Common use of ELIGIBLE RESOURCES Clause in Contracts

ELIGIBLE RESOURCES. The Company is seeking one or more flexible resource(s) in quantities up to an aggregate of 525 MW. (See Attachment 1 for minimum requirements consistent with the flexible resources used in the IRP planning assumptions). Unless a resource qualifies for one of the exceptions outlined below, the minimum bid that will be accepted is for 100 MW of dependable capacity or greater and a minimum term of ten years. Any flexible resource(s) bid must provide unit contingent or firm capacity and associated energy that are incremental to the Company’s existing capacity and energy resources and are available for dispatch or scheduling by June 1, 2009. For the purpose of RFP 2009, a resource will be deemed a flexible resource if the resource can (a) be prescheduled the day before delivery (up to sixteen hours during HE 0700 through HE 2200, Pacific Prevailing Time (“PPT”)) or within the day of delivery, (b) to a point of delivery as described in this RFP 2009. Action Item Additional Type Delivery Start Term Size Location Action #7 Supply- side FY2010 (Summer CY2009) Up to 35 years or the life of an Asset 525 MW Utah Procure one or more flexible resources in or delivered to Utah by the summer of CY2009. For each proposal submitted by a Bidder, the Bidder must submit its individual proposal under only one of the eight Resource Alternatives or one of the two exceptions listed below. The Company will not consider a proposal unless the Bidder has selected one of the eight alternatives or one of the two exceptions of Eligible Resources listed in the Request for Qualifications (Appendix A and Appendix B). One Bidder may submit more than one proposal, but each proposal can be for only one Resource Alternative designated by the Bidder. The Company will not accept proposals where the Bidder retains the option to displace any resource for economic reasons and/or where the Bidder holds the unilateral option to select one or more alternate Point(s) of Delivery. In addition, the Company will not accept any proposal that provides for planned maintenance or planned derates (as defined by NERC) during the months of June through September or December through February in any year. If a Bidder is submitting a proposal under any of the Eligible Resources which require the engagement of one or more contractors (each a “Contractor”) for purposes of constructing or modifying a physical facility, the Bidder shall, and shall cause the Contractor to award construction contracts and subcontracts of any tier for the Work (i) in compliance with the requirements of U.S. federal and Utah state laws and regulations and (ii) on a “Merit Shop” basis or (iii) through a project labor agreement. Each Contractor shall, subject always to the requirements of law or regulation or applicable collective bargaining agreement, and to the fullest extent commercially reasonable, perform the Work using a majority of Utah labor. Each Contractor shall, and shall require each of its subcontractors to, refrain from any discrimination against any employee on the basis of that employee’s membership or non-membership in any labor organization. Contractor shall, and shall require its subcontractors to, comply with all applicable requirements of law or regulation regarding labor relations and employment matters. Any administrative or civil proceedings related to labor relations or employment matters related to the Work and filed against the Contractor or any subcontractor shall be promptly reported to Company. Nothing in this provision shall affect any obligation of any Contractor or its subcontractors pursuant to a collective bargaining agreement applicable to some or all of its performance of the Work or obligations pursuant to the Contract. Subject to the exception outlined below for distributed generation, Qualifying Facilities (“QFs”), as defined under the regulations implementing the Public Utility Regulatory Policies Act of 1978 (“PURPA”), with 100 MW or greater of capacity are eligible to participate in this RFP 2009. QFs with 100 MW or greater of capacity and a minimum term of ten years or longer that elect to pursue traditional PURPA contracts rather than to participate in this RFP 2009 will not be eligible for capacity payments under the traditional PURPA contract. Each QF Bidder must submit the required information in Attachment 2 in order to be evaluated under this RFP 2009. Any QF Bidder that has a question regarding these provisions is instructed to contact the IE.

ELIGIBLE RESOURCES. The Company is seeking one or more flexible up to four Base Load resource(s) in quantities up to an aggregate for the Term of 525 MW2012, 2013, 2014. (See Attachment 1 for minimum a description of the engineering specifications, fuel type, technology, efficiency, location, projected life, transmission requirements consistent with the flexible resources used in the IRP planning assumptionsand operation and dispatch characteristics of each Company Benchmark). Unless a resource qualifies for one of the exceptions outlined below, the minimum bid that will be accepted is for 100 MW of dependable capacity or greater and a minimum term of ten years. Any flexible Base Load resource(s) bid must provide unit contingent or firm capacity and associated energy that are incremental to the Company’s existing capacity and energy resources and are available for dispatch or scheduling by June 1, 2009. For the purpose of RFP 20092012, a resource will be deemed a flexible resource if the resource can (a) be prescheduled the day before delivery (up to sixteen hours during HE 0700 through HE 2200June 1, Pacific Prevailing Time (“PPT”)) or within the day of delivery2013 and/or June 1, (b) to a point of delivery as described in this RFP 2009. Action Item Additional Type Delivery Start Term Size Location Action #7 Supply- side FY2010 (Summer CY2009) Up to 35 years or the life of an Asset 525 MW Utah Procure one or more flexible resources in or delivered to Utah by the summer of CY20092014. For each proposal submitted by a Bidder, the Bidder must submit its individual proposal under only one of the eight Resource Alternatives or one of the two exceptions listed below. The Company will not consider a proposal unless the Bidder has selected one of the eight alternatives or one of the two exceptions of Eligible Resources listed in the Request for Qualifications (Appendix A and Appendix B). One Bidder may submit more than one proposal, but each proposal can be for only one Resource Alternative Alternative, which must specify the year within the Term or specify the Company’s options within the Term for the Eligible Resource, designated by the Bidder. If the Bidder submits the same Eligible Resource proposal in different years or in the form of an alternative proposal however, it is the same resource, the proposal will be considered one proposal with two alternatives and the Bidder will receive three separate bid numbers for the resource. The Company will not accept proposals where the Bidder retains the option to displace any resource for economic reasons and/or where the Bidder holds the unilateral option to select one or more alternate Point(s) of Delivery. In addition, the Company will not accept any proposal that provides for planned maintenance or planned derates (as defined by NERC) during the months of June through September or December through February in any year. If a Bidder is submitting a proposal under any of the Eligible Resources that might be constructed in Utah and which require the engagement of one or more contractors (each a “Contractor”) for purposes of constructing or modifying a physical facility, the Bidder shall, and shall cause the Contractor to award construction contracts and subcontracts of any tier for the Work (i) in compliance with the requirements of U.S. federal and Utah state laws and regulations and (ii) on a “Merit Shop” basis or (iii) through a project labor agreement. Each Contractor shall, subject always to the requirements of law or regulation or applicable collective bargaining agreement, and to the fullest extent commercially reasonable, perform the Work using a majority of Utah labor. Each Contractor shall, and shall require each of its subcontractors to, refrain from any discrimination against any employee on the basis of that employee’s membership or non-non- membership in any labor organization. Contractor shall, and shall require its subcontractors to, comply with all applicable requirements of law or regulation regarding labor relations and employment matters. Any administrative or civil proceedings related to labor relations or employment matters related to the Work and filed against the Contractor or any subcontractor shall be promptly reported to Company. Nothing in this provision shall affect any obligation of any Contractor or its subcontractors pursuant to a collective bargaining agreement applicable to some or all of its performance of the Work or obligations pursuant to the Contract. Subject to the exception outlined below for distributed generation, Qualifying Facilities (“QFs”), as defined under the regulations implementing the Public Utility Regulatory Policies Act of 1978 (“PURPA”), with 100 10 MW or greater of capacity are eligible to participate in this RFP 20092012. Firm QFs with 100 10 MW or greater of capacity and a minimum term of ten years or longer that elect to pursue traditional PURPA contracts rather than to participate in this RFP 2009 will not be eligible for capacity payments fall under the traditional PURPA contract. Eligible Resource exception as outlined in Section B. Each QF Bidder must submit the required information in Attachment 2 in order to be evaluated under this RFP 20092012. Any QF Bidder that has a question regarding these provisions is instructed to contact the IE.