20050815Application.pdf

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Lisa Nordstrom (ISB #5733)
Dean Brockbank
PacifiCorp
825 N .E. Multnomah, Suite 1800
Portland, OR 97232
Telephone: [phone]
FAX: [phone]
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Attorneys for Pacifi Corp
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF)
PACIFICORP FOR APPROVAL OF A POWER)
PURCHASE AGREEMENT FOR THE SALE
AND PURCHASE OF ELECTRIC ENERGYBETWEEN PACIFICORP AND SCHWENDlMAN WIND LLC
CASE NO. PAC-05- vCf
APPLICATION
COMES NOW PacifiCorp, d/b/a Utah Power & Light Company ("PacifiCorp" or the
Company ) and, pursuant to RP 52, hereby applies for an Idaho Public Utilities Commission
('"
IPUC" or the "'Commission ) Order approving a Power Purchase Agreement between
PacifiCorp and Schwendiman Wind L.C. ("Schwendiman ) under which Schwendiman would
sell and PacifiCorp would purchase electric energy generated by the Schwendiman Wind Facility
('"
Facility ) located near Idaho Falls, Idaho.
This Application is based on the following:
Schwendiman proposes to design, construct, install, own, operate and maintain a wind
generating facility with a nameplate capacity rating of 17.5 MW to be located in Bonneville
County, Idaho. The Facility will be a qualified small power production facility under the
applicable provisions of the Public Utilities Regulatory Policy Act of 1978 ("PURPA"
Application for Approval of Power Purchase
II.
On July 19 2005 , PacifiCorp and Schwendiman entered into a Power Purchase
Agreement ("Agreement") pursuant to the terms and conditions of Commission Order No.
29632, Commission Order 29646, and Commission Order 29839. Under the terms of that
Agreement, Schwendiman elected to contract with the Company for a 20-year term.
Schwendiman further elected to contract with the Company using the Non-Levelized Published
A voided Cost Rates as currently established by the Commission for energy deliveries of less than
10 average MW. The Agreement contains the various PURP A terms and conditions previously
approved by the Commission in other PURP A agreements and as revised by Commission Order
No. 29632 in Case No. IPC-04-8 (US Geothermal complaint). Commission Order 29839
provides that certain QF projects qualify for "grandfathering" treatment, provided that they
satisfy certain criteria set forth in the Order. Schwendiman has submitted to PacifiCorp a
completed Application for Interconnection Study and payment of the associated fee. Moreover
Schwendiman has provided information to PacifiCorp, attached hereto as Exhibit A
demonstrating other indicia of substantial progress and project maturity. PacifiCorp has not
conducted independent due diligence with respect to these other indicia.
III.
The total nameplate capacity rating of this Facility is 17 500 kW. As defined in
Paragraph 1.28 of the Agreement and as described in Section 7 of the Agreement, Schwendiman
will be required to provide data on the Facility that PacifiCorp will use to determine whether
under normal and/or average conditions, the Facility will not exceed 10 average MW on a
monthly basis. Furthermore, as described in Paragraph 5.4 of the Agreement, should the Facility
exceed 10 average MW on a monthly basis, PacifiCorp will accept the energy ("Inadvertent
Application for Approval of Power Purchase ill
Energy ) that does not exceed the Maximum Capacity Amount, but will not purchase or pay for
this Inadvertent Energy.
IV.
Paragraph 2.1 of the Agreement provides that the Agreement will not become effective until
the Commission has approved the Agreement and determined that the prices to be paid for
energy and capacity are just and reasonable, in the public interest, and that the cost incurred by
PacifiCorp for purchasing capacity and energy from Schwendiman are legitimate expenses, all of
which the Commission will allow PacifiCorp to recover in rates in Idaho in the event other
jurisdictions deny recovery of their proportionate share of said expenses.
Schwendiman has elected July 15, 2006 as the Commercial Operation Date for this Facility
(paragraph 2.6). Various requirements have been placed upon Schwendiman in order for
PacifiCorp to accept energy deliveries from this Facility. PacifiCorp will monitor compliance
with these initial requirements. In addition, PacifiCorp will monitor the ongoing requirements
through the full term of this Agreement.
VI.
The Agreement, as signed and submitted by the Parties thereto, contains Non-Levelized
Published Avoided Cost Rates in conformity with applicable IPUC Orders. All applicable
interconnections charges and monthly operation and maintenance charges under the Generation
Interconnection Agreement with PacifiCorp transmission will be assessed to Schwendiman.
Application for Approval of Power Purchase ill
VII.
Service of pleadings, exhibits, orders and other documents relating to this proceeding should
be served on the following:
Lisa Nordstrom
Dean Brockbank
Pacifi Corp
825 N.E. Multnomah, Suite 1800
Portland, OR 97232
I i sa. no rdstrom~pacifi corp. com
dean. brockbank~JJacificorp. com
Bruce Griswold
Manager, Origination
PacifiCorp
825 N.E. Multnomah, Suite 1800
Portland, OR 97232
bruce. griswo I d(illpacificorp. com
NOW, THEREFORE, based on the foregoing, PacifiCorp hereby requests that the
Commission issue its Order:
(1)Approving the Power Purchase Agreement between PacifiCorp and Schwendiman
Wind L.C. without change or condition; and
(2)Declaring that prices to be paid for energy and capacity are just and reasonable, in
the public interest, and that the cost incurred by PacifiCorp for purchasing capacity and energy
from Schwendiman are legitimate expenses, all of which the Commission will allow PacifiCorp
to recover in rates in Idaho in the event other jurisdictions deny recovery of their proportionate
share of said expenses.
Respectfully submitted this 12 day of August 2005.
Dean Brockbank
Attorney for PacifiCorp
Application for Approval of Power Purchase
CERTIFICATE OF MAILING
I HEREBY CERTIFY that on the 12th day of August 2005, I served a true and correct
copy of the within and foregoing APPLICA TION upon the following named parties by the
method indicated below, and addressed to the following:
Hand Delivered
S. Mail
Overnight Mail
FAX
ADDRESS TO BE ENTERED
Application for Approval of Power Purchase
Exhibit A
Page 1 of 3
RENAISSANCE ENGINEERING II DESIGN PLLC
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August 9, 2005
Pacificorp
825 NE Multnomah Street
Suite 600
Portland, OR 97232
Attn: John Lowe
RE: Schwendiman Wind Farm Grandfathering Aspects per Commission Order 29839
Dear John
The following information supports the IPUC requirements to grant grandfathering status to the
Schwendiman Wind Farm.
In fact, as you know, no other project in Idaho could lay claim to so much history and so many
points that would qualify for grandfathering. This project has been underway as a farmer-
developed project since June of2003. It has gone through many changes to get to what we now
are intending to build.
When we set our goal in January of this year to finalize the PPA for the Schwendiman Project in
July, 2005 no one could have anticipated what went on at the commission that month based on
Idaho Power s actions. Otherwise, I believe we all would have accelerated our efforts and had
this contract finished and approved well before such an event. We are still on track for turbine
delivery and major construction even this year, but due to the delays from the IPUC hearing we
will be working towards a February completion assuming things go well from here on.
I want to thank you personally and your team, especially John Younie and also Bruce Griswold
for being so supportive of this project and helping us get where we are now. It has taken us more
than two years to get right to the point of making this real. We can only hope the commission
approves the contract in a timely fashion so we can finally achieve the goal and dream of
constructing this project even perhaps still in 2005.
Sincerely,
cJll..
Brian D. Jackson, PE MBA CEM
Proj ect Engineer
Schwendiman Wind Farm Project
7800 Alfalfa Lane, Melba Idaho 83641 ph 208-495 -1111 fax [phone] brian(illclever-ideas.com
Exhibit A
Page 2 of3
RENAISSANCE ENGINEERING DESIGN PLLC
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The following points outline the history and grandfathering aspects in relation to the
Schwendiman Wind Farm pertaining to the IPUC order number 29839 requirements.
Initial Eligibility Determination in one or both of the following two points;
(dates prior to July 1 , 2005):
) Submittal of a signed power purchase agreement to the utility.
Initial power purchase agreement negotiations with Pacificorp were commenced during the
summer of2003 for the Schwendiman Wind Farm. Several turbine type changes and project size
changes occurred during the negotiations. Initially the project was anticipated to be a single
turbine, then a two phase project with one or two turbines first and ten to follow the second year.
Finally, the project has become 7 total turbines. In the midst of finalizing negotiations
Schwendiman Wind Farm submitted a signed power purchase agreement to Pacificorp on June
, 2005. Pacificorp was not yet willing to sign that document and thus, several points were
revised and finalized during further negotiations in July to reach a negotiated final contract
agreement agreeable to both parties.
) Submittal to the utility of a completed Application for Interconnection Study and
payment of fee.
Application for the initial interconnection studies commenced for the Schwendiman Wind Farm
in 2003 for a small stage early connection of a single turbine on a distribution line and were
adjusted and scaled up to two turbines in 2004. Later in 2004 the interconnection study was
scaled up to anticipate a transmission interconnection for the full-scale project. An initial request
for interconnection was submitted June 15, 2003 for interconnection to PacifiCorp s transmission
system and a System Impact Agreement was executed by Schwendiman on August 25 2003
along with a deposit of $17 100 to Pacificorp. Subsequently, Schwendiman asked that the study
be converted to interconnection with PacifiCorp s distribution system. The study and deposit
was then taken over by PacifiCorp s Distribution Function. On October 1 , 2004, Schwendiman
submitted another request for interconnection again on PacifiCorp s transmission system.
Schwendiman signed the November 5 2005 Generation System Impact Study Agreement on
November 9, 2004 and provided a deposit in the amount of $28,400. That Study was completed
March 7, 2005 at a cost of $7 800. The remainder of the study deposit was transferred to the
March 31 , 2005 Facilities Study Agreement and an additional deposit of $4 400 made to cover
the $25 000 estimated Facilities Study cost.
Currently the interconnection process is at the final design stage including ordering of equipment
and site construction on utility owned equipment pending approval of the Power Purchase
Agreement.
7800 Alfalfa Lane, Melba Idaho 83641 ph 208-495 -1111 fax [phone] brian~clever-ideas.com
Exhibit A
Page 3 of3
RENAISSANCE ENGINEERING DESIGN PLLC
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Additional indicia of substantial progress and proj ect maturity in one or more of the following
four categories:
) A wind study demonstrating a viable site for the project.
The Schwendiman Wind Farm has been under continuous study and evaluation since 2002
however most activity has taken place since June 2003 when the owners submitted the
application to the USDA and were awarded a federal grant to help them develop this project.
That wind study was scrutinized by National Renewable Energy Laboratory personnel as part of
the evaluation process. Furthermore, local data collected from anemometers near that site
closely correlate with actual site data and confirm that this is actually a "world class" resource as
quoted by Idaho National Laboratory experts. Summary statistics from this study are included as
exhibits in the signed final power purchase agreements.
) A signed contract for wind turbines.
Schwendiman Wind Farms has preliminary agreements for supply of wind turbines with actual
delivery scheduled for 2005. These agreements are subject to timely progress on the completed
signed, and approved power purchase agreement with Pacificorp. The wind turbine generating
units are in very short supply and very high demand. Furthermore, the price has been constantly
going up during 2005. Consequently, they are only available to this project during a short
window of time. Pacificorp has worked very closely during the months of June and July of 2005
with personal meetings and conference calls often several times per week to finish the power
purchase agreement as quickly as possible to facilitate this need. The original expected PP
finish date was intended for early July to facilitate signing the Turbine Purchase Order by the end
of July.
) Arranged financing for the proj ect.
The financing arrangements for the Schwendiman Project have been under continuous
negotiations for the past 12 months and are completely contingent on the signed, approved
Power Purchase Agreement as well as the signed and finalized Turbine Purchase Order. Such
financing is standing by currently for execution as fast as the PP A is approved to secure the
turbines themselves for this project as well as the substantial other substation equipment.
Schwendimans had to prove access to financing for two turbines to the USDA for grant approval
the rest of the proj ect financing has been a key to the total development now proposed.
) Related progress on the facility permitting and licensing path.
The Schwendiman Wind Farm has gone through several stages of permitting and licensing to get
the project underway. Environmental reviews were conducted as a condition of the USDA grant
in 2003 and 2004. Specifically, the initial conditional use permit for a single turbine was
approved in 2003. The entire project with multiple turbines went through the conditional use
hearing process and was approved by Bonneville County Planning & Zoning during 2004 for this
complete project. Everyone who testified was in favor at both hearings for this project.
7800 Alfalfa Lane, Melba Idaho 83641 ph 208-495 -1111 fax [phone] brian~c1ever-ideas.com
PO WER PUR CHASE AGREEMENT
BETWEEN
Schwendiman Wind LLC
AND
ACIFICORP
(IDAHO QUALIFYING FACILITY -OaMW /Month or less
Schwendiman Wind Power Project
Section 1: Definitions .........................................................................................................
Section 2: T erIn, Commercial Operation Date................................................................... 6
Section 3: Representations and Warranties......................................................................... 8
Section 4: Delivery of Energy and Capacity..................................................................... 10
Section 5: Purchase Prices ................................................................................................
Section 6: Operation and Control.....................................................................................
Section 7: Motive Force....................................................................................................
Section 8: Metering...........................................................................................................
Section 9: Billings , Computations and Payments ............................................................. 14
Section 10: Defaults and Remedies.................................................................................. 14
Section 11: Indemnification.............................................................................................. 16
Section 12: Liability and Insurance.................................................................................. 17
Section 13: Force Majeure................................................................................................
Section 14: Several Obligations........................................................................................
Section 15: Choice of Law ...................................................... .......................................... 20
Section 16: Partial Invalidity............................................................................................ 20
Section 17: Waiver............................................................................................................ 20
Section 18: Governmental Jurisdiction and Authorizations .............................................
Section 19: Successors and Assigns .................................................................................
Section 20: Entire Agreement........................................................................................... 21
Section 21 : Notices...........................................................................................................
POWER PURCHASE AGREEMENT
THIS POWER PURCHASE AGREEMENT , entered into this day of ~, 2005
is between Schwendiman Wind LLC, an Idaho limited liability company (the "SJller ) and
PacifiCorp, an Oregon corporation acting in its regulated electric utility capacity
PacifiCorp
).
Seller and PacifiCorp are referred to collectively as the "Parties" and
individually as a "Party
RECIT ALSA. Seller intends to construct, own, operate and maintain a wind power generation facility
for the generation of electric power located in Bonneville County, Idaho with an expected
Facility Capacity Rating of 17 500-kilowatt (kW) ("Facility"); andB. Seller intends to operate the Facility as a Qualifying Facility, as such term is defined in
Section 1.36 below.C. Seller estimates that the average annual Net Output to be delivered by the Facility to
PacifiCorp is 54 882 702 kilowatt-hours (kWh) pursuant to the monthly delivery schedules in
Exhibit D hereto, which amount of energy PacifiCorp will include in its resource planning; andD. Seller shall sell and PacifiCorp shall purchase the Net Output from the Facility in
accordance with the terms and conditions of this Agreement.E. This Agreement is a "New QF Contract" under the PacifiCorp Inter-Jurisdictional Cost
Allocation Revised Protocol.
NOW, THEREFORE, the Parties mutually agree as follows:
SECTION 1: DEFINITIONS
When used in this Agreement, the following terms shall have the following meanings:
1 "As-built Supplement" shall be a supplement to Exhibit A, provided by Seller
following completion of construction of the Facility, describing the Facility as actually built.
2 "Availability" means the percentage of time that the Facility is actually producing
Net Energy compared to the total amount of time that the Facility could have produced Net
Energy. The total amount of time that the Facility could have produced Net Energy is
determined by taking the total hours in the measurement period and deducting the total number
of hours of non-generation due to lack of Sufficient Wind, Force Majeure, and scheduled
maintenance. Where the Facility is comprised of multiple wind turbines, the Availability of the
Facility shall equal the weighted average of the availabilities of each individual turbine
calculated using the same method, above.
3 "Billing Period" means the time period between PacifiCorp s reading of its power
purchase billing meter at the Facility in the normal course ofPacifiCorp s business. Such periods
Schwendiman Wind Power Project
typically range between twenty-seven (27) and thirty-four (34) days and may not coincide with
calendar months.
1.4 "Commercial Operation means the Facility is fully operational and reliable, at
not less than ninety percent (90%) of the expected Facility Capacity Rating, and interconnected
and synchronized with the Transmission Provider s System. In order to meet the requirements
for Commercial Operation, all of the following events shall have occurred:
1.4.
1.4.
1.4.
PacifiCorp shall have received a certificate addressed to PacifiCorp from a
Licensed Professional Engineer (a) stating the Facility Capacity Rating of
the Facility at the anticipated time of Commercial Operation and (b)
stating that the Facility is able to generate electric power reliably in
amounts required by this Agreement and in accordance with all other
terms and conditions of this Agreement;
Start-Up Testing of the Facility shall have been completed;
PacifiCorp shall have received a certificate addressed to PacifiCorp from a
Licensed Professional Engineer, an attorney in good-standing in Idaho, or
a letter from PacifiCorp Transmission, stating that, in accordance with the
Generation Interconnection Agreement all required interconnection
facilities have been constructed, all required interconnection tests have
been completed and the Facility is physically interconnected with the
System in conformance with the Generation Interconnection Agreement;
and
1.4.4 PacifiCorp shall have received a certificate addressed to PacifiCorp from a
Licensed Professional Engineer, or an attorney in good standing in Idaho
stating that Seller has obtained all Required Facility Documents and, if
requested by PacifiCorp in writing, Seller shall have provided copies of
any or all such requested Required Facility Documents.
Seller shall provide notice to PacifiCorp when Seller believes that the Facility has achieved
Commercial Operation. PacifiCorp shall have ten (10) days after receipt of such notice either to
confirm to Seller that all of the conditions to Commercial Operation have been satisfied or have
occurred, or to state with specificity those conditions that PacifiCorp reasonably believes have
not been satisfied or have not occurred. If, within such ten (10) day period, PacifiCorp does not
respond or notifies Seller confirming that the Facility has achieved Commercial Operation, the
original date of receipt of Seller s notice shall be the Commercial Operation Date. If PacifiCorp
notifies Seller within such ten (10) day period that PacifiCorp believes the Facility has not
achieved Commercial Operation, Seller shall be obligated to address the concerns stated in
PacifiCorp s notice to the mutual satisfaction of both Parties, and Commercial Operation shall be
deemed to occur on the date of such satisfaction, as specified in a notice from PacifiCorp to
Seller. If Commercial Operation is achieved at less than one hundred percent (100%) of the
expected Facility Capacity Rating, Seller shall provide PacifiCorp an expected date for achieving
the expected Facility Capacity Rating, and the Facility s Capacity Rating on that date shall be the
final Facility Capacity Rating under this Agreement. In no event will delay in achieving the
Schwendiman Wind Power Project
expected Facility Capacity Rating beyond the Commercial Operation Date postpone the
Expiration Date specified in Section 2.
5 "Commercial Operation Date" means the date the Facility first achieves
Commercial Operation.
1.6 Commission" means the Idaho Public Utilities Commission.
7 "Contract Price" means the applicable price for energy and capacity, specified in
Section 5.
1.8 "Contract Year" means a twelve (12) month period commencing at 00:00 hours
on January 1 and ending on 24: 00 hours on December 31; provided, however that the first
Contract Year shall commence on the Commercial Operation Date and end on the next
succeeding December 31 , and the last Contract Year shall end on the last day of the Term.
1.9 Conforming Energy" means all Net Energy except Inadvertent Energy.
10 "Cut-in Speed" means the wind speed at which a stationary wind turbine begins
producing Net Energy, as specified by the turbine manufacturer, and set forth in Exhibit A.
11 "Delay Liquidated Damages
, "
Delay Period"
, "
Delay Price" and "Delay
Volume" shall have the meanings set forth in Section 2.3 of this Agreement;
12 "Effective Date shall have the meaning set forth in Section 2.1 of this
Agreement.
13 "Energy Delivery Schedule" shall have the meaning set forth in Section 4.2 of
this Agreement.
1.14 "Expiration Date shall have the meanIng set forth in Section 2.1 of this
Agreement.
1.15 "Facility" means Seller s Schwendiman Wind Power Project, including the
Seller s Interconnection Facilities, as described in the Recitals, Exhibit A, and Exhibit B.
16 "Facility Capacity Rating" means the sum of the Nameplate Capacity Ratings for
all generators comprising the Facility.
17 "Force Majeure" has the meaning set forth in Section 13.
18 "Generation Interconnection Agreement" means the generation interconnection
agreement to be entered into separately between Seller and PacifiCorp s transmission or
distribution department, as applicable, specifying the Point of Delivery and providing for the
construction and operation of the Interconnection Facilities.
Schwendiman Wind Power Project
19 "Inadvertent Energy" means: (1) energy delivered in excess of the Maximum
Monthly Purchase Obligation; and (2) energy delivered at a rate exceeding the Maximum
Facility Delivery Rate.
20 "Index Price" shall mean, for each market index as reported by Dow Jones TM at
Mid-C and Palo Verde, the Monday through Saturday Firm On-Peak and Off-Peak Prices. For
Sunday and NERC holidays, the 24-Hour Index Price shall be used, unless Dow Jones TM shall
publish a Firm On-Peak and Firm Off-Peak Price for such days for Mid-C and Palo Verde, in
which event such indices shall be utilized for such days. Dow Jones TM daily indexes are
calculated seven days a week, including NERC holidays. If the Dow Jones TM index or any
replacement of that index ceases to be published during the term of this Agreement, PacifiCorp
shall select as a replacement a substantially equivalent index that, after any appropriate or
necessary adjustments, provides the most reasonable substitute for the index in question.
PacifiCorp s selection shall be subject to Seller s consent, which Seller shall not unreasonably
withhold, condition or delay.
21 "Initial Year Energy Delivery Schedule" shall have the meaning set forth in
Section 4.
22 "Interconnection Facilities" means all the facilities and ancillary equipment usedto interconnect the Facility to the PacifiCorp transmission system, including electrical
transmission lines, upgrades, transformers, and associated equipment, substations, relay and
switching equipment, and safety equipment.
23 "Licensed Professional Engineer" means a person acceptable to PacifiCorp in its
reasonable judgment who is licensed to practice engineering in the state of Idaho, who has
training and experience in the engineering discipline(s) relevant to the matters with respect to
which such person is called to provide a certification, evaluation and/or opinion, who has no
economic relationship, association, or nexus with the Seller, and who is not a representative of a
consulting engineer, contractor, designer or other individual involved in the development of the
Facility, or of a manufacturer or supplier of any equipment installed in the Facility. Such
Licensed Professional Engineer shall be licensed in an appropriate engineering discipline for the
required certification being made. The engagement and payment of a Licensed Professional
Engineer solely to provide the certifications, evaluations and opinions required by this
Agreement shall not constitute a prohibited economic relationship, association or nexus with the
Seller, so long as such engineer has no other economic relationship, association or nexus with the
Seller.
24 "Material Adverse Change" shall mean, with respect to the Seller, if the Seller
in the reasonable opinion of PacifiCorp, has experienced a material adverse change in ability to
fulfill its obligations under this Agreement.
25 "Maximum Facility Delivery Rate" means the maximum instantaneous rate
(kW) at which the Facility is capable of delivering Net Output at the Point of Delivery, as
specified in Exhibit A, and in compliance with the Generation Interconnection Agreement.
Schwendiman Wind Power Project
26 "Maximum Monthly Purchase Obligation" means the maximum amount of
energy PacifiCorp is obligated to purchase under this Agreement in a calendar month, In
accordance with Commission Order 29632, the Maximum Monthly Purchase Obligation for a
given month, in kWh, shall equal 10 000 kW multiplied by the total number of hours in that
month.
27 "Minimum Availability Obligation" shall have the meaning set forth in Section
3 of this Agreement.
28 "Motive Force Plan shall have the meanIng set forth in Section 7 of this
Agreement.
29 "N ameplate Capacity Rating" means the maximum instantaneous generating
capacity of any qualifying small power or cogeneration generating unit supplying all or part
the energy sold by the Facility, expressed in MW, when operated consistent with the
manufacturer s recommended power factor and operating parameters, as set forth in a notice
from Seller to PacifiCorp delivered before the Commercial Operation Date and, if applicable
updated in the As-built Supplement.
30 "Net Energy" means the energy component, in kWh, of Net Output.
31 "Net Output" means all energy and capacity produced by the Facility, less station
use and less transformation and transmission losses and other adjustments, if any. For purposes
of calculating payment under this Agreement, Net Output of energy shall be the amount of
energy flowing through the Point of Delivery.
1.32 "Output Shortfall" shall have the meaning set forth in Section 5.2 of this
Agreement.
33 "Point of Delivery" means the high side of the generation step-up transformer(s)
located at the point of interconnection between the Facility and PacifiCorp s transmission
system, as specified in the Generation Interconnection Agreement and in Exhibit B.
34 "Prime Rate" means the rate per annum equal to the publicly announced prime
rate or reference rate for commercial loans to large businesses in effect from time to time quoted
by Citibank, N .A. If a Citibank, N .A. prime rate is not available, the applicable Prime Rate shall
be the announced prime rate or reference rate for commercial loans in effect from time to time
quoted by a bank with $10 billion or more in assets in New York City, N., selected by the
Party to whom interest based on the prime rate is being paid.
1.35 "Prudent Electrical Practices" means any of the practices methods and acts
engaged in or approved by a significant portion of the electrical utility industry or any of the
practices, methods or acts, which, in the exercise of reasonable judgment in the light of the facts
known at the time a decision is made, could have been expected to accomplish the desired result
at the lowest reasonable cost consistent with reliability, safety and expedition. Prudent Electrical
Practices is not intended to be limited to the optimum practice, method or act to the exclusion of
all others, but rather to be a spectrum of possible practices, methods or acts.
Schwendiman Wind Power Project
1.36 "QF" means "Qualifying Facility", as that term is defined in the version ofFERC
Regulations (codified at 18 CFR Part 292) in effect on the date of this Agreement.
37 "Replacement Price" shall mean the annual average Index Price expressed in
cents per kWh, plus additional transmission charges, if any, reasonably incurred by PacifiCorp
for delivery of the replacement energy to the Point of Delivery if not included in the
Replacement Price.
38 "Required Facility Documents means all material licenses, permits
authorizations, and agreements necessary for construction, operation, and maintenance of the
Facility, including without limitation those set forth in Exhibit C.
39 "Scheduled Commercial Operations Date" means the date by which Seller
promises to achieve Commercial Operation, as specified in Section 2.
1.40 "Scheduled Maintenance Periods" means those times scheduled by Seller with
advance notice to PacifiCorp as provided in Section 6 unless otherwise mutually agreed.
1.41 "Scheduled Monthly Energy" means the total volume of energy, in kWh
scheduled for delivery during a given calendar month, as specified by Seller in the Energy
Delivery Schedule.
1.42 "Start-Up Testing" means the completion of required factory and start-up tests as
set forth in Exhibit E hereto.
1.43 "Subsequent Energy Delivery Schedule shall have the meaning set forth in
Section 4.
1.44 "Sufficient Wind" means any hour during which the average wind speed is equal
to or greater than the manufacturer s rated Cut-in Speed for the wind turbines comprising the
Facility.
SECTION 2: TERM.. COMMERCIAL OPERATION DATE
This Agreement shall become effective after execution by both Parties and after
approval by the Commission ("Effective Date
);
provided however, this Agreement shall not
become effective until the Commission has determined that the prices to be paid for energy and
capacity are just and reasonable, in the public interest, and that the costs incurred by PacifiCorp
for purchases of capacity and energy from Seller are legitimate expenses, all of which the
Commission will allow PacifiCorp to recover in rates in Idaho in the event other jurisdictions
deny recovery of their proportionate share of said expenses.
Unless earlier terminated as provided herein, the Agreement shall remain in effect until the
twentieth (20th) anniversary of the Commercial Operation Date ("Expiration Date
Time is of the essence of this Agreement, and Seller s ability to meet certain
requirements prior to the Commercial Operation Date and to achieve Commercial Operations by
the Scheduled Commercial Operation Date is critically important. Therefore
Schwendiman Wind Power Project
By May 15, 2006, Seller shall use best efforts to obtain and provide to
PacifiCorp copies of all governmental permits and authorizations
necessary for construction of the Facility.
By May 15, 2006, Seller shall use best efforts to provide to PacifiCorp a
copy of an executed Generation Interconnection Agreement, whose terms
shall be consistent with the terms of this Agreement.
By May 15, 2006, Seller shall use best efforts to provide to PacifiCorp
written evidence acceptable to PacifiCorp that Seller has obtained
construction financing for the Facility (or alternatively permanent
financing subject only to construction of the Facility and Seller s execution
of the lender s loan documents).
2.4 By May 15, 2006, Seller shall use best efforts to provide to PacifiCorp
written evidence acceptable to PacifiCorp that Seller has obtained the
contractual right to take delivery of the type and quantity of wind turbines
specified in Exhibit A.
Prior to Commercial Operation Date, Seller shall provide PacifiCorp with
an As-built Supplement acceptable to PacifiCorp.
By July 15, 2006, Seller shall have achieved Commercial Operation
Scheduled Commercial Operation Date
Seller shall cause the Facility to achieve Commercial Operation on or before the
Scheduled Commercial Operation Date. If Commercial Operation occurs after the Scheduled
Commercial Operation Date, Seller shall be liable to pay PacifiCorp delay damages for the
number of days ("Delay Period") the Commercial Operation Date occurs after the Scheduled
Commercial Operation Date, up to a total of 90 days ("Delay Liquidated Damages
Delay Liquidated Damages equals the Delay Price times the Delay Volume
Where:
Delay Price" equals the positive difference, if any, of the Contract Price minus the
average Index Price for the Delay Period; and
Delay Volume" equals, for the Delay Period, the sum of: Scheduled Monthly Energy
for each month in the Initial Year Energy Delivery Schedule that the Delay Period occurs
times the number of days in the Delay Period for that month divided by the total number
of days in that month.
The parties agree that the damages PacifiCorp would incur due to delay in the Facility achieving
Commercial Operation on or before the Scheduled Commercial Operation Date would be
difficult or impossible to predict with certainty, and that the Delay Liquidated Damages are an
appropriate approximation of such damages.
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SECTION 3: REPRESENTATIONS AND WARRANTIES
PacifiCorp represents, covenants, and warrants to Seller that:
1.1 PacifiCorp is duly organized and validly existing under the laws of the
State of Oregon.
1.2 PacifiCorp has the requisite corporate power and authority to enter into
this Agreement and to perform according to the terms of this Agreement.
1.3
1.4
1.5
PacifiCorp has taken all corporate actions required to be taken by it to
authorize the execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby.
Subject to Commission approval, the execution and delivery of this
Agreement does not contravene any provision of, or constitute a default
under, any indenture, mortgage, or other material agreement binding on
PacifiCorp or any valid order of any court, or any regulatory agency or
other body having authority to which PacifiCorp is subject.
Subject to Commission approval, this Agreement is a valid and legally
binding obligation of PacifiCorp, enforceable against PacifiCorp in
accordance with its terms (except as the enforceability of this Agreement
may be limited by bankruptcy, insolvency, bank moratorium or similar
laws affecting creditors rights generally and laws restricting the
availability of equitable remedies and except as the enforceability of this
Agreement may be subject to general principles of equity, whether or not
such enforceability is considered in a proceeding at equity or in law).
Seller represents, covenants, and warrants to PacifiCorp that:
Seller is a limited liability corporation duly organized and validly existing
under the laws of Idaho.
Seller has the requisite power and authority to enter into this Agreement
and to perform according to the terms hereof, including all required
regulatory authority to make wholesale sales from the Facility.
2.3 Seller s shareholders, directors, and officers have taken all actions required
to authorize the execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated hereby.
2.4 The execution and delivery of this Agreement does not contravene any
provision of, or constitute a default under, any indenture, mortgage, or
other material agreement binding on Seller or any valid order of any court
or any regulatory agency or other body having authority to which Seller is
subj ect.
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This Agreement is a valid and legally binding obligation of Seller
enforceable against Seller in accordance with its terms (except as the
enforceability of this Agreement may be limited by bankruptcy,
insolvency, bank moratorium or similar laws affecting creditors' rights
generally and laws restricting the availability of equitable remedies and
except as the enforceability of this Agreement may be subject to general
principles of equity, whether or not such enforceability is considered in a
proceeding at equity or in law).
The Facility is and shall for the term of this Agreement continue to be a
QF. Seller has provided the appropriate QF certification, which may
include a Federal Energy Regulatory Commission self-certification to
PacifiCorp prior to PacifiCorp s execution of this Agreement. At any time
PacifiCorp has reason to believe during the term of this Agreement that
Seller s status as a QF is in question, PacifiCorp may require Seller to
provide PacifiCorp with a written legal opinion from an attorney in good
standing in the state of Idaho and who has no economic relationship,
association or nexus with the Seller or the Facility, stating that the Facility
is a QF and providing sufficient proof (including copies of all documents
and data as PacifiCorp may request) demonstrating that Seller has
maintained and will continue to maintain the Facility as a QF.
Neither the Seller nor any of its principal equity owners is or has within
the past two (2) years been the debtor in any bankruptcy proceeding, is
unable to pay its bills in the ordinary course of its business, or is the
subject of any legal or regulatory action, the result of which could
reasonably be expected to impair Seller s ability to own and operate the
Facility in accordance with the terms of this Agreement.
Seller has not at any time defaulted in any of its payment obligations for
electricity purchased from PacifiCorp.
Seller is not in default under any of its other agreements and is current on
all of its financial obligations.
10 Seller owns all right, title and interest in and to the Facility, free and clear
of all liens and encumbrances other than liens and encumbrances related to
third-party financing of the Facility.
Notice. If at any time during this Agreement, any Party obtains actual knowledge
of any event or information which would have caused any of the representations and warranties
in this Section 3 to have been materially untrue or misleading when made, such Party shall
provide the other Party with written notice of the event or information, the representations and
warranties affected, and the action, if any, which such Party intends to take to make the
representations and warranties true and correct. The notice required pursuant to this Section
shall be given as soon as practicable after the occurrence of each such event.
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SECTION 4: DELIVERY OF ENERGY AND CAPACITY
Delivery and Acceptance of Net Output-Unless otherwise provided herein
PacifiCorp will purchase and Seller will sell all of the Net Output from the Facility.
Energy Delivery Schedule Seller shall prepare and provide to PacifiCorp, on an
ongoing basis, a written schedule of Net Energy expected to be delivered by the Facility
Energy Delivery Schedule ), in accordance with the following:
During the first twelve full calendar months following the Commercial
Operations Date, Seller predicts that the Facility will produce and deliver
the following monthly amounts ("Initial Year Energy Delivery
Schedule
Month Scheduled Monthly Enen!Y (kWh)
January 071 166
February 206 283
March 6,404 729
April 156 171
May 995 378
June 670 214
July 563 729
August 280 759
September 983 783
October 3,445 831
November 513 262
December 591 398
2.2 Seller may revise the Initial Year Energy Delivery Schedule any time prior
to the Commercial Operation Date.
Beginning at the end of the ninth full calendar month of operation, and at
the end of every quarter thereafter, Seller shall supplement the Energy
Delivery Schedule with three additional months of forward delivery
estimates (which shall be appended to this Agreement as Exhibit D)
Subsequent Energy Delivery Schedule ), such that the Energy
Delivery Schedule will provide at least six months of delivery estimates at
all times. Seller shall provide Subsequent Energy Delivery Schedules no
later than 5 :00 pm of the 5th day after the due date. If Seller does not
provide a Subsequent Energy Delivery Schedule by the above deadline
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scheduled energy for the omitted period shall equal the amounts scheduled
by Seller for the same three-month period during the previous year.
Minimum Availability Obligation
. ("
Minimum Availability Obligation ) Except
as provided elsewhere in the Agreement, the Facility shall achieve an average Availability
minimum, during the first Contract Year, of at least 75%. During Contract Years 2-, the
Facility shall achieve an average Availability minimum of at least 85%. During the remaining
Contract Years of the Agreement, the Facility shall achieve an average Availability minimum of
at least 80%.
4.4 Availability Reporting Obligation.By January 31 of each Contract Year, Seller
shall provide an annual report documenting Facility Availability during the previous Contract
Year. In determining Availability, Seller shall use wind speed data and generation data collected
from Facility SCADA. Seller shall certify the accuracy of the Report, and the Report shall
include an electronic copy of the data used to calculate Availability, in a standard format
specified by PacifiCorp ("Annual Availability Report"). If Seller fails to deliver the Annual
Availability Report and accompanying data by January 31 , PacifiCorp shall pay Seller 85% of
Net Output Purchase Price as shown in 5., until the Annual Availability Report has been
satisfactorily provided.
Audit Rights.In addition to data provided under Section 4.4, PacifiCorp shall
have the right, but not the obligation, to audit the Facility s compliance with its minimum
availability obligation using any reasonable methods. Seller agrees to retain all performance
related data for the facility for a minimum of three years, and to cooperate with PacifiCorp in the
event PacifiCorp decides to audit such data.
Termination for Non-availability Unless excused by an event of Force Majeure
Seller s failure to deliver any Net Energy for a continuous period of three months shall constitute
and event of default.
SECTION 5: PURCHASE PRICES
Net Output Purchase Price PacifiCorp will pay Seller the following non-
levelized prices for capacity and energy, in accordance with Commission Order 29646:
Year Mills/kWh
2005 51.41
2006 52.
2007 53.
2008 55.
2009 56.
2010 57.
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2011 58.
2012 60.
2013 61.
2014 63.
2015 64.
2016 66.
2017 67.
2018 69.
2019 70.
2020 72.
2021 73.
2022 75.
2023 77.42
2024 79.
2025 81.03
2026 82.
Penalty for Breach of Availability Obligation: If the Availability in any given
Contract Year falls below the Minimum Availability Obligation for that Contract Year as
specified in Section 4., the resulting shortfall shall be expressed in MWh as the Output
Shortfall." The Output Shortfall shall be calculated in accordance with the following formula:
Output Shortfall = (Minimum Availability Obligation - Availability) x 54 882 702 KWh
(or subsequent applicable annual energy delivery estimate)
If an Output Shortfall occurs in any given Contract Year, Seller shall pay
PacifiCorp liquidated damages equal to the product of the Output Shortfall for that Contract
Year, multiplied by the positive difference, if any, obtained by subtracting the Contract Price
from the Replacement Price; provided, however, that if the Commercial Operation Date occurs
after the Scheduled Commercial Operation Date, the Output Shortfall for first Contract Year
shall be prorated on the basis of the number of days in the period from the Commercial
Operation Date through the end of December 31 , 2006. Each Party agrees and acknowledges
that (a) the damages that PacifiCorp would incur due to the Facility s failure to achieve the
Minimum Availability Obligation would be difficult or impossible to predict with certainty, (b)
the liquidated damages contemplated by this provision are a fair and reasonable calculation of
such damages, and (c) the required payment by Seller of such liquidated damages shall be
PacifiCorp s sole remedy for such deficiency in Net Output.
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5.4 Inadvertent Energy-PacifiCorp may accept Inadvertent Energy at its sole
discretion, but will not purchase or pay for Inadvertent Energy. At no time will the instantaneous
delivery rate of Net Energy exceed the Maximum Facility Delivery Rate.
SECTION 6: OPERATION AND CONTROL
6.1 Seller shall operate and maintain the Facility in a safe manner in accordance with
the Generation Interconnection Agreement, Prudent Electrical Practices and in accordance with
the requirements of all applicable federal, state and local laws and the National Electric Safety
Code as such laws and code may be amended from time to time. PacifiCorp shall have no
obligation to purchase Net Output from the Facility to the extent the interconnection between the
Facility and PacifiCorp s electric system is disconnected, suspended or interrupted, in whole or
in part, pursuant to the Generation Interconnection Agreement, or to the extent generation
curtailment is required as result of Seller non-compliance with the Generation
Interconnection Agreement.
Seller may cease operation of the entire Facility or any individual unit for
Scheduled Maintenance Periods not to exceed one hundred fifty (150) hours for each calendar
year at such times as are provided in the monthly operating schedule set forth as Exhibit D.
If the Facility ceases operation for unscheduled maintenance of twenty-five (25%)
percent of the units or more, Seller immediately shall notify PacifiCorp of the necessity of such
unscheduled maintenance, the time when such shutdown has occurred or will occur and the
anticipated duration of such shutdown. Seller shall notify PacifiCorp s generation coordination
desk, by sending an e-mail to wscc(fYpacificorp.com or telephoning 503-813-5394 or sending a
facsimile to 503-813-5512, of Seller s unscheduled maintenance. Seller shall take all reasonable
measures and exercise its best efforts to avoid unscheduled maintenance, to limit the duration of
such unscheduled maintenance, and to perform unscheduled maintenance during non-peak hours.
SECTION 7: MOTIVE FORCE
Prior to the Effective Date of this Agreement, Seller provided to PacifiCorp an engineering
report, demonstrating to PacifiCorp s reasonable satisfaction: (1) the feasibility that Facility Net
Energy will equal or exceed 54 882 702 kWh in each full calendar year for the full term of this
Agreement; and (2) the likelihood that the Facility, under average design conditions, will
generate at no more than 10 aMW in any calendar month ("Motive Force Plan ) acceptable to
PacifiCorp in its reasonable discretion and attached hereto as Exhibit F-, together with a
certification from a Licensed Professional Engineer attached hereto as Exhibit F -, certifying to
PacifiCorp that the Facility can reasonably be expected to perform as predicted in the Motive
Force Plan for the duration of this Agreement.
SECTION 8: METERING
PacifiCorp shall design, furnish, install, own, inspect, test, maintain and replace all
metering equipment required pursuant to the Generation Interconnection Agreement.
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Metering shall be performed at the location and in the manner specified in Exhibit
B and the Generation Interconnection Agreement. All quantities of energy purchased hereunder
shall be adjusted to account for electrical losses (as reasonably calculated by PacifiCorp), if any,
between the point of metering and the Point of Delivery, so that the purchased amount reflects
the net amount of power flowing into PacifiCorp s system at the Point of Delivery.
PacifiCorp shall periodically inspect, test, repair and replace the metering
equipment as provided in the Generation Interconnection Agreement or at the request of Seller if
Seller has reason to believe metering may be off and requests an inspection in writing. Seller
shall bear the cost for any Seller requests. If any of the inspections or tests disclose an error
exceeding two percent (2%), either fast or slow, proper correction, based upon the inaccuracy
found, shall be made of previous readings for the actual period during which the metering
equipment rendered inaccurate measurements if that period can be ascertained. If the actual
period cannot be ascertained, the proper correction shall be made to the measurements taken
during the time the metering equipment was in service since last tested, but not exceeding three
(3) Billing Periods, in the amount the metering equipment shall have been shown to be in error
by such test. Any correction in billings or payments resulting from a correction in the meter
records shall be made in the next monthly billing or payment rendered.
8.4 To the extent not otherwise provided in the Generation Interconnection
Agreement, all PacifiCorp s costs relating to all metering equipment installed to accommodate
Seller s Facility shall be borne by Seller.
SECTION 9: BILLINGS" COMPUTATIONS AND PAYMENTS
On or before the thirtieth (30th) day following the end of each Billing Period
PacifiCorp shall send to Seller payment for Seller s deliveries of Net Output to PacifiCorp,
together with computations supporting such payment. PacifiCorp may offset any such payment
to reflect amounts owing from Seller to PacifiCorp pursuant to this Agreement and the
Generation Interconnection Agreement.
Any amounts owing after the due date thereof shall bear interest at the Prime Rate
plus two percent (2%) from the date due until paid; provided, however that the interest rate shall
at no time exceed the maximum rate allowed by applicable law.
SECTION 10: D EF A UL TS AND REMEDIES
10.The following events shall constitute defaults under this Agreement:
10.1.1 Seller s failure to make a payment when due under this Agreement, or
maintain insurance in conformance with the requirements of Section 12 of
this Agreement, if the failure is not cured within ten (10) days after the
non-defaulting Party gives the defaulting Party a notice of the default.
10.1.2 Breach by a Party of a representation or warranty set forth in this
Agreement, if such failure or breach is not cured within thirty (30) days
following written notice.
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10.1.3 Seller s failure to cure any default under any commercial or financing
agreements or instrument (including the Generation Interconnection
Agreement) within the time allowed for a cure under such agreement or
instrument; or
10.1.4 A Party (a) makes an assignment for the benefit of its creditors; (b) files a
petition or otherwise commences, authorizes or acquiesces in the
commencement of a proceeding or cause of action under any bankruptcy
or similar law for the protection of creditors, or has such a petition filed
against it and such petition is not withdrawn or dismissed within sixty (60)
days after such filing; (c) becomes insolvent; or (d) is unable to pay its
debts when due.
10.5 A Material Adverse Change has occurred with respect to Seller and Seller
fails to provide such performance assurances as are reasonably requested
by PacifiCorp, within fifteen (15) days from the date of such request;
10.1.6 A Party otherwise fails to perform any material obligation (including but
not limited to failure by Seller to meet any deadline set forth in Section
2) imposed upon that Party by this Agreement if the failure is not cured
within thirty (30) days after the non-defaulting Party gives the defaulting
Party notice of the default; provided, however that, upon written notice
from the defaulting Party, this thirty (30) day period shall be extended by
an additional ninety (90) days if (a) the failure cannot reasonably be cured
within the thirty (30) day period despite diligent efforts, (b) the default is
capable of being cured within the additional ninety (90) day period, and
(c) the defaulting Party commences the cure within the original thirty (30)
day period and is at all times thereafter diligently and continuously
proceeding to cure the failure.
10.In the event of any default hereunder, the non-defaulting Party must notify the
defaulting Party in writing of the circumstances indicating the default and outlining the
requirements to cure the default. If the default has not been cured within the prescribed time
above, the non-defaulting Party may terminate this Agreement at its sole discretion by delivering
written notice to the other Party and may pursue any and all legal or equitable remedies provided
by law or pursuant to this Agreement. The rights provided in this Section 10 are cumulative such
that the exercise of one or more rights shall not constitute a waiver of any other rights.
10.3 If this Agreement is terminated because of Seller s default, Seller may not require
PacifiCorp to purchase energy or capacity from the Facility prior to the Expiration Date, and
Seller hereby waives its rights to require PacifiCorp to do so. This subsection 10.3 shall survive
the termination of this Agreement.
lOA If this Agreement is terminated as a result of Seller s default, Seller shall pay
PacifiCorp the positive difference, if any, obtained by subtracting the Contract Price from the
sum of the Replacement Price for the Scheduled Monthly Energy that Seller was scheduled to
provide for a period of twelve (12) months from the date of termination plus the estimated
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administrative cost to the utility to acquire replacement power ("Net Replacement Power
Costs ). Amounts owed by Seller pursuant to this paragraph shall be due within five (5)
business days after any invoice from PacifiCorp for the same.
SECTION 11: INDEMNIFICATION
11.1 Indemnities.
11.1.1
11.1.2
Indemnity by Seller. Seller shall release, indemnify and hold harmless
PacifiCorp, its directors, officers, agents, and representatives against and
from any and all loss, fines, penalties , claims, actions or suits, including
costs and attorney s fees, both at trial and on appeal , resulting from, or
arising out of or in any way connected with (a) the energy delivered by
Seller under this Agreement to and at the Point of Delivery, (b) any
facilities on Seller s side of the Point of Delivery, (c) Seller s operation
and/or maintenance of the Facility, or (d) arising from this Agreement
including without limitation any loss, claim, action or suit, for or on
account of injury, bodily or otherwise, to, or death of, persons, or for
damage to, or destruction or economic loss of property belonging to
PacifiCorp, Seller or others, excepting only such loss, claim, action or suit
as may be caused solely by the fault or gross negligence of PacifiCorp, its
directors, officers, employees, agents or representatives.
Indemnity by PacifiCorp. PacifiCorp shall release, indemnify and hold
harmless Seller, its directors, officers, agents, Lenders and representatives
against and from any and all loss, fines, penalties, claims, actions or suits
including costs and attorney s fees, both at trial and on appeal, resulting
from, or arising out of or in any way connected with the energy delivered
by Seller under this Agreement after the Point of Delivery, including
without limitation any loss, claim, action or suit, for or on account of
injury, bodily or otherwise, to, or death of, persons, or for damage to, or
destruction or economic loss of property, excepting only such loss, claim
action or suit as may be caused solely by the fault or gross negligence of
Seller its directors, officers, employees, agents Lenders or
representatives.
11.2 No Dedication. Nothing in this Agreement shall be construed to create any duty
, any standard of care with reference to, or any liability to any person not a Party to this
Agreement. 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 other Party or
to the public, nor affect the status of PacifiCorp as an independent public utility corporation or
Seller as an independent individual or entity.
11.3 Consequential Damages. EXCEPT TO THE EXTENT SUCH DAMAGES ARE INCLUDED
IN THE LIQUIDATED DAMAGES DELAY DAMAGES, OR OTHER SPECIFIED MEASURE OF DAMAGES
EXPRESSLY PROVIDED FOR IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER
P ARTY FOR SPECIAL, PUNITIVE, INDIRECT, EXEMPLARY OR CONSEQUENTIAL DAMAGES, WHETHER
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SUCH DAMAGES ARE ALLOWED OR PROVIDED BY CONTRACT TORT (INCLUDING NEGLIGENCE),
STRICT LIABILITY, STATUTE OR OTHERWISE.
SECTION 12: LIABILITY AND INSURANCE
12.1 Certificates. Seller shall provide PacifiCorp insurance certificate(s) (of "ACORD
Form" or the equivalent) certifying Seller s compliance with the insurance requirements
hereunder. Commercial General Liability coverage written on a "claims-made" basis, if any,
shall be specifically identified on the certificate. If requested by PacifiCorp, a copy of each
insurance policy, certified as a true copy by an authorized representative of the issuing insurance
company, shall be furnished to PacifiCorp.
12.Required Policies and Coverages. Without limiting any liabilities or any other
obligations of Seller under this Agreement, from the commencement of interconnection with
PacifiCorp s electric transmission system until the Termination Date of this Agreement, at its
own expense, Seller shall secure and continuously carry, with an insurance company or
companies rated not lower than "A- or better" by the A.M. Best Company, the insurance
coverage specified below:
12.1 Worker s Compensation insurance which complies with the laws of the
state within which the Wind Facility is located;
12.2 Commercial General Liability insurance with bodily injury and property
damage combined single limits of at least $1 000 000 per occurrence.
Seller shall maintain the policy in accordance with terms available in the
insurance market for similar electric generating facilities. Such insurance
shall include, but not necessarily be limited to, specific coverage for
contractual liability encompassing the indemnification provisions in this
Agreement, broad form property damage liability, personal injury liability,
explosion and collapse hazard coverage, products/completed operations
liability, and, where applicable, watercraft protection and indemnity
liability;
12.3 All Risk Insurance. The policy shall provide coverage in an amount equal
to not less than 80% of the current replacement in kind of the Facility for
all risks" of physical loss or damage except as hereinafter provided
including coverage for boiler and machinery, transit and off-site storage
accident exposure, but excluding the equipment owned or leased by
Operator and its subcontractors and their personal property. The policy
may contain separate sub limits and deductibles subject to insurance
company underwriting guidelines. Seller shall maintain the policy in
accordance with terms available in the insurance market for similar
electric generating facilities. The policy shall include coverage for
business interruption in an amount covering a period of indemnity equal to
twelve (12) months. Additional coverages to be included are:
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(a)Catastrophic Perils Insurance not less than 80% of the current
replacement cost of plant, building, and/or equipment.
12.Insurance Structure. Seller may satisfy the amounts of insurance required above by
purchasing primary coverage in the amounts specified or by buying a separate excess Umbrella
Liability policy together with lower limit primary underlying coverage. The structure of the
coverage is at Seller s option, as long as the total amount of insurance meets the above
requirements.
12.4 Occurrence-Based Coverage. The coverage required above, and any umbrella or
excess coverage , shall be "occurrence" form policies. In the event that any policy is written on a
claims-made" basis and such policy is not renewed or the retroactive date of such policy is to be
changed, the first insured Party shall obtain or cause to be obtained for each such policy or
policies the broadest basic and supplemental extended reporting period coverage or "tail"
reasonably available in the commercial insurance market for each such policy or policies and
shall provide the other Party with proof that such basic and supplemental extended reporting
period coverage or "tail" has been obtained.
12.Endorsement Items Seller shall immediately cause its insurers to amend its
Commercial General Liability and Umbrella or Excess Liability policies with all of the following
endorsement items , and to amend its Worker s Compensation policy with the endorsement items
set forth in Paragraphs 12.3 and 12.5.4 below:
12.
PacifiCorp and its Affiliates their respective directors, officers
employees, and agents as an additional insured under this policy and to the
maximum extent allowed by law, shall be provided with coverage at least
as broad as those required of the Seller by this Agreement;
This insurance is primary with respect to the interest of PacifiCorp and its
Affiliates and their respective directors, officers, employees, and agents;
Insurer hereby waives all rights of subrogation against PacifiCorp, its
Affiliates, officers, directors, employees and agents; and
12.5.4 Notwithstanding any provision of the policy, this policy may not be
canceled, non-renewed or materially changed by the insurer without
giving ten (10) days ' prior written notice to PacifiCorp.
12.5 Cross liability coverage so that the insurance applies separately to each
insured against whom claim is made or suit is brought, even in instances
where one insured claims against or sues another insured.
12.
12.
. .
12.Periodic Review. PacifiCorp may review this schedule of required insurance as
often as once every two (2) years. PacifiCorp may, in its discretion and if allowed by the
Commission, require the Seller to make changes to the policies and coverages described in this
Exhibit to the extent reasonably necessary to cause such policies and coverages to conform to the
insurance policies and coverages typically obtained or required for power generation facilities
comparable to the Facility at the time PacifiCorp s review takes place. In addition, Seller shall
have the right, subject to PacifiCorp s consent, to make changes in the coverages and limits of
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the Builder s All-Risk Insurance and the All-Risk Insurance required under this Section, to the
extent the coverages and limits specified herein are not reasonably available at commercially
reasonable rates.
SECTION 13: FORCE MAJEURE
13.1 As used in this Agreement
, "
Force Majeure" or "an event of Force Majeure
means any cause beyond the reasonable control of the Seller or of PacifiCorp which, despite the
exercise of due diligence, such party is unable to prevent or overcome. By way of example
Force Majeure may include but is not limited to acts of God, fire, flood, storms, wars, hostilities
civil strife, strikes, and other labor disturbances, earthquakes, fires, lightning, epidemics
sabotage, restraint by court order or other delay or failure in the performance as a result of any
action or inaction on behalf of a public authority which is in each case (i) beyond the reasonable
control of such party, (ii) by the exercise of reasonable foresight such party could not reasonably
have been expected to avoid and (iii) by the exercise of due diligence, such party shall be unable
to prevent or overcome. Force Majeure, however, specifically excludes the cost or availability of
fuel or motive force to operate the Facility or changes in market conditions that affect the price
of energy or transmission. If either party is rendered wholly or in part unable to perform its
obligation under this Agreement because of an event of Force Majeure, both Parties shall be
excused from whatever performance is affected by the event of Force Majeure, provided that:
13.1.1 the non-performing party, shall, within two (2) weeks after the occurrence
of the Force Majeure, give the other party written notice describing the
particulars of the occurrence, including the start date of the Force Majeure
the cause of Force Majeure, whether the Facility remains partially
operational and the expected end date of the Force Majeure; and
13.2 the suspension of performance shall be of no greater scope and of no
longer duration than is required by the Force Majeure; and
13.3 the non-performing party uses its best efforts to remedy its inability to
perform.
13.1.4 the non-performing party shall provide prompt written notice to the other
party at the end of the Force Maj eure event detailing the end date, cause
there of, damage caused there by and any repairs that were required as a
result of the Force Majeure event, and the end date of the Force Majeure.
13.2 No obligations of either party which arose before the Force Majeure causing the
suspension of performance shall be excused as a result of the Force Maj eure.
13.Neither party shall be required to settle any strike, walkout, lockout or other labor
dispute on terms which, in the sole judgment of the party involved in the dispute, are contrary to
the party s best interests.
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SECTION 14: SEVERAL OBLIGATIONS
Nothing contained in this Agreement shall ever be construed to create an association, trust
partnership or joint venture or to impose a trust or partnership duty, obligation or liability
between the Parties. If Seller includes two or more parties, each such party shall be jointly and
severally liable for Seller s obligations under this Agreement.
SECTION 15: CHOICE OF LAW
This Agreement shall be interpreted and enforced in accordance with the laws of the state of
Idaho, excluding any choice of law rules which may direct the application of the laws of another
jurisdiction.
SECTION 16: PARTIAL INVALIDITY
It is not the intention of the Parties to violate any laws governing the subject matter of this
Agreement. If any of the terms of the Agreement are finally held or determined to be invalid
illegal or void as being contrary to any applicable law or public policy, all other terms of the
Agreement shall remain in effect. If any terms are finally held or determined to be invalid
illegal or void, the Parties shall enter into negotiations concerning the terms affected by such
decision for the purpose of achieving conformity with requirements of any applicable law and
the intent of the Parties to this Agreement.
SECTION 17: 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 must
be in writing, and such waiver shall not be deemed a waiver with respect to any subsequent
default or other matter.
SECTION 18: GOVERNMENTAL JURISDICTION AND AUTHORIZATIONS
This Agreement is subject to the jurisdiction of those governmental agencies having control over
either party or this Agreement. PacifiCorp s compliance with the terms of this Agreement is
conditioned on Seller s submission to PacifiCorp prior to the Commercial Operation Date and
maintaining thereafter copies of all local, state and federal licenses, permits and other approvals
as then may be required by law for the construction, operation and maintenance of the Facility.
SECTION 19: SUCCESSORS AND ASSIGNS
This Agreement and all of the terms hereof shall be binding upon and inure to the benefit of the
respective successors and assigns of the Parties. No assignment hereof by either party shall
become effective without the written consent of the other party being first obtained and such
consent shall not be unreasonably withheld. Notwithstanding the foregoing, either Party may
assign this Agreement without the other Party s consent to a lender as part of a financing
Schwendiman Wind Power Project
transaction or as part of (a) a sale of all or substantially all of the assigning Party s assets, or (b) a
merger, consolidation or other reorganization of the assigning Party.
SECTION 20: ENTIRE AGREEMENT
20.This Agreement supersedes all prior agreements, proposals, representations
negotiations, discussions or letters, whether oral or in writing, regarding PacifiCorp s purchase of
Net Output from the Facility. No modification of this Agreement shall be effective unless it is in
writing and signed by both Parties.
20.By executing this Agreement, each party releases the other from any claims
known or unknown, that may have arisen prior to the Effective Date with respect to the Facility
and any predecessor facility proposed to have been constructed on the site of the Facility.
SECTION 21: NOTICES
21.All notices except as otherwise provided in this Agreement shall be in writing,
shall be directed as follows and shall be considered delivered if delivered in person or when
deposited in the U.S. Mail, postage prepaid by certified or registered mail and return receipt
requested
Notices PacifiCorp Seller
All Notices PacifiCorp Mr. Tyler Schwendiman
825 NE Multnomah Street Portland PO Box 262
Ririe, ID 83443OR 97232
Attn: Contract Administration EMail: tyler~holdenmccarty.com
Suite 600
Phone: (503) 813 - 5956
Facsimile: (503) 813 - 6291
Duns: 00-790-9013
Federal Tax ID Number: 93-0246090
All Invoices:Attn: Back Office, Suite 600
Phone: (503) 813 - 5674
Facsimile: (503) 813 - 5580
Scheduling:Attn: Resource Planning, Suite 600
Phone: (503) 813 - 6090
Facsimile: (503) 813 - 6265
Payments:Attn: Back Office, Suite 600
Phone: (503) 813 - 5674
Facsimile: (503) 813 - 5580
Wire Transfer:Bank One N .
ABA: 071000013
ACCT: 55-44688
Schwendiman Wind Power Project
Notices PacifiCorp Seller
NAME: PacifiCorp Wholesale
Credit and Attn: Credit Manager, Suite 1800
Collections:Phone: (503) 813 - 5684
Facsimile: (503) 813 - 5609
With Additional Attn: General Counsel. and
Notices of an Dean Brockbank, AttyEvent of Default
or Potential Phone: [phone] and (801) 220-
4568Event of Default Facsimile: [phone] and (801)to:220-3299
The Parties may change the person to whom such notices are addressed, or their addresses, by
providing written notices thereof in accordance with this Subsection.
Schwendiman Wind Power Project
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
in their respective names as of the date first above written.
PacifiCorp Schwendiman Wind LLC
By: I~~By:
Title: ffjem Title: President and CEO
EXHIB IT
DESCRIPTION OF SELLER'S FACILITY
Facility Capacity Rating: 500 kW at wind speed between 30 mph and 55 mph
The maximum possible output of each wind turbine unit could be up to 2624 kW based on four
656 kW generators in each unit, however, electronically this is limited to 2500 kW as listed on
the nameplate rating.
Maximum Facility Delivery Rate
The maximum net output of the Facility will not exceed the nameplate of 17 500 kW based on
ancillary station loads. However at this facility such auxiliary loads are very small so as to be
inconsequential and thus the maximum nameplate should be considered the maximum facility
output.
Location of the Facility: The Facility is to be constructed in the vicinity of Idaho Falls in
Bonneville County, Idaho. The location is more particularly described as follows:
Sections 3 and 4, of Township 2 North, Range 39 East
Sections 33 and 34 of Township 3 North, Range 39 East
The equipment to be installed meets and exceeds industry standards and Pacificorp requirements
for low voltage ride through and power factor compliance.
Seller s Facility current design consists of seven 2.5 MW wind turbine generators manufactured
by Clipper Wind. More specifically, each wind turbine at the Facility is described as:
Introduction
This document defines the major system attributes of the Clipper Windpower
Technology, Inc. (Clipper) 2.5 MW Wind Turbine Generator System. Clipper reserves the right
to change any specification contained herein without prior notice. It is the purpose of this
document to provide general sales information regarding the product represented.
General Specifications
Type
Number of Blades
Orientation
Horizontal Axis
Operation
Rotor Speed
Upwind
Variable Speed
6 - 15.5 rpm
Schwendiman Wind Power Project
Hub Height
Primary Braking
Power Output
Yaw
73., 75m or 80m
Aerodynamic, Full-Span Blade Pitch
2500 kW
Acti ve
m/ - 10 min average
25 m/s - 10 min average
29 m/s - 3 see average
Cut-in Wind Velocity
Cut-out Wind Velocity
Cut-out Wind Gust
Rotor
Diameter 93m
6793m
Clipper Designed
Swept Area
Type of Blades
Tilt
Tip Speed at Rated Output 75 m/s
Blade
B lade Length 43., 45., 48.
Fiberglass Reinforced EpoxyMaterial
Maximum Chord Length
Pitch System
Type
Drive
Individual Blade Pitch - Failsafe
Electro-mechanical Gearmotor
Motor Type
Failsafe Braking
Blade Bearings
DC Servo-drive
Battery Powered
Internal Gear - Ball Bearing
Hub
Type
Material
Spherical
Ductile Cast Iron
Gearbox
Type Distributed Generation
Schwendiman Wind Power Project
Gear Arrangement
Output Shafts
Multi -output , 2 Stage
:72.4
2675 kW
Ratio
Rated Power
Housing Material
Mainshaft
Main Bearings
L ubri cati on
Ductile Cast Iron
Forged Steel
Tapered Roller
Forced Mechanical Pump
Multi-element - Course/FineFiltration
Cooling Radiator
Generators
Type
Number of Units
Synchronous Permanent Magnet
Operational Speed Range
Rated Power
Voltage
700 - 1 120 rpm
656 kWat 1120 rpm
000 - 1 350 VDC
IP54
Liquid Cooled
Enclosure
Insulation Class
Cooling
Parking Brake
Type
Location
Dual Disk w/ Hydraulic Calipers
Gearbox Intermediate Stage
10.Machine Base
Material Ductile Cast Iron
11.Yaw System
Type Multiple, Electro-Mechanical Drives
Schwendiman Wind Power Project
12.
13.
Bearing
Drive
Motor
Number of Drives
Brake
Tower
Type
Material
Sections
Power Converter
Type
Controller
Rated Power
Location
Power Factor
14.Controller
Voltage
Frequency
Computer
Configuration
Connectors
Operator Interface
SCAD A
15.Environmental Application Limits
Survival Wind Velocity
Operational Ambient Temperature
Internal Gear - Ball Bearing
Planetary Gearmotor
AC Induction
Active Hydraulic - Disk
Partial Conical- Tubular
Steel Plate
PWM 4 module IGBT Rectifier/Converter
DSP
2525 kW
Within Tower Base
Unity
3 X 690 VAC
3 X480VAC
3 X 240 VAC
1 X 120 VAC
47 - 63 Hz
Embedded Power PC
Embedded Single Board System with
Palm Top or Laptop PC compatible
Standard Fiber Optic or Copper Serial Interface\
According to IEC la, IIa, and IIIa
200 C to +400 C
Schwendiman Wind Power Project
16.
17.
Operational Ambient Temperature
Survival Temperature
Grid Compatibility
Frequency - Continuous
Line Voltage - Continuous
Line Voltage - 5 see
Line Voltage - 500 ms
Line Fault Ride-thru Capability
Line Phase Imbalance - Continuous
Line Phase Imbalance - Cut-
Line Phase Imbalance - 5 see
Line Phase Imbalance - 5 sec
Power Quality
Lightning Protection
Blade
Nacelle
Electrical Systems
18.Noise Performance
SPL at 8 m/s
19.Maintenance Interval
Post-Commissioning
Periodic
20.Weights
Tower Assembly
Rotor Assembly
Nacelle Assembly
400 C to +400 C (Available Option)
400 C to +500 C
50 Hz or 60 Hz:!: 3 Hz
690 V AC:!: 100/0
690 V AC :!: 20%
690 V AC :!: 300/0
90% of Nominal Line for 150 ms
:!: 5% at Rated Power
:!: 10%
:!: 10% at Rated Power
:!: 20 % at Cut-
IEEE 519 Compliant
Tip Receptor - Internal Down Conductor
Air Termination - Full Shielded (Faraday Cage)
IEC 61400-24 Level III
104 db (A) - According to IEC 61400-
Once at 500 Hours
Every 12 Months
452 000 Ibs.
117 000 lbs.
158 000 lbs.
EXHIB IT B
POINT OF DELIVERY / PARTIES' INTERCONNECTION FACILITIES
The Schwendiman Wind Power Project is located approximately 11 miles northeast of Idaho
Falls Idaho. The project consists of several wind turbine generators, connected to a 14.4 kV
distribution system. Each generator is connected to the distribution circuit via a padmount
transformer at the base of each tower. A single, 3-phase, 69/14.4 kV, 15/20/25 MV A
transformer is used to step up the voltage of the project to 69 kV. A 3.6 mile, 4/0 ACSR
Penguin" 69 kV conductor transmission line will connect the project to the PacifiCorp 31.4
mile, Sugar Mill/Goshen - Rigby 69 kV line. The Point of Interconnection will be located
about 3 miles south of the Ucon substation tap and three miles north of the Sandcreek
substation tap. Schwendiman will own the 3.6 mile, 69 kV line to the Point of
Interconnection.
Bi-directional revenue metering will be installed at the wind plant end of the 69 kV line. The
metering will use CTs that will be capable of accurately measuring the wide range ofbi-
directional power flows from max generation to no generation. The meter readings will be
adjusted for losses back to the Point of Interconnection.
The following map shows a general turbine array Layout with the Substation location at the
Northeast Comer of Section 3 near the end of the existing site access road indicated in red.
The metering point shall be at the substation. The site will be adjusted to accommodate seven
turbines under the latest configuration.
431000mE.WGS84 Zone 12T "32COOmE.
............................
431CJJOmE. WGS84 Zone 12T 432000mE.
r: Mop
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Schwendiman Wind Power Project
EXHIBIT C
REQUIRED FACILITY DOCUMENTS
Qualifying Facility Number from FERC: QF04-60-001
The following Documents are Required to complete this project:
Easements:
Wind Farm Easement Document from Property Owner
Permits:
Conditional Use Permit from Bonneville County for Commercial Wind Farm
Bonneville County Building Permits for Foundations
State Electrical Permits for Turbines and Substation
Schwendiman Wind Power Project
EXHIB IT D
ENERGY DELIVERY SCHEDULES
Month Scheduled Monthly Energy (kWh)
January 071 166
February 206 283
March 6,404 729
April 156 171
May 995 378
June 670 214
July 563 729
August 280 759
September 983 783
October 445 831
November 513 262
December 591 398
Total 882 702
Scheduled Maintenance - Seller will provide a suggested maintenance schedule annually not to
exceed 150 hours per turbine per year
D- 1
Schwendiman Wind Power Project
EXHIBIT E
START-UP TESTING
Required factory testing includes such checks and tests necessary to determine that the
equipment systems and subsystems have been properly manufactured and installed, function
properly, and are in a condition to permit safe and efficient start-up of the Facility, which may
include but are not limited to:
Test of mechanical and electrical equipment;
Calibration of all monitoring instruments;
Operating tests of all valves, operators, motor starters and motor;
Alarms, signals, and fail-safe or system shutdown control tests;
Insulation resistance Point-to-point continuity tests;
Bench tests of all protective devices; and
Tests required by manufacturer of equipment
Required start-up test are those checks and tests necessary to determine that all features
and equipment, systems, and subsystems have been properly designed installed and adjusted
function properly, and are capable of operating simultaneously in such condition that the
Facility is capable of continuous delivery into PacifiCorp s electrical system, which may
include but are not limited to:1. Turbine/generator mechanical runs and functionalityand bearing temperature
measurements; ;2. Running tests to establish tolerances and inspections for final adjustment of
System operation tests;3. Brake tests;4. Energization of transformers;5. Synchronizing tests (manual and auto);6. Excitation and voltage regulation operation tests;Stator windings dielectric test;7. Auto stop/start sequence;8. Load rejection tests in incremental stages from 5 , 25 , 50, 75 and 100 percent load;
Completion of all state and federal environmental testing requirements.9. Tests required by manufacturer of equipment;
The following Wind Turbine Generator Installation Check Lists are required documents to be
signed off by Manufacturer or Subcontract Category Commissioning Personnel as part of the
Commissioning and startup testing:
Turbine Installation
Foundation Inspection
Controller Assembly
E- 1
Schwendiman Wind Power Project
Power Cables
Cable Installation Check Lists including:
Top Deck / Yaw Deck
Tower Top Section / Saddle
Mid Section Cables or buss bars
Base Section / Controller
Tower Base Section
T ower Lights and Outlets
Tower Mid Section
Tower Top Section
Nacelle
Rotor
E- 2
Schwendiman Wind Power Project
EXHIBIT F-
WIND SPEED DATA SUMMARIES
The following is excerpted from the initial meteorologist report for the project:
The on-site met tower is 40 m tall, and was installed the end of October 2001. Its latitude (WGS84 reference datum)
is 430 32.336', longitude 1110 50.850', and elevation 5689 ft. This tower sits atop a knoll. There are
anemometers at the 20-m, 30-m and 40-m levels, with the 40-m level being a stub mast. There are data through
September 2003. We have also included data from the Twin Falls airport as a provisional reference anemometer.
The correlation coefficient is not that great (0.47 for daily winds, 0.77 for montWy winds), but it does help a little to
place the two years of on-site data in a greater climatological context.
For the 23-month period, the average wind speed at the 20-m and 30-m levels of the Schwendiman tower were 16.43
and 16.95 mph, respectively. The 40-m level data appears to have been compromised after a few months, as it
typically runs less than the 30-m level-unlikely to be real. Therefore, we have completely ignored the 40-m data in
our analyses below.
Monthly Mean Wind Speeds (mph)
Schwendiman Tower, Idaho
NREL Calibration Constants
Mostly
Twin Invalid
Month Year Falls 20-m 30-m 40-m
Nov 2001 10.17.18.18.
Dec 2001 10.13.14.4 14.
Jan 2002 10.15.15.15.
Feb 2002 10.4 14.14.15.
Mar 2002 12.20.20.20.
Apr 2002 12.20.21.21.
May 2002 12.19.20.20.
Jun 2002 10.17.17.17.4
Jul 2002 10.17.4 17.18.
Aug 2002 10.13.13.4 13.4
Sep 2002 14.4 14.14.
Oct 2002 13.14.13.
Nov 2002 12.4 12.4 12.
Dec 2002 10.15.4 16.16.
Jan 2003 13.14.14.
Feb 2003 11.16.17.17.
Mar 2003 13.23.24.24.
Apr 2003 11.17.18.18.
May 2003 17.2 18.17.
Jun 2003 11.16.17.16.
Jul 2003 15.15.14.
Aug 2003 16.17.16.
Sep 2003 11.15.4 15.15.
Overall 10.16.43 16.
Data Recovery Key: black = 90-100%; green = 75-90%; blue = 50-75%;
orange = 25-50%; purple = 10-25%; "" = 0-10%. All values represent the
estimate for the full month when data recovery is less than 100%.
F- 1
EXHIBIT F-
ENGINEER'S CERTIFICATION
(1) THAT THE FACILITY WILL GENERATE AT LEAST 54 882 702 KWH PER YEAR
IN EACH FULL CALENDAR YEAR OF THIS AGREEMENT;
The following table shows the data analysis summary for the full year of repaired data set
from the 30m anemometer at the site. This data set is from November 8 , 2001 through
November 7 2002. The data was repaired using 30m anemometer data from the nearby Black
Canyon anemometer or other anemometers in the region where holes and icing existed to
create a complete year of data for best analysis. The data indicates a gross capacity factor of
40% when scaled to 80m with power curves from the manufacturers. An expected net
capacity factor of 35.8% results when consideration of the following losses are taken into
consideration: array losses between turbines and across the ridgetop as well as individual
turbine performance due to micro siting arrangement; distribution losses from the turbine
generators to the individual transformers and from the transformers to the substation at the
site; substation losses through the high voltage transformers; misc. efficiencies through the
overall system to the point of delivery to the utility. Thus, the expected annual delivery based
on this actual data set would be a net 54 882 702 kwh to the utility. Actual delivery over time
will vary from this number according to the natural wind resource variations in any given
year.
Days in File
Hours in File
Total Days in Period:
Average Wind Speed (mph)
Average Wind Direction
Maximum Wind Speed (mph)
Maximum Wind Speed Time
Minimum Wind Speed (mph)
Minimum Wind Speed Time
Total # of Data Points
# of Data Points with 0 mph Average Windspeed
% of data at 0 mph
Power Curve Used for Calculations
Turbine Rating (kW)
Factor from Data at Anemometer Ht.
. .
TI.Jrblhes
D -
359.
8623.
365
17.
182.
70.
4/23/2002
2:50
8/1/2002
9:30
52560
819
56%
CLIPPER C93 1.02 Alt
2500
35%
Schwendiman Wind Power Project
Wind Shear Estimate
Calculated Air Density Rating (kg/m"3)
Substation , Line Losses & Array Losses
Estimated ACTUAL TURBINE ARRAY
Energy Output kWh
Estimated ACTUAL NET CAPACITY
FACTOR of Arra
(2) THAT THE FACILITY, UNDER AVERAGE DESIGN CONDITIONS , LIKELY WILL
GENERATE NO MORE THAN 10 aMW IN ANY CALENDAR MONTH.
The following table shows the results of a detailed analysis of the monthly data from the
project site. This analysis calculates the expected generation for each particular month and
calculates the resulting net capacity factor as well as the average MW capacity of the project
per month (aMW). The results show the average net capacity factor on an annual basis to be
35.8% and the average MW per month factor of 6.26 MW which differs only from the
analysis of the entire year data set by a mathematical rounding error. This confirms that the
monthly data sets were accurately taken from the total annual data set without errors since this
represents 52 560 data points as indicated in the table above. The results show that October
February, and December have the lowest average monthly MW values of 4., 4., and 4.
aMW respectively. The results show that March and April have the highest average monthly
MW values of8.61 and 8.55 aMW.
Thus, under average design conditions with existing data, this project will likely generate no
more than 10 aMW in any calendar month.
F- 2
I&J UU.L/ UU.L
Schwendiman Wind Power Project
January
February
March
April
May
June
July
Augu6t
September
October
November
This engineering certification has been prepared by Idaho Professional Engineer Brian D.
Jackson, PE. 7800 Alfalfa Lane. Melba. Idaho 83641 and is based on a detailed analysis of the
site data and intended generation equipment.
pe;-~9111
S-
A-r f-
F- 3