Loading...
HomeMy WebLinkAbout20061205Application.pdf~ ~;oo ~OUNTAIN Idaho Public Utilities Commission 472 West Washington Boise, ID 83702-5983 RECEIVED 26Gb DEC -5 ~M \0: IDAHO PUBLIC ,:, UTILITIES COMMISSI(,." 201 South Main, Suite 2300 Salt lake City, Utah 84111 December 5 , 2006 AC-E- -Ob" Attention:Jean D. Jewell Commission Secretary Re:In the Matter of the Application ofPacifiCorp Requesting Approval of an Irrigation Load Control Dispatch Pilot Program Advice Letter No. 06- Schedule 72A - Irrigation Load Control Credit Rider Dispatch Pilot PacifiCorp (d.a. Rocky Mountain Power) hereby submits for filing an original and seven copies of its Application of PacifiCorp Requesting Approval of an Irrigation Load Control Dispatch Pilot Program and the proposed tariff pages in legislative and regular formats associated with Tariff LP.C. No. 1. The Company respectfully requests an effective date of February 1 2007. Second Revision Sheet No. B.2 Original Sheet No. 72A.1 Original Sheet No. 72A.4 Schedule 72A Tariff Index Irrigation Load Control Credit Rider Dispatch Pilot Irrigation Load Control Credit Rider Dispatch Pilot Irrigation Load Control Credit Rider Dispatch Pilot Irrigation Load Control Credit Rider Dispatch Pilot Schedule 72A Original Sheet No. 72A.2 Schedule 72A Original Sheet No. 72A.3 Schedule 72A Service of pleadings, exhibits, orders and other documents relating to this proceeding should be served on the following: Brian Dickman Manager, Idaho Regulatory Affairs Rocky Mountain Power 201 South Main, Suite 2300 Salt Lake City, UT 84111 brian. dickman~pacificorp. com Dean Brockbank Senior Attorney Rocky Mountain Power 201 South Main Street, Suite 2300 Salt Lake City, Utah 84111 dean. brockbank~pacificorp.com It is respectfully requested that all formal correspondence and Staff requests regarding this material be addressed to: Bye-mail (preferred):datarequest~pacifi corp. com By regular mail:Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, Oregon, 97232 By fax:(503) 813-6060 Sincerely, (d/1 D. Douglas Larson Vice President, Regulation Enclosures Copies to: Eric Olsen Dean Brockbank Rocky Mountain Power 201 South Main Street, Suite 2300 Salt Lake City, Utah 84111 Telephone: (801) 220-4568 FAX: (801) 220-3299 Dean. Brockbank~Pacifi Corp. com fcn HECE\\J t...\J l~~o DEe - S ~~ \0: 52. 'LIe (.UbUQ \OF\~ \:J"1\55\ I\cc: ' \111' U\ \ \1.~ Attorney for Rocky Mountain Power BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION)OF ROCKY MOUNTAIN POWER REQUESTING APPROVAL OF IRRIGATION LOAD CONTROL DISPATCH PILOT PROGRAM CASE NO. P AC-- , a... APPLICATION Pursuant to Procedural Rule 52, Rocky Mountain Power , a division of PacifiCorp, Rocky Mountain Power " or the "Company ) hereby applies to the Idaho Public Utilities Commission ("IPUC" or the "Commission ) for authority to implement Electric Service Schedule No. 72A - Irrigation Load Control Credit Rider Dispatch Pilot. In support of this Application, Rocky Mountain Power states as follows: Rocky Mountain Power is an electrical corporation and public utility in the state of Idaho and is subject to the jurisdiction of the Commission with regard to its public utility operations. Rocky Mountain Power also provides retail electricity service in the states of Utah and Wyoming. Communications regarding this Application should be addressed to: Brian Dickman Manager, Idaho Regulatory Affairs Rocky Mountain Power 201 South Main Street, Suite 2300 Salt Lake City, UT 84111 Brian.Dickman~Pacifi Corp. com APPLICA nON OF P ACIFICORP Dean Brockbank Senior Counsel Rocky Mountain Power 201 South Main Street, Suite 2300 Salt Lake City, Utah 84111 Dean.Brockbank~Pacifi Corp. com In addition Rocky Mountain Power respectfully requests that all formal correspondence and Staff requests regarding this material be addressed to: datarequest(li)pacificorp. com Data Request Response Center Rocky Mountain Power 825 NE Multnomah, Suite 2000 Portland, OR 97232 Pursuant to the stipulation reached between PacifiCorp and the Idaho Irrigation Pumpers Association ("lIP A") on May 24, 2006 (Case No. PAC-06-04), the Company agreed to meet with lIP A in an effort to evaluate the Irrigation Load Control Program. November 9, 2006 and November 20, 2006, Rocky Mountain Power representatives met with representatives of lIP A and the irrigation customer class to present its proposed pilot program and control technology, soliciting comments and suggestions from the prospective participants. Rocky Mountain Power also presented elements of the proposed pilot program, including the control technology, to the Commission staff on October 11 , 2006.Each meeting was productive , yielding many comments from the representatives of the irrigation customer class as well as the Commission staff, and Rocky Mountain Power has incorporated those comments into the proposed tariff in this Application. Similar to Rocky Mountain Power s existing Irrigation Load Control Rider program (Schedule No. 72), under the proposed pilot program participating customers will APPLICATION OF PACIFICORP receive credit from the Company in exchange for the ability of the Company to interrupt service at designated pump sites during the 2007 irrigation season. Such service interruptions will be dispatched at the Company s discretion, rather than on a scheduled basis , and the Company will credit the bills of participating customers at the conclusion of the 2007 irrigation season. The required control technology will be provided by the Company and will allow for remote dispatch of participating sites by way of a central network server owned by M2M Communications and maintained in Boise , Idaho. The control devices will communicate with the network server via integrated cell phone or satellite technology, based on availability at the pump site. In addition, the network server will communicate with customers using either cell phone or e-mail technology, alerting customers of impending dispatch events and any status changes at the controlled site. The proposed control technology is already widely-used to manage irrigation operations , and the basic device provided by the Company may be upgraded to include additional irrigation management functionality at the customer s option and expense. In an attempt to manage the implementation of what Rocky Mountain Power hopes will be a successful long-term program, this Application seeks approval of a pilot program with limited participation during the 2007 irrigation season only. The availability of the program will be on a first-come, first-served basis , up to a total participation of 45 MW. In addition, prospective participants will be required to meet certain criteria as detailed in the attached tariff, including a minimum aggregate demand of 1 MW. At the conclusion of the 2007 irrigation season, the Company will evaluate the pilot program and will again seek input from participants and the Commission staff regarding additional elements required for successful long-term program. APPLICA TION OF P ACIFICORP As a result of the discussions with lIP A and irrigation customers the Company is proposing dispatch conditions as detailed in the attached tariff. Specifically, total curtailment per participating customer will be limited to 65 hours during the irrigation season, with dispatch events occurring between the hours of 2:00 PM to 8:00 PM, Monday through Friday. Participants will also have the ability to opt-out of individual dispatch events , up to a limit of 5 occurrences during the irrigation season. If a participant opts-out of a dispatch event more than twice during the 2007 irrigation season, the credit paid to the participant by the Company will be reduced by the replacement cost of the energy during the dispatch event. Rocky Mountain Power proposes to treat the costs of the 2007 Irrigation Load Control Credit Rider Dispatch Pilot program similar to those of the existing Irrigation Load Control Credit Rider Program. Besides the incentive credits paid to individual customers, the benefits of the pilot program are captured for customers through the calculation of the Idaho revenue requirement by virtue of reduced electricity use due to load curtailment and a corresponding reduction in the proportion of costs allocated to customers in Idaho. Recovery of specific program costs would be subject to Commission approval as reviewed by the Commission in the Company s annual DSM report or in a future general rate case. Rocky Mountain Power does not believe that a hearing will be necessary regarding this Application and respectfully requests that this Application be processed according to Modified Procedure.Should the Commission approve implementation of the proposed pilot program, an order prior to February 1 , 2007 would allow sufficient time for communication of program details to prospective participants. WHEREFORE, Rocky Mountain Power respectfully requests that the Commission issue an order authorizing the Company to implement Electric Service Schedule No. 72A - Irrigation APPLICATION OF PACIFICORP Load Control Credit Rider Dispatch Pilot as described in this Application. Respectfully submitted this 5th day of December, 2006. !)M~ Dean Brockbank Attorney for Rocky Mountain ower APPLICATION OF P ACIFICORP ~ ~~~~o ~OUNT AIN c. No. First Revision of Sheet No. B. Canceling Original Sheet No. B. Schedule No. 23A 35A 72A 115 117 118 120 122 ELECTRIC SERVICE SCHEDULES - Continued Class of Service Sheet No. General Service - Small Power 23.1 - 23.3 General Service - Small Power (Residential and Farm)23A.1 - 23AA Interruptible Power Service 24.1 - 24. Pacific Northwest Electric Power Planning and Conservation Act- Residential and Farm Kilowatt-Hour Credit 34.1 - 34.16 Optional Time-of-Day General Service - Distribution Voltage 35.1 - 35.3 Optional Time-of-Day General Service - Distribution Voltage (Farm)35A.l -35AA Optional Time of Day Residential Service 36.1 - 36.3 New Wind, Geothermal and Solar Power Rider - Optional 70.1 - 70. Energy Exchange Pilot Program 71.1 - 71.6 Irrigation Load Control Credit Rider 72.1 - 72. Irrigation Load Control Credit Rider Dispatch Pilot 72A.l - 72AA New Wind, Geothermal and Solar Power Rider - Bulk Purchase Option 73.1 - 73. Rate Mitigation Adjustment Commercial and Industrial Energy Efficiency Incentives Optional for Qualifying Customers 115.1 -115.10 Residential Refrigerator Recycling Program 117.1 - 117.2 Home Energy Saver Incentive Program 118.1 - 118.2 Commercial Energy Services - Optional to Qualifying Customers 120.1 - 120. Commercial Energy Services - Optional to Qualifying Customers 122.1 - 122.5 (Continued) Submitted Under Advice Letter No. 06- ISSUED: December 5, 2006 EFFECTIVE: February 1 2007 c. No.Original Sheet No. 72A. ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 72A STATE OF IDAHO Irrigation Load Control Credit Rider Dispatch Pilot PURPOSE: This optional tariff allows Customers to participate in a dispatchable control service interruption pilot program in exchange for a Load Control Service Credit (LCSC). Customers participating in the 2007 pilot program will be considered participants in the Irrigation Load Control Credit Rider program. PARTICIPTION LIMITATIONS: Participation in the dispatchable control pilot program will be limited to customers on a first-come first-served basis, up to a total participation of 45 MW. APPLICABLE: To qualifying Customers served on Schedule 10 and who meet the following participation criteria: (a) an aggregate minimum of IMW (1,500 Hp) demand under their control (single account or multiple accounts) for either or both of July or August (b) an integrated pump / pivot irrigation system ( c) a minimum pump size of 100 Hp (d) continuous access to the Internet from May 1 through September 15 In addition to the applicability requirements, Schedule 10 Customers participating in the pilot program must: (a) use advanced 2-way remote control equipment as specified by the Company to manage all pumping requirements throughout the Company defined Irrigation Season (June 1 through September 15) (b) participate in training to set up their pump sites for dispatch (c) agree to complete all questionnaires related to this pilot program and to participate in researcher interviews or focus groups related to pilot design and equipment configurations (d) incur air time communication charges for communication transactions greater than 70 per month (Continued) Submitted Under P AC-06- ISSUED: December 5 2006 EFFECTIVE: February 1 2007 ~ ~~~~o ~OUNT AIN C. No.Original Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued IRRIGATION SEASON: This rider is applicable only during the Irrigation Season from June 1 to September 15 2007. LOAD CONTROL SERVICE CREDIT: The LCSC shall be applied to the participant's October cyclical billing. The LCSC shall be applied in addition to the Customer s other October electric service charges. The LCSC is composed of (1) a Fixed Annual Participation Credit that shall remain fixed throughout the irrigation season each year and (2) the proportionate share of any additional credit given to all Irrigation Load Control Credit Rider program participants by means of settlement and as approved by the Commission. The LCSC shall be computed at the conclusion of the Irrigation Season by multiplying the Fixed Annual Participation Credit times the Load Control kW. The Fixed Annual Participation Credit for 2007 is $11.18/kW year. SCHEDULE: Notification of Credit: The Company will provide notification of the total LCSC to all eligible Schedule 10 customers by February 15 2007. Load Control Service Agreement: Concurrent with the Notification of Credit referenced above the Company will provide a Load Control Service Agreement (LCSA) listing the amount of the credit the Customer will receive for the irrigation season if they elect to participate in the program. Customers desiring to participate in this load control pilot program shall sign the LCSA and return it to the Company by February 15 2007 to indicate their participation. DISPATCH CONDITIONS: The Company shall have the right to implement a Dispatch Event for participating customers according to the following criteria: (a) Available Dispatch Hours: 2:00 PM to 8:00 PM Mountain Daylight Savings Time (b) Maximum Dispatch Hours: 65 hours per Irrigation Season (c) Dispatch Duration: Not more than three and one-half hours per Dispatch Event (d) Dispatch Event Frequency: limited to a single (1) Dispatch Event per day (e) Dispatch Days: Monday through Friday (inclusive) (f) Dispatch Day Exclusions: July 4 and July 24 LOAD CONTROL SERVICE AGREEMENT: The Customer and Company will execute an agreement for irrigation load control pilot participation. The agreement shall specify the Load Control kW amount that each of the Customer s sites shall curtail during each Dispatch Event. The agreement will also include typical costs that the Customer may incur for Early Termination. Participating Customers shall sign a written agreement for the 2007 Irrigation Season. (Continued) Submitted Under PAC-06- ISSUED: December 5, 2006 EFFECTIVE: February 1 2007 ~ ~Yt~~, ~OUNTAIN C. No.Original Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued SPECIAL CONDITIONS: Load Control kW: The Load Control kW amount for the 2007 Irrigation Season shall be the average of the past (3) years (or as available history) kW demand for each month of the June 1 through September 15 period. tariff. Outages: Uncontrolled outages or other types of interruptions do not qualify for payment under the Ownership of Control Equipment: The load control equipment remains the property of the Company. Customers may, at their discretion, purchase complementary control components that can work with the Company s foundational control units. To the extent possible, the Company will cooperate and work with local equipment distributors in facilitating such additional equipment. Communication: The Company will pay the cost of air time communication for up to 70 transactions per month. Additional Customer communication with irrigation control equipment is permitted. The cost of such transactions will be the Customer s responsibility but will be managed through the Company (Note: Customer air time communication costs, if any, will be calculated as a reduction to the LCSC). Liquidated Damages: Customers are permitted to 'opt-out' of two Dispatch Events without penalty during the Irrigation Season. Customers will have the ability to 'opt-out' of three additional Dispatch Events throughout the irrigation season. Each of these additional 'opt-out' events will incur a cost resulting in a reduction to the Customer s LCSC. The costs will be calculated based on the $/MWh the Company otherwise has to pay for power at the time of the Dispatch Event. Such $/MWh prices will be provided by the Company s Commercial & Trading organization and will be based on established Four Corners and Palo Verde trading hubs and the prices actually paid by the Company. 'Opt-outs ' will be computed at the conclusion of the irrigation season and will be included as a reduction to the LCSC payment issued on the Customer s October invoice. 'Opt-outs ' beyond those identified above are not permitted. Violation of the Liquidated Damages provision shall result in Early Termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the pilot program for the remainder of the Irrigation Season. Liability: The Company is not responsible for any consequences to the participating Customer that result from a load control Dispatch Event or the failure of load control equipment. Use of Load Control Equipment: The Customer shall be required to exclusively use the 2-way load control equipment to manage their irrigation equipment through the duration of the Irrigation Season. (Continued) Submitted Under PAC-06- ISSUED: December 5, 2006 EFFECTIVE: February 1 2007 ROCKY MOUNTAIN POWER A DIVISION OF PACIFICORP C. No.Original Sheet No. 72A.4 ELECTRIC SERVICE SCHEDULE NO. 72A - Continued Load Shifting: Customers participating in this pilot program may not shift irrigation loads to other facilities served by the Company or purchase replacement production from another facility served by the Company. The Company reserves the right to determine if the participating customer site is in violation of Special Condition-Load Shifting. Violation of the Load Shifting provision shall result in Early Termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the pilot program for the remainder of the Irrigation Season. Control Equipment Damage / Sabotage: The Company reserves the right to determine if load control devices were intentionally damaged and/or bypassed to limit load control. Violation of this clause shall result in early termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the pilot program for the remainder of the Irrigation Season. Early Termination: Given the nature ofthis pilot program during the 2007 Irrigation Season, if program equipment or structure cause significant hardship on participating crops, the Company will work with the Customer to accommodate removal from the program. In this case, the Customer would not be held responsible for reimbursing the Company for costs associated with participation in the program. If the Customer is terminated from the pilot program per the terms of Special Conditions Load Shifting, Control Equipment Damage / Sabotage, or Free Riders the Customer shall be responsible for reimbursing the Company for costs associated with participation in the program. Such costs include, but are not limited to, direct and indirect labor costs associated with enrolling the Customer in the program, labor costs for installing the equipment, labor to investigate intentional damage to load control devices, removing the Customer from the program, and will not include costs for replacement power. Customers required to pay costs associated with early termination under terms of this Special Condition will be provided with a statement detailing such costs. Free Riders: Customers may not participate in this program with accounts and meters that would not have used power during the Irrigation Season irrespective of participation in the program. The Company reserves the right to determine if the participating customer is in violation of the Special Condition-Free Riders. Violation of Special Condition-Free Riders shall result in Early Termination, forfeiture ofthe LCSC, and removal from the program for the remainder of the 2007 Irrigation Season. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Idaho Public Utilities Commission, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Submitted Under PAC-06- ISSUED: December 5 , 2006 EFFECTIVE: February 1 2007 ~~~~o~OUNTAIN C. No. Schedule No. 23A 35A 72A 115 117 118 120 122 First Revision of Sheet No. B. Cancelin Original Sheet No. B. ELECTRIC SERVICE SCHEDULES - Continued Class of Service Sheet No. General Service - Small Power 23.1 - 23.3 General Service - Small Power (Residential and Farm)23A.l - 23AA Interruptible Power Service 24.1 - 24. Pacific Northwest Electric Power Planning and Conservation Act- Residential and Farm Kilowatt-Hour Credit 34.1 - 34. Optional Time-of-Day General Service - Distribution Voltage 35.1 - 35.3 Optional Time-of-Day General Service - Distribution Voltage (Farm)35A.l -35AA Optional Time of Day Residential Service 36.1 - 36.3 New Wind, Geothermal and Solar Power Rider - Optional 70.1 - 70.2 Energy Exchange Pilot Program 71.1 - 71.6 Irrigation Load Control Credit Rider 72.1 - 72. Irrigation Load Control Credit Rider Dispatch Pilot 72A.l - 72AA New Wind, Geothermal and Solar Power Rider - Bulk Purchase Option 73.1 - 73. Rate Mitigation Adjustment Commercial and Industrial Energy Efficiency Incentives Optional for Qualifying Customers 115.1 - 115. Residential Refrigerator Recycling Program 117.1 - 117. Home Energy Saver Incentive Program 118.1 -118. Commercial Energy Services - Optional to Qualifying Customers 120.1 - 120. Commercial Energy Services - Optional to Qualifying Customers 122.1 - 122. (Continued) Submitted Under Advice Letter No. 06-026 ISSUED: ugust 11 , 20015December 5, 2006 EFFECTIVE: September 15 , 2006February 1,2007 ~ ~~~o ~OUNTAIN C. No.Original Sheet No. 72A. ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 72A STATE OF IDAHO Irrie:ation Load Control Credit Rider Dispatch Pilot PURPOSE: This optional tariff allows Customers to participate in a dispatchable control service interruption pilot program in exchange for a Load Control Service Credit (LCSC). Customers participating in the 2007 pilot program will be considered participants in the Irrigation Load Control Credit Rider program. PARTICIPTION LIMITATIONS: Participation in the dispatchable control pilot program will be limited to customers on a first-come first-served basis, up to a total participation of 45 MW. APPLICABLE: To qualifying Customers served on Schedule 10 and who meet the following participation criteria: (a) an aggregate minimum of IMW (1,500 Hp) demand under their control (single account or multiple accounts) for either or both of July or August (b) an integrated pump / pivot irrigation system (c) a minimum pump size of 100 Hp (d) continuous access to the Internet from May 1 through September 15 In addition to the applicability requirements, Schedule 10 Customers participating in the pilot program must: (a) use advanced 2-way remote control equipment as specified by the Company to manage all pumping requirements throughout the Company defined Irrigation Season (June 1 through September 15) (b) participate in training to set up their pump sites for dispatch (c) agree to complete all questionnaires related to this pilot program and to participate in researcher interviews or focus groups related to pilot design and equipment configurations (d) incur air time communication charges for communication transactions greater than 70 per month (Continued) Submitted Under P AC-06- ISSUED: December 5, 2006 EFFECTIVE: February 1 2007 ~ ~~~o ~OUNTAIN C. No.Original Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued IRRIGATION SEASON: This rider is applicable on Iv during the Irrigation Season from June I to September 15,2007. LOAD CONTROL SERVICE CREDIT: The LCSC shall be applied to the participant's October cyclical billing. The LCSC shall be applied in addition to the Customer s other October electric service charges. The LCSC is composed of (1) a Fixed Annual Participation Credit that shall remain fixed throughout the irrigation season each year and (2) the proportionate share of any additional credit given to all Irrigation Load Control Credit Rider program participants by means of settlement and as approved by the Commission. The LCSC shall be computed at the conclusion of the Irrigation Season by multiplying the Fixed Annual Participation Credit times the Load Control kW. The Fixed Annual Participation Credit for 2007 is $11.18/kW year. SCHEDULE: Notification of Credit: The Company will provide notification of the total LCSC to all eligible Schedule 10 customers by February 15,2007. Load Control Service Ae:reement: Concurrent with the Notification of Credit referenced above, the Company will provide a Load Control Service Agreement (LCSA) listing the amount ofthe credit the Customer will receive for the irrigation season if they elect to participate in the program. Customers desiring to participate in this load control pilot program shall sign the LCSA and return it to the Company by February 15,2007 to indicate their participation. DISPATCH CONDITIONS: The Companv shall have the right to implement a Dispatch Event for participating customers according to the following criteria: (a) Available Dispatch Hours: 2:00 PM to 8:00 PM Mountain Davlight Savings Time (b) Maximum Dispatch Hours: 65 hours per Irrigation Season (c) Dispatch Duration: Not more than three and one-half hours per Dispatch Event (d) Dispatch Event Frequency: limited to a single (1) Dispatch Event per day (e) Dispatch Days: Monday through Friday (inclusive) (f) Dispatch Day Exclusions: July 4 and July 24 LOAD CONTROL SERVICE AGREEMENT: The Customer and Companv will execute an agreement for irrigation load control pilot participation. The agreement shall specify the Load Control kW amount that each of the Customer s sites shall curtail during each Dispatch Event. The agreement will also include typical costs that the Customer may incur for Early Termination. Participating Customers shall sign a written agreement for the 2007 Irrigation Season. (Continued) Submitted Under P AC-06- ISSUED: December 5 , 2006 EFFECTIVE: February 1 2007 ~ ~~;ro ~OUNTAIN C. No.Original Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued SPECIAL CONDITIONS: Load Control kW: The Load Control kW amount for the 2007 Irrigation Season shall be the average of the past (3) years (or as available history) kW demand for each month of the June I through September 15 period. Outages: Uncontrolled outages or other types of interruptions do not qualifY for payment under the tariff. Ownership of Control Equipment: The load control equipment remains the provertv of the Company. Customers may, at their discretion, purchase complementary control components that can work with the Company s foundational control units. To the extent possible, the Company will cooperate and work with local equipment distributors in facilitating such additional equipment. Communication: The Companv will pay the cost of air time communication for up to 70 transactions per month. Additional Customer communication with irrigation control equipment is permitted. The cost of such transactions will be the Customer s responsibility but will be managed through the Company (Note: Customer air time communication costs, if any, will be calculated as a reduction to the LCSC). Liquidated Damages: Customers are permitted to 'opt-out' of two Dispatch Events without penalty during the Irrigation Season. Customers will have the ability to 'opt-out' of three additional Dispatch Events throughout the irrigation season. Each ofthese additional 'opt-out' events will incur a cost resulting in a reduction to the Customer s LCSC. The costs will be calculated based on the $/MWh the Company otherwise has to pay for power at the time of the Dispatch Event. Such $/MWh prices will be provided by the Company s Commercial & Trading organization and will be based on established Four Corners and Palo Verde trading hubs and the prices actually paid bv the Company. 'Opt-outs ' will be computed at the conclusion of the irrigation season and will be included as a reduction to the LCSC payment issued on the Customer s October invoice. 'Opt-outs ' beyond those identified above are not permitted. Violation ofthe Liquidated Damages provision shall result in Early Termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSc. and removal from the pilot program for the remainder ofthe Irrigation Season. Liability: The Company is not responsible for any consequences to the participating Customer that result from a load control Dispatch Event or the failure of load control equipment. Use of Load Control Equipment: The Customer shall be required to exclusive Iv use the 2-wav load control equipment to manage their irrigation equipment through the duration of the Irrigation Season. (Continued) Submitted Under PAC-06- ISSUED: December 5 , 2006 EFFECTIVE: February 1 2007 ~ ~~;ro ~OUNT AIN c. No.Original Sheet No. 72A. ELECTRIC SERVICE SCHEDULE NO. 72A - Continued Load Shifting: Customers participating in this pilot program may not shift irrigation loads to other facilities served by the Company or purchase replacement production from another facility served by the Companv. The Company reserves the right to determine if the participating customer site is in violation of Special Condition-Load Shifting. Violation ofthe Load Shifting provision shall result in Early Termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the pilot program for the remainder ofthe Irrigation Season. Control Equipment Damae:e / Sabotae:e: The Company reserves the right to determine if load control devices were intentionally damaged and/or bypassed to limit load control. Violation ofthis clause shall result in earlv termination under the terms of Special Condition-Early Termination, forfeiture of the entire LCSC, and removal from the pilot program for the remainder of the Irrigation Season. Early Termination: Given the nature of this pilot program during the 2007 Irrigation Season, if program equipment or structure cause significant hardship on participating crops, the Company will work with the Customer to accommodate removal from the program. In this case, the Customer would not be held responsible for reimbursing the Company for costs associated with participation in the program. If the Customer is terminated from the pilot program per the terms of Special Conditions Load Shifting, Control Equipment Damage / Sabotage, or Free Riders the Customer shall be responsible for reimbursing the Company for costs associated with participation in the program. Such costs include, but are not limited to, direct and indirect labor costs associated with enrolling the Customer in the program, labor costs for installing the equipment, labor to investigate intentional damage to load control devices, removing the Customer from the program, and will not include costs for replacement power. Customers required to pay costs associated with early termination under terms of this Special Condition will be provided with a statement detailing such costs. Free Riders: Customers may not participate in this program with accounts and meters that would not have used power during the Irrigation Season irrespective of participation in the program. The Company reserves the right to determine if the participating customer is in violation ofthe Special Condition-Free Riders. Violation of Special Condition-Free Riders shall result in Early Termination, forfeiture of the LCSC, and removal from the program for the remainder of the 2007 Irrigation Season. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations ofthe Company on file with and approved by the Idaho Public Utilities Commission, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Submitted Under P AC-06- ISSUED: December 5, 2006 EFFECTIVE: February 1 2007