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HomeMy WebLinkAbout20110126Zentz Affidavit.pdfRonald L. Willams, ISB No. 3034 Wiliams Bradbur, P.C. 1015 W. Hays St. Boise ID, 83702 Telephone: 208-344-6633 Fax: 208-344-0077 ron~willamsbradbur .com E(~E~ j Z31J Jl\N 26 AM Ii :29 Attorneys for Cedar Creek Wind, LLC BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-II-OI Case No. PAC-E-II-02 Case No. PAC-E-II-03 Case No. PAC-E-II-04 Case No. PAC-E-II-05 AFFIDAVIT OF DANA ZENTZ STATE OF Washington ) : ss.County of Spokane ) Dana Zentz, being first duly sworn on oath, deposes and says: 1. I am Vice President, Sumit Power Group, Inc. ("Sumit" or "the Company"). My primar responsibilities include the marketing of power projects and power output from power projects that Sumit develops. In ths role I direct and participate in the Company's efforts related to strcturing and negotiations of commercial transactions related to Summit's portfolio of power generation projects. This includes the approval of pricing and terms for the Company's various proposals for Power Purchase Agreements and Asset Purchase and Sale Agreements. My prior work experience Affidavit of Dana Zentz Cedar Creek Wind Page 1 includes over 25 years pricing, structuring and negotiating large and small purchase and sale transactions in the Pacific NW and Western US wholesale natural gas and power markets. I have also had significant involvement in power project development activity and purchase and sale transactions for power generation assets. My experience includes working for utilities and for energy merchant firms as well as power project developers. I have held positions at Avista Corporation, Avista Energy, Inc., EES Consulting (consulting for utilties), Wiliams Energy Marketing and Trading, Inland Energy Consulting (consulting for energy merchants), and National Fuel Marketing Company. 2. Cedar Creek Wind, LLC ("Cedar Creek" or "CCW") is a wind power project development company. Cedar Creek has executed wind project leases for over 5000 acres of land in Bingham County Idaho. Cedar Creek Wind LLC was formed in 2008. The majority owner of Cedar Creek is Western Energy Group, LLC (a Uta LLC) of Salt Lake City, Uta. The minority owner of Cedar Creek is Sumit Cedar Creek Holdings, LLC (a Delaware LLC) which is a wholly owned affliate of the Sumit Power Group, Inc, of Bainbridge Island, W A. Since 2008 Cedar Creek has crafted a number of different wind project proposals utilizing the lands controlled by Cedar Creek. Proposals have been made since this time to a number of Pacific NW and Californa utilities, including PacifiCorp. 3. In 2008 Cedar Creek proposed in the PacifiCorp 2008R-I RFP a single 151.8 MW wind project. This CCW proposal was initially short-listed in that RFP, contrar to statements made by PacifiCorp in the five Applications for Approval of PP As between RMP and CCW i filed by PacifiCorp on Januar 10, 2011. The original bid in i IPUC Cases: (i) PAC-E-II-OI, (ii) PAC-E-II-02, (ii) PAC-E-II-03, (iv) PAC-E-II-04, and (v) PAC-E- 11-5.. Affdavit of Dana Zentz Cedar Creek Wind Page 2 that RFP process was submitted by CCW to PacifiCorp in December 2008. In May of 2009 CCW was asked by PacifiCorp to prepare "best and final" pricing in conjunction with that bid. Recognizing the inherent bias PacifiCorp had exhibited in the past - and which continues today - against power purchase agreements and in favor or utilty asset ownership, CCW proposed as its final offer an asset purchase and sale agreement wherein PacifiCorp would pay CCW $325.6 milion or $2I45/installed kW of nameplate wind capacity. The net capacity factor of the project proposed was 31.6%, based on approx. 419,800 MWhyear of energy production. The proposed commercial operation date was September 2010. The 2008 bid by CCW was ultimately not selected by PacifiCorp in that RFP. The 2008 project configuration included 66 units of Siemens WTG 2.3-93. Each 2.3 MW unt had 93 meter rotors and 80 meter hub height towers in this case. 4. Cedar Creek Wind also paricipated in PacifiCorp's 2009R-I renewable RFP, submitting a bid for the same Bingham County site but with a different project configuration and terms from its 2008 proposal. For the 2009 RFP, CCW's proposal was for a two phase wind project with phase I at 98.9 MW and phase II at 52.9 MW; for a tota of 151.8 MW. In this proposal CCW offered Siemens 2.3MW - 101 meter swept diameter wind turbines on 100 meter towers, which is another distinct difference between the 2008 and 2009 RFP responses. This second proposal included both an asset purchase and sale agreement which included PacifiCorp paying $222 milion for the 98.9 MW phase I or $2245/installed kW of nameplate wind capacity, and a long term PPA with a staring price of $72.50/MWh escalating at 1.25%. The proposed commercial operation date was September, 2010. The PPA price in that second bid proposal in 2009 was below the then existing first year non-Ievelized avoided cost rate of PacifiCorp in Idaho of Affdavit of Dana Zentz Cedar Creek Wind Page 3 $75.83/MWh for a project staing in 2010. The net capacity factor of the project proposed was 31.8%. Neither of these two proposals was short-listed by PacifiCorp in the 2009 RFP. 5. In early Januar, 2010, CCW informed Bruce Griswold of its desire to negotiate two PURP A contracts for wind projects of approximately 78.5 MW. On Janua 20, 2010 CCW provided Bruce Griswold of PacifiCorp with hourly generation profiles, by month, for the two 78 MW projects and asked Mr. Griswold to perform the required integrated resource (IR) model analysis that calculated the avoided cost rates applicable to these two 78 MW wind projects. See Attachment No 1. That email to Bruce also noted that, in conjunction with this wind data being provided and the relatively matue state of the CCW interconnection request, that CCW was in compliance with PacifiCorp's Uta PSC checklist of requirements for PURPA projects (UPSC Schedule 38), with the exception of (i) site location, and (ii) PURP A self certification evidence. PacifiCorp had previously informed CCW that CCW needed to comply with the "Procedures" portion of this schedule, in order to perfect its rights to a PP A with pricing provisions. A copy ofP.S.C.U No 47, RMP Electric Service Schedule No. 38 is attched as Attachment No.2. Bruce estimated it would tae between two and four weeks to produce a modeled avoided cost rate for the two projects. 6. At this point in time, unelated to any PURP A activity and as a matter of due course in the development process, CCW was also substantially complete in compliance with interconnection and transmission system upgrade requirements. PacifiCorp had provided interconnection study results to CCW and there were no Affidavit of Dana Zentz Cedar Creek Wind Page 4 anticipated fatal flaws or reliability concerns pertaining to the interconnection of the Project identified in the study results provided. By the time CCW and PAC were in discussion about the PURP A agreements in question, CCW had taen the following actions related to transmission interconnection and also relating to establishing a firm transmission path from the Goshen Substation point of interconnection to the PAC load center at Salt Lake City: a. CCW paid PacifiCorp significant fuds for interconnection studies and to faciltate generator interconnection pursuant to PacifiCorp's OATT: 1. The Project's Transmission Interconnection request was submitted on December 19, 2008, for interconnection of 151.8 MW at the Goshen Substation at 115/138 kV; a $10,000 payment accompanied the request. On Janua 27, 2009, CCW signed the SIS agreement and fuded PacifiCorp $50,000 (total interconnection costs spent to date $60,000). On April 21, 2009, Cedar Creek Wind submitted a request to change the requested interconnect voltage to 345kV. 11. The Large Generator System Impact Study Report was issued by PacifiCorp on July 22, 2009. On August 21, 2009, Cedar Creek executed the Facilities Study Agreement and fuded the study with a deposit of $100,000 (total interconnection costs spent to date = $160,000). PacifiCorp issued the Final Facilities Study Report on March 18, 2010, for interconnection of 151.8 MW at the Goshen Substation at 345kV. No serious reliability or network upgrade Affidavit of Dana Zentz Cedar Creek Wind Page 5 issues were identified for mitigation as a result of the studies performed. 11. Cedar Creek executed an interconnect Engineering and Procurement (E&P) Agreement on September 15, 2009 and provided a $100,000 deposit with the RMP E&P Agreement (tota interconnection costs spent to date = $260,000). PacifiCorp provided Cedar Creek with a draft LGIA on April 15, 2010. iv. PacifiCorp advised CCW late in 2010 that a QF version of the LGIA would be required for the QF generation project interconnection, rather than PAC's standard LGIA. Cedar Creek and PacifiCorp are curently negotiating a Qualifying Facility Large Generator Interconnection Agreement (QFLGIA). PacifiCorp delivered a draft QFLGIA documents to Cedar Creek on Januar 13, 2011. Again there are no major reliabilty or network upgrade issues identified for mitigation as a result of the QFLGIA. b. Relating to firm transmission from Goshen to Mona (Salt Lake City) CCW paid PacifiCorp over $215,000 to establish long term firm point to point transmission service. 1. Cedar Creek submitted an OASIS request on Janua 11,2010, for 99 MW of long term firm point-to-point transmission from Goshen to PacifiCorp's Mona substation. A one month's security deposit in the amount of $200,475 for the transmission service request was Affidavit of Dana Zentz Cedar Creek Wind Page 6 provided to PacifiCorp on Januar 19,2010. In order to grant ths service to CCW, PacifiCorp collected an additional $15,000 PTP SIS study deposit. (Total PTP costs spent to date $215,475) 11. The Long Term Point to Point Transmission Service agreement was granted by PAC and signed by Cedar Creek on May 12,2010 and by PacifiCorp on May 24, 2010. c. In total, Cedar Creek has been engaged with PacifiCorp on transmission and interconnection issues since 2008 and has paid PacifiCorp in excess of $475,000 for interconnection and transmission studies. As a result, CCW has been advised by PAC that the generator interconnection service as well as the requested firm PTP service will be provided by PAC without major reliabilty problems or significant network upgrades to the PacifiCorp system. 7. In early February, 2010, CCW inquired of Bruce Griswold as to when he could expect to provide model-based avoided cost pricing. Several weeks later, on Februar 23, 2010, another request was made as to when modeled avoided cost pricing would be available. In a phone conversation with CCW Bruce Griswold informed CCW that modeled pricing results would be available the first week in March. That conversation was confrmed by emaiL. See Attachment No. 3 8. During the first quarer of 2010 CCW was hearng ruors of a pending price change in SAR based avoided cost rates on file at the Commission for projects smaller than 10 aMW in size. In spite of hearing such ruors, CCW elected to stay-the- course in good faith negotiations relating to the two 78 MW project configurations, rather Affidavit of Dana Zentz Cedar Creek Wind Page? than switching and rushing to attempt to qualify for the stadard avoided cost rate for smaller 10 aMW PURP A projects. CCW made this decision in the mistaen belief that the calculated avoided cost rates would reasonably reflect market rates for wind power development that CCW was observing throughout the west, would be in relative correlation to the published SAR avoided cost, and would be suffcient to justify project development. Meanwhile, on March 16, 2010, the Commission established new, lower avoided cost rates for all utilities, including PacifiCorp, which were significantly below rates the rates in effect prior to that date. 9. By late March CCW stil did not have IR calculated rates for its two 78 MW wind projects. On March 24,2010, my attorney and I met with Bruce Griswold and his attorney, Ken Kaufman in Portland. First and foremost on our list was to discover why it was eight weeks without calculated rates and why PacifiCorp was taking so long to make the calculation. The only answer given for the delay was the workload of the PacifiCorp employees. In that meeting Bruce Griswold informed us that modeled pricing results would not be available until the first week of ApriL. 10. On AprilS, 2010 PacifiCorp finally provided CCW a term sheet that included avoided cost pricing for our two wind projects; almost three months after requesting it. See Attachment No.4. The commercial operation date proposed was Januar 2012. Pricing proposed by PAC was as follows: Affidavit of Dana Zentz Cedar Creek Wind Page 8 Year HLH LLH Flar 2012 $47.78 $22.74 $37.05 2013 $50.91 $25.26 $39.92 2014 $55.42 $26.56 $43.05 2015 $59.22 $27.06 $45.44 2016 $66.07 $33.69 $52.19 For the first year of operation, the "flat" price is the direct comparison to the published SAR calculated price of $63.97/MWh non-Ievelized rate, before the wind integration discount. In effect, the price proposal by PacifiCorp for the two CCW wind projects was 35% below the published stadard rate effective afer March 16,2010, and 50 % below the same rate applicable before March 16,2010. 11. In the judgment of CCW, and based on CCW's bidding experience with PacifiCorp in earlier wind or renewable RFPs, the rates proposed by PacifiCorp were far below "market" prices for wind generated electricity being built by PacifiCorp, bid to PacifiCorp and/or sold to PacifiCorp. I would also note that rates proposed by PacifiCorp to CCW were also significantly below the IR calculated avoided cost rate contained in the contract between Idaho Power and Ridgeline Energy for the 78 MW Rockland Wind Project. It was also apparent to me that the reason PacifiCorp had waited so long to provide these rate calculations to CCW was that they did not want to do so before the Commission reduced the stadard SAR based rates on March 16, 2010. Consequently, Cedar Creek came to the conclusion the IR calculated avoided cost rate was not desirable and a more reasonable method by which it could successfully build a wind generation facilty in Idaho was to confgue yet again in a new maner that comprised five 10 aMW 2 flat pricing derived by CCW based on PacifiCorp provided LLH and HLH pricing. Affidavit of Dana Zentz Cedar Creek Wind Page 9 PURPA projects with non-levelized avoided cost rates of$67.97/MWh in 2012, less wind integration charges. 12. In May of20IO I notified Bruce Griswold ofPacifiCorp that CCW wished to negotiate five separate PURPA contracts for wind projects which did not exceed 10 aMW in monthly generation. See Attachment NO.5. Bruce Grswold responded to CCW's five requests on May 21, 2010, noting that: "Overall the information (submitted) is suffcient to begin drafts of each (of the 5) PP As" and stating that he expected to have a prototype PP A drafted and "ready for circulation late next week after internal review here." See Attachment NO.6. 13. In June, July and August Bruce Griswold and I continued a stream of communcation, with him asking for additional information and me providing it to him. The information requested involved a high degree of project scrutiny on PacifiCorp's par and at a level of due diligence inquiry that I would describe as more common when a utility is looking to purchase and own a generating asset. Some of the information requested was not relevant to a smaller PURP A project delivering power pursuat to a PPA and the contract "compliance" required by PacifiCorp appeared to me, in par, designed to slow down CCW's progress achieving a signed PP A. The information requested or provided over the course of these months included: (i) interconnection requests, responses, and studies, (ii) site control documentation, (iii) site location and maps, (iv) tubine generator equipment specifications, (v) Bingham County special use permits, (vi) electrical drawings, (iv) wind studies, (vii) monthly power deliveries and (viii) milestone development schedules. Affidavit of Dana Zentz Cedar Creek Wind Page 10 14. On September 30, 2010 I received an email from Bruce Griswold stating: "I have done the preliminary review of the project documents and they look complete." Bruce continued by saying he would like to schedule a short call later the following week to conduct a final review on interconnection and transmission capacity "and to ensure everyhing is lined up so that we can finalize the PP A and merchant can request network resource designation for the projects." See Attachment NO.7. PacifiCorp submitted a first draft PPA to CCW with IPUC approved standard pricing provisions on July 21, 2010, approximately two months after it was requested. 15. Staring in August 2010 I and others from the CCW team continued to trade information with Bruce Griswold and his attorney, and to request some changes to contract language. A few changes were acceptable but for the most par, revisions to the agreement were rejected by PacifiCorp. The one issue of contention that remained however was the refusal by PacifiCorp to insert a contract provision, similar to the Idaho Power PURPA contracts, that the renewable energy credits (RECs) would be owned by CCW. Ultimately, we stalemated on this point, agreed that the contract would remain silent as to REC ownership and notified PacifiCorp of this concession. On November 29, 2009 I received an email from Ken Kaufman, legal counsel to PacifiCorp, transmitting a "proposed final redline" PP A for the Coyote Hil wind project, with the additional notation that when the Coyote Hil PPA is finalized, PacifiCorp wil commence preparng the other four PP As using the same contract prototye. My response the next day made a couple of anotations in the body of this PP A and otherwse noted that "we have nothing further" to add or request. See Attachment NO.8. Affidavit of Dana Zentz Cedar Creek Wind Page 11 16. Even though CCW had reached complete agreement with PacifiCorp as of November 29, 2010 as to the terms and conditions of a PPA, multiple reasons for last minute delays in contract execution began to arise. For example, a week later, on Friday December 3, 2010 Bruce Griswold informed me by email that the PacifiCorp PPA "approval process has slowed a bit specific to Coyote Hil" related to PacifiCorp's "credit approval process." In response, I proposed that Scott Montgomery, President of CCW come to Portland the following week, work with Bruce to resolve any outstading issues and stad by ready to execute the PPAs as soon as they were ready, in an effort to "avoid any delay due to execution in counterpars." PacifiCorp did not accept this offer. See Attachment NO.9. 17. Another week had gone by. On Monday December 6,2010 I placed a call to Bruce Griswold to determine the latest status of PPA approval by PacifiCorp. Bruce did respond to my phone call by email the next day, on Tuesday, December 7, giving me the following encouraging news: "We are pushing through approvals. Credit should have theirs finalized for all projects tomorrow. We expect to have all PPAs and documents ready for your final review and check of volumes, etc, by Wednesday (December 8)." See Attachment No. 10. This good news did not last for very long, however. 18. The following day, Thursday December 9, 2010 Bruce Griswold informed me by phone that while the legal and credit reviews of the PP As were now complete, PacifiCorp management review of the agreements was not finished, and he would not be authorized to sign the PP As until such review was done. Bruce told me however he expected to have management authorization to sign and would be ready to execute the Affidavit of Dana Zentz Cedar Creek Wind Page 12 PPAs on Monday, December 13. Following this conversation Bruce emailed to me the final, pdf versions of all five contracts. See Attachment No. 11. 19. On Monday December 13,2010, the day before the anounced "effective date" by which the Commission determines which PURP A projects, if any, are no longer entitled to published rates for 10 aMW contracts, PacifiCorp refused to sign the five CCW PP As. Bruce Griswold informed me that the reason for delay was that management had not completed its review of the contracts. In response, CCW, on December 13,2010, signed the five PPAs prepared in final form by PacifiCorp for execution and delivered those signed agreement to Bruce Griswold at PacifiCorp. Bruce Griswold instructed me not fill in the "date of execution" on the first page of the PPA as being December 13, 2010, and said PacifiCorp would instead fill in that date when they signed. 20. PacifiCorp management did not authorize Bruce Griswold to counter execute the five Cedar Creek PP As until December 21. Bruce Griswold signed them the next day, December 22, 2010. In his email to CCW notifying us of the signatue he indicated that although the recital page shows a December 22, 2010 date, that "the filing to the Idaho PUC wil establish your LOL date as 12/13/2010 prior to the 12/14/2010 deadline." See Attachment No. 12. 21. The five applications filed by PacifiCorp with the Commission regarding the CCW PP As 3 fail to request the Commission's approval of the five contracts, fail to make any showing or justification as to CCW's entitlement to Commission ordered standard avoided costs available on or before December 14, 2010, and implies that the contracts should be rejected by the Commission because they were executed after 3 See footnote 1. Affidavit of Dana Zentz Cedar Creek Wind Page 13 December 14,2010. The five applications on page 8 state that "(O)n December 22,2010 RMP and Cedar Creek entered into a PP A pursuant to the terms and conditions of the varous Commission Orders applicable to this PURP A agreement for wind resources." This statement appears to be a direct contradiction of Bruce Griswold's previous statement that the "filing to the Idaho PUC will establish your LOL date as 12/13/2010 prior to the 12/14/2010 deadline." 22. In summary, CCW has been attempting to negotiate a wind contract for approximately 150 MW of Idaho based wind power with PacifiCorp since 2008. We, like almost all others in Idaho, failed in that endeavor. Cedar Creek Wind only tured to the 10 aMW standard rates and contract terms, after exhausting all other avenues of attempted mutual, good faith negotiations. Even then, it took the better par of 2010 to "negotiate" what was essentially a stadard form contract with a pre-determined standard tarff rate. 23. CCW worked diligently to comply with and did timely comply with all known rules and requirements necessar to complete the PURP A agreements that were ultimately executed. Whle PacifiCorp worked with CCW to complete the PURPA agreements, CCW felt compelled to continually monitor PAC's timeliness in the negotiations as there was a consistent pattern of slow responses. Even so, all material outstading contract issues between CCW and PacifiCorp were resolved by November 29,2010 and the paries had, by that date, arved at a meeting of the minds. CCW was simply forced to wait for three weeks for PacifiCorp credit, legal and management reviews of the contracts, before contract execution by PacifiCorp. Affidavit of Dana Zentz Cedar Creek Wind Page 14 DATED: Ths~day of Janua 2011. SUBSCRIBED AND SWORN to before me this ~ lt.........~Il LYNA~-,~Qr;......:" ~~ 1'l'..ë,o\AM. El,ö..:.' I eel _~OTA~,~ ..~\.... '" r .,¡.¡:E: e- :"1. . . CD.· . A . I\ ~..~~ lJSL\C ~~.: ~ I '..",,1 ..'IFiY 1&. ~..~O, "~¡WÅŠ~\~'""ai..'" 0- Affdavit of Dana Zentz Cedar Creek Wind Page 15 BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RM AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-ll-Ol Case No. PAC-E-II-02 Case No. PAC-E-II-03 Case No. PAC-E-ll-04 Case No. PAC-E-ll-05 ATTACHMENT 1 TO AFFIDAVIT OF DANA ZENTZ From: Ronald Williams sent: Wednesday, January 20, 2010 2:43 PM To: 'Griswold, Bruæ iMkt Function)' cc: 'Steven Montgomery'; SCtt Montgomery; Tom cameron; Robert Gavahan¡ Wade Riser; Dana Zentz Subjec: FW: PAC QF compliance Bruce, Attached are the hourly generation profiles. by month, for the two Cedar Creek Wind Farms in Eastern Idaho. Each wind farm (CC1 and CC2) will be approximately 78.2 MW and have the same generation profiles as shown on the atchment. With this information, could you please start the avoided cost modeling runs for these two projects? Also, wil you have to run the model twice, or wil one run suffce for both projects of nearly identical size and wind profiles? You also referenced that we should be following RMP electric service schedule No. 38; a Utah Public Service Commission Schedule. Is this schedule also applicable for PURPA contrcts in Idaho? The attached information is that requested by item B.2.c.of UPSC Schedule 38. With this attached information and in conjunction with the Cedar Creek Interconnection request to PAC and accompanying materials, it appears that the applicable information requested by section B.2 of Schedule 38 has been provided, with the following exceptions: · Subsection 2.d): while you have general site loction information and point of interconnection for CC1 and CC2, we will give you a more detailed map of the two wind projects and confirm that permitting has ben completed. . Subsection 2.f): demonstration of abilty to obtain QF status, and · Subsection 2.j): proposed contract term and pncing. You will be working on this last point (2.j). Would you please send to me a working draft of a contract you would start with, for Idaho wind power. We will provide you the QF status information referenced in 2.f. Regards, RO'W~ Willams Brabur, p.e lOIS W. Hays St, Boise 1083702 208.344.6633 BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICA nON ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-ll-OI Case No. P AC-E-II-02 Case No. PAC-E-II-03 Case No. PAC-E-II-04 Case No. PAC-E-II-05 ATTACHMENT 2 TO AFFIDAVIT OF DANA ZENTZ ~. .ROCKY MOUNTAINPOER.. oiSl Of Po\FiCO P.S.C.v. No. 47 Original Sheet No. 38.1 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 38 STATE OF UTAH Qualifying Facilty Procedures AVAILABILITY: To owners of Qualifying Facilities (QFs) in all territory served by the Company in the state of Utah. APPLICATION: To owners of existing or proposed QFs with a design capacity greater than 1,000 kW for a Cogeneration Facilty or greater than 3,000 kW for a Small Power Production facilty who desire to make sales to the Company. Such owners wil be required to enter into written power purchase and interconnection agreements with the Company pursuant to the procedures set forth below. Additional or different requirements may apply to Utah QFs seeking to make sales to third-parties, or out-of-system QFs seeking to wheel power to Utah for sale to the Company. I. Process For Negotiating Power Purchase Agreements A. Communications Unless otherwise directed by the Company, al1 communications to the Company regarding QF power purchase agreements should be directed in writing as follows: Rocky Mountain Power Manager - QF Contracts 825 NE Multnomah St, Suite 600 Portland, Oregon 97232 The Company wil respond to all such communications in a timely manner. If the Company is unable to respond on the basis of incomplete or missing information from the QF owner, the Company shall indicate what additional information is required. Thereafter, the Company will respond in a timely manner following receipt of all required information. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 06.035.2) FILED: December 7. 2006 EFFECTIVE: December i i. 2006 ~..ROCKY MOUNTAIN. POER A DISIO OF I'IFlCORP P.S.C.U. No. 47 Original Sheet No. 38.2 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued B. Procedures i. The Company's proposed generic power purchase agreement may be obtained from the Company's website at ww.pacificorp.com. or if the owner is unable to obtain it from the website, the Company wil send a copy within seven days of a written request." 2. To obtain an indicative pricing proposal with respect to a proposed project, the owner must provide in writing to the Company, general project information reasonably required for the development of indicative pricing, including, but not limited to: a) generation technology and other related technology applicable to the site b) design capacity (MW), station service requirements, and net amount of power to be delivered to the Company's electric system c) quantity and timing of monthly power deliveries (including project ability to respond to dispatch orders from the Company) d) proposed site location and electrical interconnection point e) proposed on-line date and outstanding permitting requirements f) demonstration of ability to obtain QF status g) fuel type (s) and source (s) h) plans for fuel and transporttion agreements i) proposed contract term and pricing provisions (i.e., fixed, escalating, indexed) j) status of interconnection arrangements 3. The Company shall not be obligated to provide an indicative pricing proposal until all information described in Paragraph 2 has been received in writing from the QF owner. Within 30 days following receipt of all information required in Paragraph 2, the Company wil provide the owner with an indicative pricing proposal, which may (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 06-035-21 FILED: December 7, 2006 EFFECTIVE: December l l, 2006 ~. ROCKY MOUNTAINPOER A DISlO OF ""CIFICOA P.S.C.U. No. 47 Original Sheet No. 38.3 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued B. Procedures (continued) include other indicative terms and conditions, tailored to the individual characteristics of the proposed project. Such proposal may be used by the owner to make determinations regarding project planning, financing and feasibilty. However, such prices are merely indicative and are not final and binding. Prices and other terms and conditions are only final and binding to the extent contained in a power purchase agreement executed by both parties and approved by the Commission. The Company wil provide with the indicative prices a description of the methodology used to develop the prices. 4. If the owner desires to proceed forward with the project after reviewing the Company's indicative proposal, it may request in writing that the Company prepare a draft power purchase agreement to serve as the basis for negotiations between the parties. In connection with such request, the owner must provide the Company with any additional project information that the Company reasonably determines to be necessary for the preparation of a draft power purchase agreement, which may include, but shall not be limited to: a) updated information of the categories described in Paragraph B.2, b) evidence of adequate control of proposed site c) identification of, and timelines for obtaining any necessary governmental peits, approvals or authorizations (continued) Issued by authority of Report and Order of the Public Service Commission of Uta in Docket No. 06-035-2 i FILED: December 7, 2006 EFFECTIVE: December i 1,2006 ~~~OUNTAIN P.S.C.U. No. 47 Original Sheet No. 38.4 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued B. Procedures (continued) d) assurance of fuel supply or motive force e) anticipated timelines for completion of key project milestones f) evidence that any necessar interconnection studies have been completed and assurance that the necessary interconnection arrgements are being made in accordance with Part II. 5. The company shall not be obligated to provide the owner with a draft power purchase agreement until all information required pursuant to Paragraph 4 has been received by the Company in writing. Within 30 days following receipt of all information required pursuant to paragraph 4, the Company shall provide the owner with a draft power purchase agreement containing a comprehensive set of proposed terms and conditions, including a specific pricing proposal for purchases from the project. Such draft shall serve as the basis for subsequent negotiations between the parties and, unless clearly indicated, shall not be construed as a binding proposal by the Company 6. After reviewing the draft power purchase agrement, the owner may prepare an initial set of written comments and proposals regarding the draft power purchase agreement and forward such comments and proposals to the Company. The Company shall not be obligated to commence negotiations with a QF owner until The Company has received an initial set of written comments and proposals from the QF owner. Following the Company's receipt of such comments and proposals, the owner may contact the Company to schedule contract negotiations at such times and places as are mutually agreeable to the parties. In connection with such negotiations, the Company: a) will not unreasonably delay negotiations and wiJ respond in good faith to any additions, deletions or modifications to the draft power purchase agreement that are proposed by the owner (continued) Issued by authority of Report and Order of the Public Service Commission of Uta in Docket No. 06-035-21 FILED: December 7,2006 EFFECTIVE: December 1 i, 2006 ~~MONTAIN P.S.C.U. No. 47 Original Sheet No. 38.5 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued B. Procedures (continued) b) may request to visit the site of the proposed project if such a visit has not previously occurred c) wil update its pricing proposals at appropriate intervals to accommodate any changes to the Company's avoided-cost calculations, the proposed project or proposed terms of the draft power purchase agreement d) may request any additional information from the owner necessary to finalize the terms of the power purchase agreement and satisfy the Company's due dilgence with respect to the Project. 7. When both parties are in full agreement as to all terms and conditions of the draft power purchase agreement, the Company wil prepare and forward to the owner a final, executable version of the agreement. The Company reserves the right to condition execution of the power purchase agreement upon simultaneous execution of an interconnection agrement between the owner and the Company's power delivery function, as discussed in Part II. Prices and other terms and conditions in the power purchase agreement wil not be final and binding until the power purchase agreement has been executed by both parties and approved by the Commission. II. Process for Negotiating Interconnection Agreements In addition to negotiating a power purchase agreement, QFs intending to make sales to the Company are also required to enter into an interconnection agrment that governs the physical interconnection of the project to the Company's transmission or distribution system. The Company's obligation to make purchases from a QF is conditioned upon all necessary interconnection arrangements being consummated. It is recommended that the owner initiate its request for interconnection as early in the planning process as possible, to ensure that necessary interconnection arrangements proceed in a timely manner on a parallel track with negotiation of the power purchase agreement. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Doket No. 06-035~21 FILED: December 7, 2006 EFFECTIVE: December i i, 2006 ~~OUNTAIN P.S.C.U. No. 47 Original Sheet No. 38.6 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued II. Process for Negotiating Interconnection Agreements (continued) Because of functional separation requirements mandated by the Federal Energy Regulatory Commission, interconnection and power purchase agreements are handled by different functions within the Company. Interconnection agreements (both transmission and distribution level voltages) are handled by the Company's power delivery function. A. Communications Initial communications regarding interconnection agreements should be directed to the Company in writing as follows: Rocky Mountain Power Manager-QF Contracts 825 NE Multnomah St, Suite 600 Portland, Oregon 97232 Based on the project size and other characteristics, the Company wil direct the QF owner to the appropriate individual within the Company's power delivery function that will be responsible for negotiating the interconnection agreement with the QF owner. Thereafter, the QF owner should direct all communications regarding interconnection agreements to the designated individual, with a copy of any written communications to the address set forth above. B. Procedures Generally, the interconnection process involves (l) initiating a request for interconnection, (2) completion of studies to determine the system impacts associated with the interconnection and the design, cost, and schedules for constructing any necessary interconnection facilties, (3) execution of an Interconnection Facilties Agreement to address facility construction, testing and acceptance and (4) execution of an Interconnection Operation and Maintenance Agreement to address ownership and operation and maintenance issues. Consistent with PURPA, the owner is responsible for all interconnection costs assessed by the Company on a nondiscriminatory basis. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Doket No. 06-035-2 J FILED: December 7, 2006 EFFECTIVE: December 1 i, 2006 ~~~OUNTAIN P.S.C.U. No. 47 Original Sheet No. 38.7 ELECTRIC SERVICE SCHEDULE NO. 38 - Continued II.B.Procedures (continued) For interconnections impacting the Company's Transmission System, the Company wil process the interconnection application through PacifiCorp. Transmission Services following the procedures for studying the generation interconnection described in the Company's Open Access Transmission Tariff, PacifiCorp FERC Electric Tariff, Fifth Revised Volume NO.1 i Pro Forma Open Access Transmission Tariff (OA TT) on fie with the Federal Regulatory Commission. A copy of the OATT is available on-line at httpllww.oasis.pacificorp.com. For interconnections impacting the Company's Distribution System only, the Company wil process the interconnection application through the Manager of QF Contracts at the address shown in Section ILA. Issued by authority of Report and Order of the Public Service Commission of Utah in Doket No. 06-035-21 FILED: December 7, 2006 EFFECTIVE: December 11, 2006 BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICA nON ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RM AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-II-Ol Case No. PAC-E-II-02 Case No. PAC-E-II-03 Case No. PAC-E-II-04 Case No. PAC-E-II-05 ATTACHMENT 3 TO AFFIDAVIT OF DANA ZENTZ Page i oft From: Ronald Willams Sent: Tuesday, F8bSf'-.l'aG0 11 :53 PM To: 'Bruce Griswold (bruce.griswold~pacifjcorp.com)' Cc: 'Steven Montgomery'; 'Scott Montgomery'; 'Tom Cameron'; 'Robert Gavahan'; 'Dana Zentz' Subject: Cedar Creek Wind Contacts: Bruce Griswold Bruce, As we discussed, Pacllalnth'fNprlll.cølln1t evii."...rtilion,_lW'15 MW (apro) Cedr Crek wind pf0 ir ea id. You"" to hae'tl cln cas availabl Ö'e fil"l of next we. The results wil go through an internal reiew (which could take a couple of days), but there is a good possibility we wil have this pricing results the middle ofneYl poibas eal1. we Ma 3. Thank you for this information. As I explained, we are very anxious for these results and committed to moving forward with development as son as we can. RO'W~ Wiliams Bradbury, P.C 10 i 5 W. Hays St, Boise ID 83702 208.344.6633 BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-II-OI Case No. P AC-E-II-02 Case No. P AC-E-II-03 Case No. PAC-E-II-04 Case No. P AC-E-II-05 ATTACHMENT 4 TO AFFIDAVIT OF DANA ZENTZ From: Griswold, Bruce l:Mkt Function) (mailto:Bruce.Griswold(9PadfiCorp.comJ sent: Monday, April OS, 2010 1:35 PM To: Ronald Williams; Dana Zentz Subject: Cedar Creek Wind QF Termsheet 04052010.doc Ron/Dana Please find the attached term sheet with indicative pricing for the two Cedar Creek Wind QF projects proposed. I have only included a single term sheet since you have proposed the projects as identical projects with identical wind shapes, etc. Pricing wil be the same for both projects. Because of Path C constraints in the area, there is a possibilty of generation curtilment and I have included curtailment language in the terms and conditions. Cedar Creek Wind LLC is developing two proposed wind projects located 3.2 miles northeast of and delivering to the Goshen Substation, east of Shelly in Bingham County, Idaho. Each project wil have a net nameplate output of 78.2 MW and will have a 28.0% net capacity factor. In summar, the proposed price is $56.06/MWH on a 20-year nominal levelized payment basis staing Januar I, 2012 though December 3 I, 203 I . The pricing has been adjusted for the $6.50 per MWh wind integration. The price does not include RECs and assumes that Cedar Creek retains ownership of the RECs. Cedar Creek Wind pricing was done in accordance with non-stadard (project grater than 10 MW A) QF pricing as the Idaho Commission ordered the methodology in Docket IPC-E-95-9, a 1996 docket. In Idaho, avoided costs for non-standard QFs are baed on an IRP based differential revenue requirement method. The Company has prepared avoided costs using the partial displacement differential revenue requirement method ("PDDRR") using an IRP gas proxy as the deferred resource and a 15% capacity contribution in accordance with the IRP for implementing the Commission ordered methodology. The CCCT used for calculation is an East Side 607 MW Wet 2xl CCCT as listed in Table A.4 of the 2008 IRP Update fied with the Commission on March 31, 2010. The parial displacement is 11.7 MW (78.2 MW x 15% wind capacity contrbution). Capital cost and O&M costs are paid based on 11.7 MW of the CCCT. Major Assumptions The following are assumptions used in our evaluation: * PDDRR avoided cost methodology * Load Forecast - 20- Year load forecast dated October 2010 * Price Forecast - December 2009 Offcial Forward Price Cure (1209) * IRP Resources - 2008 IRP Update preferred portfolio (Table A.4) * Wind integration costs consistent with Idaho Commission order ($6.50 / MWH $2009) Once you have reviewed, let me know if you have any questions. I can be available to discuss at your convenience. Bruce Griswold PacifiCorp C&T 503-813-5218 Offce 503-702-1445 Cell 503-813-6260 Fax This email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else, unless expressly approved by the sender or an authorized addressee, is unauthorized. If you are not the intended recipient, any disclosure, copying, distribution or any action omitted or taken in reliance on it, is prohibited and may be unlawful. If you believe that you have received this email in error, please contact the sender, delete this e-mail and destroy all copies. = = ======== ==== = = = = = = = = = = = = = == ==== = = = ===== = = ======= = == = = = == = = = = = = = = = = = = =-------------- Cedar Creek Wind QF Power Purchase Agreement Termsheet April 5,2010 Seller Cedar Creek Wind ("Cedar Creek") Buyer PacifiCorp ("PPW") Facilty "Facilty" is a new wind far. Cedar Creek Wind LLC is developing two proposed wind projects located 3.2 miles northeast of the Goshen Substation, east of Shelly in Bingham County, Idaho. Each project wil have a net nameplate output of 78.2 MW and wil have a 28.0% net capacity factor, consisting of thirt-four (34) Siemens SWT-2.3-101 turbines and delivering electricity to the PacifiCorp's system at the Point of Interconnection, expected to be on-line January 1,2012. Quantity The expected anual energy production of 213,729 MWh per year associated with the Facilty is equal to the Net Output of the Facilty delivered for all hours at 28.0% net capacity factor. "Net Output" shall be the amount of energy flowing though the Point of Interconnection, less any station use, transformation and losses not provided by the Facilty. PacifiCorp is purchasing all wind-generated Net Output from the Facilty. Term Twenty years. Commercial On-line Date is Januar i, 2012 and Agreement terminates December 3 i, 2031. Qualifying Seller shall warant that the Facilty is and shall for the term of this Agreement continue to Facilty be a qualifying facility ("QF") as that term is defined in the version of section 20 i and 2 1 0 Certification of the Public Utility Regulatory Policies Act of 1978 (PURPA), 16 U.S.C. 796 and 824a-3 in effect on the date of Seller's filing of self-certification of QF status with the Federal Energy Regulatory Commission ("FERC"). Product All of the Facilty's unit contingent energy delivered to PacifiCorp's system at the Point of Interconnection.Seller agrees to deliver energy for all Delivery Hours with a minimum 85% Mechanical Availabilty Guarantee ("MAG"). Any poitive difference between the volume of energy expected at the 85% MAG and the Actual Delivered Energy is "Shortfall Energy". Delivery Hours The hours of delivery shall be from hour 0 i though hour 24 (Pacific Prevailing Time) all days during the Term, with the exception of Maintenance Schedules agreed upon by both paries.On-peak Hours are defined as hour ending 0600 to hour ending 2200 Pacific Prevailing Time Monday through Satuay, excluding NERC holidays.All hours other than On-peak Hours are defined as Off-peak Hours. When a holiday falls on a Saturday or Sunday, the Friday before the holiday (if the holiday falls on a Saturday) or the Monday following the holiday (if the holiday falls on a Sunday) wil be the holiday and wil be Off- peak. Point of Point of Interconnection shall be the Goshen Substation on 345-kV line. Interconnection Interconnection PacifiCorp shall have no obligation to install or maintain any interconnection facilties on Requirements Seller's side of the Point of Interconnection.PacifiCorp shall not pay any costs arising Confidential PacifiCorp proposal to Cedar Creek Wind Cedar Creek Wind QF Power Purchase Agreement Termsheet April 5,2010 from Seller interconnecting its Facility at the Point of Interconnection. Network Seller shall cause PacifiCorp to receive writtn acceptance from PacifiCorp'stransmission Resource fuction that the transaction wil be accepted, without contingencies, as firm network Designation resource pursuant to PacifiCorp's FERC pro-forma network transmission ageement. Delivery Rate Seller shall sell and deliver and PacifiCorp shall purchase and receive all Net Output at the Point of Interconnection during all Delivery Hours.Table 1 contains Seller's estimated monthly energy deliveries.Seller shall not sell any Net Output from the Facilty to any third pary during the Term. Table 1 - Estimated Energy Deliveries in MWh Month Estimated Energy Deliveries, MWh Januar 16,998 Februar 16,934 March 19,374 April 16,829 Mav 16,581 June 17,026 July 16,293 August 18,138 September 17,323 October 18,219 November 20,027 December 19,986 Delivered Delivered Output (MW /h) shall be the measured energy at the Generation Meter but not to Output exceed Nameplate Capacity Rating. Operation,Seller shall operate and maintain the Facilty in a safe maner in accordance with thisControl and Curtailment Agreement, the Interconnection Agreement, Prudent Electrical Practices and in acordance with the requirements of all applicable federal, state and loca laws and the National Electrc Safety Code as such laws and code may be amended from time to time. PacifiCorp shall not be obligated to purhas, receive, pay for, or pay any damages associated with, Net Output (or associated Production Tax Credits or Environmental Attbutes) if such Net Output (or associated Production Tax Credits or Environmental Attributes) is not delivered to the System or Point of Delivery due to any of the following: (a) the interconnection between the Facilty and the System is disconnected, suspended or interrpted, in whole or in par, consistent with the ters of the Generation Interconnection Agreement, (b) the Transmission Provider directs a general curlment, reduction, or -redispatch of generation in the area (which would include the Net Output) for any reason, even if such curilment or redispatch directive is cared out by PacifiCofP, which may Confidential PacifiCorp proposal to Cear Creek Wind Cedar Creek Wind QF Power Purchase Agreement Termsheet April 5, 2010 fulfill such directive by acting in its sole discretion; or if PacifiCorp curils or otheiwse reduces the Net Output in order to meet its obligations to the Trasmission Provider to schedule within system limits, (c) the Facilty's Output is not received because the Facilty is not fully integrated or synchronized with the System, or (d) an event of Force Majeure prevents either Party from delivering or receiving Net Output. Seller shall promptly provide PacifiCorp with access to such informaton and data as PacifiCorp may reasonably require to confirm to its reaonable satisfaction the amount of energy that was not generated or delivered because of a curtailment. Net Monthly Delivery Hours Net Monthly Delivery Hours (Hrs) are defined, for a given contract month, as all the Delivery Hours in the month less any Delivery Hours that occur during agreed upon Maintenance Schedules. Mechanical Availabilty "Mechanical Availabilty" means, for any Biling Period, the ratio, expressed as a percentage, of (x) the aggregate sum of the turbine-minutes in which each of the Wind Turbines at the Facility was available to generate at the Maximum Facilty Delivery Rate during the Biling Period over (y) the product of the number of Wind Turbines that comprise the Facilty Capacity Rating as of Commercial Operation multiplied by the number of minutes in such Biling Period. A Wind Turbine shall be deemed not available to operate during minutes in which it is (a) in an emergency, stop, service mode or pause state; (b) in "ru" sttus and faulted; or (c) otheiwse not operational or capable of delivering at the Maximum Facilty Delivery Rate to the Point of Interconnection; unless if unavaiiabIe due solely to (i) a default by PacifiCorp; (ii) a curilment to the extent not caused by Seller's actions; or (iii) insuffcient wind (including the normal amount of time required by the generating equipment to resume operations following a period when wind speed is below the Cut-In Wind Speed). Contract Contrael Price Confidential The transaction shall be documented pursuant to a Quaifying Facilty Power Purchase Agreement, and à11 amounts due pursuant thereto shall be netted against all other transactions between PacifiCorp and Seller pursuant to the Power Purchase Agreement. Obligations of PacifiCorp and PacifiCorp's transmission fuction shall be contractually segregated. PacifiCorp agrees pay to the Seller the On-peak Price during On-peak Hours and the Off- peak Price during Off-peak Hours for all delivered energy during the Term, determined by the hourly validation of Generation metering as defined in Metering Requirements. Delivered energy prior to the Commercial On-line Date will be paid the Off-Pea Hour Contract Price. Year 2012 2013 2014 2015 2016 HLH $47.78 $50.91 $55.42 $59.22 $66.07 LLH $22.74 $25.26 $26.56 $27.06 $33.69 PacifiCorp proposal to Cedar Creek Wind Cedar Creek Wind QF Power Purchase Agreement Termsheet April 5, 2010 2017 $69.61 $36.84 2018 $72.18 $35.79 2019 $72.31 $36.35 2020 $73.50 $36.83 2021 $79.11 $42.40 2022 $84.91 $46.06 2023 $80.81 $45.01 2024 $79.24 $45.01 2025 $82.88 $51.40 2026 $84.58 $55.20 2027 $83.42 $57.27 2028 $85.61 $59.91 2029 $88.29 $66.39 2030 $90.79 $70.39 2031 $92.80 $74.05 Replacement Replacement Price means the price to replace Net Output when Seller incurs Shortfall Price Damages or when Seller defaults.Replacement Price shall be the Mid-Columbia market price plus the cost of firm transmission, if required, from the trading hub associated with the index price to the Point of Interconnection. Curtailment Delay Damages In the event the Commercial Operation Date occurs one (1) or more days after Scheduled Commercial Operation Date, Seller shall pay PacifiCorp Delay Damages, equal to the positive difference,if any, obtaned by subtracting the Contract Price from the Replacement Price, plus PacifiCorp's administrative expenses, for any Shortall Energy until the Commercial Operation Date is achieved. Shortfall In the event the Seller fails to achieve a MAG of 85%, Seller shall pay PacifiCorp Shortfall Damages Damages equal to the positive difference, if any, obtained by subtracting the Contract Price from the Replacement Price, plus PacifiCorp's administrative expenses, for any Shortfall Energy. Access Rights Seller shall grant to PacifiCorp for the term of this Agreement all necessar access to instal,operate,maintain,replace,and remove PacifiCorp's metering equipment, interconnection facilties, and other equipment necessar or useful to this Agreement, including adequate and continuing access rights on property of Seller. Seller shall warant that it has procured suffcient access rights from third paies so as to provide PacifiCorp with the access described above.All documents granting such access rights shall be subject to PacifiCorp's approval and in recordable form. Confidential PacifiCorp proposal to Cedar Creek Wind Credit Cedar Creek Wind QF Power Purchase Agreement Termsheet April 5, 2010 Subject to adequate credit provisions as allowed by the Idaho Public Utilty Commission and approved by PacifiCorp Credit Deparment. PacifCorp shall have, to the maximum extent permitted under applicable law, the right to set off any amounts it owes Seller under this transaction against any amounts owed by Seller to PacifiCorp. Seller shall provide a Motive Force Plan demonstrating the availabilty of its wind for the term of this Agreement. Seller shall provide evidence of insurance conforming to the requirements of PacifiCorp's QF Power Puchase Agreement. Subject to the approval by both Paries senior management. Motive Force Plan Insurance Approval This Confdential Non-Binding Summary of Principal Commercial Terms ("Term Sheet") is preliminar and is intended to set forth certain basic terms and to serve as a basis for discussion and negotiation between the Parties with respect to the potential transaction described herein (the "Transaction"). This Term Sheet does not contain all matters upon which agreement must be reached in order for the Transaction to be completed The matters set forth in this Term Sheet are not intended to and do not constitute a binding agreement of the parties or establish any obligation of the Parties with respect to the Transaction, and the Term Sheet may not be relied upon by a Party as the basis for a contract by estoppel or otherwise. A binding agreement will arise only upon the negotiation, execution and delivery of mutually satisfactory definitve agreements and the satisfaction of the conditions set forth therein, including completion of due dilgence and the approval of such agreements and the Transaction by the respective governing body(ies) and management of each Party, which approval shall be in the sole subjective discretion of the respective governing body(ies) and management. Confidential PacifiCorp proposal to Cedar Creek Wind . .. . Ho u r Ja n Fe b Ma r AD r Ma y Ju n Ju l Au S ! Se D Oc t No v De c (M P T ) MW I h MW I h MW I h MW I h MW I h MW I h MW I h MW I h MW I h MW I h MW I h MW I h 0 73 8 80 3 . _ . 7 9 2 76 0 69 8 37 4 77 5 69 4 83 0 1, 1 2 0 82 8 90 4 I 83 2 79 1 75 5 89 1 63 6 42 6 68 7 67 9 78 2 1, 0 0 4 84 7 89 7 2 87 8 80 2 70 9 80 7 65 8 47 7 64 7 72 6 82 8 1, 0 3 3 88 9 88 4 ... 3 85 3 82 1 71 4 82 1 65 3 54 0 61 8 70 9 80 1 1, 0 1 8 90 7 88 2 4 8~ 9 . _ ~. 8 4 82 1 79 2 73 9 61 5 53 1 68 7 82 7 99 6 89 8 96 7 -- 5 80 5 77 5 89 2 75 7 72 7 63 6 52 8 64 80 0 80 9 91 0 9~ L ~ -~ " - 6 76 1 74 0 80 0 78 5 72 7 63 1 56 6 66 8 80 1 86 0 96 0 .. . . ~ ,- _ . _" , , ' k _ _ . . 7 77 2 70 1 74 0 79 8 54 6 44 5 39 5 62 7 87 0 75 7 96 6 92 0 8 85 3 76 8 80 9 70 3 38 3 47 7 28 6 47 5 75 8 83 6 95 4 88 2 --~ . " 9 92 2 1- . 7 4 8 . 1- 8 4 1 68 3 34 8 42 3 21 3 37 6 57 8 64 4 86 8 81 2 10 73 9 70 4 84 8 63 5 38 5 49 2 25 3 40 7 36 6 48 0 76 5 76 9 -_ . ~ II 62 1 63 6 80 7 64 5 52 2 58 1 28 4 59 9 49 5 43 7 74 4 79 1 12 65 3 ~. . 5 8 . . . . 74 6 61 7 64 9 86 5 53 4 71 0 54 3 43 9 74 4 80 4 13 73 4 52 8 79 2 71 9 71 2 1, 0 4 0 73 3 79 4 69 4 43 5 73 0 76 5 . 14 62 6 53 1 87 0 71 0 78 8 1, 0 7 1 78 7 95 3 80 3 42 7 72 1 75 5 -,. ' . _ - ... 15 61 2 54 9 86 2 64 3 84 5 1, 1 0 2 87 8 93 7 84 9 50 0 70 3 73 2 "_ . - 16 64 1 55 1 85 0 56 6 79 7 1, 0 3 6 1, 0 5 8 94 6 82 6 60 7 74 3 73 0 17 50 1 70 6 87 0 53 9 75 0 1, 0 1 8 I, I O § _ 1, 0 8 6 67 9 52 1 84 9 72 0 18 51 9 70 5 86 9 55 5 81 7 1, 0 5 3 1, 1 . 2 7 . . . 1, 1 0 5 64 8 62 6 81 8 72 2 19 53 9 67 7 86 8 67 6 92 0 1, 0 5 2 1, 0 1 5 91 3 65 7 83 2 81 0 79 6 20 65 9 72 7 73 8 69 5 90 5 94 2 89 3 80 3 66 3 84 9 75 3 75 8 21 68 6 81 1 72 8 71 9 77 2 73 1 81 9 85 5 70 6 88 5 81 9 82 5 .. 22 60 4 77 2 80 6 68 8 85 5 56 3 80 8 90 5 69 4 1, 0 2 4 90 6 88 0 23 64 0 74 5 84 6 62 5 74 9 43 3 75 3 83 8 82 4 1, 0 8 0 89 7 87 4 . 21 3 , 7 2 9 l TO T A L 16 , 9 9 8 16 , 9 3 4 19 , 3 7 4 16 , 8 2 9 16 , 5 8 1 17 , 0 2 6 16 , 2 9 3 18 , 1 3 8 17 , 3 2 3 18 , 2 1 9 20 , 0 2 7 19 , 9 8 6 Ce d a r C r e e k W i n d QF P o w e r P u r c h a s e A g r e e m e n t T e r m s h e e t AD n 1 5 . 2 0 1 0 Co n f i d e n t i a l Pa c i f i C o r p p r o p o s a l t o C e d a r C r e e k W i n d BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-II-0l Case No. PAC-E-II-02 Case No. P AC-E-II-03 Case No. P AC-E-II-04 Case No. P AC-E-II-05 ATTACHMENT 5 TO AFFIDAVIT OF DANA ZENTZ ~ENGY ~~MIT~OWER ~ote Hill Wind, LLC May 12,2010 VL EMAIL: brye.gnswoldi(paificom.com Bruce Griswold PacifCorp, Inc. 825 N.E. Multnomah, Suite 600 Portland OR 97232 RE: Coyote Hil Wind, LLC Dear Bruce: Coyote Hil Wind, LLC (CHW), an affliate of Cedar Creek Wind, LLC (Cedar Crek), would like to enter into an Idaho PUC compliant Qualifying Facility (QF) Power Purchase Agreement (PPA) with PacifiCorp. We are hereby requesting that PacifiCorp consider this as a formal request for an offer to purchase power from CHW by PacifiCorp pursuant to a smal1 PURPA resource agreement that is compliant with Idaho state regulatory requirements and PacifiCorp's approved PURPA rates in Idaho for non-fueled (renewable) resources of size 10 aMW or less. As we discussed in general at our meeting of March 24, 2010, CHW is one of the . five wind projects being developed by Cedar Creek Wind, LLC, in the Goshen area near Idaho Falls, Idaho. Each of the five projects is separated by a mile or more from each other, and each wil be fiing a similar request with you. In July, 2009, Cedar Creek received from PacifiCorp a System Impact Study Report (SIS) for the aggregated interconnection of the five Cedar Creek QF generation projects, including CHW. Cedar Creek and the five affiliated QF projects, including CHW, wil be entering into a transmission and interconnection participation agreement which wil include a proportional assignment of the SIS, the resultant LGIA, and its benefits from Cedar Creek to CHW. You have advised me that PacifiCorp Merchant services (the buyer of the PURP A resource output) will require that PacifiCorp Transmission services grant a "Network Resource" (NR) designation to this CHW generator as part of the PURPA resource contracting process. As we discussed earlier this week, PacifiCorp Transmission has increased capacity to accept transmission load from the Goshen Substation due to the addition of the Three Mile Knoll Substation to the PacifiCorp system. As such, a NR designation for CHW by PacifiCorp Transmission may be possible without the need for any system upgrades. Additionally, as we discussed earlier this week, please be aware that Cedar Creek Wind has executed a firm PTP TSR (AREF#599599) with PacifiCorp Transmission. This PTP path extends from Goshen (POI) to Mona (PACE). Our understanding is that with the project LOlA and the foregoing PTP services, a NR designation by PacifiCorp Transmission should be possible. Cedar Creek would like to preserve this PTP for additional development. Please be advised and please also advise PacifiCorp Transmission Services i that if a NR designation for CHW cannot be achieved without the withdrawal of this PTP, then Cedar Crek wil withdraw and terminate its request for PTP service to Mona (AREF #599599) if such path is required to achieve the NR designation for CHW or other affliated PURPA projects being developed by Cedar Creek. You have also advised me that PacifiCorp generally follows the procedures outlined in Uta PSCU Schedule No. 38(1)(8)(2) for contracting QF power purchases; even though such schedule is not applicable to Idaho QF purchases by PacifiCorp. In that regard, Attachment 1 hereto is that (8)(2) checklist. It is my belief that CHW is now in full compliance with that checklist. At your earliest convenience could you please modify your standard Idaho PURPA contract template to be CHW project specific, using the information contained on the Attchment and the new avoided cost rates, as recently established by the Idaho Public Utilities Commission. As we have advised you, time is of the essence in moving forward with contracts for the CHW project; due to the Stimulus Act incentives requiring a certin level of construction activity in 2010. In order to commence construction, we need a completed contract with PAC as soon as possible. lor a member or our team wil be in contact with you soon to discuss next steps related to finalizing a small PURPA resource contract for CHW. We hope we have demonstrated our good faith in meeting with you and advising you of the issues we are facing in order to bring on line this wind project and the collective group of Cedar Creek Wind projects. In return for the time we have spent over the course of the last four months in attempting to work through some complex structural and transmission issues with you, we now feel compelled to ask for your expedited response to our request for a "first" contract draft for the CHW project. Thank you for your attention to the matters requested above. Sincerely,~CK Dana C. Zentz, P .E. Vice President Cedar Creek Wind, LLC Summit Power Group, Inc. i Cedar Creek Wind has prior executed a waiver of confidentiality relating to discussion of transmission details between PAC Merchant and PAC Transmission services for this PTP TSR and the associated PURP A projects being developed by Cedar Creek. Coyote Hil Wind. LLC Page 2 Attachment 1 General Project information required by PacifiCorp for Qualifying Facilties in Idaho Project Name:Coyote Hil Wind, LLC a. Generation Technology - Wind Turbines - Siemens 2300 kW -60 Hz b. Design Capacity - 11 Turbines - Nameplate Capacity: 25,300 kW Net Power Capacity - 31 % Net Capacity Factor (Annual - Site) - 68,704 MWHRs/year (Annual- Site) -7.84 aMW (Annual- Site) - Less than 10 aMW Station Service Requirements - Wil request electrical service from PacifiCorp - -: 500 kW c. Monthly Power Deliverables Month MWHRs aMW Total Jan 6807 9.11 Feb 5217 7.73 Mar 6658 8.90 Apr 7224 9.98 May 4940 6.61 Jun 5438 7.51 Jul 4053 5.42 Aug 5463 7.30 Sept 4541 6.27 Oct 5637 7.54 Nov 6618 9.14 Dec 6107 8.17 Coyote Hil Wind, LLC Page 3 Dispatch Capabilty - Wind QF, generally non-dispatchable as Subject to intermittency of wind resource - Partial dispatchabilty available through system redispateh and generation curtilment d. Proposed Site Location - Goshen, Idaho - 430 19' Latitude, 112002' Longitude Electrical Interconnection Point . PacifiCorp Goshen Substation - 345 kV .Project has received firm PTP pursuant to AREF#599599 with PacifCorp -If a NR designation for CHW cannot be achieved without the withdrawal of the PTP mentioned above, the PTP wil be withdrawn in favor ofNR designation. -Project LGIA at Goshen is under final negotiation between QF Owner and Pac Transmission services. e. Proposed On-Line Date - On or before October 1,2012 Outstanding Permitting Requirements - Bingham County, Idaho - Building Permits - FAA Permits f. Demonstration of Abilty of Obtain QF Status - QF has consulted FERC and is in the process of submitting QF Self Certification - Project meets all PURP A - QF Requirements g. Fuel Types and Sources - Renewable, wind is source of generation h. Plans for Fuel and Transportation Agreements - N/A; no transportble fuel- i. Proposed Contract Term - 20 years, non-Ievelized Pricing Provisions - Idaho Public Utilties Commission - Surrogate Avoided Resource Rates - Contract Year: 2012 j. Status of Interconnection Agreements - QF wil interconnect with PacifiCorp - Developer has fractional interest in Large Generation Interconnection Request and System Impact Study Report of Project No. Q0255, dated July 22, 2009. - See above at "Electrical Interconnection Point" for further pertinent detaiL. Coyote Hil Wind. LLC Page'" BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RM AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-I1-01 Case No. PAC-E-II-02 Case No. PAC-E-II-03 Case No. PAC-E-II-04 Case No. PAC-E-II-05 ATTACHMENT 6 TO AFFIDAVIT OF DANA ZENTZ ,Cedar Creek Small PURP A Documents for PacifiCorp Page i of2 From: Sent: To: Cc: Griswold, Bruce lMkt Function) (Bruce.Griswold~PacifiCorp.comi Friday, May 21, 2010 3:45 PM Dana Zentz Tom Cameron; Ronald Willams; Scott Montgomery; Steve Montgomery - private e-mail; Younie, John; Ken Kaufmann Subject: RE: Cedar Creek Small PURPA Documents for PacifiCorp Attachments: Steep Ridge Wind PPA requirements.doc; Coyote Hill Wind PPA requirements.doc; Five Pine Wind PPA requirements. doc; North Point Wind PPA requirements. doc; Rattlesnake Canyon Wind PPA requirements. doc Dan We have reviewed the five PURPA contrct reuest and atthed ar our review wìth comments and additiona information request. Ovl th iIion it sucient to.be ...of ea PM, however there ar a couple. of items to note: 1. We would like a generation production for each project. not th jus relicating th sae one for each project. I am assuming you wat the most accurte profile and outpt to be reflective of performance at the site under the MAG performance criteria. 2. We wìll nee to ensur we documnt the interconnction, point of delivery, meteng points for each project correctly in order to captu line loss frm meteri point to the POD. W,i have our attornys working on a di PPAfor on project. I expc ¡t wo '-rey for cÎlulation late next week afr inte reew here. I would propose we review and redlie on one PP A. Once we have agreed language, we would populate for the other PPAs an do a fin review. Bruce Griswold PacifiCorp C&T 503-8 i 3-52 i 8 Offce 503-702-1445 Cell 503-813-6260 Fax From: Dana Zentz (mailto:dzentz(gsummitpwer.com) sent: Friday, May 14, 2010 1:14 PM To: Griswold, Bruce iMkt Function) Cc: Tom cameron; Ronald Williams; Scott Montgomery; Stee Montgomery - private e-mail Subjec: cear Crek Small PURPA Documents for PacifCorp Hi Bruce, Attached please find applications and certifications relating to 5 small PURPA wind projects which are under development by Cedar Creek Wind, LLC. these five projects represent a reconfiguration of the Cedar Creek Small PURP A Documents for PacifiCorp ~ Page 2 of2 wind turbines on what was previously known as the Cedar Creek Wind project. We now have this site broken into 5 unique small PURPA projects and wish to immediately begin discussions with PacifiCorp regarding a power purchase agreement for each. I wil look forward to speaking with you next week about this. Best Dana Zentz, Vice President Summit Power Group, Inc. Cedar Creek Wind, LLC 2006 E. Westminster Spokane, WA 99223 www.summitpower.com 509-448-7589 1/11/2011 BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-ll-OI Case No. PAC-E-II-02 Case No. PAC-E-II-03 Case No. P AC-E-II-04 Case No. P AC-E-II-05 ATTACHMENT 7 TO AFFIDAVIT OF DANA ZENTZ Meeting - Cedar Creek Page 1 of 1 From: Griswold, Bruce (Mkt Function) (Bruce.Griswold~PacifiCorp.comi Sent: Thursday i Ser SO, 510 1t:'l2" To: Dana Zentz Cc: Ronald Williams; Scott Montgomery; Wade Riser; Tom Cameron; 'Ken Kaufmann' Subject: RE: Meeting - Cedar Creek Dana My schedule looks best for Tuesy / Wednesday 10/12-13. l..... ....ruøf th pr do_ aa diy lo øoplete. I should be sending you a matrx by project of anything missing. I would also like to schede a short oa lat ne wek to do afireview on inteontiiiam trsmission capaity to ensur everhi is lin uptl soth as we finalize th PPAs, merchant can request network resoure designation tor the projects. J will arge a call-in number including our merchat transmission prourent person as well as Pac Tras. Your waiver will cover the calL. Bruce Griswold PacifiCorp C&T 503-813-5218 Office 503-702-1445 Cell 503-8) 3-6260 Fax From: Dana Zentz (mailto:dzentz(Qsummitpower.com) sent: Wednesay, september 29, 2010 8: 10 PM To: Griswold, Bruce tMkt Function~ Cc: Ronald Wiliams; SCott Montgomery; Wade Riser; Tom cameron Subjec: Meeting - cer Creek Hi Bruce....could you please nominate times in the next two weeks when we might get together and begin the discussion of the PPA terms? I'm out of pocket on Monday & Tuesday next week, but otherwise can try to make a meeting if you are available...please advise. Either Salt Lake or Portland location is fine with our side. BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-ll-OI Case No. P AC-E-II-02 Case No. PAC-E-II-03 Case No. P AC-E-II-04 Case No. PAC-E-II-05 ATTACHMENT 8 TO AFFIDAVIT OF DANA ZENTZ From: Dana Zentz (moiltidzntz.col sent: Tuesay, November 30,201012:25 AM To: Ken Kaufmann Cc: Griswold, Bruce -(Mkt Funcion); SCott Montgomery; Heather Redman; Robert Gavahan; Tom cameron; Jeff Brown Subjec: Re: Confirming logistics Hi Ken....the draft agreement is attached, with our final comments. We have nothing further, other than what is annotated herein. From: Ken Kaufmann (;kaufmann(llKlaw.com;) Date: Mon, 29 Nov 2010 14:42:59 -0800 To: Dana Zentz (;dzentz(lsummitpower.com;) Cc: Bruce Griswold 4Jruce.griswold(lpaclficorp.com;), Scott Montgomery (;Scott(§westernenergy.us::, Heather Redman (;hredman(§summrtow.com~, Bob Gavahan (;rgavahan(§summitpower.com;), Tom Cameron (;tcameron(§summitpQwer.com;), Jeff Brown (;ibrown(§summltMwer.cQm:: Subject: Re: Confirming logistics Hello Dana, Attached please find a proposed final redline for Coyote Hill. Will you please review my redlines and return a draft with all agreed-to redlines accepted, and any new changes shown in redline? In particular, will you please confirm that my calculation of average kW, in Section 4.3.1, is correct. Will you please confirm that the data in the exhibits are correct? I will substitute full size copies of the data tables in the Exhibits of the executed PPA. When we agree that the Coyote HIll PPA is final, we will commence preparing the other four PPAs using Coyote Hill as a template. Your schedule of turning by the end of today would work well from our perspective. Sincerely, Ken BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICA nON ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-II-Ol Case No. P AC-E-II-02 Case No. PAC-E-II-03 Case No. P AC-E-II-04 Case No. PAC-E-II-05 ATTACHMENT 9 TO AFFIDAVIT OF DANA ZENTZ From: Dana Zentz c:dzenti(!summitDOwer.com:: Date: Fri, 3 Ðec2010 14:46:14 -0800 To: Bruce Griswold c:bruce.griswoig(!pacificorp,com::, Scott Montgomery c:scott(!westerneneri.us:: Cc: Ken Kaufmann c:lsufmanntllkLaw.com::, Carl Barton c:tbartpntlhollantJhart.com:: Subject: Re: Checking in - Cedar Creek PPA execution Thank you Bruce... We are very keen to keep our PPA execution on the schedule we have discussed and agreed with you prior.....which would get the PPA's executed before the end of next week. I take it from your message below that you stil see this as possible and likely. wil look forward to speaking with you Monday...or even late today if possible? We are prepared to come to Portland next week so that Scott Montgomery can execute the agreements in person on behalf of Cedar Creek and we can avoid any delay due to execution in "counterparts". Please let me know ifthat is workable and we wil make Scott's travel plans for the appropriate day. Best, Dana Zentz, Viæ President Summit Power Group, Inc. 2006 E. Westminster Spokane, WA 99223 ww.summitpower.com 509-448-7589 From: Bruce Griswold -=bruce.griswpld(§pacificorp,com;: Date: Fri, 3 Dec 2010 13:48:09 -0800 To: Dana Zentz -=dzentz(§summitpower.com;:, Scott Montgomery -=scottllwesternenerBY.uP Cc: Ken Kaufman -:kaufmann(gLKLaw.com;: Subject: RE: Checking in DanaI Scott Our approval proess has slowed a bit speific to Coyote Hil. Our creit folks ar going to process all five PPAs for creit approval Monday versus doing them one at a time. That will push the execution back a couple of days on Coyote Hil but accelerate the others so we should be now moving towad execution of all 5 PPAs within the sae timefre. I will call you Monday on status as well as discussing how to make the trfer on the PTP trission. Bruce Griswold PacifiCorp C&T 503-813-5218 Offce 503-702-1445 Cell 503-813-6260 Fax BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RMP AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-II-OI Case No. PAC-E-II-02 Case No. PAC-E-II-03 Case No. PAC-E-II-04 Case No. PAC-E-Il'-05 ATTACHMENT 10 TO AFFIDAVIT OF DANA ZENTZ Re: Follow up to my voice mail earlier today Page 1 of2 From: Dana Zentz (dzentz(nummitpower.com) Sent: Tuesday, ~O", 20109:46 AM To: Bruce Griswold; Ken Kaufmann Cc: Scott Montgomery; Carl Barton Subject: Re: Follow up to my voice mail earlier today Thank you Bruce. I'LL try to call you later today. From: Bruce Griswold oebruce.griswold(!pacificorp.com~ Date: Tue, 7 Dec 2010 08:40:37 -0800 To: Dana Zentz oedzentz'!summltpower.com:i, Ken Kaufmann oekauannfPLKLaw.com:i Cc: Scott Montgomery oescott('westernenergy.us~, Carl Barton oecbartond!hollandhart.com;: Subject: RE: Follow up to my voice mail earlier today Dana, sorr I missed your call yesterday. I can talk after 330PM Pacfic time. Wlfaret*hlñlftgh apprva. Credit should have theirs finalized for aU projecs tomorrow. we.ex to nave aUPPAs\an dø rifeyo'" l''_eh of volues, etc. by Wednes1Jay. We wil send out for review as they are finalized. Bruce Griswold PacifiCorp C&T 503-813-5218 Office 503-702-1445 Cell 503-813-6260 Fax From: Dana Zentz fmallt:cIsummU;,col Sent: Monday, December 06, 2010 7:00 PM To: Griswold, Bruce iMkt Function); Ken Kaufmann Cc: SCtt Montgomery; Carl Barton Subject: Follow up to my voice mail earlier today Hi Bruce, Wanted to follow up to my voice mail to you earlier today. Would like to discuss, as we had planned late last week, the logistics of finalizing the PPA's for the Cedar Creek PURPA projects.... .and also the REC ownership letter draft that we provided you last week. Re: Follow up to my voice mail earlier today .I Do you have a time available on Tuesday afternoon (later is better) for such a call? Please let me know. Dana Zentz, Vice President Summit Power Group, Inc. 2006 E. Westminster Spokane, WA 99223 www.summitpower.com 509-448-7589 1/11/2011 Page 2 of2 BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICATION ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RM AND ) CEDAR CREEK WIN LLC ) ) ) ) Case No. PAC-E-II-OI Case No. P AC-E-II-02 Case No. P AC-E-II-03 Case No. PAC-E-II-04 Case No. PAC-E-II-05 ATTACHMENT 11 TO AFFIDAVIT OF DANA ZENTZ From: Griswold, Bruæ (Mkt Function) sent: 'TiDebe 09 2010 4:35 PM To: 'Dana Zentz'; 'Scott Montgomery'; 'carl Barton' Subjec: RE: cear Creek PPAs 2nd email Secnd of two emails. Bruce Griswold PacifiCorp C& T 503-813-5218 Office 503-702-1445 Cell 503-813-6260 Fax From: Griswold, Bruæ (Mkt Function) sent: Thursday, Dember 09, 2010 4:30 PM To: 'Dana Zentz'; SCtt Montgomery; 'Carl Barton' SUbjec: FW: cear Crek PPAs First of two emeils. Please find the attched finals on each PPA. Note that we have no incud Exhibi a- L. Bruce Griswold PacifiCorp C& T 503-813-5218 Office 503-702-1445 Cell 503-813-6260 Fax BEFORE THE IDAHO PUBLIC UTILITES COMMISSION IN THE MATTER OF THE APPLICA nON ) OF ROCKY MOUNTAIN POWER FOR ) APPROVAL OF POWER PURCHASE ) AGREEMENTS BETWEEN RM AND ) CEDAR CREEK WIND LLC ) ) ) ) Case No. PAC-E-II-OI Case No. PAC-E-II-02 Case No. P AC-E-II-03 Case No. P AC-E-II-04 Case No. PAC-E-II-05 ATTACHMENT 12 TO AFFIDAVIT OF DANA ZENTZ From: Griswold, Bruce tMkt Functon) (mailto:Bruce.Griswold~PacifiCorp.com) Sent: Tuesay, December 21, 2010 5:02 PM To: Dana Zentz; Scott Montgomery Cc: tarl Barton; Kelly Fennert Goodman; Ken Kaufmann; Ron Williams; Jeff Brown; carol Loughlin Subjec: RE: cear Creek PPAs - Execute Would Kelley be available to come by and sign? that would save a few days of trasport. J am in remainder of week. We will send the PDF of my signtur pages tody. We ar using the reital pae with a Deembe 22, 2010 date whe we we able to execute but the fiing to the Idao PUC will establish your LEO date as 12/13/201 0 pnor to the 12114/2010 deadline. Bruce Griswold PacifiCorp C&T 503-8 i 3-52 1 8 Offce 503-702-1445 Cell 503-813-6260 Fax Fro: Dana Zentz (mailto:dzentz(§summitpoer.com) Sent: Tuesay, Deember 21, 20103:14 PM To: Griswold, Bruce tMkt Function); Scott Montgomery Cc: carl Barton; Kelly Fennert Goodma; Ken Kaufmnn; Ronald Willams; Jef Brown; carol Loughlin Subjec: Re: Cedar Creek PPAs - Executed Thanks Bruce...good news! Please send the original signature pages to: Kelly Goodman, VP, General Counsel Summit Power Group, Inc. 2026 NE Mason St. Portland, OR 97211 I would appreciate an electronic copy of the PDF's signature pages as well. Best, Dana C. Zentz, P.E. Vice President Summit Power Group 509-448-7589 509954-4103 mobile From: Bruce Griswold o(bruc.lrlswldtlDaçicorp.com~ Date: Tue, 21 Dec 2010 13:29:56 -OSOO To: Dana Zentz o(dzentztlsummitwer.com~, Scott Montgomery o(sÇott(lwestemeners.us;) Cc: Carl Barton -:cbartontlhollandhart.com;), Kelly Goodman o(kgman(lsummitwer.com;), Ken Kaufmann o(kaufmann(lLKLa.com;) Subject: Cedar Creek PPAs I have received executive approval for execution of the PPAs. I wil be signing today and provide a PDF of the signature page. I would like to provide two originals for signature so that we each have one signed originaL. Where should I send the originals? Bruce Griswold PacifiCorp C&T 503-813-52 i 8 Offce 503-702-1445 Cell 503-813-6260 Fax