efficiency standard. Section 292.205(aX l) of the Commission's
regulations (18 C.F.R. S 292.205(a)(l )) establishes the operating standard for topping-cycle cogeneration facilities:
the useful thermal energy output must be no less than 5 percent of the total energy output. Section 292.205(aX2)
(18 C.F.R. 5 292.205(a)(2)) establishes the efficiency standard for topping-cycle cogeneration facilities for which
installation commenced on or after March 1 3, 1980: the useful power output of the facility plus one-half the useful
thermal energy output must (A) be no less than 42.5 percent of the total energy input of natural gas and oil to the
facility; and (B) if the useful thermal energy output is less than 1 5 percent of the total energy output of the facility,
be no less than 45 percent of the total energy input of natural gas and oil to the facility. To demonstrate
compliance with the topping-cycle operating and/or efficiency standards, or to demonstrate that your facility is
exempt from the efficiency standard based on the date that installation commenced, respond to lines 13a throughlll below.
lf you indicated in line 1 0a that your facility represents both topping-cycle and bottoming-cycle cogeneration
technology, then respond to lines l3a through 131 below considering only the energy inputs and outputs
attributable to the topping cycle portion of your facility. Your mass and heat balance diagram must make clear
which mass and energy flow values and system components are for which portion (topping or bottoming) of the
cogeneration system.
13a lndicate the annual average rate of useful thermal energy output made available
to the host(s), net of any heat contained in condensate return or make-up water )i
1 3b lndicate the annual average rate of net electrical energy output
t3c Multiply line 13b by 3,412 to convert from kW to Btu/h
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l3d lndicate the annual average rate of mechanical energy output taken directly off
of the shaft of a prime mover for purposes not directly related to power production
(this value is usually zero)
13e Multiply line 13d by 2,544 to convert from hp to Btu/h
13f lndicate the annual average rate of energy input from natural gas and oil
t 39 Topping-cycle operating value = 100 * I 3a / (t 3a + 1 3c + 1 3e)
13h Topping-cycle efficiency value = 100 * (0.5*13a + l3c + l3e) / I 3f
13i Compliance with operating standard: ls the operating value shown in line 139 greater than or equal to 5olo?
Yes (complies with operating standard) No (does not comply with operating standard)
FERC Form 556 Page l5 - Topping-Cycle Cogeneration Facilities
t 3i Did installation of the facility in its current form commence on or after March 13, 1980?
Yes. Your facility is subject to the efficiency requirements of 'l 8 C.F.R. 5 292.205(aX2). Demonstrate
compliance with the efficiency requirement by responding to line 13k or 131, as applicable, below.
No. Your facility is exempt from the efficiency standard. Skip lines 13k and I ll.
l3k Compliance with efficiency standard (for low operating value): lf the operating value shown in line 1 39 is less
than l5olo, then indicate below whether the efficiency value shown in line l3h greater than or equal to 45olo:
Yes (complies with efficiency standard) No (does not comply with efficiency standard)
I3l Compliancewithefficiencystandard(forhighoperatingvalue): lftheoperatingvalueshowninlinel39is
greater than or equal to 157o, then indicate below whether the efficiency value shown in line t 3h is greater than or
equal to 425%:
Yes (complies with efficiency standard) No (does not comply with efficiency standard)
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Black Mesa Energy v. IPCo - Exhibit I - Page 17 of 26
FERC Form 556 Page l6 - Bottoming-Cycle Cogeneration Facilities
lnformation Required for Bottoming-Cycle Cogeneration Facility
lf you indicated in line 10a that your facility represents bottoming-cycle cogeneration technology, then you must respond
to the items on pages 16 and I /. Otherwise, skip l6and 17
t4a ldentihT and describe each thermal host and each bottoming-cycle cogeneration process engaged in by each
host. For hosts with multiple bottoming-cycle cogeneration processes, provide the data for each process in
seporate rows'
Has the energy input to
Name of entity (thermal host) the thermal host been
performing the process from augmented for purposes
which at least some of the of increasing power
reject heat is used for power Thermal host's relationship to facility; production capacity?production Thermal host's process type (if Yes, describe on p. 19)
'l4b Demonstration of usefulness of thermal output: At a minimum, provide a brief description of each process
identified above. ln some cases, this brief description is sufficient to demonstrate usefulness. However, if your
facility's process is not common, and/or if the usefulness of such thermal output is not reasonably clear, then you
must provide additional details as necessary to demonstrate usefulness. Your application may be rejected and/or
additional information may be required if an insufficient showing of usefulness is made. (Exception: lf you have
previously received a Commission certification approving a specific bottoming-cycle process related to the instant
facility, then you need only provide a brief description of that process and a reference by date and docket number
to the order certirying your facility with the indicated process. 5uch exemption may not be used if any material
changes to the process have been made.) lf additional space is needed, continue in the Miscellaneous sectlon
starting on page 19.
tJ
(u
LJ
\JIol
90-O=
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otttt O
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orn
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The thermal energy output of a bottoming-cycle cogeneration facility is the energy related to the process(es) from
which at least some of the reject heat is then used for power production. Pursuant to sections 292.202(c) and (e) of
the Commission's regulations (18 C.F.R. 5 292.202(c) and (e)) , the thermal energy output of a qualifying bottoming-
cycle cogeneration facility must be useful. ln connection with this requirement, describe the process(es) from which
at least some of the reject heat is used for power production by responding to lines 14a and 14b below.
Yes No
Yes No
1 1 1, , .t ),'.. )-.'
Yes No
.i,, '\- :
Check here and continue in the Miscellaneous section starting on page l9 if additional space is needed
Black Mesa Energy v. IPCo - Exhibit I - Page l8 of 26
FERC Form 556 Page 17 - Bottoming-Cycle Cogeneration Facilities
I5h Compliance with efficiency standard: lndicate below whether the efficiency value shown in line 1 59 is greater
than or equal to 45olo:
Yes (complies with efficiency standard) No (does not comply with efficiency standard)
t,
tJ
t,
t,
EcItr t-e8
s39E6Y(U-
LJ
..7 =^(,t L,CC'F .9CL,OiE
6'!o
Applicants for facilities representing bottoming-cycle technology and for which installation commenced on or after
March t 3, 1990 must demonstrate cornpliance with the bottoming-cycle efficiency standards. Section 292.205(b) of
the Commission's regulations ('l 8 C.F.R. 5 292.205(b)) establishes the efficiency standard for bottoming-cycle
cogeneration facilities: the useful power output of the facility must be no less than 45 percent of the enerqy input
of natural gas and oil for supplementary firing. To demonstrate compliance with the bottoming-cycle efficiency
standard (if applicable), or to demonstrate that your facility is exempt from this standard based on the date that
installation of the facility began, respond to lines 15a through 15h below.
lf you indicated in line l0a that your facility represents borh topping-cycle and bottoming-cycle cogeneration
technology, then respond to lines I5a through l5h below considering only the energy inputs and outputs
attributable to the bottoming cycle portion of your facility. Your mass and heat balance diagram must make clear
which mass and energy flow values and system components are for which portion of the cogeneration system
(toppin g or bottom ing).
15a Did installation of the facility in its current form commence on or after March 1 3, 1980?
Yes. Your facility is subject to the efficiency requirement of 18 C.F.R. S 292.205(b). Demonstrate compliance
with the efficiency requirement by responding to lines l5b through I5h below.
No. Your facility is exempt from the efficiency standard. Skip the rest of page 17.
15b lndicate the annual average rate of net electrical energy output
t5c Multiply line l5b by 3,412 to convert from kW to Btu/h
15d lndicate the annual average rate of mechanical energy output taken directly off
of the shaft of a prime mover for purposes not directly related to power production
(this value is usually zero)
15e Multiply line 15d by 2,544 to convert from hp to Btu/h
l5f lndicate the annual average rate of supplementary energy input from natural gas
or oil
159 Eottoming-cycle efficiency value = 100 * (15c + 1 5e) / 15f
Black Mesa Energy v. IPCo - Exhibit I - Page 19 of 26
FERC Form 556 Page l8 - All Fdcilities
Certificate of Completeness, Accuracy and Authority
Applicant must certify compliance with and understanding of filing requirements by checking next to each item below and
signing at the bottom of this section. Forms with incomplete Certificates of Completeness, Accuracy and Authority will be
rejected by the Secretary of the Commission.
Signer identified below certifies the following: (check all items and applicable subitems)
He or she has read the filing, including any information contained in any attached documents, such as cogeneration
f,J mass and heat balance diagrams, and any information contained in the Miscellaneous section starting on page i 9, and
knows its contents.
il He or she has provided all of the required information for certification, and the provided information is true as stated,
to the best of his or her knowledge and belief.
He or she possess full power and authority to sign the filing; as required by Rule 2005(aX3) of the Commission's Rules of
Practice and Procedure (18 C.F.R. S 385.2005(a)(3)), he or she is one of the following: (check one)
E The person on whose behalf the filing is made
! An officer of the corporation, trust, association, or other organized group on behalf of which the filing is made
,- An officer, agent, or employe of the governmental authority, agency, or instrumentality on behalf of which theu filing is made
* A representative qualified to practice before the Commission under Rule 2101 of the Commission's Rules of
^ PracticeandProcedure(18C.F.R.5385.2101)andwhopossessesauthoritytosign
He or she has reviewed all automatic calculations and agrees with their results, unless otherwise noted in the
Miscellaneous section starting on page 19.
He or she has provided a copy of this Form 556 and all attachments to the utilities with which the facility will
interconnect and transact (see lines 4a through 4d), as well as to the regulatory authorities of the states in which the
facility and those utilities reside. See the Reguired Notice to Public Utilities and State Regulatory Authorities section on
page 3 for more information.
a
Provide your signature, address and signature date below. Rule 2005(c) of the Commission's Rules of Practice and
Procedure (18 C.F.R. 5 385.2005(c)) provides that persons filing their documents electronically may use typed characters
representing his or her name to sign the filed documents. A person filing this document electronically should sign (by
typing his or her name) in the space provided below.
Your Signature Your address
l'""
Audit Notes
uission Staff Use Only
Black Mesa Energy v. IPCo - Exhibit I - Page 20 of 26
FERC Form 556 Page '19 - All Facillties
Miscellaneous
Use this space to provide any information for which there was not sufficient space in the previous sections of the form to
provide. For each such item of information clearly identify the line number that the informotion betongs to. You may also use
this space to provide any additlonal information you believe is relevant to the certification of your facility.
Your response below is not limited to one page. Additional page(s) will automatically be inserted into this form if the
length of your response exceeds the space on this page. Use as many pages as you require.
L,ine ,i'r: The +n.:rgY sLi-)r'jge ibar-[ery) system wi, i]- takc i.l,s lnput f r:om l0U? renewab Ieenerg'y's()rjrce.! sur:h as wind, soL.ar, biogas, i.riJmas-s, efc. 'llhe sy'siem rs rlesrr;nc11 wl-tnflexLbllLry r-o most efficre,-ltly uf.LIize thrl r€sr)urrte:t,t,i,ailabIe at the sit,l , ar- thepreSenL t Lme a:: weLl as in t,he fulrrre.
Black Mesa Energy v. IPCo - Exhibit I - Page 2l of 26
ldaho Power Company
T
SCHEDULE 73
CoGENERATION AND SMALL POWER PRODUCTION SCHEpUIE - IDAHO
(Continued)
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
ldaho Power Qualifying Facility (QF) contact information
Mailing Address:
Physical Address:
Telephone number:
E-MailAddress:
IDAHO
lssued per Order No. 33197
Effective - January 1, 2015
Attn: Energy Contracts, P O Box 70 Boise, lD 83702
1221W.ldaho Street, Boise, lD 83703
208-388-6070
I.al hnr n @dahep_ o-we r c o rn
Preamble and lnstructions
All generation facilities that qualify pursuant to ldaho Power Company Schedule 73 for a QF
Energy Sales Agreement and wish to sell energy from their facility to ldaho Power must
complete the following information and submit this Application by hand delivery, mail or E-mail
to ldaho Power.
Upon receipt of a complete Application, ldaho Power shall process this request for a QF Energy
Sales Agreement pursuant to ldaho Power Company Schedule 73.
Qualifying Facility !nformation
Prooosed Proiect
Name of Facility Fllaek Mesa Encrov
Resource Type: (i.e. wind, solar, hydrc, etc)Baftanr Storaoe
Facility Location: GPS Coordinates: W 115.18 N 42.91
Nearest City or landmark: Glenns Ferrv. ldaho
Name of Facility:Black Mesa E
Countv and State: Elmore Countv. ldaho
Map of Facility, including proposed interconnection point. (See Attached.l
Anticipated commencement date of energy deliveries to ldaho Power: October
1.2019
lssued by IDAHO POWER COMPANY
Gregory W. Said, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
Black Mesa Energy v. IPCo - Exhibit I - Page 22 of 26
ldaho Power Company
!.P.U.C. No. 29, Tariff No. 101 Orioinal Sheet No. 73-9
SCHEDULE 73
COGENERATION AND SMALL POWER PRODUCTION SCHEDULE _ IDAHO
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
(Continued)
Facility Nameplate Capacity Rating (kW)20.000
Facility Maximum Output Capacity (kW)20.000
Station Service Requirements (kW)7.000
Facility Net Delivery to ldaho Power (kW)20.000
Facility interconnection status: Pendinq
Proposed Contracting Term (cannot exceed 20 years): 20 vears
Requested Rate Option (details provided in Schedule 73): Rate Ootion No. 4.
"Non-Levelized Non-Fueled Rates"
Does the Facility have the ability to respond to dispatch orders from ldaho Power
Company (Yes or No)Yes
Please include the following attachments:
/ Hourly estimated energy deliveries (kW) to ldaho Power for every hour of a one year period
Attached.
'/ List of acquired and outstanding Qualifying Facility permits, including a description of the
status and timeline for acquisition of any outstanding permits.
Conditional Use Permlt Aoolication to Elmore Gounty has been oreoared and is
beinq submttted. No maior obEtaclee are antlcioated. Nl of the necessarv locgl agencies
will be enoaqed to provlde comment and fesdback on the oroooiod orolect. Bulldinopermits wlll be obtained orior to construction. There are currentlv no anticlpated
schedule lmoacts to the Q4 2019 COD due to oermittino.
r At the minimum a FERC issued QF certificate/self-certification is required and/or
evidence that Facility will be able to obtain a Qualifying Facility certificate.
FERC Form 556 is attached.
/ lf the Facility will require fuel be transported to the Facility (i.e. natural gas pipelines, railroad
IDAHO
lssued per Order No. 33197
Effective - January 1,2015
lssued by IDAHO POWER COMPANY
Gregory W. Said, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
Black Mesa Energy v. IPCo - Exhibit I - Page 23 of 26
transportation, etc), evidence of ability to obtain sufficient transportation rights to operate the
Facility at the stated Maximum Output Amount.
N/A/ lf the Facility will not be interconnecting directly to the ldaho Power electrical system,
evidence that the Facility will be able to interconnect to another utility's electrical system and
evidence that the Facility will be able to obtain firm transmission rights over all required
transmission providers to deliver the Facility's energy to ldaho Power.
N/A
Owner lnformation
Owner / Company Name. Black Mega Enemv. LLC
Contact Person: Brlan Lvnch. llanaoer
Address: P.O. Box 2731
City: State: Zip: Paloo Verdes. CA 90274
Telephone: 31 0-75G7796
E-mail: [e-mail]
Applicant Signature
I hereby certify that, to the best of my knowledge, all information provided in this Qualifying
Facility Energy Sales Agreement application is true and correct.
lsl
Signature
Brlan Lvnch
Print Name
IDAHO
lssued per Order No. 33197
Effective - January 1, 2015
lssued by IDAHO POWER COMPANY
Gregory W. Said, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
Black Mesa Energy v. IPCo - Exhibit I - Page 24 of 26
q
q
!
?
Pn*rct
L<ratitm
Black Mesa
Energy Proiect
20 MW
Energy Storate
+
RunBwable Energl
LaULong: 42.904 -1 15. 183
Location: Elmore County, tdaho
+.\.. i.;:
Black Mesa Enerry v. IPCo - Exhibit I - Page 25 of 26
,f Sdgv(ly &,,1
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-L@cIl.f*;#-CfWfr
Black Mesa Energy v. lPCo - Exhibit I - Page 26 of 26
Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N. 27th Street
Boise,Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@ richardsonadams. com
gre g@richardsonadams. com
Attomeys for Complainant Black Mesa Energy, LLC
BEFORE THE
IDAIIO PUBLIC UTILITIES COMMISSION
BLACK MESA ENERGY, LLC,
Complainant,Case No.
FORMAL COMPLAINT
EXHIBIT 2
vs.
IDAHO POWER COMPANY,
Defendant.
)
)
)
)
)
)
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)
From: Brian Lynch [mailto:[e-mail]]
Sent: Thursday, February 23,2Ot7 9:13 AM
To: Da rrington, M ichael <MDarrington @ idahopower.com>
Subject: [EXTERNAL] FW: Black Mesa Energy pricing request- resubmitted after email bounced back
Mr. Darrington-
Wanted to circle this back to you and make sure you saw it. Please confirm receipt
Brian
From: Brian Lynch <[e-mail]>
Date: Saturday, February lL,2017 at 5:11 PM
To: <M Darrington @idahopowe r.com>
Cc: Brian Lynch <[e-mail]>
Subject: Black Mesa Energy pricing request- resubmitted after email bounced back
Please find below the requested information from Schedule 73 and completed Qualifying Facility Energy Sales Agreement Application to
:ceive an indicative pricing proposal forthe Black Mesa Energy Storage QF Project. Please let me know if there are any questions. Each of
the items from Section 1 of the Contracting Procedures of Schedule 73 is responded to below:
1
Black Mesa Energy v. IPCo - Exhibit 2 -Page I of 2
a Project Name: Black Mesa Energy, LLC
. Location: Black Mesa Substation, King Hill, ldaho
. Ortanization chart: Black Mesa Energy, LLC is wholly owned by MB MezzDev, LLC
. Generation technology: Black trresa Energy is an energy storage system Qualifying Facility that provides scheduled
and dispatchable electricity. The storage system will receive l00o/o of input energy from renewable energy sources'
. Maximum Capacity & Net power: See attached FERC QFSelf-Certification Form 556, which quantifies these amounts.
. Hourly production: Attached is an 8760 of power production
. Dispatch orders: The project will provide scheduled, dispatchable power output in forward looking time intervals
ranging from 5-30 minutes pending final system design. Within these intervals ldaho Power may have the ability to
downward ad.iust the output, subject to full compensation of potential output available.
. Map of QF Location: See attached.
o Anticipated COD: L211,12019
r permittint status: Conditional Use Permit Appllcation to Elmore County has been prepared and is being submitted'
No major obstacles are anticipated. All of the necessary local agencies will be engaged to provide comment and
feedback on the proposed project. Building permits will be obtained prior to construction. There are currently no
anticipated schedule impacts to the Q4 2019 COD due to permitting.
. qF Status: A FERC Form 556 QF Self-Certification has been submitted, see attached.
o Fuel type: The energy provided to ldaho Power will be L00% from the battery storage system. The system will be
charged from a renewable energy source such as wind, solar, biomass, etc. lnitlal designs consist of a PV solar facility
to charge the system.. Fuel source: Not applicable as the battery storage will be charged from a renewable source.
. lnterconnection: The project has prepared an SGIA interconnection application with supporting material and to be
submitted in February 2017.
. Contract term and rate option: 20-year term with "Non-tevelized Non-Fueled Rates"
Within the next ten business days and pursuant to Section 1(b) please provide Your written
notice of any deficiencies in this request or, if there are no deficiencies, pursuant to Section 1(c)
please provide ldaho Power's indicative pricing proposal.
I
)Black Mesa Energy v. lPCo - Exhibit 2 - Page 2 of 2
Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N.27th Street
Boise,Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadams. com
ere g@richardsonadams. com
Attomeys for Complainant Black Mesa Energy, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
BLACK MESA ENERGY, LLC,
Complainant,
vs.
IDAHO POWER COMPANY,
Defendant.
Case No.
FORMAL COMPLAINT
EXHIBIT 3
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)
)
)
)
)
lromiDarrington, Michael', <[e-mail]>
Prr.: Thursday, February Z3,Z0l7 at 9:4g AM
Jo.. tsrian Lynch' <[e-mail]>
$nbtece RE: Black Mcsa Energgr pricing request- resubmitted after email bounced back
Hi Brian,
Thanks for reaching out' Yes, ldaho Power received your application and will respond in accordance with schedule 73
Thank you,
Michael Darrington
Ei\i35Y i:CNi'R/{CrS -: a.;)r: r.r
'daho Power lpower Supply
uVork 208-388-594G
Email mdarrington@ idahopower.com
Black Mesa Energy v. IPCo - Exhibit 3 - Page I of I
Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (lSB No. 7454)
Richardson Adams, PLLC
515 N.27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadams. com
sre g@richardsonadams. com
Attorneys for Complainant Black Mesa Energy, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
BLACK MESA ENERGY, LLC,
Complainant,
)
)
)
)
)
)
))
Case No.
vs.FORMAL COMPLAINT
EXHIBIT 4IDAHO POWER COMPANY,
Defendant.
From: "Bearry, Christa" <CBearry@idahopower'com>
Date: Monday, February 27,2OL7 at 4:05 PM
To: peter Richardson <[e-mail]>, "'[e-mail]"' <brian@mezzdev'com>
Cc: "Walker, Donovan" <DWalker@ldahopower'com>
Subject: lpc-E-17-ol - Franklin Energy Storage one through Four, LLC, & Black Mesa Energy, LLC - ldaho Power
Company's Petition for Declaratory Order
Attached is ldaho power company's petition for Declaratory order in the above matter. The Petition was filed with the
ldaho Public Utilities Commission this afternoon'
Christa
Christa Bearry
' :'i,', A''[,i ]rr'i'ir\' "t- fr' rir\rr\\r'
ldaho Power Legal
208-388-5996
,, .,.,, [e-mail]
this transmission in error, please immediately contad the sender and destroy the material in its entirety, whetner in electronic or hard copy format' Thank You'
1
il
Black Mesa Energy v. IPCo - Exhibit 4 - Page I of 2
35ffi
February 2i. 2r'.t1 7
lllack Mcsa L.ncrgy, LL('
Brian l,ynch
P 0. Btrx 2?]l
Palos Verdes, C',4. 90274
StrN'I VIA [,mail Only [e-mail]
SUBJ['.CT l]lack Mcsa Energy. LLC Schcdule 73 Encrgy Sales Agrecment Applicatrt-rn
l\4r [.1,nch,
Idaho Powor receivcd your Schedulc 73 Quatrtying Facility l:nergy Sales Agrer.:ment Applrc:ation
(",{pplicatiort") etfective Fcbruary l.i, 2017, in which you have requested an indicativc pricirrg proposal ftrr
thc proposed 20 lv'lW tslack Mesa Energy battcry st()ragc pr(Uect. ln yuur Applir;atron. you requcst a
proposed contracting term ot 20 years and published avorded cost Rate Optron 4, Non-Lcvelized Non-Fueled
Ratcs.
ldaho Power rloes not agree that ytrur proposed pro3ect is cligiblc tbr publrshed avoided oerst Rate
Option 4, Non-Levehzed Non-Fuclcd Rates. with a l0-yerr contrirct temr. On l"ebruary 27. 2017, tdaho
Pr-rwer filcd an applrcatron to the ldaho Publrc (itrlrtres Clommissron rcquestrng a declaratory order that
detemrines tlre contract tenn and avoicled cost pricing rnethodolrgv t-rrr which yoLrr pr()posed pru.icct rnay'
hc cligiblc. Sce tPtjC Case No IP(l-E-17-01.
Il'yuu havc any questitlns, please ilr not hcsrLate to contact ms
S rncerelv/dru@
lvl ichacl f)an': n gtrrn
Fnergv Contrircts
Phone' ( 2()8 )lll8-5946
Frm ai I : rndarringtr"rtr(rf i daho po wer.coln
('c, Dunovan W'alkcr
Black Mesa Energy v. IPCo - Exhibit 4 -Page2 of 2
Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (lSB No. 7454)
Richardson Adams, PLLC
515 N. 27th Street
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadams. com
gre g@richardsonadams. c om
Attorneys for Complainant Black Mesa Energy, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
BLACK MESA ENERGY, LLC,
Complainant,
VS
IDAHO POWER COMPANY,
Defendant.
Case No
FORMAL COMPLAINT
EXHIBIT 5
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)
)
)
)
)
Frorn: Briar Ltrnch <hlynch@redwoodenerB\, com>
Date: Saturday, January L8,2024 at L2:26 PlVt
To: <energycontracts@ idahopower.com>
Cc: <[e-mail]>, <[e-mail]>, Matt Garlinghouse
<[e-mail]>, Brian Lynch <[e-mail]>
Subject: Black lVlesa Energy Pricing Request
ldaho Power -
Elack Mesa Energy LLC, reiterates its previous request for an Energy Sales Agreement pursuant to Schedule 73 as
requested on 2/tO/2O17. The project is a Qualifying Facility that will interconnect to ldaho Power's electrical system at
an interconnection point within the state of ldaho The project is an energy storage QF and qualifies for the "Other
rrojects" avoided costs as found in 1:1"8-cv-00236-REB (Franklin Energy Storage v ldaho PUC & ldaho Power).
Please find below the requested information from Schedule 73 and completed Qualifying Facility Energy Sales
Agreement Application. Each of the items from Section L of the Contracting Procedures of Schedule 73 is responded to
below. Please let me know if there are any questions.
Black Mesa Energy I
r Project Name: Black Mesa Energy 1
. Location: Black Mesa Substation, King Hill, ldaho
. Organization chart: Black Mesa Energy, LLC is wholly owned by MB MezzDev, LLC
. Generation technology: Black Mesa Energy l" is an energy storage system Qualifying Facility that provides
scheduled and dispatchable electricity. The storage system will receive IOO% of input energy from renewable
enerBy sources.
. Maximum Capacity & Net Power: 20MW-AC. See attached FERC QFSelf-Certification Form 555, which quantifies
these amounts.
. Hourly production: Attached is an 8750 of power production
. Dispatch orders: The project will provide scheduled, dispatchable power output in forward looking time
intervals ranging from 5-240 minutes pending final system design. Within these intervals ldaho Power may
have the ability to downward adjust the output, subject to full compensation of potential output available.
. Map of QF Location: See attached
. Anticipated coD: 6/1/2023
. Permitting status: Conditional Use Permit Application to Elmore County has been prepared and is being
submitted. No majorobstacles are anticipated. Allof the necessary localagencies will be engaged to provide
comment and feedback on the proposed project. Building permits will be obtained prior to construction.
There are currently no anticipated schedule impacts to the 511./2023 COD due to permitting.
t
Black Mesa Energy v. IPCo - Exhibit 5 - Page I of 27
. QF Status: A FERC Form 556 QF Self-Certification was submitted on Feb 23,2017 at docket QF17-705-000, see
attached as amended on Jan 17,2020.
r Fueltype: The energy provided to ldaho Power will be 100% from the battery storage system. The system will
be charged from a renewable energy source such as wind, solar, biomass, etc. lnitial designs consist of a PV
solar facility to charge the system.
. Fuel source: Not applicable as the battery storage will be charged from a renewable source.
r lnterconnection: The project has applied for interconnection and completed Feasibility Study at Queue #557.
r Contract term and rate option: 20-year term with "Non-Levelized Non-Fueled Rates"
Within the next ten business days and pursuant to Section 1(b) ptease provide your written notice of any deficiencies in
this request or, if there are no deficiencies, pursuant to Section 1(c) please provide ldaho Power's indicative pricing
proposal using the Published Rates.
Brian lynch
Managing Principal
{,,t u,* I ;1_11
blvnch @ redwoodenersy.com
3L0.750.7796
Ef ack Mesa Energy v. IPCo - Exhibit 5 - Page 2 of 27
From:
Sent:
To:
Cc:
Subject:
Attachments:
Brian Lynch <[e-mail] >
Saturday, .lanuary L8, 2020 1:41 PlVl
energycontracts@ idahopower.com
DWalker@ idahopower.co m; NilDarrington @ idahopower com; tVlatt Garlinghouse
Black tvlesa 2 corrected request
Schedule 73 Black mesa 212).pdf; tvlap - Black ttlesa 2[2ltf] pdf , L2x24 - Black Nrtesa
2[ 1l I rl.xlsx; form- 5 56 Black lrulesa 2[2l.pdf
ldaho Power -
Black Mesa Energy LLC, submits this request for an Energy Sales Agreement pursuant to Schedule 73. The project is a
Qualifying Facility that will interconnect to ldaho Power's electrical system at an interconnection point within the state
of ldaho. The project is an energy storage QF and qualifies for the "Other projects" avoided costs as found in 1:18-cv-
00236-REB (Franklin Energy Storage v ldaho PUC & ldaho Power).
Please find below the requested information from Schedule 73 and completed Qualifying Facility Energy Sales
Agreement Application. Each of the items from Section 1 of the Contracting Procedures of Schedule 73 is responded to
below. Please let me know if there are any questions.
Black Mesa Energy 2
Project Name: Black Mesa Energy 2
Location: Black Mesa Substation, King Hill, ldaho
Ortanization chart: Black Mesa Energy, LLC is wholly owned by MB MezzDev, LLC
Generation technology: Black l\r1esa Energy 2 is an energy storage Qualifying Facility that provides scheduled and
dispatchable electricity. The storage system will receive LOOY" of input energy from renewable energy
so urces.
Maximum Capacity & Net Power: 2O[VW-AC. See attached FERC QF Self-Certification Form 556, which
quantifies these amounts.
Hourly production: Attached is an 8760 of power production
Dispatch orders: The project will provide scheduled, dispatchable power output in forward looking time
intervals ranging from 5-240 minutes pending final system design. Within these intervals ldaho Power may
have the ability to downward adjust the output, subject to full compensation of potential output available.
Map of QF Location: See attached.
Anticipated COD: 5 I L/2023
Permitting status: Conditional Use Permit Application to Elmore County has been prepared and is being
submitted- No major obstacles are anticipated All of the necessary local agencies will be engaged to provide
comment and feedbacl< on the proposed project. Building permits will be obtained prior to construction,
There are currently no anticipated schedule impacts to the 61L12023 COD due to permitting.
QF Status: A FERC Form 556 QF Self-Certification is attached.
Fuel type: fhe energy provided to ldaho Power will be 100% from the battery storage system. The system willbe
charged from a renewable energy source such as wind, solar, biomass, etc. lnitialdesigns consistof a PV solar
facility to charge the system
Fuel source: Not applicable as the battery storage will be charged from a renewable source.
lnterconnection: The project has applied for interconnection and completed Feasibility Study at Queue $557
Contract term and rate option: 20-year term with "Non-Levelized Non-Fueled Rates"
Black Mesa Energy v. lPCo - Exhibit 5 - Page 3 of 27
Within the next ten business days and pursuant to Section 1(b) please provide your written notice of any deficiencies in
this request or, if there are no deficiencies, pursuant tr: Section 1(c) please provide ldaho Power's indicative pricing
proposal using the Published Rates.
S","o l,yrri;h
Managing Principal
*
blvnch@ redwoodenercv.com
314.75A.7796
)
Black Mesa Energy v. lPCo - Exhibit 5 - Page 4 of 27
ldaho Power Company First Revised Sheet No. 73-9
Cancels
|.P.U.C. No. 29. Tariff No. 101 Orioinal Sheet No. 7&9
IDAHO PUBLIC UTILITIES COMMTSSIONApproved Effective
March 20,2017 April 15,2017
Diane M. Hanian Secretary
SCHEDULE 73
COGENERATION AND SMALL POWER PRODUCTIQN SCHEDULE - IDAHO
(Continued)
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
ldaho Power Qualifying Facility (QF) contact information
Mailing Address:
Physical Address:
Telephone number:
E-MailAddress:
Attn: Energy Contracts, P O Box 70 Boise, lD 83702
1221W.ldaho Street, Boise, lD 83703
208-388-6070
energycontracts@ idaho power. co m
Preamble and lnstructions
All generatlon facilities that qualify pursuant to ldaho Power Company Schedule 73 for a QF Energy
Sales Agreement and wish to sell energy from their facility to ldaho Power must complete the following
information and submit this Application by hand delivery, mailor E-mail to ldaho Power.
Upon receipt of a complete Application, ldaho Power shall process this request for a QF Energy Sales
Agreement pursuant to ldaho Power Company Schedule 73.
Qualifying Facility lnformation
Prooosed Proiect
Name of Facility:
Black Mesa Energy 2
Resource Type: (r.e. wind, solar, hydro, stcl' Battery Storage
Facility Location: GPS Coordinates' 42'907, -115'207
Nearest City or landma Glenns Ferry, ldaho
County and State Elmore County, ldaho
Map of Facility, including proposed interconnection point. (See Attached)
Anticipated commencement date of energy deliveries to ldaho Power:6t1t2023
Facility Nameplate Capacity Rating (kW):
Facility Maximum Output Capacity (kW):
Station Service Requirements (kW):
Facility Net Delivery to ldaho Power (kW):
Faci lity i nterconnection status:
Proposed Contracting Term (cannot exceed 20 years):
Requested Rate Option (details provided in Schedule 73)
20,000
20,000
20,000
Queue#557, ln-progress
20 years
Rate Option No. 4 "Non-Levelized
Non-Fuetd RatdS"Does the Facility have the ability to respond to dispatch
orders from ldaho Power Company (Yes or No):
200
Yes
IDAHO
lssued - March 15,2017
Effective - April 15,2017
lssued by IDAHO POWER COMPANY
Timothy E. Tatum, Vice President, Regutatory Affairs
1221 West ldaho Street, Boise, ldaho
Black Mesa Energy v. lPCo - Exhibit 5 - Page 5 of 27
ldaho Power Company tDAHo pUBLtc uTtLtTtEs coggtsstoNApproved Effective|.P.U.C. No. 29. Tariff No. 101 OrioinalSheet No. 73-10 Jan.8, 2015 Jan. t, 2015
Per O.N. 33197
SCHEDULE 73 Jean D. JewellSecretary
COGENERATION AND SMALL POWER PRODUCTION SCHEDULE - IDAHO
(Continued)
QUALIFYING FACILITY ENERGY SALES AGREEMENT APPLICATION
(Continued)
Please include the following attachments:
r' Hourly estimated energy deliveries (kW) to ldaho Power for every hour of a one year period
/ List of acquired and outstanding Qualifying Facility permits, including a description of the status
and timeline for acquisition of any outstanding permits.o At the minimum a FERC issued QF certificate/self-certification is required and/or
evidence that Facility will be able to obtain a Qualifying Facility certificate.
,/ lf the Facility will require fuel be transported to the Facility (i.e. natural gas pipelines, railroad
transportation, etc), evidence of ability to obtain sufficient transportation rights to operate the
Facility at the stated Maximum Output Amount.
/ lf the Facility will not be interconnecting directly to the ldaho Power electrical system, evidence
that the Facility will be able to interconnect to another utility's electrical system and evidence
that the Facility will be able to obtain firm transmission rights over all required transmission
providers to deliver the Facility's energy to ldaho Power.
Owner Information
Owner / Company Black Mesa Energy, LLC
Contact
Address
Brian Lynch, Manager
P.O. Box 2731
City Palos Verdes CA 90274StateZip
Telephon
E-mail:
310-750-7796
bly nc [e-mail]
Applicant Signature
I hereby certify that, to the best of my knowledge, all information provided in this Qualifying
Facility Energy Sales Agreement application is true and correct.
Forar* L4E4n
Signature
Brian Lynch
/
Print Name
'u17t2020
Date
IDAHO
lssued per Order No. 33197
Effective - January 1, 2015
lssued by IDAHO POWER COMPANY
Gregory W Said, Vice President, Regulatory Affairs
1221 West ldaho Street, Boise, ldaho
Black Mesa Energy v. lPCo - Exhibit 5 - Page 6 of 27
a
o
o
Black Mesa
Energy 2
20 MW Energy Storage &
Renewable Energy
Lat/Long: 42.908, -115.208
Location: Elmore County, lD
Point of Delivery:
ldaho Power Black
Mesa Substatlon
Black Mesa
Energy 2 Project
Project Location
Black Mesa Energy v. [PCo - Exhibit 5 - Page 7 of 27
FEDERAL ENERGY REGULATORY COMMISSION
WASHINGTON, DC
OMB Control # 1902-0075
Expiration 06/30/2019
Fo rm 5 56 ;,"jil:i:::::H:l?j:,'#:::il1;'',s'[a'lusfora smarr Power
General
Questions about completing this form should be sent to l-rrrr ; r6,n_iltr,. 1ov. lnformation about the Commission's QF
program, answers to frequently asked questions about QF requirements or completing this form, and contact information for
QFprogramstaffareavailableattheCommission'sQFwebsite,'!',i.,,i/i,,i .,-jr,, i.lr ll'reqor*ttion'sQFwebsitealso
provides links to the Commission's QF regulations (18 C.F.R. S 1 3I .80 and Part 292), as well as other statutes and orders
pertaining to the Commission's QF prollram.
Who Must File
Any applicant seeking QF status or recertification of QF status for a generating facility with a net power production capacity
(as determined in lines 7a through 79 below) greater than 1000 kW must file a self-certification or an application for
Commission certification of QF status, which includes a properly completed Form 556. Any applicant seeking QF status for a
generating facility with a net power production capacity 'l 000 kW or less is exempt from the certification requirement, and is
therefore not required to complete or file a Form 556. See 18 C.F.R. 5 292.203.
How to Complete the Form 556
This form is intended to be completed by responding to the items in the order they are presented, according to the
instructions given. lf you need to back-track, you may need to clear certain responses before you will be allowed to change
other responses made previously in the form. lf you experience problems, click on the nearest help button ( 12 ) for
aSSistanCe, or contact CommiSSiOn staff at r.9rrt i1or9f rrl .r;r:v.
Certain lines in this form will be automatically calculated based on responses to previous lines. with the relevant formulas
shown. You must respond to all of the previous lines within a section before the results of an automatically calculated field
will be displayed. lf you disagree with the results of any automatic calculation on this form, contact Commission staff at
ittrrl r r(i(ilfer(..gov to discuss the discrepancy before filing.
You must complete all lines in this form unless instructed otherwise. Do not alter this form or save this form in a different
format. lncomplete or altered forms, or forms saved in formats other than PDF, will be rejected.
How to File a Completed Form 556
Applicants are required to file their Form 556 electronically through the Commission's eFiling website (see instructions on
page 2). By filing electronically, you will reduce your filing burden, save paper resources, save postage or courier charges,
help keep Commission expenses to a minimum, and receive a much faster confirmation (via an email containing the docket
number assigned to your facility) that the Commission has received your filing.
lf you are simultaneously filing both a waiver request and a Form 556 as part of an application for Commission certification,
see the "Waiver Requests" section on page 3 for more information on how to file.
Paperwork Reduction Act Notice
This form is approved by the Office of Management and Budget. Compliance with the information requirements established
by the FERC Form No.556 is required toobtain or maintain statusasa QF.See 18C.F.R.513.l.80and Part 292.An agencymay
not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently
valid OMB control number. The estimated burden for completing the FERC Form No. 556, including gathering and reporting
information, is as follows: 3 hours for self-certification of a small power production facility, 8 hours for self-certifications of a
cogeneration facility, 6 hours for an application for Commission certification of a small power production facility, and 50 hours
for an application for Commission certification of a cogeneration facility. Send comments regarding this burden estimate or
any aspect of this collection of information, including suggestions for reducing this burden, to the following: lnformation
Clearance Officer, Office of the Executive Director (ED-32), Federal Energy Regulatory Commission, 888 First 5treet N.E.,
Washington, OC 20426 (DataClearancers)fer ,;trv); and Desk Officer for FERC, Office of lnformation and Regulatory Affairs,
Office of Management and Budget, Washington, DC 20503 (oira_ subrnlssiorrr.,, )(Trrr.cop.qov). lnclude the Control No.
1902 0075 in any correspondence.
Black Mesa Energy v. IPCo - Exhibit 5 - Page 8 of 27
FERC Form 556 Page 2 - lnstructions
Electronic Filing (eFiling)
To electronically file your Form 556, visit the Commission's QF website at www.ferc.qovlQF and click the eFiling link.
lf you are eFiling your first document, you will need to register with your name, email address, mailing address, and phone
number. lf you are registering on behalf of an employer, then you will also need to provide the employer name, alternate
contact name, alternate contact phone number and and alternate contact email.
Once you are registered, log in to eFiling with your registered email address and the password that you created at
registration. Follow the instructions. When prompted, select one of the following QF-related filing types, as appropriate,
from the Electric or General filing category.
Filing category Filing Type as listed in eFiling Description
Electric
(Fee) Application for Commission Cert. as Cogeneration QF
Use to submit an application for
Commission certification or
Commission recertification of a
cogeneration facility as a QF.
(Fee) Application for Commission Cert. as Small Power QF
Use to submit an application for
Com mission certification or
Commission recertification of a
small power production facility as a
QF.
Self-Certification Notice (QF, EG, FC)
Use to submit a notice of self-
certification of your facility
(cogeneration or small power
production) as a QF.
Self-Receftiflcation of Qua lifying Facility (QF)
Use to submit a notice of self-
recertification of your facility
(cogeneration or small power
production) as a QF.
Supplementa I lnformation or Request
Use to correct or supplement a
Form 556 that was submitted with
errors or omissions, or for which
Commission staff has requested
additional information. Do not use
this filing type to repoft new
changes to a facility or its
ownership; rather, use a self-
recertification or Commission
recertification to report such
changes.
General
Use to submit a petition for
declaratory order granting a waiver
of Commission QF regulations
pursuant to 18 C.F.R. SS 292.204(a)
(3)and/or 292.205(cl. A Form 556 is
not reguired for a petition for
declaratory order un less
Commission recertification is being
requested as part of the petitlon.
(Fee) Petition for Declaratory Order (not under FPA Part I )
You will be prompted to submit your filing fee, if applicable, during the electronic submission process. Filing fees can be paid
via electronic bank account debit or credit card.
During the eFiling process, you will be prompted to select your flle(s) for upload from your computer.
Black Mesa Energy v. IPCo - Exhibit 5 - Page 9 of 27
FERC Form 556 Page 3 - lnstructions
Filing Fee
No filing fee is required if you are submitting a self-certification or self-recertification of your facility as a QF pursuant to 18
C.F.R. S 79?.207(a).
A filing fee is required if you are filing either of the following:
(1) an apptication for Commission certification or recertification of your facility as a QF pursuant to 18 C.F.R. 5 292.207(bl, or
(2) a petition for declaratory order granting waiver pursuant to 18 C.F.R. SS 292.204(a)(3) and/or 292.205(cl.
The current fees for applications for Commission certifications and petitions for declaratory order can be found by visiting the
Commission's QF website at ryww f41', gt;v,Q[ and clicking the Fee Schedule link.
You will be prompted to submit your filing fee, if applicable, during the electronic filing process described on page 2.
Required Notice to Utilities and State Regulatory Authorities
Pursuant to 18 C.F.R. 5 292.2A7G)(ii), you must provide a copy of your self certification or request for Commission certification
to the utilities with which the facility will interconnect and/or transact, as well as to the State regulatory authoritles of the
states in which your facility and those utilities reside. Links to information about the regulatory authorities in various states
can be found by visiting the Commission's QF website at www.h' r..gov,'Qt' and clicking the Notice Requirements link.
What to Expect From the Commission After You File
An applicant filing a Form 556 electronically will receive an email message acknowledging receipt of the filing and showing
the docket number assigned to the filing. Such email is typically sent within one business day, but may be delayed pending
confirmation by the Secretary of the Commission of the contents of the filing.
An applicant submitting a self-certification of QF status should expect to receive no documents from the Commission, other
than the electronic acknowledgement of receipt described above. Consistent with its name, a self-certification is a
certification by the applicant itse/f that the facility meets the relevant requirements for QF status, and does not involve a
determination by the Commission as to the status of the facility. An acknowledgement of receipt of a self-certification, in
particular, does not represent a determination by the Commission with regard to the QF status of the facility. An applicant
self-certifying may, however, receive a rejection, revocation or deficiency letter if its application is found, during periodic
compliance reviews, not to comply with the relevant requirements.
An applicant submitting a request for Commission certification will receive an order either granting or denying certification of
QF status, or a letter requesting additional information or rejecting the application. Pursuant to l8 C.F.R. 5 292.207(bX3), the
Commission must act on an application for Commission certification within 90 days of the later of the filing date of the
application or the filing date of a supplement, amendment or other change to the application.
Waiver Requests
18 C.F.R. 5 292.20a(aX3) allows an applicant to request a waiver to modifo the method of calculation pursuant to l8 C.F.R. 5
292.204(a)(2)todetermineiftwofacilitiesareconsideredtobelocatedatthesamesite,forgoodcause. 18C.F.R.S292.205(c)
allows an applicant to request waiver of the requirements of l8 C.F.R. SS 292.205(a) and (b) for operating and efficiency upon
a showing that the facility will produce significant energy savings. A request for waiver of these requirements must be
submitted as a petition for declaratory order, with the appropriate filing fee for a petition for declaratory order. Applicants
requesting Commission recertification as part of a request for waiver of one of these requirements should electronically
submit their completed Form 556 along with their petition for declaratory order, rather than filing their Form 556 as a
separate request for Commission recertification. Only the filing fee for the petition for declaratory order must be paid to
cover both the waiver request and the request for recertification if such reguests are made simultaneously.
18 C.F.R. S 292.203(dX2) allows an applicant to request a waiver of the Form 556 filing requirements, for good cause.
Applicants filing a petition for declaratory order requesting a waiver u nder 1 8 C.F.R. S 292.203(d)(21do not need to complete
or submit a Form 556 with their petition.
Black Mesa Energy v. lPCo - Exhibit 5 - Page l0 of 27
FERC Form 556 Page 4 - lnstructions
Geog ra p hic Coord inates
lf a street address does not exist for your facility, then line 3c of the Form 556 requires you to report your facility's geographic
coordinates (latitude and longitude). Geographic coordinates may be obtained from several different sources. You can find
links to online services that show latitude and longitude coordinates on online maps by visiting the Commission's QF
webpage at ,,vw,,v r(.ri..gov 'tll: and clicking the Geographic Coordinates link. You may also be able to obtain your geographic
coordinates from a GPS device, Google Earth (available free at http://earth.googlerorn), a property survey, various
engineering or construction drawings, a property deed, or a municipal or county map showing property lines.
Filing Privileged Data or Critical Energy lnfrastructure lnformation in a Form 556
The Commission's regulations provide procedures for applicants to either (l ) request that any information submitted with a
Form 556 be given privileged treatment because the information is exempt from the mandatory public disclosure
requirements of the Freedom of lnformation Act, 5 U.S.C. 5 552, and should be withheld from public disclosure; or (2) identify
any documents containing critical energy infrastructure information (CEll) as defined in l8 C.F.R. q 388.1 l3 that should not be
made public.
lf you are seeking privileged treatment or CEll status for any data in your Form 556, then you must follow the procedures in 18
C.F.R.5 388.112. See www.fert.govihelprtilrrtg grride/tile ceri.asp for more information.
Among other things (see I8 C.F.R. 5 388.1 12 for other requirements), applicants seeking privileged treatment or CEll status for
data submitted in a Form 556 must prepare and file both (1) a complete version of the Form 556 (containing the privileged
and/or CEll data), and (2) a public version of the Form 556 (with the privileged and/or CEll data redacted). Applicants
preparing and filing these different versions of their Form 556 must indicate below the security designation of this version of
their document. lf you are not seeking privileged treatment or CEll status for any of your Form 556 data, then you should not
respond to any of the items on this page.
Non-Public: Applicant is seeking privileged treatment and/or CEll status for data contained in the Form 555 lines
I indicated below. This non-public version of the applicant's Form 556 contains all data, including the data that is redacted
in the (separate) public version of the applicant's Form 556.
Public (redacted): Applicant is seeking privileged treatment and/or CEll status for data contained in the Form 556 lines
I indicated below. This public version of the applicants's Form 556 contains all data except for data from the lines
indicated below, which has been redacted.
Privileged: lndicate below which lines of your form contain data for which you are seeking privileged treatment
Critical Energy lnfrastructure lnformation (CEll): lndicate below which lines of your form contain data for which you are
seeking CEll status
The eFiling process described on page 2 will allow you to identify which versions of the electronic documents you submit are
public, privileged and/or CEll. The filenames for such documents should begin with "Public", "Priv'', or "CEll", as applicable, to
clearly indicate the securlty designation of the file. Both versions of the Form 556 should be unaltered PDF copies of the Form
556, as available for download from ,alrw ir:ir .;r-r',' ()i . To redact data from the public copy of the submittal, simply omit the
relevant data from the Form. For numerical fields, leave the redacted fields blank. For text fields, complete as much of the
field as possible, and replace the redacted portions of the field with the word "REDACTED'' in brackets. Be sure to identify
above all fields which contain data for which you are seeking non-public status.
The Commission is not responsible for detecting or correcting filer errors, including those errors related to security
designation. lf your documents contain sensitive information, make sure they are filed using the proper security designation.
Black Mesa Energy v. IPCo - Exhibit 5 - Page I I of 27
FEDERAL ENERGY REGULATORY COMMISSION
WASHINGTON, DC
OMB Control # 1902 0075
Expiration 06/30/2019
F o rm 5 5 6 ;:JI[il::::H:l?::,'#::illQF) status for a smarr Power
1,'
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co
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o
c
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I m lf any of the following three statements is true, check the box(es) that describe your situation and complete the form
to the extent possible, explaining any special circumstances in the Miscellaneous section starting on page '19.
,-, The instant facility complies with the Commission's QF requirements by virtue of a waiver of certain regulations! previously granted by the Commission in an order dated (specifo any other relevant waiver
orders in the Miscellaneous section starting on page 19)
,--., The instant facility would comply with the Commission's QF requirements if a petition for waiver submittedu concurrently with this application is granted
Ihe instant facility complies with the Commission's regulations, but has special circumstances, such as the
f employment of unique or innovative technologies not contemplated by the structure of this form, that make
the demonstration of compliance via this form difficult or impossible (describe in Misc. section starting on p. 19)
la Full name of applicant (legal entity on whose behalf qualifying facility status is sought for this facility)
B La,:k Mesa Enerqy, LLC
1b Applicant street address
P. O. Box 2 7.1 L
1c City
l'l i ,r: '"/: r ll .;
td State/province
le Postal code
9021 4
I f Country (if not United States)1g Telephone number
il.tl-751--t t'1 .)
t h Has the instant facility ever previously been certified as a QF? Yes f No X
ti lf yes, provide the docket numberof the last known QF filing pertaining to this facility: QF
1j Under which certification process is the applicant making this filing?
e Notice of self-certification - Application for Commission certification (requires filing6 (r"" note below) L--l fee; see "Filing Fee" section on page 3)
Note: a notice of self-certification is a notice by the applicant itself that its facility complies with the requirements for
QF status. A notice of self-certification does not establish a proceeding, and the Commission does not review a
notice of self-certification to verifu compliance. See the "What to Expect From the Commission After You File"
section on page 3 for more information.
tk What type(s) of QF status is the applicant seeking for its facility? (check allthat apply)
{ Qualifying small power production facility status I Qualifying cogeneration facility status
I I What is the purpose and expected effective date(s) of this filing?
)( Original certification; facility expected to be installed by \OlL / ?J* and to begin operation on 12 i L / 22
Change(s) to a previously certified facility to be effective on
(identify type(s) of change(s) below, and describe change(s) in the Miscellaneous section starting on page 19)
Name change and/or other administrative change(s)
Change in ownership
Change(s) affecting plant equipment, fuel use, power production capacity and/or cogeneration thermal output
Supplement or correction to a previous filing submitted on
(describe the supplement or correction in the Miscellaneous section stafting on page 19)
Black Mesa Energy v. IPCo - Exhibit 5 - Page 12 of 27
t,
2a Name of contact person
tsrr,rn Lr,,:,,:h
2b Telephone number
il0-/:O-/l'1 6
2c Which of the following describes the contact person's relationship to the applicant? (check one)
ffi Applicant (selfl ! Employee, owner or partner of applicant authorized to represent the applicant
f] f mployee of a (ompany affiliated with the applicant authorized to represent the applicant on this matter
! Lawyer, consultant, or other representative authorized to represent the applicant on this matter
2d Company or organization name (if applicant is an individual, check here and skip to line 2e)
Rlack Mcsa Energy, LLC
2e \i'reera,l(-lres;,rt;,lni,),.)\r\ppli(.lnt,(he(khg,,5. l,l,i.kiprolrrrelarZ
2l lt,t'.t 2g rttt;: 0r()\/'|lr(,
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.9
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2h Poif,ir : rrt1e 2i i-{lrliltry iif ,r()t t..lilitd(1 !IdIrts)
3a Facility name
BLi:< Mcit Un,tlJ)'-
3b ilr,t,:t .lclr:lrpss r:l I jtr:tat tr.Jrlr":s; t.iocl rt,..;[:]xr9i for the f,:r rliti . hor k ilqr1,.1 rnrl ;kip t,t lint tr lf*"{
3c Geographic coordinates: lf you indicated that no street address exists for your facility by checking the box in line 3b,
then you must specifr the latitude and longitude coordinates of the facility in degrees (to three decimal places). Use
the following formula to convert to decimal degrees from degrees, minutes and seconds: decimal degrees =
degrees + (minutes/60) + (seconds/3600). See the "Geographic Coordinates" section on page 4 for help. lf you
provided a street address for your facility in line 3b, then specifying the geographic coordinates below is optional.
fl East (+)
Longitude fr west (_)
iL:.L3l degrees Latitude ,*ffilll,4'2.909 degrees
3d City (if unincorporated, check here and enter nearest city) [
GIenns Ferry
3e State/province
Idaho
C
.9
|Euo
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co
t!U
{=
o
=.=
\J(tru-3f County (or check here for independent city)
li lrnore
39 Country (if not United States)
ldentifo the electric utilities that are contemplated to transact with the facility
4a ldentify utility interconnecting with the facility
I.l.rLi',r P..)we r Compan'7
4b rdr,rrtiiy rif llt..',, l)r'()\/lrl.tt(J ,,r1ir,.,61111r,.1 )r,r,/!( P,)[, fp1 1 11p1p '1,11;1,f i. ]
4c ldentifiT utilities purchasing the useful electric power output or check here if none
ldaho Power Corrpany
FERC Form 556 Page6-All Facilities
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lPCo - Exhibit 5 - Page 13 of 27Black Mesa Energy v
5a Direct ownership as of effective date or operation date: ldentify all direct owners of the facility holding at least 10
percent equity interest. For each identified owner, also (1) indicate whether that owner is an electric utility, as
defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22D, or a holding company, as defined in section
I 262(B) of the Public Utility Holding Company Act of 2005 (42 U.5.C. 1 645 t (8)), and (2) for owners which are electric
utilities or holding companies, provide the percentage of equity interest in the facility held by that owner. lf no
direct owners hold at least 10 percent equity interest in the facility, then provide the required information for the
two direct owners with the largest equity interest in the facility'
Erectric utirity or rf yes,
holding 7o equity
Full legat names of direct owners company interest
'1 I t4ir ;1n,, -'.,.: ,.,,:, ,YesI
Yesf
Yes f
Yes f,
Yes I
Yesf
Yes fl
Yes I
Yes f
Yes I
NoX
NoI
NoE
NoI
NoE
N,E
NoI
NoE
NoE
NoE
2)
3)
4)
s)
6)
7)
8)
e)
10)
f Checkhereand continueintheMiscellaneoussectionstartingonpage l9if additional spaceisneeded
coi3tE
a)o-o
!C(t,
.g
VI
oC
tso
FERC Form 556 PageT-AllFacilities
5b Upstream (i.e., indirect) ownership as of effective date or operation date: ldentifo all upstream (i.e., indirect) owners
of the facility that both (1) hold at least 10 percent equity interest in the facility, and (2) are electric utilities, as
defined in section 3(22) of the Federal Power Act (16 U.s.C. 796(22)), or holding companies, as defined in section
1262(8\ of the Public Utility Holding Company Act of 2005 (42 U.S.C. 16451(8)). Also provide the percentage of
equity interest in the facility held by such owners. (Note that, because upstream owners may be subsidiaries of one
another, total percent equity interest reported may exceed 100 percent.)
Check here if no such upstream owners exist. ffi
Full legal names of electric utility or holdinq com pany upstream owners
% equity
interest
r,
1)
2)
3)
4)
s)
6)
7)
8)
e)
10)
Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed
5c ldentrfy the facility operator
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Black Mesa Energy v. IPCo - Exhibit 5 - Page 14 of 27
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FERC Form 556 PageS-AllFacilities
6b lf you specified "waste" as the primary energy input in line 6a, indicate the type of waste fuel used: (check one)
l] Waste fuel listed in 18 C.F.R. 5 292.202(b) (specifu one of the following)
! Anthracite culm produced prior to July 23, 1985
- Anthraciterefusethathasanaverageheatcontentof6,000Btuorlessperpoundandhasanaverage! ash content of 45 percent or more
,- Bituminous coal refuse that has an average heat content of9,500 Btu per pound or less and has an
- average ash content of 25 percent or more
Top or bottom subbituminous coal produced on Federal lands or on lndian lands that has been
r-r determined to be waste by the United States Department of the lnterior's Bureau of Land Management
" (BLM) or that is located on non-Federal or non-lndian lands outside of BLM's jurisdiction, provided that
the applicant shows that the latter coal is an extension of that determined by BLM to be waste
Coal refuse produced on Federal lands or on lndian lands that has been determined to be waste by the
n 8LM or that is located on non- Federal or non-lndian lands outside of BLM's jurisdiction, provided that
applicant shows that the latter is an extension of that determined by BLM to be waste
- Lignite produced in association with the production of montan wax and lignite that becomes exposed! a, a result of such a mining operation
! Gaseous fuels (except natural gas and synthetic gas from coal) (describe on page I9)
Waste natural gas from gas or oil wells (describe on page l9 how the gas meets the requirements of 18
E C.F.R. S 2.400 for waste natural gas; include with your filing any materials necessary to demonstrate
compliance with 18 C.F.R. 5 2.400)
! Materials that a government agency has certified for disposal by combustion (describe on page 19)
[] Heat from exothermic reactions (describe on page 19) ! Residual heat (describe on page 19)
f] Used rubber tires ! Plastic materials ! Refinery off-gas I Petroleum coke
Other waste energy input that has little or no commercial value and exists in the absence of the qualifying
f] facility industry (describe in the Miscellaneous section starting on page l9; include a discussion of the fuel's
lack of commercial value and existence in the absence of the qualifying facility industry)
6c Provide the average energy input, calculated on a calendar year basis, in terms of Btu/h for the following fossil fuel
energy inputs, and provide the related percentage of the total average annual energy input to the facility (18 C.F.R. 5
292.2020)\. For any oil or natural gas fuel, use lower heating value (18 C.F.R. S 292.202(m)).
Annual average energy Percentage oftotal
Fuel jlP"t for specified fuel annual ene
ural gas rt Btu/hl
I
l-based fuels
, ')b
t: o4t0 Btu/h
rt Btu/h 01)
6a Describe the primary energy input: (check one main category and, if applicable, one subcategory)
f Biomass (specify) f Renewable resources (specifu) [ Geothermal
f Landfill gas I Hydro power - river f Fossil fuel (specify)
! Manure digester gas E Hydro power - tidal E Coal (not waste)
! Municipal solid waste I Hydro power - wave E Fuel oil/diesel
fl Sewage digester gas I Solar - photovoltaic I Natural gas (not waste)
! Wood ! Solar - thermal ,_ Other fossil fuel
fl other biomass (describe on page 19) [ wind " (describe on page 19)
f waste (specify rype betow in tine 6b) x ?rlr;ffi::f#J:"1'"" I other (describe on pase 1e)
Black Mesa Energy v. IPCo - Exhibit 5 - Page l5 of 27
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FERC Form 556 Page9-AllFacilities
7h Description of facility and primary components: Describe the facility and its operation. ldentify all boilers, heat
recovery steam generators, prime movers (any mechanical equipment driving an electric generator), electrical
generators, photovoltaic solar equipment, fuel cell equipment and/or other primary power generation equiprnent
used in the facility. Descrlptions of components should include (as applicable) specifications of the nominal
capacities for mechanrcal output, electrical output, or steam generation of the identified equipment. For each piece
of equipment identified, clearly indicate how many pieces of that type of equipment are included in the pldnt, and
which components are normally operating or normally in standby mode. Provide a description of how the
components operate as a system. Applicants for cogeneration facilities do not need to describe operations of
systems that are clearly depicted on and easily understandable from a cogeneration facility's attached mass and
heat balance diagram: however, such applicants should provide any necessary description needed to understand
thesequential operationofthefacilitydepictedintheirmassandheatbalancediagram. lfadditional spaceis
needed, continue in the Miscellaneous section starting on page 19.
llre p:.i:ili :):lsl.st.j :[ -l:. +rL-.(';'/ j".':)i-:i'J!.J1':ir-jrit j..:ii['y'in'.7 !-3':rlir'1 pLr:,'i'1 ii-'7
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lndicate the maximum gross and maximum net electric power ploduction capacity of the facility at the point(s) of
delivery by completing the worksheet below. Respond to all items. lf any of the parasitic loads and/or losses identified in
lines 7b through 7e are negligible, enter zero for those lines.
). l,(:i.)1) kW
7a The maximum gross power production capacity at the terminals of the individual generator(s)
under the most favorable anticipated design conditions
-i) kw
7b Parasitic station power used at the facility to run equipment which is necessary and integral to
the power production process (boiler feed pumps, fans/blowers, office or maintenance buildings
directly related to the operation of the power generating facility, etc.). lf this facility includes non-
power production processes (for instance, power consumed by a cogeneration facility's thermal
host) , do not include any power consumed by the non-power production activities in your
reported parasitic station power.
4 1,1 kW
7c Electrical losses in interconnection transformers
,)2t kw7d Electrical losses in AC/DC conversion equipment, if any
,,a'36 kW
7e Other interconnection losses in power lines or facilities (other than transformers and AC/DC
conversion equipment) between the terminals of the generator(s) and the point of interconnection
with the utility
7f Total deductions from qross power production capacity =7b + 7c + 7d + 7e
t<,ti
79 Maximum net power production capacity = 7a - 7f
Black Mesa Energy v. IPCo - Exhibit 5 - Page 16 of 27
FERC Form 556 Page 10 - Small Power Production
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lnformation Required for Small Power Production Facility
tf you indicated in line 1 k that you are seeking qualifying small power prod uction facility status for your facility, then you
must respond to the items on this Otherwise, skip 10.
Pursuant to l8 C.F.R. 5 292.204(a), the power production capacity of any small power production facility, together
with the power production capacity of any other small power production facilities that use the same energy
resource, are owned by the same person(s) or its affiliates, and are located at the same site, may not exceed 80
megawatts. To demonstrate compliance with this size limitation, or to demonstrate that your facility is exempt
from this size limitation under the Solar, Wind, Waste, and Geothermal Power Production lncentives Act of '1990
(Pub. L. 101 -575, I 04 stat. 2834 (1 990) as omended by Pu b. L. 1 02-46, 'l 05 Stat. 249 (199111!,, respond to I ines 8a
through 8e below (as applicable).
8e lf you answered No in line 8d, indicate whether reasonable diligence was exercised toward the completion of
the facility, taking into account all factors relevant to construction? Yes No lf you answered Yes, provide
a brief narrative explanation in the Miscellaneous section starting on page 19 of the construction timeline (in
particular, describe why construction started so long after the facility was certified) and the diligence exercised
toward compietion of the facility.
Pursuant to '18 C.F.R.5 292.204(b), qualifoing small power production facilities may use fossil fuels, in minimal
amounts, for only the following purposes: ignition; start-up; testing; flame stabilization; control use; alleviation or
prevention of unanticipated equipment outages; and alleviation or prevention of emergencies, directly affecting
the public health, safety, or welfare, which would result from electric power outages. The amount of fossil fuels
used for these purposes may not exceed 25 percent of the total energy input of the facility during the 1 2-month
period beginning with the date the facility first produces electric energy or any calendar year thereafter.
9a Certification of compliance with l8 C.F.R. 5 292.204(b) with respect to uses of fossil fuel:
f, Applicant certifies that the facility will use fossil fuels exclusively for the purposes listed above
9b Certification of compliance with 18 C.F.R. 5 292.204(bl with respect to amount of fossil fuel used annually:
Applicant certifies that the amount of fossil fuel used at the facility will not, in aggregate, exceed 25
[] percent of the total energy input of the facility during the 1 2-month period beginning with the date the
facility first produces electric energy or any calendar year thereafter.
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8a ldentifo any facilities with electrical generating equipment located within 1 mile of the electrical generating
equipment of the instant facility, and for which any of the entities identified in lines 5a or 5b, or their affiliates, holds
at least a 5 percent equity interest.
Check here if no such facilities exist. ffi
Facility location Root docket # Maximum net power
QF.KW
QF.KW
QF-KW
Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed
(city or county, state) _Common owner(s)production capacity
1)
2)
3)
(if any)
8b The 5olar, Wind, Waste, and Geothermal Power Production lncentives Act of 1990 (lncentives Act) provides
exemption from the size limitations in 18 C.F.R. 5 292.204(a) for certain facilities that were certified prior to 1995.
Are you seeking exemption from the size limitations in 18 C.F.R. 5 292.204(a) by virtue of the lncentives Act?
f Yes (continue at line 8c below) [ lto {stip lines 8c through 8e)
8c Was the original notice of self-certification or application for Commission certification of the facility filed on or
before December 31, 1994? Yes No
8d Did construction of the facility commence on or before December 3"1 ,1999? Yes No
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Black Mesa Energy v. IPCo - Exhibit 5 - Page 17 of 27
FERC Form 556 Page 1l -Cogeneration Facilities
!nformation Required for Cogeneration Facility
lf you indicated in line I k that you are seeking qualifying cogeneration facility status for your facility, then you must respond
to the items on ltth 13. Otherwise,ltrh r3
l0b To help demonstrate the sequential operation of the cogeneration process, and to support compliance with
other requirements such as the operating and efficiency standards, include with your filing a mass and heat
balance diagram depicting average annual operating conditions. This diagram must include certain items and
meet certain requirements, as described below. You must check next to the description of each requirement
below to ceftify that you have complied with these requirements.
Check to certifo
compliance with
indicated requirement Requirement
Diagram must show orientation within system piping and/or ducts of all prime movers,
heat recovery steam generators, boilers, electric generators, and condensers (as
applicable), as well as any other primary equipment relevant to the cogeneration
process.
Any average annual values required to be reported in lines l0b, l2a, 13a, 13b, I 3d, 13f,
14a, 15b, 15d and/or 1 5f must be computed over the anticipated hours of operation.
Diagram must specifiT all fuel lnputs by fuel type and average annual rate in Btu/h. Fuel
for supplementary firing should be specified separately and clearly labeled. All
specifications of fuel inputs should use lower heating values.
Diagram must specify average gross electric output in kW or MW for each generator.
Diagram must specify average mechanical output (that is, any mechanical energy taken
off of the shaft of the prime movers for purposes not directly related to electric power
generation) in horsepower, if any. Typically, a cogeneration facility has no mechanical
output.
At each point for which working fluid flow conditions are required to be specified (see
below), such flow condition data must include mass flow rate (in lb/h or kg/s),
temperature (in 'F, R, "C or K), absolute pressure (in psia or kPa) and enthalpy (in Btu/lb
or kJlkg). Exception: For systems where the working fluid is liquid only (no vapor at any
point in the cycle) and where the type of liquid and specific heat of that liquid are clearly
indicated on the diagram or in the Miscellaneous section starting on page I9, only mass
flow rate and temperature (not pressure and enthalpy) need be specified. For reference,
specific heat at standard conditions for pure liquid water is approximately 1.002 Btu/
(lb*R) or +.t g5 kJl(kg *K).
Diagram must specify working fluid flow conditions at input to and output from each
steam turbine or other expansion turbine or back-pressure turbine.
Diagram must specify working fluid flow conditions at delivery to and return from each
thermal application.
Diagram must speci[l working fluid flow conditions at make-up water inputs.
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Pursuant to 18 C.F.R. 5 292.2O2(d, a cogeneration facility produces electric energy and forms of useful thermal
energy (such as heat or steam) used for industrial, commercial, heating, or cooling purposes, through the sequential
useofenergy. Pursuantto18C.F.R.5292.202(s),"sequential use"ofenergymeansthefollowing:(1)foratopping-
cycle cogeneration facility, the use of reject heat from a power production process in sufficient amounts in a
thermal application or process to conform to the requirements of the operating standard contained in 18 C.F.R. 5
292.205(a); or (2) for a bottoming-cycle cogeneration facility, the use of at least some reject heat from a thermal
application or process for power production.
10a What type(s) of cogeneration technology does the facility represent? (check all that apply)
Topping-cycle cogeneration Bottoming-cycle cogeneration
Black Mesa Energy v. IPCo - Exhibit 5 - Page 18 of 27
FERC Form 556 Page 12 - Cogeneration Facilities
11f ls the net power production capacity of your cogeneration facility, as indicated in line 79 above, less than or
equalto 5,000 kW?
Yes, the net power production capacity is less than or equal to 5,000 kW. 18 C.F.R. 5 292.205(d)(4) provides a
rebuttable presumption that cogeneration facilities of 5,000 kW and smaller capacity comply with the
requirements for fundamental use of the facility's energy output in l8 C.F.R. 5 292.205(dX2). Applicant
certifies its understanding that, should the power production capacity of the facility increase above 5,000
kW, then the facility must be recertified to (among other things) demonstrate compliance with 18 C.F.R. 5
292.2051d)(2). Skip lines 1 1g through I 1j.
No, the net power production capacity is greater than 5,000 kW. Demonstrate compliance with the
requirements for fundamental use of the facility's energy output in l8 C.F.R. S 292.205(d)(2) by continuing on
the next page at line 1 I g.
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EPAct 2005 cogeneration facilities: The Energy Policy Act of 2005 (EPAct 2005) established a new section 210(n) of
the Public Utility Regulatory Policies Act of 1978 (PURPA). l6 USC 824a-3(n), with additional requirements for any
qualifying cogeneration facility that (1) is seeking to sell electric energy pursuant to section 210 of PURPA and (2)
was either not a cogeneration facility on August 8, 2005, or had not filed a self-certification or application for
Commission certification of QF status on or before February l, 2006. These requirements were implemented by the
Commission in l8 C.F.R. S 292.205(d). Complete the lines below, carefully following the instructions, to demonstrate
whether these additional requirements apply to your cogeneration facility and, if so, whether your facility complies
with such requirements.
1l a Was your facility operating as a qualifying cogeneration facility on or before August 8, 2005? Yes No
11b Was the initial filing seeking certification of your facility (whether a notice of self-certification or an appiication
for Commission certification) filed on or before February 1, 2006? Yes No
lftheanswertoeitherlinellaorllbisYes,thencontinueatlinellcbelow. Otherwise,iftheanswerstobothlines
1 1a and 1 Ib are No, skip to line 1 1e below.
I I c With respect to the design and operation of the facility, have any changes been implemented on or after
February 2,2006 that affect general plant operation, affect use ofthermal output, and/or increase net power
production capacity from the plant's capacity on February l, 2006?
Yes (continue at line 1 I d below)
No. Your facility is not subject to the requirements of l8 C.F.R. 5 292.205(d) at this time, However, it may be
subject to to these requirements in the future if changes are made to the facility. At such time, the applicant
would need to recertify the facility to determine eligibility. Skip lines 1 1d through 1 1j.
l ld Does the applicant contend that the changes identified in line l1c are not so significant as to make the facility
a "new" cogeneration facility that would be subject to the 18 C.F.R. S 292.205(dl cogeneration requirements?
Yes. Provide in the Miscellaneous section starting on page 19 a description of any relevant changes made to
the facility (including the purpose of the changes) and a discussion of why the facility should not be
considered a "new" cogeneration facility in light of these changes. Skip lines 1 1e through 1 1j.
No. Applicant stipulates to the fact that it is a "new" cogeneration facility (for purposes of determining the
applicability of the requirements of l8 C.F.R. 5 292.205(d)) by virtue of modifications to the facility that were
initiated on or after February 2,2006. Continue below at line I 1e.
I I e Will electric energy from the facility be sold pursuant to section 21 0 of PURPA?
Yes. The facility is an EPAct 2005 cogeneration facility. You must demonstrate compliance with 18 C.F,R, 5
292.205(dl!) by continuing at line 1 1f below.
No. Applicant certifies that energy will not be sold pursuant to section 210 of PURPA. Applicant also certifies
its understanding that it must recertify its facility in order to determine compliance with the requirements of
l8 C.F.R. S 292,205(d) before selling energy pursuant to section 210 of PURPA in the future. Skip lines 1 I f
through 1]j.
Black Mesa Energy v. lPCo - Exhibit 5 - Page 19 of 27
1 I g Amount of electrical, thermal, chemical and mechanical energy output (net of internal
generation plant losses and parasitic loads) expected to be used annually for industrial,
commercial, residential or institutional purposes and not sold to an electric utility
\,1 \/\l il
t I h Total amount of electrical, thermal, chemical and mechanical energy expected to be
sold to an electric utility
lti Percentageoftotalannualenergyoutputexpectedtobeusedforindustrial,
commercial, residential or institutional purposes and not sold to a utility
=100*llg/(119+'l1h)
FERC Form 556 Page 13 - Cogeneration Facilities
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Lines 1 1g through 1 1 k below guide the applicant through the process of demonstrating compliance with the
requirements for "fundamental use" of the facility's energy output. 18 C.F.R. S 292.205(dX2). Only respond to the
lines on this page if the instructions on the previous page direct you to do so. Otherwise, skip this page.
18 C.F.R. S 292.205(dX2) requires that the electrical, thermal, chemical and mechanical output of an EPAct 2005
cogeneration facility is used fundamentally for industrial, commercial, residential or institutional purposes and is
not intended fundamentally for sale to an electric utility, taking into account technological, efficiency, economic,
and variable thermal energy requirements, as well as state laws applicable to sales of electric energy from a
qualifuing facility to its host facility. lf you were directed on the previous page to respond to the items on this page,
then your facility is an EPAct 2005 cogeneration facility that is subject to this "fundamental use" requirement.
The Commission's regulations provide a two-pronged approach to demonstrating compliance with the
requirements for fundamental use of the facility's energy output. First, the Commission has established in 18 C.F.R.
5 292.205(dX3) a "fundamental use test" that can be used to demonstrate compliance with 18 C.F.R. S 292.205(d)(2).
Under the fundamental use test, a facility is considered to comply with 18 C.F.R. 5 292.205(dl2) if at least 50 percent
of the facility's total annual energy output (including electrical, thermal, chemical and mechanical energy output) is
used for industrial, commercial, residential or institutional purposes.
Second, an applicant for a facility that does not pass the fundamental use test may provide a narrative explanation
of and support for its contention that the facility nonetheless meets the requirement that the electrical, thermal,
chemical and mechanical output of an EPAct 2005 cogeneration facility is used fundamentally for industrial,
commercial, residential or institutional purposes and is not intended fundamentally for sale to an electric utility,
taking into account technological, efficiency, economic, and variable thermal energy requirements, as well as state
laws applicable to sales of electric energy from a qualifying facility to its host facility.
Complete lines 1 lg through 1 1j below to determine compliance with the fundamental use test in 18 C.F.R. 5
292.205(d)(3 ). Complete lines 1 I g through 11j even if you do not intend to rely upon the fundamentol use test to
demonstrate compliance with l8 C.F.R. 5 292.205(d)(2).
11j ls the response in line 1 1i greater than or equal to 50 percent?
Yes. Your facility complies with l8 C.F.R. S 292.205(dX2) by virtue of passing the fundamental use test
provided in 18 C.F.R. S 292.205(dX3). Applicant certifies its understanding that, if it is to rely upon passing
the fundamental use test as a basis for complying with 18 C.F.R. S 292.205(d)(2), then the facility must
comply with the fundamental use test both in the l2-month period beginning with the date the facility first
produces electric energy, and in all subsequent calendar years.
No. Your facility does not pass the fundamental use test. lnstead, you must provide in the Miscellaneous
section starting on page I9 a narrative explanation of and support for why your facility meets the
requirement that the electrical, thermal, chemical and mechanical output of an EPAct 2005 cogeneration
facility is used fundamentally for industrial, commercial, residential or institutional purposes and is not
intended fundamentally for sale to an electric utility, taking into account technological, efficiency, economic,
and variable thermal enerlly requirements, as well as state laws applicable to sales of electric energy from a
QF to its host facility. Applicants providing a narrative explanation of why their facillty should be found to
comply with 18 C.F.R. 5 292.205(dl!) in spite of non-compliance with the fundamental use test may want to
review paragraphs 47 through 61 of Order No.67l (accessible from the Commission's QF website at
www.ferc.gov/QF), which provide discussion of the facts and circumstances that may support their
explanation. Applicant should also note that the percentage reported above will establish the standard that
that facility must comply with, both for the 12-month period beginning with the date the facility first
produces electric energy, and in all subsequent calendar years. See Order No.67l at paragraph 5 l. As such,
the applicant should make sure that it reports appropriate values on lines 1 1g and 1 t h above to serve as the
relevant annual standard, taking into account expected variations in production conditions.
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Black Mesa Energy v. lPCo - Exhibit 5 - Page 20 of 27
FERC Form 556 Page 14 - Topping-Cycle Cogeneration Facilities
lnformation Required for Topping-Cycle Cogeneration Facility
lf you indicated in line 10a that your facility represents topping-cycle cogeneration technology, then you must respond to
the items on 14 and 1 5. Otherwise,l4and l5
12b Demonstrationofusefulnessofthermal output: Ataminimum,provideabriefdescriptionofeachuseofthe
thermal output identifled above. ln some cases, this brief description is sufficient to demonstrate usefulness.
However, if your facility's use of thermal output is not common, and/or if the usefulness of such thermal output is
not reasonably clear, then you must provide additional details as necessary to demonstrate usefulness. Your
application may be rejected and/or additional information may be required if an insufficient showing of usefulness
is made. (Exception: lf you have previously received a Commission certification approving a specific use of thermal
output related to the instant facility, then you need only provide a brief description of that use and a reference by
date and docket number to the order certifying your facility with the indicated use. Such exemption may not be
used if any change creates a material deviation from the previously authorized use.) lf additional space is needed,
continue in the Miscellaneous section starting on page 19.
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The thermal energy output of a topping-cycle cogeneration facility is the net energy made available to an industrial
or commercial process or used in a heating or cooling application. Pursuant to sections 292.202(cl, (d) and (h) of the
Commission's regulations (18 C.F.R. 55 292.202(c), (d) and (h)), the thermal energy output of a qualifying topping-
cycle cogeneration facility must be useful. ln connection with this requirement, describe the thermal output of the
topping-rycle cogeneration facility by responding to lines 12a and 12b below.
12a ldentify and describe each thermal host, and specifi/the annual average rate of thermal output made available
to each host for each use. For hosts with multiple uses of thermal output, provide the data for each use ln
seporote row, Average annual rate of
thermal output
attributable to use (net of
Name of entity (thermal host) Thermal host's relationship to facility; heat contained in process
taking thermal output Thermal host's use of thermal output return or make-up water)
5ert]'. 1 f irefii)(ri rri,lsi : reirllr0rt:i,rp i,l llr rliLy'
[]t., h5e t,r f ff.ernt,tl tr,;rt , .,1,',,;f f'.r.rrnL)i t)r.tlFt,rf
!Crr,r i :l'L.rrrt.il il()it J 1.r1.i;r1;1r.,i1,p f I i,rr :lily
ijlr. hti, r,r ' ll-rpi'rlal ltOti ) .r)e i)f I'trl{,I,ll ,),..1:pltt
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Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed
Black Mesa Energy v. lPCo - Exhibit 5 - Page 2l of 27
FERC Form 556 Page 15 - Topping-Cycle Cogeneration Facilities
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13k Compliance with efficiency standard (for low operating value): lf the operating value shown in line 139 is less
than 'l 5olo, then indicate below whether the efficiency value shown in line 13h greater than or equal to 450/0:
Yes (complies with efficiency standard) No (does not comply with efficiency standard)
t3! Compliancewithefficiencystandard(forhighoperatingvalue): lf theoperatingvalueshowninlinel39is
greater than or equal to 150/o, then indicate below whether the efficiency value shown in line 13h is greater than or
equal to 42.5olo:
Yes (complies with efficiency standard) No (does not comply with efficiency standard)
Applicants for facilities representing topping-cycle technology must demonstrate compliance with the topping-
cycle operating standard and, if applicable, efficiency standard. Section 292.205(aX1)of the Commission's
regulations (18 C.F.R. 5 292.205(a)(l )) establishes the operating standard for topping-cycle cogeneration facilities:
the useful thermal energy output must be no less than 5 percent of the total energy output. Section 292.205(a)(2)
(18 C.F.R. 5 292.205(aX2)) establishes the efficiency standard for topping-cycle cogeneration facilities for which
installationcommencedonorafterMarchl3, 1980: theusefulpoweroutputofthefacilityplusone-halftheuseful
thermal energy output must (A) be no less than 42.5 percent of the total energy input of natural gas and oil to the
facility; and (B) if the usefulthermal energy output is less than l5 percent of the total energy output of the facility,
be no less than 45 percent of the total energy input of natural gas and oil to the facility. To demonstrate
<ompliance with the topping-cycle operating and/or efficiency standards, or to demonstrate that your facility is
exempt from the efficiency standard based on the date that installation commenced, respond to lines 13a through
l3lbelow.
lf you indicated in line I Oa that you r facility represents both topping-cycle and bottoming-cycle cogeneration
technology, then respond to lines l3a through I3l below considering only the energy inputs and outputs
attributable to the topping-cycle portion of your facility. Your mass and heat balance diagram must make clear
which mass and energy flow values and system components are for which portion (topping or bottoming) of the
coqeneration system.
iStr; ir
l3a lndicate the annual average rate of useful thermal energy output made available
to the host(s), net ofany heat contained in condensate return or make-up water
l3b lndicate the annual average rate of net electrical energy output
illu,I
13c Multiply line 13b by 3,4i 2 to convert from kW to Btu/h
h!:
13d lndicate the annual average rate of mechanical energy output taken directly off
of the shaft of a prime mover for purposes not directly related to power production
(this value is usually zero)
i)ii,
l3e Multiply line l3d by 2,544toconvert from hpto Btu/h
il t t;. F'
I 3f lndicate the annual average rate of energy input from natural gas and oil
13h Topping-cycleefficiencyvalue = I00 * (0.5*'l3a + I3c +'l3e) / 13f
l3i Compliance with operating standard: ls the operating value shown in tine 139 greater than or equal to 5o/o?
Yes (complies with operating standard) No (does not comply with operating standard)
f 3j Did installation of the facility in its current form commence on or after March 13, 1980?
Yes. Your facility is subject to the efficiency requirements of 18 c.F.R. 5 292.205(a)(2). Demonstrate
compliance with the efficiency requirement by responding to line 1 3k or 131, as applicable, below.
No. Your facility is exempt from the efficiency standard. Skip lines l lk and 1 31.
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139 Topping-cycle operating value = 100 * 13a / (1 3a t 1 3c + 13e)
Black Mesa Energy v. lPCo - Exhibit 5 - Page 22 of 27
FERC Form 556 Page l6 - Bottoming-Cycle Cogeneration Facilities
!nformation Required for Bottoming-Cycle Cogeneration Facility
lf you indicated in line 10a that your facility represents bottoming-cycle cogeneration technology, then you must respond
to the items on pages 16 and t 7. Otherwise,l6and i7
14b Demonstration of usefulness of thermal output: At a minimum, provide a brief description of each process
identified above. ln some cases, this brief description is sufficient to demonstrate usefulness. However, if your
facility's process is not common, and/or if the usefulness of such thermal output is not reasonably clear, then you
must provide additional details as necessary to demonstrate usefulness. Your application may be rejected and/or
additional information may be required if an insufficient showing of usefulness is made. (Exception: lf you have
previously received a Commission certification approving a specific bottoming-cycle process related to the instant
facility, then you need only provide a brief description of that process and a reference by date and docket number
to the order certifoing your facility with the indicated process. Such exemption may not be used if any material
changes to the process have been made.) lf additional space is needed, continue in the Miscellaneous section
starting on page 19.
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The thermal energy output of a bottoming-cycle cogeneration facility is the energy related to the process(es) from
which at least some of the reject heat is then used for power production. Pursuant to sections 292.202(c) and (e) of
the Commission's regulations (18 C.F.R. 5 292.202(c) and (e)) , the thermal energy output of a qualifying bottoming-
cycle cogeneration facility must be useful. ln connection with this requirement, describe the process(es) from which
at least some of the reject heat is used for power production by responding to lines 14a and l4b below.
l4a ldentifo and describe each thermal host and each bottoming-cycle cogeneration process engaged in by each
host. For hosts with multiple bottoming-cycle cogeneration processes, provide the data for each process in
seporote rows
Has the energy input to
Name of entity (thermal host) the thermal host been
performing the process from augmented for purposes
which at least some of the of increasing power
reject heat is used for power Thermal host's relationship to facility; production capacity?production Thermal host's process type (if Yes, describe on p. 19)
5el(t(l f irr),i'r,ti lr,-:,,i , r:r,-tt ()rtjf]tp f .) jJ( llity
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Yes No
Yes No
ltlle(.1 ir.i,r'nlr i,)ii, r t1(t't,r,,i\t,r: I fir,i,i,,
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Yes No
Check here and continue in the Miscellaneous section starting on page 19 if additional space is needed
Black Mesa Energy v. lPCo - Exhibit 5 - Page 23 of 27
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Applicants for facilities representing bottoming-cycle technology and for which installation commenced on or after
March 13, 1990 must demonstrate compliance with the bottoming-cycle efficiency standards. Section 292.205(b) of
the Commission's regulations (18 C.F.R. S 292.205(b)) establishes the efficiency standard for bottoming-cycle
cogeneration facilities: the useful power output of the facility must be no less than 45 percent of the energy input
of natural gas and oil for supplementary firing. To demonstrate compliance with the bottoming-cycle efficiency
standard (if applicable), or to demonstrate that your facility is exempt from this standard based on the date that
installation of the facility began, respond to lines 1 5a through 1 5h below.
lf you indicated in line 10a that your facility represents both topping-cycle and bottoming-cycle cogeneration
technology, then respond to lines l5a through 15h below considering only the energy inputs and outputs
attributable to the bottoming-cycle portion of your facility. Your mass and heat balance diagram must make clear
which mass and energy flow values and system components are for which portion of the cogeneration system
(topping or bottoming).
f 5a Did installation of the facility in its current form commence on or after March 1 3, I 980?
Yes. Your facility is subject to the efficiency requirement of l8 C.F.R. 5 292.205(b). Demonstrate compliance
with the efficiency requirement by responding to lines 15b through 15h below.
No. Your facility is exempt from the efficiency standard. Skip the rest of page 'l 7.
15b lndicate the annual average rate of net electrical energy output
iltir, l)
15d lndicate the annual average rate of mechanical energy output taken directly off
of the shaft of a prime mover for purposes not directly related to power production
(this value is usually zero)
t 5e Multiply line 15d by 2,544 to convert from hp to Btu/h
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l5f lndicate the annual average rate of supplementary energy input from natural gas
or oil L. ! L.
l59 Bottoming-cycle efficiencyvalue = 100 * (15c + l5e) / 15f
l5h Compliance with efficiency standard: lndicate below whether the efficiency value shown in line 159 is greater
than or equal to 45olo:
Yes (complies with efficiency standard) No (does not comply with efficiency standard)
FERC Form 556 Page'.7 - Bottoming-Cycle Cogeneration Facilities
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Black Mesa Energy v. IPCo - Exhibit 5 - Page 24 of 27
FERC Form 556 Page l8 - All Facilities
Certificate of Completeness, Accuracy and Authority
Applicant must certify compliance with and understanding of filing requirements by checking next to each item below and
signing at the bottom of this section. Forms with incomplete Certificates of Completeness, Accuracy and Authority will be
rejected by the Secretary of the Commission.
Signer identified below certifies the following: (check all items and applicable subitems)
He or she has read the filing, including any information contained in any attached documents, such as cogeneration
ffi mass and heat balance diagrams, and any information contained in the Miscellaneous section starting on page 19, and
knows its contents.
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He or she has provided all of the required information for certification, and the provided information is true as stated,
to the best of his or her knowledge and belief.
He or she possess full power and authority to sign the filing; as required by Rule 2005(a)(3) of the Commission's Rules of
Practice and Procedure (18 C.F.R. 5 385.2005(a)(3)), he or she is one of the following: (check one)
E The person on whose behalf the fiiing is made
I An officer of the corporation, trust, association, or other organized group on behalf of which the filing is made
- An officer, agent, or employe of the governmental authority, agency, or instrumentality on behalf of which theu filing is made
- A representative qualified to practice before the Commission under Rule 2101 of the Commission's Rules ofU Practice and Procedure (1 8 C.F.R. 5 385.2 101 ) and who possesses authority to sign
He or she has reviewed all automatic calculations and agrees with their results, unless otherwise noted in the
Miscellaneous section starting on page 19.
He or she has provided a copy of this Form 556 and all attachments to the utilities with which the facility will
interconnect and transact (see lines 4a through 4d), as well as to the regulatory authorities of the states in which the
facility and those utilities reside. See the Required Notice to Public Utilities and State Regulatory Authorities section on
page 3 for more information.
Provide your signature, address and signature date below. Rule 2005(c) of the Commission's Rules of Practice and
Procedure (18 C.F.R. 5 385.2005(c)) provides that persons filing their documents electronically may use typed characters
representing his or her name to sign the filed documents. A person filing this document electronically should sign (by
typing his or her name) in the space provided below.
Your Slgnature Your address Date
i i*.::,
Audit Notes
Commission Staff Use Only
Black Mesa Energy v. IPCo - Exhibit 5 - Page 25 of 27
l
FERC Form 556 Page l9 - All Facilities
Miscellaneous
Use this space to provide any information for which there was not sufficient space in the previous sections of the form to
provide. For each such item of information clearly identify the line number that the information belongs to. You may also use
this space to provide any additional information you believe is relevant to the certification of your facility.
Your response below is not limited to one page. Additional page(s) will automatically be inserted into this form if the
length of your response exceeds the space on this page. Use as many pages as you require.
Lin-- 6a: ihe energy s!--oraJe (b,rr.f-erV) .:ysf.em wi.Il taka it..s i:-rpr.rf fronr 100,i renewab]-e
enerqy :tources sucn as w-rnc, jc-ar', bic,3as, r,roma5s, +r.c. The sysr-em j-s des tqne,l wrr-hr
f1-^xibriity to mo;t efficierrf.iy ut-rLi;r-* lfle resoLlrces 3r/ar, l-abLe aL Lhe site, at the
preiient t.rme aJ well as t-n l-.he iur.re.
Black Mesa Energy v. IPCo - Exhibit 5 - Page 26 of 27
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Black Mesa Energy v. IPCo - Exhibit 5 - Page 27 of 27
Peter J. Richardson (ISB No. 3195)
Gregory M. Adams (ISB No. 7454)
Richardson Adams, PLLC
515 N. 27th Street
Boise,Idaho 83702
Telephone: [phone]
Fax: [phone]
peter@richardsonadams. com
ere e@richardsonadams. com
Attomeys for Complainant Black Mesa Energy, LLC
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
BLACK MESA ENERGY, LLC,
Complainant,Case No.
FORMAL COMPLAINT
EXHIBIT 6
vs.
IDAHO POWER COMPANY,
Defendant.
)
)
)
)
)
)
)
)
January 24,2020
Michael Darrington
SR Energy Contracts Coordinator
ldaho Power/Power Supply
L221West ldaho Street
Boise,ldaho 83702
Re: Energy Storage QF's
Dear Mr. Darrington
Black Mesa Energy, LLC ("Black Mesa"l is developing four greenfield energy storage and renewable
power plants: Black Mesa Energy 1, Black Mesa Energy 2, Frederick Energy L, and Frederick Energy 2
(collectively, the "Projects"). Black Mesa has provided applications and supporting documentation per
the requirements of Schedule 73 "Cogeneration and Small Power Production Schedule" to ldaho Power
on January 18,2020 (Black Mesa Energy l and Black Mesa Energy 2)and on January 20,2O2O (Frederick
Energy L and Frederick Energy 2). The projects are each an energy storage QF and qualify for the "Other
projects" avoided costs as published by the ldaho Public Utilities Commission (Avoided Cost Rates for
Other Projects) and referenced in 1:18-cv-00236-REB (Franklin Energy Storage v ldaho PUC & tdaho
Power).
Black Mesa herby enters into a legally enforceable obligation to provide such capacity and energy to
ldaho Power and is submitting executed Energy Sales Agreements for each Project for your
cou ntersignature.
These energy storage facilities have the capability to provide additional value to ldaho Power's system
via limited dispatchability. While our commitment, evidenced by the enclosed executed contracts, is
binding and enforceable, we are willing to discuss possible amendments to these obligations to
accommodate ldaho Power's load following and ancillary service needs.
We are looking forward a long and mutually beneficial relationship with ldaho Power
Sincerely
Brian Lynch
Manager
Black Mesa Energy, LLC
Black Mesa Energy v. IPCo - Exhibit 6 - Page I of 98
Note that only the power purchase agreements for Black Mesa Energy I and Black Mesa
Energy 2 have been attached to Exhibit 6.
Black Mesa Energy v. IPCo - Exhibit 6 - Page 2 of 98
Article
ENERCY SALES ACREHMENT
BETWEEN
IDAHO POWER COMPANY
AND
BLACK MESA ENERCY, LLC
TABLE, OF CONTENTS
TITLE
Definitions
No Reliance on [daho Power
Warranties
Conditions to Acceptance of Enerry
Term and Operation Date
Purchase and Sale ofNet Energy
Purchase Price and Method of Payment
Env i ronmental Attributes
Facil ity and lnterconnection
Metering, Metering Communications and SCADA Telemetry
Records
Operations
lndemnification and lnsurance
Force Majeure
Liability; Dedication
Several Obligations
Waiver
Choice ol Laws and Venue
Disputes and Default
Governmental Authorization
Commission Order
Successors and Assigns
Modification
Taxes
Notices and Authorized Agents
Additional Terms and Conditions
Severability
Counterparts
Entire Agreement S i gnatures
I
2
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4
5
6
7
8
9
t0
l1
t2
tl
l4
t5
l6
t7
t8
l9
20
2l
22
23
24
25
26
27
28
29
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Generation Scheduling and Reporting
Facility and Point of Delivery
Engineer's Certi fications
Ceneration Prices
Insurance Requirements
Black Mesa Energy v. IPCo - Exhibit 6 - Page 3 of 98
FIRM CHNF,RATION SALES ACiREEMENT
(Other Facility l0 average Monthly MW or Less)
Project Name: Black Mesa Energy I
Project Number:
TfllS FIRM GEN[-:RATION SALES ACREEMENT ("Agreement"), entered into on this 24 day
of January 2020 ("Effective Date") between BLACK MESA ENERCY, LLC an ldaho limited liability
company (Seller), and IDAHO POWER COMPANY. an ldaho corporation (ldaho Power), hereinafter
sometirncs referred to sollectively as "Pafties" or individually as "Party."
WITNESSETH:
WHEREAS. Seller will design, construct, own. maintain and operate an energy storage system
and electric generation t'acility that will be a PURPA Qualitying Facility; and
WHEREAS, Seller wishes to sell, and Idaho Power is required to purchase, electric generation
produced and delivered by the PURPA Quatifying Facility.
Tt-IEREFORE, In consideration of the mutual covenants and agreements hereinafter set forth, the
Parties agree as follows:
ARTICI.E I: DEF INITIONS
As used in this Agreement and the appendices attached hereto, the fbllowing terms
shall have the following meanings:
I . t "Adjusted Estimated Net Energy Amount" - the Estimated Net Encrgy Amount specitied
in paragraph 6.2 including any adjustments that have been made in accordance with
paragraphs 6.2.2 or 6.2.3.
1.2 "Authorized Asent" - a person or persons specitied within paragraph 25,2 of this Agreement as
being authorized and empowered, fbr and on behallot'the Seller, to execute irrstruments,
agreements, certitlcates. and other docr"rments (cotlectively "Documents") and to take actions on
I
Black Mesa Energy v. IPCo - Exhibit 6 - Page 4 of 98
t.3
1.4
t.5
1.6
behallof thc Seller. and that [daho PowerCompany and its directors, otfrcers, employees, and
agents are entitled tt-r consider and cleal witlr such pcrsons as agent.s of the Seller tbr all purposes,
until such tirno as an authorized ot'tlcer of the Seller shall have delivered to tdaho Power
Company a notice in writing stating that such penion is and shall no longer be an agent on behalf
ttl'the Scller. Any Documents executed by such pers()ns shall be deemed duly authorized by the
Seller fbr all purposes.
"Commission" - The [daho Public Utilities Comrnission.
"Contract Year" * The period commencing each calendar year on the same calendar date a.s the
Operation Date ancl ending three hundred sixty-tbur (364) days thereafter.
"Delay Cure Period" - One hundred twenty ( 120) days immediately fbllowing the Scheduled
Operation Date.
"Delay DamaBes" * Current month's Estimated Net Energy Amount tbr the first Contract Year as
specified in paragraph 6.2.I as of the Etfective Date divided by the number of days in the current
month multiplied by the number of days in the Delay Period in the current month multiplied by
the current montlr's Dclay Price.
"Dela.v Period" - All days past the Scheduled Operation Date until the Seller's Facility achieves
the Operation Date or the Agreement is terminated by tdaho Power.
"Delay Price" - The current month's Mid-Columbia Market Energy Cost minus the current
month's Base Energy Purchase Price as specified in Appendix D of this Agreement. lf'this
calculation results in a value [ess than zero (0), the result of this calculation will be zero (0).
"Designated Nstwork Resource (DNRt" - A resource that is designated tbr ldaho Power network
load and does not inclucle any resource, or any portion thereot. that is committed for sale to third
parties or otherwise cannot he called upon to rneet ldaho Power's network load.
''Designated Dispatch Facility" - Idaho Power's Load Serving Operations. or any subsequent
group designated by ldaho Power.
1.1
1.8
1.9
l. r0
2
Black Mesa Energy v. IPCo - Exhibit 6 - Page 5 of 98
l.l I "tjflbctive Date" - The datc stated in the openirrg parzrgraph of this Energy Sales Agreement
representing the date upon which this Energy Sales Agreement was tirlly executed by br-rth
Partics.
l.l2 "Environmental Attributes" - means any and all credits, benefits, emissions reductions. oflsets,
and allowances, howsoever entitled, attributablc to thc generation lrom the Faciliry, and its
avoided emission of pollutants. F.nvironmcntal Attributes include but are not limited to: ( I ) any
avoided emission of pollutants to the air. soil or water such as sult-ur orides (SOx). nitrogen
oxides (NOx). carbon monoxide (CO) and other pollutants; (2) any avoided emissions of carhon
dioxide (COz), methane (Cl-l.r). nitrous oxide. hydrofluorocarbons, pertluorocarbons, sulfur
hexatluoride and othcr greenhouse gases (CHCs) tlrat have been determined by the United
Nations lntergovernmcntal Panel on Climatc Change, or otherwise by law. to contribute to the
actual or potential threat of altcring the Earth's clirnate by trapping heat in the atmosphere;r (l)
the reporting rights to these avoided emissions. such as REC Reporting Rights. REC Reporting
Rights are the right of a REC purchaser to report the ownership of accurnulated RECs in
compliance with fcderal or state taw, if applicablc, ancl to a t'ederal 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) of The Energy Polic,v- Act ot' 1992 and any present or
t'uture fedcral. state, or local law. regulation or bill, and international or fbreign emissions trading
program. RtlCs are accumulated on a MWh basis and one Rb.C represents the F.nvirorrmental
Attributes associated with one ( l) MWh of energy. E,nvironmental Attributes do not include (i)
any energy. capacity, reliability or other po\,ver attributes tiom the Facility. (ii) production tax
credits or investment ta.x credits a^ssociated with the construction or operation of thc Facility and
other flnaneial inoentives in the tbrm olcredits, reductions, or allowances associated with the
Facility that are applicable to a state or t'ederal income taxation obligation, (iiil the cash grant in
Avoided ernissions may or may not have any value tirr CHC compliance purposes. Although avoided
cmissions are inclucled in the list olE,nvironmental Anributes, rhis inclusion docs ntrt create any right to use those
avoiclcd ernissions to conrply with any GHC regulatory program.
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Black Mesa Energy v. IPCo - Exhibit 6 - Page 6 of 98
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lieu <lf thc investment tax credit pursuant to Section l60l <;f the American Recovcry and
Reinvestment Act of 2009, or (iv) emission reduction credits encumbered or used by the Facility
fbr compliance with local, state, or tbderal operating anrVor air quality permits.
"Esti!0ated Nea Enerqy Amount" - the monthly estimated Net Encrgy (kWh) int-ormation
provided by the Seller in accordance with paragraph 6.2 and whish may be adjusted periodically
throughout thc tcrm of this Agreement in accordance with paragraph 6,2.
"Facility" - That electric generation facility described in Appendix B of this Agreemcnt
"Facility Nameplate Capacitv" - The sum of the individualCeneration Unit Nameplate
Capacity's that are installcd at this Facility. This value is established tbr the term olthis
Agreemcnt in Appendix B, item B- I oI this Agreement and validated in paragraph 4. I .4 of this
Agreement.
"F'irst Enersv Date" - The day commencing at 00:0 [ hours, Mountain Time. fr:llowing the day
that Seller has satisfied the requirements of Article lV and after the Seller requested First Energy
Date.
"Forced Outagc" - a partial or total reductiorr of a) the 1'acility's capacity to produce anrJ/or
deliver Net Energy to the Point of Delivery, or b) Idaho Power's ability to accept Net Energy at
the Point of Delivery lor non-economic reasons, as a result o[ Idaho Power or Facility: l)
equipment failure which was q! the result olnegligence or lack of preventative maintenance, or
2) responding to a transmission provider curtailment order, or 3) unplanned preventative
mairrtenance to repair equipment that teft unrepaired. would result in thilure o[ equipment prior
to the planned maintenance period, or 4) planned maintenance or construction of the Facility or
electrical Iines required to serve this Facility, or 5) icing events within the immediate water
source used as the Facility's primary motive force thatcauses the Facility to reduce generation
production.
4
Black Mesa Energy v. IPCo - Exhibit 6 - Page 7 of 98
r. r8 "(ienL'ration lntcrconnection Aerecment (ClA)" - l'he interconnection agreement that specifies
terms. conditions and requirements of interconnectirrg to the Idaho Power electrical system,
which will include but not be limited to all requirements as specitied by Schedule 72.
"Cieneration Unit" - a complete electrical generation system within the Facility that is able to
generatc and deliver elcctricity to the Point of Delivery independent of other Generation Units
within thc same Facility.
"lnadvertent Energy" - Electric encrgy Scllcr does not intencl to generate. lnadvertent energy is
more particularly described in paragraph 7.2 of this Agreement.
"lnterconnection Facilities" - All equipment specitied in the GIA.
"lnitial Caoacitv Determination'' - The process by which ldaho Power confirms that under
normal or average design conditions the Facility will generatc at no more than l0 average
megawatts (lvlW) per month. as more particulery described in pargraph 4.1.4.
"Losses" - The loss of electrical energy expressed in kilowatt hours (kWh) occurring as a result
of the transfbrmation and transmission of energy between the point where the Facility's energy is
meteredandttreFacility'sPointofDelivery. Thelosscalculationfbrmulawill beasspeciticdin
Appendix B of this Agreement.
''lvltrket Energy Retbrence Price" Eighty-tlve percent (85%) of the Mid-Columbia Market
Energy Cost.
''Material Breach" * A Defbult (paragraph 19.2.I ) subject to paragraph 19.2.2.
"Maxirnum Capacity Amount" - the ma.ximum capacity (MW) ot'the Facility will be as
specified in Appendix B of this Agreement.
"Mid-Cglumbia Mlarket F.ner&v Cost" - is Eighty-two and tbur tenths percent (82.-l%) of
the monthly arithmetic average oleach day's Intercontinental Exchange ("lCE") daily tirm
Mid-C Peak Avg and lvtid-C Off-Peak Avg index prices. Each day's index prices will
ret'lect the relative proportions olpeak hours and otTpeak hours in the month as lollows:
Lr9
t.20
t.2t
1.22
r.23
t.2,1
1.25
t.26
1.27
5
Black Mesa Energy v. IPCo - Exhibit 6 - Page 8 of 98
The Mid-Columbia Market Energy Cost actual calculation being:
824 * ( I {(lCE Mid-C Peak Avg. * HL hours for day) +
X=l
(lCE Mid-C Oft..Peak Arg" * LL hours for day)) I (n*24))
where n = number of days in the month
lf the ICE Mid-C Index prices are not reported tbr a particular day or days, prices derivcd from the
respective averages of HL and LL prices for the immediately preceding and fbllowing reporting
periods or days shall be substituted into the tbrmula stated in this definition and shall therefore be
multiplied by the appropriate respective numbers of [tL and LL Hours for such particular day or
days with the result that each hour in such month shall have a related price in such tbrmula. If the
day fbr which prices are not reported has in it only LL Hours (for example a Sunday), the respective
averages shall use only prices reported for LL hours in the immediately preceding and following
reporting periods or days. If the day for which prices are not reported is a Saturday or Monday or is
ad.iacent on the calendar to a holiday. the prices used tbr HL Hours shall be those fbr HL hours in
the nearest (florward or backward) reporting periods or days tbr which HL prices are reported.
lf the ICE Mid-C Index reporting is discontinued by the reporting agency, both Panies will
mutually agree upon a replacement index, which is similar to the ICE Mid-C lndex. The selected
replacement index will be consistent with other similar agreements and a commonly used index
by the electrical industry.
1.28 "Monthly Nameolate Enerqy" - Facility Nameplate Capacity (kW) multiplied by the hours in the
appticable month,
I .29 "Nameplate Capaciw" -The tull-load electrical quantities assignecl by the designer [o a
Ceneration Unit and its prime movc'r or other piece of electrical equipment, such as transformers
and circuit breakers, under standardized conditions, expressed in amperes, kilovolt-amperes,
Black Mesa Energy v. IPCo - Exhibit 6 - Page 9 of 98
6
kilowatts. volts or other appropriate units. {..lsually indicaLecl on a nameplate attachecl to the
individual rnachine or dcvicc.
l.l0 "Nct tner$," AII ot the electric energy produced by the Facility, lcss Station I jse and Losses,
expressed in kilowatt hotrrs (kWh) delivered by the Iacitity to ldaho Po,uver at the Point ol
Dclivery. Subject to the terms of this Agreement. Seller commits to deliver all Net F.nergy to
ldaho Power at the Point olDclivery tbr the tull term of the Agreenrent. Net Energy does not
incl ude Inadvertent Energy.
L3 I "Operation Date" -'t'he day commencing at 0001 hours, Mountain Tirne, tbllowing the day that
all reqLrirements of paragraph 5.2 have been completed and after the Seller requested Operation
Date.
1.32 *Othcr Facility" - ln accordance with IPUC Order 32697 and Order i2802, a generation facility
that is not a Solar. Wind, Seasonal Hydro or Non-seasonal Hydro generation facility.
l.li "Poirrtof Dcliverv" -Thc location speci fied in the(llAand ref'erenced in Appendix B. where
ldaho Power's and thc Scllcr's electrical thcilities are interconnected and the energy tiom this
Facility is delivered to the ldaho Power electrical system.
l.l4 "Prudent Electrical Practices" - l'hose practices. methods and equipment that are commonly and
ordinarily used in electrical engineering and operations to operate elcctric equipment lawfully,
saf'ety. dependably, e flic i ently and econom ical ly.
L35 "Renewable Ener&v Certiticate" or "REE" means a certitrcate, credit, allowance. green tag, or
other translerable indicia, howsoever entitled, indicating generation of renewable energy by the
Facility. ancl includes all Environmental Attributes arising as a result olthe generation ol
elcctricity associated with the RECI. One REC represents the Environrnental Attributes associated
with the gencration ot'one th<;usand ( t,000) kWh ol Net E,nergy.
l.l6 "Scheduled Qperation Date" - The date specified in Appendi.x B when Seller antrcipates achieving
the Operation Date. lt is cxpected that thq Scheduled C)peration Date provided by the Seller shall
7
Black Mesa Energy v. IPCo - Exhibit 6 - Page l0 of 98
be a reasonable estimate of the date that the Seller anticipates that the Seller's Facility shall
achieve the Operation Date.
I .37 "Schedule 72" - ldaho Power's Taritf No l0l , Schedule 72 ar its successor schedules as
approved by the Commission.
1.38 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise
related to the production of electricity by the Facility.
l.l9 "Termination Darlages" - Financial damages the nondefaulting party has incurred as a result of
termination of this Agreement.
1.40 *WECC Scheduling Calendar" - The Scheduling Calendar for the current year published by the
Westem Electricity Coordinating Council.
2.t
2.2
3.1
AR'IICLE Il: NO RELIANCE ON IDAHO POWER
Seller Independent lnvestiBation - Seller warrants and represents to ldaho Power that in entering
into this Agreement and the undertaking by Seller of'the obligations set tbrth herein, Seller has
investigated and determined that it is capable of perfbrming hereunder and has not relied upon
the advice, experience or expertise of ldaho Power in connection with the transactions
contemplated by this Agreement.
Seller lndependent Experts - All prolessionals or experts including, but not limited to, errgineers,
attomeys or accountants, that Seller may have consulted or relied on in undertaking the
transastions contemplated by this Agreement have been solely those oF Seller.
ARTICLE III: WARRANTIES
No Warrant) bv ldaho Power - Any review, acceptance or f,ailure to review Seller's design,
specifications, equipment or facilities shall not be an endorsement or a confirmation by ldaho
Power and ldaho Power makes no warranties. expressed or implied, regarding any aspect of
Seller's design, specifications, equipment or thcilities, including, but not limited to, salety,
durability, rcliability. strength, capacity, adequacy or economic t'easibility.
8
Black Mesa Energy v. IPCo - Exhibit 6 - Page I I of 98
).!Oualityrngfasi![Status - Seller warrants that the Facility is a "Qualilying Facility," as that ternr
is uscd and detined in l8 CFR 292.20I et seq. Atter initialqualitication, Seller will take such
steps as may be requircd to maintain the l-'acility's Qualifying Facility status during the term ol
this Agreernent and Seller's thilure to maintain Qualitying Facility status will be a Material
Breach of this Agreement. tdaho Powcr resi.trves the right tu review the Facility''s Qualifying
l''acility status and associated support and conrpliarrce documents at any time during tlte term oI
this Agreement.
Othet Facility Oualification - Seller warrants that the Faoility is an Other Facitity as that term is
det'ined in paragraph l.12 olthis Agreernent. Seller will take such steps as may be required to
maintain the Other Facility status dr.rring the firll term of this Agreement. ldaho Power reserves
tlre right to rcview thc Other Facility status ot'this Facility and associated support and compliance
documents at any time during the term of this Agreernent.
ARTICLE lV; CONDII IONS tO ACCEPTANCE OF ENERCY
First Energy Date - Prior to the F'irst Energy Date and as a condition clf ldaho Power's acceptance
oldeliveries olenergy lrom the Seller under this Agreement. Seller shall:
4.1 .l Submit proof to ldaho Power that all licenses, permits, determinations and
approvals necessary tbr Sellcr's operations have been obtained fiom applicable
lederal, state or local authorities, including, but not limited to, evidence of
cornpliancewithSubpartB, lSC.F.R.ti292.l0letseq.asacertifledQualifyingFacility.
4.1.2 Opinio! of Counsel - Submit to ldaho Power an opinion letter signed by an attomey
admitted to practice and in good standing in the State ol'ldaho providing an opinion that
Seller's licenscs, permits, deternrinations and approvals as set fbrth in paragraph 4. l.l .
above are legally and validly issued, are held in the name of'the Seller and, based on a
reasonable independent review, counsel is of the opinion that Seller is in substantial
conrpliance with said perrnits as ot'the datc olthe Opinion l,etter. The opinion lettcr will
9
J.J
4.t
Black Mesa Energy v. IPCo - Exhibit 6 - Page l2 of 98
4. r.3
4.1.4
be in a fbrm acceptable to Idaho Power and will acknowledge that the attorney rendering
the opinion understands that lclaho Power is relying on said opinion. ldaho Power's
acceptance of the tbrm will not be unreasonably withheld. The opinion letter will be
governcd by and shall be interpreted in accordance with thc legal opinion accorcl of the
American Bar Association Section ol Business Law ( 199 I ).
Commission Approval - Cont'irm with ldaho Power that Commission approval of this
Agreement in a tbrm acceptable to [daho Power has been received.
lnitial Capacity Determination - Submit to ldaho Power such data as ldaho Power may
reasonably require to perform the lnitial Capacity Determination. Such data will include
but not be limited to, Ceneration Unit Nameplate Capacity, equipment specitications,
prime mover data resource charactcristics, normal and/or average operating design
conditions and Station Use data. Upon receipt of this infbrmation, Idaho Power will
review the provided data and il necessary, request additional data to complete the lnitial
Capacity Determination within a reasonable time.
4.1.4.1 lf the Maximum Capacity Amount specitied in Appendix B of this Agreement
and the cumulative manufacturer's Nameplate Capacity rating of the individual
Ceneration Units at this Facility does not excecd ten ( l0) MW, thc Seller shall
submit detailed, manufhcturer, verifiable data oithe Nameplate Capacity ratings
of the individual Generation Units to be installed at this Facility. Idaho Power
will verity that the data provided estabtishes the combined Nameplate Capacity
rating of the Ceneration Units to be installed at this Facility does not exceed ten
( l0) MW and determine iIthe Seller has satistjed thc Initial Capacity
Detennination.
4.1.4.2 [flths Maximum Capacity or the cumulative manuf'acture's Nameptate Capacity
Rating of the individual Ceneration LJnits at this Facility exceeds ten ( l0) MW,
ldaho Power will review all data submitted by Scller to determine if it is a
t0
Black Mesa Energy v. IPCo - Exhibit 6 - Page l3 of 98
4. t.5
4. r.6
4.1.7
4.r.8
4. t.9
reasonable sstimate that the F'acility will not excced len ( l0) avcrage monthly
MW in any month.
Nameplate Capacity Submit to ldaho Power manuthcturer's and engineering
docr-rmentation that establishes the Nameplate Capacity ot'each individual (ieneration t.Jnit
that is included within this entire Facility. The sum of the individual Generation Unit
Capacity ratings shall be equal to Facility Nameplate Capacity. Upon receipt of this data,
ldaho Power slrall review the provided data and dctermine if the Nameplate Capacity
specified is reasonable based upon the manufacturer's specified gcncration ratings for the
specitic Ceneration Units.
CompletioLn_r:srtificate - Submit a ceniflcate executed by an authorized agent olthe Seller
attesting that all mcchanical and electrical cquipment of the Facility has been cornpleted t<l
enablc the Facility to begin testing and delivery oITest Enerry in a safle manner.
lnsurance - Submit writtur proof to ldaho Power of all insurance required in Article Xlll.
lnterconnection - Provide written oont'irmation trom ldaho Power's business unit that
administers the CIA that Seller has satistied all interconnection and testing requirements
that will enable the Facility to be safely connected to the ldaho Power electrical system.
Desienated Network Resource ( DNR) - Confirm that the Seller's Facility has completed
all of the requirements to be an ldaho Power DNR capable oldelivering energy up to the
amount ot'the lVlaxirnum Capacity at the Point of Delivery.
4.1 .9. I As specitied in Appendix B item 7 of this Agreement, the Se[[er's Facility must
lrave achieved the status of being an ldaho Power DNR prior to ldaho Power
accepting anJ- energy tiorn this Facility. Appendix B item 7 provides
intbrmation on the initial application process required to enable ldaho Power to
determine ilnetwork transmission capacity is available tirr this Facility's
Maximum Capacity Amount and/or il ldaho Porver transmission network
Lrpgrades will be reqr-rirecl. '[he results olthis study process and any associated
il
Black Mesa Energy v. IPCo - Exhibit 6 - Page l4 of 98
5.r
5.2
costs wiI be included in the CIA tbr this Facility.
4.1 .9.2 After the Facility has completed all requirements oI the GIA that enable the
Facility to come online and at least thirty (30) days prior to the Scheduled First
Flnergy Date, ldaho Power will complete the process for approving the Seller's
Facility as an ldaho Power DNR. lf the Seller estimates that the actual First
Energy is expected to be diff-erent then the Scheduled First Energy Date specified
in Appendix B of this Agreement, the Seller must notifr ldaho Power of this
revised date no later than 30 days prior to Scheduled First Energy Date. The
Facility cannot deliver any energy to ldaho Power until it is approved as a DNR
after completing all the requirements of the GIA and complying with the
requirements of'this Agreement.
4, L I 0 Written Acceptaoce - Request and obtain written confirmation from ldaho Power that al I
conditions to acceptance of energy have been fulfilled. Such written confirmation shall be
provided within a commercially reasonable time fiollowing the Seller's request and will
not be unreasonably withheld by ldaho Power.
ARTICLE V: TERM AND OPERATION DA,I'E
'Ierm - Subject to the provisions of paragraph 5.2 below, this Agreement shall become effective on
the Eftective Date and shall continue in full florce and et'fect fbr a period of twenty (20) Contract
Years f'rom the Operation Date.
Operation Date - A single Operation Date will be granted tbr the entire Fasility and may occur
only after the Facility has achieved all of the flollowing:
a) At a minimum,TSon of'the [racility Nameplate Capacity as identified in Appendix B,
item. B-l has achieved a First Enerry Date.
b) Seller has demonstrated to ldaho Power's satisfhction that all mechanical and electrical
testing has been completed satisfactorily and the Faciliry is able to provide energy in a
t2
Black Mesa Energy v. IPCo - Exhibit 6 - Page l5 of 98
5.1
5.4
5.s
5.6
con$istent, reliable antl sa[e manncr.
c) t neineer's Certinca - Submit an exccutsd F.ngineer's Certitlcation of Design &
Construotion Adequacy and an Engineer's Clertification of Operations and Maintenancc
(O&M ) Policy as described in Commission Order No. 2 1690. I-hese ceftiflcates will
be in the form specitied in Appendix C bLrt may be moditied to the extent necessary to
recognize the dift'erent engineering disciplines providing the certiticates.
d) Seller has requested an Operation Date tiom ldaho Powcr in a written tbrmat.
e) Seller has received written confirmation from tdaho Power of the Operation Date. This
contlrmation will not be unreasonably withheld by ldaho Power.
Operation Date Delay - Seller shall sause the Facility to achieve the Operation Date on or betbre
the Scheduled Operation Date. Delays in the interconnection and transrnission network upgrade
study, design and construction process (This includes any delay in rnaking the required deposit
payments set tbrth in the Facility's CIA) that are not caused by ldaho Power or Force Majeure
events accepted by both Parties, shall not prevent Delay- Damages or Termination Damages trom
being due and owing as calsulated in accordance with this Agreement.
Termination - lISeller thils to achieve the C)peration Date prior to the Scheduled Operation Date,
such failure will be a Material Breach and shall subject the Seller to Delay Damages during the
Delay Cure Period. If Seller tails to ashieve an Operation Date by the end of the Delay Cure Period,
ldaho Power may immediately terminate this Agreement with no turther notice required.
Delay Damagrrs billinLand g4y1n9il ldaho Power shall calculate and submit to the Seller any
Delay Darnages duc ldaho Power within tittecrr ( l5) days alter the end oIeach month or within J0
days olthe date this Agreement is tcrminated by tdaho Power.
'Iermination Damaggs billins and payrnent - ldaho Power shall calculate and submit to the Seller
any 1'ermination Darnages due ldaho Power within thirty (30) clays after this Agreement has been
terminatecl.
Seller Payqcnt - Seller shall pay ldaho Power any undisputed Delay Damages or Termination
tl
5.7
Black Mesa Energy v. IPCo - Exhibit 6 - Page l6 of 98
Damages within seven (7) days of when ldaho Power presents these billirrgs to the Seller. Sellcr's t-ailure
to pay these damages within the specitied time will be a Material Breach of this Agreement.
6.1
ARI-ICLE YI: PURCHASE AND SALE OI' NET ENERGY
Nct Energy Purchase and Deliverl., - Except when either Party's pertbrmance is excused as provided
herein, Idaho Power will purchase and Seller will sell all of'the Net Energy to ldaho Power at the
Point of Delivery. All Inadvertent Energy produced by the Facility will also be delivered by the
Seller to ldaho Power at the Point of Delivery.
6.2 gstimatett Net gnerg -Neither the monthly Estimated Net Energy Amounts provided as
of,the Ellbctive Date nor the monthly Adjusted Estimated Net F.nergy Amount provided during the
term of this Agreement shall exceed ten (10) average monthly MW nor be greater than the
Ma.ximum Capacity Amount (measured in kW) multiplied by the hours in the applicable month.
6.2.1 Monthly Estimated Net Energy Amounts provided as ol the E,tTective Date of this
Agreement: The monthly b,stimated Net Energy Amount shall be detsrmined as the product
of (i) kwh for the applicable month specitied in the table below, multiplied by: (ii) the
Annual Factor fbr the applicable Contract Year specitied below.
Month kwh Averaqe kW
Season I
March 3,877,567 5.2
April 4,624,5t8 6.4
May 5,335,442 7.2
Season 2
July 5,909,079 7.9
August s,385,122 7.2
November 1,948,797 2.7
December 1.,435,385 1.9
Scason l June 5,611,145 7.8
September 4,459,257 5.2
t4
Black Mesa Energy v. IPCo - Exhibit 6 - Page l7 of 98
October 3,278,00L 4.4
January L,728,734 2.3
February 2,384,543 3.s
6.2.2
6.2.3
Year Annual Factor
L 99.50%
2 99.00%
3 98.50%
4 9e.o0%
5 9750%
6 97.OOo/o
7 96.50ot6
I 96.00%
9 95.5004
10 95.OOo/o
11 94.5oo/o
t2 94.00%
13 93.50o,/o
14 93.00%
15 92.500/6
15 92.0O%
L7 97.50%
18 9L.00%
19 90.50%
20 90.00%
Seller's Adjustment o[Estimated Net Enerry Amorlnts - Prior to the Operation Date. the
Seller may revise all of the previously provided Estimated Net Energy Amounts by
providing written notice to ldaho Power in accordance with paragraph 25. I
Seller's Adjustment of Estimated Net Energy Amounts After the Operation Date - After
the Operation Date, the Seller may revise any future rnonthly Estimated Net Energy
Amounts by providing written notice no later than 5 PM N{ountain Standard time <ln the
25'h day of the month that is prior to the rnonth to be revised. lf the 25'h day of the month
talts on a weekend or holiday, then written notice must be received on the tast business day
prior to the 25'h of the month. For example, if Selter would like to revise the Estimated Net
t5
Black Mesa Energy v. IPCo - Exhibit 6 - Page l8 of 98
6.3
7.1
Energy Amount for October, they would need to submit a revised schedule no later than
Scptember 25tl'or the last business day prior to September 25rr'.
a) This written notice must be provided to [daho Power in ac{.;ordance with
paragraph 25.1 or by electronic notice as agreed 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 tiom the
most recently provided Estimated Net Energy Amounts.
Failure to Deliver Minimum Amounts of Net Energ.v - Unless excused by an event of Force
Majeure or Idaho Power's inability to accept Net Energy, Seller's failure to deliver Net Energy in
any Contract Year in an amount equal to at least ten percent ( l0%) of the sum of the monthly
estimated Net Energy amounts in effect as of the Operation Date shall constitute an event of
default.
ARTICLE Vlt: PURCT{ASE PRICE AND METHOD OF PAYMENT
Surplus Energy - (l) Net Energy produced by the Seller's Facility and delivered to the ldaho
Power electrical system during the month which exseeds one hundred ten percent (l 10%) of the
monthly Adjusted Estimated Net Energy Amount for the corresponding month specilied in
paragraph 6.2, or (2) if the Net Energy produced by the Setler's Facility and delivered to the ldaho
Power electrical system during the month is [ess than ninety percent (90%) of the monthly
Adjusted Estimated Net Energy Amount tbr the corresponding month specitied in paragraph 6.2,
then all Net Energy delivered by the Facility to the ldaho Power electrical system fbr that given
month. or (3) atl Net Energy prodr.rced by the Seller's Facility and delivered by the Facility to the
ldaho Power electrical system prior to the Operation Date, or (4) all monthly Net Energy that
exceeds the Monthly Nameplate Energy.
Surplus Energy Price - F'or all Surplus Energy, ldaho Power shatl pay to thc Seller the current
l6
7.2
Black Mesa Energy v. IPCo - Exhibit 6 - Page 19 of 98
7.3
7.4
7.5
month's Market Energy Reference Price or the applicable Base Energy Purchase Price, whichever
is lower.
Base Energy - The Net Energy produced by the Selter's Facitity and delivered to the ldaho Power
electrical system after the Facitiry has achieved an Opcration Date which is greater or equal to
ninety percent (90%) and less than or equal to one hundred ten percent (ll0%) of the monthly
Adjusted Estimated Net Enerry Amount tbr the conesponding month specitied in paragraph 6.2.
Base Enerery Purchase Price- For all Base Energy received during a calendar month, (daho Power
will pay Seller the Base Energy Purchase Price as set fofth in Appendix D.
lnadvertent Energy -7.5.1 lnadvertent Energy is electric energy produced by the Facility, expressed in kWh,
which the Se ller delivers to ldaho Power at the Point of Delivery that exceeds ten
thousand ( 10,000) kW multiplied by the hours in the specific month in which the
energy was delivo.red. (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 lnadvertent Energy.)
7.5.2 Although Seller intends to design and operate the Facility to generate and deliver no
more than ten (10) average MW rnonthly and theretbre does not intend to generate
and deliver Inadvertent Energy. ldaho Power will accept lnadvertent Energy that does
not exceed the Maximum Capacity Amount but will not purchase or pay fbr
lnadvertent b.nergy.
7.5.3 Delivering [nadvertent Energy to ldaho Power lor 2 consecutive months and/or in any
3 months during a Contract Year will be a Material Breach of this Agreement and
ldaho Power rnay terminate this Agreement within sixty (60) days after the Material
Breach has occurred.
Payments Undisputed Base Energy and Surplus Energy payments, less any payments due to
ldaho Power will be disbursed to the Seller within thirty (30) days of the date which ldaho Power
l7
7.6
Black Mesa Energy v. IPCo - Exhibit 6 - Page 20 of 98
7.7
8.1
9.1
r0. I
rcceives and acccpts the documsntation olthe rnonthly Base F,nergy and Surplus Energy actually
delivered to ldaho Power as specitied in Appendix A.
Continuing Jurisdiction of the Commission - Ihis Agreement is a special contract and, as such,
the rates, terms and conditions contained in this Agreement will be construed in accordance with
ldaho Power Compan.y v. ldaho Public Utilities Commission and Afton Energ.v. lnc.. 107 ldaho
781,691 P.2d 427 ( lS84 ), ldaho Power Compan.v v. ldaho Public Utilities Commission, 107 ldaho
1122,695 P.2d I 261 (1985). Afton Enerel. lnc. v. ldaho PowerCr:mpanv, lll tdaho 925,729
P.2d 400 (1986), Section 210 of the Public Utility Rcgulatory Policies Act of 1978 and l8 CFR
$2e2.303-308
ARTICLE VII I: EN VIRONMENTAL ATTRIBUTES
Pursuant to Commission Order 32697 and 12802 the Environmental Attributes and Renewable
Enerry Certilicates as defined within this Agreement and directly associated with the production
of encrgr tiom the S,lller's Facility are owned by the Seller.
ARTICLE IX: FACILITY AND INTERCONNECTION
Design of F'acility - Scllcr will design, construct. install, own, operate and maintain the Facility and
any Seller-owned Interconnection Facilitics so as to allow sat-e and reliable generation, storage. and
delivery of Net Energy and lnadvertent Energy to the ldaho Power Point of Delivery lor the tutl
term of the Agreement in accordance with the G[A.
ARTICLE X:
M T.]1 [.]RI N(;. M T.]' IER ING C--OM M U N ICA ION S AN D SCADA T EL E M ET R Y
Metering - ldaho Power shall, provide. install, and maintain metering equipment needed tbr
mctering the electrical energy delivered ti'om the Facility. The metering equipment will be capable
of measuring, recording. retrieving and reporting the Facility's hourly gross electrical errergy
t8
Black Mesa Energy v. lPCo - Exhibit 6 - Page 2l of 98
delivery, Station [Jse. rnaxirnum energ]'deliveries (kW) and any othcr onergy msasurements at the
Point of Delivery that ldaho Power needs to adrrrinister this Agreement and intcgrate this Facility's
electricity delivered to the ldaho Po,,ver electrical system. Specific equipment, installation dctails
and requirements tbr this metering equipment will be established in the CilA process ancl
documented in the GtA. Setler shall be responsible tbr all initial and ongoing costs ol this
equipment as specified in Schedule 72 and the GlA.
10.2 Meterine Communications - Seller shalt, at the Seller's sole initial and ongoing expense, arange
tbr, providc.. install, and maintain dedicated metering communications equipment capable of
transmittingrhemeteringdataspecifiedinparagraph l0.ltoldahoPowerinafrequency,manner
and tbrm acceptable to tdaho Power. Seller shall grant ldaho Power sole control and use of this
dedicated metering communications equipment. Specific details and requircments fbr this metering
communisations equipment wilt be established in the CIA process and documented in thc ClA.
t0.3 Supervisory Controland Data Acquisiti@ - ln addition to the requrirements
of paragraph l0.l and 10.2, ldaho Power may require telemetry equipment and
telccommunications rvhich will be capable of providing ldaho Power with continuous
instantaneous SCADA telernetry of the Seller's Net Energy and lnadvertent Energy production in
a fbrm acceptable to tdaho Power. Seller shall grant ldaho Power sole sontrol and use of,this
dcdicatcd SCADA and telecommunications equipment. Specitic details and requirements tbr this
SCADA Telenretry and [elecommunications equipment will be established in the CIA process
and documerrtcd in thc GtA. Seller shall be responsiblc for all initial and ongoing costs of this
equipment as specified in Schedule 72 and the CIA.
ARTICLE Xl - &ECORDS
ll.l lvlaintenanceot'Records - Seller shall maintain monthly records at the Facility or such other
locatiorr mutually acceptable to the Parties. T'hese records shall include total generation, Nct
Energy, Station Use, Surplus Energy, Inadvertent Encrgy and maximrlm hourly generation (kW)
l9
Black Mesa Energy v. IPCo - Exhibit 6 - Page 22 of 98
and be recorded in a form and content acceptable to ldaho Power. Monthly records shall be retained
fior a period ofnot less than tive years.
ll.2 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, lnadvertent E,nergy and maximum generation
(kW) records pertaining to the Seller's Facility.
ARTICLE XII: OPERATIONS
l2 .I Communications - ldaho Power and the Seller shall maintain appropriate operating
communications through ldaho Power's Designated Dispatch Facility in accordance with the GlA.
12.2 Acceptance of Energy -
lz.2.l ldaho Power shall be excused lrom accepting and paying lor Net F.ncrgy or accepting
lnadvertent Energy which would have otherwise been produced by the Facility and
delivered by the Seller to the Point of Delivery:
a.) lt'energy deliveries are intemrpted due an event of Force Majeure or
Forced Outage.
b.) lf interruption olgeneration deliveries is allowed by Section 210 of the
Public LJtility Regulatory Policies Act of t978 and t8 CIFR $292.104
c.) [f temporary disconnection and/or interruption of generation deliveries is
in accordance with ScheduleT2 or other provisions as specified within the
ctA.
d.) If ldaho Power determines that curtailment, interuption or reduction of
Net Energy or lnadvertent Energy deliveries is necessary because of line
construction, electrical system maintenance requirements, emergencies,
electrical system operating conditions, electrical system reliability
20
Black Mesa Energy v. IPCo - Exhibit 6 - Page 23 of 98
t2.2.2
12.2.3
12.2.4
omcrgencies on its system. or as otherwise required by Prudent Electriual
Practices.
lf in the reasonable opinion of tdaho Power, Seller's operation of the Facility or
lnterconnection Faci[itics is trnsaf'e or may otherwise adversely atfbct ldaho Power's
equipment, personnel or scrvice to its customers, Idaho Power may temporarity disconnect
the Facility from ldaho Power's transmission/distribution system as spccil'ied within the
GIA or Schedule 72 or take such other reasonable steps as ldaho Power dcems 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 Amor"rnt at an) moment in
time. Seller's failure to limit deliveries to the Maximum Capacity Amount will be a
Matcrial Breach of this Agreement.
lf ldaho Power is unable to accept the generation firom this Facility and is not excused from
accepting the Facility's generation, Idaho Power's darnages shall be limited to only the
value ot'the estimatcd gcneration that ldaho Power was unable to accept valued at the
applicable generation prices specified in this Agrccment. ldaho Power will have no
responsibility to pay tbr any other costs. lost revenr.re or consequential damages the Facility
may incur.
12.3 Scheduled lvlaintenance - On or befbre January 3l" of each calendar year, Seller shall submit a
written proposed maintenance schedule of signiticant Facility maintenance for that calendar year
ancl ldaho Power and Seller shall mutually agree as to the acceptability olthe proposed schedule.
lf the Seller intends to perform planned maintenance at approximately thc same time every year,
the Seller may subrnit a maintenance schedule tbr the tlrst calendar year and include a statement
that this maintenance schedule shall be sonsistent fbr all tuture years, until such time as the Seller
notitlcs ldaho Power ola change to this schedr.rle. The Parties detennination as to the acceptability
of the Seller's tirnetable fbr scheduled maintcnarrce will take into consideration Prudent Electrical
2t
Black Mesa Energy v. lPCo - Exhibit 6 - Page 24 of 98
Practices, ldaho Power syste m requirements and the Seller's prctbrred schedule. Neither Party shall
unreasonably withhold acceptance of the proposed maintenance schedule.
12.4 ldaho Power Maintenance lntbrmation - Upon receiving a written request ttom the Seller, Idaho
Power shall provide publicly available irrfbrmation in regards to ldaho Power planned maintenance
information that may impact the Facility.
12.5 Contact-PriortoCurtailment - ldaho Power will make a reasonable attempt to contact the Seller
prior to interrupting the interconnection or curtailing detiveries from the Seller's Facility. Seller
understands that in the case of emergency circumstances, real time operations of the electrical
system, and/or unplanned events. ldaho Power ma,v not be able to provide notice to the Seller prior
to interruption. curtailment, or reduction of electrical energy deliveries to Idaho Power.
r3.l
tt.2
r4. I
ART ICL E X ( I I : IN DEMN I F ICAT ION :\NL INS i.l&\NeE
lndemnitication - Each Party shall agrce to hold harmless and to indemnity the other Party, its
oiflcerc, agents, af1iliates, subsidiaries. parent company and emptoyees against all loss, damage.
expense and tiability to third persons for injury to or death of person or injury to property,
proximately caused by the indemnifying Party's, (a) construction, ownership, operation or
maintenance ot, or by tailure of-, any of such Party's works or facilities used in connection with this
Agreemcnt. or (b) negligent or intentional acts, errors or omissions. The indemnitying Party shall,
on the other Party's request, det'end any suit asserting a claim covered by this indemnity. The
indemnitying Party shall pay all documented costs. including reasonable attorney t-ees that may be
incurred by the other Party in enforcing this indemnity.
lnsurance - During the term of this Agreement. Seller shall secure and continuously carry insurance
a-s specitied in Appendix E
AR I ICLE XIV: FORCH IvIAJEURE
As used in this Agreement, "Forcc Majeure" or "'an event of Force Majeure" means any cause
22
Black Mesa Energy v. IPCo - Exhibit 6 - Page 25 of 98
beyondthecontrol of theselterorof Idaho Powerwhich.despitetheexerciseof duediligence.
such Party is unable to prevent or overcome. Force Majer.rre includes, but is not limited to, acts of
God, fire, flood, storms, wars, hostilities, civil strif'e. strikes and other labor disturbances,
earthquakes, tires, tightning, epidemics, sabotage. or changes in law or regulation tlccurring after
the effeqtive date, which. by the exercise of reasonable loresight such party could not reasonably
have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome.
Fluctuations an<Vor changes of the motive tbrce and/or the t'ue[ supply tre oot events of Force
Majeure. If either Party is rendered wholly or in part unable to pertbrm its obligations under this
Agreement because of'an event of Force Majeure, both Parties shall be excu.sed t'rom whatever
pertbrmance is affected by the event of Force Majeure, provided that:
(l)The non-perfbrming Party shall. as soon as is reasonably possible after the
occurrence of the Force Majeure, give the other Party written notice describing the
particulars of the occurrence.
'[he suspension of per"tbrmance shall be of no greater scope and of no longer
duration than is required by the event of Force Majeure.
No obiigations of either Party which arose before the occttrrence of the Force
Majeure event and which sould and should have been fully pertbrmed betbre such
occurrence shall be excused as a result ofsuch occurrence.
(3)
ARTICLE XV: LIABILI'tY: DEDICA-|'!ON
Limitation of Liability. Nothing in this Agreement shall be construed to create any duty to, any
standard of care with ret'erence to, or any liabitity to any person not a Party to this Agreetnent.
Neither party shall be liable to the other for any indirect, special, consequential. nor punitive
damages, except as expressly authorized by this Agreement.
2]
(2)
r5. I
Black Mesa Energy v. IPCo - Exhibit 6 - Page 26 of 98
r5.2 Dedication. No undertaking by one Party to the other under any provision of this Agreement shall
constitute the dedication of that Party's system or any portion thereof to the Party or the public or
attbct the status of ldaho Power as an independent public utility corporation or Seller as an
independent individual or entity.
t6. r
ARTICLE XVI: SEVERAL OBLIGATIONS
Except where specifically stated in this Agreement to be otherwise, the duties, obligations and
liabilities of the Parties are intended to be several and not joint or collective. Nothing contained
in this Agreement shall ever be construed to create an association, trust, pnrtnership orjoint
venture or impose a trust or partnership duty, obligation or liability on or with regard to either
Party. Each Party shall be individually and severally liable flor its own obligations under this
Agreement.
ARTICLE XV[I: WAIVER
17 .l Any waiver at any time by either 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-I.ICLE XVIII:CHOICE OF LAWS AND VENUE
l8.l This Agreement shall be construed and interpreted in accordance with the laws of the State of
Idaho without relerence to its choice of law provisions.
18.2 Venue l'or any Iitigation arising out of or related to this Agreement will lie in the District Court of
the Fourth Judicial District of'ldaho in and for the County of Ada.
ARTICLE XIX: DISPUT.ES AND DEFAULT
Disputes - All disputes related to or arising under this Agreement, including, but not limited to, the
interpretation of the terms and conditions oIthis Agreement, will be submitted to thc appropriate
24
t9. I
Black Mesa Energy v. IPCo - Exhibit 6 - Page 27 of 98
authority lor resolution.
19.2 Notice o[Default
19.2.1 Dethults. lf either Party fails to perform any of the terms or conditions of this
Agreement (an'"event ofdetbult"), thc non-delaulting Party shall cause notice in writing
to be given to the defaulting Party, specifying the manner in which such dethult
occurred. Ilthe det-aulting Party shall t'ail to cure such default within the sixty (60) days
atter service of such notice, or if the defaulting Party reasonably demonstrates to the
other Party that the def-ault can be cured within a commercially rsasonable time but not
within such sixty (60) day period and then thils to diligently pursue such cure, then the
non-dethulting Party may, at its option, terminate this Agreement and/or pursue its legal
or equitable remedies.
19.2.2 Material Breaches - The notice and cure provisions in paragraph 19.2.1 do not apply to
defhults identitied in this Agreement as Material Breaches. Material Breachcs must be
cured as expeditiously as possible fbllowing occurrence of the breach or if a specific
cure and/or inabitity to cure is identit'ied by this Agreement lor the specific Material
Breach then that cure shall apply.
19.3 Prior to the Operation Date and thereafter tbr the full term of this Agreement, Seller will provide
ldaho Power with the following:
l9.l.l lnsurance - L,vidence of compliance with the provisions of Appendix E. lf Seller tails
to comply, such failure will be a Material Breach.
19.3.2 Engineer's Certitjcations - Every three (3) years after the Operation Date, Seller will
supply [daho Power with a completed Certification of Ongoing Operations and
Maintenance lbrm as specified in Appendix C. The certification will be ttom a
Registered Protbssional Engineer licensed in the State of ldaho. Seller's failure to
supply the required certificate wilt be an event of detault. Such a default may only be
cured by Seller providing the required certiticate; and
25
Black Mesa Energy v. lPCo - Exhibit 6 - Page 28 of 98
20. I
2r.t
22.1
19.1.3 [,icenses / Permits]-Determinations - During the f'ull term ot'this Agreement. Seller
shall maintain compliance with all permits. liccnses and determinations describecl in
paragraph 4.1.1 of this Agreement. ln addition, Seller will supply ldaho Power with
copies of any new or additional pennits, licenses or determinations. At least every tifth
Contract Year, Seller will update the documentation described in Paragraph 4.1 . I . ll at
any time Sellcr tails to maintain compliance with the permits, licenses and
determinations described in paragraph 4. l.l or to pn:vidc the documentation required
by this paragraph, such fhilure will be an event of detault and may only be cured by
Seller submitting to ldaho Por,ver evidence of compliance tiom the permitting agency.
ARTICLE XX: COVERNMENTAL AUTHORIZATION
This Agreement is subject to the jurisdiction of'those governmental agencies having control over
either Party oIthis Agreement.
ARI.ICLE XXI: COMMISSION ORDER
ldaho Power shall file this Agreement tbr its acceptance or rejection by the Commission. -[his
Agrcement shall only become tinally effective upon the Commission's approval of all tcrms and
provisions hereolwithout change or condition and declaration that all payments to be made to
Seller hereunder shall be allowed as prudently incurred expenses tbr raternaking purposes.
ARTICLE XXII: SUCCHSSORS AND ASSICNS
This Agreement and shall be binding upon and inure to the benetit ot'the respective successors and
assigns of the Parties hereto. Neither this Agreement nor any rights or obligations oleither Party
hereunder may be assigned. in whole or in part, by operation of law or otherwise. rvithout the prior
written consent of both Parties, which consent shall not be unreasonably withheld. Any party with
'uvhich ldalro Power may consolidate, nlerge, convey or transf'er substantially all olits electric Lrtility
assets, shall ar,rtomatically. without firrther act, and without neetl ot'consent or approval by thc
26
Black Mesa Energy v. IPCo - Exhibit 6 - Page 29 of 98
Seller, succeed to all of ldaho Power's rights, obligations and interests under this Agreement. Any
purported assignmcnt in derogation of the tbregoing shall be void. This article shall not prevent a
financing entity with recorded or secured rights from exercising all rights and remedies available
to it under law or contract. [daho Power shall have the right to be notified by the financing entity
that it is exercising such rights or remedies.
AE.TICLE XXlll: MODIFICATION
23.l No moditication to this Agreement shall be valid unless it is in writing and signed by both Parties
and subsequently approved by the Commission.
AR.IICLE XXIV: TAXES
24.1 Each Party shall pay before delinquency all taxes and other governmental charges which, if failed
to be paid when due, could result in a lien upon the Facility or the Interconnection Facilities.
ARTICLE XXV: NOTTCES ANP AUTHORIZED AGENTS
25.1 Notices - Ail written notices under this Agreement shall be directed as follows and shall be
considered delivered when faxed, e-mailed and confirmed with deposit in the U.S. Mail, first-
class, postage prepaid, as tbllows:
To Seller:
Ori{dnal document to:
Black Mesa Energy, LLC
Brian Lynch
PO Box 273 I
Palos Verdes,CA90274
Telephone: 3 l0-7 50-7796
E-mai I : l l.r' :r:l tr.;a rcr.lw (x)r letlct'3,) .:() m
Orieinal document to:
27
To tdaho Power:
Black Mesa Energy v. IPCo - Exhibit 6 - Page 30 of 98
Vice President, Power Supply
ldaho Power Company
PO Box 70
Boise, Idaho 83707
Emai I : energy [e-mail]
Copy of document to:
Cogeneration and Small Power Production
ldaho Power Company
PO Box 70
Boise,ldaho 83'lO7
E-mai I : [e-mail]
Either Party may change the contact person and/or address information listed above, by providing
written notice from an authorized person representing the Party
25.2 AuthorizedAgent(s)
Name
Brian
26.t
Title
(i) MMana
Lvnc ger
b
The Seller may modity the Authonzed Agents by requesting and cornpleting an Authorized
Agent form provided by ldaho Power. This document will include the rsquested changes and
require signatur{s) from an authorized party of the Seller.
ARTICLE XXVI: ADDITTONAL TERMS AND CONDI'IIONS
Equal Enlplovment, During performance, pursuant to this Agreement, Seller agrees to comply
with all applicable equal employment opportunity, small business, and afTirmative action laws
and regulations. All Equal Employment Opportunity and aftirmative action laws and regulations
are hereby incorporated by this ret-erence, including provisions of l8 U.S.C. 5 4212, Executive
Order I I 246, as amended, and any subsequent executive orders or other laws or regulations
28
Black Mesa Energy v. IPCo - Exhibit 6 - Page 3l of 98
relating to equal opportunity for enrployrnent on government contracts. To the extent this
Agreement is covered by Executive Order I 1246, the Equal Opportunity Clauses contained in 4l
C.F.R.60-1.4,4l C,F.R.60-250.5, and 4l CFR 60-741.5 are incorporated herein by ret'erence.
26.2 Prior to the Seller executing this Agreement, the Seller shall have:
a) Submitted an interconnection application flor 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 adequate firm transmission capacity to enable the project to be classified as an
ldaho Power DNR. If final interconnection or transmission studies are not complete at the
time the Seller executes this Agreement, the Seller understands that the Seller's obligations
to pay Delay Damages and'lermination Darnages associated with the project's fbilure to
achieve the Operation Date by the Scheduled Operation Date as specified in this Agreement
is not relieved by tinal interconnection or transmission costs, processes or schedules.
c) Provide acceptable and verifiable evidence to ldaho Power that demonstrates the Facility
is eligible tbr the published avoided costs requested by the Seller and contained within
this Agreement. Commission Order 34062 effective June I , 2018, provides the current
published avoided costs fbr Non-Seasonal Hydro Facilities, Seasonal Hydro Facilities,
Other Facilities, Solar Facilities, and Wind Fasilities. Commission Order 32697 provides
fbr full capacity payments flor existing projects that have requested replacement contracts
af'ter their existing contract expires-
26.3 This Agreement includes the tbllowing appendices, which are attached hereto and included by
ref'erence:
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Ceneration Schedul ing and Reporting
Facility and Point of Delivery
Engineer's Certitications
Energy Prices
lnsurance Requirements
29
Black Mesa Energy v. IPCo - Exhibit 6 - Page 32 of 98
ARTICLE XXVII: SEVERABILITY
27.1 The invalidity or unenforseability of any term or provision of this Agreement shall not affect the
validity or enforceability of any other terms or pnrvisions and this Agreement shall be construed
in all other r€spects as if the invalid or unenforceable term or provision were omitted.
ARTICLE XXVIII: COUNTERPARTS
28.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.
30
Black Mesa Energy v. IPCo - Exhibit 6 - Page 33 of 98
29.1
By
ARTICLE XXIX; ENTIRE ACREEMENT
This Agreement constitutes the entire Agreement of the Parties concerning the subject matter
hereof and supersedes all prior or contemporaneous oral or written agreements between the
Parties conceming the subject matter hereof'.
IN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed
in their respective names on the dates set forth below:
Idaho Power Company Black Mesa Enerry, LLC
By
Brian Lynch
Manager
Dated lt2GtAO
"ldaho Power""Seller"
3t
Dated
Black Mesa Energy v. IPCo - Exhibit 6 - Page 34 of 98
APPENDIX A
A -I MONTHLY POWER PRODUCTION AND SWITCHINC REPORT
At the end of each month the following required documentation will be submitted to:
ldaho Power Company
Attn: Cogeneration and Small Power Production
PO Box 70
Boise, [daho 83707
The meter readings required on this report will be the readings on the ldaho Power meter equipment
measuring the Facility's total energy deliveries and Station Usage delivered to ldaho Power and the
maximum delivered energy (kW) as recorded on the metering equipment and/or any other required energy
measurements to adequately administer this Agreement. This document shall be the document to enable
ldaho Power to begin the enerry payment calculation and payment process. The meter readings on this
report may not be used to calculate the actual payment, but instead will be a check of the automated meter
reading information that will be gathered as described in item A-2 below:
3Z
Black Mesa Energy v. IPCo - Exhibit 6 - Page 35 of 98
Project Name
Address
City
Meter Number:
End of Month kWh Meter Reading:
Beginning of Month kWh Meter:
Difference:
Times Meter Constant:
kWh for the Month:
Metered Demand:
Breaker Opening Record
Date Time Meter
*@
I Lack of Adequate Prime Mover
2 Forced Outage of Facility
3 Disturbance of [PCo System
4 Scheduled Maintenance5 Testing of Protection Systems6 Cause Unknown7 Other (Explain)
klaho Power Company
Cogeneration and Small Power Production
MONTHLY POWER PRODUCTION AND SWITCHING R.OPORT
Month Year
Project
Phone Number:
State zip
Facility
Outout
Station
Usase
Metered
Maximum
kw
Net Generation
Breaker Closing Record
Date Time Meter
I hereby certify that the above meter readings
arc true and correct as of Midnight on thc last day
of the above month and that the switching record is
accurate and complete as required by the Energy
Sales Agreement to which I am a Party.
Signature Date
33
Reason
Black Mesa Energy v. IPCo - Exhibit 6 - Page 36 of 98
A.2 AUTOMATED METER READTNC COLLECTION PROCESS
Monthly, Idaho Power will use the provided metering and telemetry equipment and processes to collect
the meter reading information C.o* tt" Idaho Power provided metering equipment that measures the Net
Enerry and energr delivered to supply Station Use for the Facility recorded at l2:00 AM (Midnigh$ of
the last day of the month.
The meter information collected will include energy deliveries, Station Use, the maximum delivered
power (kW) and any other required energy measurements to adequately administer this Agreement.
A.3 SELI,ER CONTACT INFORMATION
Sel ler's Contact [nformation
Proiect Management
Name:
Telephone Number:
Cell Phone:
E-Mail:
24-Hour Proiect Ooerational Contact
Brian Lynch
310-750-77e6
3la-750-7796
bly [e-mail]
Brian Lynch
310-750-7796
310-75A-7796
blynch@redw oodenergy.com
Brian Lynch
310-750-77q6
3ta-750-7796
blynch@redwoodenergy. com
Name:
Telephone Number:
Cell Phone:
E-Mail:
Proiect On-site Contact in formation
Name:
Telephone Number:
Cell Phone:
E-Mail:
34
Black Mesa Energy v. IPCo - Exhibit 6 - Page 37 of 98
l5
Black Mesa Energy v. lPCo - Exhibit 6 - Page 38 of 98
APPENDIX B
FACILITY AND POINT OF DELIVERY
Project Name: Black Mcsa Energy I
Project Number:
B.I DL]SCRIPTION OF FACILITY
The expected design of the system will consist of an energy storage system that is charged by
renewable enerry and discharged to ldaho Power at the point of delivery. The system will have a
nameplate capacity of 20 MW-AC as measured at the point of interconnection with 0.95
leading/lagging power factor. The energy storage system will consist of chemical (e.g. lithium-ion)
or mechanical (e.g. tlywheel) energy storage devices that will be connected in series and parallel
combination to either the AC bus of the Facility via Power Conversion Systems (PCS) that convert
bidirectional between DC and AC electricity or to the DC bus of the Facility within the generation
system via DC/DC converters. Renewable energJ will be supplied by approximately 28 MW-DC
oFsolar PV modules mounted on single-axis tracking connected in series and parallel combination
to solar inverters that convert DC electricity to AC. The energy storage system and renewable
energJ generation will be controlled and automated by a plant-controller and SCADA system that
actively monitors energy production, battery state-ot'-charge, and other variables of the system to
determi ne charge and discharge firncti onal ity.
Facitity Nameplate Capacity: 20 MW-AC
B-2 LOCATION OF F'ACILITY
Near: Glenn's Ferry, ldaho
Actual or nearest physical street address; 5498 E. Black Mesa Rd., King Hitl, ID 83633
CPS Coordinates: Latitude Decimal Degrees 42.906403
Longitude Decimal Degrees -l t 5. 182598
State: ldaho County: Elmore
Description of'lnterconnection Location: ldaho Power Black Mesa Substation
B-3 SCI{EDULED FIRST ENERGY AND OPERATTON DATE
First Enerry Date: May 1,2023
Operation Date: Jr.rne 1,2023
36
B-4 MAXIMUM CAPACITY AMOL'NT
Black Mesa Energy v. IPCo - Exhibit 6 - Page 39 of 98
B-5
B-6
Tlre tnaxirnum capacity amount is 20 MW-AC which is consistcnt witlr the value provided by the
Seller to ldaho Powcr in accordance with the ClA. I'his value is the maximum cnergy (kW) that
potentially could be delivered by thc Seller's Facility to the ldaho Power electrical system at any
moment in time.
POINT OF DET,IVERY
"Point ofl Dclivery" means, unless otherwise agreed by both Parties, the point of whcre thc
Seller's Facitity energy is delivered to the ldaho Power electrical system. The CIA will determine
the spccific Point of Delivery fbr this F'acitity. Ihe Point of Delivery identit'ied by the CIA will
become an integral part of this Agreement.
LOSSES
It'the ldaho Power Metering equipmcnt is capable of measuring the exact energy deliveries by thc
Seller to the ldaho Power t'lectrical system at the Point of Delivery, no Losses will be calculated
tbr this F'acitity. lf the ldaho Power Metering F)quipment is unable to measure the exact energy
deliveries by the Seller to the ldaho Power electrical systern at thc Point of Delivery, a Losses
calculation will be established to measure the energy losses (kWh) between the Seller's Facility
and the ldaho Power Point ol Delivery. This loss calculation will be initially set at 270 of the kWh
energJ production recorded on the Facility generation metering equipment. At sr-rclr time as Seller
provides ldaho Power with the electrical equipment specifications (transtbrmer loss specitications,
conduutor sizes, etc.) of all of the electrical equipment between the Facility and the ldaho Power
electrical systcm. Idaho Power wilI configure a revised loss calculation formula to be agreed to by
both parties and used to calculate the kWh Losses tbr the remaining term of the Agreement. If at
any time during thc term olthis Agreement, ldaho Power determines that the loss calculation does
not corectly retlect the actual kWh losses attributed to the electrical equipment between the
Facility and the ldaho Power electrical system. [daho Power may adjust the calculation and
retroactively adjust the previous rnonth's kWh loss calculations.
37
Black Mesa Energy v. IPCo - Exhibit 6 - Page 40 of 98
B-7 DESTCNATED NETWORK RESOURCE (DNR)
'this Facitity is an ldaho Power DNR pursuant to an existing energy sales agreement. The DNR
statuswill continueifthisAgreement[s l)executedandapprovedbytheCommission 2)aClA
has been executed by both parties and 3) the Scllsr is in compliance with all requirements of that
CIA.
Idaho Power cannot accept or pay for generation from this Facility if the Facility has not achieved
the status of being an [daho Power DNR. Federal lJnergy Regulatory Commission ("FERC")
rules require ldaho Power to prepare and submit the application to achieve DNR status for this
Facility. Because much of the information ldaho Power needs to prepare the DNR application is
specific to the Seller's Facitity, [daho Power's ability to tile the DNR application in a timely manner
is contingent upon timely receipt of the required intbrmation fiom the Seller. Prior to ldaho Power
beginning the process to enable ldaho Power to submit a request for DNR status for this Facility.
the Seller shall have I ) filed a Ceneration lnterconnection 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 contlrmation 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 [daho 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 ofany action or inaction by the Seller.
i8
Black Mesa Energy v. IPCo - Exhibit 6 - Page 4l of 98
APPENDIX C
ENCINEER'S CERTIFICATION
oF'
OPERATIONS & MAINTENANCE POLICY
The undersigned on behalf of himself/herself and
hereinafter collectively referred to as "Engineer,'' hereby states and certifies to the Seller as
tbllows:
l. That Engineer is a Licensed Professional Engineer in good standing in the State of ldaho.
2. That Engineer has reviewed the Energy Sales Agreement, hereinafter ret'erred to as the
"Agreement," between ldaho Power as Buyer, and as Seller, dated
3. That the cogeneration or small F)wer production project which is the subject of the Agreement and
this Statement is identified as ldaho Power Company Facility No.
referred to as the "Project."
and is hereinafter
4'ThattheProject,whichiscotnmonlyknownaSthe-Project'islocatedin
Section Township Range Boise Meridian.
-
County, ldaho.
5. 'Ihat Engineer recognizes that the Agreement provides tbr the Project to t-umish electrical energy
to ldaho Power tbr a _ year period.
6. That Engineer has substantial experience in the design, consftuction and operation of electris power
plants of the same type as this Project.
7. That Engineer has no economic relationship to the Design Engineer of this ftoject.
8. That Engineer has reviewed and/or supervised the review of the Policy flor Operation and
Maintenance ("O&M') tbr this Project and it is his profbssional 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
39
Black Mesa Energy v. tPCo - Exhibit 6 - Page 42 of 98
producing at or near the design electrical output, efficiency and plant factor tbr the flull Contact Term of
yean}.
9. That Engineer recognizes that ldaho Power, in accordance with paragraph 5.2 of the Agreement. is
relying on Engineer'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
hiVher knowledge and therefore sets his/trer hand and seal below.
By
(P.8. Stamp)
Date
40
Black Mesa Energy v. IPCo - Exhibit 6 - Page 43 of 98
and
APPENDTX C
ENCTN EER'S CERTIFICATION
OF
ONGOING OPERATIONS AND MAINTENANCE
The undersigned on behalf of himseltTherself
hereinafter collectively referred to as "Engineer," hereby states and
certifies to the Seller as flollows:
I . That Engineer is a Licensed Protbssional Engineer in good standing in the State of ldaho.
2. That Engineer has reviewed the Enerry Sales Agreement, hereinafter referred to as the
"Agreement," between ldaho Power as Buyer, and as Seller, dated
3. That the cogeneration or small power production project which is the subject of the Agreement and
this Statement is identit'ied as ldaho Power Company Facility No.and herei nafter ret'erred
to as the "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 tbr the Project to fumish electrical energ]
to ldaho Power tbr a --.- year period.
6. That Engineer has substantial experience in the design, construction and operation ofelectric power
plants of the same type as this Project.
7 - That Engineer has no economic relationship to the Design Engineer of this Project.
4t
Black Mesa Energy v. IPCo - Exhibit 6 - Page 44 of 98
8. That Engineer has made a physical inspection of said Project. its operations and maintenance
records since the last previous certified inspection. 'Ihe 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 proflessional opinion that if adherence to said O&M Policy continues, the Project will
continue producing at or near its design electrical output, et1iciency and plant flactor for the remaining
years of the Agreement.
9. That Engineer recognizes that ldaho Power, in accordance with paragraph 5.2 of the Agreement,
is relying on Engineer's representations and opinions contained in this Statement.
10. That Engineer certities that tlre 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.8. Stamp)
Date
42
Black Mesa Energy v. IPCo - Exhibit 6 - Page 45 of 98
APPENDIX C
ENCINEER'S CERTIFICATION
OF
DESICN & CONSTRUCTION ADEQUACY
The undersigned _, ofl behalf, of himselfTherself and
hereinafter collectively reflerred to as "Engineer", 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 Engineer has reviewed the Energy Sales Agreement, hereinafter ret'erred to as the
"Agreement", between ldaho Power as Buyer, and as Seller. dated
3 That the cogeneration or small power production project, which is the subject of the
Agreement and this Statement, is identified as ldaho Power Company Facility No and
is hereinafter retbned to as the "Project".
4. That the Project, which is commonly known as the Project, is located in
Section Township Range Boise Meridian,County. ldaho
5.That Engineer recognizes that the Agreement provides tbr the Project to furnish electrical
energy to ldaho Power tbr a year period.
6. That Engineer has substantial experience in the design. construction and operation of
electric power plants of the samc type as this Project.
7. That Engineer has no economic relationship to the Design Engineer of this Project and has
rnade the analysis of the plans and specifications independently.
8. That Engineer has reviewed the engineering design and construction of the Project,
including the civil work. electrical work, generating equipment. prime mover conveyance system, Seller
furnished lnterconnection Facilities and other Project tbcilities and equipment.
43
Black Mesa Energy v. tPCo - Exhibit 6 - Page 46 of 98
9. That the Project has been constructed in accordance with saicl plans and specifications, all
applicable codes and consistent with Prudent Electrical Practises 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 maintenance practices by Seller, the Project is capable of perfbrming in accordance with the
terms of the Agreement and with Prudent Electrical Practices for a
-
year period.
ll. That Engineer recognizes that ldaho Power, in accordance with paragraph 5.2 of the
Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and
opinions contained in this Statement.
12. 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.8. Stamp)
Date
44
Black Mesa Energy v. IPCo - Exhibit 6 - Page 47 of 98
APPENDIX D
ENERGY PRICES
(Prices based upon the Non-Levelized, Non-Fueled Avoided Cost Rates fbr Other Projects as posted by
the ldaho Public Utilities Commission dated June I, 2019)
D-l Base Ener$r Purchase Price - For all Base Energy received during a calendar month, Idaho Power
shall pay Seller the product of (i) the Calendar Energy Price specitied below for the applicable
delivery yeaq multiplied by (ii) the Seasonal Factor specified below for the applicable delivery
month (such product the "Base f,nergy Purchase Price").
Year
Calendar Enerry
Price
6lt4u,hl
2023 32.84
2424 35.76
2425 38.52
2026 62.7
2027 63.97
2028 65.23
2429 67.44
2030 69.15
2A3t 70.54
2032 73.36
2033 75.51
2034 77.62
2035 79.66
2036 81.97
2037 83.75
2038 85.54
2039 87.67
2040 90.47
204t 92.L7
2042 94.L
45
Black Mesa Energy v. IPCo - Exhibit 6 - Page 48 of 98
Montb Seasonrl Factor
Jan 1.00
Feb 1.00
Mar 4.74
Apr 0.74
May o.74
Jun 1.00
Ju!t.20
Auc L.20
Seo 1.00
Oct x.00
Nov 1.20
Dec t.20
46
Black Mesa Energy v. IPCo - Exhibit 6 - Page 49 of 98
APPENDIX E
INSURANCE REQU IREMEN'I'S
The Seller shall secure and continuously carry insurance as specifted within this Appendix for the term of
the Agreement.
lnsurance Requirements:
l. AlI insurance required by this Agreement shall be placed with an insurance company with an
A.M. Best C-'ompany rating of A- or befter.
2. lf the insurance coverage required in this Appendix is cancelled, materially changed or lapses
tbr any reason. the Seller will immediately notify ldaho Power in writing. This notice will
advise ldaho Power of the specitic 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 5 days of the cancellation, material
change or lapse will constitute a Material Breach and ldaho Power may terminate this
Agreement.
3. Prior to the First Encrgy date and subscquently within l0 days of the annual anniversary of the
Operation Date, the Seller shall provide a Certificate of Insurance in the name of ldaho Power
Company and list ldaho Power Company as an Additional [nsured Endorsement and Waiver
of Subrogation Endorsement.
4. The Cenificate of lnsurance shall evidence the appropriate insurance coverage ofl
Comprehensive Ceneral Liability lnsurance lor both bodily injury and property damage with
Iimits equ,al to $1,000,000, each occurence, combined single limit. The deductible tbr such
insurance shall be consistent with current Insurance Industry Utility practices for simitar
property.
47
Black Mesa Energy v. IPCo - Exhibit 6 - Page 50 of 98
Article
EN ERGY SALES AGREEMEN'I
BETWEEN
IDAHO POWERCOMPANY
AND
BLACK MESA ENERGY, T,I.,C
TABLE OF CONTENTS
"t'tT'LE
Definitions
No Reliance on ldaho Power
Warranties
Conditions to Acceptance of Enerry
Term and Operation Date
Purchase and Sale of Net Energy
Purchase Prise and Method of Payment
Envi ronmental Anributes
Facility and Interconnection
Metering, Metering Communications and SCADA Telemetry
Records
0perations
lndemnifi cation and lnsurance
Force Majeure
Liability; Dedication
Several Obligations
Waiver
Choice of Laws and Venue
Disputes and Det'ault
Governmental Authorization
Commission Order
Successors and Assigns
Modification
Taxes
Notices and Authorized Agents
Additional Terms and Conditions
Severability
Counterparts
Entire Agreement Signatures
I
,)
3
4
5
6
7
8
9
l0
ll
t2
l3
l4
l5
l6
t7
l8
t9
20
2l
22
23
24
25
26
27
28
29
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Generation Scheduling and Reporting
Facility and Point of Delivery
Engineer's Certifi cations
Generation Prices
lnsurance Requirements
Black Mesa Energy v. IPCo - Exhibit 6 - Page 5l of 98
FIRM CENERATION SALES AGREEMENT
(Other Facility l0 average Monthly MW or Less)
Project Name: Black Mesa Energy 2
Project Number:
THIS FIRM GENERATION SALES ACREEMENT("Agreement"), entered into on this 24 day
of January 2020 (*Effective Date") between BLACK MESA ENERCY, LLC an ldaho limited liability
company (Seller), and IDAHO POWER COMPANY, an ldaho corporation (ldaho Power), hereinafter
sometimes referred to collectively as "Panies" or individually as "Party."
WITNESSETH:
WHEREAS, Seller will design, construct, own, maintain and operate an energy storage system
and electric generation facility that will be a PURPA Qualifying Facility; and
WHEREAS, Seller wishes to sell. and ldaho Power is required to purchase, electric generation
produced and delivered by the PURPA Qualitying Facility.
THEREFORE, tn consideration of,the mutual covenants and agreements hereinafter set fbrth, the
Parties agree as follows:
ARTICLE t: DEFINITIONS
As used in this Agreement and the appendiccs attached hereto, the following terms
shall have the tbllowing meanings:
l.l "Adjusted Estimated Net Energy Amount" - the Estimated Net Energy Amount specified
in paragraph 6.2 including any adjustments that have been made in accordance with
paragraphs 6.2.2 oc 6.2.3.
1.2 "Authorized Agent" - a person or persons specified within paragraph 25.2 of this Agreement as
being authorized and empowered, tbr and on behalf of the Seller, to execute instruments,
agreements. certificates, and other documents (collectively ''Documents") and to take actions on
I
Black Mesa Energy v. IPCo - Exhibit 6 - Page 52 of 98
behallof the Scllcr, and that ldaho Power Company and its directols, otJ'icers, employees. and
agents are entitled to consiclcr and deal with such persons as agents of the Seller f,or all purposcs,
until such time as an authorized oltlcer of the Seller shall have delivered to ldaho Power
Company a notice in writing stating that such person is and shall no longer be an agent on behalf
of the Seller. Any Docurnents executed by such persons shall be deemed duly authorized by the
Seller tbr all pLrrposes.
l.i "Commission" -The ldaho Public Utilities Commission.
I .4 "Contract Year" - The period corrmencing each calendar year on the same calendar date as the
Operation Date and ending three hundred sixty-fbur (364) days thereafter.
1.5 "Delay Cure Period" - One hundred twenty ( 120) days irnmediately fbllowing the Scheduled
Operation Date.
1.6 "Delay Damages" - Current month's Estimated Net Energy Amount tbr the flrst Contract Year as
specitied irr paragraph 6.2.I as of the Etl-cctive Date divided by the nurnber oidays in the current
month multiplied by the number oldays in tlre Delay Period in the current month multiplied by
the current month's Delay Price.
1.7 "Delay Period" - All days past the Scheduled Operation Date untiI the Seller's Facility achieves
the Operation Date or the Agreement is terminated by ldaho Power,
1.8 ''Dela.y Price" - I'hc current month's VIid-Columbia Market F.nergy Cost minus the current
month's Base Energy Purchase Price as specified in Appendix D of this Agreement. lIthis
calculation results in a valr.re less than zero (0), the result olthrs salculation will be zero (0).
I g "Dcsienated Network Resourc_e (DltR)" - A resource that is designated tbr ldaho Power network
load and clocs not include any resource, or any portion thcreot. that is committed tbr sale to third
parties or otherwise cannot be called upon to meet ldaho Power's network load.
L t0 "Designated Dispatch Facilitv" - Idaho Power's Load Serving Operations, or an1 subsequent
group dcsignated by lc{aho Power.
2
Black Mesa Energy v. tPCo - Exhibit 6 - Page 53 of 98
t.ll "Ef'fective Date" - T'he date stated in the opening paragraph of this F,nergy Sales Agreement
represcnting the date upon which this Energy Sales Agreernent was tLrlly executed by both
Parties.
"Enyironmental Attributes" - rneans any and all credits, bencfits, ernissions redustions, ofi'sets,
and allowances, howsoever entitlcd, aftributable to the generation tiom the Faciliry-, and its
avoided emission ot'polturtarits. Environmsntal Attributes inclurde but are not limitcd to: ( l) any
avoided emission of pollutants to the air, soil or water such a-s sult'ur oxides (SOx), nitrogen
oxides (NOx), carbon monoxide (CO) and olher pollutants; (2) any avoided emissions of carbon
dioxidc (CO2), methane (CHl), nitrous oxide. hydroflr-rorocarbons, pertluorocarbons, sullur
hexatluoride and other greenhouse gases (CF{Gs) that have been determined by the United
Nations Intergovernmental Panel on (]lirnate 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:' (3)
the reporting rights to thesc avoided ernissions, such as REC Reporting Rights. REC Repoming
Rights are the right of a REC purchaser to report the ownership of accumulatecl RECs in
compliance witlr t'ederal or state law. if applicable, and to a t-ederal or state agency or any other
party at the REC purchaser's discretion. and include without Iimitation those REC Reporting
Rights accrr"ring under Scctitrn 1605(b) oflThe Energy Policy Act ol 1992 and any present. or
future t-ederal, state, or local law, regulation or bill. and international or fbreign emissions trading
program. RECs are accumulated on a MWh basis and one REC represents the Environmental
Attributes associated with one ( l) NlWh olenergy. Elnvironmental Attributes do not include (i)
any energy, capacity. reliability or other porver attributes fiorn the Facility, (ii) production tax
creclits or investrnent tax credits associater.l with the construction or operation of the Facility and
othcr tinanciirl incentives in the tbrm olcredits. reductions. orallowances associated with the
l'acility that are applicable to a state or t'eeleral income taxation obligation, (iii) the caslr grant in
)
i ,{voided emissions may or may not have any valuc tbr GtlC compliance purposes. Although avoided
emissions are included in thc list ot'Environrncntal Attributes, this inclusion does not creatc ally right to use those
avoided emissions to comply with any GHC regulatr'rry program.l
Black Mesa Energy v. IPCo - Exhibit 6 - Page 54 of 98
r.t3
lieu olthe investment tax credit pursuant to Section l60l olthc Amerisan Recovery and
Reinvestment Act of 2009. or (iv) emission reduction credits encumbered or used by the Facility
for compliance with local, state, or tederal operating and/or air quality permits.
"f:stimated Net Energ,v Amount" -the rnonthly estirnated Nct F,nergy (kWh)infbrmation
provided by the Seller in accordance with paragraph 6.2 and which may be adjusted periodically
throughout the term of this Agreement in accordance with paragraph 6.2.
"Facility" - That electric generation f'acility described in Appendi.r B of this Agreement
"Facilitv Nameplate Capacity" - The sum of the individual Ceneration Unit Nameplate
Capacity's that are installed at this Facility. This value is estabtished fbr the term of this
Agrccme nt in Appendix B, item B-l of this Agreement and validated in paragraph 4.1.4 of this
Agreement.
"First Enerqv Date" -'Ihe day commencing at 00:0 I hours, Mountain'Iime, tbllowing the day
that Seller has satisfied the requirements of Article lV and after tlre Seller requested First Encrgy
Date.
''Forced OutaBe" - a partial or total rcduction of a) the Facility's capacity to prodr"rce anrl/or
deliver Net Enerry to the Point of Delivery, or b) ldaho Power's ability to accept Net Energy at
the Point of Delivery fbr non-economic reasons, as a result of ldaho Power or Facility: I )
equipment failure which was gg! the result of negligence or lack ol preventative maintenance, or
2) responding to a transmission provider curtailment ordor, or 3) unptanned preventative
maintenance to repair equipment that left unrepaired, would result irr tailure of equipment prior
to the planned maintenance period, or 4) planned maintenance or construction of the Facility or
electrical lines required to serve this Facility, or 5) icing events within the immediate water
source used as the Facility's primary motive tbrce that causes the Facility to reduce generation
production.
t. t4
r.t5
r.16
t.t7
4
Black Mesa Energy v. IPCo - Exhibit 6 - Page 55 of 98
t. r8
t.l9
r,20
'"Oeneratitln hterconncction AgreerLgnt (GlA)" - The interconnection agrecment that specities
terms, conditions and rcquirements of interconnecting to the ldaho Power electrical system,
which will include but not be limited to all reqr-rirerrents as specitied by Schedule 72.
"CeneFtion Unit" - a cornplete electrical generation -rystem within the Facility that is able tcr
generate and detiver electricity to the Point of Delivery independent of othcr Generation Units
within the same Facility.
"lnadvertent Energy" - Electric energy Seller does not intend to generate. lnadvertent energy is
more parlicularly described in paragraph 7.2 of this Agreement.
"lnterconne,ction Facilities" - All equipment specified in the CIA.
''lnitial Caoacity Determination" - The process by which ldaho Power confirms that under
normal or averagc design conditions the Facility will generate at no more than l0 averagc
megawatts (MW) per month. as more particulary described in pargraph 4.1.4.
''Losses" - The loss oflelectrical energy expressed in kilowatt houn (kWh) occurring as a resurlt
of thc transfirrrnation and [ransmission of energy between the point where the Facility's encrgy is
metered and the Facility's Point of f)clivery The loss calculation tbrmula will be as specified in
Appendix B of this Agreement.
"[Vtarket linergy Rct'erence Price" - Eighty-tive percent (85'%) of the Mid-Coltrmbia [Vlarket
Energy Cost.
"Material Breach" - A Detault (paragraph t9.2. I ) subject to paragraph |q.2.2.
"Marimum Clapacitv Aqrount" - The maximum capacity (MW) of the Facility wrll be as
specified in Appendix B of this Agreement.
"Mid-Columbia tvtarket !.nerqy Cost" - is Eighty-two and tbur tenths perccnt (82.4%) of
thc monthly arithmctic average of each day's Intercontincntal Exchange ("lCE") daily firm
N/id-C Pcak Avg and Mid-C Ott-Peak Avg index prices. Each day's index prices will
ret'lect the relative proportions ot peak hours and ofl'peak hours in the month as lilllows:
t.2t
t.22
1.23
1.2.r
1.25
t.26
1.21
5
Black Mesa Energy v. IPCo - Exhibit 6 - Page 56 of 98
r.28
t.2e
The lVlid-Columbia Market Energy Cost actual calculation being
.824 * ( I {(lCE Mid-C Peak Avg* * HL hours for day) +
X=l
(tCI'l Mid-C Ot'f-Peak Avg* * LL hours t'or day)) I (n*24))
where n = number of days in the month
It'the ICE Mid-C lndex prices are not reported fbr a particular day or days, prices derived t]om the
respective averages of F{L and LL prices for the immecliately preceding and flollowing reporting
periods or days shall be substituted into the tbrmula stated in this definition and shall therefore be
multiplied by the appropriate respective numbers of Ht. and LL L{ours for such particular day or
days with the result that each hour in such month shall have a related price in such formula. If the
day for which prices are not reported has in it only LL Hours (flor example a Sunday). the respective
averages shall use only prices reported tbr LL hours in the immediately preceding and following
reporting periods or days. lf the day fbr which prices are not reported is a Saturday or Monday or is
adjacent orr the calendar to a holiday, the prices used for tlL Hours shall be those fbr HL hours in
the nearest (tbrward or backward) reporting periods or days tbr which HL prices are repofted.
If the ICE Mid-C Index reporting is discontinued by the reporting agency, both Parties witl
mutually agree upon a replacement index, which is similar to the ICE Mid-C lndex. The selected
replacement index will be uonsistent with other similar agreements and a commonly used index
by the electrical industry.
"Monthly Nameplate Enerqy" - Facility Nameplate Capacity (kW) multiplied by the hours in the
applicable month.
"Nameplate Capacity" -The lull-load electrical quantities assigned by the designer to a
Ceneration Unit and its prime mover or other piecc of electrical equlpment. such as transtirrmers
and circuit breakers, under standardized conditions, expressed in amperes, kilovolt-amperes,
6
Black Mesa Energy v. IPCo - Exhibit 6 - Page 57 of 98
kilowans, volts or other appropriate units. Usually indicated on a natneplate attached to the
individLral machine or devicc.
l.l0 -'Net Enerqy" - All ot'the electric energy produced by the Facility, less Station Use and [.osses,
expres.sed in kilowatt hours (kWhy delivered by tho Facility to ldaho Powcr at the Point of
Delivery. SLrbject to the terms of this Agreement. Seller commits to deliver all Net Energy to
ldaho Power at the Peint of Delivery lor the fulI terrn olthe Agreement. Net Energy does not
include Inadvertent Energr.
I .3 I "Operation Date" - The day commc.ncing at 0001 hours, Mountain Time, tbllowing the day that
all requirements of paragraph 5.2 have been completed and atter the Seller requested Operation
Date.
1.32 "Other L'acility" - In accordance with IPUC Order 32697 and Order 12802. a generation tacitity
that is not a Solar. Wind, Seasonal Hydro or Non-seasonal l{ydro generation facility.
l.li "Point oflPeliverv" - The location specified in the CIA and relerenced in Appendix B. where
ldaho Power"s and the Sellcr's electrical t-acilities are interconnccted and the energy from this
Facitity is delivered to the ldaho Power electrical system.
I 34 "Prudent Electrical Prartices" - Those practices. methods and equipment that are commonly and
ordinarily used in eleotrical engineering and operations to opcrate electris cquipment lawf utly,
satbly. dcpendably, etiiciently and cconomical [y.
l.l5 "Renewable EnergJ Certitjeate" or "REC" means a certitlcate, credit, allowance, green tag, or
other transt'erable indicia. howsoever entitted, indicating generation of renewable energy by the
Facility, and includes all Environmental Attributes arising as a result olthe generatron of
electricity associated with the REC. One REC represents the Environmental Attributes associated
with the generation ot'one thousand ( 1,000) kWh of Net Energy.
I .36 "scheduled Operation Date" - The date specitied in Appendix B rvhcn Seller anticipatcs achicving
the Operation Date. tt is expected that the Scheduled Operation Date provided by the Sellcr shall
7
Black Mesa Energy v. IPCo - Exhibit 6 - Page 58 of 98
be a reasonable estimate of tlre date that the Seller anticipatcs that the Seller's Facility shall
achieve the Operation Date.
1.37 "Schedule72"-ldahoPower's faritlNo l0l,Schedule72or itssuccessorschedulesas
approved by the Commission.
I .38 "Station Use" - Electric energy that is used to operate equipment that is auxiliary or otherwise
relatcd to the production of electricity by the Facility.
l.l9 "Terminatipn Damages" - Financial damages the non-detaulting party has incurred as a result of
termination of' th is Agreement.
1.40 *WF.CIC Scheduling Catendar" - The Scheduling Calendar tbr the current year published by the
Westem Electricity Coordinating Counci l.
2.1
2.2
Ll
ARTICLE II: NO RELIANCE ON IDAHO POWER
Seller lndependent lnvestigation - Scller warrants and reprcsents to ldaho Power that in enterins
into this Agreement and the undertaking by Seller of the obligations set tbrth herein. Seller has
investigated and determincd that it is capable of pertbrming hereunder and has not relied upon
the advice. expericnce or expertise of ldaho Power irr connection with the transactions
contemplated by this Agreement.
Seller lndependent Experts - All prot'essionals or experts including, but not limited to. engineers,
attorncys or accor-lntants, that Seller may have consulted or retied on in undertaking the
transactions contcmplated by this Apeement have been solely those oiSeller.
ARTICLE tII: WARRANTIES
i\o Wanantl b! ldaho Power - Any review, acceptance or t-ailurc to review Seller's design,
specitications, equipmcnt or fhcilities shall not be an endorsement or a contjnration by ldaho
Power and ldaho Power rnakes no warranties, expressed or implied, regarding any aspect of
Seller's design, specitications, equipmcnt or t-acilities. inctuding, but not timited to, saf'ety,
durability, reliability. strength, capacity', adequacy or economic t'casibility.
I
Black Mesa Energy v. lPCo - Exhibit 6 - Page 59 of 98
).-
3.3
4.1
Oualitline. Facilit) Status - Scller warrants that the Facility is a "Qualit,virrg Facility." as that lernr
is used and deflned in l8 C-'FR 292.201 et seq. After initial qualification, Seller will take such
steps as may bc required to rnaintain the Facility's Qualitying Facility status during the term oI
this Agrecment and Seller's tailure to maintain Qualitying Facility status will be a Material
Breach of this Agreement. [daho Power reserves the right to revicw the Facility's Qualitying
Facility status and assttciated support and compliance documsnts at any tirne during the term ol
this Agreement.
Other Facilitv Oualitication - Seller warrants that the Facility is an Other Facility as that term is
detlned in paragraph 1.32 olthis Agreemcnt. Sellcr will take strch steps as may be reqr"rired to
maintain the C)ther Facility status during the tull term olthis Agreement, Idaho Power rcserves
the right to revicw the Other Facility status of this Facility and associated suppom and compliance
documents at any timc during the term of this Agreement.
AR l'lCt,E lV: CONDI'IIONS TO ACCEPTANCE OF ENERCY
F'ir:t Eners) Date - Prior to the First Energy Date and as a condition olldaho Power's acceptance
of deliveries of energy fiorn the Sellcr under this Agreement, Seller shall:
4. I . I Submit proof to ldaho Power that all licenses. perrnits. determinations and
approvals necessary tbr Seller's operations have been obtained from applicable
t'ederal. state or local authorities, including, but not limited to, evidence of
compliance with Subpart B, l8 C.F.R. 8292.20 [ et seq. as a certit'ied Qualitying Facility.
4.1.2 Opinion of Counsel - Submit to Iclaho Power an opinion letter signed by an attorney
admitted to practice and in good standing in the State of ldaho providingan opinion that
Seller's licenses, permits, determinations and approvals as set fbrth in paragraph 4.1.1.
abovc are legally and validly issued. are held in the name of the Seller and. baserl on a
reasonable indepenclent review. counsel is of the opinion that Seller is in substantial
compliance with sirid permits as ot'the date of the Opinion l.etter.'Ihe opinion lcfter will
9
Black Mesa Energy v. lPCo - Exhibit 6 - Page 60 of 98
4. t.1
4.1.4
be in a fbrm acceptable to lelaho Power and will acknerwledge that the attorney rendcring
the opinion understands that ldaho Power is relying on said opinion. ldaho Power's
acceptance of the tbrm will not be unreasonably withheld.'l'he opinion lener will be
governed by and shall be interpreted in accordance with the legal opinion accordoIthe
American Bar Association Scction of Business Larv ( 199 I ).
Commission ApBrova[- C--onfirm with ldaho Power that Commission approval of this
Agreement in a tbrm acceptable to ldalro Power has been received.
!.nitial Capacity Determination - Submit to ldaho Power sLrch data as ldaho Power may
rea;onably require to perform the lnitial Capacity Detemrination. Such data will include
but not be timited to, Ceneration Unit Nameplate Capacity, equipment specitications,
prime mover data, resource characteristics, normal and/or average operating design
conditions and Station Use data. Upon receipt of this intbrmation. Idaho Power will
review the provided data and if necessary, request additional data to complete the tnitial
Capacity Determination within a reasonable time.
4.1.4.1 lf the Maximurr Capacity Amount specified in Appendix B of this Agreement
and the cumulative manuthcturer's Nameplate Capacity rating of the individual
Cencration Units at this Facility does not exceed ten ( l0) MW, the Seller shall
submit detailed, manufacturer. veritlabtc data of the Nameplate Capacity ratings
oIthe individual Generation Units to be installed at this Facility. ldaho Power
will verity that the data provided establishes the combined Nameplate Capacity
rating of the Cencration Units to be installed at this Facility does not exceed ten
( l0) MW and determine if the Seller has satisfied the Initial Capacity
Determination.
1.1 .4.2 If the Maximum Capacity or the cumulative manufacture's Nameplate Capacity
Rating of the individual Ceneration Units at this Facility exceeds ten ( l0) MW.
ldaho Power will review all data submitted by Seller to determine if it is a
t0
Black Mesa Energy v. IPCo - Exhibit 6 - Page 6l of 98
4. r.5
reasonable estirnate that thc Facility will not excccd tcn ( l0) average tnonthly
MW in any month.
Nameolate Caoacit) - Submit to ldaho Power manulacturer's and engineering
documentation that establishes the Narneplate Capacity of cach individual (ieneration [Jnit
that is included within this entire Facility. The sum of the individr"ral Generation Unit
Capacity ratings shall be equal to Facility Nameplate Capacity. [Jpon receipt of this data,
Idaho Power shall review the provided data and detennine if the Nameplate Capacity
specified is reasonable based upon the manut'acturer's specitied generation ratings for the
speci fic Generation Units.
Completion certificate - Submit a certiflcate executed by an authr:rized agent of the Seller
attesting that all mechanictrl and electrical equipment of the Facility has been completcd to
enable the F'acility to begin testing and delivery of Test Enerry in a sale manncr.
lnsurance - Submit written proof to [daho Power olall insurance required in Article XIll.
lnterconnection - Provide written cont'irmation from ldaho Power's business unit that
adrninisters the CIA that Seller has satist'ied all interconnection and testing reqr-rirements
that !vill enable the Facility to be sat'ely connected to the ldaho Power electrical system.
Designatgd Network Resource (DNR) - Conflrm that the Seller's Facility has completed
all of the requirements to bc an ldaho Power DNR capable of delivcring energy up to the
amount of the Maximum Capacity at the Point of Delivery.
4.1.9.t As specitied in Appendix B item 7 of this Agrecment, the Seller's Facility must
have achieved the status of'being an ldaho Power DNR prior to ldaho Power
accepting an,! energy tiorn this Facility. Appendix B item 7 provides
intbrmation on the initial application process required to cnable ldaho Po"vcr to
tletermine if network transmission capacity is available fbr this Facility's
Nlaxinrum Capacity Amount and/or if ldaho Power transmission network
rupgrades will bc required. 'l'he results of this study prclcess and any associated
ll
4.1.6
4.1.7
4. 1.8
4.1 .9
Black Mesa Energy v. lPCo - Exhibit 6 - Page 62 of 98
5.t
5.2
sosts will be included in the GIA tbr this l.acility.
4.1.9.2 After the Facility has completed all requirements of the CIA that errable the
Facility to come online and at least thirty (30) days prior to the Scheduled First
L)nergy Date, Idaho Power will complete the process tbr approving the Seller's
Facility as an ldaho Power DNR. tf the Seller estimates that the actual First
Energy is expected to be ditTerent then the Scheduled First Energy Date specitied
in Appendix B of this Agreement, the Seller must notify ldaho Power of this
revised date no later than 30 days prior to Scheduled First Energy Date. The
Facitity cannot deliver any energy to Idaho Power until it is approved as a DNR
after completing all the requirements of the GIA and complying with the
requircments of this Agreement.
4.1.10 Written Acceptance - Rc'quest and obtain written confirmation t'rom ldaho Power that all
conditions to acceptance of energy have been futfilled. Such written contirmation shall be
provided within a commercially reasonable time tbllowing the Seller's request and will
not be unreasonably withheld by ldaho Power.
ARTICLE V: TERM AND OPERATION DATE
Term - Subject to the provisions of paragraph 5.2 below, this Agreement shalI become effective on
the Effective Date and shall continue in full lorce and effect for a period of twenty (20) Contract
Years t-rom the Operation Date.
Ooeration Date - A single Operation Date will be granted for the entire Facility and may occur
only after the Facility has achieved all of the following:
a) At a minimum,TSYo of the Facility Nameplate Capacity as identified in Appendix B,
item. B-l has achieved a First Energy Date.
b) Seller has demonstrated to ldaho PoweCs satisthction that all mechanical and electrical
testing has been completed satisflactorily and the Facility is able to provide energy in a
t2
Black Mesa Energy v. IPCo - Exhibit 6 - Page 63 of 98
5.3
5.4
5.5
5.6
collsistent, reliabh: and saf'e nranner.
c) Engineer's Certiticatir:ns - Submit an executed Engineer's Certiflcation of Design &
Cunstruction Adequacy and an Engineer's Certification ot'Operations and Maintenance
(O&M) Policy as described in Commission Order No.21690. 'lhese certitjcates will
be in the fbrm specitied in Appendix C but may bc modified to the extent necessary to
recognize the diff'erent engineering disciplines providing the ccrtiticates.
d) Seller has requested an Operation Date tiom ldaho Power in a written tbrmat.
e) Seller has received wrinen confirmation from Idaho Power of the Operation Date. This
cont'irmation will not be unreasonably withheld by ldaho Power.
Operation Date Delav - Seller shall cause the Facility to achieve the Opcration Date on or before
the Scheduled Operation Date. Delays in the interconnection and transmission network upgrade
stutly, design and construction process (This includes any delay in making the required deposit
payments set tbrth in the Facility's GIA) that ry! caused by ldaho Power or Force Majeure
events accepted by both Parties, shall not prevent Dclay Damages or Termination Damages lrclm
being duc and owing as calculated in accordance with this Agreement.
'l'ermination - If Seller tails to achieve the Operation Date prior to the Scheduled Operation Date,
such thilure will be a Matcrial Breach and shall sLrbject the Sellcr to Delay Damages during the
Delay Cure Period. If Seller fhils to achicvs an Operation Date by thc end of the Delay Cure Period,
ldaho Power rnay immediately terminate this Agreement with no flurther notice required.
QSlay Damaggl billing and payment - ldaho Power shall calculate and submit to the Seller any
Delay Damages due ldaho Power within tltteen 115) days after the end of each month or within J0
days of the date this Agreement is terminated by ldaho Power.
Termination Darnases billins, and payment - Idaho Power shall calculate and submit to the Seller
any Termination Damages dLre lclaho Power within thirty (30) days af'ter this Agreement has been
terminatcd.
Seller Palrncnt - Seller shall pay ldaho Power any undisputed Delay Damages or Tcrminatittn
l3
5.1
Black Mesa Energy v. IPCo - Exhibit 6 - Page 64 of 98
Damages within seven (7) days of w lren ldaho Power presents these billings to the Seller Seller's tbilure
to pay these damages within the specified tirne will be a Material Breach of this Agreement.
6.t
ARTIC]LE VI: PURCHASE AND SALE 8T NEI ENERGY
Net Enerqy Purchase and Dclivery - Except when either Party's pertbrmance is excused as provicled
herein, ldaho Powerwill purchaseand Sellerwill sellall of the Net F)nergy to [daho Poweratthe
Point of'Delivery. All Inadvertent Enerpr produced by the Facility will also be delivered by the
Seller to ldaho Power at the Point of Delivery.
6.2 Ettimated Net Enerey Amounts -Neither the monthly Estimated Net Energy Amounts provided as
of the Eflective Date nor the rnonthly Adjusted Estimated Net Energy Amount provided during the
term of this Agreement shall exceed ten (10) average monthly MIW nor be greater than the
Maximum Capacity Amount (measured in kW) multiplied by the hours in the applicable month.
6.2.1 Monthly Estimated Net Energy Amounts provided as of' the Efl'ective Date of this
Agreement: '[he monthly Estimated Net Energy Amount shall be determined au the product
of (i) kWh tbr the applicable month specified in the table below, multiplied by: (ii) the
Annual Factor fbr the applicable Contract Year specil'ied below.
Month kwh Averaee kW
Season I
March 3,877,667 5.2
April 4,624,5L8 5.4
May 5,335,442 7.2
Season 2
July 5,909,07e 7.9
August 5,385,L22 7.2
November t,948,797 2.7
December 1,435,385 1.9
Season J
J une 5,611.1.45 7.8
September 4,459,257 6.2
l;t
Black Mesa Energy v. IPCo - Exhibit 6 - Page 65 of 98
October 3,279,0O7 4.4
January L,728,734 2.3
February 2,384,643 3.5
Year Annual Factor
1 99.s0%
2 99.O0o/o
3 98.s0%
4 98.00%
5 9750%
6 97.OO%
7 95.50%
8 96.00%
9 95.5A%
10 9s.00%
11 94.5A%
L2 94.00%
13 93.s0%
1.4 93.00%
1.5 92.s0%
15 92.0O%
t7 91.50%
18 91.OO%
19 90.50%
20 90.00%
6.2.2
6.2.3
Seller's Adjustment of Estimated Net Energy Amounts - Prior to the Operation Date. the
Seller may revise all ol the previously provided Estirnated Net Energy Amounts by
providing written notice to ldaho Power in accordance with paragraph 25.1 .
Seller's Adjustment oI Estimated Net Enerp Amounts Atter the Operation Date - Atter
the Operation Date, the Seller may revise any firture monthly Estimated Net Enerry
Amounts by providing written notice no later than 5 PM Mountain Standard time on the
25th day of the month that is prior to the month to be revised. tf the 25th day of the month
thlls on a weekend or hotiday, then written notice must be received on the last business day
prior to the 25th oIthe month. For example. if Selter would like to revise the Estimated Net
l5
Black Mesa Energy v. IPCo - Exhibit 6 - Page 66 of 98
6.3
7.1
Energy Amount for October, they would need to submit a revised schedule no later than
Scptember 25'l' or the last business day prior to September 25'l'.
a) This written notice must be provided to ldaho Power in accordance with
paragraph 25. I or by electronic notice as agreed to by both partics.
b) FailLrre to provide timely written notice of changes to the Estimated Net
L,nergy Amounts witl be deemed to be an eleotiorr of no change fiom the
most recently provided Estimated Net Energy Amounts.
Failure to Deliver Minimum Amounts of Net Energy - Unless excused by an ovent oflForce
Majeure or ldaho Power's inability to accept Net Energy, Seller's failure to deliver Net Energy in
any Contract Year in an amount equal to at least ten percent ( l0%) of the sum of the monthly
estimated Net Energy amounts in eft'ect a.s of the Operation Date shall constitute an event oI
defhult.
ARTICLE VII; PURCHASE PRICE AND METTIOD OF. PAYMENT
Surplus Energy - (l) Net Energy produced by the Seller's Facility and delivered to the ldaho
Power electrical system during the month which exceeds one hundred ten persent (tt0%) of the
monthly Adjusted Estimated Net Energy Amount fbr the corresponding month specitied in
paragraph 6.2,or (2) if the Net Energy produced by the Seller's F'acility and delivered to thc ldaho
Power electrical system during the month is less than ninety percent (90%) of the monthly
Adjustcd Estimated Nct Energy Amount tbr the corresponding month specified in paragraph 6.2.
then all Nct Energy delivered by the Facility to the ldaho Power electrical system tbr that given
month, or (3) alt Net Energy produced by the Seller's Facility and delivered by the Facility to the
ldtrho Pouvcr electrical system prior to the Operation Date, or (4) all monthly Net F,nergy that
exceeds the Monthly Nameplate t,nergy.
Surplus Energy Price - l"or all SurplLrs Energy, [daho Power sha[[ pay to the Seller the current
t6
7.2
Black Mesa Energy v. IPCo - Exhibit 6 - Page 67 of 98
7.3
7.4
7.5
month's Markct Energy Rcf'erenco Price or the applicable Base Energy Purchase Price, whichever
is lower.
Base Energy * The Net Energy produced by the Seller's l.'acility and delivered to the ldaho Power
electrical system after the F'acility has achieved an Operation Date which is greater or equal to
ninety percent (90%) and less than or equal to one hundred ten percent (ll0%) of the monthly
Adjusted Estimated Net Energy Amount tbr the corresponding month specitied in paragraph 6.2.
Base Enerw Purchase Price - For all Base Energy received during a calendar month, ldaho Power
will pay Seller the Base Enerry Purchase Price as set forth in Appendix D.
Inadvertent Energy -7.5.1 lnadvertent 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 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 Inadvertent Enerry.)
7.5.2 Although Seller intends to design and operate the Facitity to generate and de liver no
more than ten ( l0) average MW monthly and therefore does not intend to generate
and delivcr Inadvertent Enerry, ldaho Power will accept lnadvertent Energy that does
not exceed the Maximum Capacity Amount but will not purchase or pay tbr
Inadvertent Energy.
7.5.3 Delivering [nadvertent Energy to tdaho Power flor 2 consecutive months and/or in any
3 months during a Contract Year will be a Material Breach of this Agreement and
Idaho Power may terminate this Agreement within sixty (60) days after the Material
Breach has occurred.
Payments - Undisputed Base Energy and Surplus Energy payments, less any payments due to
ldaho Ptxver will be disbursed to the Seller within thirty (30) days of the date which ldaho Power
t7
7.6
Black Mesa Energy v. IPCo - Exhibit 6 - Page 68 of 98
7.7
9.1
l0.l
roccives and acccpts the documentation of the monthly Base Energy and Surplus F.nergy actually
delivered to ldaho Power as specitied in Appendix A.
Continuine Jurisdiction of the Commission -'fhis Agreement is a special contract and, as such.
the rates, tenns and conditions contained in this Agreement will be construed in accordartce with
ldaho PowerCompany v. tdaho Public UtilitiesCommission and Afton Hnergy. Inc., 107 ldaho
78 I , 691 ?.2d 427 ( t 984). ldaho Power Company v. ldaho Public Utilities Commission, 107 ldaho
1122, 655 ?.2d I 261 (1985), Atlon Energry. lnc. v. ldaho Power Company, I I I ldaho 925, 729
P.2d 400 (1986). Section 210 of the Public Utility Regulatory Policies Act ol1978 and l8 Ct'R
$2e2.301-308
AR,I.tCLE VIII: E,NVIRONMENTAL ATTRIBUTES
Pursuant to Commission Orcler 12691 and 32802 the Environmental Attributes and Renewable
Energy Certiticatcs as detlned within this Agreement and directly associated with the production
olenergy ttom the Seller's Facility are owned by the Seller.
ARTICLE tX: FACII,ITY AND INTERCONNECTION
Desiglr of l"acilitv - Sellcr willdcsign. construct, install, own, opertrte and maintain the Facility and
any Seller-owned Interconnection Facilities so as to allow safe and reliable generation, storage, and
delivery of Net [,nergy and lnadvertent Energy to thc ldaho Power Point of Delivery fbr the full
term olthe Agreement in accordance with the ClA.
ARTICLE X:
TVIETERING. MU'I'ERING CONI M tJN ICATTONS AN D SCADA TEL EME'T'RY
Meterine - tdaho Power shall, provide, install. and maintain metcring eqr"ripment needed fbr
metering the electrical energy delivered t'rom the Facility. The metering equipment witl be capable
of measuring. recording, retrieving and reporting the I'acility's lrourly gross electrical energy
t8
Black Mesa Energy v. IPCo - Exhibit 6 - Page 69 of 98
10.2
t0.3
It.l
delivcry, Station Iise, ma.xirnum energ] deliveries (kW) arrd any other energy rneasurelncnts at the
Point otDeti\,ery that ldaho Power needs to administer this Agreement and integrate this Facility's
electricity delivered to the tdaho Power electrical system. Specitic equipment, installation details
and rcqtrirements fbr this metering equipment will bc established in the CIA process and
documented in the CtA. Seller shall be responsible tbr all initial and ongoing costs of this
equipmcnt as specitied in Schedule 72 and the CIA.
Meterins Communications -- Seller shall, at the Seller's sole initial and ongoing expense, atrange
tbr, provide, instal[, and maintain dedicated metering communications equipment capabte ofl
transmitting the metering data specified irr paragraph 10. I to [daho Power in a t'requency, manncr
and tbrm acceptable to ldaho Power. Seller shall grant ldaho Power sole control and use o[this
dedicated mctering sommunications equipment. Specific details and requirements tbr this meterirrg
communications equipmcnt will be established in the GIA process and documented in the GlA.
Supervisory Control and Data Acquisition (SCADA) Telemetn - In addition to the requirements
of paragraph 10. I and 10.2, ldaho Power may require telemetry equipment and
tclecomtnunications which will be capable of providing [daho Power with continuous
instantaneous SCADA telemetry of the Seller's Net Energy and lnadvertent F.nergy production in
a tbrm acceptable to tdaho Power. Seller shall grant ldaho Power sole control and use of this
dedicated SCADA and tetecommunications equipment. Specitic details and requirements tbr this
SCADA Telemetry and telecommunications equiprnent will be established ln the CIA process
and docurnerrteil in the CtA. Seller shall be responsible for alI initial and ongoing costs of this
equipment as specitied in Schedule 12 and the GlA.
ARTICLE XI. RECORDS
MaintenanceolRecords - Seller shall maintain rnonthly records at the Facility or such other
Iocation mutLrally acceptable to the Parties. J'hese records shalI include total generation. Net
Energy, Station Use. SurplLrs Energy, [nadvefient Energy and maximum hourly generation (kW)
l9
Black Mesa Energy v. IPCo - Exhibit 6 - Page 70 of 98
11.2
12.t
t2 _2
and be recorded in a lorm and content acceptable to ldaho Power. Monthly records shall be retained
for a period ofnot less than five 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 Enerry, Inadvertent Energy and maximum generation
(kW) records penaining to the Seller's Facility.
ARTICLE XII: OPERATIONS
Communications - ldaho Power and the Seller shall maintain appropriate operating
communications through [daho Power's Designated Dispatch Facility in accordance with the GIA.
Accentance of Enerw -
12.2.1 ldaho Power shall be excused frorn accepting and paying fbr Net Energy or accepting
lnadvertent Energy which would have otherwise been produced by the Facility and
delivered by the Seller to the Point of Delivery:
a.) If, energy deliveries are interrupted due an event of Force Majeure or
Forced Outage.
b.) lf interruption ol generation deliveries is allowed by Section 210 of the
Public tJtility Regulatory Policies Act of 1978 and l8 CFR $292.104
c.) [f temporary disconnection and/or interruption of generation deliveries is
in accordance with Schedule 72 or other provisions as specified within the
GIA.
d.) lt tdaho Power determines that curtailment, intenuption or reduction ol
Net Energy or lnadvertent Energy deliveries is necessary because of line
construction, elcctrical system maintenance requirements, emergencies,
electrical system operating conditions, electrical system reliability
20
Black Mesa Energy v. IPCo - Exhibit 6 - Page 7l of 98
t?.2.2
12.2.3
12.2.4
elnergencies on its system, or as otherwise required by Prudent Electrical
Practices.
lf, ln the reasonable opinion of ldaho Power, Seller's operation o[ the Facility or
lnterconnection Facilities is unsafe or may otherwise adversely aft'ect ldaho PoweCs
equipment, personnel or service to its customers. Idaho Power may temporarily disconnect
the Facility from ldaho Power's transmission/distribution system as specified within the
CIA or Schedule 72 or take such other reasonable steps as ldaho Power deems appropriate.
Under no circumstancss wilI the Seller deliver generation from the Facility to the Point of
Delivery in an amount that exceeds the Ma,rimum Capacity Amount at any moment in
time. Seller's lailure to limit deliveries to the Maximum Capacity Amount will be a
Nlaterial Breach of this Agreement.
If ldaho Power is unable to accept the generation t'rom this Facility and is not excused from
accepting the Facility's generation, ldaho Power's damages shall be limited to only the
value ol the estimated generation that Idaho Power was unable to accept valued at the
applicable generation prices specitied in this Agreement. ldaho Power will have no
responsibility to pay fbr any other costs, lost revenue or consequential damages thc Facility
may incur.
12.3 Scheduled Maintenance - On or before January 31" of each calendar year, Seller shall submit a
written proposed maintenance schedule olsigniticant Facility maintenance for that calenclar year
and ldaho Power and Seller shall mutualty agree as to the acceptability of the proposed schedule.
If the Seller intends to pertbrm planned maintenance at approximately the same time every year,
the Seller may submit a maintenance schedule tbr the t'irst calendar year and include a statement
that this maintenance schedule shall be consistent fbr all tuture years, until such time as the Seller
notifies [daho Power of a change to this schedule. The Panies determination as to the acceptability
olthe Seller's timetable for schecluled maintenance will take into consideration Prudent Electrical
2t
Black Mesa Energy v. IPCo - Exhibit 6 - Page 72 of 98
Practices, ldaho Power system requirements and the Seller's pref'errcd schedr.rle. Neither Party shall
r"rnreasonably w ithhold acceptance ol the proposed mai n tenance schedule.
12.4 ldaho Power Maintenance Intbrmation - Upon receiving a written request fiom the Seller, ldaho
Power shall providc publicly available intbrmation in regards to [daho Power planned maintenance
information that may impact the Facility.
t2.5 Contact Prior to Curtailment - ldaho Power will make a reasonable attempt to rrontact the Seller
prior to interrupting the interconnection or currailing deliveries tiom the Seller's Facility. Seller
understands that in the casc olemergency circumstances, real time operations of, the electrical
system, anil/or unplanned events, [daho Power may not be able to provide notice to the Seller prior
to interruption, cuftailment, or reduction of electrical energy detiveries to ldaho Porver.
ARTICLE Xlll: INDEMNTFICATION AND INSURANCE
ll.l [ndemnitication - Each Party shall agree to hold harmless and to indemnity the other Party, its
ot'tlcers, agents, affiliates, subsidiaries. parent company and employees against all loss, damage,
expense and liability to third persons tbr injury to or death of person or injury to property,
proximately caused by the indemnifying Party's, (a) construction, ownership, operation or
maintenance of, or by taiiLrre ot, any o[such Party's works or tacilities Lrsed in connection with this
Agreement, or (b) negligent or intentional acts, errors or omissions. The indemnitying Party shall,
on the other Party's request, detbnd any suit asserting a claim sovered by this indemnity. The
indcmnifying Party shall pay alldocumented costs, including reasonablc attomey t'ees that may be
incr,rrred by the other Party in enfbrcing this indemnity.
li.2 [nsurance - During the term of this Agreement. Seller shall secure and continuously carry insurance
as specitied in Appendix E.
ARI.ICLE XIV: FORCE MAJEURE
As r-rsed in this Agreernent, "Force Majeure" or "an event ol Force Majeure" means anv causc
22
t4.l
Black Mesa Energy v. lPCo - Exhibit 6 - Page 73 of 98
I 5.1
beyond the control ol the Seller or ol ldaho Power which, despite the exercise ol'due diligerrce,
such Party is unable to prevent or ovcrcome. l'orce Majeure includes, but is not limited to, acts of'
Cod, tire, tlood, storms, wars. hostilities. civil stritb, strikes and other labor disturbances.
earthquakes, tires, lightning, epidemics, sabotage, or changes in law or regulation occurring aftcr
the efltbctive date, which, by the exercise of reasonable foresight such party could not reasonably
have been expected to avoid and by the exercise of due diligence, it shall be unable to overcome.
Fluctuations and/or changes of, the motive force and/or the t'uel supply are not events of Force
Majeure. lf either Party is rendered wholly r:r in part unable to pertbrm its obligations under this
Agreement because ol au event of F'orce Majeure, both Parties shall be excused flrom whatever
performance is affected by the event ofl Force Majeure, provided that:
(l)The non-performing Party shall, as soon as is reasonably possible alter the
occurrence of'the Force Majeure, give the other Partv" written notice describing the
particulars of the occtrrrence.
The suspension of pertbrmance shalt be of no greater scope and of no longer
duration than is required by the event of Force Majeure.
No obligations of either Party which arose befbre thc occurrence of the Force
Majeure event and which could and should have been lully performed befbre such
occurrence shalI be excused as a result ofsuch occurrence.
(2)
(3)
ARTTCLE XV; LIABILITY: DEDICATION
Limitation of Liability. Nothing in this Agreement shall be construed to create any duty to, any
standard o[care with relerencc to. or any liability to any person not a Party to this Agreement.
Neither party shall be liahle to the other fbr any indirect, special, consequential. nor punitive
damages, except as expressly authorized by this Agreement.
23
Black Mesa Energy v. lPCo - Exhibit 6 - Page 74 of 98
t5.2
t6. I
17.1
t8.l
I8.2
19. I
Dedication. No unds(aking by one Party to the othcr under any provision of this Agreement shall
constitute thc dedication of that Party's system or any portion thereof to the Party or the public or
affect the statrc of [daho Power as an independent public utility corporation or Seller as an
independent individual or entity.
ARTICLE XVI: SEVERAL OBLICATTONS
Except where specifically stated in this Agreement to be othenwise, the duties. obligations and
liabilities olthe Parties are intended to be several and not joint or collective. Nothing contained
in this Agreement shall ever 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. Each Party shall be individually and severally liable tbr its own obligations under this
Agreement.
ARTICLE XVII; WAIVER
Any waiver at any time by either 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 detault or other matter.
ARTICLE XVIII:CHOICE OF L,AWS AND VENUE
This Agreement shall be construed and interpreted in accordance with the laws of the State o[
Idaho without retbrence to its choice of law provisions.
Venue for any litigation arising out olor retated to this Agreement will lie in the District Court of
the Fourth Judicial District of ldaho in and for the County of Ada.
ARTICLE XIX; DISPUTES AND DEFAULT
Disputes - All disputes related to or arising under this Agreement, including, but not limited to. the
interpretatiorr of the terms and conditions of this Agreement, will be submitted to the appropriate
24
Black Mesa Energy v. IPCo - Exhibit 6 - Page 75 of 98
authority fbr re.solution.
19.2 Notice of,Defhult
19.2.1 Det'aults. lf either Party fails to perfbrm any of the tcrms or conditions of this
greement (an "event of delautt"), the non-detaulting Party shall cause notice in writing
to be given to the detbulting Party, specifying the manner in which such detault
occurred. lf the del'aulting Party shall fail to cure such detault within the sixty (60) days
afterservice olsuch 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 thils to ditigently pursue such cure, then the
non-delaulting Party may, at its option, terminate this Agreement and/or pursue its legal
or equitable remedies.
19.2.2 Material Breaches - The notice and cure provisions in paragraph 19.2.1 do not apply to
defaults identit'ied in this Agreement as Material Breaches. Material Breaches must be
cured as expeditiously as possible following occurrence of the breach or if a specific
cure and/or inability to cure is idcntit'ied by this Agreement for the specitic Material
Breach then that cure shall apply.
l9.i Prior to the Operation Date and thereafter tbr the t-ull term of this Agreement, Seller will provide
ldaho Power with the following:
19.3.1 lnsurance - Evldence of compliance with the provisions of Appendix E. l[Selter lails
to comply, such thilure will be a Material Breach.
19.3.2 Engineer's Certifications - Every three (3) years atter the Operation Date, Seller will
supply ldaho Power with a completed Certiflcation of Ongoing Operations and
Maintenance tbrm as specified in Appendix C. the certit'ication will be t'rom a
Registered Professional Engineer licensed in the State of ldaho. Seller's failure to
supply the required certitjcate will be an event of det-ar.rlt. Such a deiault may only be
r;ured by Seller providing the required certificate; and
25
Black Mesa Energy v. IPCo - Exhibit 6 - Page 76 of 98
20. I
2tt
22.1
l9.l.l Licenses i Permits i Determinations - During the tirll term oIthis Agreerncnt. Sellcr
shall maintain compliance with all permits, liccrrses and determinations described in
paragraph 4.t.1 of this Agreement. ln addition, Seller will sr.rpply ldaho Power with
copies of any new or additional pennits, licenses or determinzrtions. At least every t'itlh
Contract Year, Seller will update the documentation described in Paragraph 4.1.1. tf at
any time Setler fails to maintain compliance with the permits, licenses and
detcrminations described in paragraph 4. l. I or to provide the documentation required
by this paragraph, such thilure will be an event ot defhult and may only be cured by
Seller submitting to ldaho Power evidence ot'compliance fiom the permitting agency.
ARTICLE XX: GOVERNMENTAT. AUTHORIZA'I'lON
This Agreement is subject to the jurisdiction of those governmental agencies having control over
either Party of this Agreement.
ARTICI,E XXI: COMMISSION ORDER
Idaho Power shall tile this Agreement h-rr its acceptance or re"iection by the Comrnission. This
Agreement shal lonly become tinally etIective upon the Commission's approval of all tenns an<1
provisions hereol without change or condition and declaration that all payments to be made to
Seller hereunder shall be allowed as prudently incurred expenses tbr ratemaking purposes.
ARTICLE XXIt: SUCCESSORS AND ASSICNS
This Agrecment and shall be binding upon ancl inure to the benetit olthe respective successors and
assigns of the Parties hereto. Neither this Agreement nor any rights or obligations of either Party
hereunder may be assigned, in whole or in part. by operation of law or othcr',vise, without the prior
written consent of both Parties. which consent shall not be unreasonably rvithheld. Any party with
lvhish [daho Power may consoliclatc, merge, convcy or transfer substantially all of its electric utility
assets, shall automatically', without further act. and without need of'consent or approval by the
26
Black Mesa Energy v. IPCo - Exhibit 6 - Page 77 of 98
Seller. succeed to all of ldaho Power's rights, obligations and interests under this Agreement. Any
purported assignment in derogation of the foregoing shall be void. This article shall not prevent a
financing entity with recorded or secured rights t'rom exercising all rights and remedies available
to it under law or contract. Idaho Power shall have the right trr be notified by the financing entity
that it is exercising such rights or remedies.
ARTICLE XXlll: MODIFICATION
23.1 No moditication to this Agreement shall be valid unless it is in writing and signed by both Parties
and subsequently approved by the Commission.
ARTICLE XXIV: TAXES
24.1 Each Party shalt pay befbre delinquency all taxes and other governmental charges which, if failed
to be paid when due, could result in a lien upon the Facitity or the Interconnection Facilities.
ARTTCLE XXV: NOTICES AND AUTHORIZED ACENTS
25.1 Notices - All written notices under this Agreement shall be directed as follows and shall be
considered delivered when faxed, e-mailed and cont'irmed with deposit in the U.S. Mail, first-
class, postage prepaid, as tbllows:
To Seller:
ftiginaldocument to:
Black Mesa Energy, LLC
Brian Lynch
PO Box 273 t
Palos Verdes,CA90274
Telephone: 3 I 0-7 50-7'796
E-mai I : !21 y n g i(@r':d w' :o,.le t t c rr{'r -ctl r.tl
Originaldocument to:
27
To ldaho Power:
Black Mesa Energy v. IPCo - Exhibit 6 - Page 78 of 98
Vise Presidcnt, Power Supply
ldaho Power Company
PO Box 70
Boise, ldaho 83707
Email : [e-mail]
Cooy ofdocument to:
Cogeneration and Small Power Production
Idaho Power Company
PO Box 70
Boise,Idaho 8370"7
E-mai I : [e-mail]
Either Party may change the contact penion and/or address information listed above, by providing
written notice t'rom an authorized person representing the Party
25.2
26.1
Authorized Agent(s)
Name Title
Brian lvnch Manarer
The Seller may modify the Authorized Agents by requesting and completing an Authorized
Agent tbrm provided by ldaho Power. This document will include the requested changes and
require signature(s) from an authorized party ofthe Seller.
ARTICLE XXVI: ADDITIONAL TERMS AND CONDITIONS
Equal Emoloyment During pertbrmance, pursuant to this Agreement, Seller agrees to comply
with all applicabte equal employment opportunity, small business, and affirmative action laws
and regulations. All Equal Employment Opportunity and afT'irmative action laws and regulations
are hereby incorporated by this relerence, including provisions of l8 U.S.C. $ 4212, Executive
Order I 1246, as amended. and any subsequent executive orders or other laws or regulations
28
Black Mesa Energy v. IPCo - Exhibit 6 - Page 79 of 98
relating, to equal opportunity tbr employmenl on govcrnmtsnt contracts. To the extent this
Agrcement is covcred by F,xecutive Order 11246, the trcltlal Opp<.rrtunity ('lauses contained in 4t
C.F.R. 60-1.4.41 tl.F.R.60-250.5, and,lt CFR 60-741.5 are incorporated herein by ret'crence.
26.2 Prior to the Seller executing this Agreernent, the Scller shall have:
a) Submitted an interconnection application tbr this Facility and is in compliance with alt
payments and requirements ot' the interct-rnnection prouess.
b) Acknowledgcd responsibility fbr all interconnection costs and any costs associated with
acquiring adequate firm transmission capacity to enable the project to be classitled as an
ldaho Power DNR. Il tinal interconnection or transmission str.rdies are not complete at the
time the Seller cxecutes this Agrrement, the Seller understands that the Seller's obligations
to pay Delay Darnages and 'l'errnirration Darnages associated with the pro.iect's lailure to
achieve the Operation Date by the Scheduled Opcration Date as specitied in this Agreement
is not relieved by tinal interconncction or transmission costs, processes orschedules.
c) Provide acceptable and verifiable evidence to ldaho Power that demonstrates the Facility
is eligible fbr the pubtished avoided costs requestcd by thc Seller and contained within
this Agreement. Commission C)rder l-1062 ef'tective June I . 20 18, provides the current
published avoided costs tbr Non-Seasonal H,vdro Facilities. Seasonal Hydro Facilities,
Other Facilities, Solar Facilities, and Wind F'acilities. Cr;rnrnission Order 32697 provides
tbr tirlt capacity paynlcnts tirr existing projects that have requested replacement contracts
atler their existing contract expires.
26.3 lhis Agreement inclLrdes the tbllowing appendices, which are attached hereto ancl included by
ref'erence:
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Generation Scheduling and Reporting
Facility and Point oIDeliverl
Engineer's Clerti t'ications
Energy Prices
Insurance Requi rements
29
Black Mesa Energy v. IPCo - Exhibit 6 - Page 80 of 98
27.t
ARTICLE XXVII: SEVERABILTTY
The invalidity or unenforceability of any term or provision of this Agreement shall not affect the
validity or enforceability of any other terms or provisions and this Agreement shall be construed
in all other respects as if the invalid or unenflorceable term or provision were omitted.
ARTICLE XXVIII: COUNTER
This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.
28. I
30
Black Mesa Energy v. [PCo - Exhibit 6 - Page 8l of 98
29.1
By
ARTICLE XXIX: ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement of the Parties concerning the subject matter
hereof and supersedes all prior or contemporaneous oral or written agreements between the
Parties concerning the subject matter hereof.
lN WITNESS WHEREOF, The Parties hereto have caused this Agreement to be executed
in their respective names on the dates set forth below:
Idaho Power Company Black Mesa Energy, LLC
By
Brian Lynch
Manager
Dated
1r26i20
"ldaho Power""Sellcr'
3l
Dated
Black Mesa Energy v. IPCo - Exhibit 6 - Page 82 of 98
APPENDIX A
A -I MONTHLY POWER PRODUCTION AND SWITCHINC REPORT
At the end oleach month the following required documentation will be submitted to:
ldaho Power Company
Attn: Cogeneration and Small Power Production
PO Box 70
Boise, Idaho 83707
The meter readings required on this report will be the readings on the ldaho Power meter equipment
measuring the Facility's total energy deliveries and Station Usage delivered to ldaho Power and the
maximum delivered energy (kW) as recorded on the metering equipment and/or any other required energy
measurements to adequately administer this Agreement. This document shall be the document to enable
ldaho Power to begin the energy payment calculation and payment process. The meter readings on this
report may not be used to calculate the actual payment, but instead will be a check of the automated meter
reading intbrmation that will be gathered as described in item A-2 below;
32
Black Mesa Energy v. IPCo - Exhibit 6 - Page 83 of 98
Reason
Project Name
Address
City
Nleter Number:
End of Nlonth kWh Meter Reading:
Beginning of Month kWh Meter:
Difference:
Times Vleter Constant:
kWh for the Month:
Metered Demand:
Breaker Opening Record
Date Time Meter
* Breaker Ooenins Reason Codes
I Lack of Adequate Prime Mover
2 Forced Outage of Facility
3 Disturbance of [PCo System.l Scheduled Maintenance
5 Testing of Protection Systems
6 Cause Unknown
7 Other (Explain)
Idaho Power Company
Cogeneration and Small Power Production
UIONTHLY POWER PRODUCTTON AND SWITCHING REPORT
Month Year
Project
Phone Number:
State zip
Facility
Output
Station
Usaqe
Metered
Maximum
kw
Net Generation
Breaker Closing Rccord
Date Time Meter
I hereby certify that the above meter readings
are truc and correct as of Nlidnight on the last day
of the above month and that the switching record is
accurate and complete as required by the Energy
Sales Agreement to which I am a Party.
Signature Date
.) -t
Black Mesa Energy v. lPCo - Exhibit 6 - Page 84 of 98
A.2 AIJTOMA IHD METER READINC COLLECTION PROCF.SS
Monthly, Idaho Power will use the provided metering and telemetry equipment and processes to collect
the meter reading information from the ldaho Power provided metering equipment tlrat measures the Net
Energy and energy delivered to supply Station Use for the Facility recorded at 12:00 AM (Midnight) of
the last day of the month.
The meter information coltected will include energy deliveries, Station Use, the maximum delivered
power (kW) and any other required energy measurements to adequately adrninister this Agreement.
A-3 SELLER CONTACT INFORMATION
Se I [er's Contact lntbrmation
Proiect Manaqement
Name:
Telephone Number:
Cell Phone:
E-Mail:
24-Hour Proiect Operational Contact
Name:
Telephone Number:
Cell Phone:
E-Mail:
Brian Lynch
310-750-7796
310-750-7796
bly [e-mail]
Brian Lynch
f t0-750-7796
310-750-7796
blynch@redwoodenergy,com
Brian Lynch
3t0-750-7'.t96
3 I 0-750-7796
[e-mail]
Project On-site Contact i n formation
Name:
Telephone Number:
Cell Phone:
E-Mail:
31
Black Mesa Energy v. IPCo - Exhibit 6 - Page 85 of 98
l5
Black Mesa Energy v. IPCo - Exhibit 6 - Page 86 of 98
APPENDIX B
FACILIl'Y AND POINTOF DELIVERY
Project Name: Black Mesa Energy 2
Projcct Number:
B.I DESCRIPTION OF FACILITY
The expected design of the system witl consist of an enerry storage system that is charged by
renewable enerry and discharged to ldaho Powcr at the point of delivery. The system will have a
nameplate capacity of 20 MW-AC as measured at the point of interconnection with 0.95
leading/lagging power factor. The energy storage system will consist of chemical (e.g. lithium-ion)
or mechanical (e.g. flywheel) energy storage devices that will be connected in series and parallel
cornbination to either the AC bus of the Facility via Power Conversion Systems (PCS) that convert
bidirectional between DC and AC electricity or to the DC bus of the Facility within the generation
system via DC/DC converters. Renewable encrry will be supplied by approximately 28 MW-DC
of solar PV modules mounted on single-axis tracking connected in series and parallel combination
to sr:lar inverters that convert DC electricity to AC. The energy storage system and renewable
energy generation will be controlled and automated by a plant-controller and SCADA system that
actively monitors ener5/ production, baftery state-of-charge, and other variables of the system to
determi ne charge and discharge functionality.
Facility Nameplate Capaciry: 20 MW-AC
B-2 LOCATION OF FACTLITY
Near: Glenn's F'erry, ldaho
Actual or nearest physical street address: 5498 E. Black Mesa Rd., King Hill, lD 83633
CPS Coordinates: Latitude Decimal Degrees 42.906403
Longitude Decimal Degrees -l I5.210069
State: Idaho County: Elmore
Description of lnterconnection Location: ldaho Power Black Mesa Substation
B-3 SCHEDULED F-IRST ENERCY AND OPERATION DATE
First Energy Date: May 1,2023
Operation Date: June 1,2023
36
B-4 MAXIMUM CAPACITY AMOUNT:
Black Mesa Energy v. IPCo - Exhibit 6 - Page 87 of 98
B-5
B-6
Thc maximum capacity amoLrnt is 20 MW-AC r,vhich is consistent r,vith the value provided by thc
Seller to ldaho Power in accordance with the ClA. This value is [he maximum energy (kW) that
potentially courld be delivered by the Seller's Facility to the ldaho Power electrical system at any
moment in time.
POINT OF DELIVERY
"Point of Delivery" means, unless other,wise agreed by both Parties, the point of where the
Seller's Facility energy is delivered to the [daho Power electrical system. The CIA will determine
the specific Point oIDelivery fbr this Facility. The Point of-Delivery identitled by the CIA will
become an integral part of this Agreement.
LOSSES
If the ldaho Power Metering equipment is capable of measuring the exact energy deliveries by the
Seller to the ldaho Powcr electrical system at the Poirrt of Delivery, no Losses will be calculated
forthis Facility. If the ldaho Power Metering Equipment is unable to measure the exact energy
deliveries by the Seller to the tdaho Power electrical system at the Point of Delivery. a Losses
calculation wilI be established to measure the energy losscs (kWh) between the Seller's Facility
and the ldaho Power Point of Delivery. This loss calculation will be initially se|at2Yo of the kWh
energy production recorded on the Facility generation metering equipment. At such time as Seller
provides Idaho Power with the electrisal equipment specitications (transtbrmer loss specitications,
condLrctorsizes, etc.) of alI of tlre electrical equipment between the Facility and the ldaho Power
electrical system. ldaho Power will contigure a revised loss calculation fbrmula to be agreed to by
both partics and uscd to calculate the kWh Losses fbr the remaining term ol the Agreement. If at
any time during the term of this Agreernent, ldaho P<-rwer determines that the loss calculation does
not correctly rcflcct the actual kWh losses attributed to the electrical equipment betrveen the
Facility and the ldaho Power electrical system. ldaho Power may adjust the calculation and
retroactively adjust the prcvious month's kWh loss calculations.
37
Black Mesa Energy v. IPCo - Exhibit 6 - Page 88 of 98
B-7 DESTCNATED NETWORK RESOURCE (DNR)
I'his Facility is an ldaho Power DNR pursuant to an existing energy sales agreement. 'l'he DNR
status will continue if this Agreement is I ) executed and approved by the Commission 2) a GIA
has been executed by both parties and 3) the Seller is in compliance with all requirements of that
CIA.
ldaho Power cannot accept or pay tbr generation flrom this Facility if the Facility has not achieved
the status of being an ldaho Power DNR. Federal Enerry Regulatory Commission C'FERC")
rules require ldaho Power to prepare and submit the application to achieve DNR status lor this
Facility. Because much of the information ldaho Power 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 oflthe required infbrmation fiom the Seller. Prior to ldaho Power
beginrring the process to enable ldaho Power to submit a request for DNR status for this Facility,
the Seller shall have l) filed a Generation lnterconnection application, 2) submitted all intbrmation
required by tdaho 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 lo complete this
Agreemcnt in a timcly manner. Seller's failure to provide complete and accurate information
in a timely manner can significantly impact ldaho 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.
l8
Black Mesa Energy v. tPCo - Exhibit 6 - Page 89 of 98
APPENDIX C
ENC INEER'S CERTIFICATION
OF
OPERATIONS & TVIAINTENANCE POLICY
The undersigned on behalf of himseltTherself and
, hereinafter collectively retbrred to as "Engineer," hereby states and certifies to the Seller as
lollows:
t. That Engineer is a Licensed Professional Engineer in good standing in the State of ldaho.
2. That Engineer has reviewed the Energy Sales Agreement, hereinafter refened to as the
"Agreement," between tdaho Power as Buyer, and as Seller, dated
l. That the cogeneration or small power production project which is the subject of the Agreement and
this Statement is identitied as [daho Power Company Facility No.and is hereinafter
relerred to as the "Project."
4. That the Project, which is commonly known as the _koject, is located in
Sestion Township Range Boise Meridian,County, Idaho.
5. That Engineer recognizes that the Agreement provides tbr the Project to furnish electrical energy
to tdaho Power for a _ year period.
6. That Engineer has substantial experience in the design, construction and operation of electric power
plants of the same type as this Project.
1. That Engineer has no economic relationship to the Design Engineer of this Project.
8. '[hat Engineer has reviewed and/or supervised the review of the Policy tbr Operation and
Maintcnance ("O&M") for this Project and it is his professionalopinion that, said Project has been
designed and built ttr appropriate standards, and adherence to said O&M Poticy will result in the Project's
39
Black Mesa Energy v. IPCo - Exhibit 6 - Page 90 of 98
producing at or near the design electrical output, efliciency and plant factor for the full Coniact Term of
years.
9. That Engineer recognizes that ldaho Power, in accordance with paragraph 5.2 of the Agreement, is
relying on EngineeCs 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.8. Stamp)
Date
40
Black Mesa Energy v. IPCo - Exhibit 6 - Page 9l of 98
and
APPENDIX q
FINCtN E:11R'S C ER'l'lF TCATION
OF
ONGOING OPERATIONS AND MAINTENANCE
'['he undersigned , on behalf of himselfTherself
hereinafter collectively referred to as "Engineer," hereby states and
certifies to the Seller as follows:
l. That Engineer is a [,icensed Professional Engineer in good standing in the State of ldaho.
2. That Engineer has reviewed the Energy Sales Agreement, hereinafter referred to as the
"Agreement," between ldaho Power as Buyer,and as Seller, dated
3. That the cogeneration or small power production project which is the subject of the Agreement and
this Statement is identified as ldaho Power Company Facility No.and hereinatter referred
to as the "Project".
4. I'hat the Project, which is commonly known as the Project. is located in
Section Township Range Boise Meridian.County, ldaho.
5. That Engineer recognizes that the Agreement provides for the Project to fumish electrical energy
to tdaho Power tbr a _ year period.
6. That Engineer has substantial experience in the design" construction and operation of electric power
plants of the same type as this Project.
1. That Engineer has no economic relationship to the Design Engineer of this Project.
4t
Black Mesa Energy v. IPCo - Exhibit 6 - Page 92 of 98
6. That Engineer has made a physical inspection of said Project, its operations and maintenance
records since the last previous certified inspection. The Engineer certit'ies, 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 Poticy continues, the Project will
continue producing at or near its design electrical output, efficiency and plant thctor tbr the remaining
years of the Agreement.
9. That Engineer recognizes that [daho Power, in accordance with paragraph 5.2 of the Agreement,
is relying on Engineer'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
hislher knowledge and therefore sets his/her hand and seal below.
By
(P.E. Stamp)
Date
42
Black Mesa Energy v. IPCo - Exhibit 6 - Page 93 of 98
APPENDIX C
ENC INEER'S CERTIFICA'I'ION
OF
DESIGN & CONSTRUCTION ADEQUACY
The undersigned on behatf of himselflherself and
hereinafter collectively retbrred to as "Engineer", hereby states and certifies
to ldaho Power as fbllows:
I . That Engineer is a Licensed Professional Engineer in good standing in the State of ldaho.
2. That Engineer has reviewed the Energ5r Sales Agreement, hereinafter ref'erred to as the
''Agreement'''betweenIdahoPowerasBuyer'and-asSeller,dated
)That the cogeneration or small power production project, which is the subject of the
Agreernent and this Statement, is identit'ied as ldaho Power Company Facility No and
is hereinafter retbrred to as the "Project".
4- That the Project, which is commonly known as the Project, is located in
Section Township Range _, Boise Meridian.County, ldaho
5 That Engineer recognizes that the Agreement provides for the Project to fumish electrical
enerry to ldaho Power fbr a year period.
6. That Engineer has sLrbstantial experience in the design, conslruction and operatiorr of
electric power plants of the same type as this Project.
7. 'fhat Engineer has no economic relationship to the Design Engineer of this Project and has
made the analysis of the plans and specitr-cations independently.
8. That Engineer has reviewed the engineering design and construction ol the Project,
including the civil work. electrical work, generating equipment, prime mover conveyance system, Seller
furnished Interconnection Facilities and other Project facilities and equipment.
4,1
Black Mesa Energy v. IPCo - Exhibit 6 - Page 94 of 98
9. That the Project has been constructed in accordance with said plans and specifications, all
applicable codes and consistent with Prudent Electrical 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 maintenance practices by Seller, the Project is capable of perfbrming in accordance with the
tenns of the Agreement and with Prudent Electrical Practices tbr a _ year period.
ll. That Engineer recognizes that ldaho Power, in accordance with paragraph 5.2 of the
Agreement, in interconnecting the Project with its system, is relying on Engineer's representations and
opinions contained in this Statement.
12. 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)
Date
44
Black Mesa Energy v. IPCo - Exhibit 6 - Page 95 of 98
APPENDIX D
ENERGY PRICES
(Prices based upon the Non-Levelized, Non-Fueled Avoided Cost Rates fbr Other Projects as posted by
the tdaho Public LJtilities Commission dated June t, 2019)
D-t Base Energy Purchase Price - For all Base Energy received during a calendar month. Idaho Power
shall pay Seller the product of (i) the Calendar Energy Price specified below for the applicable
delivery year, multiplied by (ii) the Seasonal Factor specitied below for the applicable delivery
month (such product the "Base EnergT Purchase Price").
Year
Celendar Enerrv
Prlce
tslM!flhl
2023 32.U
2024 35.76
2025 38.52
2026 52.7
2027 63.97
2028 66.23
2029 67.44
2030 59.15
2031 70.54
2032 73.36
2033 75.51
2034 77.62
2035 79.66
2036 81.97
2037 83.75
2038 85.64
2039 87.67
2040 90.47
204t 92.L7
2042 94.1
45
Black Mesa Energy v. IPCo - Exhibit 6 - Page 96 of 98
Month Seasonal Factor
Jan 1.00
Feb 1.00
Mar 0.74
Apr 0.74
May 0,74
Jun 1.00
Jul L.20
Auc 1.20
Sep 1.00
Oct 1.00
Nov L.20
Dec 7.20
46
Black Mesa Energy v. IPCo - Exhibit 6 - Page 97 of 98
APPENDIX E
INS URANCE REQU IREMENTS
The Seller shall secure and continuously carry insurance as specitied within this Appendix for the term of
the Agreement.
lnsu rance Requi rements :
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. lf the insurance coverage required in this Appendix is cancelled, materially changed or lapses
for any reason, the Seller will immediately notify ldaho Power in writing. This notice will
advise [daho Power of the specilic 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 Insurance Requirements within 5 days of the cancellation, material
change or lapse will constitute a Material Breach and ldaho Power may terminate this
Agreement.
3. Prior to the First F.nergy date and subsequently within l0 days of the annual anniversary of the
Operation Date, the Seller shall provide a Certificate of lnsurance in the name of tdaho Power
Company and list ldaho Power Company as an Additional lnsured Endorsement and Waiver
of Subrogation E,ndorsement.
4. The Certit'icate of lnsurance shall evidence the appropriate insurance coverage of
Comprehensive General Liability Insurance tbr both bodily injury and property damage with
limits equal to $1,000,000, each occurrence, combined single limit. The deductible for such
insurance shall be consistent with cunent lnsurance Industry Utility practices for similar
property.
47
Black Mesa Energy v. IPCo - Exhibit 6 - Page 98 of 98