20211108Veile Direct-Redacted.pdf

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TION OF ROCKY MOUNTAIN
POWER FOR AUTIIORITY TO IN.
CREASE ITS RATES AI\[D CHARGES
IN IDAHO AI\[D APPROVAL OF PRO-
POSED ELECTRIC SERYICE SCI{ED.
ULES AIYD REGULATIONS
CASE NO. PAC.E-21.07
TESTIMONY OF MIKE
VEILE
Direct Testimony of
MIKE VEILE
On Behalf of
P4 Production, L.L.C. an affiliate of Bayer Corporation
November 8,2021
Testimony of Mike Veile - Page 1
Table of Contents to the
Direct Testimony of Mike Veile
Page
I. INTRODUCTION 3
SUPPORT OF SETTLEMENT STIPULATION AND APPROVAL ..............4
OF TI{E NEW ELECTRIC SERVICE AGREEMENT BETWEEN
ROCKY MOI.'NTAIN POWER AND P4 PRODUCTION, L.L.C.
PROPOSED NEW aOZZELECTRIC SERVICE AGREEMENT .5
HISTORY AND OPERATIONS OF SODA SPRINGS PLANT ll
HISTORY OF MONSANTO'S ELECTRICAL CONTRACTS l3
II.
m.
ry.
V.
EXHIBIT 3OI - ELECTRIC SERVICE AGREEMENT
Testimony of Mike Veile- Page2
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I. INTRODUCTION
PLEASE STATE YOUR NAME, EMPLOYER AI\TD BUSINESS ADDRESS.
My name is Mike Veile. I am employed by P4 Production, L.L.C. ("P4"), an affil-
iate of Bayer Corporation, at its Soda Springs plant. My business address is P.O.
Box 816, Soda Springs, Idaho 83276.
PLEASE PROYIDE YOUR EDUCATIONAL BACKGROUND, WORK EX.
PERIENCE, AIID CURRENT POSITION AT BAYER.
I graduated from Utah State University with a B.S. in 1992 and an M.S. in 1994 in
Mechanical Engineering. I began working in 1998 as a Mechanical Engineer at the
Soda Springs plant. Monsanto and P4 were acquired in 2018 by Bayer and now
operate as part of the Bayer Corporation group of companies. While the Soda
Spring plant is owned by P4, I refer to P4 and Bayer Corporation collectively as
"Bayer." I have continued to work for Bayer in various capacities. I am currently
the Site Energy Manager for the Soda Springs plant.
WHAT RESPONSIBILITIES DO YOU HAYE AT THE SODA SPRINGS
PLANT?
My responsibilities include the procurement of electricity as well as lean manufac-
turing and production systems and site optimization. Electricity is the single largest
input cost of producing elemental phosphorus. For the past several years I have
been directly involved in negotiations and management decisions pertaining to ex-
isting and future electrical contracts between Bayer and Rocky Mountain Power
(the "Company"). I have also reviewed and am generally familiar with prior
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electricity contracts for the Soda Springs plant along with documents submitted to,
and orders issued by, the Idaho Public Utilities Commission.
WHAT IS TIIE PURPOSE OF YOUR TESTIMONY?
The purposes of my testimony are to: (l) explain Bayer's support for the Commis-
sion to enter an order approving the Settlement Stipulation entered into between the
Company, Staff, and Intervenors filed October25,202l, including approval of the
new Electric Service Agreement ("ESA") between Bayer and the Company at-
tached to the Settlement Stipulation as Attachment2; Q) review the new ESA be-
tween Bayer and the Company and describe the differences between the existing
ESA and new ESA; (3) provide insight into the operational impacts that the curtail-
ment products under the new ESA have on operation of the Soda Springs plant; (4)
provide relevant history and information concerning the operation of the Soda
Springs plant; and (5) review the history of electric service agreements between the
Company and Monsanto.
II. SUPPORT OF SETTEMENT STIPULATION AND APPROVAL OF
TIM NEW ELECTRIC SERYICE AGREEMENT BETWEEN ROCKY
MOUNTAIN POWER AI\D P4 PRODUCTION. L.L.C.
PLEASE EXPLAIN WHY BAYER SUPPORTS THE SETTLEMENT STIP.
ULATION.
As PacifiCorp's largest customer in Idaho, and because electricity is the largest
single cost of producing phosphorus, Bayer takes an active role in all Rocky Moun-
tain Power rate proceedings.
Commencing on September 13, 2021, the parties held several meetings
which culminated in a settlement agreement, the details of which are set forth in
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the Settlement Stipulation submitted to the Commission for approval. The Settle-
ment Stipulation includes an $8 million rate increase and an increase of the Bayer
intemrptible credit from $! million to $! million. All things considered and
recognizing that the settlement is a compromise of disputed claims, Bayer believes
that the terms and conditions of the Settlement Stipulation are fair, just, reasonable,
and in the public interest.
HOW WAS BAYER'S I MILLION CURTAILMENT PRODUCT
VALUE ARRIYED AT AND WHY SHOULD THE COMMISSION AP.
PROVE IT AS PART OF THE SETTLEMENT?
Th" I million value for Bayer's intemrptible products, along with the $8 mil-
lion rate increase, were arrived at as a compromise. The methodology applied by
the Company to value Bayer's intemrptible product resulted a credit of $! mil-
lion, as explained in the testimony of Craig Eller. The methodology applied by
Bayer resulted in a credit between $I million and $! million, as explained in
the testimony of Brian Collins. The settlement value of $! million is based on a
compromise. Bayer supports the settlement as fair, just, and reasonable under the
circumstances.
III. PROPOSED NEW 2022 ELECTRIC SERVICE AGREEMENT
HAS ROCKY MOUNTAIN POWER AI\[D BAYER NEGOTIATED THE
TERMS OF A NEW ESA?
Yes. After a period of extensive negotiations, Bayer and the Company agreed on
terms of a new ESA, excluding the value of Bayer's intemrptible products, to be-
come effective January 1,2022. On September 16, 202l,the Company and Bayer
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filed a Partial Stipulation on Terms of P4's Energy Service Agreement ("Partial
Stipulation") as Supplemental Confidential Exhibit No. 36 to Craig Eller's testi-
mony. A copy of the new ESA is attached to the Partial Stipulation as confidential
Attachment l. The Partial Stipulation allows the Commission to determine the
value of Bayer's interruptible products in the absence of an agreement between the
parties. (Partial Stipulation, p.2,n 4.)
HAS AIt AGREEMENT BEEN REACHED TO ESTABLISH BAYER'S IN.
TERRUPTIBLE CREDIT VALUE?
Yes. Pursuant to the Settlement Stipulation, the Company, Staff, and all Intervenors
settled all pending issues in this proceeding, including a $I million value for
Bayer's curtailment products. Attached as Bayer Exhibit 301 is a copy of the final
ESA as signed by Bayer with the Company's signature page in progress and ex-
pected by the hearing date.
PLEASE SUMMARIZETHB, TERMS OF BAYER'S NEW ESA.
The ESA is for a two'year term commencing January 1,2022, and ending Decem-
ber 31, 2023. Thereafter, the ESA automatically renews for successive one-year
terms until either party gives 180-day notice of termination. The charges for electric
service will be set forth in Schedule 400 for demand and energy, less the curtailment
credit, spread equally over the twelve monthly bills. All parties agree that the terms
and conditions of the new ESA are fair, just, reasonable, and in the public interest.
(Settlement Stipulation, fl 14.)
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Testimony of Mike Veile - Page 6
a PLEASE DESCRIBE THE DIFFERENCES BETWEEN THE CURTAIL-
MENT PRODUCTS UNDER THE EXISTING ESA AI{D THE NEW ESA?
Under the current ESA, the Company has the right to intemrpt Bayer a total of
I ,000 hours annually, consisting of I 2 hours of system integrity intemrption s at 162
MW (all three furnaces), 188 hours of operating reserves intemrptions at 95 MW,
and 800 hours of economic intemrptions at 67 MW. These curtailment scenarios
can be accomplished through any combination of shutting down or reducing load
on the three furnaces.
Significantly, Bayer has had the right to buy-through economic curtailment
at market prices versus the Schedule 400 rate, which it has regularly done to meet
production requirements or safeguard the plant operations. As a result of these eco-
nomic curtailment events, the Company does not have to plan resources to supply
Bayer with buy-through power coming from the market.
Under the new ESA, the system integrity curtailment product has been elim-
inated, the operating reserves curtailment product continues with slight changes,
and the economic curtailment product continues with significant changes.
Operating reserve intemrptions will continue to be directed by the Company
in its sole discretion when it determines that curtailment is needed to meet operating
reserve requirements. The Company may interrupt Bayer a maximum of 188 hours
per calendar year for operating reserves. The Company is required to give Bayer
not less than six minutes notice of curtailment. Historically, when Bayer receives a
curtailment notice it has shut down the fumaces within l-2 minutes. The current
ESA and the new ESA both provide operating reserve curtailment based upon a
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95MW load; however, under the current ESA Bayer can utilize a combination of
furnace nos. 7, 8 and 9,1 which allows Bayer some operational flexibility, whereas
the new ESA requires that furnace nos. 7 and 8 will always be curtailed.
The economic curtailment product has changed considerably under the new
ESA. Previously, Bayer was subject to 800 hours of economic curtailment based
on one-hour intervals-i.e. up to 800 intemrptions annually. Under the new ESA,
Bayer is subject to 1,600 intemrptions annually based on l5-minute intervals. Sig-
nificantly, Bayer no longer has the right to buy-through economic curtailments.
When the marginal price at the Monsanto Price Node exceeds $250 per MWh,
Bayer is automatically intemrpted. Bayer and the Company have developed an op-
erating procedure so that intemrptions will be hard-wired into Bayer's plant opera-
tions. The Company will no longer call economic intemrptions at its discretion.
Economic curtailment shuts down furnace no. 9.
The new ESA identifies each fumace as its own specific curtailment re-
source and no longer calls a MW value for curtailment. This significant change
reduces operational flexibility.
ln addition, the Company can simultaneously curtail fumace nos. 7 and 8
for operating reserves and furnace no. 9 for economic curtailment, resulting in a
complete shut-down of the Soda Springs plant. This creates significant operational
risk for Bayer, as explained below.
HOW DO THE CHANGES TO ECONOMIC CURTAILMENT AFFECT
BAYER'S OPERATIONS?
o
I Monsanto's furnace numbers l-6 were in Columbia, Tennessee, and were shut down in 1986.
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The inability to buy-through economic curtailment is a significant operational risk
since Bayer is required to intemrpt regardless of plant operation conditions at the
time of the intemrptions and regardless of Bayer's need to produce phosphorous.
In addition, the inability to buy-through means that economic curtailment
and operating reserves curtailment may occur simultaneously. Under the current
ESA, the Company cannot call operating reserve curtailment that results in two
furnaces being off while the third furnace is off for economic curtailment. The only
time that all fumaces can be curtailed simultaneously is under the 12 hours of sys-
tem emergency curtailment.
By contrast, under the new ESA the inability to buy-through economic cur-
tailments, combined with the large number of economic curtailment instances and
the potential for simultaneous curtailment of all three fumaces, introduces signifi-
cant operational risk to the plant due to the high temperature operating parameters
for the plant.
An integral feature of the plant is the kiln, which is a very large refractory
lined piece of equipment that calcines phosphate ore prior to it being fed into the
fumaces. The kiln is fueled by carbon monoxide off-gas from the furnaces. If all
three the furnaces are shut down, the kiln becomes inoperable due to the lack of
fuel and triggers a cascade of harmful consequences to the plant. Losing fuel con-
tributes to a "thermal shock" of the kiln by reducing kiln temperature. Thermal
shock may in turn cause kiln refractory failure depending upon the severity and/or
number of instances of shock. Kiln refractory failure causes serious damage, result-
ing in a minimum of 7 days downtime and significant repair costs.
Testimony of Mike Veile - Page 9
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Another adverse consequence of not being able to buy-through economic
curtailments and of being forced to take down specific fumaces is the intemrption
of metal tapping. Fumaces must be operating to complete certain operations. One
of these is known as a metal tap, removing the built-up molten metal within the
furnace. This operation can take 3-4 hours to execute and involves numerous oper-
ators. If Bayer is curtailed in the middle of the operation it must be suspended and
restarted when the furnace in back online in a steady state operation. The current
ESA, which gives Bayer flexibility to curtail MWs versus specific furnaces, has
allowed sufficient flexibility to avoid this scenario in most cases.
Thus, in addition to production loss from curtailment, the new ESA intro-
duces additional risks to the plant. Bayer has accepted this additional risk in order
to provide a curtailment product that has greater value to the Company.
WHY DID BAYER AGREE TO ASSUME TIIESE NEW ECONOMIC CUR.
TAILMENT RISKS?
For two primary reasons. First, the Company expressed a desire for economic cur-
tailment product to function as a capacity resource, which would provide greater
value to the Company given its growth of renewable wind and solar resources that
are not always available . Bayer's buy-through option undermined the ability of eco-
nomic curtailment to provide capacity value. Second, to provide greater value to
Bayer by increasing the value of its curtailment products.
PLEASE EXPLAIN WHY BAYER'S LOAD CURTAILMENT HOURS ARE
UNIQUE?
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Bayer is unlike any other non-firm customer on the PacifiCorp system because of
the magnitude ofthe curtailable load, the number of curtailment hours, and the short
response time. Bayer provides 188 hours of operating reserves which can be taken
in a matter of seconds, The curtailment Bayer's load is quicker than any peaker
resource. Economic intemrptions provide up to 1,600 instances of l5-minute inter-
ruptions that can be taken within 22.5 minutes notice. Bayer's three fumaces can
be curtailed separately as well as collectively in combination. The increased benefit
of these products to the Rocky Mountain Power system is undisputed and warrants
an increased credit for the losses and risks newly incurred by Bayer, though the
value of Bayer's intemrptible credit was a matter of substantial disagreement.
ry. IIISTORY AI\D OPERATIONS OF SODA SPRINGS PLAIYT
PLEASE PROVIDE A BRIEF HISTORY AND OVERYIEW OF THE OP.
ERATION OF BAYER'S SODA SPRINGS PLANT.
The Soda Springs plant began operations in 1952 and has since operated continu-
ously-for nearly 70 years. The plant produces one product: elemental phosphorus.
Elemental phosphorous is identified as "P" in the Periodic Table of Elements.
Bayer's product "P4" is a molecule of 4 phosphorus atoms. Phosphorous is an es-
sential building block for many products. lts primary use is the production of
glyphosate, the active ingredient in Roundup@ herbicide.
DESCRIBE HOW PHOSPHORUS IS MANUFACTURED.
Phosphate ore is mined in the mountains east of Soda Springs and transported by
truck to the plant. The phosphate ore is calcined in a kiln and then combined with
coke, most of which is manufactured at our sister plant in Rock Springs, Wyoming,
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and with quartzite which we mine from a quarry west of the plant. The mixture is
placed into one of three electric furnaces where electrical energy creates the heat to
drive a chemical reaction liberating the phosphorus as a gas. The phosphorus gas is
cleaned, condensed, and then shipped to other locations. The phosphorus manufac-
turing process is capital intensive, with electricity being the single largest variable
cost.
WHERE IS THE PHOSPHORUS SHIPPED AI\D HOW IS IT USED?
Most of the phosphorus produced in Soda Springs is transported to Bayer's Louisi-
ana facility by railcar or to its Brazil facility by railcar and ocean freightliner. There
phosphorous is converted into glyphosate. Small amounts of phosphorus are sold
to other entities for use in a variety of products.
DESCRIBE THE ELECTRICAL SERVICES AT THE SODA SPRINGS
PLAI\IT.
Bayer has a total load of approximately l9l MW. This load consists of 162 MW of
non-firm power which is provided to furnace no. 7 (46 MW), furnace no. 8 (49
MW) and furnace no. 9 (67 MW), approximately 20 MW of auxiliary load, and 9
MW of firm load. The Soda Springs plant utilizes in excess of I KWh of
energy annually and is Rocky Mountain Power's largest single-point customer.
Bayer's load has been relatively stable since furnace no.9 came on-line in 1966.
ARE OTHER ELECTRIC FURNACES USED TO MANUFACTURE PHOS.
PHORUS?
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Not in the United States. Monsanto's first six electric furnaces to manufacture phos-
phorus were built and operated in Columbia, Tennessee. That plant closed in 1986
when its costs were no longer competitive-primarily due to rising electricity costs.
Monsanto constructed furnace nos. 7 and 8 at Soda Springs which began operating
in 1952. Furnace no. 9 became operational in 1966, and is the last and largest elec-
tric furnace phosphorous constructed in North America. At that time there were 3l
electric phosphorous furnaces in operation in North America. Bayer's three fur-
naces are all that remain. Outside of North America there are electric furnaces op-
erating to produce phosphorous in China, Vietnam, and Kazakhstan, which supply
competitors.
V. HISTORY OF ELECTRIC SERVICE CONTRACTS
PLEASE PROVIDE A HISTORY OF TIIE ELECTRIC SERVICE CON.
TRACTS SUPPLYING THE SODA SPRINGS PLAI\[T.
Bayer and its predecessor Monsanto have been a special contract customer of
Rocky Mountain Power and its predecessor, Utah Power & Light Company, since
1951. Electric Service Agreements were entered into in 1951, 1965,1991,1995,
2000,2003,2007,2008,2011,2014 and 2016. Each ESA provided a non-firm load
for the furnaces and a small firm load for auxiliary power. Each contract contained
varying curtailment hours and terms of curtailment. In many of the contracts Mon-
santo had the option of buying through curtailments at replacement energy costs.
The rates and terms of all special contracts were arrived at by agreement negotiated
between the parties and approved by the Commission, with the exception of 2003
and 201 l.
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Each of these contracts provided the Company with the right to curtail the
delivery of electricity for operating reserves, system integrity intemrptions, and for
economic purposes. Each curtailment product provided unique features designed to
provide capacity and energy benefits to the Company and billing credits to Mon-
santo to enable it to remain competitive and in business.
Until 2004, rates were based upon a single flat all-in energy rate for both
firm and intemrptible power. These rates were designed to cover the Company's
variable energy costs and make a reasonable contribution to fixed costs. In 2004
Monsanto began paying demand and energy charges and began receiving a credit
for intemrptible products.
PLEASE EXPLAIN THE LAST CONTESTED RATE CASE AND THE EF.
FECT ON MONSAN[TO'S CONTRACT?
On May 28,2070, Rocky Mountain Power filed Case No. PAC-E-10-07. The val-
ues of Monsanto's economic curtailment, non-spinning operating reserves, and sys-
tem integrity curtailment products were hotly contested. This case was concluded
by Order No. 32196 issued February 28,201l. This was the first time the Commis-
sion settled upon a definitive methodology for valuing Monsanto's intemrptible
products, establishing energy and capacity values for all three products totaling $!
million. This total included $!million for operating reserves with a capacity value
based upon the average of the capacity costs of the Company's Currant Creek gas
turbine and an Aero-derivative gas turbine from the IRP. (Order No. 32196, p. 57 .)
The Commission established a value of $! million for the economic curtailment
product based on market prices. Id. at 57. The value of the system integrity product
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Testimony of Mike Veile - Page 14
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was established at $! miflion . Id. at 57 .ln establishing the value of intemrptible
products, the Commission stated:
Arriving at a specific value for Monsanto credit is at least as much
art as science. The cost of service for firm load customers is an em-
phasized science and establishing the cost of service for an inter-
ruptible load is even more difficult, requiring considerable judg-
ment.Id. at12.
*,f *
The Commission finds that the ability to curtail Monsanto load, one
of Rocky Mountain Power's largest, provides a direct benefit to
Rocky Mountain Power's system as a whole. Similarly, we find that
while Rocky Mountain Power might replace the intemrptible ser-
vices currently purchased from Monsanto using its other existing re-
sources in the short term, the long-term cost of the system would be
higher. Rocky Mountain Power's 2008 IRP recognizes Monsanto
intemrptibility as a firm capacity resource. [f it were not recognized
in such a manner, the Company would have significantly larger ca-
pacity deficits . . . Id. at 56.
The Commission directed "that the parties will execute a five-year contract
... to promote greater price certainty and stability for Monsanto." Id. at 57. Accord-
ingly, Monsanto and Rocky Mountain Power entered into a new ESA for the five-
year period 20ll-2016.
HAS BAYER'S INTERRUPTIBLE PRODUCT CREDIT CHANGED
SINCE THE 2OT1 COMMISSION ORDER?
Yes. As a result of a20ll settlement stipulation in Case No. PAC-E-ll-tz, Mon-
santo's intemrptible credit increased to $! million in 2012 and $! million in
2013. (Order No. 32432, fl 7.) The $! million credit has not changed since then.
HAYE NEW CONTRACTS BEEN ENTERED INTO CONTINUING TIIE
CREDIT AT $20 MILLION?
Yes. Rocky Mountain Power and Monsanto entered into new ESAs effective Janu-
ary l, 2014, followed by the current ESA effective January l, 2016, which
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automatically renewed for successive one-year terms with elecfric sen ice provided
as specified in Schedule No.400. Rocky Mountain Power gave the required 180-
day notice of termination of the current ESA.
DOES TEIS CONCLTIDE YOUR TESTIMONY?
Yes.
Testimony of Mikc Veile-Page 16
Exhibit 301 - Electric Senrice Agreement
ELECTRIC SERVICE AGREEMENT
BETWEEN
ROCKY MOUNTAIN POWER
AIID
P4 PRODUCTION
This Electric Service Agreement ("Agreement") is entered into by and between PacifiCorp,
an Oregon corporation doing business as Rocky Mountain Power ("Rocky Mountain Power"), and
P4 Production, L.L.C., a Delaware limited liability company (o'Customer"). Rocky Mountain
Power and Customer are referred to herein individually as a "Party" and jointly as "Parties."
RECITALS
A. Rocky Mountain Power provides retail electric service to Customer's elemental
phosphorous production facilities located at 1853 Highway 34, Soda Springs, Idaho 83276 (the
"Plant").
B. PacifiCorp and Customer's predecessor in interest, Monsanto Company, entered
into an Electric Service Agreement with respect to the Plant effective January 1,2016, which ex-
pires on December 31,2021.
C. Customer desires to purchase electric service for the Plant under this Agreement
beginning January l, 2022.
D. Rocky Mountain Power has agreed, subject to regulatory approvals, to provide elec-
ffic service to the Plant in accordance with this Agreement.
AGREEMENT
The Parties agree as follows:
Section 1: Definitions
As used in this Agreement, the following terms have the meanings specified:
I .l Average Kilovar Demand means the average of the Daily Kilovar Demands for that
Billing Period.
1.2 Billine Period means the period of approximately thirty (30) days intervening be-
tween regular successive meter reading dates.
1.3 Curtailment Products means the Operating Reserve and Economic Curtailment
products as described and set forth in Exhibit A.
ELECTRIC SERVICE AGREEMENT
1.4 Curtailment Products Credit means the credit to Customer for the Curtailment Prod-
ucts as calculated and set forth in Exhibit A.
1.5 Customer Charge means the "Customer Charge" amount set forth in the then-cur-
rent version of Idaho Electric Service Schedule No. 400 or its successor.
1.6 Customer Electrical Facilities means all facilities and equipment within Customer's
138 kV substation at its Plant except for Rocky Mountain Power's metering equipment, under-
frequency relays, capacitors and any other equipment owned by Rocky Mountain Power and in-
stalled in Customer's substation under the terms and conditions of this Agreement or any other
agreement.
1.7 Daily Kilovar Demand means, as to any day, the kilovar demand measured during
the l5-minute interval corresponding to the l5-minute interval during which Customer's Demand
occurs for the Billing Period which includes that day.
1.8 Demand means Customer's greatest use during the Billing Period in kilowatts av-
eraged over a fifteen (15) minute period of time during which electric energy is delivered by Rocky
Mountain Power to Customer's Point of Delivery.
1.9 Demand Charge means the o'Demand Charge" amount set forth in the then-current
version of Idaho Electric Service Schedule No.400 or its successor.
l.l0 Electric Service Reeulations means Rocky Mountain Power's currently effective
electric service rules and regulations on file with and approved by the Idaho Public Utilities Com-
mission ("Commission"), as they may be amended or superseded from time to time with the ap-
proval of the Commission.
l.ll Energy means the total electric energy, measured in kilowatt-hours, delivered to
Customer during the Billing Period.
l.l2 Enere), Charee means the "Energy Charge" amount set forth in the then-current
version of Idaho Electric Service Schedule No. 400 or its successor.
l.l3 Excess Kilovar means each kilovar of Average Kilovar Demand in excess of
33 kilovars per 100 kW of Demand.
l.14 Excess Kilovar Charge means the "Excess Kilovar Charge" amount set forth in the
then-current version of Idaho Electric Service Schedule No. 400 or its successor.
l.l5 Plant means Customer's elemental phosphorous production facilities located at
1853 Highway 34, Soda Springs, Idaho 83276.
l.l6 Point of Delivery for all electric service delivered to the Plant means the termina-
tion of Rocky Mountain Power's two 138 kV transmission lines at Customer's substation located
approximately one point six (1.6) miles south from Rocky Mountain Power's Threemile Knoll
substation in Caribou County, Idaho, or such other point(s) of metering as Rocky Mountain Power
and Customer shall agree.
aELECTRIC SERVICE AGREEMENT
l.l7 Prudent Electrical Practices means those practices, methods and equipment, as
changed from time to time, that are commonly used in prudent electrical engineering and opera-
tions to operate electric equipment lawfully and with safety, dependability, efficiency and econ'
omy and that are in accordance with the IEEE Standards, the National Electrical Safety Code or
the National Electric Code or any other applicable govemment code in effect during the term of
this Agreement.
l.l8 Reliabilitv Authoritv means the North American Electric Reliability Corporation,
the Westem Electricity Coordinating Council, or any additional or successor organization which
is responsible for managing or enforcing transmission system reliability.
I .19 Retail Customer means a Rocky Mountain Power customer, other than Customer,
who purchases electric service for its own consumption (i.e., not for resale).
1.20 Termination Date means the hour ending 2400 on December 3l of the year estab-
lished in paragraph 2.1.
l.2l Total Contract Demand means the specified Demand in kilowatts that Customer
contracts with Rocky Mountain Power to supply for the Plant and that Rocky Mountain Power
agrees to have available for delivery to Customer. Customer may require the delivery of such
amounts of Demand as Customer may require to meet load requirements at the Plant up to, but not
in excess of, 215,000 kW unless otherwise agreed in writing in accordance with the terms of this
Agreement.
Section 2: Term: Reoneners
2.1 Term. The initial term of this Agreement shall commence January 1,2022,
contingent upon (i) the Parties' agreement on the Operating Procedure as defined in Exhibit A,
and (ii) Commission approval of the Agreement without modification, and the initial term of this
Agreement shall end on the hour ending 2400 on December 31,2023. This Agreement shall au-
tomatically renew for successive one (l ) year terms unless and until either Party gives not less than
180 days written notice of termination. Such notice may be given at any time to terminate the
Agreement at the end of any annual renewal year. After the Termination Date, Rocky Mountain
Power shall continue to provide any electric service to Customer as specified in Idaho Electric
Service Schedule No. 400 or its successor then in effect until such time as the Commission estab-
lishes or approves other terms and conditions and prices.
2.2 Reopeners and Price Adjustments. The charges specified in Section 4.1 of
this Agreement shall be adjusted from time to time so that the charges equal the Commission-
approved rates applicable to Customer, including, but not limited to, customer charges, demand
charges, energy charges, surcharges, and credits, as specified in Idaho Electric Service Schedule
No. 400 or its successor. Adjustments to the charges in Section 4.1 of this Agreement shall become
effective on the effective date of any adjustment to Idaho Electric Service Schedule No. 400 re-
sulting from any general rate case or other filing by Rocky Mountain Power.
2.2.1 Rocky Mountain Power may apply to the Commission for a modification of
this Agreement if Rocky Mountain Power demonstrates that any of the Curtailment Products are
materially reduced in value to Rocky Mountain Power due to any action or inaction by Customer,
JELECTRIC SERVICE AGREEMENT
including without limitation (a) Customer's modification, replacement or abandonment of any fur-
nace at the Plant, (b) Customer shutting down one or more of its fumaces for economic reasons
for an extended period of time, excluding shut-downs for maintenance, repair or capital improve-
ments, or (c) Customer installs electric generation equipment at the Plant during the term of the
Agreement; and as a consequence of Customer's actions or inactions as described above, Rocky
Mountain Power is materially financially harmed by reason of such reduction in Plant load, taking
into account the price that could be obtained by Rocky Mountain Power in a market sale of the
energy available from the reduced load, among other things. Rocky Mountain Power shall bear
the burden of satisfying these conditions. The Commission shall determine whether these condi-
tions have been satisfied and whether and in what respects this Agreement may be modified to
address the change in Customer's fumace operations and the financial harm to Rocky Mountain
Power.
2.2.2 Without limiting Rocky Mountain Power's rights in Section 2.2.1, Rocky
Mountain Power may apply to the Commission for a modification of Rocky Mountain Power's
Idaho Electric Service Schedule No. 400 and, as necessary and with approval of the Commission,
make associated modifications to this Agreement to facilitate such changes, if Rocky Mountain
Power demonstrates that it is materially financially harmed due to Customer installing electric
generation equipment at the Plant during the term ofthe Agreement. Customer shall inform Rocky
Mountain Power of any plans to install electric generation equipment at the Plant at least 270 days
prior to the anticipated operation date of the electric generation equipment.
2.2.3 To the extent Customer increases its operating load or otherwise modifies
its operations at the Plant such that additional energy or capacity products are available from the
Plant in addition to the Curtailment Products, Customer grants a right of first offer for such incre-
mental products to Rocky Mountain Power.
Section 3: Purchase and Sale of Electric Service
3.1 Scope of Deliveries. Rocky Mountain Power shall deliver such amounts of electric
service to the Point of Delivery as Customer requires to meet its load requirements at the Plant up
to, but not in excess of, Total Contract Demand, subject to the provisions of Exhibit A.
3.2 Delivery Voltaee. Rocky Mountain Power shall deliver electric service at the Point
of Delivery in the form of three-phase, alternating current at a nominal frequency of 60 cycles per
second, and at a nominal voltage of 138,000 volts, in accordance with Prudent Electrical Practices.
Except during temporary emergency conditions, Rocky Mountain Power shall maintain voltage
within the limits of 5 percent above and 5 percent below a normal operating voltage, such normal
voltage to be established by Rocky Mountain Power from time to time upon reasonable notice to
Customer, between the limits of 120,000 volts and 138,000 volts. Rocky Mountain Power reserves
the right to modiff the voltage standards in this Section to conform to changes in applicable ANSI
standards.
3.3 Reactive Requirements. Customer shall control and limit the flow of reactive
power between Rocky Mountain Power's system and Customer's system so as to maintain a nom-
inal power factor of 0.95 or higher at all times, corresponding to a kilovar demand of 33 kilovars
per 100 kW of Demand. In the event Customer does not comply with this section in any Billing
4ELECTRIC SERVICE AGREEMENT
Period, Customer shall pay the Excess Kilovar Charge multiplied by the Excess Kilovar for such
Billing Period, as set forth in Section 4.1.1.
3.4 Phase Balance. Customer shall balance its loads among phases to the extent prac-
ticable. If the difference between maximum and minimum phase loads regularly or frequently
exceeds ten percent (10%), based upon a defined place of measurement, Rocky Mountain Power
may require that Demand be determined on the basis ofthree times the load in the maximum phase.
3.5 Wave Form. In the design, selection, and operation of equipment using electric
power, Customer shall observe due precautions to avoid distortion of wave form that, reacting
through the system of Rocky Mountain Power, may result in interference to operation of telephone
systems or in other injurious effects to Rocky Mountain Power's electrical system or other Retail
Customers. If such adverse effects result at any time from distortion of wave form by causes
originating in the Customer Electrical Facilities, Customer shall remediate such effects in accord-
ance with Section 3.7 of this Agreement.
3.6 Cooperation in Operation. Customer shall endeavor to supply Rocky Mountain
Power in advance with information as to conditions affecting Customer's electric service that may
aid Rocky Mountain Power in load dispatching and in planning Rocky Mountain Power's power
system operation, such as the probable times and durations of substantial daily load changes. Fol-
lowing an unexpected furnace outage, Customer shall noti$ Rocky Mountain Power's dispatcher
as quickly as possible of the expected duration of such outage. Such estimates or advance infor-
mation shall not be binding on either Party.
3.7 Remediation. In the event Customer's operations fail to comply with technical re-
quirements of this Agreement or the Electric Service Regulations, or adversely affect the operation
of Rocky Mountain Power's transmission or distribution system or impair service of other Retail
Customers, Rocky Mountain Power will promptly give Customer written notice thereof. Within
thirty (30) days after such notice a working team will be formed with members designated by each
Party. The working team will then consult and meet as needed to identiff and agree upon: (l) the
nature and extent of the alleged problem or deficiency; (2) the cause and responsibility for the
problem; (3) reasonable alternative solutions together with the costs and implementation time as-
sociated with each; and (4) a mutually acceptable remedial action plan. If the Parties fail to agree,
either may petition the Commission to resolve any disputes, which determination shall be binding.
Any remedial action agreed upon by the Parties or determined by the Commission shall be
promptly undertaken and pursued to completion. Should Customer fail without good cause to
begin to take corrective action within thirty (30) days after the established start date, Rocky Moun-
tain Power may perform the necessary action and Customer shall reimburse Rocky Mountain
Power the reasonable costs thereof.
Section 4: Pavment for Electric Service
Determination of Billine Amounts.4.1
4.1.1 The charges in the then-current version of ldaho Electric Service Schedule
No. 400 or its successor will apply each Billing Period to all electric service delivered to Customer
under this Agreement. All billing statements for electric service shall show the amount due for the
5ELECTRIC SERVICE AGREEMENT
type and quantity of Demand and Energy purchased and charged in accordance with this Agree-
ment. Total charges for the Billing Period shall be the sum of (i) through (v) of this Section 4. I . 1
less the applicable portion of the Curtailment Products Credit for the Billing Period as set forth in
Exhibit A, where (i) equals the Energy Charge times the Energy for the Billing Period; (ii) is the
Customer Charge; (iii) equals the Demand Charge times the Demand for the Billing Period; (iv)
equals the Excess Kilovar Charge times the Excess Kilovar for the Billing Period; and (v) is any
and all other charges or credits applicable to Idaho Electric Service Schedule 400, as approved by
the Commission, not identified in (i) through (iv) above. The billing statement shall also include
any details as set forth in Exhibit A.
4.1.2 Electric service delivered under this Agreement shall be recorded by appro-
priate metering devices as installed and described in Section 7.
4.1.3 All payments to Rocky Mountain Power under this Agreement shall be de-
livered by wire transfer as follows within thirty (30) days of the date of the invoice.
4.2 Billing Disputes. In the event that all or a portion of Customer's bill, or of any
other claim or adjustment arising hereunder, is disputed, Customer will pay the undisputed portion
of the bill when due. At the time of the payment, Customer shall provide Rocky Mountain Power
with a written explanation of any disputed portion withheld ("Customer Notice of Billing Dis-
pute"). Customer and Rocky Mountain Power shall seek to make a determination on any disputed
amount within sixty (60) days after issuance of Customer's Notice of Billing Dispute. If it is
determined that the disputed portion is due Rocky Mountain Power, Customer shall pay such to
Rocky Mountain Power within fifteen (15) days following such determination, together with in-
terest from the date the bill was originally due at the rate then specified in the Electric Service
Regulations or, if no rate is specified, the publicly announced prime rate or reference rate for com-
mercial 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 shall be the an-
nounced 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., as selected by Rocky Mountain
Power.
4.3 Deposits. If at any time either Pany becomes aware of information regarding the
other Party which it believes will substantially impair the other Party's ability to perform its obli-
gations under this Agreement, such Party may request assurances of performance in writing from
the other Party. If such assurances are not satisfactory to the requesting Party, after consultation
with the other Party, the requesting Party may petition the Commission for appropriate protections
including but not limited to a financial deposit, guarantee or letter of credit.
Section 5. Curtailment Products
In exchange for the Curtailment Products Credit, Customer agrees to provide Rocky Moun-
tain Power with the Curtailment Products in the amounts and in accordance with the terms and
conditions of Exhibit A.
6ELECTRIC SERVICE AGREEMENT
Section 6: Onerations and Maintenance
6.1 Licenses. Customer hereby licenses to Rocky Mountain Power for its use in con-
nection with this Agreement and during the term of this Agreement, reasonably sufficient space in
Customer's 138 kV substation to be used solely by Rocky Mountain Power's metering equipment,
static capacitors, not to exceed 30,000 kilovars, and associated facilities necessary or useful for
Rocky Mountain Power's provision of electric service to Customer, consistent with Prudent Elec-
trical Practices, which license shall include reasonable rights of ingress and egress necessary for
Rocky Mountain Power's exercise of such license. In the exercise of this license and their rights,
Rocky Mountain Power shall, acting consistent with Prudent Electrical Practices, not interfere with
the operations of Customer, shall schedule and coordinate its activities to avoid such interference
and shall abide by Customer safety requirements.
6.2 Customer's 138 kV Substation. Customer shall be responsible for the operation
and maintenance of its own facilities and equipment within Customer's 138 kV substation. Any
equipment supplied by Rocky Mountain Power shall remain the property of Rocky Mountain
Power and shall be maintained by Rocky Mountain Power.
6.3 Operation of Customer Electrical Facilities.
6.3.1 In orderto minimize the hazards to both Rocky Mountain Power's and Cus-
tomer's electrical systems, protective devices, circuit breakers and other Customer Electrical Fa-
cilities interconnected with Rocky Mountain Power shall be operated by qualified Customer per-
sonnel only upon prior notification to, and receipt of permission from, Rocky Mountain Power's
SCC Region Dispatcher, except as provided in Paragraph 6.4 hereof. Rocky Mountain Power's
Dispatcher shall honor Customer's verbal requests for permission to operate Customer's protective
devices and other Customer Electrical Facilities if such operation will not, in the opinion of Rocky
Mountain Power, impair such facilities and the reliable operation of Rocky Mountain Power's
electrical system or impair service to other Retail Customers; provided, that Customer may operate
Customer's circuit breakers and other Customer Electrical Facilities without prior notification
when Customer deems it necessary to protect persons or property at its Plant. In such event, Cus-
tomer shall assume full and sole liability for injury or damages to persons or property at the Plant
resulting from such operation of the circuit breakers or other Customer Electrical Facilities.
6.3.2 Customer currently provides potential and current transformers for use in
connection with its own relaying and metering operations and Rocky Mountain Power may use
such transforrners to any reasonable extent for Rocky Mountain Power's metering, relaying, and
communication requirements. Should Customer's potential and current transformers not meet
Rocky Mountain Power's requirements, Customer shall install any potential and current trans-
formers required by Rocky Mountain Power that are supplied by Rocky Mountain Power.
6.3.3 Rocky Mountain Power may operate the circuit breakers feeding Cus-
tomer's interconnections to accommodate operation of Rocky Mountain Power's and Customer's
systems in a manner consistent with Prudent Electrical Practices; ry4le(L that, except as provided
in Paragraph 6.4, Rocky Mountain Power shall notiff Customer prior to operating such circuit
breakers and shall keep Customer informed as to the operating status of such breakers.
7ELECTRIC SERVICE AGREEMENT
6.3.4 Upon notice to Customer, Rocky Mountain Power shall have reasonable
access to Customer's substation control building(s). Rocky Mountain Power personnel shall com-
ply with all health, safety, and confidentiality rules, regulations and practices that Customer has
provided to Rocky Mountain Power.
6.3.5 Any failure of the Customer Electrical Facilities to operate adequately or
properly shall not subject Rocky Mountain Power to liability to Customer for any resulting loss or
damages, or consequential damages of any kind, and Customer hereby releases Rocky Mountain
Power from any such liability.
6.4 Emersency Conditions. In the event of an emergency resulting in danger to persons
or property, or potential danger to Customer's and/or Rocky Mountain Power's systems, either
Rocky Mountain Power or Customer may open their respective circuit breakers without notice to
the other Party. Whenever possible, the Parties shall notiff the other Party prior to opening any
such device, and notification shall be made as soon as possible after the device has been opened.
When corrective actions have been completed, Rocky Mountain Power shall restore service upon
receiving notice and being satisfied that all necessary corrections have been made.
6.5 Relays. Rocky Mountain Power may provide and install on Customer's relay panel
under-frequency relays for the purpose of tripping Customer's power circuit breakers at such un-
der-frequencies as may be specified by Rocky Mountain Power in accordance with Prudent Elec-
trical Practices.
6.6 Maintenance of Customer Electrical Facilities.
6.6.1 Customer shall be solely responsible for the operation and maintenance of
the Customer Electrical Facilities. Customer shall inspect the Customer Electrical Facilities on a
regularly scheduled basis and maintain them in safe operating condition.
6.6.2 Rocky Mountain Power may, but is not required to, inspect the Customer
Electrical Facilities during reasonable business hours and if, in the sole judgment of Rocky Moun-
tain Power, the Customer Electrical Facilities are not mainkined in safe operating condition,
thereby creating ahazard to persons or property or to the operation of Rocky Mountain Power's
system, Rocky Mountain Power shall notiff Customer promptly stating the required maintenance,
replacement, or repair necessary to put the Customer Electrical Facilities in safe operating condi-
tion and speciffing a reasonable period in which to make repair. Such inspections shall be per-
formed by a person or persons that have been certified as safety trained. Rocky Mountain Power
will advise Customer of the names and titles of persons to be admitted to the Customer site. Cus-
tomer shall make such or equivalent repairs, replacement or maintenance within a reasonable time.
In the event specified corrective procedures are not completed as required by the notice, Rocky
Mountain Power may, without further notice to Customer, discontinue service to Customer. In the
event Rocky Mountain Power discontinues service under this Section, Rocky Mountain Power
shall not be liable to Customer for any resulting loss or damage, including, but not limited to, lost
profits or consequential damages of any kind, and Customer hereby releases Rocky Mountain
Power from any such liability. The provisions of this Section for the restoration of safe operating
conditions are not subject to the remediation procedures of Section 3.7 of this Agreement.
8ELECTRIC SERVICE AGREEMENT
Section 7: Meterins
7.1 Rocky Mountain Power Obligations. Rocky Mountain Power shall provide, main-
tain, and test meters and metering equipment required for purposes of settlement hereunder, except
any potential transformers and current transformers owned by Customer under Section 6.3.2. Me-
ters, metering equipment and measurement shall be located at the Point of Delivery. Maintenance
and periodic testing procedures with respect to meters and metering equipment shall be in accord-
ance with generally accepted practices and the rules and standards established by the Commission.
In addition to Rocky Mountain Power's periodic tests, special tests shallbe made if requested by
Customer, which special tests shall be conducted at the expense of Customer. Customer shall
fumish without charge reasonable incidental service, such as removal of tapes and charts, and shall
communicate to Rocky Mountain Powerthe meterreadings necessary foroperation. Rocky Moun-
tain Power's designated agents shall have access to such metering equipment at all reasonable
times and shall be permitted to install and operate from time to time any testing equipment needed
in connection with operations or settlements hereunder.
7.2 Obligations. If either Customer or Rocky Mountain Power provides check-meter-
ing equipment, information with respect to registrations thereof will be provided.
7 .3 Meter Testing. Representatives of Rocky Mountain Power and Customer may be
present at all routine or special tests of meters and metering equipment and upon occasions when
any readings are taken for purpose of settlements.
7.4 Adjustments to Bills. tf, at any test of any meter or metering equipment, an inac-
curacy is disclosed exceeding two percent (2Yo), the account for service theretofore supplied shall
be adjusted to correct for such inaccuracy for a period ofninety (90) days prior to the date ofsuch
test, or for the period during which such inaccuracy may be determined to have existed, whichever
period is the shorter. Should any meter at any time fail to register, or should the registration be so
erratic as to be meaningless, the quantities shall be determined from Rocky Mountain Power's
check meters or otherwise from the best available data.
7.5 Telecommunications Facilities. Upon Rocky Mountain Power's request, Customer
shall maintain a dedicated telephone line for meter reading purposes without charge to Rocky
Mountain Power. Customer shall pay all recurring charges related to line operation.
Section 8: Force Maieure
Neither Rocky Mountain Power nor Customer shall be subject to any liability or damages
for inability to provide or receive service to the extent that such failure shall be due to causes
beyond the control of either Rocky Mountain Power or Customer, including, but not limited to the
following: (a) the operation and effect of any rules, regulations and orders promulgated by any
commission, municipality, or governmental agency of the United States, or subdivision thereof (so
long as the claiming Party has not applied for or assisted in the application for, and has opposed
where and to the extent reasonable, such government action); (b) restraining order, injunction or
similar decree of any court; (c) war; (d) explosion; (e) fire; (f) major breakage or failure of equip-
ment; (g) flood; (h) earthquake; (i) act of God; O sabotage; or (k) strikes or boycotts (such events
constituting a "Force Majeure"). Should a Force Majeure occur, the Party claiming Force Majeure
9ELECTRIC SERVICE AGREEMENT
shall have no liability for performance during the period of Force Majeure; provided, the Party
claiming Force Majeure shall make every reasonable attempt to remedy the cause thereof as dili-
gently and expeditiously as possible.
Section 9: Resale
No component of the electric service delivered to and purchased by Customer pursuant to
this Agreement may be resold directly or indirectly by Customer, or any affiliate of Customer, to
any person or entity.
Section 10: Liabilitv
l0.l Liabilitv. Each Party hereto (the "liability causing Party") shall defend, indemniff
and hold harmless the other Party from and against any liability, damage, loss, costs and expenses,
including but not limited to attorneys' fees, on account of injury to or death of persons including,
but not limited to, Customer's employees and Rocky Mountain Power's employees, or damage to
property to the extent caused by or arising from the negligent acts or omissions of the liability
causing Party.
10.2 Limitation of Liability. Rocky Mountain Power shall endeavor at all times to pro-
vide steady and continuous service to Customer and shall make reasonable efforts to prevent ir-
regularities and intemrptions. Rocky Mountain Power shall use its best efforts to notiff Customer
prior to or, in any event, immediately after an intemrption or irregularity in order that Customer
may attempt to mitigate its damages resulting therefrom. If due to causes beyond the control of
Rocky Mountain Power the supply of elechicity is irregular, defective, or fails, Rocky Mountain
Power shall not be liable for any physical damages, economic losses, costs or damages resulting
therefrom, including but not limited to special, indirect, incidental, consequential, punitive, or ex-
emplary damages.
Section 1l: Successors and Assigns
Neither Rocky Mountain Power nor Customer shall assign this Agreement without the
written consent of the other Party, which consent shall not be unreasonably withheld, except Cus-
tomer may assign this Agreement without any such consent to the acquirer of the majority of the
value of the Plant, provided that Customer as assignor shall continue to guarantee the performance
by the assignee of the Customer obligations under this Agreement and furtherprovided that Rocky
Mountain Power may assign this Agreement without any such consent to an entity that acquires
the majority of the value of Rocky Mountain Power's facilities, in which event Rocky Mountain
Power as assignor, shall guarantee the assignee's performance of Rocky Mountain Power's obli-
gations. Any assignee or successor of Customer shall remain subject to such assignee's or succes-
sor's qualification as a customer under Rocky Mountain Power's policies and Electric Service
Regulations, and shall be bound by this Agreement, the Electric Service Regulations, and assume
the obligations of Customer from the date of assignment. If assigned with such consent, this
Agreement shall inure to the benefit and be binding upon the assignee, its agents and assigns;
ry4!9g[, that nothing herein shall prevent either Party from assigning this Agreement to its parent
ELECTRIC SERVICE AGREEMENT l0
corporation or to its survivor in connection with a corporate reorganization, provided that such
assignee is solvent and is able to meet its obligations hereunder.
Section 12: Jurisdiction of Reeulatorv Authorities
l2.l Regulatory Authorities. This Agreement is subject to the approval of the Commis-
slon.
12.2 Electric Service Regulations. The Electric Service Regulations are incorporated
herein and made a part of the Agreement. Once the Commission approves the Agreement, the
provisions of the Agreement shall take precedence over any conflicting provisions of Rocky
Mountain Power's Electrical Service Regulations. The Parties acknowledge and agree that they
are familiar with such existing regulations and agree to abide by them and all amendments and
changes thereto so approved by the Commission. In the event that the Commission or any other
state, federal, or municipal authority having jurisdiction issues any rules, regulations, or orders
that require Rocky Mountain Power to alter or amend any of the terms and conditions of this
Agreement or to terminate or curtail electric service to Customer, neither Party shall be liable for
damages or losses of any kind whatsoever which the other Party may sustain as a result of such
rule, regulation or order, including consequential damages.
Section 13: Remedies
Each Party may exercise any or all of its rights and remedies under this Agreement, the
applicable Electric Service Regulations and under any applicable laws, rules and regulations. No
provision of this Agreement or the Electric Service Regulations shall be deemed to have been
waived unless such waiver is in writing signed by the waiving Party. No failure by any Party to
insist upon the strict performance of any provision of this Agreement, the Electric Service Regu-
lations or to exercise any right or remedy consequent upon a breach thereof, shall constitute a
waiver of any such breach of such provision or of any other provision. No waiver of any provision
of this Agreement or the Electric Service Regulations shall be deemed a waiver of any other pro-
vision of this Agreement, the Electric Service Regulations or a waiver of such provision with re-
spect to any subsequent breach, unless expressly provided in writing.
Section 14: Renresentatives and Notices
For the purposes of this Agreement, any notices required to be given hereunder shall be
sent postage prepaid, by registered or certified mail, return receipt requested (or alternately by
electronic mail or any other method acceptable by both Parties) to the Parties at the respective
addresses below and shall be deemed to have been given when received as evidenced by the ap-
propriate receipt veriffing delivery:
Representatives of Customer:
Energy Manager
P4 Production, L.L.C.
1853 Highway 34; P.O. Box 816
Soda Springs, Idaho 83276
ELECTRIC SERVICE AGREEMENT ll
Tel: [phone]
[e-mail]
Assistant General Counsel - Procurement
Bayer
800 N. Lindbergh Blvd.;mail stop EINE
St. Louis, MO 63167
Tel: [phone]
[e-mail]
With a copy to:
Racine Olson, PLLC
201E. Center St.; P.O. Box l39l
Pocatello,ID 83204
Representatives of Rocky Mountain Power:
Legal Department
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OF.97232
Attn: Assistant General Counsel
With a copy to:
Contract Administration
PacifiCorp
825 NE Multnomah, Suite 600
Portland, OR 97232
Attn : cntadmin@pacifi corp.com
This notice requirement does not apply to regular and ordinary business and operation communi-
cations between the Parties' employees.
Section 15: Other Contracts
This Agreement constitutes and contains the entire Agreement of the Parties hereto and
supersedes any and all prior negotiations, correspondence, understanding, and agreements between
the Parties respecting the subject herein. This Agreement may not be modified, altered, or changed
in any manner whatsoever except pursuant to the express provisions of this Agreement or by writ-
ten agreement between the Parties hereto, subject to Commission approval.
Section 16: Governins Law: Jurisdiction: Venue
All provisions of this Agreement and the rights and obligations of the Parties shall in all
cases be governed by and construed in accordance with the laws of the State of Idaho applicable
to contracts executed in and to be wholly performed in Idaho by persons domiciled in the State of
ELECTRIC SERVICE AGREEMENT t2
Idaho. Each Party hereto agrees that any suit, action or proceeding seeking to enforce any provi-
sion of, or based on any matter arising out of or in connection with, this Agreement, the Electric
Service Regulations or the transactions contemplated hereby or thereby, may only be brought be-
fore the Commission, the Federal courts located within the State of ldaho, or state courts of the
State of Idaho, and each Party hereby consents to the exclusive jurisdiction of such forums (and of
the appellate courts therefrom) in any such suit, action or proceeding.
Section 17: Attornev's Fees
If any suit or action arising out of or related to this Agreement or the Electric Service Reg-
ulations is brought by any Pu.ty, the prevailing Party shall be entitled to recover the costs and fees
(including, without limitation, reasonable attorneys'fees, the fees and costs of experts and consult-
ants, copying, courier and telecommunication costs, and deposition costs and all other costs of
discovery) incurred by such Party in such suit or action, including, without limitation, any post-
trial or appellate proceeding, or in the collection or enforcement of any judgment or award entered
or made in such suit or action.
Section 18: Cooneration
Whenever this Agreement requires that one Party comply with the rules, regulations, stand-
ards or requirements of the other Party, the Parties agree to cooperate with each other in requesting
and providing such rules, regulations, standards or requirements on a timely basis.
Section 19: Headinss/References
The descriptive headings contained in this Agreement are included for reference only and
shall not affect in any way the meaning or interpretation of this Agreement. References in this
Agreement to Sections are to Sections of this Agreement unless otherwise stated or evident from
the context.
Section 20: Construction of Asreement
This Agreement was drafted as a joint effort of both Parties and may not be construed
against one Party over the other in the event of a controversy over its meaning.
Section 21: Counterparts
This Agreement may be executed as one instrument signed by the Parties or may be exe-
cuted in separate counterparts. Each separate counterpart is deemed an original.
Section 22: Jurv Trial Waiver
TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES
HERETO WAIVES ANY RIGHT TT MAY HAVE TO A TRIAL BY JURY TN RESPECT OF
LITIGATION DIRECTLY OR INDIRECTLY ARISTNG OUT OF, UNDER OR IN CONNEC.
TION WITH THIS AGREEMENT. EACH PARTY FURTHER WATVES ANY RIGHT TO
ELECTRIC SERVICE AGREEMENT l3
CONSOLIDATE A}IY ACTION IN WHICH A JURY TRIAL HAS BEEN WAMED WTTH
ANY OTIIER ACTION IN WHICH A JURY TRIAL CA}.INOT BE OR HAS NOT BEEN
WAIVED. THIS PARAGRAPH WILL SURVTYE TIIE E)(PIRATION OR TER!frNATION OF
THIS AGREEMENT.
I s t gnotw e p a ge fo llou,sJ
ELECTRIC SERVICE AGREBMENT 14
IN WITNESS MEREOF, the Parties have caused this Agrcement to be sxccuted by their
authorized officers or r€prcssrtatives as of the dat€ first hereinabovc writton.
PACIFICORP
dbr Rocky Mountain Porer
Name:
Titlc:
P4 ,L.LC.
By:By:
Title:
ELECTRIC SERVICE AGREEMENT l5
EXHIBIT A
OPERATING RESERVE AI\ID ECONOMIC CURTAILMENT OPTIONS
This Exhibit A is a part of the Electric Service Agreement ("Agreement") between Rocky
Mountain Power and P4 Production, L.L.C., a Delaware limited liability company ("Customer"),
and is subject to the terms and conditions of the Agreement.
Section l. Definitions . Capitalized terms used in this Exhibit A and not otherwise defined
in the Agreement, shall have the meaning set forth below:
"Economic Curtailmen " means the curtailment of Fumace No. 9 by Rocky Mountain
Power for economic reasons in accordance with this Exhibit A. An Economic Curtailment is not
an Operating Reserve Curtailment or a Transmission Operator Curtailment.
"EIM RTPD" means real-time pre-dispatch price within the western Energy Imbalance
Market.
"Furnace No. 7'means that certain electric phosphorus furnace in operation at the Plant
with an electrical demand of approximately 46 MWs.
"Furnace No. S means that certain electric phosphorus fumace in operation at the Plant
with an electrical demand of approximately 49 MWs.
"Furnace No. 9" means that certain electric phosphorus fumace in operation at the Plant
with an electrical demand of approximately 67 MWs.
"Plant" means that certain elemental phosphorus plant located near Soda Springs City in
Caribou County,ldaho.
"Transmission Operator Curtailmenf" means a system emergency curtailment or intemrp-
tion as instructed by Rocky Mountain Power's transmission operator consistent with applicable
grid reliability standards.
'oMonsanto Price Node" means the MONSANTO_NCL2 price node for the western En-
ergy Imbalance Market, as available in the "FMM Locational MarginalPrices" tab within the Cal-
ifornia Independent System Operator website at oasis.caiso.com.
"Operating Procedure" means the separate written operating procedure agreed to between
Rocky Mountain Power and Customer implementing the technical and communication procedures
set forth in this Exhibit A.
ELECTRIC SERVICE AGREEMENT l6
"Operating Reserve" means a specific amount of electrical resources that all balancing
authority areas must have available at all times to ensure the reliable operation of the intercon-
nected electrical system pursuant to applicable requirements or guidelines of a Reliability Au-
thority.
"Operating Reserve Curtailmenf'means the curtailment of one or both of Fumace No. 7
and Furnace No. 8 by Rocky Mountain Power for Operating Reserves in accordance with this
Exhibit A. An Operating Reserve Curtailment is not an Economic Curtailment in accordance with
this Exhibit A or a Transmission Operator Curtailment.
Section 2. Operatins Reserve Curtailment.
2.1 Upon not less than six (6) minutes notice via the Operating Procedure, Customer
will reduce load to zero for one or both of Furnace No. 7 and Furnace No. 8 as directed by Rocky
Mountain Power. Rocky Mountain Power may direct Operating Reserve Curtailment when
Rocky Mountain Power determines in its sole discretion that such curtailment is needed to meet
Operating Reserve requirements, subject to the terms and conditions of the Agreement, the Oper-
ating Procedure, and this Exhibit A.
2.2 Customer is permitted to restore to service any curtailed furnace under this Section
2 atthe earlier of: (l) notice from Rocky Mountain Power, or (2) one hundred and twenty (120)
minutes after the start of such Operating Reserve curtailment as provided in Section 3.2(c) below.
2.3. Nothing in this Section 2 is intended to limit Rocky Mountain Power's rights and
obligations consistent with Prudent Electrical Practices to curtail or intemrpt all or some portion
of the load at the Plant due to a Transmission Operator Curtailment Event.
Section 3. Limitations on Operating Reserve Curtailments
3.1 The maximum number of hours per calendar year that Rocky Mountain Power
may direct Operating Reserve Curtailment under this Exhibit A shall be one hundred eighty-eight
(188) hours.
3.2 Without limiting the hourly limit set forth in Section 3.1 above, the instances in
which Rocky Mountain Power may direct an Operating Reserve curtailment shall be limited as
follows:
(a) No more than twenty-five (25) instances of Operating Reserve curtailment
in any calendar month; and
(b) No more than four (4) instances of Operating Reserve curtailment in any
four(4) hour period; and
(c) No more than one hundred twenty (120) minutes for any individual instance
of Operating Reserve curtailment.
ELECTRIC SERVICE AGREEMENT t7
3.3 Any Operating Reserve Curtailment that is less than one (l) hour shall be treated
as one (l) hour. Any Operating Reserve Curtailment that lasts longer than one (l) hour but
shorter than or equal to two (2) hours shall be treated as two (2) hours.
Section 4. Economic Curtailment.
4.1 Upon not less than 22.5 minutes notice via the Operating Procedure, Customer will
reduce Furnace No. 9 load to zero, as directed by Rocky Mountain Power. Economic Curtailment
shall occur in l5-minute intervals. Rocky Mountain Power shall provide notice of Economic Cur-
tailment via the Operating Procedure for each interval.
4.2 Upon the conclusion of the Economic Curtailment period, Customer is permiued
to restore to service Furnace No. 9, consistent with the Operating Procedure.
4.3 Nothing in this Section 4 is intended to limit Rocky Mountain Power's rights and
obligations consistent with Prudent Electrical Practices to curtail or intemrpt all or some portion
of the load at the Plant due to a Transmission Operator Curtailment Event.
Section 5. Limitations on Economic Curtailments.
5.1 Rocky Mountain Power may only call for an Economic Curtailment under Section
4 above if the EIM RTPD locational marginal price at the Monsanto Price Node exceeds $250 per
megawatt-hour (MWh). If the price at the Monsanto Price Node is no longer publicly available,
Rocky Mountain Power shall provide such pricing information to Customer upon Customer's re-
quest.
5.2 The maximum number of hours per calendar year that Rocky Mountain Power may
direct Economic Curtailments under this Exhibit A shall be 400 hours.
Section 6. Curtailment Products Credit.
6.1 Subject to the terms and conditions of the Agreement, including this Exhibit A,
Rockv Mountain Power shall credit to Customer an annual Curtailment Products Credit amount of
[ofwhichone.twelfth(ll|2)shallbecreditedeachBillingPeriod.
Section 7. Nonperformance.
7.1 Iffor any reason otherthan as provided in Section 9 of this ExhibitAorreasons
outside of the reasonable control of Customer, Customer fails to comply with a notification from
Rocky Mountain Power as provided in this Exhibit A and the Operating Procedure, Rocky Moun-
tain Power shall have the following remedies as set forth below.
(a) With respectto Customer failing to comply with an Operating Reserve Cur-
tailment instruction, Customer shall reimburse Rocky Mountain Power for
all penalties, costs or other liabilities of any nature imposed on Rocky
ELECTRJC SERVICE AGREEMENT l8
Mountain Power by any applicable state or federal regulatory agency, in-
cluding without limitation, any applicable Reliability Authority or the Fed-
eral Energy Regulatory Commission directly resulting from Customer's
failure. In the event, at the request of Customer, Rocky Mountain Power
challenges any such alleged penalties, costs or other liabilities, Customer
shall reimburse Rocky Mountain Power for all reasonable legal fees and
associated costs.
(b) With respect to Customer failing to comply with an Economic Curtailment
instruction, Customer shall reimburse Rocky Mountain Power for penalties
or other costs imposed on Rocky Mountain Power for uninstructed imbal-
ance or otherwise in connection with Fumace No. 9's participation in the
western Energy Imbalance Market directly resulting from Customer's fail-
ure. Furthernore, in the event of two or more failures by Customer to fully
comply with an Economic Curtailment instruction results in Fumace No. 9
no longer being deemed an eligible resource of Rocky Mountain Power for
purposes of participation in the western Energy Imbalance Market or any
future successor imbalance or day-ahead market, as determined by the third-
party market operator, the Parties agree that Rocky Mountain Power may
petition the Idaho Public Utilities Commission for a reduction in the Cur-
tailment Products Credit used in the Agreement.
(c)ln the event Customer fails to comply with either an Operating Reserve
Curtailment instruction or an Economic Curtailment instruction, Rocky
Mountain Power may demand that Customer provide assurances in writ-
ing that Customer will in the future comply with curtailment notifications
as specified in this Exhibit A, including describing in detail such actions
Customer will take in the future to remedy the cause of such failure to
comply.
(d) Without limiting Rocky Mountain Power's rights under subsection (b)
above, in the event of a second failure by Customer to comply with a
curtailment instruction under this Exhibit A, Rocky Mountain Power may
petition the Idaho Public Utilities Commission for appropriate relief.
7.2 If Rocky Mountain Power requires Customer to proceed with an Operating Re-
serve Curtailment or Economic Curtailment under circumstances not permitted in this Exhibit
A, and Customer complies with such curtailment request, Customer shall have the following
remedies:
(a)Rocky Mountain Power shall pay Customer as damages the amount of
one hundred fifty thousand dollars ($150,000) for each occurrence, which
the Parties agree is a reasonable estimate of the damages expected to be
incurred by reason of such curtailment.
(b) Customer may demand that Rocky Mountain Power provide assurances
ELECTRIC SERVICE AGREEMENT t9
in writing that Rocky Mountain Power will in the future comply with the
requirements for curtailment as specified in this Exhibit A, including de-
scribing in detail such actions Rocky Mountain Power will take in the
future to remedy the cause of such failure to comply.
(c)In the event of a second failure by Rocky Mountain Power to comply with
the requirements for Operating Reserve Curtailment or Economic Curtail-
ment as specified in this Exhibit A, Customer may petition the Idaho Pub-
lic Utilities Commission for appropriate relief.
7.3 The remedies provided in this Section 7 for the specified failures to comply with
the requirements of this Exhibit A are the sole and exclusive remedies for such nonperformance.
Section 8. Maintenance of Automated Communication Devices and Dedicated Phone
Line.
8.1 Customer and Rocky Mountain Power shall maintain all equipment and software
necessary to facilitate automated electronic communications at the Plant from Rocky Mountain
Power consistent with the Operating Procedure.
8.2 Customer and Rocky Mountain Power shall maintain a dedicated telephone line
at their own cost in their respective control rooms. This line shall be solely dedicated for com-
munications between Customer fumace operators and Rocky Mountain Power dispatchers, as
such furnace operators and dispatchers are identified by each Party in Section I I below and up-
dated from time-to-time by written notice and acknowledged in writing by the receiving Party.
Section 9. Communication of Furnace Shutdowns.
9.1 Rocky Mountain Power acknowledges that the electric phosphorus furnaces at
the Plant will be removed from service from time to time during the term of this Agreement for
maintenance, overhauls, regulatory compliance, production, or emergency purposes ("Furnace
Shutdowns"). Customer will make reasonable efforts to (a) notiff Rocky Mountain Power at least
two (2) months in advance of planned Fumace Shutdowns per the notice provisions in Section I I
below, and (b) avoid or minimize scheduling Furnace Shutdowns between June I't and September
30th of each year; ppvided, however, that Customer shall have no obligation to defer Furnace
Shutdowns in a manner that adversely impacts the operating conditions, life, maintenance, regu-
latory compliance, or production of the furnaces. Customer shall inform Rocky Mountain Power
dispatchers prior to restoring electrical power to furnaces after Fumace Shutdowns. Notwith-
standing the foregoing, if Customer reasonably determines that a furnace must be shut down due
to an emergency event and two (2) month's advance notice under this Section 9.1 is not possible,
such emergency shutdown shall not be a violation of this Section 8 provided Customer gives notice
to Rocky Mountain Power as soon as reasonably practicable following it becoming aware of the
emergency event. Should Customer shut down one or more furnaces for a period of ten (10) con-
tinuous days or more, Customer shall provide regular status updates on when such furnace or fur-
naces are estimated to be retumed to service.
ELECTRIC SERVICE AGREEMENT 20
9.2 If Fumace No. 7 or Furnace No. 8 is unavailable due to maintenance or overhaul,
and an Operating Reserve curtailment notification is delivered by Rocky Mountain Power under
this Exhibit A, Customer will not resume operation of the unavailable fumace(s) until the earlier
of: (a) notice from Rocky Mountain Power dispatcher, or (b) one hundred twenty (120) minutes
after the notification by Customer to resume service.
9.3 If Furnace No. 9 is unavailable due to maintenance or overhaul, and an Economic
Curtailment notification is delivered by Rocky Mountain Power under this Exhibit A, Customer
will not resume operation of Furnace No. 9 until notice is received from Rocky Mountain Power
dispatcher.
Section 10. Reporting.
I 0. I Simultaneous with Rocky Mountain Power's monthly invoice to Customer for elec-
tric service purchased under this Agreement, Rocky Mountain Power shall provide Customer with
a report detailing all curtailments directed by Rocky Mountain Power during the previous month,
including the following information:
(a) Type of curtailment (i.e., Transmission Operator Curtailment Event, Oper-
ating Reserve curtailment, or Economic Curtailment);
(b)
(c)
(d)
Date(s) of such curtailment(s);
Beginning and end time of each incident of curtailment;
For each incident of curtailment, identification of the Plant furnaces cur-
tailed; and
(e) Year-to-date total hours of each type of curtailment.
Section I l. Contacts. The designated representatives for performance under this Exhibit
A are set forth below and may be updated from time-to-time by written notice to the other Party.
Customer's Plant operator:Mike Veile
Energy Manager
P4 Production, L.L.C.
1853 Highway 34,
P.O. Box 816
Soda Springs, ID 83276
Telephone: [phone]
Email : [e-mail]
Rocky Mountain Power: Generation Dispatcher
Telephone: (503) 8 I 3-5394
Emai I : C TRea I Ti meGeneration Desk(@ Pac i fi Corp. conr
ELECTRIC SERVICE AGREEMENT 2t
Secondary contact:
Thomas Burns
825 NE Multnomah Street, Ste. 600
Portland, OR97232
Telephone: (503) 8l 3-5436
Email : Thomas.Burns@pacifi corp.com
ELECTRJC SERVICE AGREEMENT 22
Final 11-5-2021
Operating Procedure
Effective January L, 2022
This Operating Procedure, effective as stated above, is intended by PacifiCorp and P4
Production, L.L.C. ("P4") to be that certain "Operating Procedure" as referenced in Exhibit A to
the Electric Service Agreement. This Operating Procedure may be revised at any time upon
mutual written agreement of the Parties to the Electric Service Agreement. Capitalized terms
used and not otherwise defined in this Operating Procedure shall have the meanings assigned
to them in the Electric Service Agreement.
P4 - Operating Reserve Use of Furnace No. 7 and Furnace No. 8
PacifiCorp recognizes that each of P4's electric phosphorus furnaces operate at different
electrical rates. Upon telephone notification by PacifiCorp for Operating Reserves interruption,
P4 will interrupt within six (6) minutes its available furnace load on Furnace No. 7 and Furnace
No. 8 as defined below, subject to the terms of Exhibit A to the Electric Service Agreement. At
the time of the notification, P4's operator shall inform PacifiCorp's dispatcher of the amount of
service it will be interrupting.
Curtailments for Operating Reserve will be as follows depending upon furnace availability (i.e.,
operation) at the time of notification:
Furnace No. Operating P4 to Curtail
7 and 8 Operating Curtail Furnace No.7 and No.8
8 Operating CurtailS
7 Operating CurtailT
P4 is permitted to restore to service any curtailed furnace the earlier of:
(1) notice from PacifiCorp, or
(2) one hundred and twenty (120) minutes after the start of such Operating Reserve
curtailment.
P4 - Furnace No. 9 Economic Curtailment Control Scheme.
This is a control description to allow P4 to satisfy the Economic Curtailment of Furnace No. 9 when the
EIM (Energy lmbalance Market) RealTime Pre-Dispatch is greater than S250/MWh. The EIM Real Time
Pre-Dispatch intervals are whole 15-minute periods, starting at XX:00, XX:15, XX:30 and XX:45.
PacifiCorp will install a new relay board in the existing D20 RTU at P4's 138 kV Substation to pass the
curtailment signalto P4. The curtailment signalthat generates out of the Automated Dispatch System
("ADS") or other system utilized to communicate market awards from a security constrained economic
dispatch and passes through PacifiCorp's Energy Management System ("EMS") will register in the
Page 1 of 8
Final 11-5-2021
Remote Terminal Unit ("RTU") and a dry contact, a standard 500 milliseconds pulse, will be issued to one
of the momentary controls in the RTUs relay board. P4 engineers will interface directly to the output
contacts of the RTU's relay board to pass this signal to their Distributed Control System ("DCS").
Similarly, P4 is expected to pass a feedback signal back to PacifiCorp to acknowledge that curtailment
signal has been received and that a change of state of the furnace will be executed. lf P4's feedback
signal is not received by PacifiCorp in the next scan cycle the curtailment signal will be sent again, and
repeated up to five times. After five retries, if there is still no feedback signal received from P4,
PacifiCorp operators will make all reasonable efforts to issue a manual curtailment phone callto P4
operators. To allow the Parties to work through any equipment-related issues upon the initiation of the
Agreement's term, for the period January 1,2022 through June 30, 2022,there will be no more than
three waivers of penalties by PacifiCorp for P4's failure to curtail Furnace No. 9.
L. P4 receives an economic curtailment signal of momentary "t" via PacifiCorp from the dry
contact at the RTU located in their power meter at the substation.
a. Upon receipt of the economic curtailment signal, P4 acknowledges receipt to PacifiCorp
via a telemetered response. P4's feedback signal will be active for the remainder of P4's
current 10 min 30 sec signal cycle. (e.9.- up to 23:37 min 30 sec, 23:52 min 30 sec, etc.)
and deactivated after the current signal rycle ends.
b. ln the event economic curtailment is awarded to Furnace No. 9 in the EIM and an
economic curtailment signal is not sent to P4 due to failure of PacifiCorp's facilities, a
PacifiCorp operator may notify the P4 control room via telephone of an upcoming
economic curtailment and P4 shall comply with such telephonic economic curtailment
instruction, provided the intended curtailment period is to begin no sooner than 22.5
minutes from the time of notification. ln this circumstance, PacifiCorp's operator will
provide the start time of the 15-minute curtailment.
c. lf a failure of either parties' automated telemetered process occurs and the start of the
curtailment period is occurring within 22.5 minutes, P4 will make a reasonable effort to
abide by the manual curtailment instruction.
d. ln the event of a failure of either parties' automated telemetered process, no
assumption of fault will be made during real time operations. PacifiCorp operators will
make all reasonable efforts to issue a manual curtailment and P4 will make all
reasonable efforts to comply with the manual curtailment. Both parties will convene at
the earliest reasonable time to determine the root cause of the failed automated
telemetered process.
e. Telemetered issuance and response is intended to be the primary and preferred
communication channel for economic curtailment under the Electric Service Agreement.
ln the event of failure of PacifiCorp's facilities to send and receive economic curtailment
signals, a good faith effort will be made to restore functionality as soon as possible.
2. Upon receiving this momentary "1" signal P4 passes a feedback signal back to PacifiCorp and will
identifo the next 15 minute interval that is applicable per the "24 Hour Time lnterual Map."
a. This means P4 and PacifiCorp are specifically looking for 15 min periods such as those
beginning 1:00, 1:15, 1:30, 1:45 etc,
b. A signal received between 10:42 minutes and 10:52 minutes for example would mean
that the curtailment period begins at 11:15
Page 2 of 8
Final 11-5-2021
c. Each 10 min signal cycle P4 will receive a new momentary "L" signalfrom PacifiCorp if
curtailment is needed for the relevant 15 min period.
3. Upon P4 receiving the economic curtailment signal, an alarm from P4's Delta V control system
sounds as well as visually signals on the P4's Human Machine lnterface ("HMl") to notify P4's
furnace operator that Furnace No. 9 is scheduled to shut down for economic curtailment at a
designated time for 15 minutes. Furnace No. 9 will be tripped automatically from P4's Delta V
control system at the appropriate scheduled curtailment time interval and will lock P4's
operator out from starting the furnace untilthe curtailment cycle is over.
4. When the designated time arrives to automatically trip Furnace No. 9 .
a. lf Furnace No. 9 is already out of service due to maintenance or overhaul, the furnace
will not resume operation if a curtailment cycle is active. When active curtailment cycle
is complete, the furnace operator shall be notified.
b. Failure by P4 to perform is subject to provisions in Section 7.1(b) and 7.1(c) of Exhibit A
to the Electric Service Agreement.
5. P4 remains curtailed for each 15 minute interval as long as a momentary "L" signal is received
by P4 on each consecutive signal interval untilthere is no change in signal state to "1" detected
in the next signalcycle. Furnace No.9 will be allowed to start at the beginning of the relevant 15
minute period. (Refer to 24 hour time interuol mop ond exomple motrix ottoched).
a. Restarting Furnace No. 9 will be manually initiated by the P4 Control Operator.
5. Until the 400-hour annual limit has been reached for Economic Curtailments as set forth in
Section 5.2 of the Electric Service Agreement, there is no limit to the frequenry of 15-minute
economic curtailments PacifiCorp can call upon, or to the number of successive l5-minute
curtailment periods.
7. Each economic curtailment event will be recorded by PacifiCorp's Pi historian database (or,
should Pi be replaced, a similar recording database used by PacifiCorp) and maintained by
PacifiCorp. At P4's request, PacifiCorp will provide a log of economic curtailments for the
requested prior period, not to exceed one year.
8. For testing and checkout purposes only, the Parties will agree to a limited operating mode
where PacifiCorp can send the curtailment signal to P4 for P4's acknowledgment but without
Furnace No. 9 being tripped as provided above.
Page 3 of 8
Earliest Signal
Start/Send by
PacifiCorp
Latest Signal Sent
for an lnterval by
PacifiCorp
Latest Signal
Received for an
lnterval by P4
For
Curtailment
Period
Hypothetical Example
23:27 min 23:37 min 23:37 min 30
seconds
00:00 Original signal on January
L,2022 at 00:00 willbe set
at "0" representing no
curtailment [online]
23:42 min 23:52 min 23:52 min 30
seconds
00:15 No signal change detected
lonlinel
23:57 min 00:07 min 00:07 min 30
seconds
00:30 No signal change detected
[onlinel
00:12 min 00:22 min 00:22 min 30
seconds
00:45 No signal change detected
lonlinel
00:27 min 00:37 min 00:37 min 30
seconds
01:00 Momentary Signal "1" is
sent at 00:30 min 25
seconds representing
curtail at 01:00 interval;
Upon receipt of the signal
P4 will send the feedback
signal till 00:37 min 30 sec.
00:42 min 00:52 min 00:52 min 30
seconds
01:15 Momentary Signal "1" is
sent at 00:45 min 25
seconds representing stay
curtailed for 01:15 interval.
Upon receipt of the
curtailment signal P4 sends
feedback signal till 00:52
min 30 sec.
00:57 min 01:07 min 01:07 min 30
seconds
01:30 No curtailment signal
received for this interval.
P4 can comes back online
at 01:30 interval
01:12 min 01:22 min 01:22 min 30
seconds
01:45 No signal change detected
lonlinel
01:27 min 01:37 min 01:37 min 30
seconds
02:00 No signal change detected
lonlinel
01:42 min 01:52 min 01:52 min 30
seconds
02:15 No signa! change detected
lonlinel
01:57 min 02:07 min 02:07 min 30
seconds
02:30 No signal change detected
lonlinel
02:12 min 02:22min 02:22 min 30
seconds
02:45 No signal change detected
Ionlinel
02:27 min 02:37 min 02:37 min 30
seconds
03:00 No signal change detected
lonlinel
Final 11-5-2021
24 HourTime lnterval Map and Example [tn MilitaryTimel
Page 4 of 8
Finalll-5-2021
Earliest Signal
Start/Send by
PacifiCorp
Latest Signal Sent
for an lnterval by
PacifiCorp
Latest Signa!
Received for an
lnterval by P4
For
Curtailment
Period
Hypothetical Example
02:42min 02:52 min 02:52 min 30
seconds
03:15 No signal change detected
lonlinel
02:57 min 03:07 min 03:07 min 30
seconds
03:30 No signal change detected
lonlinel
03:12 min 03:22 min 03:22 min 30
seconds
03:45 No signal change detected
lonlinel
03:27 min 03:37 min 03:37 min 30
seconds
04:00 No signal change detected
lonlinel
03:42 min 03:52 min 03:52 min 30
seconds
04:15 No signal change detected
lonlinel
03:57 min 04:07 min 04:07 min 30
seconds
04:30 No signal change detected
lonlinel
04:12 min 04:22 min 04:22 min 30
seconds
04:45 No signal change detected
lonlinel
04:27 min 04:37 min 04:37 min 30
seconds
05:00 No signal change detected
lonlinel
04:42 min 04:52 min 04:52 min 30
seconds
05:15 No signal change detected
lonlinel
04:57 min 05:07 min 05:07 min 30
seconds
05:30 No signal change detected
lonlinel
05:12 min 05:22 min 05:22 min 30
seconds
05:45 No signal change detected
lonlinel
05:27 min 05:37 min 05:37 min 30
seconds
05:00 No signal change detected
lonlinel
05:42 min 05:52 min 05:52 min 30
seconds
05:15 No signal change detected
lonlinel
05:57 min 05:07 min 06:07 min 30
seconds
05:30 No signal change detected
lonlinel
06:12 min 06:22 min 06:22 min 30
seconds
05:45 No signal change detected
lonlinel
06:27 min 06:37 min 06:37 min 30
seconds
07:00 No signal change detected
lonlinel
05:42 min 06:52 min 06:52 min 30
seconds
07:L5 No signal change detected
lonlinel
05:57 min 07:07 min 07:07 min 30
seconds
07:30 No signal change detected
lonlinel
07:12 min 07:22 min 07:22 min 30
seconds
07:45 No signal change detected
lonlinel
07:27 min 07:37 min 07:37 min 30
seconds
08:00 No signal change detected
[online]
07:42 min 07:52 min 07:52 min 30
seconds
08:15 No signal change detected
lonlinel
07:57 min 08:07 min 08:07 min 30
seconds
08:30 No signal change detected
lonlinel
Page 5 of 8
Final 11-5-2021
Earliest Signal
Start/Send by
PacifiCorp
Latest Signal Sent
for an lnterva! by
PacifiCorp
Latest Signal
Received for an
lnterval bv P4
For
Curtailment
Period
Hypothetical Example
08:12 min 08:22 min 08:22 min 30
seconds
08:45 No signal change detected
lonlinel
08:27 min 08:37 min 08:37 min 30
seconds
09:00 No signal change detected
lonlinel
08:42 min 08:52 min 08:52 min 30
seconds
09:15 No signal change detected
lonlinel
08:57 min 09:07 min 09:07 min 30
seconds
09:30 No signal change detected
lonlinel
09:12 min 09:22 min 09:22 min 30
seconds
09:45 No signal change detected
lonlinel
09:27 min 09:37 min 09:37 min 30
seconds
10:00 No signal change detected
lonlinel
09:42 min 09:52 min 09:52 min 30
seconds
10:15 No signal change detected
lonlinel
09:57 min 10:07 min 10:07 min 30
seconds
10:30 No signal change detected
lonlinel
10:12 min 10:22 min 10:22 min 30
seconds
10:45 No signal change detected
lonlinel
10:27 min 10:37 min 10:37 min 30
seconds
11:00 No signal change detected
lonlinel
10:42 min 10:52 min 10:52 min 30
seconds
11:15 No signal change detected
lonlinel
10:57 min 11:07 min 11:07 min 30
seconds
11:30 No signal change detected
lonlinel
11:12 min tL:22min 11:22 min 30
seconds
Lt:45 No signal change detected
lonlinel
11:27 min 11:37 min 11:37 min 30
seconds
12:00 No signal change detected
lonlinel
11:42 min 11:52 min 11:52 min 30
seconds
t2:15 No signal change detected
lonlinel
11:57 min 12:07 min 12:07 min 30
seconds
12:30 No signal change detected
lonlinel
12:12 min L2:22min L2:22min30
seconds
t2:45 No signal change detected
lonlinel
L2:27 min 12:37 min 12:37 min 30
seconds
13:00 No signal change detected
lonlinel
12:42 min 12:52 min 12:52 min 30
seconds
13:15 No signal change detected
lonlinel
12:57 min 13:07 min 13:07 min 30
seconds
13:30 No signal change detected
Ionlinel
13:12 min 13:22 min 13:22 min 30
seconds
13:45 No signal change detected
lonlinel
13:27 min 13:37 min 13:37 min 30
seconds
14:00 No signal change detected
lonlinel
Page 5 of 8
Final 11-5-2021
Earliest Signal
Start/Send by
PacifiCorp
Latest Signal Sent
for an lnterval by
PacifiCorp
Latest Signal
Received for an
lnterval bv P4
For
Curtailment
Period
Hypothetical Example
13:42 min 13:52 min 13:52 min 30
seconds
14:15 No signal change detected
lonlinel
13:57 min 14:07 min 14:07 min 30
seconds
14:30 No signal change detected
lonlinel
14:12 min L4:22min 14:22 min 30
seconds
14:45 No signal change detected
lonlinel
L4:27 min 14:37 min 14:37 min 30
seconds
15:00 No signal change detected
lonlinel
L4:42min 14:52 min 14:52 min 30
seconds
15:15 No signal change detected
lonlinel
14:57 min 15:07 min 15:07 min 30
seconds
15:30 No signal change detected
lonlinel
15:12 min 15:22 min 15:22 min 30
seconds
15:45 No signal change detected
lonlinel
15:27 min 15:37 min 15:37 min 30
seconds
16:00 No signal change detected
lonlinel
15:42 min 15:52 min 15:52 min 30
seconds
16:15 No signal change detected
lonlinel
15:57 min 16:07 min 16:07 min 30
seconds
15:30 No signal change detected
lonlinel
15:12 min 16:22 min 16:22 min 30
seconds
15:45 No signal change detected
lonlinel
15:27 min 16:37 min 16:37 min 30
seconds
17:00 No signal change detected
lonlinel
16:42 min 15:52 min 16:52 min 30
seconds
L7:L5 No signal change detected
lonlinel
15:57 min 17:07 min 17:07 min 30
seconds
17:30 No signal change detected
lonlinel
17:12 min L7:22min 17:22 min 30
seconds
L7:45 No signal change detected
lonlinel
L7:27 min L7:37 min 17:37 min 30
seconds
18:00 No signal change detected
lonlinel
L7:42min 17:52 min 17:52 min 30
seconds
18:15 No signal change detected
lonlinel
17:57 min 18:07 min 18:07 min 30
seconds
18:30 No signal change detected
lonlinel
18:12 min t8:22min 18:22 min 30
seconds
18:45 No signal change detected
lonlinel
18:27 min 18:37 min 18:37 min 30
seconds
19:00 No signal change detected
lonlinel
18:42 min 18:52 min 18:52 min 30
seconds
19:15 No signal change detected
lonlinel
18:57 min 19:07 min 19:07 min 30
seconds
19:30 No signal change detected
lonlinel
Page 7 of 8
Final 11-5-2021
Earliest Signal
Start/Send by
PacifiCorp
Latest Signal Sent
for an lnterval by
PacifiCorp
Latest Signal
Received for an
lnterval by P4
For
Curtailment
Period
Hypothetical Example
19:12 min 19:22 min 19:22 min 30
seconds
79:45 No signal change detected
lonlinel
t9:27 mln 19:37 min 19:37 min 30
seconds
20:00 No signal change detected
lonlinel
19:42 min 19:52 min 19:52 min 30
seconds
20:15 No signal change detected
lonlinel
19:57 min 20:07 min 20:07 min 30
seconds
20:30 No signal change detected
lonlinel
20:12 min 20:22 min 20:22 min 30
seconds
20:45 No signal change detected
lonlinel
20:27 min 20:37 min 20:37 min 30
seconds
21:00 No signal change detected
lonlinel
20:42min 20:52 min 20:52 min 30
seconds
21:15 No signal change detected
[onlinel
20:57 min 21:07 min 21:07 min 30
seconds
2l:30 No signal change detected
lonlinel
21:12 min 2L:22min 2t:22min3O
seconds
2L.45 No signal change detected
lonlinel
2L:27 min 21:37 min 21:37 min 30
seconds
22:N No signal change detected
lonlinel
2L:42min 21:52 min 21:52 min 30
seconds
22:L5 No signal change detected
lonlinel
21:57 min 22:07 min 22:07 min 30
seconds
22:30 No signal change detected
lonlinel
22:12 min 22:22min 22:22min3O
seconds
22:45 No signal change detected
lonlinel
22:27 min 22:37 min 22:37 min30
seconds
23:00 No signal change detected
lonlinel
22:42 min 22:52min 22:52 min3O
seconds
23:15 No signal change detected
lonlinel
22:57 min 23:07 min 23:07 min 30
seconds
23:30 No signal change detected
lonlinel
23:12 min 23:22min 23:22min3O
seconds
23:45 No signal change detected
lonlinel
Page 8 of 8