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Ormat Technologies, Inc. – IPO: ‘S-1/A’ on 9/28/04 – EX-10.3.13

On:  Tuesday, 9/28/04, at 9:30am ET   ·   Accession #:  950136-4-3123   ·   File #:  333-117527

Previous ‘S-1’:  ‘S-1’ on 7/21/04   ·   Next:  ‘S-1/A’ on 10/22/04   ·   Latest:  ‘S-1/A’ on 11/10/04   ·   2 References:   

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 9/28/04  Ormat Technologies, Inc.          S-1/A                 90:15M                                    Capital Systems 01/FA

Initial Public Offering (IPO):  Pre-Effective Amendment to Registration Statement (General Form)   —   Form S-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: S-1/A       Amendment 1 to Form S-1                             HTML   3.29M 
 2: EX-1.1      Form of                                             HTML    194K 
11: EX-10.1.10  Amendment # 1 to Loan Agreement                     HTML     27K 
12: EX-10.1.11  Capital Note                                        HTML     22K 
13: EX-10.1.12  Amendment No. 1 to Capital Note                     HTML     22K 
14: EX-10.1.13  Guarantee Fee Agreement                             HTML     22K 
15: EX-10.1.14  Reimbursement Agreement                             HTML     25K 
16: EX-10.1.15  Services Agreement                                  HTML     40K 
 3: EX-10.1.2   Amended and Restated Bridge Loan Agreement          HTML    100K 
 4: EX-10.1.3   Bank Hapoalim Credit Facility Agreement             HTML    386K 
 5: EX-10.1.4   Credit Agreement Dtd 12/31/02                       HTML    730K 
 6: EX-10.1.5   Credit Agreement Dtd 12/18/03                       HTML   1.09M 
 7: EX-10.1.6   Eximbank Credit Agreement                           HTML    557K 
 8: EX-10.1.7   Indenture                                           HTML    703K 
 9: EX-10.1.8   First Supplemental Indenture                        HTML     39K 
10: EX-10.1.9   Loan Agreement                                      HTML     38K 
84: EX-10.10    Indemnification Agreement                           HTML     46K 
17: EX-10.2.1   Purchase and Sale Agreement                         HTML    360K 
18: EX-10.3.1   Power Purchase Contract                             HTML    121K 
23: EX-10.3.11  Amended and Restated Power Purchase and Sale Agmt   HTML    237K 
24: EX-10.3.13  Power Purchase Contract                             HTML    197K 
25: EX-10.3.14  Amendment No. 1 Power Purchase Contract             HTML     64K 
26: EX-10.3.16  Power Purchase Contract Dtd 4/16/85                 HTML    206K 
27: EX-10.3.17  Amend 1 to Power Purchase Contract Dtd 10/25/85     HTML     46K 
28: EX-10.3.18  Amend 2 to Power Purchase Contract Dtd 12/20/89     HTML     25K 
29: EX-10.3.19  Interconnections Facilities Agreement               HTML     77K 
30: EX-10.3.20  Interconnection Facilities Agreement                HTML     35K 
31: EX-10.3.21  Interconnection Facilities Agreement                HTML     58K 
32: EX-10.3.22  Interconnection Agreement                           HTML     31K 
33: EX-10.3.23  Plant Connection Agreement                          HTML     58K 
34: EX-10.3.24  Plant Connection Agreement                          HTML     96K 
35: EX-10.3.25  Transmission Service Agreement                      HTML     87K 
36: EX-10.3.26  Plant Connection Agreement                          HTML     53K 
37: EX-10.3.27  Plant Connection Agreement                          HTML     61K 
38: EX-10.3.28  Plant Connection Agreement                          HTML     64K 
39: EX-10.3.29  Plant Connection Agreement                          HTML    186K 
19: EX-10.3.3   Power Purchase Contract                             HTML    111K 
40: EX-10.3.30  Plant Connection Agreement                          HTML    187K 
41: EX-10.3.31  Transmission Service Agreement                      HTML     81K 
42: EX-10.3.32  Transmission Service Agreement                      HTML     83K 
43: EX-10.3.33  Transmission Service Agreement                      HTML     85K 
44: EX-10.3.34  Transmission Service Agreement                      HTML    100K 
45: EX-10.3.35  Plant Amendment No. 1                               HTML     28K 
46: EX-10.3.39  Agreement Addressing Renewable Energy Pricing       HTML     74K 
47: EX-10.3.40  Amnd No.1 to Agrt Address Renewable Energy Pricing  HTML     58K 
48: EX-10.3.41  Agreement Addressing Renewable Energy Pricing       HTML     72K 
49: EX-10.3.42  Amend No. 1 to Agrnt Addr Renewable Energy Pricing  HTML     64K 
50: EX-10.3.43  Energy Services Agreement                           HTML     79K 
51: EX-10.3.44  Purchase Power Contract, Dated March 24, 1986       HTML     92K 
52: EX-10.3.45  Firm Capacity Amendment                             HTML     78K 
53: EX-10.3.46  Amendment to Purchase Power Contract                HTML     32K 
54: EX-10.3.47  Third Amendment to Purchase Power Contract          HTML     76K 
55: EX-10.3.48  Performance Agreement                               HTML    167K 
56: EX-10.3.49  Agreement to Design 69 Kv Transmission Lines        HTML     79K 
20: EX-10.3.5   Amendment #1 to Power Purchase and Sales Agreement  HTML     49K 
21: EX-10.3.6   Settlement Agreement                                HTML     37K 
22: EX-10.3.7   Power Purchase Contract Dtd 4/16/85                 HTML    155K 
57: EX-10.4.1   Ormesa Blm Geothermal Resources Lease               HTML    160K 
63: EX-10.4.12  Lease Agreement, Dated 3/17/64                      HTML     89K 
64: EX-10.4.13  Lease Agreement, Dated 2/16/64                      HTML     72K 
65: EX-10.4.18  Geothermal Lease Agreement, Dated 7/18/79           HTML     79K 
66: EX-10.4.19  Lease Agreement                                     HTML     82K 
58: EX-10.4.2   Ormesa Blm License for Electric Power Plant         HTML     42K 
67: EX-10.4.20  Lease Agreement, Dated 6/14/71                      HTML     56K 
68: EX-10.4.21  Lease Agreement                                     HTML     63K 
69: EX-10.4.23  Geothermal Lease Agreement                          HTML     55K 
70: EX-10.4.24  Geothermal Lease Agreement, Dated 8/31/83           HTML    128K 
71: EX-10.4.26  Geothermal Resources Lease - Guisti                 HTML     55K 
72: EX-10.4.27  Amendment to Geothermal Lease                       HTML     27K 
73: EX-10.4.28  Second Amendment to Geothermal Lease                HTML     39K 
74: EX-10.4.29  Geothermal Resources Sublease                       HTML    144K 
59: EX-10.4.3   Geothermal Resources Mining Lease, Dated 2/20/81    HTML    126K 
75: EX-10.4.30  Klp Lease                                           HTML    265K 
76: EX-10.4.31  Klp Lease Amendment No. 1                           HTML    341K 
77: EX-10.4.32  Second Amendment to Klplease                        HTML     25K 
60: EX-10.4.4   Geothermal Lease Agreement, Dated 10/20/75          HTML     55K 
61: EX-10.4.5   Geothermal Lease Agreement                          HTML     78K 
62: EX-10.4.6   Geothermal Resources Lease, Dated 11/18/83          HTML     77K 
78: EX-10.5.1   Engineering, Procurement and Construction Contract  HTML    434K 
79: EX-10.5.3   Engineering, Procurement and Construction Contract  HTML   1.00M 
80: EX-10.5.4   Patent License Agreement                            HTML    144K 
81: EX-10.7     Executive Employment Agreement of Lucien Bronicki   HTML     70K 
82: EX-10.8     Exec Employment Agreement of Yehudit Bronicki       HTML     75K 
83: EX-10.9     Executive Employment Agreement of Yoram Bronicki    HTML     82K 
85: EX-23.1     Consent of Independent Accountants                  HTML     22K 
86: EX-23.3     Consent of Dani Falk                                HTML     21K 
87: EX-23.4     Consent of Edward Muller                            HTML     21K 
88: EX-23.5     Consent of Lester P. Silverman                      HTML     21K 
89: EX-23.6     Consent of Jacob Worenklein                         HTML     21K 
90: EX-99.3     Material Terms Deviations                           HTML     21K 


EX-10.3.13   —   Power Purchase Contract

This exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]

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Exhibit 10.3.13 SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE SCE STANDARD CONTRACT LONG TERM POWER PURCHASE POWER PURCHASE CONTRACT BETWEEN SOUTHERN CALIFORNIA EDISON COMPANY AND MAMMOTH PACIFIC (CASA DIABLO GEOTHERMAL II) 12 MW NAME PLATE NEW FACILITY GII DOCUMENT NO.: 2433H EFFECTIVE DATE: SEPTEMBER 7, 1983 REVISED: MAY 4, 1984
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE Table of Contents ----------------- SECTION TITLE PAGE ------- ----- ---- 1 PROJECT SUMMARY 1 GENERAL TERMS & CONDITIONS 2 DEFINITIONS 6 3 TERM 11 4 GENERATING FACILITY 12 5 OPERATING OPTIONS 20 6 INTERCONNECTION FACILITIES 22 7 ELECTRICAL LINES AND ASSOCIATED EASEMENTS 23 8 METERING 24 9 POWER PURCHASE PROVISIONS 26 10 PAYMENT AND BILLING PROVISIONS 42 11 TAXES 46 12 TERMINATION 47 13 LIABILITY 47 14 INSURANCE 49 15 UNCONTROLLABLE FORCES 51 16 NONDEDICATION OF FACILITIES 53 17 PRIORITY OF DOCUMENTS 53 18 NOTICES AND CORRESPONDENCE 53 ii
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 19 PREVIOUS COMMUNICATIONS 54 20 NONWAIVER 54 SUCCESSORS AND ASSIGNS 55 22 EFFECT OF SECTION READINGS 55 23 GOVERNING LAW 55 24 MULTIPLE ORIGINALS 56 SIGNATURES iii
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 1. PROJECT SUMMARY --------------- This Contract is entered into between Southern California Edison Company ("Edison") and Mammoth Pacific ("Seller"). Seller is willing to construct, own, and operate a Qualifying Facility and sell electric power to Edison and Edison is willing to purchase electric power delivered by Seller to Edison at the Point of Interconnection pursuant to the terms and conditions set forth as follows: 1.1 All notices shall be sent to Seller at the following address: Mammoth Pacific 6055 East Washington Boulevard Commerce, CA 90040 1.2 Seller's Generating Facility: a. Nameplate Rating: 12,000 kW. b. Location: Casa Diablo (Mammoth Lakes), California c. Type (Check One): _____ Cogeneration Facility [X] Small Power Production Facility d. Delivery of power to Edison at a nominal 33,000 volts. e. Seller shall commence construction of the Generating Facility by April l986. 1.3 Edison Customer Service District: Bishop District 1
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 374 Lagoon Street Bishop, CA 93514 1.4 Location of Edison Operating Switching Center: Bishop Hydro Division Control Substation, Route 1 Bishop, CA 93514 1.5 Contract Capacity: 0 kW 1.5.1 Estimated as-available capacity: 9,100 kW. 1.6 Expected annual production: 48,000,000 kWh. 1.7 Expected Firm Operation for each generating unit(s): February 1987 1.8 Contract Term: 30 years 1.9 Operating Options pursuant to Section 5: (Check One) [N/A] Operating Option I. Entire Generator output dedicated to Edison. No electric service or standby service required. [N/A] Operating Option II. Entire Generator output dedicated to Edison with separate electric service required. a. Electric service Tariff Schedule No. ____ pursuant to Section 10.2. b. Contract demand: ____ kW. [X] Operating Option III. Excess generator output dedicated to Edison with Seller serving own load. a. Electric service Tariff Schedule No. TOU--8 pursuant to Section 10.2. 2
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE b. Contract demand: 1,900 kW. c. Standby Demand: 1,900 kW pursuant to Section 10.2. d. Maximum electrical requirements expected: 1,900 kW. e. Standby electric service Tariff Schedule No. SCG-1 pursuant to section 10.2. f. Minimum monthly charge for standby services: [N/A]. 1.10 Interconnection Facilities Agreement pursuant to Section 6 shall be: (Check One) [N/A] - Added Facilities Basis (Appendix A.l) [N/A] - Capital Contribution Basis (Appendix A.2) [X] - Seller Owned and Operated Basis (Appendix A.3) 1.11 The Capacity Payment Option selected by Seller pursuant to Section 9.1 shall be: (Check One) [X] Option A - As-available capacity based upon: [N/A] Standard Offer No. 1 Capacity Payment Schedule, or [X] Forecast of Annual As-Available Capacity Payment Schedule. The as-available capacity price (first year): 194/kW--yr. (Appendix B) [X] Option B - Firm Capacity (check one) 3
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE [N/A] Standard Offer No. 2 Capacity Payment Schedule in effect at time of Contract execution. [N/A] Standard Offer No. 2 Capacity Payment Schedule in effect at time of Firm Operation of first generating unit. Contract Capacity Price: $__/kW-yr. (Firm Capacity). 1.12 The Energy Payment Option selected by Seller pursuant to Section 9.2 shall be: (Check One) [X] Option 1 - Forecast of Annual Marginal Cost of Energy in effect at date of execution of this Contract. (Appendix C) [N/A] Option 2 - Levelized Forecast of Marginal Cost of Energy in effect at date of execution of this Contract. Levelized Forecast for the expected date of Firm Operation is ___(cent)/kWh. If Seller's Generating Facility is an oil/natural gas fueled cogenerator, Seller may not select Option 2. For the energy payment refund pursuant to Section 9.5 under Option 2. Edison's Incremental Cost of Capital is ____%. Seller may change once between Options 1 and 2, provided Seller delivers written notice of such change at least 90 days prior to the date of Firm Operation. For Option 1 or 2, Seller elects to receive the following percentages in 20% increments, the total of which shall equal 100%: 4
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE [100] Percent of Forecast of Marginal Cost of Energy (Annual or Levelized), not to exceed 20% of the annual forecast for oil/natural gas fueled cogenerators, and [0] Percent of Edison's published avoided cost of energy based on Edison's full avoided operating costs as updated periodically and accepted by the Commission. [N/A] Option 3 - Incremental Energy Rate. Seller may select: [N/A] Forecast of Incremental Energy Rate in effect at date of execution of this Contract (Appendix D), or [NA] A range in increments of 100 Btu/kWh above and below the forecast of incremental energy rates for each year during the First Period of the Contract Term as follows: Year Range Year Range Year Range ------- -------- ------- --------- ------- ------ ------- -------- ------- --------- ------- ------ ------- -------- ------- --------- ------- ------ ------- -------- ------- --------- ------- ------ 1.13 Metering Location (Check one) Seller elects metering location pursuant to Section 8 as follows: [X] Edison's side of the Interconnection Facilities 5
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE [N/A] Seller's aide of the Interconnection Facilities. Loss compensation factor is equal to _____, pursuant to Section 8.3. CENTRAL TERMS & CONDITIONS 2. DEFINITIONS When used with initial capitalizations, whether in the singular or in the plural, the following terms shall have the following meanings: 2.1 Adjusted Capacity Price: The $/kW-yr capacity purchase price based on the Capacity Payment Schedule in effect at time of Contract execution for the time period beginning on the date of Firm Operation for the first generating unit and ending on the date of termination or reduction of Contract Capacity under Capacity Payment Option B. 2.2 Appendix A.1: Interconnection Facilities Agreement -- Added Facilities Basis 2.3 Appendix A.2: Interconnection Facilities Agreement -- Capital Contribution Basis 2.4 Appendix A.3: Interconnection Facilities Agreement -- Seller Owned and Operated Basis 2.5 Appendix B: Forecast of Annual As Available Capacity Payment Schedule 2.6 Appendix C: Forecast of Annual Marginal Cost of Energy 2.7 Appendix D: Forecast of Incremental Energy Rates. 2.8 Capacity Payment Schedule(s): Published capacity payment schedule(s) as authorized by the Commission for as-available or firm capacity. 6
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 2.9 Commission: The Public Utilities Commission of the State of California. 2.10 Contract: This document and Appendices, as amended from time to time. 2.11 Contract Capacity: The electric power producing capability of the Generating Facility which is committed to Edison. 2.12 Contract Capacity Price: The capacity purchase price from the Capacity Payment Schedule approved by the Commission for Capacity Payment Option B. 2.13 Contract Term: Period in years commencing with date of Firm Operation for the first generating unit(s) during which Edison shall purchase electric power from Seller. 2.14 Current Capacity Price: The $/kW-yr capacity price provided in the Capacity Payment Schedule determined by the year of termination or reduction of Contract Capacity and the number of years from such termination or reduction to the expiration of the Contract Term for Capacity Payment Option B. 2.15 Edison: The Southern California Edison Company. 2.16 Edison Electric System Integrity: The state of operation of Edison's electric system in a manner which is deemed to minimize the risk of injury to persons and/or property and enables Edison to provide adequate and reliable electric service to its customers. 2.17 Emergency: A condition or situation which in Edison's sole judgment affects Edison Electric System Integrity. 7
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 2.18 Energy: Kilowatthours generated by the Generating Facility which are purchased by Edison at the Point of Interconnection. 2.19 Firm Operation: The date agreed on by the Parties on which each generating unit(s) of the Generating Facility is determined to be a reliable source of generation and on which such unit can be reasonably expected to operate continuously at its effective rating (expressed in kW). 2.20 First Period: The period of the Contract Term specified in Section 3.1. 2.21 Forced Outage: Any outage other than a scheduled outage of the Generating Facility that fully or partially curtails its electrical output. 2.22 Generating Facility: All of Seller's generators, together with all protective and other associated equipment and improvements, necessary to produce electrical power at Seller's Facility excluding associated land, land rights, and interests in land. 2.23 Generator: The generator(s) and associated prime mover(s), which are a part of the Generating Facility. 2.24 Interconnection Facilities: Those protection, metering, electric line(s), and other facilities required in Edison's sole judgment to permit an electrical interface between Edison's system and the Generating Facility in accordance with Edison's Tariff Rule No. 21 titled Cogeneration and Small Power Production Interconnection Standards filed with the Commission. 8
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 2.25 Interconnection Facilities Agreement: That document which is specified in Section 1.10 and is attached hereto. 2.26 KVAR: Reactive kilovolt-ampere, a unit of measure of reactive power. 2.27 Operate: To provide the engineering, purchasing, repair, supervision, training, inspection, testing, protection, operation, use, management, replacement. retirement, reconstruction, and maintenance of and for the Generating Facility in accordance with applicable California utility standards and good engineering practices. 2.28 Operating Representatives: Individual(s) appointed by each Party for the purpose of securing effective cooperation and interchange of information between the Parties in connection with administration and technical matters related to this Contract. 2.29 Parties: Edison and Seller. 2.30 Party: Edison or Seller. 2.31 Peak Months: Those months which the Edison annual system peak demand could occur. Currently, but subject to change with notice, the peak months for the Edison system are June, July, August, and September. 2.32 Point of Interconnection: The point where the transfer of electrical energy between Edison and Seller takes place. 2.33 Project: The Generating Facility and Interconnection Facilities required to permit operation of Seller's Generator in parallel with Edison's electric system. 9
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 2.34 Protective Apparatus: That equipment and apparatus installed by Seller and/or Edison pursuant to Section 4.2. 2.35 Qualifying Facility: Cogeneration or Small Power Production Facility which meets the criteria as defined in Title 18, Code of Federal Regulations, Section 292.201 through 292.207. 2.36 Second Period: The period of the Contract Term specified in Section 3.2. 2.37 Seller: The Party identified in Section 1.0. 2.38 Seller's Facility: The premises and equipment of Seller located as specified in Section 1.2. 2.39 Small Power Production Facility: The facilities and equipment which use biomass, waste, or renewable resources, including wind, solar, geothermal, and water, to produce electrical energy as defined in Title 18, code of Federal Regulations, Section 292.201 through 292.207. 2.40 Standby Demand: Seller's electrical load requirement that Edison is expected to serve when Seller's Generating Facility is not available. 2.41 Summer Period: Defined in Edison's Tariff Schedule No. TOU-8 as now in effect or as may hereafter be authorized by the Commission. 2.42 Tariff Schedule No. TOU-8: Edison's time-of-use energy tariff for electric service exceeding 500 kW, as now in effect or as may hereafter be authorized by the Commission. 10
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 2.43 Uncontrollable Forces: Any occurrence beyond the control of a Party which causes that Party to be unable to perform its obligations hereunder and which a Party has been unable to overcome by the exercise of due diligence, including but not limited to flood, drought, earthquake, storm, fire, pestilence, lightning and other natural catastrophes, epidemic, war, riot, civil disturbance or disobedience, strike, labor dispute, action or inaction of legislative, judicial, or regulatory agencies, or other proper authority, which may conflict with the terms of this Contract, or failure, threat of failure or sabotage of facilities which have been maintained in accordance with good engineering and operating practices in California. 2.44 Winter Period: Defined in Edison's Tariff Schedule No. TOU-8 as now in effect or as may hereafter be authorized by the Commission. 3. TERM This Contract shall be effective upon execution by the Parties and shall remain effective until either Party gives 90 days prior written notice of termination to the other Party, except that such notice of termination shall not be effective to terminate this Contract prior to expiration of the Contract Term specified in Section 1.8. 3.1 The First Period of the Contract Term shall commence upon date of Firm Operation but not later than five years from the date of execution of this Contract. 11
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE a. If the Contract Term specified in Section 1.8 is 15 years, the First Period of the Contract Term shall be for five years. b. If the Contract Term specified in Section 1.8 is 20, 25, or 30 years, the First Period of the Contract Term shall be for 10 years. 3.2 The Second Period of the Contract Term shall commence upon expiration of the First Period and shall continue for the remainder of the Contract Term. 4. GENERATING FACILITY 4.1 Ownership The Generating Facility shall be owned by Seller. 4.2 Design 4.2.1 Seller, at no cost to Edison, shall: a. Design the Generating Facility. b. Acquire all permits and other approvals necessary for the construction, operation, and maintenance of the Generating Facility. c. Complete all environmental impact studies necessary for the construction, operation, and maintenance of the Generating Facility. d. Furnish and install the relays, meters, power circuit breakers, synchronizer, and other control and Protective Apparatus as shall 12
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE be agreed to by the Parties as being necessary for proper and safe operation of the Project in parallel with Edison's electric system. 4.2.2 Edison shall have the right to: a. Review the design of the Generating Facility's electrical system and the Seller's Interconnection Facilities. Such review may include, but not be limited to, the Generator, governor, excitation system, synchronizing equipment, protective relays, and neutral grounding. The Seller shall be notified in writing of the outcome of the Edison review within 30 days of the receipt of all specifications for both the Generating Facility and the Interconnection Facilities. Any flaws perceived by Edison in the design shall be described in Edison's written notice. b. Request modifications to the design of the Generating Facility's electrical system and the Seller's Interconnection Facilities. Such modifications shall be required if necessary to maintain Edison Electric System Integrity when in parallel with the Edison electric system. 4.2.3 If Seller's Generating Facility includes an induction-type generator(s), Seller shall provide individual power factor correction capacitors for each such generator. Such capacitors shall be switched on and off simultaneously with each of the associated induction-type 13
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE generator(s) of the Generating Facility. The KVAR rating of such capacitors shall be the highest standard value which will not exceed such generators no-load KVAR requirement. Seller shall not install power factor correction in excess of that required by this Section unless agreed to in writing by the Parties. 4.3 Construction Edison shall have the right to review, consult with, and make recommendations regarding Seller's construction schedule and to monitor the construction and start-up of the Project. Seller shall notify Edison, at least one year prior to Firm Operation, of changes in Seller's Construction Schedule which may affect the date of Firm operation. 4.4 Operation 4.4.1 The Generating Facility and Seller's Protective Apparatus shall be operated and maintained in accordance with applicable California utility industry standards and good engineering practices with respect to synchronizing, voltage and reactive power control. Edison shall have the right to monitor operation of the Project and may require changes in Seller's method of operation if such changes are necessary, in Edison's sole judgment, to maintain Edison Electric System Integrity. 14
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 4.4.2 Seller shall notify in writing Edison's Operating Representative at least 14 days prior to: a. the initial testing of Seller's Protective Apparatus; and b. the initial parallel operation of Seller's Generators with Edison's electrical system. Edison shall have the right to have a representative present at each event. 4.4.3 Edison shall have the right to require Seller to disconnect the Generator from the Edison electric system or to reduce the electrical output from the Generator into the Edison electric systems whenever Edison determines, in its sole judgment, that such a disconnection is necessary to facilitate maintenance of Edison's facilities, or to maintain Edison Electric System Integrity. If Edison requires Seller to disconnect the Generator from the Edison electric system pursuant to this section 4.4.3, Seller shall have the right to continue to serve its total electrical requirements provided Seller has elected Operating Option III. Each Party shall endeavor to correct, within a reasonable period, the condition on its system which necessitates the disconnection or the reduction of electrical output. The duration of the disconnection or the reduction in electrical output shall be limited to the period of time such a condition exists. 15
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 4.4.4 the Generating Facility shall be operated with all of Seller's Protective Apparatus in service whenever the Generator is connected to or is operated in parallel with the Edison electric system. Any deviation for brief periods of emergency or maintenance shall only be by agreement of the Parties. 4.4.5 Each Party shall keep the other Party's Operating Representative informed as to the operating schedule of their respective facilities affecting each other's operation hereunder, including any reduction in Contract Capacity availability. In addition, Seller shall provide Edison with reasonable advance notice regarding its scheduled outages including any reduction in Contract Capacity availability. Reasonable advance notice is as follows: SCHEDULED OUTAGE EXPECTED DURATION ADVANCE NOTICE TO EDISON Less then one day 24 Hours One day or more (except major overhauls) 1 Week Major overhaul 6 Months 4.4.6 Notification by each Party's Operating Representative of outage date and duration should be directed to the other Party's Operating Representative by telephone. 4.4.7 Seller shell not schedule major overhauls during Peak Months. 16
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4.4.8 Seller shall maintain an operating log at Seller's Facility with records of: real and reactive power production; changes in operating status, outages, Protective Apparatus operations; and any unusual conditions found during inspections. Changes in setting shall also be logged for Generators which are "block-loaded" to a specific kW capacity. In addition, Seller shall maintain records applicable to the Generating Facility, including the electrical characteristics of the Generator and settings or adjustments of the Generator control equipment and protective devices. Information maintained pursuant to this Section 4.4.8 shall be provided to Edison, within 30 days of Edison's request. 4.4.9 If, at any time, Edison doubts the integrity of any of Seller's Protective Apparatus and believes that such loss of integrity would impair the Edison Electric System Integrity, Seller shall demonstrate to Edison's satisfaction, the correct calibration and operation of the equipment in question. 4.4.10 Seller shall test all protective devices specified in Section 4.2 with qualified Edison personnel present at intervals not to exceed four years. 4.4.11 Seller shall, to the extent possible, provide reactive power for its own requirements, and where applicable, the reactive power losses of 17
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE interfacing transformers. Seller shall not deliver excess reactive power to Edison unless otherwise agreed upon between the Parties. 4.4.12 The Seller warrants that the Generating Facility meets the requirements of a Qualifying Facility as of the effective date of this Contract and continuing through the Contract Term. 4.4.13 The Seller warrants that the Generating Facility shall at all times conform to all applicable laws and regulations. Seller shall obtain and maintain any governmental authorizations and permits for the continued operation of the Generating Facility. If at any time Seller does not hold such authorizations and permits, Seller agrees to reimburse Edison for any loss which Edison incurs as a result of the Seller's failure to maintain governmental authorization and permits. 4.4.14 At Edison's request, Seller shall make all reasonable effort to deliver power at an average rate of delivery at least equal to the Contract Capacity during periods at Emergency. In the event that the Seller has previously scheduled an outage coincident with an Emergency, Seller shall make all reasonable efforts to reschedule the outage. The notification periods listed in Section 4.4.5 shall be waived by Edison if Seller reschedules the outage. 4.4.15 Seller shall demonstrate the ability to provide Edison the specified Contract Capacity within 30 days of the date of Firm Operation. 18
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE Thereafter, at least once per year at Edison's request, Seller shall demonstrate the ability to provide Contract Capacity for a reasonable period of time as required by Edison. Seller's demonstration of Contract Capacity shall be at Seller's expense and conducted at a time and pursuant to procedures mutually agreed upon by the Parties. If Seller fails to demonstrate the ability to provide Contract Capacity, the Contract Capacity shall be reduced by agreement of the Parties pursuant to Section 9.1.2.5. 4.5 Maintenance 4.5.1 Seller shall maintain the Generating Facility in accordance with applicable California utility industry standards and good engineering and operating practices. Edison shall have the right to monitor such maintenance of the Generating Facility. Seller shall maintain and deliver a maintenance record of the Generating Facility to Edison's Operating Representatives upon request. 4.5.2 Seller shall make a reasonable effort to schedule routine maintenance during Off-Peak Months. Outages for scheduled maintenance shall not exceed a total of 30 peak hours for the Peak Months. 4.5.3 The allowance for scheduled maintenance is as follows: a. Outage periods for scheduled maintenance shall not exceed 840 hours (35 days) in any 12-month period. This allowance may be 19
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE used in increments of an hour or longer on a consecutive or nonconsecutive basis. b. Seller may accumulate unused maintenance hours on a year-to-year basis up to a maximum of 1,080 hours (45 days). This accrued time must be used consecutively and only for major overhauls. 4.6 Any review by Edison of the design, construction, operation, or maintenance of the Project is solely for the information of Edison. By making such review, Edison makes no representation as to the economic and technical feasibility, operational capability, or reliability of the Project. Seller shall in no way represent to any third party that any such review by Edison of the Project, including, but not limited to, any review of the design, construction, operation, or maintenance of the Project by Edison, is a representation by Edison as to the economic and technical feasibility, operational capability, or reliability of said facilities. Seller is solely responsible for economic and technical feasibility, operational capability, and reliability thereof. 5. OPERATING OPTIONS 5.1 Seller shall elect in Section 1.9 to Operate its Generating Facility in parallel with Edison's electric system pursuant to one of the following options: a. Operating Option I: Seller dedicates the entire Generator output to Edison with no electrical service required from Edison. 20
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE b. Operating Option II: Seller dedicates the entire Generator output to Edison with electrical service required from Edison. c. Operating Option III: Seller dedicates to Edison only that portion of the Generator output in excess of Seller's electrical service requirements. As much as practicable, Seller intends to serve its electrical requirements from the Generator output and will require electrical standby from Edison as designated in Section 1.9. 5.2 After expiration of the First Period of the Contract Term, Seller may change the Operating Option, but not more than once per year upon at least 90 days prior written notice to Edison. A reduction in Contract Capacity as a result of a change in operating options shall be subject to Section 9.1.2.5. Edison shall not be required to remove or reserve capacity of Interconnection Facilities made idle by a change in operating options. Edison may dedicate any such idle Interconnection Facilities at any time to serve other customers or to interconnect with other electric power sources. Edison shall process requests for changes of operating option in the chronological order received. 5.2.1. When the Seller wishes to reserve Interconnection Facilities paid for by the Seller but idled by a change in operation option, Edison shall impose a special facilities charge related to the operation and maintenance of the Interconnection Facility. When the Seller no longer needs said facilities for which it has paid, the Seller shall 21
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE receive credit for the net salvage value of the Interconnection Facilities dedicated to Edison's use. If Edison is able to make use of these facilities to serve other customers, the Seller shall receive the fair market value of the facilities determined as of the date the Seller either decides no longer to use said facilities or fails to pay the required maintenance fee. 6. INTERCONNECTION FACILITIES 6.1 The Parties shall execute an Interconnection Facilities Agreement selected by Seller in Section 1.10, covering the design, installation, operation and maintenance of the Interconnection Facilities required in Edison's sole judgment, to permit an electrical interface between the Parties pursuant to Edison's Tariff Rule No. 21. 6.2 The cost for the Interconnection Facilities set forth in the appendices specified in Section 1.10, are estimates only for Seller's information and will be adjusted to reflect recorded costs after installation is complete; except that, upon Seller's written request to Edison, Edison shall provide a binding estimate which shall be the basis for the Interconnection Facilities cost in the Interconnection Facilities Agreement executed by the Parties. 6.3 The nature of the Interconnection Facilities and the Point of Interconnection shall be set forth either by equipment lists or appropriate one-line diagrams and shall be attached to the appropriate appendix specified in Section 1.10. 22
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 6.4 The design, installation, operation, maintenance, and modifications of the Interconnection Facilities shall be at Seller's expense. 6.5 Seller shall not commence parallel operation of the Generating Facility until written approval for operation of the Interconnection Facilities has been received from Edison. The Seller shall notify Edison at least forty-five days prior to the initial energizing of the Point of Interconnection. Edison shall have the right to inspect the Interconnection Facilities within thirty days of receipt of such notice. It the facilities do not pass Edison's inspection, Edison shall provide in writing the reasons for this failure within five days of the inspection. 6.6 Seller, at no cost to Edison, shall acquire all permits and approvals and complete all environmental impact studies necessary for the design, installation, operation, and maintenance of the Interconnection Facilities. 7. ELECTRIC LINES AND ASSOCIATED EASEMENTS 7.1 Edison shall, as it deems necessary or desirable, build electric lines, facilities and other equipment, both overhead and underground, on and off Seller's Facility, for the purpose of effecting the agreements contained in this Contract. The physical location of such electric lines, facilities and other equipment on Seller's Facility shall be determined by agreement of the Parties. 23
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 7.2 Seller shall reimburse Edison for the cost of acquiring property rights off Sellers's Facility required by Edison to meet its obligations under this Contract. 7.3 Seller shall grant to Edison, without cost to Edison, and by an instrument of conveyance, acceptable to Edison, rights of way, easements and other property interests necessary to construct, reconstruct, use, maintain, alter, add to, enlarge, repair, replace, inspect and remove, at any time, the electric lines, facilities or other equipment, both overhead and underground, which are required by Edison to effect the agreements contained in the Contract. Seller shall also provide the rights of ingress and egress at all reasonable times necessary for Edison to perform the activities contemplated in the Contract. 7.4 The electric lines, facilities, or other equipment referred to in this Section 7 installed by Edison on or off Seller's Facility shall be and remain the property of Edison. 7.5 Edison shall have no obligation to Seller for any delay or cancellation due to inability to acquire a satisfactory right of way, easements, or other property interests. 8. METERING 8.1 All meters and equipment used for the measurement of electric power for determining Edison's payments to Seller pursuant to this Contract shall be 24
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE provided, owned, and maintained by Edison at Seller's expense in accordance with Edison's Tariff Rule No. 21. 8.2 All meters and equipment used for billing Seller for electric service provided to Seller by Edison under Operating Options II or III shall be provided, owned, and maintained by Edison at Edison's expense in accordance with Edison's Tariff Rule No. 16. 8.3 The meters and equipment used for measuring the Energy sold to Edison shall be located on the side of the Interconnection Facilities as specified by Seller in Section 1.13. If the metering equipment is located on Seller's side of the Interconnection Facilities, then a loss compensation factor agreed upon by the Parties shall be applied. At the written request of the Seller, and at Seller's sole expense, Edison shall measure actual transformer losses. If the actual measured value differs from the agreed upon loss compensation factor, the actual value shall be applied prospectively. If the meters are placed on Edison's side of the Interconnection Facilities, service shall be provided at the available transformer high-side voltage. 8.4 For purposes of monitoring the Generator operation and the determination of standby charges, Edison shall have the right to require, at Seller's expense, the installation of generation metering. Edison may also require the installation of telemetering equipment at Seller's expense for Generating Facilities equal to 25
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE or greater than 10 MW. Edison may require the installation of telemetering equipment at Edison's expense for Generating Facilities less than 10 MW. 8.5 Edison's meters shall be sealed and the seals shall be broken only when the meters are to be inspected, tested, or adjusted by Edison. Seller shall be given reasonable notice of testing and have the right to have its Operating Representative present on such occasions. 8.6 Edison's meters installed pursuant to this Contract shall be tested by Edison, at Edison's expense, at least once each year and at any reasonable time upon request by either Party, at the requesting Party's expense. If Seller makes such request, Seller shall reimburse said expense to Edison within thirty days after presentation of a bill therefor. 8.7 Metering equipment found to be inaccurate shall be repaired, adjusted, or replaced by Edison such that the metering accuracy of said equipment shall be within two percent. If metering equipment inaccuracy exceeds two percent, the correct amount of Energy and Contract Capacity delivered during the period of said inaccuracy shall be estimated by Edison and agreed upon by the Parties. 9. POWER PURCHASE PROVISIONS Prior to the date of Firm Operation, Seller shall be paid for Energy only pursuant to Edison's published avoided cost of energy based on Edison's full avoided operating cost as periodically updated and accepted by the Commission. If at any time Energy 26
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE can be delivered to Edison and Seller is contesting the claimed jurisdiction of any entity which has not issued a license or other approval for the Project, Seller, in its sole discretion and risk, may deliver Energy to Edison and for any Energy purchased by Edison, Seller shall receive payment from Edison for (i) Energy pursuant to this Section, and (ii) as-available capacity based on a capacity price from the Standard Offer No. 1 Capacity Payment Schedule as approved by the Commission. Unless and until all required licenses and approvals have been obtained, Seller may discontinue deliveries at any time. 9.1 Capacity Payments Seller shall sell to Edison and Edison shall purchase from Seller capacity pursuant to the Capacity Payment Option selected by Seller in Section 1.11. The Capacity Payment Schedules will be based on Edison's full avoided operating costs as approved by the Commission throughout the life of this Contract. Data used to derive Edison's full avoided costs will be made available to the Seller, to the extent specified by Seller upon request. 9.1.1 Capacity Payment Option A -- As Available Capacity. If Seller selects Capacity Payment Option A, Seller shall be paid a monthly capacity payment calculated pursuant to the following formula: MONTHLY CAPACITY PAYMENT = (A x D)+(B x D)+(C x D) 27
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE Where A = kWh purchased by Edison during on-peak periods defined in Edison's Tariff Schedule No. TOU-8. B = kWh purchased by Edison during mid-peak periods defined in Edison's Tariff Schedule No. TOU-8. C = kWh purchased by Edison during off-peak periods defined in Edison's Tariff Schedule No. TOU-8. D = The appropriate time differentiated capacity price from either the Standard Offer No. 1 Capacity Payment Schedule or Forecast of Annual As-Available Capacity Payment Schedule as specified by Seller in Section 1.11. 9.1.1.1 If Seller specifies the Standard Offer No. 1 Capacity Payment Schedule in Section 1.11, then the formula set forth in Section 9.1.1 shall be computed with D equal to the appropriate time differentiated capacity price from the Standard Offer No. 1 Capacity Payment Schedule for the Contract Term. 9.1.1.2 If Seller specifies the Forecast of Annual As-Available Capacity Payment Schedule in Section 1.11, the formula set forth in Section 9.1.1 shall be computed as follows: 28
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE a. During the First period of the Contract Term, D shall equal the appropriate time differentiated capacity price from the Forecast of Annual As-Available Capacity Payment Schedule. b. During the Second Period of the Contract Term, the formula shall be computed with D equal to the appropriate time differentiated capacity price from Standard Offer No. 1 Capacity Payment Schedule, but not less than the greater of (i) the appropriate time differentiated capacity price from the Forecast of Annual As-Available Capacity Payment Schedule for the last year of the First Period, or (ii) the appropriate time differentiated capacity price from the Standard Offer No. 1 Capacity Payment Schedule for the first year of the Second Period. 9.1.2 Capacity payment Option B -- Firm Capacity Purchase If Seller selects Capacity Payment Option B, Seller shall provide to Edison for the Contract Term the Contract Capacity specified in Section 1.5, or as adjusted pursuant to Section 9.1.2.6, and Seller shall be paid as follows: 29
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 9.1.2.1 If Seller meets the performance requirements set forth in Section 9.1.2.2, Seller shall be paid a Monthly Capacity Payment, beginning from the date of Firm Operation equal to the sum of the on-peak, mid-peak, and off-peak Capacity Period Payments. Each capacity period payment is calculated pursuant to the following formula: MONTHLY PERIOD CAPACITY PAYMENT = A x B x C x D Where A = Contract Capacity Price specified in Section 1.11 based on the Standard Offer No. 2 Capacity Payment Schedule as approved by the Commission and in effect on the date of the execution of this Contract. B = Conversion factors to convert annual capacity prices to monthly payments by time of delivery as specified in Standard Offer No. 2 Capacity Payment Schedule and subject to periodic modifications as approved by the Commission. C = Contract Capacity specified in Section 1.5. D = Period Performance Factor, not to exceed 1.0, calculated as follows: Period kWh purchased by Edison limited by the level of Contract Capacity ------------------------------------------ 30
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0.8 x Contract Capacity x (Period Hours minus Maintenance Hours Allowed in Section 4.5.) 9.1.2.2 Performance Requirements to receive the Monthly Capacity Payment in Section 9.1.2.1, Seller shall provide the Contract Capacity in each Peak Month for all on-peak hours as such peak hours are defined in Edison's Tariff Schedule No. TOU-8 on file with the Commission, except that Seller is entitled to a 20% allowance for Forced Outages for each Peak Month. Seller shall not be subject to such performance requirements for the remaining hours of the year. a. If Seller fails to meet the requirements specified in Section 9.1.2.2, Seller, in Edison's sole discretion, may be placed on probation for a period not to exceed 15 months. If Seller fails to meet the requirements specified in Section 9.1.2.2 during the probationary period, Edison may derate the Contract Capacity to the greater of the capacity actually delivered during the probationary period, or the capacity at which Seller can reasonably meet such requirements. A 31
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE reduction in Contract Capacity as a result of this Section 9.1.2.2 shall be subject to Section 9.1.2.5. b. If Seller fails to meet the requirements set forth in Section 9.1.2.2 due to a Forced Outage on the Edison system or a request to reduce or curtail delivery under Section 9.4, Edison shall continue Monthly Capacity Payments pursuant to Capacity Payment Option B. The Contract Capacity curtailed shall be treated the same as scheduled maintenance outages in the calculation of the Monthly Capacity Payment. 9.1.2.3 If Seller is unable to provide Contract Capacity due to Uncontrollable Forces, Edison shall continue Monthly Capacity Payments for 90 days from the occurrence of the Uncontrollable Force. Monthly Capacity Payments payable during a period of interruption or reduction by reason of an Uncontrollable Force shall be treated the same as scheduled maintenance outages. 9.1.2.4 Capacity Bonus Payment for Capacity Payment Option B, Seller may receive a Capacity Bonus Payment as follows: a. Bonus During Peak Months -- For a Peak Month, Seller shall receive a Capacity Bonus Payment if (i) 32
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE the requirements set forth in Section 9.1.2.2 have been met, and (ii) the on-peak capacity factor exceeds 85%. b. Bonus During Non-Peak Months -- For a non-peak month, Seller shall receive a Capacity Bonus Payment if (i) the requirements set forth in Section 9.1.2.2 have been met (ii) the on-peak capacity factor for each Peak Month during the year was at least 85%, and (iii) the on-peak capacity factor for the non-peak month exceeds 85%. c. For any eligible month, the Capacity Bonus Payment shall be calculated as follows: CAPACITY BONUS PAYMENT = A x B x C x D Where A = (1.2 x On-Peak Capacity Factor) - 1.02 Where the On-Peak Capacity Factor, not to exceed 1.0, is calculated as follows: Period kWh purchased by Edison limited by the level of Contract Capacity (Contract Capacity) x (Period Hours minus Maintenance Hours Allowed in Section 4.5) B = Contract Capacity Price specified in Section 1.11 for Capacity Payment Option B 33
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE C = 1/12 D = Contract Capacity specified in Section 1.5 d. When Seller is entitled to receive a Capacity Bonus Payment, the Monthly Capacity Payment shall be the sum of the Monthly Capacity Payment pursuant to Section 9.1.2.1 and the Monthly Capacity Bonus Payment pursuant to this Section. e. For Capacity Payment Option B, Seller shall be paid for capacity in excess of Contract Capacity based on the as-available capacity price in Standard Offer No. 1 Capacity Payment Schedule, as updated and approved by the Commission. Seller shall not receive any as-available capacity payment in excess of Contract Capacity if Seller's Generating Facility is a small hydro project. 9.1.2.5 Capacity Reduction a. Seller may reduce the Contract Capacity specified in Section 1.5, provided that Seller gives Edison prior written notice for a period determined by the amount of Contract Capacity reduced as follows: 34
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE Amount of Contract Length of Capacity Reduced Notice Required 25,000 kW or under 12 months 25,001 - 50,000 kW 36 months 50,001 - 100,000 kW 48 months over 100,000 kW 60 months b. Subject to Section 10.4, Seller shall refund to Edison with interest at the current published Federal Reserve Board three months prime commercial paper rate an amount equal to the difference between (i) the accumulated Monthly Capacity Payments paid by Edison pursuant to Capacity Payment Option B up to the time the reduction notice is received by Edison, and (ii) the total capacity payments which Edison would have paid if based on the Adjusted Capacity Price. c. From the date the reduction notice is received to the date of actual capacity reduction, Edison shall make capacity payments based on the Adjusted Capacity Price for the amount of Contract Capacity being reduced. d. Seller may reduce Contract Capacity without the notice prescribed in Section 9.1.2.5(a), provided that 35
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE Seller shall refund to Edison the amount specified in Section 9.1.2.5(b) and an amount equal to: (i) the amount of Contract Capacity being reduced, times (ii) the difference between the Current Capacity Price and the Contract Capacity Price, times (iii) the number of years and fractions thereof (not less than one year) by which the Seller has been deficient in giving prescribed notice. If the Current Capacity Price is less than Contract Capacity Price, only payment under Section 9.1.2.5(b) shall be due to Edison. 9.1.2.6 Adjustment to Contract Capacity. The Parties may agree in writing at any time to adjust the Contract Capacity. Seller may reduce the Contract Capacity pursuant to Section 9.1.2.5. Seller may increase the Contract Capacity with Edison's approval and thereafter receive payment for the increased capacity in accordance with the Contract Capacity Price for the Capacity Payment Option selected by Seller for the remaining Contract Term. 9.2 Energy Payments - First Period During the First Period of the Contract Term, Seller shall be paid a Monthly Energy Payment for the Energy delivered by the Seller to Edison at the Point 36
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE of Interconnection pursuant to the Energy Payment Option selected by Seller in Section 1.12, as follows. (Data used to derive Edison's Energy payments for the First Period will be made available to the Seller, to the extent specified by Seller, upon request.) 9.2.1 Energy Payment Option 1 -- Forecast of Annual Marginal Cost of Energy. If Seller selects Energy Payment Option 1, then during the First Period of the Contract Term, Seller shall be paid a Monthly Energy Payment for Energy delivered by Seller and purchased by Edison during each month in the First Period of the Contract Term pursuant to the following formula: MONTHLY ENERGY PAYMENT = (A x D)+(B x D)+(C x D) Where A = kWh purchased by Edison during on-peak periods defined in Edison's Tariff Schedule No. TOU-8. B = kWh purchased by Edison during mid-peak periods defined in Edison's Tariff Schedule No. TOU-8. C = kWh purchased by Edison during off-peak periods defined in Edison's Tariff Schedule No. TOU-8. D = The sum of: (i) the appropriate time differentiated energy price from the Forecast of Annual Marginal Cost of Energy, multiplied by the decimal equivalent of the percentage of 37
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE the forecast specified in Section 1.12, and (ii) the appropriate time differentiated energy price from Edison's published avoided cost of energy multiplied by the decimal equivalent of the percentage of the published energy price specified in Section 1.12. 9.2.2 Energy Payment Option 2 -- Levelized Forecast of Marginal Cost of Energy. If Seller selects Energy Payment Option 2, then during the First Period of the Contract Term, Seller shall be paid a Monthly Energy Payment for Energy delivered by Seller and purchased by Edison each month during the First Period of the Contract Term pursuant to the following formula: MONTHLY ENERGY PAYMENT = (A x D) + (B x D) + (C x D) Where A = kWh purchased by Edison during on-peak periods defined in Edison's Tariff Schedule No. TOU-8. B = kWh purchased by Edison during mid-peak periods defined in Edison's Tariff Schedule No. TOU-8. C = kWh purchased by Edison during off-peak periods defined in Edison's Tariff Schedule No. TOU-8. D = The sum of: (i) the appropriate time differentiated energy price from the Levelized Forecast of Marginal Cost of Energy, for 38
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE the First Period of the Contract Term multiplied by the decimal equivalent of the percentage of the levelized forecast specified in Section 1.12, and (ii) the appropriate time differentiated energy price from Edison's published avoided cost of energy multiplied by the decimal equivalent of the percentage of the published energy price specified in Section 1.12. 9.2.2.1 Performance Requirement for Energy Payment Option 2 During the First Period when the annual forecast referred to in Section 9.2.1 is greater than the levelized forecast referred to in Section 9.2.2, Seller shall deliver to Edison at least 70 percent of the average annual kWh delivered to Edison during those previous periods when the levelized forecast referred to in Section 9.2.2 is greater than the annual forecast referred to in Section 9.2.1 as resource conditions permit for solar, wind, and hydro Generating Facilities and excluding uncontrollable forces. If Seller does not meet the performance requirements of this Section 9.2.2.1, Seller shall be subject to Section 9.5. 9.3 Energy Payments - Second Period During the Second Period of the Contract Term, Seller shall be paid a 39
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE Monthly Energy Payment for Energy delivered by Seller and purchased by Edison at a rate equal to 100% of Edison's published avoided cost of energy based on Edison's full avoided operating cost as updated periodically and accepted by the Commission, pursuant to the following formula: MONTHLY ENERGY PAYMENT = kWh purchased by Edison for each on-peak, mid-peak, and off-peak time period defined in Edison's Tariff Schedule No. TOU-8. x Edison's published avoided cost of energy by time of delivery for each time period. Data used to derive Edison's full avoided costs will be made available to the Seller, to the extent specified by Seller, upon request. 9.4 Edison shall not be obligated to accept or pay for Energy, and may request Seller whose Generating Facility is one (1) MW or greater to discontinue or reduce delivery of Energy, for not more than 300 hours annually during off-peak hours when (i) purchases would result in costs greater than those which Edison would incur if it did not purchase Energy from Seller but instead utilized an equivalent amount of Energy generated from another Edison source, or (ii) the Edison Electric System demand would require that Edison hydro-energy be spilled to reduce generation. 40
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 9.5 Energy Payment Refund If Seller elects Energy Payment Option 2, Seller shall be subject to the following: 9.5.1 If Seller fails to perform the Contract obligations for any reason during the First Period of the Contract Term, or fails to meet the performance requirements set forth in Section 9.2.2.1, and at the time of such failure to perform, the net present value of the cumulative Energy payments received by Seller pursuant to Energy Payment Option 2 exceeds the net present value of what Seller would have been paid pursuant to Energy Payment Option 1, Seller shall make an energy payment refund equal to the difference in such net present values in the year in which the refund is due. The present value calculation shall be based upon the rate of Edison's incremental cost of capital specified in Section 1.12. 9.5.2 Not less than 90 days prior to the date Energy is first delivered to the Point of Interconnection, Seller shall provide and maintain a performance bond, surety bond, performance insurance, corporate guarantee, or bank letter of credit, satisfactory to Edison, which shall insure payment to Edison of the Energy Payment Refund at any time during the First Period. Edison may, in its sole discretion accept another form of security except that in such instance a 1-1/2 percent 41
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE reduction shall then apply to the levelized forecast referred to in Section 9.2.2 in computing payments for Energy. Edison shall be provided with certificates evidencing Seller's compliance with the security requirements in this Section which shall also include the requirement that Edison be given 90 days prior written notice of the expiration of such security. 9.5.3 If Seller fails to provide replacement security not less than 60 days prior to the date of expiration of existing security, the Energy Payment Refund provided in Section 9.5 shall be payable forthwith. Thereafter, payments for Energy shall be 100 percent of the Monthly Energy Payment provided in Section 9.2.1. 9.5.4 If Edison at any time determines the security to be otherwise inadequate, and so notifies Seller, payments thereafter for Energy shall be 100 percent of the Monthly Energy Payment provided in Section 9.2.1. If within 30 days of the date Edison gives notice of such inadequacies, Seller satisfies Edison's security requirements, Energy Payment Option 2 shall be reinstated. If Seller fails to satisfy Edison's security requirements within the 30-day period, the Energy Payment Refund provided in Section 9.5 shall be payable forthwith. 10. PAYMENT AND BILLING PROVISIONS 10.1 For Energy and capacity purchased by Edison: 42
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 10.1.1 Edison shall mail to Seller not later than thirty days after the end of each monthly billing period (1) a statement showing the Energy and Contract Capacity delivered to Edison during the on-peak, mid-peak, and off-peak periods, as those periods are specified in Edison's Tariff Schedule No. TOU-8 for that monthly billing period, (2) Edison's computation of the amount due Seller, and (3) Edison's check in payment of said amount. 10.1.2 If the monthly payment period involves portions of two different published Energy payment schedule periods, the monthly Energy payment shall be prorated on the basis of the percentage of days at each price. 10.1.3 If the payment period is less than 27 days or greater than 33 days, the capacity payment shall be prorated on the basis of coverage days per month per year. 10.1.4 If Within thirty days of receipt of the statement Seller does not make a report in writing to Edison of an error, Seller shall be deemed to have waived any error in Edison's statement, computation, and payment, and they shall be considered correct and complete. 10.2 For electric Service provided by Edison: 43
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 10.2.1 Under Operating Option III pursuant to Section 5.1, standby electric service shall be provided under terms and conditions of Edison's tariff schedule indicated below as now in effect or as may hereafter be authorized by the Commission to be revised. The applicable tariff schedules are: STANDBY TARIFF ELECTRICAL SERVICE SCHEDULE NO TARIFF SCG-1 TOU-8 or GS-2 SCG-1 TOU-8 SCG-3 TOU-8 10.2.1.1 (Applicable to SCG-I only) The Standby Demand for calculation of the standby charge in SCG-1 is specified in Section 1.9. Edison reserves the right to adjust the Standby Demand based on recorded demand during periods standby power is required. 10.2.1.2 (Applicable to SCG-1 only) The capacity rating for determination of standby waiver qualifications shall be Contract Capacity plus the maximum electric load served by the Generating Facility during the on-peak time period recorded during the preceding 12-month time period. 44
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 10.2.1.3 A minimum monthly charge may be established for standby electric service as provided in the tariff schedule elected in Section 1.9. Said minimum monthly charge shall be specified in Section 1.9. 10.2.2 Under Operating Options II and III pursuant to Section 5.1, electric service shall be provided under terms, conditions, and rates of Edison's tariff schedule indicated below as now in effect or as may hereafter be authorized by the Commission to be revised. The applicable tariff schedule is: TOU-8, or GS2 The contract demand for calculation of the minimum demand charge in the applicable tariff schedules is specified in Section 1.9. 10.2.3 Edison shall commence billing Seller for electric service rendered pursuant to the applicable tariff schedule on the date that the Point of Interconnection is energized. 10.3 Monthly charges associated with Interconnection Facilities shall be billed pursuant to the Interconnection Facilities Agreement contained in the Appendix specified in Section 1.10. 45
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 10.4 Payments due to Contract Capacity Reduction 10.4.1 The Parties agree that the refund and payments provided in Section 9.1.2.5 represent a fair compensation for the reasonable losses that would result from such reduction of Contract Capacity. 10.4.2 In the event of a reduction in Contract Capacity, the quantity, in kW, by which the Contract Capacity is reduced shall be used to calculate the refunds and payments due Edison in accordance with Section 9.1.2.5, as applicable. 10.4.3 Edison shall provide invoices to Seller for all refunds and payments due Edison under this section which shall be due within 60 days. 10.4.4 If Seller does not make payments as required in Section 10.4.3, Edison shall have the right to offset any amounts due it against any present or future payments due Seller and may pursue any other remedies available to Edison as a result of Seller's failure to perform. 10.5 Energy Payment Refund Energy Payment Refund is immediately due and payable upon Seller's failure to perform the contract obligations as specified in Section 9.5. 46
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 11. TAXES 11.1 Seller shall pay ad valorem taxes and other taxes properly attributable to the Project. If such taxes are assessed or levied against Edison, Seller shall pay Edison for such assessment or levy. 11.2 Seller shall pay ad valorem taxes and other taxes properly attributed to land, land rights, or interest in land for the Project. If such taxes are assessed or levied against Edison, Seller shall pay Edison for such assessment or levy. 11.3 If the interconnection Facilities are owned by Edison, Edison shall pay ad valorem taxes and other taxes properly attributed to said facilities. If such taxes are assessed or levied against Seller, Edison shall pay Seller for such assessment or levy. 11.4 Seller or Edison shall provide information concerning the Project to any requesting taxing authority. 12. TERMINATION This Contract shall terminate if Firm Operation does not occur within 5 years of the date of Contract execution. 13. LIABILITY 13.1 Each Party (First Party) releases the other Party (Second Party), its directors, officers, employees and agents from any loss, damage, claim, cost, charge, or expense of any kind or nature (including any direct, indirect or consequential loss, damage, claim, cost, charge, or expense), including attorneys' fees and other costs of litigation incurred by the First Party in 47
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE connection with damage to property of the First Party caused by or arising out of the Second Party's construction, engineering, repair, supervision, inspection, testing, protection, operation, maintenance, replacement, reconstruction, use or ownership of its facilities, to the extent that such loss, damage, claim, cost, charge, or expense is caused by the negligence of Second Party, its directors, officers, employees, agents, or any person or entity whose negligence would be imputed to Second Party. 13.2 Each Party shall indemnify and hold harmless the other Party, its directors, officers, and employees or agents from and against any loss, damage, claim, cost, charge, (including direct, indirect or consequential loss, damage, claim, cost, charge, or expense) including attorneys' fees and other costs of litigation, incurred by the other Party in connection with the injury to or death of any person or damage to property of a third party arising out of the indemnifying Party's construction, engineering, repair, supervision, inspection, testing, protection, operation, maintenance, replacement, reconstruction, use, or ownership of its facilities, to the extent that such loss, damage, claim, cost, charge, or expense is caused by the negligence of the indemnifying Party, its directors, officers, employees, agents, or any person or entity whose negligence would be imputed to the indemnifying Party; provided, however, that each Party shall be solely responsible for and shall bear all cost of claims brought by its contractors or its own employees 48
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE and shall indemnify and hold harmless the other Party for any such costs including costs arising out of any workers compensation law. Seller releases and shall defend and indemnify Edison from any claim, cost, loss, damage, or liability arising from any contrary representation concerning the effect of Edison's review of the design, construction, operation, or maintenance of the Project. 13.3 The provisions of this Section 13 shall not be construed so as to relieve any insurer of its obligations to pay any insurance claims in accordance with the provisions of any valid insurance policy. 13.4 Neither Party shall be indemnified under this Section 13 for its liability or loss resulting from its sole negligence or willful misconduct. 14. INSURANCE 14.1 Until Contract is terminated, Seller shall obtain and maintain in force as hereinafter provided comprehensive general liability insurance, including contractual liability coverage, with a combined single limit of (i) not less than $1,000,000 each occurrence for Generating Facilities 100 kW or greater; (ii) not less than $500,000 for each occurrence for Generating Facilities between 20 kW and 100 kW; and (iii) not less than $100,000 for each occurrence for Generating Facilities less than 20 kW. The insurance carrier or carriers and form of policy shall be subject to review and approval by Edison. 49
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 14.2 Prior to the date Seller's Generating Facility is first operated in parallel with Edison's electric system, Seller shall (i) furnish certificate of insurance to Edison, which certificate shall provide that such insurance shall not be terminated nor expire except on thirty days prior written notice to Edison, (ii) maintain such insurance in effect for so long as Seller's Generating Facility is operated in parallel with Edison's electric system, and (iii) furnish to Edison an additional insured endorsement with respect to such insurance in substantially the following forms: "In consideration of the premium charged, Southern California Edison Company (Edison) is named as additional insured with respect to all liabilities arising out seller's use and ownership of Seller's Generating Facility." "The inclusion of more than one insured under this policy shall not operate to impair the rights of one insured against another insured and the coverage afforded by this policy will apply as though separate policies had been issued to each insured. The inclusion of more than one insured will not, however, operate to increase the limit of the carrier's liability. Edison will not, by reason of its inclusion under this policy, incur liability to the insurance carrier for payment of premium for this policy." 50
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE "Any other insurance carried by Edison which may be applicable shall be deemed excess insurance and Seller's insurance primary for all purposes despite any conflicting provisions in Seller's policy to the contrary." If the requirement of Section 14.2 (iii) prevents Seller from obtaining the insurance required in Section 14.1 then upon written notification by Seller to Edison, Section l4.2 (iii) shall be waived. 14.3 The requirements of this Section 14 shall not apply to Seller who is a self-insured governmental agency with established record of self-insurance. 14.4 If Seller fails to comply with the provisions of this Section 14, Seller shall, at its own cost, defend, indemnify, and hold harmless Edison, its directors, officers, employees, agents, assigns, and successors in interest from and against any and all loss, damage, claim, cost, charge, or expense of any kind or nature (including direct, indirect or consequential loss, damage, claim, cost, charge, or expense, including attorneys' fees and other costs of litigation) resulting from the death or injury to any person or damage to any property, including the personnel and property of Edison, to the extent that Edison would have been protected had Seller complied with all of the provisions of this Section 14. 51
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 15. UNCONTROLLABLE FORCES 15.1 Neither Party shall be considered to be in default in the performance of any of the agreements contained in this Contract, except for obligations to pay money, when and to the extent failure of performance shall be caused by an Uncontrollable Force. 15.2 If either Party because of an Uncontrollable Force is rendered wholly or partly unable to perform its obligations under this Contract, the Party shall be excused from whatever performance is affected by the Uncontrollable Force to the extent so affected provided that: (1) the nonperforming Party, within two weeks after the occurrence of the Uncontrollable Force, gives the other Party written notice describing the particulars of the occurrence, (2) the suspension of performance is of no greater scope and of no longer duration than is required by the Uncontrollable Force, (3) the nonperforming Party uses its best efforts to remedy its inability to perform (this subsection shall not require the settlement of any strike, walkout, lockout or other labor dispute on terms which, in the sole judgment of the Party involved in the dispute, are contrary to its interest. It is understood and agreed that the settlement of strikes, walkouts, lockouts or other labor disputes shall be at the sole discretion of the Party having the difficulty), 52
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE (4) when the nonperforming Party is able to resume performance of its obligations under this Contract, that Party shall give the other Party written notice to that effect, and (5) capacity payments during such periods of Uncontrollable Force on Seller's part shall be governed by Section 9.1.2.3. 15.3 In the event that either Party's ability to perform cannot be corrected when the Uncontrollable Force is caused by the actions or inactions of legislative, judicial or regulatory agencies or other proper authority, this Contract may be amended to comply with the legal or regulatory change which caused the nonperformance. If a loss of Qualifying Facility status occurs due to an Uncontrollable Force and Seller fails to make the changes necessary to maintain its Qualifying Facility status, the Seller shall compensate Edison for any economic detriment incurred by Edison as a result of such failure. 16. NONDEDICATION OF FACILITIES Neither Party, by this Contract, dedicates any part of its facilities involved in this Project to the public or to the service provided under the Contract, and such service shall cease upon termination of the Contract. 17. PRIORITY OF DOCUMENTS If there is a conflict between this document and any Appendix, the provisions of 53
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE this document shall govern. Each Party shall notify the other immediately upon the determination of the existence of any such conflict. 18. NOTICES AND CORRESPONDENCE All notices and correspondence pertaining to this contract shall be in writing and shall be sufficient if delivered in person or sent by certified mail, postage prepaid, return receipt requested, to Seller as specified in Section 1.1, or to Edison as follows: Southern California Edison Company Post Office Box 800 Rosemead, California 9l770 Attention: Secretary All notices sent pursuant to this Section 18 shall be effective when received, and each Party shall be entitled to specify as its proper address any other address in the United States upon written notice to the other Party. 19. PREVIOUS COMMUNICATIONS This Contract contains the entire agreement and understanding between the Parties, their agents, and employees as to the subject matter of this contract, and merges and supersedes all prior agreements, commitments, representations, and discussions between the Parties. No Party shall be bound to any other obligations, conditions, or representations with respect to the subject matter of this Contract. 20. NONWAIVER None of the provisions of the Contract shall be considered waived by either Party 54
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE except when such waiver is given in writing. The failure of either Edison or Seller to insist on any one or more instances upon strict performance of any of the provisions of the Contract or to take advantage of any of its rights hereunder shall not be construed as a waiver of any such provisions or the relinquishment of any such rights for the future, but the same shall continue to remain in full force and effect. 21. SUCCESSORS AND ASSIGNS Neither Party shall voluntarily assign its rights nor delegate its duties under this Contract, or any part of such rights or duties, without the written consent of the other Party, except in connection with the sale or merger of a substantial portion of its properties. Any such assignment or delegation made without such written consent shall be null and void. Consent for assignment shall not be withheld unreasonably. Such assignment shall include, unless otherwise specified therein, all of Seller's rights to any refunds which might become due under this Contract. 22. EFFECT OF SECTION READINGS Section headings appearing in this Agreement are inserted for convenience only, and shall not be construed as interpretations of text. 23 GOVERNING LAW This Contract shall be interpreted, governed, and construed under the laws of the State of California as if executed and to be performed wholly within the State of California. 55
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE 24. MULTIPLE ORIGINALS This Contract is executed in two counterparts, each of which shall be deemed an original. SIGNATURES IN WITNESS WHEREOF, the Parties hereto have executed this Contract this 15th of April, 1985. [Approved as to Form SOUTHERN CALIFORNIA EDISON COMPANY John R. Bury Vice President and General Counsel By /s/ Edward A. Myers, Jr. ---------------------------------- By /s/ John R. Bury EDWARD A. MYERS, JR. ----------------------- Vice President April 18, 1985] PACIFIC LIGHTING ENERGY SYSTEMS MAMMOTH PACIFIC By /s/ Lee H. Freeman ------------------------------------ LEE H. FREEMAN Vice President PACIFIC LIGHTING ENERGY SYSTEMS 56
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Appendix A [Replaced by Appendix A of Amendment No. 1 to this power purchase contract, dated October 27, 1989]
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE -------------------------------------------------------------------------------- APPENDIX B FORECAST OF ANNUAL AS-AVAILABLE CAPACITY PAYMENT SCHEDULE -------------------------------------------------------------------------------- Document No. 2433H
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE -------------------------------------------------------------------------------- SOUTHERN CALIFORNIA EDISON COMPANY LONG-TERM STANDARD OFFER CAPACITY PAYMENT SCHEDULE - FORECAST OF ANNUAL AS-AVAILABLE CAPACITY(1) Line As-Available Capacity(2) No. Year ($/kW-year) -------------------------------------- 1 1985 81 2 1986 87 3 1987 94 4 1988 101 5 1989 109 6 1990 117 7 1991 126 8 1992 148 9 1993 158 10 1994 169 11 1995 180 12 1996 194 13 1997 206 14 1998 221 15 1999 235 ---------- (1) This forecast to be used in conjunction with Capacity Payment Option A. (2) The annual as-available capacity ($/kW-yr) will be converted to a seasonal time-of-delivery (CENTS/kWh) value that is consistent with as-available time-of-delivery rates current authorized by the Commission for Avoided As-Available Capacity. -------------------------------------------------------------------------------- Document No. 2433H B-1
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE -------------------------------------------------------------------------------- SOUTHERN CALIFORNIA EDISON COMPANY LONG-TERM STANDARD OFFER CAPACITY PAYMENT SCHEDULE - FORECAST OF AS-AVAILABLE CAPACITY(1) SEASONAL TIME OF DELIVERY Line As-Available Capacity(2) No. Year Season Period (CENT/kWh) ---------------------------------------------------------- 1 1985 Summer On-Peak 10.08 2 Mid-Peak 0.11 3 Off-Peak 0.05 4 Winter On-Peak 2.41 5 Mid-Peak 0.54 6 Off-Peak 0.06 ---------- (1) This forecast to be used in conjunction with Capacity Payment Option A. (2) In subsequent years, the annual as-available capacity ($/kW-yr) will be converted to a seasonal time-of-delivery (CENTS/kWh) value that is consistent with as-available time-of-delivery rates currently authorized by the Commission for Avoided As-Available Capacity. -------------------------------------------------------------------------------- Document No. 2433H B-2
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE -------------------------------------------------------------------------------- APPENDIX C FORECAST OF ANNUAL MARGINAL COST OF ENERGY -------------------------------------------------------------------------------- Document No. 2433H
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE -------------------------------------------------------------------------------- SOUTHERN CALIFORNIA EDISON COMPANY LONG-TERM STANDARD OFFER ENERGY PAYMENT SCHEDULE - FORECAST OF ANNUAL MARGINAL COST OF ENERGY(1) Annual Marginal Line Cost of Energy(2) No. Year (CENTS/kWh) ------------------------------- 1 1985 5.7 2 1986 6.0 3 1987 6.4 4 1988 6.9 5 1989 7.6 6 1990 8.1 7 1991 8.6 8 1992 9.3 9 1993 10.1 10 1994 10.9 11 1995 11.8 12 1996 12.6 13 1997 13.6 14 1998 14.6 15 1999 15.6 ---------- (1) This forecast to be used in conjunction with Energy Payment Option 1. (2) The annual energy payments in the table will be converted to seasonal time-of-delivery energy payment rates that are consistent with the time-of-delivery rates currently authorized by the Commission for Avoided Energy Cost Payments. -------------------------------------------------------------------------------- Document No. 2433H C-l
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE -------------------------------------------------------------------------------- SOUTHERN CALIFORNIA EDISON COMPANY LONG-TERM STANDARD OFFER ENERGY PAYMENT SCHEDULE - FORECAST OF ANNUAL MARGINAL COST OF ENERGY(1) SEASONAL TIME OF DELIVERY Annual Marginal Line Cost of Energy(2) No. Year Season Period (CENTS/kWh) --------------------------------------------------- 1 1985 Summer On-Peak 7.8 2 Mid-Peak 6.0 3 Off-Peak 5.2 4 Winter On-Peak 7.4 5 Mid-Peak 6.0 6 Off-Peak 5.2 7 Annual 5.7 ---------- (1) This forecast to be used in conjunction with Energy Payment Option 1. (2) In subsequent years, the annual energy payments in the table will be converted to seasonal time-of-delivery energy payment rates that are consistent with the time-of-delivery rates currently authorized by the Commission for Avoided Energy Cost Payments -------------------------------------------------------------------------------- Document No. 2433H C-2
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SCE STANDARD CONTRACT LONG-TERM POWER PURCHASE -------------------------------------------------------------------------------- APPENDIX D RULE NO. 21 COGENERATION AND SMALL POWER PRODUCTION INTERCONNECTION STANDARDS AND SCHEDULE NO. TOU-8 GENERAL SERVICE-LARGE -------------------------------------------------------------------------------- Document No. 2433H
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No. 781_-E Cancelling Revised Cal. P.U.C. Sheet No. 6047-E -------------------------------------------------------------------------------- Rule No. 21 COGENERATION AND SMALL POWER PRODUCTION INTERCONNECTION STANDARDS A. General. This rule sets forth requirements and conditions for interconnected non Company-owned generation where such generation may be connected for (1) parallel operation with the service of the Company or (2) Isolated operation with standby or breakdown service provided by the Company. For purposes of this rule, the interconnecting entity shall be designated the Producer. B. Conditions. 1. An agreement executed by the Company and the Producer shall be required for interconnected service. Terms for the purchase of power by the Company if applicable, shall be included therein. 2. Interconnection with the Company's system may not be made until and unless the Company has determined that the interconnection complies with the design and operating requirements set forth herein. 3. Where interconnection protective equipment is owned, operated and maintained by the Producer, the Producer shall be responsible for damages to the Company or to others arising out of the misoperation or malfunction of the Producer-owned equipment. 4. The Producer is solely responsible for providing adequate protection for the Producer's facilities interconnected with the Company's system. C. Design and Operating Requirements. Each generation facility which is or can be connected to the Company's electric system shall be designed and operated so as to prevent or protect against the following adverse conditions on the Company's system. These conditions can cause electric service degradation, equipment damage, of harm to persons: 1. Inadvertent and unwanted re-energization of a utility dead line or bus. 2. Interconnection while out of synchronizaton. 3. Overcurrent. 4. Utility system load imbalance. 5. Ground faults. 6. Generated alternating current frequency outside permitted safe limits. 7. Voltage generated outside permitted limits. 8. Poor power factor. 9. Harmful wave forms. The necessary protective equipment (relays, switchgear, transformers, etc.) can be provided by the Producer or by the Company. Explanatory information, operating rules and guidelines for meeting the above requirements for small (below 100 kw), medium (100-1000 kw) and large (above 1000 kw) facilities are contained in the Company's guidelines for cogenerators and small power producers. Copies of sale guidelines are available from the Company. D. Interconnection Facilities. 1. Interconnection facilities include all required means, and apparatus installed, to interconnect the Producer's generation with the Company's system. Where the Producer desires to sell power to the Company, interconnection facilities include also all required means, and apparatus installed, to enable the Company to receive power deliveries from the Producer. Interconnection facilities may include, but are not limited to: (Continued) -------------------------------------------------------------------------------- (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. _____ Michael R. Peevey Date Filed January __, 19__ Decision No. __-10-093 Name Effective February __, 19__ Resolution No. ____________ Vice President Title
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No. 7817-E Cancelling Revised Cal. P.U.C. Sheet No. 7209-E -------------------------------------------------------------------------------- Rule No. 21 COGENERATION AND SMALL POWER PRODUCTION INTERCONNECTION STANDARDS (Continued) D. Interconnection Facilities. (Continued) a. Connection, transformation, switching, communications, control, protective and safety equipment; and b. Any necessary reinforcements and additions to the Company's system by the Company. 2. Where interconnection facilities are to be installed for the Producer's use as added facilities, the Producer shall advance to the Company the installed cost of the added facilities. At the Producer's option, and where such Producer's generation is a qualifying facility and the Producer has established credit worthiness to the Company's satisfaction, the Company shall finance those added facilities it deems to be removable and reusable equipment. Such equipment shall include, but not be limited to, transformation, disconnection, and metering equipment. Added facilities provided under either of the foregoing arrangements are subject to the monthly charge as set forth in Section H of the Company's Rule No. 2. Description of Service, on file with and authorized by the Commission. 3. When a Producer wishes to reserve facilities paid for by the Producer, but idled by an energy sale conversion, the Company shall impose a special facilities charge reimbursing the Company for costs related to its operation and maintenance of the facility. When a Producer no longer needs facilities for which it has paid, the Producer shall, at a minimum, receive from the Company credit for the net salvage value of the facilities dedicated to Company use. If the Company is able to make use of these facilities to serve other customers, the Producer shall receive the fair market value of the facilities determined as of the date the Producer shall receive the fair market value of the facilities determined as of the date the Producer either decides no longer to use the facilities or fails to pay the required maintenance fee. 4. The Producer shall be responsible for the costs of exploring the feasibility of a project or its interconnection with the Company system, including reasonable advance charges imposed by the Company for feasibility studies. 5. An interconnection line study for any Producer shall take no more than one year to complete. 6. The Producer shall be responsible for costs of telemetering and safety checks except to the extent that, under the Company's effective tariffs, a comparable customer would not be similarly charged. 7. The Company shall, upon request, give the Producer a binding estimate for line extension and interconnection costs; however, such estimates shall be in effect for a period not to exceed one year from the date provided. A reasonable breakdown of cost estimates shall also be provided in a form sufficiently detailed and understandable by the Producer. 8. The Company shall have the right to Inspect the Producer's interconnection facilities prior to the commencement of parallel operations and require modifications as necessary. 9. The site of interconnection facilities shall be accessible to Company personnel. E. Interconnection Reinforcement and/or Additions. The Company's effective tariffs governing interconnection costs and added or special facilities agreement shall be applied to line and system reinforcement and/or addition. In addition, the following shall apply: 1. A Producer shall pay for new or additional line capacity if necessary for the Company to receive the Producer's power. 2. The costs of any line reinforcement and/or addition undertaken at the option of the Company to serve additional future customers or Producers shall be borne by the Company. (Continued) -------------------------------------------------------------------------------- (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 640-E Michael R. Peevey Date Filed January __, 19__ Decision No. __-10-093 Name Effective February __,19__ Resolution No._____________ Vice President Title
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No. 7818-E Cancelling Revised Cal. P.U.C. Sheet No. 6049-E -------------------------------------------------------------------------------- Rule No. 21 COGENERATION AND SMALL POWER PRODUCTION INTERCONNECTION STANDARDS (Continued) E. Interconnection Reinforcement and/or Additions (Continued) 3. For two or more Producers seeking to use an existing line, a first come, first served approach shall be used. This approach shall require that the first Producer to request an interconnection shall, pursuant to written agreement, have the right to use the existing line and shall incur no obligation for costs associated with future line capacity needed to accomodate other Producers or customers. The Company's Standard Offer and/or power purchase agreements for cogeneration and small power production facilities shall specify the date by which the Producer must begin construction. If that date passes and construction has not commenced, the Producer shall be given 30 days to correct the deficiency after receiving a reminder from the Company that the construction start-up date has passed. If construction has not commenced after the 30-day corrective period, the Company shall have the right to withdraw its commitment to the first Producer and offer the right to interconnect on the existing line to the next Producer in order. If two Producers establish the right of first-in-time simultaneously, the two Producers shall share the costs of any additional line capacity necessary to facilitate their cumulative capacity requirements. Costs shall be shared based on the relative proportion of capacity such Producer will act to the line. 4. The applicable Company tariff provisions shall be applied to a Producer who pays for interconnection reinforcements and/or additions that later accomodate a second Producer as those provisions which would be applied to a comparable Company customer. 5. The Producer shall be responsible for the costs of only those future system alterations which are necessary to maintain the California Public Utilities Commission's adopted interconnection standards for the Producer's particular interconnection facilities. The relevant interconnection standards shall be those in effect at the time the contract is signed. Should such alterations not be directly required by, or beneficial to the Producer, the Producer shall be treated like any other customer on the Company's system. F. Metering. 1. If the Producer desires to sell electric power to the Company, the Company shall provide, own and maintain at the Producer's expense all necessary meters and associated equipment to be utilized for the measurement of energy and capacity for determining the Company's payment to the Producer pursuant to an applicable agreement. 2. For purposes of monitoring generator operation and determination of standby charges, the Company shall have the right to install generation metering at the Producer's expense. Where the Producer's generation is 10 MW or greater, telemetering equipment may also be required at the Producer's expense. 3. The Producer shall provide, at no expense to the company, a suitable location for all meters and associated equipment in accordance with Rule No. 15. 4. Where necessary the Company and the Producer shall agree on an appropriate compensation method for transformer losses as specified in the agreement. 5. The Company shall install ratchet service so as to prevent reverse operation on the meter(s) recording power provided by the Company, and where appropriate in each of the following cases on. (i) the meter(s) recording reactive demand imposed on the Company's electric system, and (ii) the meter(s) recording power purchased by the Company. 6. Provision for meter tests and adjustments of bills or payments to the Producer for meter error shall be consistent with Rule No. 17. -------------------------------------------------------------------------------- (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 640-E Michael R. Peevey Date Filed January 1_, 198_ Decision No. 83-10-093 Name Effective February 12, 198_ Vice President Resolution No. Title -----------
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No. 8187-E Cancelling Revised Cal. P.U.C. Sheet No. 8107-E -------------------------------------------------------------------------------- Schedule No. TOU-_ GENERAL SERVICE-LARGE APPLICABILITY Applicable to general service, including lighting and power. This Schedule is necessary for all customers whose monthly maximum demand metres 500 kW for any three months during the preceding 12 months. Any customer whose monthly maximum demand has fallen below 450 kW for 12 consecutive months may elect to take service on any other applicable schedule. TERRITORY Within the entire territory served. RATES Per Meter Per Month --------- Customer Charge: ................................................... $360.00 Demand Charge (to be added to Customer Charge): All kW of on-peak billing demand, per kW ........................ $ 5.05 Plus all kW of mid-peak billing demand, per kW .................. 0.65 Plus all kW of off-peak billing demand, per kW .................. No Charge (Subject to Minimum Demand Charge, See Special Condition No. 6.) Energy Charge (to be added to Demand Charge): All on-peak kWh, per kWh ........................................ 8.490CENTS Plus all mid-peak kWh, per kWh .................................. 7.090CENTS Plus all off-peak kWh, per kWh .................................. 5.920CENTS The above rates are subject to the Steel Surcharge Adjustment as set forth in Special Condition No. 13. For Service on Santa Catalina Island, the above rates are subject to the Ca_alin_ Energy Cost Balance Adjustment, as set forth in Special Condition No. 14. Charges for energy are calculated for customer billing using components shown below. (Continued) -------------------------------------------------------------------------------- (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 669-E Michael R. Peevey Date Filed December 31, 1984 Decision No. 84-12-060 Name Effective January 1, 1985 84-12-063 Vice President Resolution No. 84-12-068 Title ------------
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No. ____-E Cancelling Revised Cal. P.U.C. Sheet No. ____-E -------------------------------------------------------------------------------- Schedule No. TOU-8 GENERAL SERVICE-LARGE (Continued) ENERGY CHARGE COMPONENTS Per kwh ----------------------------------- On-Peak Mid-Peak Off-Peak ------- -------- -------- Base Rate: All kWh ..................................... 2.356CENTS 2.356CENTS 2.356CENTS Adjustment Rates: Energy Cost Adjustment Billing Factor ....... 4.590CENTS 3.190CENTS 2.020CENTS Annual Energy Rate .......................... 0.351CENTS 0.351CENTS 0.351CENTS Conservation Load Management Adjustment Billing Factor ........................... 0.094CENTS 0.094CENTS 0.094CENTS Electric Revenue Adjustment Billing Factor ................................... -0.183CENTS -0.183CENTS -0.183CENTS Major Additions Adjustment Billing Factor ................................... 1.270CENTS 1.270CENTS 1.270CENTS Annual Major Additions Rate ................. 0.000CENTS 0.000CENTS 0.000CENTS PUC Reimbursement Fee ....................... 0.012CENTS 0.012CENTS 0.012CENTS ------ ------ ------ Total Adjustment Rates ...................... 6.134CENTS 4.734CENTS 3.564CENTS The PUC Reimbursement Fee is described in Schedule No. RF-E. The Adjustment Rates are described in Parts G, I, J, and L of the Preliminary Statement. SPECIAL CONDITIONS 1. Time periods are defined as follows: On-Peak: 1:00 p.m. to 7:00 p.m. summer weekdays except holidays 5:00 p.m. to 10:00 p.m. winter weekdays except holidays Mid-Peak: 9:00 a.m. to 1:00 p.m. and 7:00 p.m. to 11:00 p.m. summer weekdays except holidays 8:00 a.m. to 5:00 p.m. winter weekdays except holidays Off-Peak: All other hours. Off-peak holidays are New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas. When any holiday listed above falls on Sunday, the following Monday will be recognized as on off-peak period. No change in off-peak will be made for holidays falling on Saturday. The summer season shall commence at 12:01 a.m. on the first Sunday in June and continue until 12:01 a.m. of the first Sunday in October of each year. The winter season shall commence at 12:01 a.m. on the first Sunday in October of each year and continue until 12:01 a.m. of the first Sunday in June of the following year. 2. Voltage: Service will be supplied at one standard voltage. (Continued) -------------------------------------------------------------------------------- (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 669-E Michael R. Peevey Date Filed December 31, 1984 Decision No. 84-12-060 Name Effective January 1, 1985 84-12-063 Vice President Resolution No. 84-12-068 Title -------------
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No. 8189-E Cancelling Revised Cal. P.U.C. Sheet No. 7119-E -------------------------------------------------------------------------------- Schedule No. TOU-_ GENERAL SERVICE-LARGE (Continued) SPECIAL CONDITIONS (Continued) 3. Maximum Demand: Maximum demand shall be established for the on-peak, mid-peak and off-peak periods. The maximum demand for each period shall be the ensured maximum average kilowatt input indicated or recorded by instruments to be supplied by the Company, during any 15-minutes metered interval, but (except for new customers or existing customers electing Contract Demand as defined in these Special Conditions) not less than the diversified resistance welder load computer in accordance with the section designated holder Service in Rule No. 2. Where the demand is intermittent or subject to violent fluctuations, a 5-minute interval may be used. 4. Billing Demand: Separate billing demand for the on-peak, mid-peak and off-peak time periods shall be established for each monthly billing period. The billing demand for each time period shall be the maximum demand for that time period occurring during the respective monthly billing period. The billing demand shall be determined to the nearest kw. 5. Contract Demand: A contract demand will be established by the Company, based on applicant's demand requirements for any customer newly requesting service on this schedule and for any customer of record on this schedule who requests an increase or decrease in transformer capacity in accordance with Rule No. ____. A contract demand arrangement is available upon request for all customers of record on this schedule. The contract demand will be used only for purposes of establishing the minimum demand charge for facilities required to provide service under the rate and will not be otherwise used for billing purposes. Contract demand is based upon the nominal kilovolt-ampere rating of the Company's serving trasformer(s) or the standard transformer size determined by the Company as required to serve the customer's stated measurable kilowatt demand, whichever is less and is expressed in kilowatts. 6. Minimum Demand Charge: Where a contract demand is established, the monthly minimum demand charge shall be $1.00 per kilowatt of contract demand. 7. Excess Transformer Capacity: The transformer capacity in excess of a customer's contract demand which is either required by the Company because of the nature of the customer's ____ or requested by the customer, Excess transformer capacity shall be billed at $1.00 per kVA per month. 8. Voltage Discount: The charges before adjustments will be reduced by 6% for service delivered and metered at voltages of from 2 kV through 50 kV and by 15_ for service delivered and metered at voltages over 50 kW. (Continued) -------------------------------------------------------------------------------- (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 665-E Michael R. Peevey Date Filed December 31, 1984 Decision No. 84-__-___ Name Effective January 1, 1985 Vice President Resolution No. Title -------------
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No.7120-E Revised 5755-E Cancelling Revised Cal. P.U.C. Sheet No.5862-E -------------------------------------------------------------------------------- Schedule No. TOU-8 GENERAL SERVICE-LARGE (Continued) SPECIAL CONDITIONS (Continued) 9. Power Factor Adjustment: a. Service Delivered and Metered at 4 kV or Greater: The charges will be adjusted each month for reactive demand. The charges will be increased by 20 cents per kilovar of maximum reactive demand imposed on the Company in excess of 20% of the maximum number of kilowatts. The maximum reactive demand shall be the highest measured maximum average kilovar demand indicated or recorded by metering to be supplied by the Company during any 15-minute metered interval in the (illegible). The kilovars shall be determined to the nearest unit. A device will be installed on each kilovar meter to prevent reverse operation of the meter. b. Service Delivered and Metered at Less than 4 kV: The charges will be adjusted each month for the power factor as follows: The charges will be decreased by 20 cents per kilowatt of measured maximum demand and will be increased by 20 cents per kilovar of reactive demand. However, in no case shall the kilovars used for the adjustment be less than one-fifth the number of kiowatts. The kilovars of reactive demand shall be calculated by multiplying the kilowatts of measured maximum demand by the ratio of the kilovar-hours to the kilowatthours. Demands in kilowatts and kilovars shall be determined to the nearest unit. A ratchet device will be installed on the kilovar-hour meter to prevent its reverse operation on leading power factors. 10. Temporary Discontinuance of Service: Where the use of energy is seasonal or intermittent, no adjustments will be made for a temporary discontinuance of service. Any customer prior to resuming service within twelve months after such service was discontinued will be required to pay all charges which would have been billed if service had not been discontinued. (Continued) -------------------------------------------------------------------------------- (To be inserted by utility) issued by (To be inserted by Cal. P.U.C.) Advice Letter No. 604-E Edward A. Myers, Jr Date Filed December 30, 1982 82-12-055 Name Effective January 1, 1983 Decision No. 82-12-115 Vice President ______
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SOUTHERN CALIFORNIA EDISON COMPANY 2244 Walnut Grove Avenue Rosemead, California 91770 Revised Cal. P.U.C. Sheet No. 8190-E Cancelling Revised Cal. P.U.C. Sheet No. 7643-E -------------------------------------------------------------------------------- Schedule No. TOU-8 GENERAL SERVICE-LARGE (Continued) SPECIAL CONDITIONS (Continued) 11. Supplemental Visual Demand Meter: Subject to availability, and upon written application by the customer, the Company will, within 180 days, supply and install a Company-owned supplemental visual demand meter. The customer shall provide the required space and associated wiring beyond the point of interconnection for such installation. Said supplemental visual demand meter shall be in parallel with the standard billing meter dilineated in Special Condition 3 above. The readings measured or recorded by the supplemental visual demand meter are for customer information purposes only and shall not be used for billing purposes in lieu of meter readings established by the standard billing meter. If a meter having visual display capability is installed by Edison as the standard billing meter, no additional metering will be installed pursuant to this Special Condition. One of the following types of supplemental visual demand meters will be provided in accordance with provisions above at no additional cost to the customers. Dial wattmeter, Recording wattmeter, or Paper-Tape Printing Demand Meter. If the customer desires a supplemental visual demand meter having features not available in any of the above listed meters, such as an electronic microprocessor-based meter, the Company will provide such a supplemental visual demand meter subject to a monthly charge, if the meter and its associated equipment have been approved for use by the Company. Upon receipt from the customer of a written application the Company will design the installation and will thereafter supply, install, and maintain the supplemental visual demand meter subject to all conditions stated in the first and last paragraph of this Special Condition. For purposes of computing the monthly charge, any such supplemental visual demand meter and associated equipment shall be treated as Added Facilities in accordance with Rule No. 2, Paragraph H, Section 1 and 2 of the tariff rules. Added investment for computing the monthly charge shall be reduced by the Company's estimated total installed cost at the customer location of the Paper Tape Printing Demand Meter offered otherwise herein at no additional cost. The Company shall have sole access for purposes of maintenance and repair to any supplemental visual demand meter installed pursuant to this Special Condition and shall provide all required maintenance and repair. Periodic routine maintenance shall be provided at no additional cost to the customer. Such routine maintenance includes changing charts, inking pens, making periodic adjustments, lubricating moving parts and making minor repairs. Non-routine maintenance and major repairs or replacement shall be performed on an actual cost basis with the customer reimbursing the Company for such cost. 12. Contracts: An initial three-year facilities contract may be required where applicant requires new or access serving capacity exceeding 2,000 kVA. 13. Steel Surcharge Adjustment: The rates above are subject to adjustment as provided in Part K of the Preliminary Statement, at a billing factor of 0.025CENTS per kWh. 14. Catalina Energy Cost Balance Adjustment: For service on Santa Catalina Island, the rates above are subject to adjustment as provided in Part C of the Preliminary Statement, at a billing factor of 2.593CENTS per kWh. -------------------------------------------------------------------------------- (To be inserted by utility) Issued by (To be inserted by Cal. P.U.C.) Advice Letter No. ___-E Edward A. Myers, Jr Date Filed December 30, 1984 Decision No. 82-12-115 Name Effective January 1, 1985 Vice President Resolution No. ______ -------------

2 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/25/22  Ormat Technologies, Inc.          10-K       12/31/21  143:66M                                    RDG Filings/FA
 2/26/21  Ormat Technologies, Inc.          10-K       12/31/20  144:33M                                    RDG Filings/FA
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