20221114Application.pdf

Y ROCKY MOUNTAINffi"ri=CEIVED
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,,,',!',fuo,jiiiffi 18*'o*
1407 W. North Temple
Salt Lake City, UT 84116
November 14,2022
VU ELECTRONIC FILING
Idaho Public Utilities Commission
I l33l W. Chinden Blvd.
Building 8 Suite 20lA
Boise,ID 83714
Attn: Jan Noriyuki
Commission Secretary
RE: CASE NO. PAC-E-22-18
IN TIIE MATTER OF TIIE APPLICATION FOR APPROVAL OR REJECTION OF
TIIE POWER PURCIIASE AGREEMENT BETWEEN PACIFICORP AI\ID OJA, LLC
Dear Ms. Noriyuki:
Please find for filing with the ldaho Public Utilities Commission Rocky Mountain Power's
Application in the above referenced matter.
Informal questions related to this matter may be directed to Mark Alder, Idaho Regulatory
Manager at [phone].
Sincerely,
Joelle
SVP, Regulation and Customer/Community Solutions
Enclosures
Joe Dallas (ISB# 10330)
Pacifi Corp, Senior Attorney
825 NE Multnomah Street, Suite 2000
Portland, OR97232
Email: joseph.dallas@paci fi corp.com
Attorneyfor Roclry Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATTON ) CASE NO. PAC-E-22-18
FORAPPROVALOR REJECTTON OFTHE )
POWER PURCHASE AGREEMENT ) APPLICATION OF
BETWEEN PACIFICORPAND OJA, LLC ) ROCIff MOUNTAIN POWER
Pursuant to the Rules of Procedure of the Idaho Public Utilities Commission, Rule 52, and
the applicable provisions of the Public Utility Regulatory Policies Act of 1978 ("PURPA"), Rocky
Mountain Power, a division of PacifiCorp, ("Company") respectfully requests thatthe Idaho Public
Utilities Commission ("Commission") issue an order approving or rejecting the Power Purchase
Agreement ("PPA") between PacifiCorp and Larry Oja and Christie Oja qualified facility,
("Seller") dated November 8th, 2022. The Company requests that this application be processed
under modified procedures pursuant to RP 201-204.
I. INTRODUCTION
l. Rocky Mountain Power provides electric service to retail customers in the states of
Idaho, Wyoming, and Utah. Rocky Mountain Power is a public utility in the state of Idaho and is
subject to the Commission's jurisdiction with respect to its prices and terms of electric service to
retail customers pursuant to Idaho Code $ 6l-129. Rocky Mountain Power provides retail electric
service to approximately 86,500 customers in the state of ldaho.
2. Seller owns, operates, and maintains a small hydro-electric power plant (the
"Facility") located in Oneida County, Idaho with a nameplate capacity rating of 188 kilowatts
Page I
(*kW"). Seller operates the Facility as a Qualiffing Facility ("QF") underthe applicable provisions
of PURPA.
3. Sections 201 and 210 of PURPA, and pertinent regulations of the Federal Energy
Regulatory Commission ("FERC") require that regulated electric utilities purchase electricity
produced by co-generators or small power producers that obtain QF status. The rate a QF receives
for the sale of its electricity is generally referred to as the avoided cost and must reflect the
incremental cost to an electic utility of electric energy or capacity or both, which, but for the
purchase from the QR such utility would generate itself or purchase from another source.
4. The Commission has authority under PURPA, Sections 201 and 210 and FERC
regulations, 18 C.F.R. 292,to set avoided costs, order electric utilities to enter into fixed-term
obligations for the purchase of electricity from QFs and implement FERC rules.
5. On December 18, 2012, the Commission issued Order No. 32697,1 which
established parameters for published and negotiated avoided cost rate calculations. The
Commission further established and defined numerous contract terms and conditions for standard
PPAs entered into between regulated utilities and QFs.
6. On January 2,2013, the Commission issued an Errata to Order No. 32697, which
corrected published avoided cost rates to include energy payments not discounted by transmission
and line loss. Subsequently the Commission issued reconsideration Orders Nos. 32737 and32802
on February 5,2013, and May 5,2013, respectively, which further clarified certain terms and
conditions of PPAs.
I In the Matter of the Commissionb Review of PURPA QF Contract Provisions Including the Surrogate Avoided
Resource (SAR) and Integrated Resource Planning (IRP) Methodologies for Calculating Avoided Cost Rates, Car,e
No. GNR-E-ll-03.
Page2
7. The Seller's original PURPA contract was entered into on January 24, 1992, prior
to FERC's requirement to separate a utility's energy supply and transmission functions. The
capacity listed in the original contract was 260 kW.
8. On January 19, 2022, the Company applied2 to the Commission for an order
approving or rejecting an amendment to a power purchase agreement ("Second Amendment")
between the Company and Larry Oja and Christie Oja (collectively "Sellers") for a one-year
extension to the PPA. The extension was requested to provide additional time for the Seller to
complete the distribution system upgrades called for in the stand-alone interconnection agreement.
9. Order 35383 authorized the one-year extension to the PPA effective through
January 31,2023, as requested by the Company.
II. POWER PURCHASE AGREEMENT
10. The energy service agreement ("ESA") is based on the published rates for projects
of l0 average megawatts ("aMW") or less pursuant to Commission Order No.35422. The Facility
is an existing QF that is seeking a new twenty-year contract. The ESA contains capacity payments
for the entire term of the contract; therefore, no sufficiency period determination is necessary, see
Order No. 32697 at 2l-22, Order No.32737 at 5, and Order No. 32871. Pursuant to the
Commission's direction in its Reconsideration Order No. 32737, the rates were calculated by
Commission Staff for a QF in the "non-seasonal hydro" category based on the surrogate avoided
resource ("SAR") avoided cost methodology.
I l. Seller's current PURPA contract is dated January 24, 1992. The PURPA contract
was entered into prior to PacifiCorp separating its energy supply and transmission functions as
required by federal law and regulations.
2 In the Matter of Rocly Mountain Power 3 Application for Approval or Rejections of the Amended Purchase Power
Agreement Between PacifiCorp and Larry and Christie Oja, Case No. PAC-E-22-01.
Page 3
12. The contract includes provisions that address both energy sales and interconnection
requirements. PacifiCorp begin contacting the Seller regarding contract renewal October 20,2020.
Seller filed the application for transmission interconnection August 3l , 2021 , with data to begin a
transmission interconnection fast track study finally deemed complete December 30,2021. The
current contract is scheduled to expire on January 31,2023, having been extended per explanation
in paragraph 5 of this section below.
13. The Seller expressed a desire to continue to make sales from the Facility to
PacifiCorp consistent with the requirements of PURPA as implemented in the State of ldaho. The
Seller has demonstrated to PacifiCorp that the Facility remains a QF as defined by PURPA and as
implemented in the State of ldaho. The Seller and PacifiCorp are in the process of securing a new
stand-alone interconnection agreement that, after all distribution system upgrades are constructed
and in-service, will replace the interconnection provisions in the current PURPA contract.
14. During the period that the necessary transmission fast track study and dishibution
system upgrades are being completed, PacifiCorp and the Seller have agreed to a limited one-year
PURPA contract, with pricing, as summarized in Exhibit A to the PPA, for energy sales during this
term. The term is effective from February l,2022,throlgh the earlier of the effective date of a
new PPA or January 31,2023. The total nameplate capacity of the facility remains unchanged at
260 kw.
15. The Seller has demonstrated to the Company's reasonable satisfaction that: (l) the
Facility's net energy will equal the energy delivery schedules for the extended term of this
Amendment; and(2) the likelihood that the Facility, under average design conditions, will generate
at no more than 0.2 aMW in any calendar month. The Facility's estimated net output over the
extended term is l2,lll megawatt-hours.
Page 4
16. The PPA submitted herewith, as Attachment l, complies with the Commission's
previous orders, and except as otherwise indicated, the Company will pay the Seller the price set
forth in Exhibit K to the PPA.
17. Section 2 of the PPA provides that the contract will not become effective until the
Commission has approved it and determined that the prices paid for energy and capacity are just
and reasonable, in the public interest, and that costs incurred by the Company for purchasing
energy and capacity are legitimate expenses, all of which the Commission will allow the Company
to recover in Idaho rates in the event other jurisdictions deny recovery of their proportionate share
ofsaid expenses.
III. COMMUNICATIONS
18. Communications regarding this filing should be addressed to:
MarkAlder
Idaho Regulatory Affairs Manager
Rocky Mountain Power
1407 West North Temple, Suite 330
Salt Lake City, Utah 841l6
Telephone: [phone]
Email : mark.alder@oacifi corp.com
I dahoDockets@pacifi corp.com
Joe Dallas (ISB# 10330)
Pacifi Corp, Senior Afforney
825 NE Multnomah Street, Suite 2000
Portland, OR97232
Email : i oseph.dal las@pacifi corp.com
In addition, Rocky Mountain Power requests that all data requests regarding this
Application be sent in Microsoft Word to the following:
By email (preferred) : datarequest@pacifi corp.com
Page 5
By regular mail: Data Request Response Center
PacifiCorp
825 Multnomah, Suite 2000
Portland, Oregon 97232
Informal questions may be directed to Mark Alder, Idaho Regulatory Affairs Manager at
[phone].
IV. MODIFIED PROCEDTIRE
19. The Company believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under Modified
Procedure, i.e., by written submissions rather than by hearing, pursuant to RP 201.
v. REQUEST FOR RELTEF
WHEREFORE, Rocky Mountain Power respectfully requests that the Commission: (l)
Issue an order authorizingthat this matter be processed by Modified Procedure; (2) Approve or
reject the twenty-year purchase power agreement between Larry Oja and Christie Oja and the
Company without change or condition; and (3) Declare that the avoided cost prices set forth in
the contract are just and reasonable, in the public interest, and that the Company's incurrence of
such costs are legitimate expenses for recovery in rates in the state of Idaho.
DAIED this 14ft day of November 2022.
Respectfu lly submitted,
ROCKY MOUNTAIN POWER
Aq \
Joe Dallas
Attorneyfor Roclcy Mountain Power
Page 6
Pacifi Corp Execution Copy
POWER PURCHASE AGREEMENT
BETWEEN
LARRY OJA AI\[D CHRISTIE OJA
AND
PACIFICORP
TABLE OF CONTENTS
SECTION 1 DEFINITIONS, RTJLES OF INTERPRETATION............... .......... 1
SECTION 2 TERM; MILESTONES.10
SECTION 3 REPRESENTATIONS AI\[D WARRANTIES..
3.1 Mutuel Representations and \ilarranties.. ............t2
3.2 Seller's Further Representations, lYarranties and Covenants... .................... 12
SECTION 4 15
DELIYERIES OF NET OUTPUT.................15
LL
4.2 Designation as Network Resource...... ................... 15
4.3 No Sales to Third Parties......... .........15
4.6 PecifiCorp as Merchant .................... 16
4.7
4.8
Ownership of Environmental Attributes, Tax Credits.16
Purchase and Sale of Capacity Rights. ................. 16
SECTION 5 CONTRACT PRICE; COSTS 18
5.1 Contract Price; Includes Capacity Rights.19
5.5 Costs of Ownership and Operation....
-ll-
20
5.6 Rates Not Subject to Review.20
SECTION 6 OPERATION AI\ID CONTROL .20
6.2 Standard of Facility Operation. ....... 20
6.4 Coordinetion with System................22
6.6
6.7
6.9
6.10
6.11
6.12
6.r3
6.t4
Telemetering.24
Transmission Provider Consent 25
Dedicated Communication Circuit....25
F'inancirl and Accounting Infomation. ...............27
Access Rights.27
SECTION 7 QUALIFYING FACILITY STATUS ..27
7.1 Seller's QF Stetus.27
SECTION 8 SECURITY AI\[D CREDIT SUPPORT......,,.27
SECTION 9.....28
METERING ....28
9.1 Installation of Metering Equipment...28
28
28
28
28
9.3 Inspection, Testing, Repair and Replacement of Meters
9.4 Metering Costs.
9.5 WREGIS Metering......
SECTION 10
-l[-
.....28
BILLINGS, COMPUTATIONS AI\ID PAYMENTS ....28
10.2 Offsets.28
10.3
10.4
10.5
Interest on Late Payments..... ......29
tt.2
tt.4
11.5
11.6
tt.7
11.8
Audit Rights.29
SECTION 11 DEFAULTS AI\[D REMEDIES...........29
29
31
33
33
33
33
33
Remedies fo r Failure to Deliver/Receive. ...........
Terminetion of Duty to Buy..........
Termination Damrges......
Duty/Right to Mitigate...
Cumulative Remedies.
SECTION 12 INDEMNIFICATION AI\ID LIABILITY 34
SECTION 13INSURANCE ..36
13.1 Required Policies and Coverages.36
SECTION 14.......36
FORCE MAJEURE ...36
l4.l Definition of Force Majeure. .......36
14.3 tr'orce Majeure Does Not Affect Other Obligations............. .......................37
14.5 Right to Terminate.....
-lv-
37
SECTION 15 SEVERAL OBLIGATIONS
SECTION 16 CHOICE OF LAW 37
SECTION 17 PARTIAL ITWALIDITY 37
SECTION 18 NON-WAIVER ....38
SECTION 19 GOVERNMENTAL JTIRISDICTION AI\ID AUTHORIZATIONS..............38
SECTION 20 SUCCESSORS AI\D ASSIGNS .......38
20.1 Restriction on Assignments.38
20.2 PermittcdAssignments :18
SECTION 21 ENTIRE AGREEMENT .....38
SECTION 22 NOTICES ....39
22.1 Addresses and DeliveIy Methods.....39
SECTION 23 PUBLICITY ....39
23.1 News Relesses and Publicity.39
SECTION 24 DISAGREEMENTS .....39
24.2 Mediation.40
24.4 WAIVER OF JURY TRIAL.tlo
37
ExhibitA
Exhibitts
ExhibitC
ExhibitD
ExhibitE
ExhibitF
Exhibit c
ExhibitH
Exhibitl
Exhibit J
ExhibitK
ExhibitL
EXHIBMS
Estimafed Monthly Net Output
Description of Seller's Facility
Seller's Interconnetion Facilities
Required Facility Documents
Leases
Reserved
Qualified Repoting Entrty Servicos Agreernent
Seller Authorization to Release Generation Data to PacifiCorp
Required Iustrance
NERC Evcnt Tlpes
Rocky Mountain P,ourer Schedule No. 38
Party Notice Information
-vt-
POWER PURCHASE AGREEMENT
THIS POWER PURCHASE AGREEMENT (this "Agreement'o), is entered into between
(i) Larry Oja and Christie Oja (collectively, "Seller"), and (ii) PacifiCorp, an Oregon corporation
("PacifiCorp"). Seller and PacifiCorp are sometimes referred to in this Agreement collectively
as the "Parties" and individually as a"Panfy."
A. Seller owns, operates and maintains an existing hydro-powered generating facility
for the generation of electric energy located in Oneida County, Idaho, with a nameplate capacity
rating of 188 kilowatts (the "Facility"); and
B. Seller will continue to operate the Facility as a Qualiffing Facility ("QF"); and
C. On and subject to the terms and conditions set forth in this Agreement, Seller
desires to sell, and PacifiCorp agrees to purchase, the Net Output (as defined below) delivered by
the Facility in accordance with the terms and conditions of this Agreement; and
D. The rates, terms and conditions in this Agreement are in accordance with the
rates, terms, and conditions approved by the Commission for purchases from QFs; and
E. PacifiCorp intends to designate the Facility as a Network Resource for the
purposes of serving network load.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises below
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties mutually agree as follows:
SECTION 1
DEFINITIONS, RULES OF INTERPRETATION
l.l Defined Terms. Unless otherwise required by the context in which any term
appears, initially capitalized terms used in this Agreement have the following meanings:
"Abandonment" means the relinquishment of all possession and control of the
Facility by Seller, but only if such relinquishment is not caused by or attributable to an Event of
Default by PacifiCorp, a request by PacifiCorp, or an event of Force Majeure.
"Adjusted Scheduled Monthly Energy Delivery" shall have the meaning set forth
in Section 4.10.
"Affiliate" means, with respect to any entity, each entity that directly or indirectly
controls, is controlled by, or is under common control with, such designated entity, with
"control" meaning the possession, directly or indirectly, of the power to direct management and
policies, whether through the ownership of voting securities or by contract or otherwise.
Notwithstanding the foregoing, with respect to PacifiCorp, "Affiliate" only includes Berkshire
Hathaway Energy Company and its direct, wholly owned subsidiaries.
I
'oAgreement" is defined in the Recitals
66AC" means alternating current.
"As-Built Supplement" is a supplement to Exhibit B of this Agreement, as
provided in Section 6.1, which provides the final "as-builf' description of the Facility, including
the Point of Delivery, in connection with any modification to the Facility authorized under a
Facility Mod Amendment that has been approved by the Commission.
"Business Day" means any day on which banks in Portland, Oregon, are not
authorized or required by Requirements of Law to be closed.
"Capacity Rights" means any current or fufure defined characteristic, certificate,
tag, credit, ancillary service or attribute thereof, including reactive power, or accounting
construct, including any of the same counted towards any current or future resource adequacy or
reserve requirements, associated with the electric generation capability and capacity of the
Facility or the Facility's capability and ability to produce energy. Capacity Rights are measured
in MW or MVAR in the case of reactive power and do not include any Tax Credits or other tax
incentives existing now or in the future associated with the construction, ownership or operation
of the Facility.
"Commission" means the Idaho Public Utilities Commission.
"Conditional DNR Notice" is defined in Section 4.2.
"Conforming Energy" means all Net Energy except Non-Conforming Energy
subject to any adjustments to the Energy Delivery Schedule in Section 4.9.
"Conforming Energy Purchase Price" means the applicable price for Conforming
Energy and capacity (if any), specified in Exhibit K.
"Contract lnterest Rate" means the lesser of (a) the highest rate permitted under
Requirements of Law or (b) 200 basis points per annum plus 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.as its "prime rate." If a Citibank, N.A.prime
rate is not available, the applicable prime rate will be the announced prime rate or reference rate
for commercial loans in effect from time to time quoted by a bank with $10 billion or more in
assets in New York City, N.Y., selected by the Party to whom interest is being paid.
"Contract Price" means the Conforming Energy Purchase Price or Non-
Conforming Energy Purchase Price as applicable, expressed in $/lvlWh, for Net Output and
Capacity Rights stated in Section 5.1.
"Contract Year" means any consecutive twelve (12) month period during the
Term, commencing at 00:00 hours on the lnitial Delivery Date or any of its anniversaries and
ending at 24:00 hours on the last day of such twelve ( 12) month period.
"Effective Date" is defined in Section 2.1.
2
"Electric System Authority" means each of NERC, WECC, WREGIS, an RTO, a
regional or sub-regional reliability council or authority, and any other similar council,
corporation, organization or body of recognized standing with respect to the operations of the
electric system in the WECC region, as such are applicable to the Seller or PacifiCorp.
"Energy Delivery Schedule" is defined in Section 4.9 of this Agreement.
"Energy Imbalance Market" means generation facilities electrically located within
PacifiCorp's balancing authority areas that are, from time to time, bid in to or otherwise subject
to dispatch instructions issued or originating from the Market Operator.
"Environmental Attributes" means any and all claims, credits, benefits, emissions
reductions, offsets, and allowances associated with the avoidance of the emission of any gas,
chemical, or other substance to the air, soil or water. Environmental Attributes include: (a) any
avoided emissions of pollutants to the air, soil, or water such as sulfur oxides, nitrogen oxides,
carbon monoxide, and other pollutants; and (b) any avoided emissions of carbon dioxide,
methane, and other greenhouse gases that have been determined by any Governmental Authority
to contribute to the actual or potential threat of altering the Earth's climate by trapping heat in
the atmosphere. Environmental Attributes do not include (i) Tax Credits or other tax incentives
existing now or in the future associated with the construction, ownership or operation of the
Facility, (ii) matters designated by PacifiCorp as sources of liability, or (iii) adverse wildlife or
environmental impacts.
"Environmental Contamination" means the introduction or presence of Hazardous
Materials at such levels, quantities or location, or of such form or character, as to constitute a
violation of federal, state or local laws or regulations, and present a material risk under federal,
state or local laws and regulations that the Premises will not be available or usable for the
purposes contemplated by this Agreement.
"Event of Default" is defined in Section I l.l.
"Expected Monthly Net Output" means the estimated monthly Net Output as
determined in Exhibit A.
"Expected Net Output" means 605.6 MWh of Net Output in the first full Contract
Year reduced, as applicable, by an annual degradation factor of 0 per Contract Year, measured at
the Point of Delivery. Seller estimates that the Net Output will be delivered during each
Contract Year according to the Expected Monthly Net Output provided in Exhibit A, as reduced
each Contract Year, as applicable, by the annual degradation factor.
"Facility" is defined in the Recitals and is more fully described in attached
Exhibit B and includes all equipment, devices, associated appurtenances owned, controlled,
operated and managed by Seller in connection with, or to facilitate, the production, generation,
transmission, delivery, or furnishing of electric energy by Seller to PacifiCorp and required to
interconnect with the System.
"Facility Mod Amendment" is defined in Section 6.1.
3
"FERC" means the Federal Energy Regulatory Commission.
"Firm Market Price Index" means the hourly value calculated based on the
average prices reported by the Intercontinental Exchange, [nc. (*ICE") Day-Ahead PV On-Peak
Index and the ICE Day-Ahead PV Off-Peak Index (each an "ICE Index") for a given day,
weighted by the count of hours for each ICE Index on such day, multiplied by the hourly CAISO
day-ahead market locational marginal price for the "PACE.DGAP_PACE-APND" location, and
divided by the average of the same CAISO index over all hours in such day. If applicable, the
resulting value will be reduced by the integration costs specified in the most recent Commission
order as applicable to the Facility. If any index is not available for a given period, the Firm
Market Price Index will be the average price derived from days in which all published data is
available, for the same number of days immediately preceding and immediately succeeding the
period in which an index was not available, regardless of which days of the week are used for
this purpose. If the Firm Market Price Index or its replacement or any component of that index
or its replacement ceases to be published or available, or useful for its intended purpose under
this Agreement, during the Term, the Parties must agree upon a replacement Firm Market Price
Index or component that, after any necessary adjustments, provides the most reasonable
substitute quotation of the hourly price of electricity for the applicable periods.
"Force Majeure" is defined in Section 14.1.
"Forced Outage" means NERC Event Types Ul, U2 and U3, as provided in
attached Exhibit J, and specifically excludes any Maintenance Outage or Planned Outage.
"Generation Interconnection Agreement" means the generator interconnection
agreement entered into separately between Seller and Interconnection Provider conceming the
Interconnection Facil ities.
"Govemmental Authorit5l" means any supranational, federal, state or other
political subdivision thereol having jurisdiction over Seller, PacifiCorp or this Agreement,
including any municipality, township or count5r, and any entity or body exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government,
including any corporation or other entity owned or controlled by any of the foregoing.
o'Hazardous Materials" means any waste or other substance that is listed, defined,
designated or classified as or determined to be hazardous under or pursuant to any environmental
law or regulation.
"Inadvertent Energy" means: (l) energy delivered in excess of the Maximum
Monthly Purchase Obligation; and (2) energy delivered to the Point of Delivery at a rate
exceeding the Maximum Delivery Rate. Inadvertent Energy is not included in Net Output.
"lndemnified Party" is defined in Section 6.2.3(b).
"[nitial Delivery Date" the later to occur of (i) the day commencing at 00:01
hours, Mountain Time, following the Effective Date; (ii) the day commencing at 00:01 hours,
Mountain Time, following the day that Seller has satisfied the Initial Delivery Requirements; (iii)
the day on which PacifiCorp is notified by the Transmission Provider that the Facility has been
4
designated a Network Resource; or (iv) the Scheduled Initial Delivery Date commencing at
00:01 hour Mountain Time.
"Initial Delivery Requirements" means that the conditions set forth in Section
2.2(b).
"lnitial Energy Delivery Schedule" shall have the meaning set forth in Section
4.9
"Interconnection Facilities" means all the facilities installed, or to be installed, for
the purpose of interconnecting the Facility to the System, including electrical transmission lines,
upgrades, transformers and associated equipment, substations, relay and switching equipment,
and safety equipment.
"Interconnection Provider" means Pacifi Corp Transmission.
('KW,r means kilowatt.
"Lender" means an entity lending money or extending credit (including any
financing lease, monetization of tax benefits, transaction with a tax equity investor, back
leverage financing or credit derivative arrangement) to Seller or Seller's Affiliates (a) for the
construction, term or pennanent financing or refinancing of the Facility, (b) for working capital
or other ordinary business requirements for the Facility (including for the maintenance, repair,
replacement or improvement of the Facility), (c) for any development financing, bridge
financing, credit support, and related credit enhancement or interestrate, currency, weather, or
Environmental Attributes in connection with the development, construction or operation of the
Facility, or (d) for the purchase of the Facility and related rights from Seller.
"Liabilities" is defined in Section l2.l.l
"Maintenance Outage" means NERC Event Type MO, as provided in attached
Exhibit J, and includes any outage involving ten percent (10%) of the Facility's Net Output that
is not a Forced Outage or a Planned Outage.
"Market Operator" means the California Independent System Operator or any
other entity performing the market operator function for the Energy Imbalance Market or any
organized day-ahead or intra-hour market.
o'Maximum Delivery Rate" means the maximum hourly rate of delivery of Net
Output in MWh from the Facility to the Point of Delivery, calculated on the basis of the Net
Output delivered in an hour accruing at an average rate equivalent to the actual Nameplate
Capacity Rating, as stated in Exhibit A.
"Maximum Monthly Purchase Obligation" means the maximum amount of
energy PacifiCorp is obligated to purchase under this Agreement in a calendar month. ln
accordance with Commission orders, the Maximum Monthly Purchase Obligation for a given
month, in kWh, shall not exceed 10,000 kW multiplied by the total number of hours in that
month and prorated for any partial month.
5
"Moody's" means Moody's Investor Services, Inc.
"Mountain Prevailing Time" or "MPT" means Mountain Standard Time or
Mountain Daylight Time, as applicable in Utah on the day in question.
('MWr" means megawatt.
"MWh" means megawatt-hour
"Nameplate Capacity Rating" means the maximum installed instantaneous
generation capacity of the completed Facility, expressed in MW (AC), when operated in
compliance with the Generation Interconnection Agreement and consistent with the
recommended power factor and operating parameters provided by the manufacturer of the
generator. The Nameplate Capacity Rating of the Facility is 0.188 MW.
"Net Energy" means the energy component, in kWh, of Net Output. Net Energy
does not include Inadvertent Energy.
"NERC" means the North American Electric Reliability Corporation.
"Net Output" means all energy and capacity produced by the Facility, less station
use and less transformation and transmission losses and other adjustments (e.g., Seller's load
other than station use), if any. For purposes of calculating payment under this Agreement, Net
Output of energy will be the amount of energy flowing through the Point of Delivery.
"Network Resource" is defined in the Tariff.
"Non-Conforming Energy" means for any Billing Period subject to any
adjustments to the Energy Delivery Schedule in Section 4.9 and Section 4.10, as may be adjusted
pursuant to Section 4.10: (l) that portion, if any, of Net Energy delivered subsequently to the
initial I l0% of the Scheduled Monthly Energy Delivery for that Billing Period; or (2) all Net
Energy delivered when Net Energy delivered is less than90o/o of the Scheduled Monthly Energy
Delivery for that Billing Period; and (3) all Net Output produced by the Facility prior to the
Initial Delivery Date.
"Non-Conforming Energy Purchase Price" means the applicable price for Non-
Conforming Energy and capacity, specified in Section 5.1.
"Off-Peak Hours" means all hours 24:00:00 through 07:00:00 and hours 23:00:00
through 24:0000, MPT, Monday through Saturday and hours 24:00:00 through 24:00:00 on next
date, MPT, on Sundays and NERC designated holidays.
"On-Peak Hours" means all hours 07:00:00 through 23:00:00 MPT, Monday
through Saturday, excluding NERC designated holidays.
"Output" means all energy produced by the Facility.
6
"PacifiCorp" is defined in the Recitals, and explicitly excludes PacifiCorp
Transmission.
"PacifiCorp Indemnitees" is defined in Section l2.l.l.
"PacifiCorp Representatives" is defined in Section 6.14.
"PacifiCorp Transmission" means PacifiCorp, an Oregon corporation, acting in its
interconnection or transm i s sion function capacity .
"PacifiCorp's Cost to Cover" means the positive difference, if any, between (a)
the time weighted average of the Firm Market Price Index for each day for which the
determination is being made, and (b) the Contract Price in effect on such days, stated as an
amount per MWh.
"Part7t" and "Parties" are defined in the Recitals.
"Permits" means the permits, licenses, approvals, certificates, entitlements and
other authorizations issued by Governmental Authorities required for the construction,
ownership or operation of the Facility or occupancy of the Premises.
"Planned Outage" means NERC Event Type PO, as provided in attached Exhibit
J, and specifically excludes any Maintenance Outage or Forced Outage.
"Point of Delivery" means the point of interconnection between the Facility and
the System, as specified in the Generation hterconnection Agreement and as further described in
Exhibit C.
"Premises" means the real property on which the Facility is or will be located, as
more fully described on Exhibit B.
o'Prudent Electrical Practices" means any of the practices, methods and acts
engaged in or approved by a significant portion of the independent electric power generation
industry for facilities of similar size and characteristics 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.
"PURPA" means the Public Utility Regulatory Policies Act of 1978.
o'QF" means "Qualifying Facility," as that term is defined in the FERC
regulations (codified at I 8 CFR Part292) in effect on the Effective Date.
"Qualiffing Curtailmento'means, to the extent not caused by Seller's negligent,
reckless, or willful actions, a period in a given calendar month during which delivery of Net
Output is curtailed or intemrpted pursuant to Section 4.5, and only applicable to adjustment of
the Energy Delivery Schedule as described in Section 4.9 and Section 4.10.
7
"Qualiffing Institution" means a United States commercial bank or trust company
organized under the laws of the United States of America or a political subdivision thereof
having assets of at least S10,000,000,000 (net of reserves) and a credit rating on its long-term
senior unsecured debt of at least 'A' from S&P and'A2' from Moody's.
"Required Facility Documents" means the Permits and other authorizations, rights
and agreements necessary for construction, ownership, operation, and maintenance of the
Facility, and to deliver the Net Output to PacifiCorp in accordance with this Agreement and
Requirements of Law, including those listed in Exhibit D.
"Requirements of Law" means any applicable federal, state and local law, statute,
regulation, rule, action, order, code or ordinance enacted, adopted, issued or promulgated by any
Governmental Authority (including those pertaining to electrical, building, zoning,
environmental and wildlife protection, and occupational safety and health).
'6RTO" means any entity (including an independent system operator) that
becomes responsible as system operator for, or directs the operation of, the System.
'6S&P" means Standard & Poor's Rating Group (a division of S&P Global, Inc.).
"Schedule 38" means Rocky Mountain Power Idaho Schedule No. 38 as attached
in Exhibit K, and as approved by the Commission on the Effective Date.
"Scheduled Initial Delivery Date" means February 1,2023.
"Scheduled Monthly Energy Delivery" means the Net Energy scheduled to be
delivered during a given calendar month, as specified by Seller in the Energy Delivery Schedule.
"Subsequent Energy Delivery Schedule" is defined in Section 4.9.2 of this
Agreement
"Seller" is defined in the Recitals.
"Seller Indemnitees" is defined in Section 12.1.2.
"Seller's Cost to Cover" means the positive difference, if any, between (a) the
Contract Price per MWh, and (b) the net proceeds per MWh actually realized by Seller from the
sale to a third party of Net Output not purchased by PacifiCorp as required under this
Agreement.
"System" means the electric transmission substation and transmission or
distribution facilities owned, operated or maintained by Transmission Provider, which includes
the circuit reinforcements, extensions, and associated terminal facility reinforcements or
additions required to interconnect the Facility, all as provided in the Generation Interconnection
Agreement.
"Tariff'means PacifiCorp's Open Access Transmission Tariff on file with FERC,
as such tariff is revised from time to time.
8
"Tax Credits" means any state, local and federal production and investment tax
credits, tax deductions, or other tax benefits specific to the production of renewable energy or
investments in renewable energy facilities.
'oTerm" is defined in Section 2.1
"Termination Damages" is defined in Section I 1.5.
"Transmission Provider" means PacifiCorp Transmission, including PacifiCorp's
business unit responsible for the safe and reliable operation of PacifiCorp's balancing authority
areas.
"WECC" means the Western Electricity Coordinating Council.
1.2 Rules of Interpretation.
1.2.1 General. Unless otherwise required by the context in which any term
appears, (a) the singular includes the plural and vice versa; (b) references to "Articles,"
"Sections," "Schedules," o'Appendices" or "Exhibits" are to articles, sections, schedules,
appendices or exhibits of this Agreement; (c) all references to a particular entity or an electricity
market price index include a reference to such entity's or index's successors; (d) "herein,"
"hereof' and "hereunder" refer to this Agreement as a whole; (e) all accounting terms not
specifically defined in this Agreement must be construed in accordance with generally accepted
accounting principles, consistently applied; (0 the masculine includes the feminine and neuter
and vice versa; (g) "including" means "including, without limitation" or "including, but not
limited to"; (h) all references to a particular law or statute mean that law or statute as amended
from time to time; (i) all references to energy or capacity are to be interpreted as utilizing
alternating current, unless expressly stated otherwise; and O the word "or" is not necessarily
exclusive. Reference to "days" means calendar days, unless expressly stated otherwise in this
Agreement.
1.2.2 Terms Not to be Construed For or Asainst Either Paqv. Each term in this
Agreement must be construed according to its fair meaning and not strictly for or against either
Party.
1.2.3 Headings. The headings used for the sections and articles of this
Agreement are for convenience and reference purposes only and in no way affect the meaning or
interpretation of the provisions of this Agreement.
1.2.4 Interpretation with FERC Orders. Each Party conducts its operations in a
manner intended to comply with FERC Order No. 7l 7, Standards of Conduct for Transmission
Providers, and its companion orders, requiring the separation of its transmission and merchant
functions. Moreover, the Parties acknowledge that Interconnection Provider's transmission
function offers transmission service on its system in a manner intended to comply with FERC
policies and requirements relating to the provision of open-access transmission service.
9
(a) The Parties acknowledge and agree that the Generation
Interconnection Agreement is a separate and free standing contract and that the terms of this
Agreement are not binding upon the Interconnection Provider.
(b) Notwithstanding any other provision in this Agreement, nothing in
the Generation Interconnection Agreement, nor any other agreement between Seller on the one
hand and Transmission Provider or Interconnection Provider on the other hand, nor any alleged
event of default under the Generation Interconnection Agreement, will alter or modiS the
Parties' rights, duties, and obligations in this Agreement. This Agreement will not be construed
to create any rights between Seller and the Interconnection Provider or between Seller and the
Transmission Provider.
(c) Seller acknowledges that, for purposes of this Agreement,
consistent with FERC Order No. 717, Standards of Conduct for Transmission Providers, and its
companion orders, the Interconnection Provider and Transmission Provider are deemed separate
entities and separate contracting parties from PacifiCorp. Seller acknowledges that PacifiCorp,
acting in its merchant capacity function as purchaser in this Agreement, has no responsibility for
or control over Interconnection Provider or Transmission Provider, and is not liable for any
breach of agreement or duty by Interconnection Provider or Transmission Provider.
SECTION 2
TERM; INITIAL DELIVERY
2.1 Term. This Agreement will become effective after the occurrence of all of the
following events (such date of occurrence, the "Effective Date"): (l) execution by both Parties;
(2) approval by the Commission; (3) Seller has executed and is performing in accordance with a
new Generation lnterconnection Agreement with the Interconnection Provider; provided,
however, this Agreement shall not become effective until the Commission has determined,
pursuant to a final and non-appealable order, that the prices to be paid for energy and capacity
are just and reasonable, in the public interest, and that the costs incurred by PacifiCorp for
purchases of capacity and energy from Seller are legitimate expenses, all of which the
Commission will allow PacifiCorp to recover in rates in Idaho in the event other jurisdictions
deny recovery of their proportionate share of said expenses. Unless terminated earlier as
provided herein, once effective, this Agteement remains in effect until January 31,2043 (the
"Term"). For the sake of clarity, Seller is obligated to sell and make available to PacifiCorp its
Net Output from the Scheduled Initial Delivery Date through the last date of the Term.
2.2 Scheduled Initial Delivery Date: Initial Delivery Requirements.
(a) Time is of the essence in the perforrnance of this Agreement, and
Seller's delivery of Net Output is critically important. Therefore, Seller is obligation to satisfu
the Initial Delivery Requirements set forth below on a timely basis so that the Initial Delivery
Date can occur on the Scheduled Initial Delivery Date. Without limiting the rights and remedies
of Seller under Section I l, in the event that Seller expects that the Initial Delivery Date will
occur after the Scheduled Initial Delivery Date, Seller must notiff PacifiCorp of the revised date
no later than 30 days prior to Scheduled Initial Delivery Date.
(b) The Facility has been delivering energy to PacifiCorp in
l0
accordance with a Power Purchase Agreement dated January 3, 1985 (as amended, the "Prior
PPA"), that expires January 31,2023, and some of the Initial Delivery Requirements are similar
to the requirements of the Prior PPA. Prior to the Initial Delivery Date and as a condition of
PacifiCorp's acceptance of deliveries of Net Output from Seller under this Agreement,
PacifiCorp shall review the previously provided information and at PacifiCorp's sole discretion
may l) deem the previously provided information acceptable to meet one or more of the Initial
Delivery Requirements, 2) require Seller to provide updates to the previously provided
information to satisfu one or more of the tnitial Delivery Requirements, or 3) require Seller to
provide new information to satis$ one or more of the tnitial Delivery Requirements. The Initial
Delivery Requirements include the following obligations:
(i) Seller shall provide PacifiCorp with documentation
verifying that all licenses, permits, determinations and approvals necessary for Seller's
operations have been obtained from applicable federal, state or local authorities, including, but
not limited to, evidence of the Required Facility Documents and Seller's status as a certified
Qualiffing Facility.
(ii) Seller must provide PacifiCorp a fully executed and
effective Generation lnterconnection Agreement and verification from the Interconnection
Provider that all interconnection upgrades and testing requirements necessary to enable the
Facility to continue to be safely connected to PacifiCorp's electrical system have been
completed.
(iii) Seller must provide PacifiCorp with documentation
showing that Seller has obtained retail electric service for the Facility.
(iv) Seller must provide PacifiCorp with manufacturer's and
engineering documentation that establishes the Nameplate Capacity of the Facility.
(v) Seller must provide PacifiCorp with a certificate of
insurance evidencing that Seller has met the requirements of Section I 3 of this Agreement.
(vi) PacifiCorp must have received verification that the Facility
has been designated a Network Resource capable of delivering Net Output at the Maximum
Delivery Rate at the Point of Delivery.
(vii) Seller shall have sent written notice to PacifiCorp
requesting written confirmation from PacifiCorp that the Initial Delivery Requirements set forth
in Section 2.2(b)(i)-(vi) have been fulfilled and shall have received such written confirmation.
PacifiCorp shall provide such written confirmation, which PacifiCorp shall not unreasonably
withhold, or a notice detailing any deficiencies within a commercially reasonable time following
the Seller's request. If PacifiCorp informs Seller within such period that PacifiCorp believes the
Facility has not met the conditions for the Initial Delivery Requirements, identiffing the specific
areas of deficiency, Seller must address the concerns stated in PacifiCorp's deficiency notice to
the reasonable satisfaction of PacifiCorp and obtain the written confirmation contemplated under
this Section 2.2(bXvii).
SECTION 3
ll
3.1
the other that:
REPRESENTATIONS AND WARRANTIES
Mutual Representations and Warranties. Each Party represents and warrants to
3.1 .l Organization. It is duly organized and validly existing under the laws of
the State of its organization.
3.1.2 Authoritv. It has the requisite power and authority to enter this Agreement
and to perform according to its terms.
3.1.3 Corporate Actions. It has taken all corporate actions required to be taken
by it to authorize the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated.
3.1.4 No Contravention. The execution and delivery of this Agreement does not
contravene any provision of, or constitute a default under, any indenture, mortgage, security
instrument or undertaking, or other material agreement to which it is a party or by which it is
bound, or any valid order of any court, or any regulatory agency or other Governmental
Authority having authority to which it is subject.
3.1.5 Valid and Enforceable Agreement. This Agreement is a valid and legally
binding obligation of it, enforceable in accordance with its terms, except as enforceability may
be limited by general principles of equity or bankruptcy, insolvency, bank moratorium or similar
laws affecting creditors' rights generally and laws restricting the availability of equitable
remedies.
3.2 Seller's Further Representations. Warranties and Covenants. Seller further
represents, warrants, and covenants to PacifiCorp that:
3.2.1 Authori8. Seller (a) has all required regulatory authority to make
wholesale sales from the Facility; (b) has the power and authority to own and operate the Facility
and be present upon the Premises for the Term; and (c) is duly qualified and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of property, or the
conduct of its business requires such qualification.
3.2.2 No Contravention. The execution, delivery, performance and observance
by Seller of its obligations in this Agreement do not and will not:
(a) contravene, conflict with or violate any provision of any material
Requirements of Law presently in effect having applicability to either Seller or any owner of
Seller;
(b) require the consent or approval of or material filing or registration
with any Governmental Authority or other person other than consents and approvals which are
(i) provided in Exhibit D or (ii) required in connection with the construction or operation of the
Facility and expected to be obtained in due course; or
t2
(c) result in a breach of or constitute a default under any provision of
(i) any security issued by Seller or any owner of Seller, the effect of which would materially and
adversely affect Seller's performance of, or ability to perform, its obligations in this Agreement,
or (ii) any material agreement, instrument or undertaking to which either Seller or any owner or
other Affiliate of Seller is a party or by which the property of either Seller or any owner or other
Affiliate of Seller is bound, the effect of which would materially and adversely affect Seller's
performance of, or ability to perform, its obligations in this Agreement.
3.2.3 Required Facilitv Documents. All Required Facility Documents are listed
on Exhibit D. Pursuant to the Required Facility Documents, Seller holds as of the Effective Date
(or such other later date as may be specified under Requirements of Law), and will maintain for
the Term all Required Facility Documents. The anticipated use of the Facility complies with all
applicable restrictive covenants affecting the Premises. Following the Effective Date, Seller
must promptly notiff PacifiCorp of any additional Required Facility Documents. If reasonably
requested by PacifiCorp, Seller must provide copies of any or all Required Facility Documents.
3.2.4 Delivery of Energ.v. Seller holds, or will hold on or before the Initial
Delivery Date, all rights sufficient to enable Seller to deliver Net Output at the Nameplate
Capacity Rating from the Facility to the Point of Delivery pursuant to this Agreement throughout
the Term.
3.2.5 Control of Premises. Seller has all legal rights necessary for the Seller to
enter upon and occupy the Premises for the purpose of constructing, operating and maintaining
the Facility for the Term. All leases of real property required for the operation of the Facility or
the performance of any obligations of Seller in this Agreement are identified in Exhibit E. Seller
must maintain all leases or other land grants necessary for the construction, operation and
maintenance of the Facility. Upon request by PacifiCorp, Seller must provide copies of the
memoranda of lease recorded in connection with the development of the Facility.
3.2.6 Litigation. No litigation, arbitration, investigation or other proceeding is
pending or, to the best of Seller's knowledge, threatened against Seller or any Affrliate of Seller,
with respect to this Agreement, the Facility, or the transactions contemplated in this Agreement.
No other investigation or proceeding is pending or threatened against Seller or any Affiliate of
Seller, the effect of which would materially and adversely affect Seller's performance of its
obligations in this Agreement.
3.2.7 Eligible Contract Participant. Seller, and any guarantor of its obligations
under this Agreement, is an "eligible contract participant" as that term is defined in the United
States Commodity Exchange Act.
3.2.8 Undertaking of Aereement: Professionals and Experts. Seller has engaged
those professional or other experts it believes necessary to understand its rights and obligations
pursuant to this Agreement. In entering into this Agreement and agreeing to undertake the
obligations within, Seller has investigated and determined that it is capable of performing and
has not relied upon the advice, experience or expertise of PacifiCorp in connection with the
l3
transactions contemplated by this Agreement.
3.2.9 Verification. All information relating to the Facility, its operation and
output provided to PacifiCorp and contained in this Agreement has been verified by Seller and is
true and accurate.
3.3 No Other Representations or Warranties. Each Party acknowledges that it
has entered into this Agreement in reliance upon only the representations and warranties
provided in this Agreement, and that no other representations or warranties have been made by
the other Party with respect to the subject matter.
3.4 Continuing Nature of Representations and Warranties: Notice. The
representations and warranties provided in this Section 3 are made as of the Effective Date and
are deemed repeated as of the Initial Delivery Date. If at any time during the Term, either Party
obtains actual knowledge of any event or information that would have caused any of the
representations and warranties in this Agreement to be materially untrue or misleading at the
time given, such Party must provide the other Party with written notice of the event or
information, the representations and warranties affected, and the action, if any, which such Party
intends to take to make the representations and warranties true and correct. The notice required
by this section must be given as soon as practicable after the occuffence of each such event.
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SECTION 4
DELIYERIES OF NET OUTPUT
4.1 Purchase and Sale. Subject to the provisions of this Agreement, effective as of
the tnitial Delivery Date, Seller must sell and make available to PacifiCory, and PacifiCorp must
purchase and receive the entire Net Output from the Facility at the Point of Delivery. PacifiCoqp
is under no obligation to make any purchase other than Net Output and is not obligated to
purchase, receive or pay for Net Output that is not delivered to the Point of Delivery. In the event
that the Initial Delivery Date does not occur immediately following the expiration date of the
Prior PPA ("Prior PPA Expiration Date"), during the period between the Prior PPA Expiration
Date and the Initial Delivery Date ("Lapse Period"), Seller shall be prohibited from delivering
Output to the Point of Delivery without PacifiCorp's prior written consent, and PacifiCorp will
not be obligated to pay Seller for any power or have any liability to Seller under this Agreement
or otherwise.
4.2 Designation as Network Resource. Within five (5) Business Days following the
Effective Date, PacifiCorp will submit an application to the Transmission Provider requesting
designation of the Facility as a Network Resource, thereby authorizing transmission service
under PacifiCorp's Network Integration Transmission Service Agreement with the Transmission
Provider. If PacifiCorp is notified in writing by the Transmission Provider that designation of
the Facility as a Network Resource requires the construction of transmission system network
upgrades or otherwise requires potential redispatch of other Network Resources of PacifiCorp
(the "Conditional DNR Notice"), the Parties will promptly meet to determine how such
conditions to the Facility's Network Resource designation may impact the Contract Price or
other terms and conditions of this PPA. If, within thirty (30) days following the date of
PacifiCorp's receipt of the Conditional DNR Notice, the Parties are unable to reach agreement
on any necessary adjustments to ensure the Contract Price reflects an "avoided cost" price as
determined by the Commission and PURPA, PacifiCorp will submit the matter to the
Commission for a determination on what adjustments, if any, are appropriate as a result of the
Conditional DNR Notice. PacifiCorp will submit such filing with the Commission within sixty
(60) days following the date of PacifiCorp's receipt of the Conditional DNR Notice. [n the event
of a Conditional DNR Notice, Seller will have the right to terminate the Agreement upon written
notice to PacifiCorp and such termination by Seller will not be an Event of Default and no
damages or other liabilities under this Agreement will be owed by one Party to the other Purty;
p !, however, that Seller's right to terminate the Agreement under this Section 4.Zwill
cease following (a) any amendment of this Agreement associated with addressing matters
covered under this Section 4.2 or (b) PacifiCorp incurring costs at Seller's request in furtherance
of addressing matters covered under this Section 4.2.
4.3 No Sales to Third Parties. During the Term, Seller will not sell any Net Output,
energy, or Capacity Rights from the Facility to any party other than PacifiCorp; ryglgg!,
however, that this restriction does not apply during periods when PacifiCorp is in default under
this Agreement because it has failed to accept or purchase Net Output as required under this
Agreement.
l5
4.4 Title and Risk of Loss of Net Output. Seller must deliver Net Output to the Point
of Delivery and Capacity Rights free and clear of all liens, claims and encumbrances. Title to
and risk of loss of all Net Output transfers from Seller to PacifiCorp upon its delivery to
PacifiCorp at the Point of Delivery. Seller is in exclusive control of, and responsible for, any
damage or injury caused by, all Output up to and at the Point of Delivery. PacifiCorp is in
exclusive control of, and responsible for, any damages or injury caused by, Net Output after the
Point of Delivery.
4.5 Curtailment. PacifiCorp is not obligated to purchase, receive, pay for, or pay any
damages associated with, Net Output not delivered to the System or Point of Delivery due to any
of the following: (a) the interconnection between the Facility and the System is disconnected,
suspended or intemrpted, in whole or in part, consistent with the terms of the Generation
Interconnection Agreement; (b) the Market Operator or Transmission Provider directs a general
curtailment, reduction, or redispatch of generation in the area (which would include the Net
Output) for any reason (excluding curtailment of purchases for general economic reasons
unilaterally directed by the Market Operator or PacifiCorp acting solely in its merchant function
capacity), even if and no maffer how such curtailment or redispatch directive is carried out by
PacifiCorp, which may fulfill such directive by acting in its sole discretion; or if PacifiCorp
curtails or otherwise reduces the Net Output in any way in order to meet its obligations to the
Market Operator or Transmission Provider to operate within system limitations; (c) the Facility's
Output is not received because the Facility is not fully integrated or synchronized with the
System; (d) an icing event within the immediate water source used as the Facility's primary
motive force; or (e) an event of Force Majeure prevents either Party from delivering or receiving
Net Output. Seller will reasonably determine the MWh amount of Net Output curtailed under
this Section 4.5 based on the amount of energy that could have been generated at the Facility and
delivered to PacifiCorp as Net Output but that was not generated and delivered because of the
curtailment. Seller must promptly provide PacifiCorp with access to such information and data
as PacifiCorp may reasonably require to confirm to its reasonable satisfaction the amount of
energy that was not generated or delivered because of a curtailment described in this Section 4.5.
4.6 PacifiCorp as Merchant. Seller acknowledges that PacifiCorp, acting in its
merchant capacity function as purchaser under this Agreement, has no responsibility for or
control over PacifiCorp Transmission, in either its capacity as Transmission Provider or
Interconnection Provider.
4.7 Ownership of Environmental Attributes. Tax Credits. Seller maintains ownership
of any Environmental Attributes associated with the Output and any Tax Credits associated with
the Output or the Facility.
4.8 Purchase and Sale of Capacitv Rights. Seller transfers to PacifiCorp, and
PacifiCorp accepts from Seller, any right, title, and interest that Seller may have in and to
Capacity Rights, if any, existing during the Term. Seller represents that it has not sold, and
covenants that during the Term it will not sell or attempt to sell to any other person or entity the
Capacity Rights, if any. During the Term, Seller must not report to any person or entity that the
Capacity Rights, if any, belong to anyone other than PacifiCorp. At PacifiCorp's request, Seller
must execute such documents and instruments as may be reasonably required to effect
recognition and transfer of the Net Output or any Capacity Rights to PacifiCorp.
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4.9 Energ.v Delivery Schedule. Seller shall prepare and provide to PacifiCorp, on an
ongoing basis, a written schedule of Net Energy expected to be delivered by the Facility
("Energy Delivery Schedule"), in accordance with the following:
From the Effective Date through the first twelve full calendar months following the Effective Date,
Seller predicts that the Facility will produce and deliver the following monthly amounts ("Initial
Energy Delivery Schedule"):
Month Enersv Delivery (kWh)
January
February
March
April
May
June
July
August
September
October
November
December
4s55s
4llll
s0000
63333
0
64444
70000
60000
52222
53333
54444
5llll
4.9.1
the Effective Date.
Seller may revise the Initial Energy Delivery Schedule any time prior to
4.9.2 On and after the Initial Delivery Date, the Seller may revise any future
monthly Energy Delivery Schedule with additional forward estimates (which shall be the
"Subsequent Energy Delivery Schedule") by providing written notice no later than 5 PM
Mountain Standard time on the 20th day of the month that is prior to the month to be revised. If
the 20th day of the month falls on a weekend or holiday, then written notice must be received on
the last business day prior to the 20th day of the month. For example. if the Seller would like to
revise the Energy Delivery Schedule for October, Seller must submit a revised schedule no later
than September 20th or the last business day prior to September 20th. PacifiCorp agrees that such
dates above shall be revised to the 25th day of the month that is prior to the rnonth to be revised
(or the last business day prior to the 25th of the month if the 25th falls on a weekend or holiday)
to the extent that PacifiCorp develops a web-based or other electronic noticing or scheduling
system for Seller to provide such estimates.
t7
a) This written notice must be provided to PacifiCorp in accordance with
Section 22.1, including the electronic notice provisions therein, or by other means of electronic
notice as agreed to by both parties.
b) Failure to provide timely written notice of changes to the Initial Energy
Delivery Schedule or, if applicable, the most recent Subsequent Energy Delivery Schedule will
be deemed to be an election of no change from the most recently provided Energy Delivery
Schedule
4.10 Adiustment of Delivery Schedule . In the event of either (i) a Qualiffing
Curtailment, or (ii) a Forced Outage lasting at least 48 hours and for which Seller provides notice
to PacifiCorp pursuant to Section 6.5.3 ("Qualiffing Outage"), the Scheduled Monthly Energy
Delivery will be adjusted,pro rata, ("Adjusted Scheduled Monthly Energy Delivery") for that
month to determine Conforming Energy and Non-Conforming Energy. The Adjusted Scheduled
Monthly Energy Delivery shall be calculated as follows:
sMED(adi): aMED- [' - zea- ' i =' "'ll\ f\ar DRtn ))
Where
SMED Scheduled Monthly Energy Delivery for the month in which the
Qualiff ing Curtailment(s) and/or Qualiff ing Outage(s) occur
Adjusted Scheduled Monthly Energy Delivery for the month in
which the Qualifying Curtailment(s) and/or Qualiffing Outage(s)
occur
the duration in hours of the Qualifuing Curtailment(s) and/or
Qualifu ing Outage(s) occur
total hours in the month in which Qualifuing Curtailment(s) and/or
Qualifuing Outage(s) occur
the Maximum Curtailed Facility Delivery Rate during the
Qualiffing Curtailment(s) and/or Qualiffing Outage(s) occur
the Maximum Facility Delivery Rate
a Qualiffing Curtailment and/or Qualiffing Outage
the number of Qualifuing Curtailment(s) and/or Qualiffing
Outage(s) in the month
SMED(adj)
Where Qualiffing Curtailments and/or Qualiffing Outages overlap, each distinct period of
overlap shall be calculated as a separate Qualifying Curtailment and/or Qualifuing Outage such
that no hour within a calendar month may figure into more than one Qualiffing Curtailment or
Qualifying Outage.
SECTION 5
Hci
HI
DRci
DRm
I
n
t8
CONTRACT PRICE; COSTS
5.1 Contract Price: Includes Capacitv Rights. Subject to the terms, conditions and
limitations set forth herein, PacifiCorp will pay Seller Conforming Energy or Non-Conforming
Energy Purchase Prices as applicable stated in Exhibit K and as described in this Section 5.1 for
all deliveries of Net Output adjusted for the month and On-Peak Hours or Off-Peak Hours and
Capacity Rights, up to the Maximum Delivery Rate.
5.2 Costs and Charees. Seller is responsible for paying or satisffing when due all
costs or charges imposed in connection with the scheduling and delivery of Net Output up to and
at the Point of Delivery, including transmission costs, transmission line lgsses, and any operation
and maintenance charges imposed by Interconnection Provider for the Interconnection Facilities.
Except as provided in Section 4.2,PacifrCorp is responsible for all costs or charges, if any,
imposed in connection with the delivery of Net Output at and from the Point of Delivery.
Without limiting the generality of the foregoing, Seller, in accordance with the Generation
Interconnection Agreement, is responsible for all costs associated with the modifications to
Interconnection Facilities or the System (including System upgrades) caused by or related to the
Facility.
5.3 Station Service. Seller is responsible for arranging and obtaining, at its sole risk
and expense, station service required for the Facility that is not provided by the Facility itself.
5.4 Taxes. Seller must pay, or reimburse PacifiCorp for, all existing and any new
sales, use, excise, severance, ad valorem, and any other similar taxes, imposed or levied by any
Governmental Authority on the Net Output or Capacity Rights up to and including the Point of
Delivery, regardless of whether such taxes are imposed on PacifiCorp or Seller under
Requirements of Law. PacifiCorp must pay, or reimburse Seller for, all such taxes imposed or
levied by any Governmental Authority on the Net Output or Capacity Rights beyond the Point of
Delivery, regardless of whether such taxes are imposed on PacifiCorp or Seller under
Requirements of Law. The Contract Price will not be adjusted on the basis of any action of any
Govemmental Authority with respect to changes to or revocations of sales and use tax benefits,
rebates, exception or give back. In the event any taxes are imposed on a Party for which the
other Party is responsible in this Agreement, the Party on which the taxes are imposed must
promptly provide the other Party notice and such other information as such Party reasonably
requests with respect to any such taxes.
t9
5.5 Costs of Ownership and Operation. Without limiting the generality of any other
provision of this Agreement and subject to Section 5.4, Seller is solely responsible for paying
when due (a) all costs of owning and operating the Facility in compliance with existing and
future Requirements of Law and the terms and conditions of this Agreement, and (b) all taxes
and charges (however characterized) now existing or later imposed on or with respect to the
Facility and its operation, including any tax or charge (however characteized) payable by a
generator of Environmental Attributes.
5.6 Rates Not Subject to Review. The rates for service specified in this Agreement
will remain in effect until expiration of the Term, and are not subject to change for any reason,
including regulatory review, absent agreement of the Parties. Neither Party will petition FERC
to amend such prices or terms, or support a petition by any other person seeking to amend such
prices or terms, absent the agreement in writing of the other Party. Further, absent the agreement
in writing by both Parties, the standard of review for changes to this Agreement proposed by a
Pu.ty, a non-party or the FERC acting sua sponte will be the "public interest" application of the
"just and reasonable" standard of review as described in United Gas Pipe Line Co. v. Mobile Gas
Service Corp., 350 U.S. 332 (1956), and Federal Power Commission v. Sierra Pacific Power Co.,
350 U.S. 348 (1956), and clarified by Morean Stanley Capital Group. Inc. v. Public Util. Dist.
No. I of Snohomish, 554 U.S. 527, 128 S. Ct.2733 (2008).
SECTION 6
OPERATION AIID CONTROL
6.1 As-Built Requirements: Facilitv Modifications. Subject to the terms of Section 6.8,
Seller may not begin construction or implementation of any modifications to the Facility that could
result in the Facility (i) deviating from the as-built description set forth in Exhibit B. (ii) switching
to a different type of qualiffing facility, (iii) changing its primary energy sources (e.g., non-
seasonal hydro, seasonal hydro, wind, solar and others), (iv) changing its generator fuel, (v)
increasing its Nameplate Capacity Rating beyond that stated in Exhibit B, or (vi) increasing its
expected annual Net Output, as calculated in Exhibit A, unless and until the following
requirements have been met:
(i) Seller has promptly notified PacifiCorp of its proposal to modiff the Facility;
(ii) Seller has provided PacifiCorp with detailed plans regarding its proposal to
modiff the Facility, including proposed revisions to the as-built description of the Facility set
forth in Exhibit B; and
(iii) The Parties have entered a written amendment to this Agreement to reflect such
modifications, pursuant to which, among other things, the incremental additionalNet Output will
be priced at the appropriate avoided cost rates in effect at the time of the amendment, which
amendment has been approved by the Commission ("Facility Mod Amendment").
No later than thirty (30) days following the date of substantial completion of any such
modification, Seller must provide PacifiCorp the As-Built Supplement which will be incorporated
into Exhibit B of this Agreement; provided that the Facility, as reflected in the As-Built
Supplement provided under this Section, may not deviate from the description of the authorized
modification(s) in the Facility Mod Amendment except, in each case, to the extent such deviations
20
are authorized under a subsequent Facility Mod Amendment that is executed and delivered by the
Parties and approved by the Commission.
Notwithstanding the foregoing, if modifications to the Facility, as reflected in the modified
As-Built Supplement, results in an additional project such that the Facility combined with the
additional project would be deemed a single QF or the same site under FERC regulations, Seller
may not require PacifiCorp to purchase (and PacifiCorp will have no obligation to purchase
pursuant to this Agreement) the output of any such additional facility under the terms, conditions,
and prices in this Agreement, as modified by the Facility Mod Amendment.
6.2 Standard of Facilitv Operation.
6.2.1 General. Seller will operate all interconnected equipment associated with
the Facility within its control in accordance with all applicable federal, state, and local laws and
regulations to ensure system safety and reliability of interconnected operations. At Seller's sole
cost and expense, Seller must operate, maintain and repair the Facility in accordance with (a) the
applicable and mandatory standards, criteria and formal guidelines of FERC, NERC, any RTO,
and any other Electric System Authority and any successors to the functions thereof; (b) the
Permits and Required Facility Documents; (c) the Generation Interconnection Agreement; (d) all
Requirements of Law; (e) the requirements of this Agreement; and (f) Prudent Electrical
Practice. Seller acknowledges that it has no claim under this Agreement against PacifiCorp with
respect to any requirements imposed by or damages caused by (or allegedly caused by) the
Transmission Provider or lnterconnection Provider or with respect to the provision of station
service.
6.2.2 Oualified Operator. Seller or an Affiliate of Seller must operate and
maintain the Facility or cause the Facility to be operated and maintained by an entity that has at
least two years of experience in the operation and maintenance of similar facilities of comparable
size to the Facility. Seller must provide PacifiCorp thirty (30) days prior written notice of any
change in operator of the Facility.
6.2.3 Fines and Penalties.
(a) Without limiting a Party's rights under Section 6.2.3(b), each Party
must pay all fines and penalties incurred by such Party on account of noncompliance by such
Party with Requirements of Law as such fines and penalties relate to the subject matter of this
Agreement, except where such fines and penalties are being contested in good faith through
appropriate proceedings.
(b) Iffines, penalties, or legal costs are assessed against or incurred by
either Party (the "Indemnified Party") on account of any action by any Governmental Authority
due to noncompliance by the other Party (the "lndemnifying Party") with any Requirements of
Law or the provisions of this Agreement, or if the performance of the Indemniffing Party is
delayed or stopped by order of any Governmental Authority due to the Indemniffing Party's
noncompliance with any Requirements of Law, the Indemniffing Party must indemniff and hold
harmless the Indemnified Party against any and all Liabilities suffered or incurred by the
Indemnified Party as a result thereof. Without limiting the generality of the foregoing, the
Indemnifuing Party must reimburse the Indemnified Party for all fees, damages, or penalties
2t
imposed on the Indemnified Party by any Governmental Authority, other person or to other
utilities for violations to the extent caused by a default by the lndemnifuingParty or a failure of
performance by the lndemniffing Party under this Agreement.
6.3 Interconnection. Seller is responsible for the costs and expenses associated with
obtaining from the Interconnection Provider network resource interconnection service (or
interconnection service of a comparable nature) for the Facility at its Nameplate Capacity Rating.
Seller has no claims under this Agreement against PacifiCorp, acting in its merchant function
capacity, with respect to any requirements imposed by or damages caused by (or allegedly
caused by) acts or omissions of the Transmission Provider or lnterconnection Provider, acting in
such capacities, in connection with the Generation Interconnection Agreement or otherwise.
6.4 Coordination with System. Seller's delivery of electricity to PacifiCorp under this
Agreement must be at a voltage, phase, power factor, and frequency as reasonably specified by
PacifiCorp. Seller will furnish, install, operate, and maintain in good order and repair, and
without cost to PacifiCorp, such switching equipment, relays, locks and seals, breakers,
automatic synchronizers, and other control and protective apparatus determined by PacifiCorp to
be reasonably necessary for the safe and reliable operation of the Facility in parallel with the
System, or Seller may contract with PacifiCorp to do so at the Seller's expense. PacifiCorp must
at all times have access to all switching equipment capable of isolating the Facility from the
System.
6.5 Outages.
6.5.1 Planned Outages. Seller must provide PacifiCorp with an annual forecast
of Planned Outages for each Contract Year at least one month, but no more than three months,
before the first day of that Contract Year, and may update such Planned Outage schedule as
necessary to comply with Prudent Electrical Practices. Any such update to the Planned Outage
schedule must be promptly submitted to PacifiCorp. Except as may be required in the
Generation Interconnection Agreement, Seller may not schedule a Planned Outage during any
portion of the months of December and July, except to the extent reasonably required to enable a
vendor to satisff a guarantee requirement.
6.5.2 Maintenance Outages. If Seller reasonably determines that it is necessary
to schedule a Maintenance Outage, Seller must notifu PacifiCorp of the proposed Maintenance
Outage as soon as practicable but in any event at least five (5) days before the outage begins.
Seller must take all reasonable measures consistent with Prudent Electrical Practices to not
schedule any Maintenance Outage during the months of December and July. Notice of a
proposed Maintenance Outage by Seller must include the expected start date and time of the
outage, the amount of generation capacity of the Facility that will not be available, and the
expected completion date and time of the outage. PacifiCorp will promptly respond to such
notice and may request reasonable modifications in the schedule for the outage. Seller must use
all reasonable efforts to comply with any request to modiff the schedule for a Maintenance
Outage provided that such change has no substantial impact on Seller. Once the Maintenance
Outage has commenced, Seller must keep PacifiCorp apprised of any changes in the generation
capacity available from the Facility during the Maintenance Outage and any changes in the
expected Maintenance Outage completion date and time. As soon as practicable, any
22
notifications given orally must be confirmed in writing. Seller must take all reasonable measures
consistent with Prudent Electrical Practices to minimize the frequency and duration of
Maintenance Outages.
6.5.3 Forced Outages. Seller must promptly provide to PacifiCorp an oral
report, via telephone to a number specified by PacifiCorp (or other method approved by
PacifiCorp), of any Forced Outage resulting in more than ten percent (10%) of the Nameplate
Capacity Rating of the Facility being unavailable. This report from Seller must include the
amount of the generation capacity of the Facility that will not be available because of the Forced
Outage and the expected return date of such generation capacity. Seller must promptly update
the report as necessary to advise PacifiCorp of changed circumstances. As soon as practicable,
the oral report must be confirmed in writing to PacifiCorp. Seller must take all reasonable
measures consistent with Prudent Electrical Practices to avoid Forced Outages and to minimize
their duration.
6.5.4 Notice of Deratings and Outages. Without limiting the foregoing, Seller
will inform PacifiCorp, via telephone to a number specified by PacifiCorp (or other method
approved by PacifiCorp), of any limitations, restrictions, deratings or outages reasonably
predicted by Seller to affect more than five percent (5%) of the Nameplate Capacity rating of the
Facility for the following day and will promptly update such notice to the extent of any material
changes in this information.
6.5.5 Effect of Outages on Estimated Outout. Seller represents and warrants
that the Expected Monthly Net Output provided in Exhibit A takes into account the Planned
Outages, Maintenance Outages, and Forced Outages that Seller reasonably expects to encounter
in the ordinary course of operating the Facility.
6.6 Scheduling.
6.6.1 Cooperation and Standards. With respect to any and all scheduling
requirements, (a) Seller must cooperate with PacifiCorp with respect to scheduling Net Output,
and (b) each Party will designate authorized representatives to communicate with regard to
scheduling and related matters arising under this Agreement. Each Party must comply with the
applicable variable resource standards and criteria of any applicable Electric System Authority,
as applicable.
6.6.2 Schedule Coordination. Il as a result of this Agreement, PacifiCorp is
deemed by an RTO to be financially responsible for Seller's performance under the Generation
Interconnection Agreement due to Seller's lack of standing as a "scheduling coordinator" or
other RTo-recognized designation, qualification or otherwise, then Seller must promptly take all
actions necessary to acquire such RTO-recognized standing (or must contract with a third party
who has such RTO-recognized standing) so that PacifiCorp is no longer responsible for Seller's
performance under the Generation Interconnection Agreement or RTO requirement.
6.7 Forecastins.
6.7.1 Long-Range Forecasts. Seller must, by December I't of each year during
23
the Term (except for the last year of the Term), provide an annual update to the expected long-
term monthly/diurnal mean net energy and net capacity factor estimates (12 X 24 profile). Seller
must prepare such forecasts utilizing a renewable energy resource prediction model or service
that is satisfactory to PacifiCorp in the exercise of its reasonable discretion and comparable in
accuracy to models or services commonly used in the industry. The forecasts provided by Seller
must comply with all applicable Electric System Authority tariff procedures, protocols, rules and
testing as necessary and as may be modified from time to time.
6.8 Net Output Above Maximum Delivery Rate: New Project Expansion or
Development. PacifiCorp is not required to purchase any Net Output above the Maximum
Delivery Rate. If Seller builds an expansion or additional project such that the Facility combined
with the expansion or additional project would be deemed a single QF or the same site under
FERC regulations, Seller may not require PacifiCorp to purchase (and PacifiCorp will have no
obligation to purchase pursuant to this Agreement) the output of any such expansion or
additional facility under the terms, conditions, and prices in this Agreement. Instead, Seller may
exercise any rights to enter into a new agreement for the sale of such incremental energy from
such additional facility that is a QF under then-applicable laws and regulations.
6.9 Telemetering.
6.9.1 If the Facility has a Nameplate Capacity Rating above 3 MW, Seller must
provide telemetering or other cellular or web-based equipment and facilities capable of
transmitting the following information concerning the Facility pursuant to the Generation
Interconnection Agreement and to PacifiCorp on a real-time basis, and will operate such
equipment when requested by PacifiCorp to indicate:
(a) instantaneous MW output at the Point of Delivery;
(b) Net Output; and
(c) the Facility's total instantaneous generation capacity.
Commencing on the date of initial deliveries under this Agreement, Seller must also transmit or
otherwise make accessible to PacifiCorp any other data from the Facility that Seller receives on a
real time basis, including Net Output data. Such real time data must be made available to
PacifiCorp on the same basis as Seller receives the data (e.g., if Seller receives the data in four
second intervals, PacifiCorp must also receive the data in four second intervals). If Seller uses a
web-based performance monitoring system for the Facility, Seller must provide PacifiCorp
access to Seller's web-based performance monitoring system.
24
6.9.2 If the Facility has a Nameplate Capacity Rating less than or equal to 3
MW, Seller must install communication and meter equipment to enable electronic meter reading
capability, or Seller will be billed for monthly manual meter reads subject to Section l0 at a rate
of $500 per month during the Term.
6.10 Transmission Provider Consent. Within ten (10) days of the Effective Date,
Seller must execute and submit to PacifiCo1p, a consent in the form provided in Exhibit H or as
otherwise required by Transmission Provider, that allows PacifiCorp to read the meter and
receive any and all data from the Transmission Provider relating to transmission of Output or
other matters relating to the Facility without the need for further consent from Seller.
6.1I Dedicated Communication Circuit. Seller must install a dedicated direct
communication circuit (which may be by common carrier telephone), or cellular or web-based
equipment, between PacifiCorp and the control center in the Facility's control room or such
other communication equipment as the Parties may agree, if requested by PacifiCorp.
6.12 Reports and Records.
6.12.1 Electronic Fault Loe. Seller must maintain an electronic fault log of
operations of the Facility during each hour of the Term commencing on the Initial Delivery Date.
Seller must provide PacifiCorp with a copy of the electronic fault log within thirty (30) days after
the end of the calendar month to which the fault log applies.
6.12.2 Information to Govemmental Authorities. Seller must, promptly upon
written request from PacifiCorp, provide PacifiCorp with data collected by Seller related to the
construction, operation or maintenance of the Facility reasonably required for reports to any
Governmental Authority or Electric System Authority, along with a statement from an officer of
Seller certi$ing that the contents of the submittals are true and accurate to the best of Seller's
knowledge. Seller must use best efforts to provide this information to PacifiCorp sufficiently in
advance to enable PacifiCorp to review such information and meet any submission deadlines.
PacifiCorp will reimburse Seller for all of Seller's reasonable actual costs and expenses in excess
of $5,000 per year, if any, incurred in connection with PacifiCorp's requests for information
under this subsection.
6.12.3 Other Information to be Provided to PacifiCorp. At any time from the
Effective Date, one year's advance notice of the termination or expiration of any material
agreement, including Leases, pursuant to which the Facility or any material equipment relating
thereto is upon the Premises; provided that the foregoing does not authorize any early
termination of any land lease. In the event Seller has less than one year's advance notice of such
termination or expiration, Seller shall provide the notice contemplated by this Section to
PacifiCorp within fifteen (15) Business Days of Seller obtaining knowledge of the termination or
expiration.
6.12.4 Data Request. Seller must, promptly upon written request from
PacifiCorp, provide PacifiCorp with data collected by Seller related to the construction,
operation or maintenance of the Facility reasonably required for information requests from any
Governmental Authorities, state or federal agency intervener or any other party achieving
25
intervenor status in any PacifiCorp rate proceeding or other proceeding before any Governmental
Authority. Seller must use best efforts to provide this information to PacifiCorp sufficiently in
advance to enable PacifiCorp to review such date and meet any submission deadlines.
PacifiCorp will reimburse Seller for all of Seller's reasonable actual costs and expenses in excess
of $5,000 per year, if any, incurred in connection with PacifiCorp's requests for information
under this subsection.
6.12.5 Documents to Governmental Authorities. After sending or filing any
statement, application, and report or any document with any Governmental Authority or Electric
System Authority relating to operation and maintenance of the Facility, Seller must promptly
provide to PacifiCorp a copy of the same.
6.12.6 Notice of Material Adverse Events. Seller must promptly noti$
PacifiCorp of receipt of written notice or actual knowledge by Seller or its Affiliates of the
occurrence of any event of default under any material agreement to which Seller is a party and of
any other development, financial or otherwise, which would have a material adverse effect on
Seller, the Facility, or Seller's ability to develop, construct, operate, maintain or own the Facility,
including any material violation of any environmental laws or regulations arising out of the
construction or operation of the Facility, or the presence of Environmental Contamination at the
Facility or on the Premises.
6.12.7 Notice of Litigation. Following its receipt of written notice or knowledge
of the commencement of any action, suit, or proceeding before any court or Governmental
Authority against Seller, its members, or any Affiliate relating to the Facility or this Agreement,
or that could materially and adversely affect Seller's performance of its obligations in this
Agreement, Seller must promptly notifu PacifiCorp.
6.12.8 Additional Information. Seller must provide to PacifiCorp such other
information as relevant to Seller's performance of its obligations under this Agreement or the
Facility as PacifiCorp may, from time to time, reasonably request.
6.12.9 Confidential Treatment. The reports and other information provided to
PacifiCorp under this Section 6.12 will be treated as confidential if such treatment is requested in
writing by Seller at the time the information is provided to PacifiCorp, subject to PacifiCorp's
rights to disclose such information pursuant to Sections 6.12.3 and 6.12.4, and pursuant to any
applicable Requirements of Law. Seller will have the right to seek confidential treatment of any
such information from any Governmental Authority entitled to receive such information.
26
6.13 Financial and Accounting Information. If PacifiCorp or one of its Affiliates
determines that, under (a) the Accounting Standards Codification (ASC) 810, Consolidation of
Variable Interest Entities, and (b) Requirements of Law that it may hold a variable interest in
Seller, but it lacks the information necessary to make a definitive conclusion, Seller agrees to
provide, upon PacifiCorp's written request, sufficient financial and ownership information so
that PacifiCorp or its Affiliate may confirm whether a variable interest does exist under ASC 810
and Requirements of Law. If PacifiCorp or its Affiliate determines that, under ASC 810, it holds
a variable interest in Seller, Seller agrees to provide, upon PacifiCorp's written request, sufficient
financial and other information to PacifiCorp or its Affiliate so that PacifiCorp may properly
consolidate the entity in which it holds the variable interest or present the disclosures required by
ASC 810 and Requirements of Law. PacifiCorp will reimburse Seller for Seller's reasonable
costs and expenses, if any, incurred in connection with PacifiCorp's requests for information
under this Section 6.13. Seller will have the right to seek confidential treatment of any such
information from any Governmental Authority entitled to receive such information.
6.14 Access Riehts. Upon reasonable prior notice and subject to the prudent safety
requirements of Seller, and Requirements of Law relating to workplace health and safety, Seller
must provide PacifiCorp and its authorized agents, employees and inspectors ("PacifiCorp
Representatives") with reasonable access to the Facility: (a) for the purpose of reading or testing
metering equipment, (b) as necessary to witness any acceptance tests, and (c) for other
reasonable purposes at the reasonable request of PacifiCorp. PacifiCorp will release Seller from
any and all Liabilities resulting from actions or omissions by any of the PacifiCorp
Representatives in connection with their access to the Facility, except to the extent such
Liabilities are caused by the intentional or negligent act or omission of Seller or its agents or
Affiliates.
SECTION 7
QUALIFYING FACILITY STATUS
7.1 Seller's OF Status. Seller must maintain throughout the Term the Facility's status
as a QF. Seller must provide PacifiCorp with copies of any QF certification or recertification
documentation within ten (10) days of its filing with any Governmental Authority. At any time
during the Term, PacifiCorp may require Seller to provide PacifiCorp with evidence satisfactory
to PacifiCorp in its reasonable discretion that the Facility continues to qualiff as a QF under all
applicable requirements. Any Seller seeking QF status for a generating facility with a net power
production capacity I MW or less is exempt from the certification requirement and is therefore
not required to complete or file a Form 556 in accordance with l8 C.F.R. 5 292.203
SECTION 8
SECURITY AND CREDIT SUPPORT
Reserved.
27
SECTION 9
METERING
9.1 Installation of Metering Equipment. At Seller's expense, metering equipment
must be designed, furnished, installed, owned, inspected, tested, maintained and replaced as
provided in the Generation Interconnection Agreement. Seller must reasonably cooperate with
PacifiCorp in developing any metering protocols necessary for PacifiCorp to comply with the
requirements of the Market Operator.
9.2 Metering. Metering must be performed at the location and in the manner
specified in Exhibit C, the Generation lnterconnection Agreement, and as necessary to perform
Seller's obligations under this Agreement. All quantities of Net Output purchased must reflect
the net amount of energy flowing onto the System at the Point of Delivery.
9.3 lnspection. Testing. Repair and Replacement of Meters. PacifiCorp has the right
to periodically inspect, test, repair and replace the metering equipment that is provided for in the
Generation Interconnection Agreement, without PacifiCorp assuming any obligations of Seller
under the Generation Interconnection Agteement. If any of the inspections or tests disclose an
error exceeding 0.5 percent (0.5yo), either fast or slow, the necessary corrections will be made of
previous readings for the actual period during which the metering equipment rendered inaccurate
measurements if that period can be ascertained. If the actual period of error cannot be
ascertained, the corrections will be made for the entire time period since the metering equipment
was last inspected and verified accurate, not to exceed three (3) months. Any corrections under
this Section 9.3 will be reflected as an adjustment in the next monthly invoice.
9.4 Metering Costs. To the extent not otherwise provided in the Generation
lnterconnection Agreement, Seller is responsible for all costs relating to all metering equipment
installed to accommodate Seller's Facility.
9.5 WREGIS Meterine. Seller must cause the Facility to implement all necessary
generation information communications in WREGIS, and report generation information to
WREGIS, which may be accomplished by executing a QRE agreement with PacifiCorp the
current form of which is attached as Exhibit G, pursuant to a WRECIS-approved meter dedicated
to the Facility and only the Facility.
SECTION TO
BILLINGS, COMPUTATIONS AI\D PAYMENTS
l0.l Monthly Invoices. On or before the thirtieth (30th) day following the end of each
Billing Period, PacifiCorp shall send to Seller payment for Seller's deliveries of Net Output to
PacifiCorp, together with computations supporting such payment.
10.2 Offsets. Either Party may offset any payment due under this Agreement against
amounts owed by the other Party pursuant under this Agreement. Either Party's exercise of
recoupment and set off rights will not limit the other remedies available to such Party under this
Agreement.
28
10.3 Reactive Power Service Compensation. The compensation that Seller receives
from PacifiCorp under this Agreement includes full compensation for Seller's fixed costs for
providing reactive power service. Therefore, Seller shall not file a rate schedule at FERC for
reactive power compensation payable prior to expiration of the Term or the earlier termination of
this Agreement.
10.4 Ancillary Services Comoensation. The compensation that Seller receives from
PacifiCorp under this Agreement includes full compensation for Seller's fixed and variable costs
for providing ancillary services. Compensation for reactive power service is addressed in
Section 10.3 and not this Section 10.4.
10.5 Interest on Late Payments. Any amounts not paid when due under this
Agreement will bear interest at the Contract Interest Rate from the date due until paid.
10.6 Disputed Amounts. If either Purty, in good faith, disputes any amount due under
an invoice provided under this Agreement, such Party must notifr the other Party of the specific
basis for the dispute and, if the invoice shows an amount due, must pay that portion of the
invoice that is undisputed on or before the due date. Any such notice of dispute must be
provided within two (2) years of the date of the invoice in which the error first occurred. If any
amount disputed by such Party is determined to be due the other Pu.ty, or if the Parties resolve
the payment dispute, the amount due must be paid within five (5) Business Days after such
determination or resolution, along with interest at the Contract Interest Rate from the date due
until the date paid.
10.7 Audit Rights. Each Purty, through its authorized representatives, has the right, at
its expense upon reasonable notice and during normal business hours, to examine and copy the
records ofthe other Party to the extent reasonably necessary to verifu the accuracy ofany
statement, charge or computation made under this Agreement or to veriff the other Party's
performance of its obligations under this Agreement. Upon request, each Party must provide to
the other Party statements evidencing the quantities of Net Output delivered at the Point of
Delivery. If any statement is found to be inaccurate, a corrected statement will be issued and,
subject to Section 10.4, any amount due one Party to the other Party as a result of the corrected
statement will be promptly paid including the payment of interest at the Contract lnterest Rate
from the date of the overpayment or underpayment to the date of receipt of the reconciling
payment.
SECTION 11
DEFAULTS AI\D REMEDIES
I l.l Defaults. The following events are defaults under this Agreement, and are
"Events of Defaults" after the passing of notice and cure periods, as applicable:
I I .l .l Defaults by Either Paqv.
(a) A Party fails to make a payment when due under this Agreement if
the failure (i) is not the subject of a good faith dispute under Section 10.4, and (ii) is not cured
29
within ten (10) Business Days after the non-defaulting Party gives the defaulting Party a notice
of the default.
(b) A Party (i) makes a general assignment for the benefit of its
creditors; (ii) files a petition or otherwise commences, authorizes or acquiesces in the
commencement of a proceeding or cause of action under any bankruptcy or similar law for the
protection of creditors, or has such a petition filed against it and such petition is not withdrawn or
dismissed within sixty (60) days after such filing; (iii) becomes insolvent; or (iv) is unable to pay
its debts when due.
(c) A Party breaches a representation or warranty in this Agreement if
the breach is not cured within thirty (30) days after the non-defaulting Party gives the defaulting
Party a notice of the default; ry4!91!, however, that if such default is not reasonably capable of
being cured within the thirty (30) day cure period but is reasonably capable of being cured within
ninety (90) days, the defaulting Party will have an additional reasonable time to cure the default,
not to exceed ninety (90) days following the date of notice of the default by the non-defaulting
Purty, if the defaulting Parfy provides to the non-defaulting Party a remediation plan within
fifteen (15) days following the date of notice of the default by the non-defaulting Party, the non-
defaulting Party approves such remediation plan, and the defaulting Party promptly commences
and diligently pursues the remediation plan.
(d) A Party fails to perform any material obligation in this Agreement
for which an exclusive remedy is not provided in the Agreement and which is not otherwise an
identified Event of Default in this Agreement, if the failure is not cured within thirty (30) days
after the non-defaulting Party gives the defaulting Party notice of the default; ptovided, however,
that if such default is not reasonably capable of being cured within the thirty (30) day cure period
but is reasonably capable of being cured within ninety (90) days, the defaulting Party will have
an additional reasonable time to cure the default, not to exceed ninety (90) days following the
date of notice of the default by the non-defaulting Party, if the defaulting Party provides to the
non-defaulting Party a remediation plan within fifteen (15) days following the date of notice of
the default by the non-defaulting Party, the non-defaulting Party approves such remediation plan,
and the defaulting Party promptly commences and diligently pursues the remediation plan.
ll.l.2 Defaults bv Seller.
(a) The Initial Delivery Date does not occur by the later to occur of the
Effective Date or the Scheduled Initial Delivery Date or Seller sells Output or Capacity Rights
from the Facility to a party other than PacifiCorp in breach of Section 4.3, if Seller does not
cause the Initial Delivery Date to occur or perrnanently cease such sale, as applicable, within ten
(10) days after PacifiCorp gives Seller a notice of default.
(b) PacifiCorp receives notice of foreclosure of the Facility or any part
thereof by a Lender, mechanic or materialman, or any other holder, of an unpaid lien or other
charge or encumbrance, if the same has not been stayed, paid, or bonded around within ten (10)
days of the date of the notice received by PacifiCorp.
30
(c) Seller fails to maintain any Required Facility Documents or
Permits necessary to own or operate the Facility and is not able to obtain the necessary Required
Facility Documents or Permits within ninety (90) days after the loss of the applicable Required
Facility Documents or Permits.
(d) Seller's Abandonment of construction or operation of the Facility
and such failure continues for thirty (30) days after Seller's receipt of written notice from
PacifiCorp.
(e) Seller fails to maintain insurance as required by the Agreement and
such failure continues for fifteen (15) days after Seller's receipt of written notice from
PacifiCorp.
(0 Seller fails to satisff the requirement to maintain QF status under
Section 7.1.
(g) With respect to any modification to the Facility, Seller fails to
comply with its obligations under Section 6.1, including the failure to notify PacifiCorp of any
modification to the Facility.
ll.2 Remedies for Failure to Deliver/Receive.
ll.2.l Remedv for Seller's Failure to Deliver. Upon the occurrence and during
the continuation of a default of Seller under Section ll .l .2(a), Seller must pay PacifiCorp within
five (5) Business Days after receipt of invoice, an amount equal to the sum of (a) PacifiCorp's
Cost to Cover multiplied by the Net Output delivered to a party other than PacifiCorp, (b)
additional transmission charges, if any, reasonably incurred by PacifiCorp in moving
replacement energy to the Point of Delivery or if not there, to such points in PacifiCorp's control
area as determined by PacifiCorp, and (c) any additional cost or expense incurred as a result of
Seller's default, as determined by PacifiCorp in a commercially reasonable manner. The invoice
for such amount must include a written statement explaining in reasonable detail the calculation
of such amount.
11.2.2 Remed), for PacifiCorp's Failure to Purchase. If PacifiCorp fails to
receive or purchase all or part of the Net Output required to be purchased under this Agreement
and such failure is not excused by Seller's failure to perform under or comply with this
Agreement, then PacifiCorp must pay Seller, on the earlier of the date payment would otherwise
be due in respect of the month in which the failure occurred or within five (5) Business Days
after receipt of invoice, an amount equal to Seller's Cost to Cover multiplied by the amount of
Net Output not purchased. The invoice for such amount must include a written statement
explaining in reasonable detail the calculation of such amount.
11.2.3 Remedy for Seller's Failure to Provide Capacitv Riehts. Seller is liable
for PacifiCorp's actual damages in the event Seller fails to sell or deliver all or any portion of the
Capacity Rights to PacifiCorp.
11.2.4 Remedy for Seller's Failure to Achieve Timely Initial Delivery Date.
3l
Upon the occurrence of a Seller Event of Default under Section I I .l .2(a) for failure to achieve a
timely Initial Delivery Date, PacifiCorp shall be entitled to, at its election, upon notice to Seller,
update the pricing set forth in Exhibit K to this Agreement based on then-current pricing, and
Seller shall have until July 1,2023, or ninety (90) days after the Effective Date, whichever is
later, to cure any failure to achieve Initial Delivery before PacifiCorp will have the right to
terminate this Agreement under Section I 1.3.
I 1.3 Termination and Remedies.
From and during the continuance of an Event of Default, the non-defaulting Party will
be entitled to all remedies available at law or in equity, except as otherwise specified herein, may
terminate this Agreement by notice to the other Party designating the date of termination and
delivered to the defaulting Party no less than fifteen (15) days before such termination date. The
notice required under this Section I 1.3 may be provided in the notice of default (and does not
have to be a separate notice) provided it complies with the terms of this Section I 1.3. Seller
must provide copies of such termination notice to the notice addresses of the then-current
President and General Counsel of PacifiCorp by registered overnight delivery service or by
certified or registered mail, retum receipt requested. Seller's termination notice must state
prominently in type font no smaller than l4-point capital leffers that "THIS IS A
TERMINATION NOTICE UNDER A PPA. YOU MUST CURE A DEFAI.JLT, OR THE PPA
WLL BE TERMINATED," must state any amount alleged to be owed, and must include wiring
instructions for payment. Notwithstanding any other provision of this Agreement to the
contrary, Seller will not have any right to terminate this Agreement if the default that gave rise to
the termination right is cured within fifteen (15) days of PacifiCorp's receipt of such notice.
Further, from and after the date upon which Seller fails to remedy a default within the time
periods provided in this Agreement, and until PacifiCorp has recovered all damages incurred on
account of such default by Seller, PacifiCorp may offset its damages against any payment due
Seller. Except in circumstances in which a remedy provided for in this Agreement is described
as a Party's sole or exclusive remedy, the non-defaulting Party may pursue any and all legal or
equitable remedies provided by law, equity or this Agreement. The rights contemplated by this
Section I I are cumulative such that the exercise of one or more rights does not constitute a
waiver of any other rights. In the event of a termination of this Agreement:
(a) Each Party must pay to the other all amounts due the other under
this Agreement for all periods prior to termination, subject to offset by the non-defaulting Party
against damages incurred by such Party.
(b) The amounts due under this Section I 1.3 must be paid within thirty
(30) days after the billing date for such charges and will bear interest at the Contract Interest
Rate from the date of termination until the date paid. The foregoing does not extend the due date
of, or provide an interest holiday for any payments otherwise due under this Agreement.
(c) Without limiting the generality of the foregoing, all provisions of
this Agreement that either expressly by their terms survive, or, by their nature are intended to
survive or come into or continue in force and effect after the termination or expiration of this
Agreement shall remain in effect.
32
I 1.4 Termination of Dutv to Buy. If this Agreement is terminated because of a default
by Seller, neither Seller nor any Affiliate or successor to Seller with respect to the ownership of
the Facility or Premises, may thereafter require or seek to require PacifiCorp to make any
purchases from the Facility or any electric generation facility constructed on the Premises under
PURPA, or any other Requirements of Law, for any periods that would have been within the
Term had this Agreement remained in effect for its maximum term. Seller agrees that it will not
seek to avoid the restrictions in this Section I 1.4 through use or establishment of a special
purpose entity or other Affiliate.
I1.5 Termination Damases. tf this Agreement is terminated by PacifiCorp as a result
of an Event of Default by Seller, termination damages owed by Seller to PacifiCorp will be the
positive difference, if any, between (a) PacifiCorp's estimated costs to secure replacement power
for a period of twenty four (24) months following the date of termination, including any
associated transmission necessary to deliver such replacement power; and (b) the Contract Price
for such twenty four (24) month period ("Termination Damages"). PacifiCorp must calculate the
Termination Damages in a commercially reasonable manner and provide to Seller a written
statement explaining in reasonable detail the calculation of Termination Damages. Amounts
owed pursuant to this Section I I .5 are due by Seller within ten ( I 0) Business Days after receipt
of the written statement of Termination Damages from PacifiCorp. Each Party agrees and
acknowledges that the damages that PacifiCorp would incur due to Seller's Event of Default
would be difficult or impossible to predict with certainty, it is impractical and difficult to assess
actual damages in the circumstances stated, and therefore the Termination Damages as agreed to
in this Section I 1.5 are a fair and reasonable calculation of such damages
I 1.6 Dutv/Right to Mitigate. Each Party agrees that it has a duty to mitigate damages
and covenants that it will use commercially reasonable efforts to minimize any damages it may
incur as a result of the other Party's performance or non-performance. With respect to Seller,
Seller must use commercially reasonable efforts to maximize the price for Net Output received
by Seller from third parties, including entering into an enabling agreement with, or being
affiliated with, one or more power marketers of nationally recognized standing to market such
Net Output not purchased or accepted by PacifiCorp (only during a period PacifiCorp is in
default), to the extent permitted by Requirements of Law and the Generation Interconnection
Agreement. With respect to PacifiCorp, PacifiCorp must use commercially reasonable efforts to
minimize the price paid to third parties for energy purchased to replace Net Output not delivered
by Seller as required under this Agreement.
ll.7 Securitv. If this Agreement is terminated because of Seller's default, PacifiCorp
may, in addition to pursuing any and all other remedies available at law or in equity, proceed
against any security held by PacifiCorp in whatever form to reduce the amounts that Seller owes
PacifiCorp arising from such default.
I 1.8 Cumulative Remedies. Except in circumstances in which a remedy provided for
in this Agreement is described as a sole or exclusive remedy, the rights and remedies provided to
PacifiCorp in this Agreement are cumulative and not exclusive of any rights or remedies of
PacifiCorp.
JJ
SECTION 12
INDEMNIFICATION AI\D LIABILITY
12.l Indemnities.
l2.l.l Indemnit), b), Seller. To the extent permi6ed by Requirements of Law and
subject to Section l2.l .5, Seller releases, indemnifies and holds harmless PacifiCorp, its
divisions, Affiliates, and each of its and their respective directors, officers, employees, agents,
and representatives (collectively, the "PacifiCorp Indemnitees") against and from any and all
losses, fines, penalties, claims, demands, damages, liabilities, actions or suits of any nature
whatsoever (including legal costs and attorneys' fees, both at trial and on appeal, whether or not
suit is brought) (collectively, "Liabilities") actually or allegedly resulting from, arising out of, or
in any way connected with, the performance by Seller of its obligations under this Agreement, or
relating to the Facility or Premises, for or on account of injury, bodily or otherwise, to, or death
of, or damage to, or destruction or economic loss of property of, any person or entity, except for
Liabilities caused by the gross negligence or willful misconduct of any person or entity within
the PacifiCorp Indemnitees. Seller is solely responsible for (and will defend and hold PacifiCorp
harmless against) any damage that may occur as a direct result of Seller's breach of the
Generation Interconnection Agreement.
12.1.2 tndemnitv by PacifiCorp. To the extent permitted by Requirements of
Law and subject to Section 12.1.5, PacifiCorp releases, indemnifies and holds harmless Seller, its
Affiliates, and each of its and their respective directors, officers, employees, agents, and
representatives (collectively, the "Seller Indemnitees") against and from any and all Liabilities
actually or allegedly resulting from, arising out of, or in any way connected with, the
performance by PacifiCorp of its obligations under this Agreement for or on account of injury,
bodily or otherwise, to, or death of, or damage to, or destruction or economic loss of property of,
any person or entity within the Seller Indemnitees, except for Liabilities caused by the gross
negligence or willful misconduct of any person or entity within the Seller lndemnitees.
12.1.3 Additional Cross Indemnitv. Without limiting Sections l2.l.l and 12.1.2,
Seller releases, indemnifies and holds harmless the PacifiCorp Indemnitees from and against all
Liabilities related to Net Output prior to its delivery by Seller at the Point of Delivery, and
PacifiCorp releases, indemnifies and holds harmless the Seller Indemnitees from and against all
Liabilities related to Net Output once delivered to PacifiCorp at the Point of Delivery as
provided in this Agreement, except in each case to the extent such Liabilities are attributable to
the gross negligence, willful misconduct, or a breach of this Agreement by any member of the
PacifiCorp Indemnitees or the Seller lndemnitees, respectively, seeking indemnification under
this Agreement.
12.1.4 No Dedication. Nothing in this Agreement will be construed to create any
duty to, any standard of care with reference to, or any liability to any person not a Party. No
undertaking by one Party to the other under any provision of this Agreement will constitute the
dedication of PacifiCorp's facilities or any portion thereof to Seller or to the public, nor affect
the status of PacifiCorp as an independent public utility corporation or Seller as an independent
individual or entity.
34
12.1.5 Consequential Damages. NEITHERPARTY WILL BE LIABLE TO
THE OTHER PARTY FOR SPECIAL, PUMTIVE,INDIRECT, EXEMPLARY OR
CONSEQUENTIAL DAMAGES, WHETHER SUCH DAMAGES ARE ALLOWED OR
PROVIDED BY CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT
LIABILITY, STATUTE OR OTHERWISE. TIIE PARTIES AGREE THAT AI\Y
LIQTIIDATED DAMAGES, TERMINATION DAMAGES, PACIFICORP AND SELLER
COST TO COVER DAMAGES, OR OTHER SPECIFIED MEASURE OF DAMAGES
EXPRESSLY PROYIDED FOR IN THIS AGREEMENT DO NOT REPRESENT
SPECIAL, PUNITIVE, INDIRECT, EXEMPLARY OR CONSEQUENTIAL DAMAGES
AS CONTEMPLATED IN THIS PARAGRAPH.
35
SECTION 13
INSURANCE
l3.l Required Policies and Coverages. Without limiting any Liabilities or any other
obligations of Seller, Seller must secure and continuously carry the insurance coverage specified
on Exhibit I.
SECTION 14
FORCE MAJEURE
l4.l Definition of Force Majeure. "Force Majeure" or o'an event of Force Majeure"
means an event that prevents a Party from performing an obligation under this Agreement and
that (a) is not reasonably anticipated as of the Effective Date, (b) is not within the reasonable
control of the Party affected by the event, (c) is not the result of such Party's negligence or
failure to act, and (d) could not be overcome by the affected Party's use of due diligence in the
circumstances. Force Majeure includes events of the following types (but only to the extent that
such an event, in consideration of the circumstances, satisfies the requirements in the preceding
sentence): environmental disasters,; civil disturbance; sabotage; strikes; lock-outs; work
stoppages; and action or restraint by court order or public or Govemmental Authority (as long as
the affected Party has not applied for or assisted in the application for, and has opposed to the
extent reasonable, such court or government action). Notwithstanding the foregoing, none of the
following constitute Force Majeure: (i) Seller's ability to sell, or PacifiCorp's ability to purchase
energy or capacity at a more advantageous price than is provided under this Agreement; (ii) the
cost or availability of fuel or motive force to operate the Facility; (iii) economic hardship,
including lack of money or the increased cost of electricity, steel, labor, or transportation; (iv)
any breakdown or malfunction of the Facility's equipment (including any serial equipment
defect) that is not caused by an independent event of Force Majeure; (v) the imposition upon a
Party of costs or taxes; (vi) delay or failure of Seller to obtain or perform any Required Facility
Document unless due to a Force Majeure event; (vii) any delay, alleged breach of contract, or
failure by the Transmission Provider or Interconnection Provider unless due to a Force Majeure
event; (viii) maintenance upgrade or repair of any facilities or right of way corridors constituting
part of or involving the Interconnection Facilities, whether performed by or for Seller, or other
third parties (except for repairs made necessary as a result of an event of Force Majeure); (ix)
Seller's failure to obtain, or perform under, the Generation Interconnection Agteement, or its
other contracts and obligations to transmission owner, Transmission Provider or Interconnection
Provider, unless due to a Force Majeure event; or (x) any event attributable to the use of
Interconnection Facilities for deliveries of Net Output to any party other than PacifiCorp.
36
14.2 Suspension of Performance. Neither Party will be liable for any delay or failure
in its performance under this Agreement, nor will any delay, failure, or other occurrence or event
become an Event of Default, to the extent such delay, failure, occurrence or event is substantially
caused by conditions or events of Force Majeure during the continuation of the event of Force
Majeure, provided that: (a) the Party affected by the Force Majeure, within five (5) days after the
occurrence of the event of Force Majeure, gives the other Party written notice describing the
particulars of the event of Force Majeure and how the event has impacted the affected Party's
obligations under this Agreement; (b) the suspension of perforrnance of the affected Party's
obligations is of no greater scope and of no longer duration than is required to remedy the effect
of the Force Majeure; and (c) the affected Party uses diligent efforts to remedy its inability to
perform.
14.3 Force Majeure Does Not Affect Other Obligations. No obligations of either Party
that arose before the event of Force Majeure causing the suspension of perfornance or that arise
after the cessation of such event of Force Majeure is excused by such event of Force Majeure.
14.4 Strikes. Notwithstanding any other provision of this Agreement, neither Party
will 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.
14.5 Rieht to Terminate. If a Force Majeure event prevents a Party from substantially
performing its obligations under this Agreement for a period exceeding 180 consecutive days,
then the Party not affected by the Force Majeure event may terminate this Agreement by giving
ten (10) days prior notice to the other Party. Upon such termination, neither Party will have any
liability to the other with respect to the period following the effective date of such termination;
ry4!9g!, however, that this Agreement will remain in effect to the extent necessary to facilitate
the settlement of all liabilities and obligations arising under this Agreement before the effective
date of such termination.
SECTION 15
SEVERAL OBLIGATIONS
Nothing in this Agreement will be construed to create an association, trust, partnership or
joint venture or to impose a trust, partnership or fiduciary duty, obligation or Liability on or
between the Parties.
SECTION 16
CHOICE OF LAW
This Agreement will be interpreted and enforced in accordance with the laws of the State
of ldaho, applying any choice of law rules that may direct the application of the laws of another
jurisdiction.
PARdI:IiH.II""
If any of the terms of this Agreement are finally held or determined to be invalid, illegal
or void as being contrary to any applicable law or public policy, all other terms of this
Agreement will remain in effect. The Parties agree to use best efforts to amend this Agreement
to reform or replace any terms determined to be invalid, illegal or void, such that the amended
37
terms (a) comply with and are enforceable under applicable law, (b) give effect to the intent of
the Parties in entering into this Agreement, and (c) preserve the balance of the economics and
equities contemplated by this Agreement in all material respects.
SECTION 18
NON.WAIYER
No waiver of any provision of this Agreement will be effective unless the waiver is
provided in writing that (a) expressly identifies the provision being waived, and (b) is executed
by the Party waiving the provision. A Party's waiver of one or more failures by the other Party
in the perfonnance of any of the provisions of this Agreement will not be construed as a waiver
of any other failure or failures, whether of a like kind or different nature.
SECTION 19
GOYERNMENTAL JTTRISDICTION
AND AUTHORIZATIONS
This Agreement is subject to the jurisdiction of those Governmental Authorities having
jurisdiction over either Party or this Agreement.
SECTION 20
SUCCESSORS AI\D ASSIGNS
20.1 Restriction on Assignments. Except as provided in this Section 20, neither Party
may assign this Agreement or any of its rights or obligations without the prior written consent of
the other Party.
20.2 Permiffed Assienments. Notwithstanding Section 20.1, either Party may, without
the need for consent from the other Party (but with notice to the other Party, including the names
of the assignees): (a) transfer, sell, pledge, encumber or assign this Agreement or the related
accounts, revenues or proceeds in connection with project financing for the Facility; or (b)
ffansfer or assign this Agreement to an Affiliate meeting the requirements of this Agreement,
ry4!91!, however, that Seller will not transfer, sell, encumber or assign this Agreement or any
interest in this Agreement to any Affiliate of PacifiCorp without the prior written consent of
PacifiCorp. For any assignment under (b) above, the assignee must agree in writing to be bound
by the terms and conditions of this Agreement and must possess the same or similar experience,
and possess the same or better creditrvorthiness, as the assignor. PacifiCorp may assign this
Agreement in whole or in part without the consent of Seller to any person or entity in the event
that PacifiCorp ceases to be a load-serving entity, in which event PacifiCorp will be released
from liability under this Agreement. The Party seeking to assign or transfer this Agreement is
solely responsible for paying all costs of assignment.
SECTION 21
ENTIRE AGREEMENT
This Agreement supersedes all prior agreements, proposals, representations, negotiations,
discussions or letters, whether oral or in writing, regarding the subject matter of this Agreement.
No modification of this Agreement is effective unless it is in writing and executed by both
Parties and subsequently approved by the Commission.
38
SECTION 22
NOTICES
22J Addresses and Delivery Methods. All notices, requests, statements or payments
must be made to the addresses set out in Exhibit L. In addition, copies of a notice of termination
of this Agreement under Section I 1.3 must contain the information required by Section I 1.3 and
must be sent to the then-current President and General Counsel of PacifiCorp. Notices required
to be in writing must be delivered by letter or other tangible documentary form. Notice by
overnight mail or courier will be deemed to have been given on the date and time evidenced by
the delivery receipt. Notice by hand delivery will be deemed to have been given when received
or hand delivered. Notice by electronic transmission is effective as of transmission, but must be
followed up by notice by registered mail or overnight carrier to be effective. Notice by certified
or registered mail, retum receipt requested, will be deemed to have been given upon receipt. The
Parties may change any of the persons to whom notices are addressed, or their addresses, by
providing written notice in accordance with this section.
SECTION 23
PTIBLICITY
23.1 News Releases and Publicitv. Before Seller issues any news release or publicly
distributed promotional material regarding this Agreement, Seller must first provide a copy
thereof to PacifiCorp for its review. Any use of the name "Berkshire Hathaway," in any form,
requires the prior written consent of PacifiCorp.
SECTION 24
DISAGREEMENTS
24.1 Negotiations. Prior to proceeding with formal dispute resolution, the Parties must
first attempt in good faith to resolve informally all disputes arising out of, related to or in
connection with this Agreement. Any Party may give the other Party written notice of any
dispute not resolved in the normal course of business. Executives of both Parties at levels one
level above those employees who have previously been involved in the dispute must meet at a
mutually acceptable time and place within ten (10) days after delivery of such notice, and
thereafter as often as they reasonably deem necessary, to exchange relevant information and to
attempt to resolve the dispute. [f the matter has not been resolved within thirty (30) days after
the referral of the dispute to such executives, or if no meeting of such executives has taken place
within fifteen ( l5) days after such referral, either Party may initiate any legal remedies available
to the Party. No statements of position or offers of settlement made in the course of the dispute
process described in this section will be offered into evidence for any purpose in any litigation
between the Parties, nor will any such statements or offers of settlement be used in any manner
against either Party in any such litigation. Further, no such statements or offers of settlement
will constitute an admission or waiver of rights by either Parry in connection with any such
litigation. At the request of either Party, any such statements and offers of settlement, and all
copies thereof, will be promptly returned to the Party providing the same.
39
24.2 Mediation. If the dispute is not resolved under the procedures provided in Section
24.1, either Party may request that the matter be submitted to non-binding mediation. The costs
of the mediation, including fees and expenses, will be borne equally by the Parties. All verbal
and written communications between the Parties and issued or prepared in connection with the
mediation will be deemed prepared and communicated in furtherance, and in the context, of
dispute settlement, and will be exempt from discovery and production, and will not be admissible
in evidence (whether as admission or otherwise) in any litigation or other proceedings for the
resolution of the dispute.
24.3 Choice of Forum. Each Party irrevocably consents and agrees that any legal
action or proceeding arising out of this Agreement or the actions of the Parties leading up to the
Agreement will be brought exclusively in the state and federal courts in Salt Lake City, Utah.
By execution and delivery of this Agreement, each Party (a) accepts the exclusive jurisdiction of
such court and waives any objection that it may now or hereafter have to the exercise of personal
jurisdiction by such court over each Party for the purpose of any proceeding related to this
Agreement; (b) irrevocably agrees to be bound by any final judgment (after any and all appeals)
of any such court arising out of such documents or actions; (c) irrevocably waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the laying of venue of
any suit, action or proceedings arising out of such documents brought in such court (including
any claim that any such suit, action or proceeding has been brought in an inconvenient forum) in
connection herewith; (d) agrees that service of process in any such action may be effected by
mailing a copy thereof by registered or certified mail, postage prepaid, to such Party at its
address stated in this Agreement; and (e) agrees that nothing in this Agreement affects the right
to effect service of process in any other manner permitted by law.
24.4 WAIVER OF ruRY TRIAL. EACH PARTY WAIVES THE RIGHT TO A
TRIAL BY ruRY IN RESPECT OF ANY LITIGATION BASED ON THIS AGREEMENT,
OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH
PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH
THIS AGREEMENT WITH ANY PROCEEDING IN WHICH A ruRY TRIAL HAS NOT OR
CANNOT BE WAIVED. THIS PARAGRAPH WTLL SURVIVE THE EXPIRATION OR
TERMINATTON OF THIS AGREEMENT.
40
E
IN WTINESS WHEREOF, the Parties have carsed this Agreemeirt to be executed
in their respective names as ofthe date last written below.
SELLBR:PACIFICORP:
LARRY OJA PACIFICORP, an Orcgon Corporation
By:By:
DriLty'gmd b,nomld
Ronald Scheirer #I*'r,' trs3:1t
Name: Ronald Scheirer
Title: Valuation & Commercial Business, DiroctorDate: t
CHRISTIE OJA
By:
Date:
i
Date:
4l
EXHIBIT A
EXPECTED MONTIILY NET OUTPUT
MAXIMUM DELIYERY RATE
188 kW
Month On-Peak Energy
ftwh)
Off-Peak Energy
ftwh)
Total Energy (kWh)
January 30370 15185 4s55s
February 27407 13704 41111
March 33333 16667 50000
April 42222 2ttrl 63333
May 0 0 0
June 42962 21482 64444
July 46666 23334 70000
August 40000 20000 60000
September 34666 17556 s2222
October 35555 17778 53333
November 36296 I 8148 s4444
December 34074 17037 5l1l I
EXHIBIT B
DESCRIPTION OF SELLER'S FACILITY
Type (synchronous or inductive): Induction
Facility Nameplate Capacity Rating: 188
Model: Wolfer ODG 3l5s -4b
Number of Phases: 3
Power factor requirements :
Rated Power Factor @F) or reactive load (kVAR): 0.88
Rated Output (kW): 188
Rated Output (kVA): 480
Rated Voltage (line to line): 480
Rated Current (A): 505 Stator: 240 Rotor: 240
Maximum kW Output 188
Maximum kVA Output:480
Minimum kW Output: 0
Station service requirements, and other loads served by the Facility, if any: None
Location of the Facility:
Diversion dam is located in the Northwest Ya of the Southeast % of Section 29, Township l2
South, Range 36 East, Boise Meridian on Mill Creek.
Powerhouse is located in Northwest 7n of the Southwest % of Section 27, Township 12 South,
Range 36 East, Boise Meridian.
EXHIBIT C
SELLER'S INTERCOI\INECTION FACILITIES
The interconnection facilities for the Project are located at approximately at latitude 42.348643,
longitude 112.246456 in Oneida County, Idatro. The facility is interconnected to Transmission
Provider's distibution circuit MLDI3 out of Malad substation via a primary meter point. Project
One Line Diagram:
oTPitoS
Gcnerrlrn
Frdfty
rr5 Hl,
'180VYY
03 n\AZ-3.8*
Ch.ltlo,Orlcab
Lort
Poirt of
librEolrncdbn
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Malad
SuHatbn cs lrg
EXHIBIT I)
REQIITRED FACTUTY DOCTIMENTS
l. QF Certification
2. Interconnection Agreement (or list of studies and sflrdy agreements completed as of the
Effective Darc)
Small Generator Interconnection Fast Track Study Report Completed for Larry Oja
and Christie Oja - OTP208 ('Interconnection Customer') OJ Power Proposed
Interconnection Circuit MLDI3 out of Malad Substation atl2.47 kV dated January
27,2022.
3. FERC License No.: 7719-000
4. IDWR Water Right No.: 29-7567
5. QF CertificationNo.: Exempt- facilrty is below I MW
EXHIBIT E
LEASES
.],.r-r- .a.r ,a ?lE( rh oaJ|..ri:
GUAf,ANTEE
SUBJtcr I0 rHr ixcl-u€rom .rrl CfvERlGt, rlc LilITE Ot UAEILIY Airtl OtrCR PnOU$q$ tr IHE
co|,.rnortls 11p gnpgqrtxrot' ,{ERFTO Ailt FIcD t,lF tAtf t tAf,T Ot rHlt 6t,ritt{fEE. ft|D SUBEBriOnr FUHTHT.* EXCLUltrO.t Attp LltrAIlOfl iHrT iro cuARlllIEE lE ol9Eil ron uatrlrT? llEt tlcD trrlll
,iESFECr 16 7115 ;Ofiirny Qr AN? iAerilr tE0 on SflEf,nED ro fi EGHTDrI€ A oB IltH Rtsf,EGY To
IHE yrllolft, LE6tr. EFFECT oB ,&oRttY oF r]rr f,4r?t l aHgllr ltlESf,lll
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EXHIBIT G
QUALIFIED REPORTING ENTITY SERVICES AGREEMENT
Energy Supply Management Master v4.l a; 03 1220 19
This Qualified Reporting Entity Services Agreement (this "Agreement") is entered into
by and between PacifiCorp ("PacifiCorp") and Larry Ojaand Christie Oja (collectively,
"Counterparty"; PacifiCorp and Counterparty may be referred to individually herein as "Party"
and collectively as "Parties") as of the date signed by both Parties with reference to the
following:
WHEREAS, Counterparty represents to PacifiCorp that it owns or otherwise has the
rights to all or part of the non-energy attributes of the generation from that certain electric
generation facility as more particularly described in Exhibit A (the "Facility") as such rights are
defined in that power purchase agreement between PacifiCorp and Counterparty (the "PPA"), or
other rights respecting the Facility itself enabling it to lawfully enter hereinto; and
WHEREAS, the Western Renewable Electricity Generation Information System
("WREGIS") is a system tracking quantities of renewable energy generation generated by
electric generating facilities in the nature of the Facility, as a Facility pursuant to WREGIS
Terms of Use ("TOU"); and
WHEREAS, WREGIS requires that each Facility have a designated Qualified Reporting
Entity; and
WHEREAS, Counterparty is an Account Holder in WREGIS and wishes to register the
Facility with WREGIS; and
WHEREAS, Counterparty wishes to retain PacifiCorp to act as its WREGIS-defined
Qualified Reporting Entity ("QRE") for the Facility;
NOW THEREFORE, in consideration of the mutual promises herein contained, the
Parties agree as follows:
I. Definitions: Rules of Construction.
l.l Initially capitalized terms used and not otherwise defined herein are defined in the
in the WREGIS Operating Rules or in Attachment I Definitions of the WREGIS TOU.
1.2 "Affiliate" means, with respect to any entity, each entity that directly or indirectly
controls, is controlled by, or is under common control with, such designated entity, with
"control" meaning the possession, directly or indirectly, of the power to direct management and
policies, whether through the ownership of voting securities or by contract or otherwise.
Notwitnstanaing tne
Hathawav gnersv Comp
1.3 "Business Day" means a day of the week other than Saturday, Sunday, or a
federal holiday.
1.4 "Electric System Authority" means each of NERC, WECC, WREGIS, a regional
transmission organization, a regional or sub-regional reliability council or authority, and any
other similar council, corporation, organization or body of recognized standing with respect to
the operations of the electric system in the WECC region.
1.5 "FERC" means the Federal Energy Regulatory Commission.
1.6 o'Generation lnterconnection Agreement" means the agreement entered into
separately between Counterparty and Interconnection Provider concerning the lnterconnection
Facilities.
1.7 "Facility" is defined in the Preamble
1.8 "Interconnection Facilities" means all the facilities installed, or to be installed, for
the purpose of interconnecting the Facility to the System, including electrical transmission lines,
upgrades, transformers and associated equipment, substations, relay and switching equipment,
and safety equipment.
1.9 "Interconnection Provider" means the FERC-regulated or United States
Department of Energy entity with whom the Facility has contracted for interconnection to the
electric transmission grid; in the event Interconnection Provider is PacifiCorp, PacifiCorp would
be the Interconnection Provider operating in its regulated transmission function, and not as the
party hereto.
l.l0 "Metering Extemal Webpage" means a website owned and operated by
PacifiCorp that PacifiCorp may at its option, but without being obligated to do so, make
available and operate for the display of all data that will be included in the Monthly Generation
Extract File.
l.l I "Monthly Generation Extract File" means a data file that contains generation data
from Counterparty's Points of Metering and conforms to the characteristics and requirements set
forth in the WREGIS Interface Control Document.
l.l2 "NERC" means the North American Electric Reliability Corporation.
I .l 3 o'Points of Metering" means the points at which electric generation is measured.
l.l4 "PPA" is defined in the Preamble.
l.l5 "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.
1.16 "QRE" means a WREGIS-defined Qualified Reporting Entity.
l.l7 "Renewable" is defined in section 2 of the WREGIS Operating Rules
1.1 8 "Requirements of Law" means any applicable federal, state and local law, statute,
regulation, rule, code or ordinance enacted, adopted, issued or promulgated by any federal, state,
local or other Governmental Authority or regulatory body (including those pertaining to
electrical, building, zoning, environmental and occupational safety and health requirements).
L19 "Settlement Estimation Procedures" means a calculation based on standard utility
estimation rules using algorithms developed and approved by PacifiCorp's billing department.
1.20 "System" means the electric transmission substation and transmission or
distribution facilities owned, operated or maintained by Transmission Provider, which shall
include, after construction and installation of the Facility, the circuit reinforcements, extensions,
and associated terminal facility reinforcements or additions required to interconnect the Facility,
all as set forth in the Generation Interconnection Agreement.
l.2l "Tariff'means the PacifiCorp FERC Electric Tariff Fifth Revised Volume No
I I Open Access Transmission Tariff, or such updated volume as posted on PacifiCorp's Open
Access Same-Time Information System on the effective date of this Agreement.
1.22 "Transmission Provider" means the FERC-regulated or United States Department
of Energy entity with whom the Facility has contracted for electric transmission at and away
from the Facility to any point on, or interconnection with, the electric transmission grid; in the
event Transmission Provider is PacifiCorp, PacifiCorp would be the Interconnection Provider
operating in its regulated transmission function, and not as the party hereto.
1.23 "Wholesale Generation Also Serving On-Site Loads" is defined in section 2 of the
WREGIS Operating Rules.
1.24 "WECC" means the Westem Electricity Coordinating Council
1.25 "WREGIS" means the Western Renewable Energy Generation Information
System
1.26 "WREGIS Certificate" or "Certificate" means "Certificate" as defined by the
WREGIS Operating Rules.
1.27 "WREGIS Operating Rules" means the operating rules and requirements adopted
by WREGIS, including the TOU.
1.28 General Rules of Interpretation. Unless otherwise required by the context in
which any term appears, (a) the singular includes the plural and vice versa; (b) references to
"Afiicles," "Sectionsr" "Schedules," "Annexes," "Appendices" or "Exhibits" are to articles,
sections, schedules, annexes, appendices or exhibits hereof; (c) all references to a particular
entity or an electricity market price index include a reference to such entity's or index's
successors; (d) "herein," "hereof' and "hereunder" refer to this Agreement as a whole; (e) all
accounting terms not specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistently applied; (f) the masculine includes the feminine and
neuter and vice versa; (g) "including" means "including, without limitation" or "including, but
not limited to"; (h) all references to a particular law or statute mean that law or statute as
amended from time to time; and (i) the word o'or" is not necessarily exclusive.
1.29 Intemretation with FERC Orders. Counterparty acknowledges and agrees that
PacifiCorp must conduct its operations in a manner intended to comply with FERC Order No.
717, Standards of Conduct for Transmission Providers, which requires the functional separation
of a utility's transmission and merchant functions. Moreover, the Parties acknowledge that each
of Transmission Provider's and Interconnection Provider's transmission function offers
transmission service on its system in a manner intended to comply with FERC policies and
requirements relating to the provision of open-access transmission service. Counterparty agrees
to conduct itself and operate the Facility in accordance with all Requirements of Law, all
requirements of all applicable Electric System Authorities, and all requirements of the
lnterconnection Agreement.
1.29.1 Counterparty agrees to enter into the Generation Interconnection
Agreement with the Interconnection Provider. The Generation Interconnection Agreement shall
be a separate and free standing contract and the terms hereof are not binding upon the
Interconnection Provider or Transmission Provider, although both are express third party
beneficiaries hereof.
1.29.2 Notwithstanding any other provision in this Agreement, nothing in the
Generation Interconnection Agreement, nor any other agreement between Counterparty on the
one hand and Transmission Provider or Interconnection Provider on the other hand, nor any
alleged event of default thereunder, shall alter or modiff the Parties' rights, duties, and
obligation hereunder. Likewise, nothing herein or connected with the performance by
PacifiCorp hereof shall affect or impair the rights of Interconnection Provider or Transmission
Provider, under the Interconnection Agreement or otherwise. This Agreement shall not be
construed to create any rights between Counterparty and the Interconnection Provider or between
Counterparty and the Transmission Provider.
1.29.3 Counterparty expressly recognizes that, for purposes hereof, the
Interconnection Provider and Transmission Provider each shall be deemed to be a separate entity
and separate contracting party from PacifiCorp whether or not the Generation Interconnection
Agreement is entered into with Interconnection Provider or an affiliate thereof. Counterparty
acknowledges that PacifiCorp, acting in its merchant capacity function as purchaser hereunder,
has no responsibility for or control over Interconnection Provider or Transmission Provider, and
is not liable for any breach of agreement or duty by Interconnection Provider or Transmission
Provider. Nothing in this Agreement shall operate to diminish, nor shall this Agreement extend
to, Interconnection Provider or Transmission Provider's use, retention, or disclosure of
Counterparty or Facility information (including information within the scope of this Agreement)
in connection with PacifiCorp operating in its transmission function, including its carrying out of
its obligations and business practices as a Balancing Authority or activities undertaken pursuant
to the Tariff.
U. Term and Termination.
2.1 This Agreement shall be effective upon execution by the Parties and shall
continue in effect until such time as either Purty, upon providing 60 days written notice to the
other Party, chooses to terminate. PacifiCorp may initiate any regulatory proceedings it deems
appropriate to terminate this Agreement prior to the effectiveness of such termination.
Notwithstanding the foregoing, (a) Counterparty may terminate this Agreement upon an event of
default by PacifiCorp if PacifiCorp does not cure such event of default within l0 days of written
notice, (b) PacifiCorp may terminate this Agreement upon an event of default by Counterparty if
Counterparty does not cure such event of default within l0 days of written notice, (c) PacifiCorp
may terminate this Agreement if the Facility fails to meet the requirements of Section 3.1 hereof
and such failure is not cured within 30 days, and (d) either Party may terminate this Agreement
immediately upon notice to the other if Counterparty or the Facility fail to comply with Section
1.29. This Agreement may also be terminated as otherwise set forth herein.
III. ORE Services.
3.1 ORE Services. PacifiCorp will, on the terms set forth herein, serve as a QRE for
the Facility so long as (a) the Facility meets the definition of Renewable, (b) is within the
metered boundaries of both PacifiCorp's Balancing Authority, (c) is equipped with either: (l)
Transmission Provider or Interconnection Provider (as applicable) owned and operated meters;
or (2) meters that meet the Interconnection Provider's requirements and (d) meet all applicable
WREGIS requirements.
3.2 Compensation to PacifiCorp. In exchange for the services performed by
PacifiCorp hereunder, Counterparty shall pay PacifiCorp as follows: Counterparty shall pay
PacifiCorp a one-time initial setup fee of $280, which PacifiCorp may at its option deduct from
payments due to Counterparty under the PPA and otherwise shall be payable within ten days of
demand by invoice following execution of this Agreement. PacifiCorp shall charge
Counterparty a monthly reporting fee of $50 per generating unit for which PacifiCorp reports
output to WREGIS, provided that PacifiCorp may, in its discretion, assess and bill for all fees
due hereunder on an annual, rather than monthly, basis. PacifiCorp may at its option deduct
from payments due to Counterparty under the PPA all other fees due hereunder, which shall
otherwise be due within ten days of PacifiCorp's issuance of an invoice for such fees.
PacifiCorp will review costs associated with this service on an annual basis, and may make
necessary adjustments to the monthly reporting fee charged herein. Any change in the monthly
reporting fee will become effective only after a minimum thirty (30) days prior written notice to
Counterparty. In the event WREGIS, WECC, or any other entity with the ability or jurisdiction
to modify the QRE reporting process requires a change that materially increases the costs to
PacifiCorp of providing QRE services, PacifiCorp may pass those costs to the Counterparty by
increasing the monthly reporting fee. PacifiCorp will use best efforts to provide Counterparty
with prior notice before billing Counterparty for such increased costs. The fees set forth herein
relate to PacifiCorp serving as a QRE for Counterparty pursuant to the terms of this Agreement.
The necessary metering is a prerequisite for this service and is not covered in the fees described
above.
3.3 Points of Metering. The Points of Metering that PacifiCorp will use are set forth
in Exhibit A. Counterparty certifies that all Points of Metering listed in Exhibit A measure data
only from Facility that meet the definition of Renewable. Counterparty shall notiff PacifiCorp at
least thirty (30) Business Days prior to making any proposed material changes to the Points of
Metering. Following such notification, the Parties will decide whether such changes are
mutually acceptable. If such changes are not acceptable to PacifiCorp, PacifiCorp may terminate
this Agreement.
3.4 Expenses. Except as otherwise provided in the Interconnection Agreement (and
in such case, only vis-i-vis Interconnection Provider), Counterparty shall bear all costs and
expenses, including those incurred by PacifiCorp, relating to all metering or other equipment
instal led to accommodate Counterparty' s Faci I ity.
3.5 Reporting. Counterparty hereby grants to PacifiCorp sole and exclusive
permission and authority to report Data and Output to WREGIS and warrants and represents that
neither Counterparty nor any other person or entity acting on behalf of Counterparty has granted,
or will hereafter grant during the term hereof any similar data reporting authority or permission
to any other QRE or WREGIS Account Holder or to any other party or Agent for use in
WREGIS, or any other energy tracking system, for the Facility. As a precondition for PacifiCorp
to be able to perform hereunder, Counterparty shall submit Counterparty's Output data to
PacifiCorp by allowing PacifiCorp to collect such data, at the Points of Metering, and report such
data in the manner set forth herein.
3.5.1 Monthly Generation Extract File. PacifiCorp shall submit a Monthly
Generation Extract File to WREGIS on Counterparty's behalf, which will conform to the
characteristics and data requirements set forth in the WREGIS Interface Control Document.
3.5.2 Reportine Cycle. PacifiCorp shall submit the Monthly Generation Extract
File to WREGIS no later than sixty days following the end date of the output being reported.
3.5.3 Verification. Should PacifiCorp choose at its option to operate and make
available a Metering External Webpage, PacifiCorp may in its reasonably exercised discretion
grant Counterparty access for Counterparty to veriff such information as prescribed by
PacifiCorp from time to time, and to timely notifr PacifiCorp in writing of any errors
Counterparty detects.
3.5.4 Adjustments. After PacifiCorp submits the Monthly Generation Extract
File to WREGIS, any information contained in the Monthly Generation Extract File shall be final
for purposes of WREGIS reporting, subject only to the adjustment procedures set forth in the
WREGIS Operating Rules, which shall be Counterparty's responsibility to implement if
necessary.
3.6 Oblieations of Counterpartv. Counterparty shall report and provide to PacifiCorp
accurate and complete generation Data and Output information for the Facility. Counterparty
shall send the Data and other Output Information in a format and in compliance with any
protocols which PacifiCorp may speciff to Counterparty. Counterparty has a continuing duty to
immediately notiff PacifiCorp, if and when any generation Data or Output information has been
sent in eror or ceases to be truthful, accurate, or complete and to supply the corrected data as
soon as practical, but not later than five (5) Business Days from the date Counterparty discovers
that discrepancy in the Data or Output information.
3.7 WREGIS Fees. Counterparty is solely responsible for the payment directly to
WREGIS of any and all WREGIS fees and costs that are required to register Counterparty's
Facility and, to the extent the Generator Owner is a WREGIS Account Holder, Counterparty is
responsible for the payment directly to WREGIS of all other WREGIS fees incident to the
reporting of GeneratorData and Output to WREGIS. Counterparty acknowledges and agrees
that PacifiCorp shall have no obligation to advance or make payment of WREGIS fees or costs
on Counterparty's behalf. Upon request by PacifiCorp made if PacifiCorp has received such a
request from WREGIS or any regulator or third party, Counterparty shall provide PacifiCorp
with evidence of payment of WREGIS fees and costs; failure to provide such information to
PacifiCorp, upon request, shall constitute an event of default under this Agreement.
3.8 WREGIS Accounts. Counterparty will be solely responsible to make
alrangements and regishations and for entering into any such agreements that are necessary to
establish transfer of Certificates directly to proper Accounts or Subaccounts of
Counterparty. Counterparty agrees that such arrangements shall preclude the need for
PacifiCorp to act as custodian of such Certificates or to be responsible in any way to hold such
Certificates in any Account or Subaccount of PacifiCorp or bear any responsibility, possession,
obligation, or risk of loss with respect to Certificates created, held, or owned, with respect to the
Facility. Counterparty acknowledges that, pursuant to section I I of the WREGIS TOU, any
generation data that PacifiCorp, acting as a QRE, provides to WREGIS shall reside in WREGIS
and Counterparty will have no control over such data's use other than that provided for under the
WREGIS TOU.
3.9 Obligations of PacifiCorp. PacifiCorp shall speci$ for Counterparty the
protocols, reporting frequency, data file formats, and communication protocols for reporting
generating Data, or Output, as necessary. PacifiCorp shall timely report to WREGIS
Counterparty Data and/or Output information as specified in the most current WREGIS Interface
Control Document (ICD). PacifiCorp shall not use or disclose Counterparty generation Data for
any other purpose than reporting the Data to WREGIS, except as may be required by law, the
Public Utility Commission of Oregon, any other state, federal, municipal or other regulator or
governmental authority with jurisdiction over PacifiCorp or any of its assets, or a court of
competent jurisdiction or as required under the terms of an existing agreement between the
Parties. PacifiCorp shall not use Generator Owner generation Data for any other purpose.
Notwithstanding the foregoing, PacifiCorp shall not be responsible for handling, account
administration, transfer, evidence of, or any determination of Counterparty Certificate ownership
or any other obligations for Certificates of Counterparty with regard to Certificates; and
Counterparty shall bear all responsibility for such handling, account administration, evidence of,
or any determination of Counterparty Certificate ownership and all other obligations pertaining
to creation and ownership of such Certificates.
3.10 Measurement.
3.10.1 Meter Data. Counterparty authorizes PacifiCorp's metering services
organization to provide Counterparty's meter data directly to WREGIS in the form of the
Monthly Generation Extract File. Counterparly authorizes PacifiCory to gather data from the
Points of Metering listed in Exhibit A. All such data is considered data which Counterparty has
created and submitted to PacifiCorp, notwithstanding that PacifiCorp, rather than Counterparty
will gather it.
3.10.2 Wholesale Generation Also Serving On-Site Loads. [f Counterparty has
any Wholesale Generation Also Serving On-Site Loads (as defined in Article One above), such
Facility will need to have the on-site load generation metered (and registered) separately from
the generation that is supplied to the grid, in accordance with the WREGIS Operating Rules.
Otherwise, PacifiCorp will not report any data from such Facility. If such Facility exist, they
must be specified in Exhibit A.
3.10.3 Estimates. When meter readings are not available due to meter hardware
failure or data that is determined to be invalid due to meter malfunction or calibration or
configuration error, to the extent deemed by PacifiCorp to be appropriate and permitted pursuant
to WREGIS TOU, PacifiCorp will, if possible, rely on readings from redundant meters whether
such meters are PacifiCorp owned or not. If readings from redundant meters are not possible,
PacifiCorp will estimate and report meter data according to PacifiCorp's Settlement Estimation
Procedures.
3.10.4 Responsibilitv. Counterparty is solely responsible for the data created and
submitted to PacifiCorp, acting as a QRE, to forward to WREGIS.
3.1I Regulatory Requirements. PacifiCorp may release information provided by
Counterparty hereunder, or gathered by PacifiCorp in connection herewith, to comply with any
regulatory requirements applicable to PacifiCorp or if requested by a PacifiCorp regulator or if
required by any other federal law or court order. Counterparty waives all applicable provisions
of the Tariff which require PacifiCorp to hold confidential information with respect to the
Generator Owner and the Facility, to the extent necessary for PacifiCorp to report, as a QRE,
generation Data and Output regarding the Generation Unit(s) and to carry out PacifiCorp's
obligations under this Agreement. This provision shall survive any termination of this
Agreement.
3.12 Grant bv Counterpa4v. Counterparty hereby grants to, permits, and authorizes
PacifiCorp the following:
3.12.1 PacifiCorp is hereby authorized to communicate and transact with
WREGIS as Counterparty's sole and exclusive reporting source of generation data for the
Facility, and WREGIS is hereby authorized to communicate and transact directly with
PacifiCorp regarding any generation data issues for the Facility. PacifiCorp is hereby authorized
to act on behalf of Counterparty, but only to the extent that PacifiCorp has lawful, contractual
access to WREGIS.
3.12.2 PacifiCorp is hereby authorized to provide WREGIS with all generation
data for the Facility that WREGIS requires, including, but not limited to, data required for
preparation of required reports and billing.
3.12.3 PacifiCorp is authorized to undertake all actions which are reasonable and
necessary to carry out the obligations set forth in the subsections above.
3.12.4 Counterparty retains all other rights and responsibilities and all other
obligations to WREGIS.
ry. INDEMNITY.
4.1 INDEMNITY. TO THE EXTENT PERMITTED BY REQUIREMENTS OF
LAW, COUNTERPARTY HEREBY INDEMNIFIES AI\D AGREES TO HOLD
PACIFICORP,ITS AFFILIATES, AND EACH OF ITS AI\ID THEIR RESPECTIYE
DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, AI\[D REPRESENTATIVES
(COLLECTIVELY, THE (PACIFICORP INDEMNITEES') HARMLESS AGAINST
AI\[Y AND ALL LOSSES, FINES, PENALTIES, CLAIMS (INCLUDING THIRD PARTY
CLAIMS), DEMAIYDS, DAMAGES, LIABILITIES, ACTIONS OR SUITS OF AI\Y
NATURE WIIATSOEYER (INCLUDING LEGAL COSTS AI\D ATTORNEY'S FEES,
BOTH AT TRIAL AI\D ON APPEAL, WHETIIER OR NOT SUIT IS BROUGHT)
(COLLECTIVELY, "LIABILITIES") THAT ARE IN ANY WAY ASSOCIATED WITH
PACIFICORP'S PERFORMANCE OR FAILTIRE TO PERFORM IIEREUNDER. THIS
INCLUDES LIABILITY ARISING FROM: THE DATA CONTAINED IN TIIE
MONTHLY GENERATION EXTRACT FILE, OR AI\IY OTHER FINANCIAL INJURY,
OR DAMAGE TO PERSONS OR PROPERTY. WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING:
4,2 WAIVER OF CAUSES OF ACTION AI\D CLAIMS FOR DAMAGES.
WITHOUT LIMITING THE GENERALITY OF SECTION 4.1 ABOYE,
COUNTERPARTY HEREBY WAIVES AIYY AND ALL CAUSES OF ACTION ARISING
UNDER OR IN RESPECT TO TIIIS AGREEMENT, WHETHER IN CONTRACT,
TORT OR ANY OTHER LEGAL OR EQUITABLE THEORY (INCLUDING STRICT
LIABILITY) AGAINST PACIFICORP OR ANY PACIFICORP INDEMNITEE. IN NO
EVENT SHALL PACIFICORP OR AI\Y PACIFICORP INDEMNITEE BE LIABLE TO
COUNTERPARTY ITS BOARD OF DIRECTORS, EMPLOYEES, AGENTS, OR
REPRESENTATIyES FOR AI[y DEMANDS, DIRECT COSTS, LOST OR
PROSPECTIVE PROFITS OR AI\Y OTHER LIABILITIES OR EXPENSES,
WIIETHER SPECIAL, PUNITIVE, EXEMPLARY, CONSEQUENTIAL, INCIDENTAL,
OR INDIRECT IN NATURE, THAT ARE IN AIIY WAY ASSOCIATED WITH
PACIFICORP'S PERFORMANCE OF THE QRE FUNCTION OR OTHERWISE
UNDER OR IN RESPECT OF THIS AGREEMENT.
4.3 INDEMNITY FOR COUNTERPARTY ACTIONS. WITHOUT LIIVtrTING
THE GENERALITY OF SECTION 4.1 ABOVE, COUNTERPARTY SHALL RELEASE,
INDEMNIFY AI\D HOLD PACIFICORP AI\D ALL PACIFICORP INDEMNITEES
IIARMLESS AGAINST AI\[D FROM AI\IY AND ALL LIABILITIES RESULTING
FROM, OR ARTSING OUT OF, OR IN AI\[Y WAY CONNECTED WrTH, THE
PERFORMANCE BY COUNTERPARTY OF ITS OBLIGATIONS IIEREUNDER, OR
RELATING TO THE FACILITY, FOR OR ON ACCOUNT OF (I) INJURY, BODILY
oR OTHERWISE, TO, OR DEATH OF, OR (II) FOR DAMAGE TO, OR
DESTRUCTION OR ECONOI\{IC LOSS OF PROPERTY OF, ANY PERSON OR
ENTITY, EXCEPTING ONLY TO TIIE EXTENT SUCH LIABILITIES AS MAY BE
CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY
PACIFICORP INDEMNITEE.
4.4 NOTWITHSTAI\IDING AI\[Y OTIIER PROVISION OF THIS
AGREEMENT, COIINTERPARTY ASSUMES FULL RESPONSIBILITY AND RISK OF
LOSS RESULTING FROM (1) THE FATLURE TO SEND DATA rN A FORMAT
SPECIFIED BY PACIFICORP, (2) THE FAILURE TO USE PROTOCOLS SPECIFIED
By pACrFrcoRP oR (3) THE SENDING OF ERRONEOUS, UNTRUTHFUL,
INACCURATE, ANID/OR INCOMPLETE GENERATING DATA TO PACIFICORP OR
TIIE SENDING OF ERRONEOUS, UNTRUTIIFUL, INACCURATE, AI\D/OR
INCOMPLETE DATA BY PACIFICORP TO WREGIS. IN NO EVENT SIIALL
PACIFICORP BE LIABLE FOR AI\[Y CONSEQUENTIAL, INCIDENTAL, SPECIAL,
EXEMPLARY, OR OTIIER INDIRECT LOSS OR DAMAGES RESULTING FROM
ANY BREACH OF THIS AGREEMENT, WHETIMR CAUSED BY THE I\TEGLIGENCE
oR INTENTTONAL ACTIONS OF PACIFICORP (AI\ID/OR ITS CONTRACTORS,
AGENTS, AI\ID EMPLOYEES), REGARDLESS OF WHETIIER SUCH CLAIM FOR
DAMAGES IS BASED IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.
IN NO EVENT SHALL PACIFICORP BE LIABLE FOR AI\Y LOSS OR HARM
SUFFERED BY COUNTERPARTY OR ANY THIRD PARTY DUE TO AI\IY ACTION
OR INACTION BY PACIFICORP TAKEN HERETINDER THAT CAUSES A FACILITY
TO LOSE ANY CREDENTIALS, REGISTRATION OR QUALIFICATION UNDER THE
RENEWABLE PORTFOLIO STANDARD OR SIMILAR LAW OF AI\Y STATE OR
OTHER JURISDICTION.
4.5 PACIFICORP WILL NOT BE RESPONSIBLE FOR AI\[Y DAMAGES
RESULTING FROM ECONOMIC LOSS, LOSS OF USE, LOSS OF DATA, LOSS OF
BUSINESS, LOSS OF PROFIT, LOSS OF PRODUCTTON TAX CREDITS, LOSS OF
SAYINGS OR REYENUE, LOSS OF GOODWILL, THE CLAIMS OF THIRD PARTIES
(INCLUDING CUSTOMERS AND SHAREHOLDERS OR OTIIER EQUITY OWNERS),
PERSONAL INJURIES OR PROPERTY DAMAGES SUSTAINED BY THE
COUNTERPARTY OR ANY THIRD PARTIES, EVEN IF PACIFICORP HAS BEEN
NOTIFIED BY COUNTERPARTY (OR BY ANY THIRD PARTY) OF SUCH
DAMAGES.
4.6 PACIFICORP DISCLAIMS ANY LIABILITY FOR AND
COUNTERPARTY WAIVES ANY CLAIM FOR LOSS OR DAMAGE RESULTING
FROM ERRORS, OMISSIONS, OR OTHER INACCURACIES IN AI\[Y PART OF
WREGIS OR TIIE REPORTS, CERTIFICATES OR OTHER INFORMATION
COMPILED OR PRODUCED BY AI\D FROM OR INPUT INTO WREGIS USING
COUNTERPARTY.SUPPLIED GENERATION DATA, WHETHER OR NOT SUCH
ERRORS, OMISSIONS OR INACCURACIES ARE DUE TO ERRONEOUS,
UNTRUTHFIJL, INCOMPLETE, OR INACCURATE INFORMATION INPUT BY
PACIFICORP INTO WREGIS.
4.7 COUNTERPARTY HEREBY RELEASES PACIFICORP AI\[D
PACIFICORP INDEMNITEES FROM AI\Y AND ALL LIABILITY WITH RESPECT
TO DAMAGES OR INJURIES INCURRED BY GENERATOR OWI\ER AS RELATES
TO THE FOREGOING, EXCLUDING AI\'Y ARISING AS A RESULT OF TORTIOUS
AIYD INTENTIONALLY KNOWING OR RECKLESS CONDUCT BY PACIFICORP.
4.8 COUNTERPARTY ACKNOWLEDGES AND AGREES THAT,IN THE
EVENT OF BREACH OF THIS CONTRACT OR ANY OTHER ACTION RESULTING
IN LOSS OR POTENTIAL LOSS OR DAMAGE TO COUNTERPARTY,
COUNTERPARTY'S SOLE RECOURSE IS TERMINATION OF THIS AGREEMENT.
4.9 WITHOUT LIMITING THE GENERALITY OF SECTION 4.1 ABOVE,
COUNTERPARTY AGREES TO DEFEND,INDEMNIFY, AND IIOLD PACIFICORP
AND PACIFICORP INDEMNITEES HARMLESS FROM AI\D AGAINST AI\TY AI\ID
ALL CLAIMS (INCLUDING THIRD.PARTY CLAIMS); CAUSES OF ACTION,
WIIETHER IN CONTRACT, TORT, OR ANY OTHER LEGAL THEORY (INCLUDING
STRICT LIABILITY); COSTS AND EXPENSES AI\D OTHER LIABILITIES OF AI\Y
NATURE WIIATSOEVER, WIIENEYER ARISING, ARISING OUT OF, RESULTING
FROM, ATTRIBUTABLE TO, OR RELATED TO COUNTERPARTY GENERATION
DATA OR OUTPUT,INCLUDING: AI\Y INACCURACY, ERROR, OR DELAY IN OR
OMISSION OF (I) AI\Y DATA,INFORIuA*TION, OR SERYICE, OR (II) THE
TRANSMISSION OR DELMRY OF AI\Y DATA,INFORMATION, OR SERVICE;
ANY INTERRUPTION OF AI\Y SUCH DATA, OUTPUT,INFORMATION, OR
SERVICE (WHETHER OR NOT CAUSED BY PACIFICORP); OR ANY FINAI\CIAL,
BUSINESS, COMMERCIAL, OR OTHER JUDGMENT, DECISION, ACT, OR
OMISSION MADE BY ANY PERSON OR ENTITY BASED UPON OR RELATED TO
THE DATA, OUTPUT,INFORMATION OR SERVICE.
4.10 Interconnection. Counterparty shallhave no claims hereunder against PacifiCorp,
acting in its merchant function capacity, with respect to any requirements imposed by or
damages caused by (or allegedly caused by) acts or omissions of the Transmission Provider or
Interconnection Provider, in connection with the Generation Interconnection Agreement or
otherwise. Counterparty shall defend, indemniff and hold PacifiCorp harmless against any
liability arising due to Counterparty's performance or failure to perform under the Generation
Interconnection Agreement. Counterparty's failure to obtain, or perform under, the Generation
Interconnection Agreement, or its other contracts and obligations to, Transmission Provider or
Interconnection Provider is not a Force Majeure.
4.1I This Article IV shall survive any termination of this Agreement, whether such
termination is by PacifiCorp or Counterparty, and whether or not such termination is on account
of a default.
V. FurtherCounterpartyOblieations
5.1 No Sale. Nothing herein constitutes a sale or purchase of energy or renewable
energy certificates to or by PacifiCorp.
5.2 Tax Benefits. Counterparty shall bear all risks, financial and otherwise
throughout the Term, associated with Counterparty's or the Facility's eligibility to receive any
tax benefits, including production or investment tax credits or accelerated depreciation.
5.3 Further Assurances. At PacifiCorp's request, the Parties shall execute such
documents and instruments as may be reasonably required to effect the essential intent and
purposes hereof.
5.4 Station Service. Counterparty shall be responsible for arranging and obtaining, at
its sole risk and expense, any station service required by the Facility.
5.5 Costs of Ownership and Operation. Without limiting the generality of any other
provision hereof, Counterparty shall be solely responsible for paying when due (a) all costs of
owning and operating the Facility in compliance with existing and future Requirements of Law
and the terms and conditions hereof, and (b) all taxes and charges (however characterized) now
existing or hereinafter imposed on or with respect to the Facility, its operation, or on or with
respect to emissions or other environmental impacts of the Facility, including any such tax or
charge (however characterized) to the extent payable by a generator of such energy or renewable
energy certificates.
5.6 Coordination with System. Counterparty shall be responsible for the coordination
and synchronization of the Facility and the Interconnection Facilities with the System, and shall
be solely responsible for (and shall defend and hold PacifiCorp harmless against) any damage
that may occur as a direct result of Counterpar$r's breach of the Generation Interconnection
Agreement.
5.7 Data Request. Counterparty shall, promptly upon written request from
PacifiCorp, provide PacifiCorp with data reasonably required for information requests from any
Governmental Authorities, state or federal agency intervener or any other party achieving
intervenor status in any PacifiCorp rate proceeding or other proceeding before any govemmental
authority. Counterparty shall use best efforts to provide this information to PacifiCorp
sufficiently in advance to enable PacifiCorp to review it and meet any submission deadlines.
5.8 Additional lnformation. Counterparty shall provide to PacifiCorp such other
information respecting Counterparty or the Facility as PacifiColp mal, from time to time,
reasonably request.
5.9 No Dedication. Nothing herein shall be construed to create any duty to, any
standard of care with reference to, or any liability to any person not a Party hereto. No
undertaking by one Party to the other under any provision hereof shall constitute the dedication
of PacifiCorp's facilities or any portion thereof to Counterparty or to the public, nor affect the
status of PacifiCorp as an independent public utility corporation or Counterparty as an
independent individual or entity.
5.10 Required Policies and Coverases. Without limiting any liabilities or any other
obligations of Counterparty hereunder, Counterparty shall secure and continuously carry with an
insurance company or companies the insurance coverage specified in the Generation
lnterconnection Agreement.
VI. RepresentationsandWarranties.
6.1 Mutual Representations and Warranties. Each Party represents and warrants to
the other that: (i) it is duly organized and validly existing under the laws of the jurisdiction of its
incorporation or organization; (ii) it has the corporate, governmental and other legal capacity and
authority to enter hereinto and to perform its obligations hereunder; (iii) such execution and
performance do not violate or conflict with any law, order or agreement applicable to it; (iv) it
has all governmental and other authorizations that are required to have been obtained or
submitted by it with respect hereto, and they are in full force and effect; (v) its obligations
hereunder are valid, binding and enforceable in accordance with their terms (subject to
bankruptcy or similar laws affecting creditors' rights generally); and (vi) no Event of Default, or
event which with notice and/or lapse of time would constitute such an Event of Default, has
occurred and is continuing or would occur as a result of its entering into or performing its
obligations hereunder.
6.2 Representations and Warranties of Counterpa4v. Counterparty hereby represents
and warrants to PacifiCorp: (i) it is not relying upon any representations of PacifiCorp other than
those expressly set forth herein; (ii) it has entered hereinto with a full understanding of the
material terms and risks of the same, and it is capable of assuming those risks; (iii) it has made
its trading and investment decisions based upon its own judgment and any advice from such
advisors as it has deemed necessary and not in reliance upon any view expressed by PacifiCorp;
(iv) it has not received from PacifiCorp any assurances or promises regarding any financial
results or benefits hereunder; (v) service hereunder is not a utility service within the meaning of
Section 466 of the United States Bankruptcy Code; and (vi) Counterparty holds legal title to the
Facility or otherwise holds the legal right to cause the Facility to enter into this Agreement.
VIL FinancialResponsibilitv.
7.1 Adequate Assurances. Without limiting PacifiCorp's rights under Article VIII
hereof, if Counterparty has failed to make a timely payment hereunder, and PacifiCorp has
reasonable grounds for insecurity regarding the performance of any obligation of Counterparty
hereunder (whether or not then due), PacifiCorp may demand Adequate Assurances of
Performance. "Adequate Assurances of Performance" means sufficient security in the form,
amount, by an issuer or guarantor, and for the term reasonably acceptable to PacifiCorp,
including, but not limited to, cash, a standby irrevocable letter of credit, a prepayment, a security
interest in government securities, an asset or a performance bond or guaranty. Such Adequate
Assurances of Performance shall be provided within three business days after a written demand
is made by PacifiCorp.
VIII. Events of Default: Remedies.
8.1 Event of Default. "Event of Default" means, with respect to a Party (the
"Defaulting Party"):
8.1.1 the failure to render when due any payment or performance hereunder, if
such failure is not remedied within five days after written notice;
8.1.2 the failure to timely provide adequate assurances required pursuant to
Article VII hereof;
8.1.3 any such Party's representation or warranty proves to have been incorrect
or misleading in any material respect when made;
8.1 .4 the failure to perform any other covenant set forth herein if such failure is
not remedied within five days after wriffen notice;
8.1.5 its bankruptcy, if adequate assurances acceptable to PacifiCorp and
approved by the Bankruptcy Court are not provided;
8.1.6 the expiration or termination of any credit support of Counterparty's
obligations hereunder (other than in accordance with its terms) prior to the satisfaction of all
obligations of Counterparty without the written consent of PacifiCorpi or
8.1 .7 In the case of Counterparty
8.1.7.1 Counterparty fails to report generation Data or Output information
to PacifiCorp for the Facility or Counterparty fails to send the data in a format and use the
protocols specified by PacifiCorp as determined by PacifiCorp to be required to meet the
requirements of the WREGIS Operating Rules;
8.1 .7 .2 Counterparty is delinquent in payment to WREGIS of any
WREGIS fees for registration or maintenance of Accounts or Subaccounts, which payment
impairs the ability of PacifiCorp to report Generator Data, Output, or other information to
WREGIS regarding the Facility, which delinquency continues for a period of thirty (30) days;
8.1 .7.3 Counterparty fails to comply with a request by PacifiCorp to
provide evidence of payment of WREGIS fees pertaining to the Facility; or
8.1.7 .4 Counterparty knowingly or intentionally falsifies or misrepresents
any Data, Output information, or other information required by WREGIS.
8.2 Remedies Upon Event of Default. In the Event of Default by a Party and for so
long as the Event of Default is continuing, the non-defaulting Party (the "Performing Party")
shall have the right to do any or all of the following: (l) upon two business days' written notice
to the Defaulting Party, terminate this Agreement; (2) withhold any payments or performance
due in respect of this Agreement; and (3) exercise such other remedies as may be available at law
or in equity or as otherwise provided for herein, to the extent such remedies have not been
otherwise waived or limited pursuant to the terms hereof.
8.3 Setoff. If an Event of Default occurs, the Performing Party may, at its election,
set off any or all amounts which the Defaulting Party owes to it or any Affiliate of the
Performing Party (whether under this Agreement or otherwise and whether or not then due)
against any or all amounts which it or any Affiliate of the Performing Party owes to the
Defaulting Party (whether under this Agreement or otherwise and whether or not then due).
8.4 Payment of Damages. Any amounts due on account of default shall be paid by
the close of business on the next business day following the Defaulting Party's receipt of the
Performing Party's written termination notice setting forth the termination payment due.
8.5 LiMitAtiON Of LiAbiIit.V. THE EXPRESS REMEDIES AND MEASURES OF
DAMAGES PROVIDED HEREIN SATISFY THE ESSENTIAL PURPOSES HEREOF.
FOR BREACH OF AI\Y PROVISION FOR WHICH AN EXPRESS REMEDY OR
MEASURE OF DAMAGE IS PROYTDED, SUCH REMEDY OR MEASURE SHALL BE
TITE SOLE AI\ID EXCLUSIVE REMEDY TIIEREFOR. LIABILITY THAT HAS NOT
BEEN OTIIERWISE EXCLUDED PURSUANT TO THE TERMS HEREOF SHALL BE
LIMITED TO DIRECT ACTUAL DAMAGES ONLY AS THE SOLE AI\D EXCLUSIVE
REMEDY. EXCEPT AS OTHERWISE SPECIFICALLY SET FORTH HEREIN, NO
PARTY SHALL BE REQUIRED TO PAY OR BE LIABLE FOR SPECIAL,
CONSEQUENTIAL, INCIDENTAL, PUNITIYE, EXEMPLARY, OR INDIRECT
DAMAGES, LOST PROFIT OR BUSINESS INTERRUPTION DAMAGES, BY
STATUTE,IN TORT, CONTRACT OR OTHERWISE.
8.6 Survival. This Article survives the expiration or termination hereof.
IX. Force Majeure.
9.1 Except with regard to a Party's obligation to make payments hereunder, in the
event either Party hereto is rendered unable, wholly or in part, by Force Majeure to carry out its
obligations with respect hereto, then upon such Party's (the "Claiming Party") giving notice and
full particulars of such Force Majeure as soon as reasonably possible after the occurrence of the
cause relied upon, such notice to be confirmed in writing or by facsimile to the other Party, then
the obligations of the Claiming Party shall, to the extent they are affected by such Force Majeure,
be suspended during the continuance of said inability, but for no longer period, and the Claiming
Party shall not be liable to the other Party for, or on account of any loss, damage, injury or
expense resulting from, or arising out of such event of Force Majeure. The Party receiving such
notice of Force Majeure shall have until the end of the Business Day following such receipt to
notiff the Claiming Parly that it objects to or disputes the existence of an event of Force
Majeure. 'oForce Majeure" means an event or circumstance which prevents one Party from
performing its obligations hereunder, which event or circumstance was not anticipated, which is
not within the reasonable control of, or the result of the negligence of, the Claiming Party, and
which, by the exercise of due diligence, the Claiming Party is unable to overcome or avoid or
cause to be avoided. Counterparty's failure to obtain, or perform under, the Generation
Interconnection Agreement, or its other contracts and obligations to, Transmission Provider or
Interconnection Provider is not a Force Majeure.
9.2 Force Majeure Does Not Affect Other Obligations. No obligations of either Party
that arose before the Force Majeure causing the suspension of perfoilnance or that arise after the
cessation of the Force Majeure shall be excused by the Force Majeure.
9.3 Strikes. Notwithstanding any other provision hereof, neither Party shall be
required to settle any strike, walkout, lockout or other labor dispute on terms which, in the sole
judgment of the Party involved in the dispute, are contrary to the Party's best interests.
X. Miscellaneous.
l0.l Choice of Law. This Agreement shall be interpreted and enforced in accordance
with the laws of the state of Oregon, excluding any choice of law rules that may direct the
application of the laws of another jurisdiction.
10.2 Restriction on Assignments. Neither Party may assign this Agreement or any of
its rights or obligations hereunder without the prior written consent of the other Party, which
consent shall not be unreasonably withheld. Any purported assignment in violation hereof shall
be void ab initio. This Agreement inures to the benefit of and is binding upon the Parties and
their respective successors and permitted assigns.
10.3 Notices. All notices, requests, statements or payments shall be made to the
addresses set out on the Notices Exhibit. Notices required to be in writing shall be delivered by
letter, facsimile or other documentary form. Notice by facsimile or hand delivery shall be
deemed to have been given when received or hand delivered. Notice by overnight mail or couri-
er shall be deemed to have been given on the date and time evidenced by the delivery receipt.
The Parties may change any of the persons to whom notices are addressed, or their addresses, by
providing written notice in accordance with this Section.
10.4 Entire Aqreement: Counterparts. This Agreement constitutes the entire agreement
between the Parties with respect to its subject matter. This Agreement may not be amended,
changed, modified, or altered unless such amendment, change, modification, or alteration is in
writing and signed by both Parties. This Agreement may be executed in counterparts, including
by telefacsimile transmission, each of which is an original and all of which taken together
constitute one and the same original instrument. This Agreement completely and fully
supersedes all other prior understandings or agreements, both written and oral, between the
Parties relating to the subject matter hereof. If any provision of this Agreement is determined
to be invalid, void or unenforceable by any court of competent jurisdiction, such determination
shall not invalidate, void, or make unenforceable any other provision, agreement or covenant of
this Agreement, provided the basic purposes of this Agreement and the benefits to the Parties are
not substantially impaired.
10.5 No Waiver. Waiver by a Party of any default by the other Party shall not be
construed as a waiver of any other default, nor shall any delay by a Party in the exercise of any
right under this Agreement be considered as a waiver or relinquishment thereof.
10.6 Jurisdiction. Any judicial action arising out of, resulting from or in any way
relating to this Agreement shall be brought only in a state or federal court of Multnomah County,
Oregon. In the event such judicial proceedings are instituted by either Party, the prevailing Party
shall be entitled to award of its costs and attorneys' fees incurred in connection with such
proceedings.
10.7 Jurv Trial \ilaiver. THE PARTIES EACH HEREBY IRREVOCABLY
WAIVE ALL RIGHT TO TRIAL BY JTTRY IN AI\IY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING HERETO, OR THE TRANSAC.
TIONS CONTEMPLATED HEREBY. EACH PARTY FURTHER WAIYES A}tY
RIGHT TO CONSOLIDATE AI\Y ACTION IN WHICH A JURY TRIAL HAS BEEN
WAIYED WITH AI\Y OTHER ACTION IN WHICH A JURY TRIAL CAI\INOT BE OR
HAS NOT BEEN WAIVED.
10.8 No Third Partv Beneficiaries. With the exception of Transmission Provider and
Interconnection Provider, who are express third party beneficiaries hereof, this Agreement
confers no rights whatsoever upon any person other than the Parties and shall not create, or be
interpreted as creating, any standard of care, duty or liability to any person not a Party hereto.
10.9 Relationship of the Parties. Nothing contained herein shall be construed to create
an association, joint venture, trust, or partnership, or impose a trust or partnership covenant,
obligation, or liability on or with regard to any one or more of the Parties. Each Party shall be
individually responsible for its own covenants, obligations, and liabilities under this Agreement.
10.10 Survival. This Article survives the expiration or termination hereof.
[signature page follow sJ
IN WTINESS WHEREOR the Parties have executed this Agreement by their duly
authorized ropresontativos as of the date last below written.
PacifiCorp
By:
Name:
Title:
Date:
<COUNTERPART>
By:
Name:
Title:
Date:
ExhibitA
to Qualified Reporting Entity Services Agreement
Facility and Generation Data
For Facility entEr the following information:
Facility Name and Address or Location:
Meter Number @evice ID):
Faoility's V{REGIS Goneratsr ID:
EIA or QF ID#:
One-line diagram that includes description sf meter locations at the facility - voltage and
location:
f
EXHIBIT II
SELLER AUTIIORIZATION TO RELEASEs
GENERATION I'ATA TO PACIFICORP
TDATEI
Director, Transmission Services
PacifiC,orp
825 NE Multromah, Suite 1600
Portlan4 OR 97232
Re: QueueNo. OTP 208
To Whom it May Concenr:
Larry Oja and Christie Oja (colleotively, "seller'), hereby voluntarily ",rtnoriL PacifiCorp's
Transmission business unit to share Selleds interconnection information with ma*eting firnction
employees of PacifiCorp, including but not limited to those in Eneqgy Sqply Management.
Seller acknowledges that PacifiCorp did not provide it any prefae,nces, either operatimal or rate-
related, in exchange for this voluntary consent
LARRY
CHRISTIE OJA
Date:
EXHIBIT I
REQUIRED INSURANCE
l.l Required Policies and Coverages. Without limiting any liabilities or any other obligations
of Seller under this Agreement, Seller must secure and continuously carry with an insurance
company or companies rated not lower than "A-[VII" by the A.M. Best Company the insurance
coverage specified below:
I .l.l Workers' Compensation. Seller shall comply with any applicable laws or statutes,
state or federal jurisdiction, where Seller performs work.
1.1.2 Employers' Liability. Seller shall maintain employers' liability insurance with
minimum limits covering bodily injury for: $1,000,000 - each accident, $1,000,000 by
disease - each employee, and $1,000,000 by disease - policy limit.
1.1.3 Commercial General Liability. Seller shall maintain insurance to include premises
and operations, contractual liability, with a minimum single limit of $1,000,000 each
occulrence to protect against and from loss by reason of injury to persons or damage to
property based upon and arising out of the activity under this Agreement.
1.1 .4 Business Automobile Liability. Seller shall secure and continuously carry business
automobile liability insurance with a minimum single limit of $1,000,000 each accident
covering bodily injury and property damage with respect to Seller's vehicles whether
owned, hired or non-owned.
1.1.5 Umbrella/excess Liability. Seller shall maintain umbrella or excess liability
insurance on an occurrence and following form basis with a minimum limit(s) as follows:
(a) Facility Capacity Rating at or above I MW - $5,000,000
(b) Facility Capacity Rating below I MW - $2,000,000
l.l.6 Property Insurance. Seller shall maintain property insurance covering equipment
and structures in an amount at least equal to the full replacement value for "all risks" of
physical loss or damage, including coverage for earth movement, flood, boiler and
machinery, and business intemrption. The policy may contain separate sub-limits and
deductibles subject to insurance company underwriting guidelines. Property insurance will
be maintained in accordance with terms available in the insurance market for similar
facilities.
1.2 Additional Provisions or Endorsements.
1.2.1 Except for workers' compensation and property insurance, the policies required must
include provisions or endorsements as follows:
(a) naming PacifiCorp, parent, divisions, officers, directors and employees as
additional insureds;
(b) include provisions that such insurance is primary insurance with respect to
the interests of PacifiCorp and that any other insurance maintained by PacifiCorp
is excess and not contributory insurance with the insurance required under this
schedule; and
(c) cross liability coverage or severability of interest.
1.2.2 Unless prohibited by applicable law, all required insurance policies must contain
provisions that the insurer will have no right of recovery or subrogation against PacifiCorp.
1.3 Certificates of [nsurance. Seller must provide PacifiCorp with certificates of insurance
within ten (10) days after the date by which such policies are required to be obtained, in ACORD
or similar industry form. The certificates must indicate that the insurer will provide thirty (30)
days prior written notice of cancellation. If any coverage is written on a 'oclaims-made" basis, the
certification accompanying the policy must conspicuously state that the policy is "claims made."
1.4 Term of Commercial General Liability Coverage. Commercial general liability coverage
must be maintained by Seller for a minimum period of five (5) years after the completion of this
Agreement and for such other length of time necessary to cover liabilities arising out of the
activities under this Agreement.
1.5 Periodic Review. PacifiCorp may review this schedule of insurance as often as once
every two (2) years. PacifiCorp may in its discretion require Seller to make reasonable changes
to the policies and coverages described in this Exhibit to the extent reasonably necessary to cause
such policies and coverages to conform to the insurance policies and coverages typically
obtained or required for power generation facilities comparable to the Facility at the time
PacifiCorp's review takes place.
EXIIIBIT J
NERC EYENT TYPES
Event
Type
Description of Outages
U1
Unplanned (Forced) OutaetsImmediate - An outage that requires immediate
removal of a unit from service, another outage state or a Reserve Shutdown state
This type of outage results from immediate mechanicaUelectrical/trydraulic
control svstems trips and operator-initiated trips in resDonse to unit alarms.
U2
Unplanned (Forced) Outage-Delayed - An outage that does not require
immediate removal of a unit from the in-service state but requires removal within
six (6) hours. This type of outage can only occur while the unit is in service.
U3
Unplanned (Forced) Outage--Postponed - An outage that can be postponed
beyond six hours but requires that a unit be removed from the in-service state
before the end of the next weekend. This type of outage can only occur while the
unit is in service.
SF
Startup Failure - An outage that results from the inability to synchronize a unit
within a specified startup time period following an outage or Reserve Shutdown.
A startup period begins with the command to start and ends when the unit is
synchronized. An SF begins when the problem preventing the unit from
synchronizing occurs. The SF ends when the unit is synchronized or another SF
occurs.
MO
Maintenance Outage - An outage that can be deferred beyond the end of the next
weekend, but requires that the unit be removed from service before the next
planned outage. (Characteristically, a MO can occur any time during the year, has
a flexible start date, may or may not have a predetermined duration and is usually
much shorter than a PO.)
ME
Maintenance Outage Extension - An extension of a maintenance outage (MO)
beyond its estimated completion date. This is typically used where the original
scope of work requires more time to complete than originally scheduled. Do not
use this where unexpected problems or delays render the unit out of service
beyond the estimated end date of the MO.
PO
Planned Outage - An outage that is scheduled well in advance and is of a
predetermined duration, lasts for several weeks and occurs only once or twice a
Year.
PE
Planned Outase Extension - An extension of a planned outage (PO) beyond its
estimated completion date. This is typically used where the original scope of
work requires more time to complete than originally scheduled. Do not use this
where unexpected problems or delays render the unit out of service beyond the
estimated end date of the PO.
Where
EXHIBIT K
SCHEDULE 38 AI\D PRICING SUMMARY TABLE
Conforming Energy Purchase Price : A&" * MPM
Non-Conforming Energy Purchase Price = Lower of [AR.". * MPM; or PV-85]
Conforming Energy annual rate from Table l, below, for the year of the Net
Output.
monthly On-Peak or Off-Peak multiplier from Table 2, below, that
corresponds to the month of the Net Output and whether the Net Output
occurred during On-Peak Hours or Off-Peak Hours.
85Yo of weighted average of the average Firm Market Price Index for the
month, or portion of month, of Net Output, multiplied by 82.4% to account
for the non-firm nature of the power.
Table l: Conforming Energy Annual Rates
Year
Conforming Energy
Annual Rate (AR".)
$/IVIWh
2023 60.55
2024 59.07
2025 58.96
2026 60.s9
2027 62.99
2028 65.87
2029 68.45
2030 70.57
2031 72.47
2032 74.58
2033 76.64
2034 78.24
2035 79.48
2036 81.07
2037 82.s7
2038 84.34
2039 86.10
2040 88.1 9
2041 90.1 3
2042 91.78
2043 93.76
AR""
MPM
PV-85
Tablti 2: Monthly On-Perk/Olf-Peak Multiptiers
Month On-Peek
Hours
OftPerk
Houre
Januarv l03o/o 94I/o
Februarv l05o/o 97%
March 95o/o $V/o
ADril 95o/o 76Yo
Mav 92o/o 630/o
June 94o/o 65Vo
Julv L2t%92Vo
Aumst l2lo/o l05o/o
Seotember l09Vo 99o/o
October llSo/o l0SVo
November ll0o/o 96%
December l29o/o tzo%
To Seller:
To PacifiCorp:
with a copy to:
With a copy to:
EXIIIBIT L
PARTY NOTICE INFORMATION
Larry and Christie Oja
267 Mill Canyon Road
Malad City,Idaho 83252
Phone: Q08)3174963
Email: [e-mail]
PacifiCorp
825 NE Multnomah, Suite 600
Portland, Oregon 97232- 231 5
Ath: Director, Origination
Email : [e-mail]
PacifiCorp
825 NE Multnomah, Suirc 600
Portland, Oregon 97232- 2315
Attn : Contract Administration
E-mail : cntadmin@pacifi com.com
Pacifi Corp Legal Department
825 NE Multnomah, Suite 1800
Portland, Orcgon 97232- 2315
Attn: Assistant Gencral Counsel
Email : [e-mail]
EXHIBIT 4.9.2
[Subsequent Energy Schedules - as appended]