20071119Third Amended Agreement.pdf

~~I~OUNTAIN E
November 19,2007
ZOU1 NOV 19 10= 08
¡DM-iO PUBLIC _ .
ûTH.:tIES COMMISSlù, .
201 South Main, Suite 2300
Salt Lake City, Utah 84111
VL OVERNIGHT DELIVERY
Idaho Public Utilties Commssion
472 West Washington
Boise,ID 83702-5983
Attention:Jean D. Jewell
Commssion Secreta
Re:Joint Motion for Approval of Thrd Amended Agreement
Case No. PAC-E-05-9
Rocky Mountan Power, a division of PacifiCorp and Schwendiman Wind LLC hereby submit
for filing an original and seven (7) copies of their Joint Motion for Approval of Thrd Amended
Agreement. Please note that the documents included in ths filing are exact duplicates of the
origials.
Service of pleadings, exhbits, orders and other documents relating to this proceeding should be
served on the followig:
Brian Dickman
Manager, Idaho Regulatory Affairs
Rocky Mountain Power
One Uta Center, Suite 2300
201 South Mai
Salt Lake City, UT 84111
brian.dickmani$pacificorp.com
Jorda A. Whte
Senior Counsel
Rocky Mountan Power
One Uta Center, Suite 2300
201 South Mai
Salt Lake City, UT 84111
Jordan. white(ipacificorp.com
It is respectfuly requested that all formal correspondence and Sta requests regarding ths
material be addressed to:
Bye-mail (preferred):dataequest~pacificorp.com
By reguar mail:Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, Oregon, 97232
By fax:[phone]
Idaho Public Utilities Commssion
November 19, 2007
Page 2
Sincerely,
)# il ~/ßP
Jeffey K. Larsen
Vice President, Reguation
Enclosures
cc: Service List
CERTIFICATE OF SERVICE
I hereby certify that on this 19th day of November 2007 I caused to be served, via U.S.
Mail, a tre and correct copy of the foregoing Joint Motion for Approval of Third Amended
Agreement in Case No. P AC-E-05-09 to the following parties as shown:
Jean Jewell
Commission Secretary
Idaho Public Utilities Commission
472 West Washington
Boise, Idaho 83702
j jewell (fuc. state.id. us
Scott Woodbur
Deputy Attorney General
Idaho Public Utilties Commission
472 West Washington
Boise, ID 83702
scott. woodburyuc.idaho.gov
Brian D. Jackson, P.E.
7800 Alfalfa Lane
Melba, ID 83641
brian(iclever-ideas.com
Dean J. Miler, Esq.
McDevitt & Miler LLP
420 W. Banock
Boise, ID 83702
joe(imcdevitt -miler .com
Jordan A. White
Senior Counsel
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, UT 84111
jordan. white(facificorp.com
Bruce Griswold
Manager Origination
PacifiCorp
825 NE Multnomah Ste 600
Portland, OR 97232
bruce. grswold(facificorp. com
Barton Kline
Idaho Power Company
1221 W. Idaho Street
Boise,ID 83702
bkline(iidahopower.com
ebbie DePetris
Supervisor, Regulatory Administration
Jordan A.Whte
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, Uta 841 1 1
Tel: [phone]
Fax: [phone]
jordan. whiterqpacificom.com
Attorney for Rocky Mountain Power
19 ArUJ: f 7
Dea J. Miler (ISB # 1968)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise, 10 83702
Tel: [phone]
Fax: [phone]
joerqmcdevitt-miler.com
Attorneys for Schwendiman Wind LLC
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 ENERGY )BETWEEN PACIFICORP AND )SCHWENDIMAN WIND LLC )
)
CASE NO. P AC-E-05-09
JOINT MOTION FOR
APPROVAL OF THIR
AMENDED AGREEMENT
COMES NOW, Rocky Mountain Power, a division ofPacifiCorp ("PacifiCorp" or the
"Company") and Schwendiman Wind LLC ("Schwendiman Wind" or the "Seller"), hereinafer
referred to as the "Paries" and in accordance with RP 56 hereby move the Idaho Public Utilities
Commission (the "Commission") for an Order approving a Third Amended Power Purchase
Agreement ("Third Amended Agreement") as embodied in Attachment 1 to this Joint Motion.
This Joint Motion is based on the following:
I.
BACKGROUND AND PROCEDURA HISTORY
As set fort in the March 31, 2006 Agreement, Schwendiman Wind proposes to design,
constrct, install, own, operate and maintain a wind generating facilty with a nameplate capacity
of twenty (20) MW to be located in Bonnevile County, Idaho. As previously described in the
Application and Exhbits fied August 15,2005, the Facility has been self-certified with FERC as
a Qualified Facility ("QF") and is to be interconnected with PacifiCorp on the Sugar
Mil/Goshen-Rigby 69 kV line 11 miles norteast of Idaho Falls, Idaho. Schwendiman Wind
would sell and PacifiCorp would purchase approximately 7.15 average MW ("aMW") of electrc
energy generated by the Schwendiman Wind Facility ("Facility"), a qualified small power
production facility under the Public Utilty Regulatory Policies Act of 1 978 ("pURP A").
To that end, PacifiCorp and Schwendiman Wind entered into a 20-year Power Purchase
Agreement on July 19, 2005 (the "Original Agreement") and submitted it to the Commission for
approval in this docket on Augut 15 2005. Pursuant to Order Nos. 29880 and 2992 i, the Paries
submitted an amended Agreement ("March 31, 2006 Agreement") which was subsequently
approved by the Commission on March 31, 2006, in Order No. 30000.
The Paries executed a Second Amended Power Purchase Agreement C'Second Amended
Agreement") on September 07, 2007 which was submitted to the Commission on September 21,
2007. Prior to the Commission's consideration of the paries' Joint Motion for Approval of the
Second Amended Agreement, it became necessar to make minor changes to the Second
Amended Agreement. The paries therefore, requested the Commission to refrain from review of
the Second Amended Agreement in favor of consideration of the most recent version of the
March 31, 2006 Agreement - the attached Thrd Amended Agreement.
JOINT MOTION FOR APPROVAL 2
II.
CHANGES TO THE MARCH 31, 2006 AGREEMENT
As detailed in Attachment 1 to this Joint Motion, proposed changes to the March 31,
2006 Agreement include the following to:
a) Replace Exhibit A, Exhibit B, Exhibit 0, and Exhbit F-2 with new exhibits
reflecting Schwendiman Wind's substitution of Nordic wind turbines for Clipper
wind turbines;
b) Update the Recitals to reflect the Nordic wind turbine output;
c) Move forward in time the Scheduled Commercial Operations Oate and other
intermediate milestones in Section 2;
d) Stipulate (in Section 2.3) to Schwendiman Wind's liability for Delay Liquidated
Oamages, from August 1,2007, until the Commercial Operation Oate;
e) Update the capacity factor table in Section 4.2.1 to reflect the new turbines; and
f) Add a new Section 22 containing security provisions applicable to Schwendiman
Wind.
The Third Amended Agreement also adds pricing for year 2028 in Section 5 and
updates obsolete contract information in Section 2 i. Otherwse, no substantive changes
to the March 31, 2006 Agreement are contemplated.
(intentionally blank)
JOINT MOTION FOR APPROVAL 3
III.
NOW, THEREFORE, the Paries respectfully request that the Commission proceed
pursuant to a modified procedure pursuant to Rules 201 through 204 of the Commission's Rules
of Procedure and issue its Order:
i) Approving the Third Amended Agreement between PacifiCorp and Schwendiman
Wind without change or condition; and
2) Reaffrmng that prices to be paid for energy and capacity are just and reasonable,
in the public interest, and that the cost incured by PacifiCorp for purchasing
capacity and energy from Schwendiman Wind are legitimate expenses, all of
which the Commission wil 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 /br~ay of November 2007.
ROCKY MOUNTAIN POWER McOEVIIT & MILLER LLP
JO~
Attorney for Rocky Mountain Power
~ \1l--
Oean J. Miler
Attorneys for Schwendiman Wind LLC
JOINT MOTION FOR APPROVAL 4
ATTACHMENT 1
~~Af.l,foloÇQ.~p ENERGY 825 NE Multnomah. Suite 600
Portland, Oregon 97232
October 16, 2007
Schwendiman Wind LLC
9633 East Highway 33
Newdale, ID 83436
Attn: Tyler Schwendiman
Re: SECOND AMENDMENT TO POWER PURCHASE AGREEMENT
Oear Mr. Schwendiman,
This letter amends the (5;econd) Amended Power Purchase Agreement Between Schwendiman
Wind LLC and PacifCorp, which was most recently amended on September 7,2007. PacifiCorp
and Schwendiman Wind LLC (Schwendiman) desire to: (1) update the Recitals and Section 7 to
reflect the revised Nordic wind turbine output; (2) postpone the Scheduled Commercial
Operations Date in Section 2; (3) update the Capacity Factor Schedule in Section 4.2.1; (4)
update Default Security amount and Scheduled Commercial Operation Date in Section 22; and
(5) replace Exhibit D and Exhibit F-2 with new exhibits reflecting Schwendiman's updated
Engineer's Certification. This Agreement otherwise makes no substantive changes to the
Agreement.
Upon the Idaho Public Utilties Commission's unqualified approval, the attached (THIRD)
Amended Power Purchase Agreement Between Schwendiman Wind LLC and PacifCorp
supercedes the' September 7, 2007 Agreement.
(Remainder of page is intentionally left blank)
Please indicate your approval of the foregoing amendment by signing below, initialing next to
the changes in the attached amended Agreement, and returning a copy of both to the above
address. Thank you for your assistance in this matter.
SCHWENDIMAN WIND: .
íf1e, Sx~.æ.Jnu~'-
~me/
/Ji5l -e/Title
1/!f2~107Date r I
Attachment: (Third) Amended Power Purchase Agreement Between Schwendiman Wind LLC
and PacifìCorp
Lg-G .AiVENDED POWE.R PURCHASE .\.GRFEiVIEXr(Third) BI::TWELN ,,2:; *~~..3 ::**
Schwcndiman Wind U.C
AND
I'ACTFICORP
¡IDAHO QUALIFYING FACILJTY -~IOaMW/Month or Icssl
Original Agreement executed July 19, 2005
First Amended J";,"l, 2;, 200.6
Second Amended . C. l' , 2007
Third Amended 10 L l!. ----, 2007
,
,,2:: ~-!
d'~=t
*Changes noted ",,2::" in the max-gin were agreed to by letter agreement dated
f:2.5j~.~-7__________________, 2007 between PacifiCorp and Schwendiman liJind IJLC
( "Second Amendment") ,
**Changes noted "..3::" in
1D Jì Iv
("Third (Amendment") .
the margin were agreed to by letter agreement dated
i 2007 between PacifiCorp and Schwendiman Wind LLC
S(:h\\':~:IHj¡¡11al1. \\' )!(l ¡;¡:'i\.\ ,:1' ¡)ri';\;,X'i
SCC'¡CII1 ¡: Deiii:iij,."),,
S'':C.l(,P .~. l:.,:~l1~. (':):r,l"l:i' ri;¡\ ()r~~:r;Hì(:\r,; : ");i:* **Ii
SCCII)11 .". R~ï)IT,_.i:LlII,;:I" :u)d \V;m:lIilll,"'.:,
S,.cio,i 4: Lkll"c'r:; (if Fi:c!!y ;ind (';'ip;l(:ii.:¡ii **
Sc:c\ion .~: l'\IrCh;l~c: Prjcc~ ...i 2*
Senion (i: Operation ;ind (',mimI .. lei
Seciion 7: Motive Fon:c'..... l(,* * *
Section 8: Metering..,...J()
Seclion (): Billings, Computations and Payments.
Section 10: Defaults mid Remedies.
17
17
Section II: Inc!eliiiilicalioIL...
Section 12: Liabilir.y and InslIninec.
I ()
I'J
Section 13: Foree :-vlaJcurc ,."................."."...............
Section 14: Several Obligations"".."."........"....
...2 i
.......................................'. '1
Section 15: Choice of Law..".."....."......""........ . ~ . . . .. . . . . . . . . . .. . . . .. . . . . . . . . . '. .. ....22
Section 16: Partial Invalidity .......".".........................................".."......................... ..".23
Section 17: Waiver.".."....."..........""....................."......... ......................................"......23
Section 18: Governmental Junsdiction and Authori7.ations "....".."...."..........".....""",,. 23
Section 10: Successors and Asstgns "".."........"..".......... "."...................................."..". 23
Section 20: Entire Agreement................................ ...... ............. ..................... .................. 23
Section 2 J : Notices ...... .... . ............................. ...... ........... ....................... ............. ... ...... 24 *
Section 22: Security....................................... 25***
II
.1
*These Sections contain changes aqreed to in the Second Amendment. ,,:2.., (.-l,; "-r-::~
--These Sections contain changes agreed to in the Third Amendment. ,3, ~ ~
PO\VFR PI;HCH\SV\(;RFE\JF",j
1..1...' , . FI ').'i,.¡ .1.'1..1"11''-..'1' I. t I.. I')..w-. I î"'AI'I'Y\: 1:- ¡'()\\L.!~ J ¡,i 1:\:- . .\(" .,\ i..,!, .~ntC'rL:,- in "1'1h l. ¡ ',1'. ,'i :\)n~,,_ -'1, 21i1)f\.
I" hct\\,.:t'11 Sc)mClldll1:ìi \V111d 1.1.('. an Idahl! 1 imi tcd ¡¡ahili!\ comp~!n:, iJlê "ScIlÚ" ¡ ,ind
1';lcIIICi.rp.. ;in ()Lè~"on ,.,'liv,)rê:u()'l ac:lll:, ill ih rC~liLtkd d~c¡ric utility cap;li':lly
("PacilïCorp"l. Seikr :1i\iI D,IC¡lìCnrp are l,_'fCIT(~d.o e()lkc\¡v~ly a~ :.ie "Parties" "'HI
indi\idi.:.iilv ;,,; ,i "P,irty"
REClrAI.S
.'\. SelieI' inknds 11\ iOllSlrul'I, 1\\\11, nperaie and I1Ii1iiitaiil it wind power gc)),:raii,11 LlCilitv
Ill! the generation 01' ekciric power loc;akcl in Bonneville C'Olllty, (daho with an cxpecie:i
Faciliiy ('apacity Ri1ing (if 20,OOO-kilowilt (kW) ("Facility"); and
B. Sclltr intends to operate the Facility as a Oualifying Facility; as ;;ucli (erni iS detined in
ScC'ion i .J7 below.
C Seller C' in des. thai the average annual Net Output to be delivered by the Facility to L~' Lfi'
Paci l¡Cor¡) is ~f;1h~-;) 6 kilowatt-hours (kWh) pursuant tn.. the monthly C:apaeity Facto(",. -,-_..~
schedules in Exhi'hit 0 hereto. which amount of energy PacilïCorp will include in its resourcc'h.- .~
planning; and
D. Seller shall sell and PacifiCorp shall purchase the Net Output rì'om the Facility in
accordance with the terms and conditions of this Agreement.
E.. This Agreement is a "New QF Contract" under the Paci fiCorp Inter-Jurisdictional Cost
Allocation Revised Protocol.
F. On the 19th day of July, 2005, the Parties executed a Power Purchase Agreement (the
"Original Agreement") and thereafter submitted the Original Agreement to the Idaho Public
Utilities Commission for approval in Case No. PAC-E-05-09.
G. On October 4, 2005 the Commission issued Order No. 29880 disapproving the Original
Agreement.
H. The Parties havc in good faith negotiated this Amended Power Purchase Agreement with
a view toward meeting the Commission's objections expressed in Order No. 29880.
NOW, TI--IEREFORE, the Parties mutually agree as follows:
SECTION 1: DKFINlfIONS
When used in this Agreement, the foiiowing terms shaH have the following meanings:
1.1 "Adjusted Scheduled Monthly Capacity Factor" shaH have the meaning set
forth in Section 4.3.
I .2 '"As-built Supplement" shall be a supplement to Exhibit A, provided by SeHer
following cDmpletion of construction of the Facility, describing the Facility as actually built.
''';i:h\\'t'l~t'iiìn:i;) iiid 1)(\\,,:' ,,!",l)'/'i¡:.::c:
i.:; "Billing Periodll nl~'_::H-;~ ihe tlinc pVl!t)d hCt",\,;~o(';'i lì~tciC;('tJlPIS í~~;¡(¡¡n~_~, ¡'\foii.. \1()\\~'r
pm,.li:!:,',. iiid::r :il ¡he I.:icijit'i .lId '-',r :hh \!.r,,:cll1'~:l1t ;,kill (iii~(id(; with eaknd"r 11,,¡Hhs. .
,.l "Capacity hidor" !i1l':IiS iì)" 1m':, givcn p...rii\d (Ie iime. thc '!ei Oll\t1111 ,.hJl\Crcd
,ii\.,..kd lli, r:ic;\il'i Cap:¡city ¡~:!li!i=i dl\ïdcd hy ioU i hours in !he ~'ivcn period uliiiilt
.' "Capacity F:lt'or SelH'(ÌUÌ\" .;11:111 Iny:; ihi., a',c:min;i ,,,:1 íììrth in Sc'ciiol1 4.1 01
. hi e;\ ~1.CCnL:,ni
I.!) "Commercial Operation" means ¡hc l'ICiliiy IS lully ilixTaÙ,)nal .H1d I'('iiahh:. III
n01 lcss ¡han ninety percenl (l)I)0';,¡ or the: èxpcctt:d Facility Capacity Ratin~, and iiicrcollíl:ctcd
and synchronized with ihe Transmission Provider's Systcin III ordcr lo mcet ¡hc requirements
for Commercial Operation, all of the lè)llowing events shall have occurred:
1.6.1 I)aei fiCorp shall have received a certi licate addrcssed to Pac! tìCorp
lrom a Licensed Profcssionii\ Engineer (al stating thc Faciliiy Capacity Raling of ¡he
hiciliiy ;it the anticip,ìtcd time of Commercial Operation and ¡b:i stating thai the Facility
iS able to generate Glcctric power reliably in amounts n~quired by this Agrccment and ¡;i
;H:cordance with all oiher ienns and conditions oftliis Agreement;
i .6.2 Start-I)p Testing oftl1e Facility shall have been completed;
1.(d PacifiCorp shall have received a certificate addressed to PaciliCorp
from a Licensed Professional Engineer, an aHomey in good-standing in Idaho, or a letter
Iì-om 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
Af,'Teement; and
1.6.4 PacifiCorp shall have received a certificate addressed to PacitiCorp
from a Licensed Professional Engineer, or an attorney in good standing in Idaho, stating
that Seller has obtained all Rcquircd Facility Documents and, if requested by PacìfiCorp
in writing, Seller shall have provided copies of any or all such requested Required
Facility Documents.
Seller shall provide notice to PacifiCorp when Scller believes that the Facility has achieved
Commercial Operation. PacitiCorp shall have ten (10) clays altcr receipt of such notice either to
confinn to Seller that all of the conditions to Commercial Operation have been satisfied or have
occurred, or to statc with speci ficity those conditions that PacifiCorp reasonably believes have
not been satisfied or have not occurred. If, within such ten (10) day peiiod, PacifiCorp does not
respond or notifies Seller confimiing that the Facility has achieved Commercial Operation, thc
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
PacifíCorp's notice to the mutual satisfaction afbath Parties, and Commercial Operation shall he
deemed to occur on the date or such satisfaction, as specified in a notice tì'om PacitìCorp to
Seller. i l Commercial Operation is achieved at less than one hundred percent (1 OO°IiI) of lhe
I
2
')i:iì\.\:.'¡i(¡j~i.i;ì~.i \\- lll(! :)l.ì\~,:¡'-:l
,:'.p~'Ck.i 1.;Jlïili::' (.;\p:IC';IV ¡(¡:Lng, Sc!kr,Ii,i\i Xii\id,: F',ICil:I.,lrp ,:\1 ':.\P,~C\(\I.i:iiè' ¡;,I" .,clilè\ i:1:'
iik '.\\1"Clc:d I';iuliiy (':\p:iciiy i~atiiii~. :\I,d the ¡:iei lii;"',: i. ',i¡'Lìl'IIY 1~.;Il1!=, on thai dale shall be :he:
,:¡¡;'l 1.;.,':1;1., C::P':Cliy R::tin:c ïJ1¡k:r ili:S\",r,.:"ii~,:rii. In 11,) ....'Cl',il¡ III ¡ii:iii,'\.iii~ i.":
,:\pcciccI :'.,icility (',ip:iciiy R:iiin:2. hcvo:id ii;: c.'(ìi~¡I\¡(,rci"i (lpu.;!l('.!1 ILi\( P0';PITlë :\'c.
b.im:liinn D:ile spcciiictÌ in Scction 2 !
:. . TonimercÌ;il Operation Dalf" 1ì"~~IJ'S the ,Lilt the F::ciliiy :ir,;1 ,.ichic:',cs
(")l1ill".Tcui ()IWi.,'l;()n.
.~: "Commission" rricans ihe Id:i1ìO Pllhlic Uiiiiii,,:s ( 1)1111I1iss\011
,) "Conforming Energy" means all 'let F.J1~I'gy cixccpi Non..Conlòrming Energy
and fii;idvcrteni Energy.
i. i 0 "Contract Price" means the applicable price for energy and capacity, specdied in
Sec-iion 5. i.
I. I i "Contr,iet Y car" means :i twelve (i 2.) month period conimcncing al OO:()O hours
Mountain Prevailing Time ("MPT") on .Jannary 1 and ending on 24:00 hours vlPT nn
December ~ i; provided, 1/()1vcver, that the Ii r5t Contract Year shall commence on the
Commercial Operation Date and end on thc next succeeding December .3 i, and the last Contract
Year shall end on the lasi day of the Term.
i. i 2. "Delay Liquidated Damages", "Delay Period", "Delay Price" and "Delay
Volume" shall have the meanings set forth in Section 2.3 of this Agreement;
1.13 "Effective Date" shall have the meaning set tònh in Section 2. I of this
Agreement.
i. i 4 "Expiration Date" shall have the meaning sct fOi1h Il Section 2.1 of this
Agreement.
I. I 5 "Facility" means Seller's Schwendiman Wind Power Project, including the
Seller's Interconnection Facilities, as described in the Recitals, Exhibit A, and Ii:xhibit B.
i .16 "Facility Capacity Rating" means the sum of the Nameplate Capacity Ratings for
all generators comprising the Facility,
1. i 7 "Force Majeure" lias the meaning set forth in Section 13.1.
i .18 "Generation Interconnection Agi'eement" means the generation interconnection
agreement to be entered into separately between Sellcr 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.
1.19 "Inadvertent Encrgy" means: (l) energy delivered in excess of the Maximum
Monthly Piirdmse Obligation; and (2) energy delivered at a rate exceeding the Maximum
Facility Delivery Rate.
,.'
SC¡'i\.\:,;~lldii'll~¡i: \\/;:)11 p.'i',\'(:io ¡)ï\_)\~:(:i
I 'Ii '.Index Price" shad in..:iii .he n¡'. I. llllk.\'c'ghkd J,...ra\\( of die da'lV iHI-
PÇ:I~ ;1I1d cd (.t)èak r leI'.\' bni.' \,1 id.(iil¡¡mhi:i Il1ik\ (I )mviolil.S MidI' lndcx I prict:s~',r lir:m
e'llT~,\'~ ;lld 12) 'he \'.i:.i.!,lii.~d ;I'.',:r:igc 01 ¡he d:nlv o\1.pc:ik ;ind ,,¡ï-pc;;; DO\\ .1')11(:' P:iki \/erde
ind..x I Dul,l: .!,Ylt? l':dOl \ic'de index) pricts Ii)r iinn i'iicr~~y For Siind:iy :ind Nl':I~( holidavs, the
.:.\.1-1(1,11. Index F1rii;c,1i:ill hc :¡sul. i!likss \)Olwir'I1èS ",¡ shall publish a Fiin O:i-I\::ik aii:i Firrn
()!f-Pc:i~ Pi'ile: ¡i1l ;;lIcli d:i'.S r~ir \lliiC .:nl! ¡'ale. \j'.:rdc. in '.'. hich (....",n! such indices sh:i11 he
¡i¡ili/ed ¡()r such d:iy:;. If :h~' j)(~W Joiies r\i indc\ or :my repl:iccnient of ¡hili indc\ ceases ¡O bc
puhlislicd diirinco 'he' 'crT, oj' ¡his .\gn:Cllll'lli, ¡):ieif(Corp shall ;;deci as a rcplacem.:nt a
,1IhSl;lIi¡;t1ly \:qiii\:ik:il\ 'l1.k\ ¡h;ii. ,¡I'ld any' :ippr,ipii;ili ell' lìc".,"S',:ll)' .ldjuSl!lli.lilS. proVides the
iiiosi T:ison:ih k suhst ji Ilk i~lr ihe i iidc'\ i ii qiies! ion P:iclliC.orp' s ,;L:1cctiol\ shall be suhject !O
Selkr's cOl1sent, which Selkr sl1allno! ,inrcasonahly withhold, coiil!iii,)l iir dehy .
1.21 "Initial Year Capacity Faclur Schedule" shall have the meaning set lOlth 1m
ScetiC)Jl 4.2 i.
i .22 "Interconnection Facilities" means a\l the facilities and ancillary equipment used
to interconnect ¡he Facility (0 thi~ PacifiCoiv transmission system, including clcetric:al
transmission lines, upgrades, tranSf~)m1erS, and associated equipment, sunstations, relay arnd
switching equipment, and safety equipment.
1.23 "Licensed Professional Engineer" means a person acceptable to PacifìCorp in itts
reasonahle 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 llo
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 tbe
Facility, or of a inainif.'leturer or supplier of any equipment installed in the Facility. SuCh
Licensed Professional Engineer shall be licensed in an appropriate engineering discipline for th
required certification being made. The engagement and payment of a Licensed Profession:l
Engineer solely to provide the eerti fieations, evaluations and opinions required by this
Agreement shall not constitute a prohibited economic reiationship, association or nexus with tle
Seller, so long as such engineer has no other economic relationship, association or nexus with tl
Seller.
i .24 "Material Adverse Change" shall mean, with rcspect to the Sellcr, if the Seller
in the reasonable opinion of PacifiCorp, has experienced a inateiial adverse change in ability ~
fulfill its obligations under this Agreement.
i .25 "Maximum Facility Delivery Rate" means the maximum instantaneous rare
(kW) at which thc Facility is capable of cleliveting Net Output at the Point of Delivery, ¡a,,,
speei ned in Exhibit A, and in compliance with the Generation Interconnection Agreement.
i .26 "Maximum Monthly Purchase Obligation" means the maximum amount iof
energy PaeifiCorp is obligated to purchase under this Agreement in a calendar month, Rii
accordance with Commission Ordcr 29632, the MaximuinMonthly Purchase Obligation for a
given month, in kWh, shall equal 10,OOn k W multiplied by the total number of hours in th;at
month.
'f
~("1\\ \:n(I,ln~llì \\: :nd jii)'..."i,':,:
1 ~~"",: '.\lniivc F'urct Pian" :~;i~dl ;1;1',.:-; ¡ l'c ìlì'':;i1\¡ll~_ ~;i:l ¡nnh ¡Iì :-("1.11Cilì 7 iil 111¡~:
:\!,.!'l'l'ilICni
¡ ..!8 "'ameplatc C'apacity Rating" inc:aiis ;he il:1xiilUIII il¡SLilllancOlis ;('ncr,niii,"
capacity 1)1' ,my ql!:iliCyin~; sliliil power ')1' c,igl.,ii;:ri¡tion gcn,;r:uing ¡mit supplying ail ür in,n 1)1'
¡he: ::ncrgy sold by the Faciìity, sxpïcssèl m ¡v1 W. when OPl'L\tCJ consisi.IH \\ iih ¡he
l1Z1nulacmrcr's rCC0111lCliikd power 'ilLl¡)r and ,llh.:ra¡ing ¡xiraiiClcrs, ilS,d lònh in a noiicc
Cron! Sclki Ii'i P:lCiliCorp ,k!i\.ercd heCo¡.c iìii: c',--niriicrciai Opc:raiìon Dale .iiill, il .ippl:cibk
iipdai(;d III til( .\5 huili Sl!pp1ciicnt.
I.:;') "i\d Energy" iiCiins the cii,'rgy u\liipOllciit. II kWh, orNet OnipUL.
i .30 "Net Output" iicans all energy and (;apacity prodiici.:d by the ¡'acilily, less station
US(; Jild less tr;11slimmliion and transiiission losses and other adjustments. i r any. For purposes
oC calculating paynicni under this Agreement, Net Output oj" energy shall he the allHJunl of
energy !lowing through t he Point ol Ddivèry. less any station tise not provided by the Facility.
13 i "Non-Confonning Energy" means for any Billing Petiod: (I) ihat portion ol Nei
Energy delivered in excess of 1 i 0% of the Facility Capacity Raiing multiplied by lhe lotal hours
in the Billing Period and l1ulliplied by the Schedulcd Monthly Capacity Factor for that BillinQ
Period; or (2) all Net Energy in which Selkr';¡ Capacity Factor is less than 90'% of the Sclicdulc~i
Monthly Capacity Factor for that Billing Period; or (3) all Net Output produced by the Facility
prior to the Commercial Operations Date.
1.32 "PacifiCorp Transmission" means PacifiCorp, an Oregon corporation, acting in
its transmission function capacity.
1.33 "Point of Delivery" means the high side of the generation step-up transfonner(s)
located at the point of interconncction between the Facility and PacifiCorp's Iransl1ission
system, as specified in the Generation Interconnection Agreement and in Exhibit B.
1.34 "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. Ifa Citibank, N.A. prime rate is not available, the applicable Prime Rate shall
be the announced prime rate or reference rate tor commercial loans in effcct from time to time
quoted by a bank with $10 billion or more in assets in New York City, N.Y., 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.
I.Jó "Qualiying CUl.tailment" shall have the meaning set forth in Section 4.3.
5
'~:ci~\\('i1dirn~111 \\/iîì¡j ¡l!)\\.-:,:~' !.ir'),li.'c-1
,~: "QF" llk;;n~ "Qualifying Faeiliiy". ,is ¡h::! iL.ri\l ,~ dc:iinc:d in ¡hc: 'it.'","") tl" i'T R(.
:i.C~lil:iI;ulh (I'iidili,.d :11 i ..~ eiR I);iri 2')2) ill c~fl..:et i)!l iilt: d:ile :1rìhi~ .\~rcL'in(n\
¡,x ""Replaccmelli Period", ""Iet Repl:H:eniciii Power Cosh", "Replacement
Price" .ind --Replacement Volume" shall have :hè nlcClnlligs set !"onh iii ScciiClIl lilA pI' ihis
-\ \!!"\;cincii i:
1.ì'J "Required Facility Documents" ilC,HlS all matcrial
;iuihnn/;nions. and ClslcCl1lic.nls IllCc:;s;iry for C()ì1stnli.llOn. Upci,i¡ion, :lId
i";¡c¡Liv, :iichidin~ w;tholl liii;t:nion ihdsc sd forih in Exhihit C
i iccns.:s, pCnl1ilS.
11winknilncc ,'II' !he
I AO "Scheduled Commercial Operations Date" means 1he dah.' hy which Sdkr
promiscs to achieve Commercial Operation. as spcci fied in Section 2.2.6.
141 "Scheduled Maintenance Periods" means ihose times sc1ieduled by Seller with
advance notiee lo PacilïCorp as provided in Section 6.2 unless othi~rwisc mutually agreed.
i.42 "Scheduled Monthly Capacity Factor" means the C:apaciiy Factor during a
given calendar month, as specified by Seller in the Capacity Factor Schedule.
i.43 "Start-Up Testing" means the completion of required factory and stal1-Up tests as
set forth in Exhibit Ii: herelo.
1.44 "Suhsequent Capacity Factor Schedule" shall have the meaning set forth 11
Section 4.2.3.
1.45 "Tariff' means the PacifiCorp FERC Electric Tariff Fifth Revised Volume No. I i
Pro Forma Open Access Transmission Tarff, as revised from time to timc.
1.46 "Transmission Provider" meanS PacìfiCorp Transmission or a Successor
including any RTO. Seller acknowledges that PacifiCorp, acting in its merchant capaeit;
function as purchaser under this Agreement, has no responsibility for or control over PacifíCorp
Transmission or any successor Transmission Provider.
SECTION 2: TERM, COMMERCIAL OPERATION DATE
2. I 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 detennined that the prices to be paid for energy and
capacity are just and reasonable, in the public interest, and that the costs ineun-ed by PacifiCorp
for purchases of capacity and energy from Seller arc legitimate expenses, all of which the
Commission will allow PacifiCorp to recover in rates in Idaho in the event other jurisdictions
deny recovery ofthcir proportionate share of said expenses.
Unless earlier terminated as provided herein, the Agreement shall remain in cffect until the
twentieth (20th) anniversary of thc Commercial Operation Date ("Expil'ation l)ate")
6
'"~;.:¡'.'.\;~'1".i.!¡ì:1~:n \A/ll)ll !l(,.J\\';~'l ¡);'( li:_'(l.
, ) ; ink' :~ of 'he. ,'~~,:n(':, M l!iìS :\!lrc:cm~'nL .did S,-lIer', :lhi1:y !n met! ccr,ain
:.',.U,llìl\'I"!l:1h prior:o ¡he C"!1lu,:rcl,\; Opi..idlOn DM,: ,11lIÌ toiehievc ( "lrmlCrC¡:i1 ()per.iiiurh by
i,,_. ""L-.diikd (\,ini;icr,-;il i lp,,''':lil,)n I):lic ¡~ uiiic:d \\/ ;1.:n¡\n:ìi1l.
L2. i íl y De('emherl 1. 2001:', SCI kr '.Iw \I u,;c be,;t ctkins iO Ohldi 11 and
plYI"ide 10 f\iciliC"rp ;:npics 1)1(\11 ;2nv¡_~rnl\clìta! Dcrniil,;tnd :iuiìh)ri/;iiii"is iicc::~,;:;rv k,r
('i \lì :,t n ie! ioii n ,- i h::' Fiie i i ii '/
)) -, By Decemher -'1, 2006, Sdk: siiall iise: hi:';l dTor:s to pni\'idc 1.0
i'.\cifiC\irp :l ci)p:~ ul ,In i:xi.'c\llt:d (ii:IlCratlon liiicrcol1iicciiol\ :\!lrCCI1Cnl, whose kl'l1h
,1i:llIIK' consistent with the !(;1l1S o!-ihis .\\;r(;eni(.:111
. August 30, 20 q7 _, .... ~2 ~ ~.l_I~)
2.2 3 ByI)~mÐff-3L,-:W6, Sellcr sh:i 11 HSè--licst- ctIØi:l-S-tH- provide H)-
!':ici lìCorp written evii knee acceptable to Paci ti('olV ihat Seller has obtailKid
construcTion lìnancing lor the Facility (or alternatively permanent financing suhject only
10 constniction of the Facility and Seller's execution ofthc lender's lo~in documents).
Au~ust 30, 2007. .." ~2 ~ Si Lc2.2.4 By He:eember-l,---;M)()Ú-, Seller shall ttseheñl'-eHfl!-to provide to
Paci tìCorp written evidcncc acceptable to Paci lìCorp that Seller has obtained Une
contractual righl 10 take delivery of the type and quantity of wind iurbines spccilìed in
Exhibit A.in time to achieve the Scheduled Commercial Operation Date.
--'~-(d~:L--.~;./'
2.2.) Prior to Commercial Operation Date, Seller shall provide PacifiCol'
with an As-built Supplement acceptable to PacifìCorp. -' ~.
!!ay 1, 2008 '" .:2:: Cy~dl ¿/
2.2.6 B~~H:~Å£lî~7 ~Ö~?~- shall have achieved Commercial oper,! ..
("Scheduled Commel'cl~ peratlOn'late). .: 3:: --
2.2.7 Beginning July 1, 2006, Seller shall provide PacifiCorp a onc-pa
monthly update bye-mail on the progress of the milestones in this section 2.2.
2.3 Selle! 1lIiltl-efltse-ltF-te~e Commercial Operation O1befure ~e
&trerlu-icd Coiiiiiietcial Operation Date. -tomfforça~w:fier the Schedulei
-Gffal Operation Date, Seller shall be liable to pay PacifiCorp delay damages for tme
number of days ("Delay Period") the Commercial Operation Date occurs afterlle--&èi
-Eoll1licicial Operation Oa:I:e;-Ulrt&-ae-~l-2-O-(:l ("Delay Liquidated Damages").July 31, 2007. ~2~
2.4 Delay Liquidated Damages equals the Delay Price times the Delay Volume
,~')
:;~.4~~
Where:
"Delay Price" equals the positive difference, if any, of the average Index Price minus tine
Contract Price for the Delay Period; and
"Delay Volume" equals, for the Delay Period. the sum of: the applicable Capacity FacttJT
from the Initial Year Capacity Factor Schedule times the Facility Capacity Rating times
twenty-four, for each day of the Delay Period.
I
7
")C;-I\\-:,.'11i.1Ir¡:n ..\.¡i¡(l 1";\\-:...1
..' :) Ih- P:Il"llc'." d"ri~'-' rhili ¡lie' d:imCl:cC". ¡;aeilil (;IP \\.niiid inuii ,ilie ill delay in ihc
F,iciliiy iichic'.ï;i!; .COI1 Il".'l"eLl I OpnClílol\ ¡.)i) :)1" b.:i;)'c ,lie Sci¡...:dulcd Cnmrnt:rci:;Ì ()i)C-ril;¡OIl
Ih,c' \\.,).ild he, clifiici 11 ('I 'nijlossihk 10 ¡m.:dic \\ii1i cc¡:iiiniy. :md ,ii:li ¡he: rkLI', L:(lllllIaicil
f)a'li.l:.;c's 111'..: 1m ;lppr,);riaiC i,ppri)\iiiiaiiuil "I' ,;Ldì ,lamnC;cs. . .
SE(',!IO'i 3: REPRESF\T\TI ONS AND \-VAHR,\ynFS
) 11:h'i fi! .iirp ri;pröl'ni,;. iJl\'L'l1ilt1h, :mel \Varr:iilLS 10 Sdler 11ul:
; !. i ¡l:lcifiCorp is duly (i!'.~llIi/i~d :mel viilidly C\i\iin(~, IliHicl ¡he I:(\\s or
ihe Siate ¡if Ore,gnn.
3. i.2 PacitiCoiV has ¡he rcquisite corporate power and authority to enter
iiiro ihis 1\I',rcciieiil :md to perform accordi ng to tlie rerms oftliis Agreement .
ì. i.3 PacifiCorp has taken 1\ II corporate anions requi red to be iaken bv it
to :\ulhorJ7.ê ihe ,:xcciiion. delivery and pcrf"orinan¡;c uf ihis .'greenieni and -the
consummation of ihe iransaciions contcnip bted hereby.
3. i.4 Subject to Commission approval, the execution and deliverv of this
Agrecnieni docs not c(;ntravene any provision oC or constitute a dclàul1 under, any
indenture, mortgage, or other material agreement binding on Paci liCorp or any valid
order of any court, or any regulatory agency or other body having authority to which
Paci liCorp is subject.
3. l.5 Subject to Commission approval, this Agreement is a valid and
legally binding obligation of PacifiCorp, enforceable against PacifiCorp in accordance
with its temis (except as the enforceability of t~is Agreement may be limited by
bankruptcy, insolvency, bank moratoriurn or similar laws affecting creditors' riohts
generally and laws restricting the availability of equitable remedies and except as'=the
enforceability of this Agreement may be subject to general piinciples of equity, whether
or not such cnforceability is considered in a proceeding at equity or in law),
3.2 Selicr represents, covenants, and warrants to PacifiCorp that:
1.2. I Sclier is a limited liability corporation ùuly organized and validly
existing under the laws oflùaho.
3.2.2 Seller has the requisite power and authority to enter into this
Agreement and to perform according to the temis hereof, including all required
regulatory authority to make wholesale sales from the Facility.
3.2,3 Sel1er's shareholders, directors, and offcers have taken all actions
required to authorize the execution, delivery and perfonnance of this Agreement and the
consummation of the transactions contemplated hereby_
3.2.4 The execution and delivery of this Agrcement docs not contravene
any provision or, or constitute a üefault under, any indenture, mortgage, or other material
8
"~t:h\\'\.:ihliiri,in \\:;11:1 j\.,'.\,:..,; ¡J¡"(,\l.('i~
ï~~~h,'t:,nìi:"¡ll hì"l(lilì~~ ('1:1 St"!kr \'ì: ;tny \';illd C1nL:f n¡' ~iii:. i:l."'.l!l:. ")" Jll\' l".\~.l!Ì;ll¡j;'\' :'i;~.L'rH.-\'I.q'
,',he'!' .)()dv !i;I\lllc' ;!l¡,htqii, .,'¡ \'.hi,:h "c:k-r is \llhieC!
U,5 ihi:'; \:'li.'c'lIl\:lll i\ ,I 'v':!lid ;.id k:-.;lll\ hindiri,~ ohlig'¡¡¡')li of \,:ìlèr,
c'iii(irci',ihk :igaii:s, "c!kr :11 ;iccnribnce \vi II) iiS kTlns tc:\CCPI ciS ¡he cnl'Hc::ahìliiy of
iÌliS Agrcemci'i may bc limiied hy hankruptcy, insolveni',!, h,mk moraluriiini (iI' similar
1:\\"; an~ciing cr(:dit,)!';:' ri",hlS generally and I:IW\ ¡,:sir:cting the ;i\.;nlahiliiy ..)1' i:qniuhlc
rc,inedie;; and C\CLlpt ,is ihl.: cnt()lccahility of IhlS :\grccnicl1 may he suhjèci 10 general
principlö or ;:quity, \vlh:'hcr or not such cnfOt'Cc3hiliy IS ;,'iiiisiikr,,'t! in a prol'ccdin~ ;It
("pii!y or iii i:IWi.
:t2.() "he Facility is and shall i~.ir the term of this :\gTcenient continue to
he a OF. Sdlcr has provided the apprapiiaie QF certi lìcation, which may inchidc a
Federal Energy Regulatory Commission self-certification to P8cifiCorp prior to
PacilìCorp's execution Ofihis Agreement. Ai any iille PacitìCorp has reason to believe
during the lerm of this Agreement that ScI Ier's status as a QF is in question, PaeilìCorp
may require Seller to provide PaeilìCorp with a wrillen legal opinimi from ~m atlomcy in
good si:mcling in the sWie of Idaho and who has no economic relationship, association or
nexus with the Sdkr or the Facility, stating that the Facility is a QF and providing
suffcient proof (including copies of all documents and data as PaeifiCorp may request)
demonstrating that Seller has maintained anù will continue to maintain the Facility as a
QF.
3.2.7 Neither the Seller nor any of its principal equity owners is or has
within the past two (2) years been the debtor in any bankniptcy 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 expcctcd to impair Seller's
ability to own and operate the Facility in accordance with the terms of this Agreement.
3,2.8 Seller has not at any time defaulted in any of its payment obligations
for electricity purchased from PacifiCorp,
3,2,9 Seller is not in default under any of its other agreements and is
CUlTent on all of its financial obligations,
3.2, i 0 Seller owns all right, title and interest in and to the Facility, free and
clear of all liens and encumbrances other thun liens and encumbrances related to third-
party financing of the Facility.
3.3 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 infon11ation, 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 S0011 as practicable after the occurrence of each siich event.
9
:-);'.:Ì"',\',,'J"Hl¡:r:;ll! ..\:¡~ìd FJn\\;'~T Pr(l1,.ll
SEÇTI();'d: DELlVF.irVf)fEi'f:RGV\r\D C\P.\(TlV
_l r~,~~_~J.i~..:.çry, ,~,~~aü." __~:,~~_ÇC~i)P'ì.a!.~,ç'",. S.2,h.Hl?JJL l,: ¡i ¡ :~s 0) 1 her",,\'- i ~\.~ P 1'0 \" 1 di..'i. l ¡h:l:.~': I ì.
P:iciiíC,l1V \'nli yin:li;i:,i: :'Ilt! ':.,;lkr .),III;,:I! :tll "liile 'jc;\ tlll,plll :'rl¡:lí the Jt:\ci.!iiy.
.'l2 ('apacitsFacli)!:)G)lçilI¿Js: ')clkr s\i;ii L PlCP:lIL dild ¡1li.\idl: i() í)jCi líCurp, ili) an
(,nl!t.lii'~ h:!~i", ;i '.vr¡Hcn scl:cduk or '\c: EnuC!\ êXPt~c\,~d to h,-' dc:!i\.,:ri:d :w thc Jt:icilii".
i./ap,~~'it:. Factor Schedule"). in .iccordaiicc '.,ilïi"hL~ loll(;win~:' .
.t21 !)iirin!. Ilk lir:.;1 è\\CI"ê liil! ,'ak,id:ir ll0111lh lèdlmving ih~
i .onimcrcial Opcrations I):irc. Scllc- prcdìcr~ thai the F:ic¡lity "'.'ill produce and dcl¡VtT the
li)lk)wing Jl'ìnih\y amounts ('-Initial Year Capadty FacioI' Sdieclule"): ~
Month Capadtv Fadm- :::~ ~)....--1-;/January :H-,+% z- 33. 0 %
July
August
September
October
November
Decembcr
~-7~3%~26.9%
=lZJIr,~40.2%
4i:-3-36.9%
4tG%~35.8%
3-7-+%~31.9%
3--:1-%z. 2 6 . 9 %
3-%~28.5%~~24.8%. i
M-~25.5%35 r& 3 1 . 6 %
2Tó%~27.0%
February
March
i\pril
May
June
4,2.2 Seller may revise t!he Initial Year Capacity Factor Schedule any time
piior to the Commercial Operation Date.
4.2.3 Beginning at the e:d of the ninth full calendar 110nth of operation,
and at the end of every 3rd month thereafter, Seller shall supplement the Capacity Factor
Schedule with three additional months of forward estimates (which shall be appended to
this Agreement as Exhibit D) ("Subsequent Capacity Factor Schedule"), such that the
Capacity Factor Schedule wi 11 provide at lcast six months 0 f Capacity Factor estimates at
all times. Seller shall provide Subsequent Capacity Factor Schedules no later than 5:00
pm of the 5th day after the due date. ~f Seller does not provide a Subsequent Capacity
Factor Schedule by the above deadlirne, Capacity Factors for the omitted period shall
equal the Capacity F'-actors scheduled by SeHer for the same three-month period during
the previous year.
i ()
~1.',¡-I\.vC!H_I¡!n;~¡-i ;\:¡Jìl) j),:)\\
.L2.-+ ¡$c~irlìi!1~ ,'iii); ¡he: ,.'n-i ,.)j. ¡iie 'hiid lllUiiih ,11'kr ilù:: fd¡ìn:ni'J~.d
UpCI,¡¡¡Oli Lh¡~. ~'Iidlt 111,: ;'nd or CV('I.,' ihird m,mlli ihn,:~\nc": (1) ¡Ì1(; S;;ikr '11;1, :)It
'i:vi~.c ;ii,: iinnc:d::iic'. nc\; Jircc 11:011tiis "I' rirc:\.;,y,¡,ly prll'vidcd ( i.lpacilY i':lclOr~. hilt h\
'.vrill,:n !llìiice: :~lVC:1I:0 j);ICliiC¡wp no Likr ¡lw:1 5:Wì 1)\1 ofilic: :'ili day li.,I\C.\\i:ig ihe.: ;:1:1
"I' the PI":'-:i\)\lS :1\)nl\¡. l:K S,~lkr m,iy 1...Vlse ¡¡II ni!iü pI'.VitlllSlY provided \ci Elì;'I~,'!
,\mounts. !~:iil'.rc 10 proVide rlni,~ly wriitcii notice: of c!wiigcd ;iiioiinls ,viii h,' ,kcllc:d'I;\
he :111 ~'kci;on ofn,) ,.'1;il1~.C.
!'\i!j_a',II1JÇJ1_i()I'(.ill,;icli~1':\ci(:r I l \';:C1 Ii (\:irp is.:.\c\lscd Irol1 ~ICU:plllig all i\r p;lrl
"f S,;I kr' i; 'kt Outpui :lUi~ i, ì 1 he: occurrence: ill' CllTU insuiiccs spec i licd llì Seciio¡! ().3. I, or if
Seiler is excused li'om deli"",!)' due Ii) thc nCCuirCI1CC (if cireumst,inces spcci lied !il Sc~cri()n 1l.4,
("Qualifying Curtailmeiit"\ the Scheduled Monthly Capaciiy Factor will be adjusted, pro rala
("Adjusted Scheduled Monthly Capacity Fal'tor"). lhe /\diUSICd Scheduled Monthly
Ciipacity Factor shall he calciilalcd :1,; Itlllow',
SMCr;(adi)Si'CF* 11- ¿((HcJlln ,¡, (('c/Cmax'l) I
i
Where:
SMCF ScheduJçd Monthly Capacity Factor
SMCF (adj) --, Adjusted Scheduled Monthly Capacity ractor.
Ht total hours in the month in whieh curiailment occurs
He total hours of Qualifying Cui1ai Iment in month in which
curtailment occurs.
Cc¡ Capacity curtailed due to a Qualifying Curtailment (MW)
Cmax Facility Capacity Rating (MW)
4.4 Iermiaa,ton 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
an event of default.
11
......j-\\, :..'l\¡I¡i'l¡~,U'l \.-V\\ll! Pld\\\:,__i" ¡,¡
SHTlQ!,5: Pl:R(II.\SE I'Rj(l':S
'; 1 (.i,llllòl1iÜtt:'L:i1c:lg) :'lIicks,;
¡'xii:( .Olp \VII p:iv Seiler iLL' ¡(\lhw.:icg
;1(conLìJlCC \"iili C.'.)JI:111S,.iii\1 Ordc:r 29(¡cl(
L.:..cC'pt a.) pl\~\'hlr:d :lì ~'.:cljn1i;- S.~ d¡ìd S...l,
ili)r1-:;,\('.li/ò'l ¡)r¡i.'~:,:S ¡'ill :_';ip~iL'l\\; ~1¡1d i:n(,l~_Y, III
\'ear:Si\IWh
2(1)(i S:).2 ') ')
20((S:)1.81l
200S S5)Oì
2000 S 5().)I)
20 i 0 s -~';').;) ¡
201 I ~58 ()2
2() 12 $6021
2013 $61 (í)
2014 $6308
2015 $64.53
2016 $66.02
2017 $6754
20\8 $69.oi
2019 $70.68
2020 $72,3\
2021 $73.97
2022 $7S.6R
2023 $77.42
2024 $79.20
2025 $81.03
2026 $82.89
2027 $84.80
2028 $86.76 ~2 ~¿¡C, ..:iE;
12
'\ch\I..1.:nd i li1Hn \\1 ¡ 1"1\ I ¡);.,\\;,',,'l J'lr¡'iji.:~~i
ì" ~()~~.l i U C~( i
~~oiiCOlJtornlln", P ¡1L.l-' i, Ii'¡ ¡ ¡ "., 1I..( ',)ri !òrm 1l:- i .:L'rco'/ ,III(:
;);¡Cl !î(;)1D.~.i!i ;1:!\' SI.~ll¡'1 ¡he (~-dltJ-"\ ~n~ \1or. it'\".~1i/(~d P:-lL'I.'S lnr '..':ip:il..'l!:':
-- -.
ìlìd .-TiiT:.::i'
\s~ai'S/\IWIi
~iì(j()~~.)1
': ( ¡i í"?44. 'i I
~11(i~.:i ~ ~.~
2 (¡O'J III 'is
20 L I)'P64
20i :\
48.74
4(i,gCi
5 i (in
5217
20 i i
2012
20 i ..1
2015
2016
5:\.37
54.51)
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
55.84
57.12
2017
5843
59.77
61.15
62.55
63.98
65.45
66.95
68.49
70.06
71.68 (~t( ':~.( 2." 2__.: _1~
I
I.'.'
~"j:','. ,lidmi.,t: \\j¡id I'",:. iT
;';\ \'1 n,:i' I
; ;)i':h!..~ Hìllin:.:, P~~":!"i in ':ich ( i.ììi,LICi \'\:~i.:
\,i.l Ii. (:ipaei iy I. clCl¡H iS hc: \'.-::,-'11 (I( l'" ,ui,j i 1 ii'" IÌ i ~hc Sch.:du!cd
\Inri! (.ilJUC ¡ I \i ¡: ,¡el,);. ¡hcn.
P:iYllklìl Ci)\1li)1T1111,!! Enci'c¡y II(\Vli) iim,:, ('nnl~\r:ijli'!, ¡:!li:r"y Purchase Pric,:
\i'vlWh) di\i,kd 11'. )1)01,
:,..i.2 lC (''Pih:I,) Fiieim is \c;;;; ihan 'II)";, ,.,1' ili,: Scli,'dli!c'd \'In!\lhly
( 1¡\1,Il':I) F'iC(C,r. ¡hen:
Pavl1cni Non-Con tnrlling Energy (k Wh) ii ine" '\on-( 'on torining I::ncrgy
Piir.:lusc; Price (S!i'vl\Vh) divided by ioon
5.:;.3 I r Capiicil y FacIoI' IS greater than 110".';' o!' the Sehedliled Monthly
Capacily F:;¡CIOr. i!ic:n
Payniento. Cdoniimning I":iiergy (kWh) times Con (()riiing Energy Purchase Price
(S/Nl Wh) divided by 1000 pIiis Non-Contì:miiing (kWh) times Noii-Conlìmning Energy
Purchase Price ($íMWh) divided by ioon
5.4 !Jl!ilverie.J1LJ~nergy--PacilìCorp may accept Inadvertent Energy at iissole
discretion, but will not purchase or pay for Inadvcrtent Energy.
SECTION 6: OPERATION AND CONTROL
6.1 Seller shall operate and maintain the Facility in a safe manner in accordance with
the Generation Interconncction Al:'Tcement, Pnident 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 a result of Seller's non-compliance with the Generation
Interconnection Agreement.
6.2 Seller may cease operation of the entire Facility or any individual unit for
Scheduled Maintenance Periods not to exceed one hundred ¡¡fty (150) hours for each calendar
year at such times as are provided in the monthly operating schedule set forth as Exhibit D.
6.3 Energy Acceptance
6.3.1 Paci fiCorp shall be excused from aceeptìn¡~ and paying for Net
Output or accepting Inadvertent Energy produced by the Facility and delivered by the
Seller to the Point or Delivery, if it is prevented fì'orn doing so by an event of Force
Majeure, or if PacifiC~orp determines that curtailment, interruption or reduction of Net
14
~~'\"\\,'~:ndj~'l\::liì ')/ll1d l)!:'i\.l,;!:'! '1,1
i liiipa :\1' !li:id':':::"c:iìl 11'.'1',,\ d..:li,....,.IL., I.; ;..,.'C:~'.::ir'. ')':('1\1,:: ,:(in,' ,.DI1SII'U(I;()ll 1I
lìì:iinl(':i:m,:,: r::quirC:ì:cnl'. ë::r:.T~.~'nC'L';. ,:icctricil ,,:,;,,:11 :ipi.-r:iiiii': c('Ildilinri- "\1 11\
~,\..t:~'lll iì!" :,h t)t!h:p,\:ist- r("~i~ii¡,,~~d PnitlC!1T ¡ '\('clri~..:d Pl::C:.i(~'('s. ¡ L l,):- rcasons iHhcr tJ;;,llì
:;ii C:Vël1i Gl :~'l!TL' \1:I.L.iirc. Pi¡cilIC"IV rcqull(:~ ';UCfi " ;,'llnil1111\dll, 1I11\.TlllPlIOIi '11'
:¡:,JuCli"ri :11' ,\,'.' O::rpui :kJivCTic, ¡¡',r ,i ix:ri"d 'h:1i :'xct'c',L 1'\e'IlIY (_~íIJ days. nniii,:
.'.iih iJK 1\\\:IH:,.lir,;t dcl\. nl,IICii :ll\"IIi1j'iíllIL C\lnailnK:'11 ill' r~:,hCli,)n. Sè:l!cr will h~'
,k;:in;:d III he dc:livc:rin.:! f\ki Olilplll :11:1 ¡':ile: :..qlil'::IL::ni til the pro LlU daily :1\ c'l'a!:e ,il
:IiL' ;11ì10U\lh ,;¡ii:cilicd L'LV :ih' :,pplic:ihk :llO!1ih in SCCIII)!1 .Lì jl:icifiCm~) \vill nOlif'
Si:'!kr \':hen ¡he lilkrrupllon. u:rt:nlnii:ni (\1' :-,:du\:iion :s lcin~iiì¡ltClI
f1.3.2 PacliìCnrp shall not he oh!igai,~d 10 ptichihc, receive ur pay It)J Nd
Oillpill thai is nol delivered to the PoilHoi" Delivery iii) dnring tinics and to the extenlthai
sudi energy is nol delivL~rcd hccansc the interconnection between the Facility and
I'ac irì Corp '" system is disconnectcd, Siisp(~nc\ed or interrupted, in whok or II; part,
piisi.i:ini to ihe: Cìc:neration Interconneciion Agreemeni, (b) during iimes and to the extent
ihnl such energy is not delivered hee¡inse the 'l'ransmission Provider Curiails (as defìned
in the TalifTi Neiwork Integral ion Triinsrnis~ion S,~r\'icc (¡IS defined in the Taritt) 10
Paci lì(~orp pursuanl to the terms of ihe T:Hi tt, or (el diiing times and (0 the extent thai an
event of Force :V1:1jeure prevents eiiher Party from delivering or receiving such energy.
(d.i Under no circumstances will the Seller deliver Net Output and/or
Inadverlent Energy from Ihe Facility to the Point or Delivery in an amount ihai exceeds
the Maximum Facility Delivery Rate. Seller's failure to limit deliveries to the ~vlaxirnum
Facility Delivery Rate shall he a Material Breach of this Agreement.
6.4 Seller Declared Suspension of Energy Del iveries.
6.4. I If the SeIler's Facility experiences a forced outage due to equipmem
failure which is not caused by an event of Force Majeure or by neglect, disrepair or lack
of adequate preventative maintenance of the Seller's Facility, Seller may, after giving
notice as provided in Section 6.42 below, temporarily suspend all deliveries of Net
Energy to PacifiCorp from the Facility or from individual generation unites) within the
Facility affected by the forced outage for a period of not less than 48 hours to correct the
forced outage condition ("Declared Suspension of Energy Deliveries"). The Seller's
Declared Suspension of Energy Deliveries will begin at the start of the next (ull hour
following the Seller's notification as specifiecl in Section 6.4.2 and will continue for the
time as specified (not less than 48 hours) in the written notification provided by the
Seller. In the inonth(s) in which the Declared Suspension of Energy occun-ed, the Net
Energy Amount will be adjusted as specified in Section 4.3.
6.4,2 If tlie Seller desires to initiate a Declared Suspension of Energy
Deliveries as provided in Section 6.4 1, the Seller will notify PacifìCorp's generation
coordination desk, bye-mail to lV5(lIiYJ!g.çj~:gl12s.(lIJ. by telephone [phone]), or
by fax [phone]), of Seller's unscheduled outage. 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. The beginning hour of the Declared Suspension of Energy
\ :)
Jt ..
\,.'h\\'\.TI(!¡¡ll:U1 \\/!~iti ¡):~\\'::r lriilt'i.
I kli,,','rie'S.\'¡¡ h._ 'ii ,Lc c:i:li".Si ih,; lkV.' ¡'ull hour :il:.cr !n:lk¡\1~'.,"\nta,:I,'.illi j),:\'lii( ,11'1)'., ' I'
ihe: Selkr .viii. \';:\1111 .20+ holl.s :.i1I,:I. ¡he 1,;kplin\1(: e')t);l.:L. provide l':ic'llit\lm;¡ \'.TIlttli
I1nll..c. Iii 1"..:'nrd;ll1ct \,'11i Si'ei;!):) ,~i ¡Ic:,:!:iring the hcginl1ng Iwur ,tiid durlllll\1 ,d.ilie
ikcL¡red ;'w'pension iil' F.ncT"ly Di:ìl\UI~.'; and a ikscrip¡iuiii\f'ilic: coiidlii,ilb ilui (.mlSel!
¡he :-..:Ilèr Iii illítil!k ii 'kclared Slhpcibioii of 1:llcrgy Dc!iv('l1cs P:icliíCoqi \viil I.èvic'\v
ih,: '\(,l'llmcl1':ilion provided hy the SdkI' to iìci(~nnilk P:ieiCICor¡ls aCCêniallCL: of ¡he
descrihed :;)rc,'i! 'lll\;o"': :IS ijiialilying lor ;1 Dcclan.:d Suspe\1slon of 1~l1crgy Ik.¡ivi:rics as
:')kl'ilicd in pa;iigr:iph 1i.4.1 P:I('iliC'orp'" :lcccptiince of ihc Selkr', ¡"reed outage as iin
IICl'Lï)I:i!)k ¡()rcc:d "i:(;¡g,~ \v¡ll hc bil;;L~d upon iht: cle'lr docul1wl1iitiol1 provided by 11K'
'iciki iii;¡¡ :h,:. Ii,re,." 'llllagC is ¡IOI due 10 :in ~.\2ni eif Fnrcc \.hjeurc or Iw iiegl.ci.
disicp:iii "I lack 01' adequatc prcvc'ntativc maintenancc of thc Seller's ¡:;icility. Sdlcr
;lgri:C:s to i'ctain all peiformance related d;¡ta r(1r the Facility fi)f a miniml!11 otthr~'c years,
and to cooperaie with PacilìCorp in the event PacitíCorp decides to audit Sellèr's
reporting 01' Facility Net Output and Adjusted Schcdiiicd Monthly ('apaçity Facicr
SECTION 7: MOTIVE FORCE
Prior \0 the Effective Date of this Agreement, Seller provided to Paei nCarp an engineering
r~port, dCI.l1onstrating to Paci (;0 '~. reasonah~e satisfaction: (I) the fcasi,bility t1~at Facility, N~,t:!,1l~
Lnergy will equal or exceed ~ r' :ij,( kWh 11 t:ach full ca.ienciar year for the lull term 01 thts ~
Agreement; and (2) the likelihoo(í th~lt the Facility, under average design conditions, wiiì3, U U ,..
generate at no more than 10 aMW in any calendar month ("Motive Force Plan") acceptablc to
PacifiCorp in its reasonable di5cretion and attached hereto as ExhibitF- i, together with a
certification from a Licensed Professional Engineer attached hereto as Exhibit F-2, certifying to
PacifiCorp that the Facility can reasonably be expect.ed to perfomi as predicted in the Motive
Force Plan for the duration of this AgleemenL
SECTION 8: METERING
8. i PacifiCorp shall design, furnish, install, own, inspect, test, maintain and replace all
metering equipment required pursuant to the Generation Interconnection Agreement.
8.2 Metering shall be perfonned at the location and in the manner specified in Exhibit
B and the Gcncration 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 PaeifiCorp's system at the Point of Delivery.
8.3 Paci fiCorp shall periodically inspect, test, repair and rcplace the mctering
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 hear the cost for any Seller requests. If any of the inspections or tests tlisclose an error
exceeding two percent (2(10), either fast or slow, proper con'cction, based upon the inaccuracy
found, shall be made of previous rcadings for the actu~I period during which the metering
equipment rendered inaccurate mcasurements if that penod can he ascertained. I f the actual
period cannot be ascertained, the proper correction shall he made to the measurements taken
16
,,\~:'j").-\'J_:¡¡(;l;rìJI-" VJ ¡i':d Pi i '.\"I,-'! ¡:l¡¡J~~l'1.
\'!I:'1n~~: the ¡inìr_' iiii~' ~n¡,:'L','"r¡i!~_~ ,,-'ouin;)1Crli \'.1;1:: in ,';('1''.-":c(.' ji;(',:",: Lhl ¡.('sied, hUi nnt (~'\c('(',d!ll~.! 11Ì\\~c
U) Biilil1:l P:T:oJs, II' ¡he :i.ni..;in; the niCknl:g ::quipinc'l1' shal! In,-,: h:~(;11 ,ho'.\'11 10 hei i~l '1lTor
SIH:II ,':';1. .\11'/ u)iú'ciiol1 !! hilling,; or p:.i','11K'nl:- r('sliitIJ\~ 11'011 :1 CllITel'nn :1' thè ;i1(\lr
r,Y:ird.; ,h:ili he' ilL!\k !J ¡he nê\l monthìy hilliJlg ';1- pllV!nCll rClì(!lruL
SA To thc C\tcnt not Oil1CI"\il,,: pri\\ick1d:!1 :he (jClKr.ii,'ll1 '¡¡krconncciion
:\,ir:clIi-II:t. :dl P:ICiiìCi,rp',; costS relating Iii :ili liLIL'r:I1¡'.~uiipmc;i1 ;i:su¡lcd :0 Jcco:rì11od:iiC
';,.I1.,'r', ¡:;iclliiV ,lwil he horne hv Sc\ki.
SECTION (): BILLINGS, C()!\IPUT\TIONS AND p,\ )'i\IE:-TS
() ¡ On i\r hcfore the thirtieth (.ìOil1) day f'ol\nwìiig Ihe ènd of each Billing Period,
Paci iìCiwp ~hal I ~end to Seller payment i~)r Seller's del ¡vcries of Net Output to PacifiCorp,
!ogcihcr with cnniputations supporting such payment PaciflCorp may offset any such paynwnt
10 reflect :l1louni'; u\Vili,~ from Seller to PacltiCoip purS\l\It to this !\grccnicnt and the
Cìeneration !nterconnection Agn:cmcllt.
')2 :\ny amounts owing alter the due date thèrL~or shall hear IItcrest at the Prime Rate
plus two percent (2'~/;)) li'om the date due uniil paid; provided, however, that the interest rate shall
at no time exceed the maximum nlle allowcd by applicahle law.
SECTION 10: DEFAULTS AND REMEDIES
10. I The föllowing events shall constitute defaults under this Agreement:
i O. i.1 Seller's failure to make a payment when due under this Agreement,
or maintain insurance in eonfoimance with the requirements of Section 12 of this
Agreement, ifihe failure is not cured within tcn (10) days after the non-Jelàulting Party
gives the defaulting Party a notice of the default.
10.1.2 Breach by a Paity of a representation or waranty set forth in this
Agreement, if such tàihire or breach is not cured within thirty (30) days following written
notice.
10,1.3 Seller's failure to care any default under any commcreial or
financing agreements or instrument (including the Cìeneration Interconnection
Agreement) within the time allowed for a cure under such agreement or instnimcnt; 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 aftcr such filing; (c) becomes insolvem; or (d) is unable
to pay its debts when due.
1'7
¡:.;('i!'.,;.';"!1d!i~);':n \i,' ¡;,l ì~. 'j.:. 'i : ~-', " \
iii
S,.lkr hii-:.
I'::c ì :1 (" "11.
\ \Lilt.n;i! :\..\''-r,,: ( L11I~::t~ has ,,;,'(,!iic';j '.v:ili r::s!,!..' ~c'I!('r :!i:d
'~\¡ch p(OrfnniariCi.- ~1:-S\!~O:!l,C'.':'; ;ìS :\r(: ¡"('ii:;,')'!!:!h!.'-: i"t'L\UL',':lèd
'\:11::11 :1n'~:..~n! .~'ì d;i~,.~ !'rcìill ih,~ d.:dC l.)l~;~iCh 1-'.'qik~'\L
¡ i.ì, .\ P:¡¡"iy :.)ìhc'r~,\"'¡~e l;'ills to pcrl~)nn ;illY rli;,tli'ri£i1 ()h.!i~;ltiun (l¡h;ludi!1E
hut !Wl limike! in !;\ilmc: hy Selkr 10 meei :\l1Y dcadlin,:; sct ¡ìHih 111 Sccii,m 2 21 impose::
upon ih;¡¡ r':irl\' hy ¡his Agrcement il the !":i;!mc is nni c¡ired within ¡hiiiy 130) day~ ancr
ihe' ntll1.,kl;lliiiil1,:, Party givcs ,hc dcl:uiiing Party notice of ihe dct:nili: ,Ii(;)vidl'd
itO\\iTl'ï. 111;11, I:POIl wrilli:n noiicc 1'1'11 Ihe defaulting Party, this ihiny i3U¡ day Pçriod
~hal i he c\ tended by aii ;iddiiional ninei y ¡9U) days ì l (a) the taihirc cannot n:;asonably he
clired within ihc: thirty nO) d,ry period despite diligèll eflorts. (b) the dehuh is cap;lhle
of being cured within the additional nind)' (()O) day period. ;mò (i~) the defaulting Panv
commenccs the cure within the original thi rty (30) day penod and is at all times ih~reaft¿r
diligently and continlitHlsly proceeding In cure ihe lailure.
10.2 In !he cv,:nf of any dcl~lUll hereunder, ihe Iloii-del~iulting Pany must notil\' the
delaiiliirig I)arty ill writing ol ihe circumstances indicating Ihe default and olliliniiig ihe
rc;qiiircnients 10 cure the deülll1i. If the defuuh bas nm bcen cured within the prescribed iime,
above, Ihe non..dclau1ting Parly may ierminate thi s Agreement at its sole discretion by delivering
wrìncn notice to the other Parry and may pursue any and all legal or equitable reinedies provided
by law or pursuant to ihis Agreement. rhe rights provided in this Section 10 are cumulative such
that the exercise of one or more rights shall not consti lute a waiver of any other rights.
10,3 If this Agreement is terminated hecause of Seller's c1etàuH, Seller may not require
PacifiCorp to purchase çl1ergy or capacity from the Facility prior to the Expiration Date, and
Seller hereby waives its rights to require PacifiCorp to elo so, This subsection 10.3 shall survive
the tennination of this Agreement.
10.4 If this Agreement is tem1inated as a result of Seller's default, Seller shall pay
PacifíCorp for the energy and associated capacity that Seller was scheduled to provide for a
period of twelve (12) months ("Replacement Period") from the date of tennination plus the
estimated administrative cost to acquire the replacement power ("Net Replacement Power
Costs"). Net Replacement Power Costs equals the Replacement Price times the Replacement
Volume plus the estimated administrative cost to the utility to acquire replacemcnt power.
Where:
"Replacemcllt Price" equals the positive difference, if any, of the avcrage Index Price
minus the Contract Price for the Replacement Period; and
"Rcplacement Volume" equals, for the Replacement Period, the sum of: the applicable
Capacity Factor from the Capacity Factor Schedule times the Facility Capacity Rating
times twenty-four, for each day of the Replacement Period,
Amounts owed by Seller pursuant to this paragraph shall be due within fíve (5) business days
after any invoice tì'om PacifiCorp for the same,
1 g
-
'~t'li'..\:c.l;dii1L!,il \;\"1:1(1 P(i..,.\.-';..r ¡'lr()iCCI
SECTIOi\ 11: INDf\i"J 1l'l!d\DO\
i ! II.d'.l~'ni¡lcc;
I!. ì. ¡ !nden1Iili:.~hy,S(:Jcr. ')ci \;1 ',11:,11 ¡\:!CCIS';. Indcllnil\' lind hold
k!Jnlös 1':Il'IIi( .¡~rp! its dl¡eCIOrs, olìicers, ;igcnis, :in,i it:)l,;c;enLi1IVCS .lgaiiisi and ¡'rom
iill\ aiid :111 lths. fines. penaliies. claims, :ictlOih 1\1' S\lIIS, including cosh aiid aiiullcv's
fccs, boiii ;\1 Inal :iiit! Oil appc;\I, resulting from, () :crisiiig out ul (Ii' in aiiy \\'ay uinntT:ct!
w:ih (:1) tiie energy iklivcrcd .))' Seller undc:r :l11s'\grcclIcllt 10 and .it tilL' l)ollt 01
¡)L'!ivcry, (hi .iny LICillllCS on Seller.s sidc uC the ¡'oim i)l Delivery. (e) Selkr's t)pcraiion
and:o: m:iinicnancc tìl the hiciliiy, or (dl m'ising lrom this i\grccincni, including \'.:iihoul
liiniiaiion any loss, claim, action or suii, lòr or on accoiint 01' injllY, bodily or othcrwise,
to, or death DC persons, ni for damage to, Ol deSlnlciion or economic loss of properly
belonging lo PaeiliColp, Seller or oihers, excepting only siich Inss, clnim, action or Siiii
,is may be ciiised solely by thi: l~tu1t m gross ncgli~'!\~l1Cl~ of PacifiCorp, lIS directors,
officers, employees, agents or reprcsentatives.
i i. i.2 In~Lcmii!lY.by...EJlciiiCQJ. PaeifìC'orp shall release, indemnify and
hold harmless Si:ler, its directors, oltcen;, agcnts, Lenders and representatives ai~ainst
and from any and all loss, fines, penalties, claims, actions or snits, including cnsts and
aiiorney's fees, both altrial and on appeal, resulting from, or arising oul of or in any way
connected with the energy delivered hy 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 otheiwise, 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 ScBer, its directors, oftcers, employees,
agents, Lenders or representatives.
11.2 NQ.J),egjcation. Nothing in this Agreement shall be construed to create any duty
to, 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 Pary's system or any portion thereof to the other Pary or
to the public, nor affect the status of PacifiCorp as an independent publie utility corporation or
Seller as an independent individual or entity.
113 COJ1seqiieIJ!i'!QllJlf~~. 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 Party for special, punitive,
indirect, exemplary or consequential damages, whether such damages are allowed or provided by
contract, tort (including negligence), strict liability, statute or otherwise.
SECTION 12: LIABILITY AND INSURANCE
12.1 r;tI.tiJÇllL~. Seller shall provide PacifiCorp insurance certiticate(s) (of "ACORD
Form" or the equivalent) certifying Seller's compliance with the insurance requirements
hereunder. Commercial General Liability coverage wr¡Hen on a "claims-made" basis, if any,
shall be specilically ideiitifìcd on the certificate. If req\1ested by PacitìCoii), a copy of each
i ()
'.r.::l\\"~.'¡ìdinì;-H1 \V11H1 Pi.'.,\'~_'l ¡~¡li;t';-'!
l:i:;ul:I1IV,~ ¡iiilic'., ,xrtiií,':d:h:1 'r'i,' COP'.' hy aii :¡lIt!iOl!.i''i: I'PICi'_Thii..:c' iil!lh.: ,;;11In;: 1!bl!rmr:..
.111\,);,,'1\'. ch:111 he lùrli1sii,:i.:i1 .l:lclliCorp
')) l(cJI1!Ìrc~r)(\lic:ès .iil,ì(.()\èraJl_~. ',vìih(\lIl ¡iilì!t¡ii~ (my ¡iahilities or ,iiiy oihi.:r
"i,li.i:iiiio!l:; or Sellcr tinder Ihi,;\grccl1cnt. frorn the conimeriCcni(~ll i)f interconnection \viih
P:lcifiC'orp', elèctric IransniisSI(\il sysk'l1 until the TCIl1inaiicin ¡-):Ik or this Agri::emeii, at its
,'wn t:"pènse. S¿~¡kr sliall secure and coni¡mlt)lIsly c:iny, \viih an insurance company or
::nmpanic:s raled !lot .O\\.'r tli;iii .'.:\ ,\I heiier" hy 1 hi.: \.:"1. ikst Coinp:lIv. ihe 111:i1l:inCL'
(,I)\'T:i~c speci li('d helow:
12.2. ¡ Wi)rkcr'" Compensation insurance: wliich coriiplics with ihe laws oj
¡he slaie v,,¡thin \vhich i!i\~ Wind Facility is IOUHed~
12,22 Commercial General Liahility insur;\lce with hodily injury and
property damage i'onibincd single limits of at least S l .oon,non Der OCClIlTencc. Seller
shall maintain ¡he policy in accordance with teniis available in the insurance market fiH
similar electric generating facilities. Such Insurance shall include, but not necessarily he
liniiled 1(\, speci fie coverage for contractua i I iabi lit y encompassing the indcmni fic;ition
provisions in this Agreement, broad lèirm property damage li;ibility, personal injury
liability, explosion and collapse hazard coverage, produets/complcted operations liability,
and, where applicable, watercraft protectiDn and indemnity liability; .
12.2.3 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 fOT "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 temis available in the insurance market for similar electric generating
tàcilities. The policy shall include coverage for business interrption in an amount
covering a period of indemnity equal to twelve (12) months. Additional coverages to be
included arc:
(a) Catastrophic Perils Insurance not less than 80% of the currnt
replacement cost of plant, building, and/or equipment.
12.3 InsuranQ~S.t!1!Çll1re. Seller may satisfy the amounts of insurance required above by
purchasing primary coveragc in the amounts specified or by buying a scparate excess Umhrella
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 OCÝlllI~.lJçJ;:J.3il~~.LCovera~. The coverage required ahove, and any iumhrella or
excess coverage, shall be "occurrence" form policie,;. In the event that any policy is written ona
"claims-made" basis and such policy is not renewed or the retroactive date of such pol\icy is to he
changed, the first insured Party shall obtain or cause to be obtained for each sucl policy or
policies the hroadest hasic and supplemental extended reporting period coverage or "tail"
reasonahly availablc in the c.ommercial insurance market for each such policy or policics and
20
"~;_~j1\\-~:'i¡illl1i:i;1 \.\ '!\¡l t)i1\\to'¡ í)!(\j('_i,~.t
,i i.iÌ ! prdVlik I:. l;!leT 1);111\ .\.iiii pr",)r ilvi .:uc 1:');lSI(' ;;IH! ~::P!)L:iY'. Ii;'! :.v:(ï1ikd :.::POlïIIL'
)"~'lil\i_ì~'i)'.'~:1 ;'1~~\.~ ~')r ":~L! 1" ha:. h;~:.'l1 cih!.:,.il:h~~d.
i 2.:' Lnd(\rselll.';I!Lllciil.~. ')cllcr,lvli ¡lìilli'diaiciy c:I\I,e ;I, insur;;rs ii; :imend iiS
(\-,mmerci:ii (j,,:n::r;11 r_ia1id:iy '1IHI I iinhrelLi ,;r r;xccs~ Lia1iiliiy pnlicies 'Nitli ,!I: ortlie liillowlIg
'.'ndorSCll1Ciit !tll1s. :lld in amend its \Vorkcr's Coinpcns:ìt¡OI) ¡)O!iey \V:i!i ih,~ eiidOf'ClleiH items
,;~I 1;.\1,1' in I\li:'~:!;ra¡iiis : 2.': 3 ¡mil i 2.'\.1 helow
r.2 '\.1 l\iclliC orp and ¡is.\llil¡;ncs. ¡k:ir ¡('speUI\c dircctors. olliccrs,
,'nq.iiiiy,:(:s. :iiid d!,cnis ;h :in ::ddition:i\ 'l1surcd under this policy :\1(\ ': the llLI\ltì1ini
:::xtent all()\vcd by law. shall be provided '.vith ('ovcragc:ii lLast as broad as those required
eillhe Sellcr by this Agn::ement;
i 2.).2 This insurance is primary v\'ith respect 10 the iniercsi of PacitiCorp
~lJd it'; Atlili:itC:S and thèir respective directors, otiiccrs, employees, and agents;
12.)..1 Insurer hereby waives ,ill riglits DC subrogation against PacifiCorp.
i is /\ ii ¡¡aks, olìicers, directors. employees and ageiits; and
i 2,).4 Notwithstanding any provision ofthc policy, this pohcy may not bc
canceled, non-renewed or materially changed hy the insurer without giving ten Ò 0) days'
prior wrillcn not ice to Paci fiCorp.
12.5,5 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.
i 2.6lerjodic_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 deseribed in this
Exhibit to the extent reasonably necessary to cause such policies and coverages to confonn 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, Scller shall
have the right, subject to PacitiCorp's consent, to make changes in the coverages and limits of
the Builder's All-Risk Insurance and the All-Risk Insurance required under this Section, to the
extcnt the coverages and limits specified herein are not reasonably available at commercially
reasonable rates.
SECTION 13: FORCE MAJEURF',
i 3.1 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 PaciliCorp which, despite the
exercise of due diligence, such paity is unable to prevent or overcome. By way of example,
Force Majeure may include but is not limited to acts of God, tire, flood, storms, wars, hostilities,
civil stri fe, strikes, and other labor disturbances, earthquakes, fires, lightning, epidemics,
sahotage, restraint by Couit order or other delay or l~iilule in the performance as a result of any
action or inaction on behalf of a public authority which is in each case (i) beyond lhc reasonable
).1
-
~~ch\V(:~1(¡iin;.!n \\-:r)(; i\'i\\.:'.~':' ¡)riji_'(~
"'.111 m! Ili. such iHn \', II i) h:: Ilk' ,.;\CI"C)'l: .) I r,.,I:,;,)11 :ih k lòri:.;1 ¿hi ;;ich P,¡¡-¡Y úl\i!d noi rc'c¡sol1:ihlv
h:i'::: h~,_':i c\pc:ckd III i;\('iidmd 1111) b\ ¡he c:\crcISC ,)Cdl!c:i¡llg,:ncc. stich pany ,hall h:: IIl1iihl~.
in :)r~'\c'iii ",. ,were.\I,lt: ¡."1\.': \Lojcur,:. \))\\::,::r, spn:iiìc:i\::i ,',,'Iuks the: COSI or iivaibhil;iy c:l
¡'iiel or I1lO!i':c Ci)rCc~ \0 "1Kr:iri: ¡he hkiliiv or ..:h:in:;c,; in 11\.rk(;1 condiiions thai :ilkCi 11K: pnCe:
,)l ,:ncrgy (~r transmission. 11 ('lllk'r p:iny s '."nc\crcd wholly nr :n ¡i:\l unable in pcrtnrm 1l~
ohlii.iill0n Iillder ihis .\~r('cmcl1r hCCiil!;;C oj' an event or Force ¡vtaieme, both Panics shall hc
C\cus,_'d Irnl1 \\h:iici.,:r ¡wr:-,..rnuiicc: is .iilcc!cil hv :he (;\,C11 olForcc \1,1ICIII-'':, pi(wi(kd ili;w
i.'" ¡. i :he' 1:011' pcllì)iiiiiiJ~l. par1',. sh,ill, wlih!11 tiv" (1) we~eks after the
,Kciirr~~ni~i: or the I:o¡-('o; \:tajeure, give rh,,: \)!hcr pany written notice descrih'ng the
pariiciilar;; of ¡he. .xclIrencc, including ~hc ;.t:ill date oj the Force Majeure. the caiis,; 01
Force Vtajeiirc, whether ihe Facility rcnia¡ns partially operational and thc éXJkcied end
date 0 l the Force iVlajcure; and
13, I .:2 the suspension () f perfulïll anee sha i\ he () f 110 greater scope and 0 l no
ion!i,cr duration than is required hy ihe r:orcc \-¡a¡curc; :ind
13.1 '1
to perf(¡rni.
the non-pcrhirming party uscs its h(~st clTorts to remedy its inahility
i 3. i.4 the non-performing party shall provide prompt written notice to the
other party at the end of the Force Majeure event detailing the end date, cause there oi~
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.
i 3.2 No obligations of either party which arose before thc Force Majeure causing the
suspension of performance shall be excused as a result of the Force Majeure.
13,3 Neither pai1y 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.
S)i~CTION 14: SEVE,RAL OBLIGATIONS
Nothing contained in this Agreement shall ever be construed to create an association, tnist,
partnership or joint venture or to impose i1 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 lÌ)1 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 inay direct the application of the laws of another
j urisd iction.
22
Si'hv.",.'.)i;.liii¡;.iii -.hi!)d ¡)l)\\':t~:l
SECTION 1(1: P.\.RTL\Lll~~'~\.L1Qn\
It ~ :101 ¡he' ¡nll.'llilt"n: ul tilt; P~l!.\¡L~'S ;0 ".-:¡olah.~ ~tny a~ss :SliVCll1ì!\g thi.' ,~uh.l(.:ct l1iat1('r of th¡"
:\~rl',_:m('ni II' any 01' ihc ienn:" t); tlK :\grcciic:l1l ~irL: í¡iUIlY held or dCkl'nill1cd to h,: Ilìv~ilIJ.
illegal or vuid a:; hcing contrary t'J ~lI!Y ~ippìicab\c Liw or public policy. ill! oTher krms 01' ibe
.\(;rcC:lìcnl shail rc:main il1 dTccl. II' ~jiiy terms ~llt tìnilllY held or dctermil1cö to hc :nv;ilid.
iikg~il ,ir "'.i'd. tiic' Pattic", sliiil enler min iicgntiaiions concerning ihe ICrIb aiiected by ,;nch
dCCISi,)lI ¡(Ii' ,he purpose oi' ;iciiieving (()it()r'liIY \viili l('quiIL'mc'Il'; of' ¡'n', ,:¡ipiicahk :~;w ;.iid
ihl.: illi:Jll nl ¡Iii: P;iriic;; in ihis Ag:\:cl1':lIl.
SECTION i 7: WAIVER
Any waiv.:r at any iime by (~iiher party 01' its rights with respcct 10 a dd~llllt under ihis
Agreeiieni or Wiih r,~specl 10 any other iiatters arising in connection with ihis i\grei.iicl1t miist
be in writing, and suc.h waiver shall not he rleeilicd a waiver with respec\ 10 any suh;;cquent
(kLIIlI¡ or other mattcr.
SECTION 18: GOVERNMENTAL ,IlJRISDlCTION AND AUTHORIZATIONS
Tliis Agreement is subject to the jurisdiction of thosc governmental agencies having control over
either party or this Agreement. PaeifiCorp'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, pem1Ìts and other approvals
as then may be required by law for the construction, opcration and maintenance of the Facility.
SECTION i 9: SUCCESSORS AND ASSIGNS
This Agreement and all of the tem1S hereof shall be binding upon and inure to the beneiìt of the
respective successors and assigns of the Paries. No assignment hereof by either party shall
bccomc cffcctive without the written consent of the other party being first obtained and such
consent shall not be unreasonably withhcld. Notwithstanding the forcgoing, either Party iiay
assign this Agreement without the other Pai1y's consent to a lender as part of a financing
transaction or as part of (¡i) a sale of all or substantially all of the assigning Paiiy's assets, or (b) a
merger, consolidation or other reorganization of the assigning Party.
SECTION 20: ENTIRE AGREEMENT
20.1 This Agreement supersedes all prior agreements, proposals, representations,
negotiations, discussions or letters, whethcr oral or in writing, regarding PacitiCorp's purchase of
Net Output from the Facility. No modi fication of this Agreement shall he effective unless it is in
writing and signed by both Pai1ies.
20,2 By executing this Agreement, each party releases the other from any claims,
known or unknown, that may have arisen prior to the Effeetive Date with respect to the Facility
and any predecessor facility proposed Lo have been c.onstructed on the site of the Facility.
,.,-,-'
')~'h\'-'\."\:t \: i':~:\ll '-.\:- ~l, ;),)\.\.-'1' iJri i1õ:.'i.1.
SEtlJO\ 2L_~..cn'¡CFS
-) i .\) ì'i(iliC(:~ :.~-'CCP\ :1:- ¡)then.vi,,;.__' prf")\.idcd n ihi;;. '\~:!.rC\.',Tn'.-,!'1 :-h:ill ()(' llì '.\THinš.
.,li'¡l !i,' dir,'cicd ,i'; i,.llIO\v, :¡iid "h;!l1 he cnii,idcrcd i.kli\.ercd it' ,kli\uc\! in 1);',,;ul1 01' ..'.heii
;!Lpnsircd :n ¡he liS. \1;111, DOSI;I:," p'.\~paitl hy ce:rt\ fieid iir :'(:C'hri~n',d :n;li1 ;ntl i\'j¡¡r: rs,:pt
r,.¡pi,,~"r(\ I
i\orjl'C"
.\I! :\oiic(";
I ,\11 Invoices:
Ir-----.v---------"-......--: Scheduling:
i
i ..... ._.. _ .
Payments:
Wire Transfer:
Credit and
Collections:
ladtïCorp Sdkr
f';\Cllì( .iirp
S2S i\E !'illtl\I\lVIi Street i'ortl"iid,
OR ()2;2
\11' Tyler 'ichw':lldim;1!l *
p(~)--gt)-,-"-16.~ 5 3 04 T _1 _ d '¡' C i r
R.if.j,¡.;.l ¡.)-g.~-+; l\r.ilTo n ,: D 8 34 0 1 ¡
EM;lÍ i: tyknàlholdcl1l1ccarty.cnll
Phone: [phone].'\nn: Coniract Administration.
Su ite (¡ni)
Phone: (503) X i 3 . 5956
Facsimile: (.'in) 813.6291
Dims: 00. yi()..i)O i:;
Fci\tral Tax ID Number: (n024()()()U
Val Schwendln\an
9633 East: Hwy 33
Newdale, ID 83436
Phone: 208 - 4 58. 4 2 61
Ann: Back Otiice, Suite
Phone: [phone]
Facsimile: (503) 813- 5580
Attn: Resource Planning, Suite 60n
I ~ho~c: (5?3) 8-.13 - ~090')i acsiniile, (50.)) 8b 6ji5
.Ä.ù;~~'B~~kÖ rfice,- Sui te ~;O';:¡ÕÕ*--'-'-
Phone: (503) 813 - 5674
Facsimile: (503) 813 ....5580
Bank One N,A.
To be provided in separate letter from
Paci fiCorp to Seiler
........Att~C:reiltlYiånag~r,-Suite '1800 ---- 0...--------,.-.
Phone: (503) 813 - 5684
Facsimile: (503) 8 i:1 . 560t)
With Additional Attn: General CounseL and
Notices of an
! Event of Default
I or PotentialEvent of Default
l.~::........_._.. ..__............_______.._.___..__0-__..__._....... ..-
Dean Brockbank, Atty
5029*Phone: (503) 8 I 3..~ and [phone] 7252 *
Facsimile: (503) 813-7-26.2 and (80 I)
220.3299
The Parties rnay change the person 1.0 whom such T10ticcsare addressed, or their a(ldrcsscs, by
providing wriiicn notices thereof in accordance with this SuhscciiolL
24
kTÌ1ese changes agreed to in Lhe r~econd Ainendm(~~nt.c: 2:,
! " ¿r.'liÆj'-I. .L.c. -;:::. ".
".r.~;~. '7
SChivclililn,in Wind 1\)\tT I'rnjcci
SECTION 22---SVCliRITY'"
22.1 I )I'Jh_Ü\L()Jl_~..
22.1. i
$275,000
-'Default Seeurity" Illc,lJS S21)().OOO US.
;I!:!rccd to in writing.
d~~
Iilllcss oihcrwist' .;,~.
y) 1.2 "Letter of Credil" l1icans aii ilTt~vocable standby lettcr of
credit, li'oii an institllti Oil that has a long-term senior lI11secun:d
debt raiing of "i\" or greater from Standard & Poors or ":\r or
greater Ii'oll Moody's, in a form reasonably acceptable to
P,leiIiCorp, naming PaciliCorp as the party entitled to demand
payment and present draw requests thereunder.
22.2 12uLllPost S.~8_!Ii!Y. Schwendiman, within 5 business days after iiiUC
approval orthe Second Amcndmentto this Agreement, shall post a Leiter orCredit in the
amount \)1" the Dcraiilt Security. To the extent PaciliCorp draws on the Leiter of Credit
cause the rcmaining DeI~\uit Security to drop below $50,000, Schwendîman, within
lìfteen ( 15) days, shall rcstore thc Default Security to no Icss than $50,000.
22.3 Riu:ht to Draw on Security. PacìfiCorp shall have the right to draw on the
Letter of Credit to collect Delay Liquidated Damages, which Schwendiman will begin
accniing, pursuant to Section 2.2 of the Second Amended Power Purchase Agreement, on
August 1,2007. Commencing on or about September 1,2007, PacifiCorp will invoice
Schwendiman for Delay Liquidated Damages incimed during the preceding month. Any
undisputed amount not paid within 30 days of the invoice date shall be drawn on thc
Letter of Credit. Billings and payments for Delay Liquidated Damages shall be made in
accordance with Section 9 of this Agreement
22.4 Additional Security. The amount of Default Security represents the ~~
estimated value of Delay LiqMb~~Mi,~pl.rll~s, from August ), 2007 to the Scheduledd ~
Commercial Operation Date (May 1, 2068), based on foiward price estimates and based --f::/
upon Schwendiiian's Initial Year Capacity Factor Schedule. In the event PacifiCorp
reasonably determines at any time that the remaining amount of Default Security is less
than the estimated value of Delay Liquidated Damages (due to upward changes in market
price and/or due to Scliwendimails inability Lo meet the Scheduled Commercial
Operation Date), PaeitiCorp may demand that Schwendiman post within S business days
additional Default Security equal to the estimated (unpaid) Delay Liquidated Damages.
22.5 Termination of Letter of Credit. Schwendiman may terminate the Letter
of Credit on the l80th day following commencement of Commercial Operation by
providing PacifiCorp with no less than thirty (30) days advanced written notice of its
intent to do so unless PacifiCorp disputes whether all Delay Liquidated Damages have
been paid.
*This Sect ion 22 added in its
-: 2:- ,-:i\:.. d\_S;"entirety by the Second Amendment. -
") r:L., .)
SChWèlHliliian Wiiid I\mc'r I)rojèd
22.1) Ikj':iill!. F:iiliirc III iiwiiit:iiii SCCllrity iii :lcC\lnlaIKe \iirh Section 22.2 ;iiid
Section 22.4 uniil properly terminated in accordance wiih Si:ction 225 shall ,'CHistiiule an
I:,('nt (\1' DclalilL unless cured in :iccordniiec with Section If) 1.1 iil'ihis Ag.reement.
rl~enininder Ill' this page inlentionally len blank I
26
.
.sch\\'!.;,ndll~-1~;r: \lJ::1d PO"'v~r'ï ?n)JGct
fN WrrNESS WHEREOF. the Farties hcrë:ta Ìlave c:iused thIS'\greerncnt te JC cx'_:::%:d
in ¡heir re~-pccii'.c names as ofthc (Lite ¡ïrst aho'/c written.
P_a¡:i1CQW S_i~: t¡~y qr1JljD:~~.ii,Y¿jl~"tJ ~,_L(~
By:, __~U,,~~~J.----i ç-_~(:t' 1:2:1:'- ':::-----
('
~£__//7ø /:~=-.BY:.'~~~::_
/,.' ././ (/~Na'e::--ií -~._-~)jllVe rJ¿ ¡iyie
Titie:-.VJdLtt.1e_C~
,
Name: Judi Johansen..,-_.:-------------
Titlc: President and CEO______
~o)
27 ~2~, (i.. (~/l:-~
1...'1111311 "
fWSCRIPII()N OF SFLU.R'S IV'IUIY
.,
11Ibine Sekcii\ii :ll1d ( onligur:itiiii: Seller intcnd.; 10 conslnll! Illl: ¡,icilii) iising the wind
turbine described in this Exhibit ,\. Any chnnges to the lina! contigllation ol'the wind turbines
madc by the m:inutaciun:r in its 11 0 1'11 a I course ol business. whidi does not cause the Facility 10
('xceed the ivl:ixiliuli F:icillty Delivery Rate of in ;irvlW, would not constitute a det:iuli oltliis
Agri:ellent. Any di:inge inihe ni:l1ulacturer and/or model of iiibiiic ¡ised in the hicllity shall
require the express wriiten consent of PaciliCorp.
F:1C~!~tiSda~~~ci!t_~:~ti~g: 20,(!~~l k_W at..~,,~ndsi!_~ed _~?L~t \:'.i~~:_J i n1j)I::ind ~~_!!T!1
The maximum net output of the Facility should be below the nameplate 20,000 kW based on
:incillary station loads. Ilowever at this facility such auxiliary loads an: very small so as to be
inconsequential ;md thus the Ilaximuii nameplntc should be considered the l1:ixiliilm facility
output.
Location of the Facilty: The Facility is to be constnicted in the vicinity of Idaho Falls in
Bonneville County, Idaho. The location is more particularly described as follows:
Scctions 3 and 4 of Township 2 North, Range 39 East,
Scctions 33 and 34 of Township 3 North, Range 39 East
The equipment to be installed meets and exceeds industry standards and PacilìCorp requircments
for low voltage ride through and power factor compliance.
Total Project design constraint specities less than i OaMW capacity per month or approximately
20MW tàcility output. Seller's Facility current design consists of twenty 10 MW wind turbine
generators manufactured by Nordic Windpowcr. If revisions are made to the generation units by
the same manufacturer or their specifications, such information will be provided to PacilìCorp in
the As-Built drawings at project completion or when appropriate. More specifically, the current
generators planned for each wind turbine at the Facility is described as:
i. Introduction
This document defines the major system attributes of the Nordic Windpower 1.0 MW Wind
Turbinc Gencrator System intended for this project at this timc_ Nordic reserves the fight to change
any specification contained herein without prior notice. It is the purposc of ihis document to
providc general information rcgarding the product represcnted.
*This Exhibit A replaces the prior Exhibit A in its entirety.
A -- i
.-:2 :'
....,'1((j
) -_...~._.._._,.:1$
Si'liwi.:ndiman \Vind I)O\\,cr I'rnii'd
î (;t'iieral Spedtkatiol1s
Type
Number or Blades
Oricntation
Operation
Rotor Specd
Control Principle
Jlub Height
Primary Braking
Air Brake !\etivalc,l)c;lctivatc
Powcr Output
Yaw
Cut-in Wind Velocity
Cut-out Wind Velocity
J.I~otor
Diameter
Swept Area
Type of Blades
Tip Speed at Rated Output
4,Blade
Blade Length
Material
5.Hub
Type
Teeter Bearing
6,Gearbox
Type
Gear Arrangement
Ratio
Main Bearings
Cooling
7.GeneratOl's
Type
Operational Speed
Rated Power
Voltage
Enclosure/Protection
Cooling
IliHi/'ll1lal,\"is
î
IJpwind
Fixed Speed
~" rpm
SI..111
(i() 11
i\ i r rhakL~, Turnable Blade Tips
Centrifugal Forceillydraulics
1000 kW
i\çtive
4 111/S
20 m/s
i 0 min avcrage
i 0 in in avcrage
59m
27 34m2
Nordic Designed
7 I Il/s
29,5m
Fiberglass Reinforced Epoxy (GRP)
Teeter
E 1 astoineric
Planetary & Helical
2 Planetary & 1 Stage Hclical
1:62.4
Integrated Turbine Bearings
Heat Exchanger
4-1)0Ie Induction with Variable Slip
i 560 rpm
1000 kW
690 VAC
lP54
Liquid (Glycol-Water)
A - 2
Sl'liwc'ndi in~ii1 \V ind 1 )0\,/(, i),., 'ic't'i
x.Parking Brake
Typi'
-\\'I jynie/ Deai'! i vali
9.Yaw System
I'ypc or Motor
Dri Vl' \:Iotor
HI.Tower
Type
Diameter Top/Bol\ol1
1 i.Control System
Type
Control
12.Environmental Application Limits
Extreme Wind Speed
13.Grid Compatibilty
Frequency- Continuous
Line Voltage Continuous
Power Factor
14.Noise Performance
Sound Power Level L W A, ref
40 db (A) at Distance
IS.Weights
Tower
Nacelle wI Turbine
Turbine
Vki~lwnical Disk Flrake witli ¡iv,)
Cal iiwrs
Springs/llydr:iulic Pressure
Roll ing Bearing
Three Hydraulic
Welded Steel Tube. Painted
1.913.0in
IY icroprocessor
Rciiiote
55 ni!s (standard)
60 i-iz
690 VAC
1/.99 at 0/1 00% power
100 db (A)
330m
45 tonnes
29 lonnes
17 tonnes
A - 3
.kF:\IIIHITI~
POINT OF 1)F1lvTRY Pr\RTIIS' INTFR(ONNI:CTIUN 1,\ClLlTII.'S
The Scliwi~ndiin¡in Wind Power Project IS located ariprixliiati'lv II niiles nortlieast of Idaho Falls
Idalio. rhe project coiisisb of several wind tiibii ie generators, connected to a 14.4 k V
distriblllh)n syslCIl. I;,ieh geni'cator IS connected to the distribution circiiii via ¡I pad-inount
¡ranslìinllcr ¡II the h;lSi' of each iower i\ single. .'-phasc. (il) 144 k \" IS'W'2:i \IV:\ tr¡iiislìiriier
IS uscd \(1 step lip ¡he voli:igc 01' the proJcci 106') kV i\ -I mile, 4ill.'CSR "Pengnin" Ci'l kV
i:ondiictor Iransmission Imc will conncetthc projed to the: Pacifi( .orp 31.-1 iiile, Sligar
MilHìoshe:n Rigby 69 kV line. The Poini of Interconnection will be lueated about 3 miles soiith
ol'ihe Licon substation lap and three miles north otthc Sandcreek suhstation iap. Sehivendiiian
will (l\n ihi' 4 miIc (i() kV line to thc Point of Interconncction.
Hi-dircctional reveniie metering will be installed at the wind plant end orthe 69 kY line, The
mdering \vill usc CIs and revenue class mcters. The mcter readings will he adjusted for losscs
hack to ihe I\iint 01' Interconnection.
The i~)ii()wing map shmvs a general turbine array Layout with the Substation location also
indicated. The mctering point shall he at the substation. The site will be adjusted to
accommodate twenty turbines under the latest conliguration.
*This Exhibit B replaces the prior Exhibit B in its entirely.-:.2 ;,
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(l¡¡;'¡11\1ì;' i.,ICi!i \111'Ihcl "¡'lin ITRC:()I"I).:.!\I).I,i, \
The !()i iD'X!1!, I)ouiinc:iih iire n:quired 10 ('(ìmp lete i hi,; proìccl:
1.:aSCI1K',llS:
Wind r:;irm Fa,,clIcilil j)ncuiiiciii from properly Owner
I'crmiis:
Conditional Use Pennit tì.oni Bonneville County for Commercial Wind Fann
Bonneville County Building Pennits for Foundations
State Electrical Pem1its for Turbines and Substation
(' I
Schwendiman Wind Power Project
EXHIBIT D*
CAPACITY FACTOR SCHEDULES
Schwendiman Wind Farm Averaged Energy Production Estimate, 20MW
Nameplate Capacity, Nordic Wind Turbines
Estimated Generation,Monthly NET Capacity
Month kWh Ave MW/mo Factor
January 4915693.4 6.61 33.0%
February 3610268.9 5.37 26.9%
March 5989054.7 8.05 40.2%
April 5307957.7 7.37 36.9%
May 5320198.3 7.15 35.8%
June 4597813.2 6.39 31.9%
July 4007853.2 5.39 26.9%
August 4244318.7 5.70 28.5%
September 3567259.2 4.95 24.8%
October 3789624.4 5.09 25.5%
November 4556966.4 6.33 31.6%
December 4016267.4 5.40 27.0%
TOTAL 53923275.7 6.16 30.8%
Scheduled Maintenance- Seller will provide a suggested maintenance schedule annually
not to exceed i 50 hours per turbine per year.
*This Exhibit D replaces the prior Exhibit D in its entirety.~jQi îÇ
D- i
Sch\\,('I';I,liii¡;r1 \l, 'l¡(: 1;;..¡" i"j"!'l:_'Ll
j'".\¡ í H 1'1' i'
SI\I~T!;D li.:STI,\(:
R(-q;IIJ\'d ~\('r(J!" ::..:-~,iJ¡;. incj¡idë's .'1ìlch Ch~~i~k~;nìtÌ i(~Si-"S i,CCC),;':'ll:., rI'-) d(;IC1Tnii)(' ;!ì;it ihi.~
;,oqlii¡iiJ¡Clil Sy:,klllS ;!ld s:lhs'..q,'llS :i;i\.c' belL'1i pi'opcrly n:anUI';¡Cliiret! ;lit! Ilhulled, lunciiül1
property. iiii'. :ire: iil ;i.:iindi!inn to ;kTlnit sale' and cl':iciciil,;I:irt.l;p ')I.ll1e ¡:;IC!l!tV.. ;",hie!: mii'.
iiich.!:: btli :!I.(' 1\1',1 j¡¡yii,:d !(,:
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ii.
l,'';i nÎ r~h.:~',:L:!n:c~il ;,ind '.:kci.rical \:ql.ipnlt'ni'
(.:iIiDlJIl'1!l "f ,'Iii 11i()nli()ril1:~ i:i,¡ninicnh:
()~')cr~ll)n"~ '~l.S~S (ìi' :dl \';ilvi,'~, 0pt'rainr';;. inninl" ~;ial:(~r~ ;ir.d llìOi,('lr,
,\Iarms. ,;ipnals ¡i:id fad-safe or ,;~,.,1c1l "huidown CO'lIll! :ól~:
lOIlI-Il.poiili e,mi ¡nui,y töts;
Bcnch tesis ()f proiec:iiw devices; and
Ceqs rC'!lii:'cd hy ni:lll1l¡;.:tlircr of cquipmeni
Required siart-up tcsts arc ¡hose checKs and tests necessary 10 dc(cnnillC ihat ail lcatilrL:s
and equipment, systems, and subsystcms have been properly insialkd and adjusted, function
properly, ¡lnL! ,ire c,ip;ihlc oi' operating siiiiiliane:oiisly in such condiiion thaiihc Facility is
capablc ofconiinuous delivery into PacifiCoiv's electrical system. \vhich may include but arc
not limited to:
i. furhine/generator mcchanical runs and functionality;
2. System operation tcsis;
3. Brake tests;
4. Energization of lransfonnels;
5. Synchronizing tests (manual and auto);
G. Excitation and voltage regulation operation tests;
7. Auto stop/start sequence;
8. Completion of any state and federal environmental testing requirements.
(). Tesis required hy manu faeturt:r of equipment;
The following Wind Turhine Generator Installation Check Lists are required documents to he
signed offby Manufacturer or Subcontract Category Commissioning Personnel as part otthe
Commissioning and stai1up testing:
Turbine lnsiallatÎon
Foundation Inspeci ion
Controller Assembly
Power Cables
Cable Installatioii Check Lists including:Controller
Top Deck I Yaw Deck
Tower Top Section / Saddle
Mid Section Cables or buss bars
Base Section
Tower Base Section
Tower Lights and Outlets
Tower Mid Section
Tower Top Section
Nacelle
Rotor
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\\î"!!i SPiT!l ill! \ SI\lk1.\!!j1:S
I11L' ii¡Jll\\\ing h ;.'\C:_'1"piCd ""rO;\) iih.:: ll'llj~lj ;1ii:i..:ill¡\iU~i,i:~.i !',..port j~,')r dil' ¡~r(ji(":.t
j iI'' 'ììl":-I!¡: !)ld lti',\,'1 \0 lH ¡;tli. ~ind \",';J:1llbULcJ till chi i:lfL.:uih;:r ,:IJl.: ¡i~; I:U\H1dt" 1\'\':(1",:.,.1 rt'(;'~i:.Tll:f~ ILtiLinìì
';)...: ~.í)'\\_ j;in.~ii;¡l;,' ¡ 1) )(\~:~iJ\V_ ~ii~d ,,:'1i'\,:)i:i)l) ':i\;.q 1'1 li'i;~i ;0\'.\':' .;ih :!iOP ,j kn\jil. r':1:,"!i' .i;-~'
Irli.~J))('Jlit'I!_'r~ ~ll ih,' .~O..nì. ,~l)~l1~ Jnd .~í)-in :..~\í.b, \:.:iih ih~.' .in rì1 1::"';"1 :):.~ing .1 :;.ltih ¡U;:t\L I!h,'r.~ :ìl\': diila ¡hl'(IU:1h
,";''PL:il1l',,~r .:iin~. \\-\: 11:1'.:C ;i1so :~1.,'Ii.kd di.\I~1 ~'n)¡n t1h:: l',.\:in I~;,!lh .iiq)or¡;h;ì ~)II'i\'isli)ll;li "l~f,:r~'lli,~t~ :!Ièiiinl1i~:~er
¡lll,,' :,,'l)!f;:bli:,\ì1 ,-~li\.:nici(.n: ì-= 11tH ih:n ~~Ji.ai (ÎI.,r~ ¡òr d~)Jh' ','. Illd'~. i) lnr Ilkl!;íhl~;;\\!ind:-L hiii It d-il.s i:dp:1 ¡¡I;!c.' to
'iLll:: ¡1tt:. :\\t) :,,:';:;11':' 0:' t):,-:.ii~' ;,LiL': in ~l ~~r;.,.:'lL'i Clill);ltiiloy,ji:~l i l:oIH":,",:.
l-nr th: ,L;'111011lh p..~lll)(1. 1'1(' average- wind speed:H tilt 20-n1 and .~O"rn kvd.) i)r ih~~ Si:h\vt~lldinian tnWt'f \\TI"i' i(),t.~
"wi i (,.'J. I1ph. :-especiivl'y. lhe ,,0-11 jcv,~i .hl; :iPpl':\'; '" have:. Ii,'en ,:oinpiùiiisòd ait-r 3 lièw 1l011hs, as 11
'ypJ':dly rim,; k" ih:in ih,; .~O-ni kvd 'inlikcly 10 h" ,,:al. Thc'lC:I(W".. Wl? h;iw compleicly i~nord ¡he ~O-in Chi:i in
l)1J1' JIl;:IYs~':' hckiw
Monthly Mean Wind Speeds (mph)
SchlNendirnan Tower, Idaho
NREL Calibration Constants
MostlyTwin Invalid
Month Year Falls 20-m 30-m 40-m
~='~-No~==~--20c-"~~--i"O~O=="~o='17.7'~==-18~Õ==~~, 18.8Dec 2001 10.2 13.8 14.4 14.6Jan 2002 .------~iO_:1--15.3 159 15.6Feb 2002 10.4 14.3 14.8 15.2Mar 2002 12.3 20.1 209 20.7
-----Ap,:--- 2002 12.1 -------2o.T---- 21.Õ-----21.0 '---May 2002 12.1 19.8 205 20.3JUIl 2002 10.3 170 17.3 17.4
JuI2002--------~---.- 17--4---17.9----18.0 ----
Aug 2002 105 13 3 13.4 13.4Sep 2002 9.9 144 14814ß
Oct 2002 ----9:9-------13.7-----1"4.,-----13.8Nov 2002 9.5 '? 11 '?A '2 è
Dec 2002 10.1 15.4 16_1 16.5
Jan 2003 7.5 13.5 14.0 14.1Feb 2003 118 1613 1/ 3 11 3
Mar 2003 13.2 23.6 247 24.5
--':Ar"---' --'''---2003" ...."--"--1~O-....~ ..........-l':rã---..- t8~'5-""-'" .--'--~~-May 2003 9.8 ;., i) : ?jJun 200311.2 16.8 1"3 15.8
....----.Jul .'--. _...-- 2003.--M-~-9:7-...---..-"---.-1~'5..-- . --"-15jf"'-". ".-14.8-" -_.Aug 2003 9.8167 170 .15.5
'=0__ Se2._~._ 2003 11_1 154 158 151Overall 10.56 1-6.43 16.05 ~==
Data Recovery Key: black = 90-100°1..; çireen = "15-90%; blue = 50-75%;
orange = 25-50%; purple = 10-25%; "x" = 0-10% All values represent the
estimate for the full month when data recovery is less than 100%.
I" 1- 1
EXHIBIT F-2*
ENGINEER'S CERTIFICATION
(1) THAT THE FACILITY AVERAGE NET ENERGY ESTIMATE IS 53,923,276 KWH PER
YEAR IN EACH FULL CALENDAR YEAR OF THIS AGREEMENT;
Wind data has been collected on and near the Schwendiman wind farm site since the year 2001.
Correlation and other wind data analysis has been performed on all of the available wind data,
resulting in a long-term annual average wind speed estimate of 17.4 mph at 40 meters AGL at
the Schwendiman 40 meter wind data tower location. The frequency distribution of the wind
data closely follows a Rayleigh distribution, and the calculated wind shear estimate for the site is
0.09. Using these figures, wind data and the wind turbine manufacturer's power curve for the
average air density of the site (1.02 kg/m\ annual gross energy production estimates were
performed for the 40 meter data tower site. For a Nordic wind hirbine (59 meter rotor, 60 meter
hub height) at the 40 meter data tower location, the gross capacity factor estimate is 35. i 2%.
Adjusting for the other locations in the proposed wind farm array, the overall wind fann gross
capacity factor estimate is 34.19% for the Nordic wind turbines. Gross to net losses are
calculated at a total of 10%, including array and control losses, electrical distribution losses,
icing, turbine availability, etc., which results in an overall wind fami net capacity factor estimate
of 30.8% for the Nordic wind turbines. Without adjustment of the net wind fami energy
production estimate for monthly variability from year to year, the average annual net energy
production for this wind farm (20 MW of Nordic wind turbines) is estimated at 53,923,276 kWh.
Actual delivery over time will vary from this number according to the natural wind resource
variations in any given year.
(2) THAT THE FACILITY, UNDER AVERAGE DESIGN CONDITIONS, LIKELY WILL
GENERA TE NO MORE THAN i 0 aMW IN ANY CALENDAR MONTH.
In all of the wind data collected at Schwendiman's and other area anemometer towers, the
highest monthly wind speed average recorded since 2001 was approximately 23.3 mph. Using
this average and data for that month, the calculated wind farm gross capacity factor for the
Schwendiman wind farm site would have been 47.3%, and net capacity factor for that month
would have been approximately 42.6% for the Nordic wind turbines. This would result in a
monthly average power generation level of 8.52 aMW for Nordic turbines for that particular
wind month, the highest monthly average recorded in the last seven years.
Therefore, under average design conditions with existing data, this project wil likely generate no
more than 10aMW in any calendar month.
This engineering certificatìon has been prepared by Idaho Professional Engineer Kurt S. Myers,
PE, 4001 S. Pine Needle Cir., Idaho Falls, Idaho 83404, and is based on a detailed analysis of the
site data and intended generation equipment.
1WJ~
IDAHO PE#12048, Dated: September 19,2007
*This Exhibit F2 replaces the prior Exhibit F2 in its entirety. ~h~ ~