AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF ELECTRICITY
This Amendment is entered into as of the date of its execution by and
between AR WEST HYDROELECTRIC FUND, LTD., a Utah Limited Partnership,
hereinafter referred to as "FAR WEST" and SIERRA PACIFIC POWER COMPANY, a Nevada
corporation, hereinafter referred to as "SEIRRA" Far West and Sierra are
sometimes referred to collectively as "Parties".
WITNESSETH
WHEREAS, an Agreement for the Purchase and Sale of Electricity
(hereinafter referred to as the "Power Purchase Agreement") was entered into
between Geothermal Development Associates, a Nevada corperation (hereafter,
"GDA"), and Sierra for the purchase of all electricity generated by GDA's pilot
plant located in the Steamboat Springs area; and
WHEREAS, effective December 1, 1985, GDA assigned the Power Purchase
Agreement to Ormat Systems, Inc.; Ormat Systems further assigned the Power
Purchase Agreement to Bonneville Pacific Corporation; Bonneville Pacific
Corporation further assigned the Power Purchase Agreement to Far West Capital
Inc.; finally, Far West Capital, Inc.
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assigned the Power Purchase Agreement to Far West Hydroelectric Fund, Ltd.,
the current Seller under the Power Purchase Agreement; and
WHEREAS, Far West Hydroelectric Fund, Ltd. and Sierra desire to extend the
term of the Power Purchase Agreement to provide greater certainty of payments to
be made during such extended term of the Agreement; and
WHEREAS, Far West Hydroelectric Fund, Ltd. and Sierra now wish to amend
the Power Purchase Agreement to reflect the extension of the term and the rates
to be paid for such term.
NOW, THEREFORE, the Parties hereto mutually agree as follows:
1. EFFECTIVE DATE
This Amendment shall be effective upon the date of its execution.
2. TERM
Section 4, Term, of the Power Purchase Agreement is herby amended to read
as follows:
"This Agreement shall be effective upon the date of its execution and shall
continue until midnight on December 5, 2006, and shall continue thereafter
from year to year pursuant to the terms and conditions hereunder unless
terminated by one of the Parties."
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3. RATE
Section (3)(a), Rate, of the Power Purchase Agreement is hereby amended to
read as follows:
"For the first ten (10) years beginning on 1600 hours on December 5, 1986,
for all power purchased from Seller's facility at the Point of Delivery up
to a maximum of 43,800,000 kWH per calendar year, Purchaser shall pay Seller
the sum of $.0717 kWH. Any energy purchased from Seller's facility at the
Point of Delivery in excess of 43,800,000 kWH per calendar year will be
purchased at Sierra's short term avoided cost energy and capacity rates in
effect at that time. Sierra's current short term avoided cost rates
submitted for approval to the PSCN are attached and hereby incorporated
herein by reference as Exhibit A.
In the eleventh year following the commencement of the commercial production
and sale of electricity by Seller's Plant, Purchaser shall pay seller for
the remainder of the term of the Agreement for all power purchased from
Seller's facility at the Point of Delivery in the following manner:
(1) If the total of Sierra's non-time differentiated short term avoided
cost rates for both energy and capacity, as approved by the Public
Service Commission of Nevada ("PSCN") for the first
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calendar quarter of the eleventh year of the Term of the Agreement, is
greater than 6.0583 per kWH, Purchaser shall pay Seller on a time
differentiated basis, ninety percent (90%) of the short term avoided
cost rate for both energy and capacity in effect for the billing period
during which the meter reading took place, but in an event shall the
non-time differentiated rate be less than $.0700 per kWH and shall not
be greater than $.0900 per kWH; or
(2) If the total of Sierra's non-time differentiated short term avoided
cost rates for both energy and capacity, as approved by the PSCN for
the first calendar quarter of the eleventh year of the Term of the
Agreement, is equal to or smaller $.0563 per kWH, Purchaser shall pay
Seller on a time differentiated basis, the short term avoided cost
rates for both energy and capacity approved by the PSCN and in effect
for each billing period thereafter.
Seller agrees to comply with Purchaser's Electric Rules No. 2 and 15, all
special conditions of Schedule CSPP, and all subsequent revisions of said
Schedule and Rules."
4. NOTICES
The parties to whom notice is to be given pursuant to Section 18, Notices,
of the Power Purchase Agreement are hereby changed to the following:
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SELLER: Far West Hydroelectric Fund, Ltd.,
Attn: Xxxxxx X. Xxxxx
0000 Xxxx Xxxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxx 00000
PURCHASER: Sierra Pacific Power Company
Attn: Vice President, Electric System Planning
X.X. Xxx 00000
Xxxx, Xxxxxx 00000
5. INSURANCE
SECTION 16 B(c) of Additional Insurance Provisions is hereby amended and
reads as follows:
"(c) All insurance certificates, and a thirty (30) day advance notice of
cancellations, terminations, alterations and material changes of such
insurance shall be issued and submitted to Purchaser as provided for in
Section 18."
6. ASSIGNMENT
SECTION 22, ASSIGNMENT, of the Power Purchase Agreement is hereby amended to
read as follows:
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"Neither Party shall voluntarily assign this Agreement without the prior
written consent of the other Party except that either Party shall have the
right, without the other Party's consent, but with a thirty (30) day prior
written notice to the other Party, to make a collateral assignment of its
rights under this Agreement to satisfy the requirements of any development,
construction, or other long term financing. Such consent shall not be
unreasonably withheld. Any assignment made without such consent shall be
void.
7. STATUS OF AMENDMENT
It is expressly understood and agreed by the Parties hereto that this
Amendment is supplemental to the Power Purchase Agreement. It is further
understood and agreed that all the terms, conditions, and provisions of the
Power Purchase Agreement, unless specifically modified herein, are to apply
to this Amendment and are made part of this Amendment as though they where
expressly rewritten, incorporated and included herein.
8. PSCN APPROVAL
Sierra and Far West will operate pursuant to the provisions of this
Amendment upon its execution. The obligation of Sierra to purchase capacity
and energy from Seller pursuant to this Amendment is hereby made expressly
conditional on the approval of this Amendment by the PSCN. Sierra shall take
all reasonable actions necessary to secure approval by the PSCN of this
Amendment in its entirely and without
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change. PSCN approval shall be sought as soon as reasonably practicable
subsequent to the date of execution of this Amendment. Failure of the PSCN
to approve this Amendment shall terminate this Amendment effective as of the
date of such PSCN action in which case the obligations of the Parties will
remain as specified in the Power Purchase Agreement and the Power Purchase
Agreement shall automatically be reinstated as it existed prior to the
execution of this Amendment.
IN WITHNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed in their respective names, first above written.
Dated this 6th day of March, 1987
SELLER:
FAR WEST HYDROELECTRIC FUND, LTD.,
a Utah limited partnership
By: FAR WEST CAPITAL, INC.,
a Utah corporation
Its General Partner
By: /s/ illegible
----------------------
Its Vice President
Date : 3/6/87
PURCHASER:
SIERRA PACIFIC POWER COMPANY
BY: /s/ illegible
------------------------
TITLE: Sr. Vice President
Planning, Engineering
& Construction
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SCHEDULE NO. CSPP
SHORT-TERM RATES
COGENERATION AND SMALL POWER PRODUCTION
APPLICABILITY
This schedule is applicable only to purchase from Qualifying Facilities as
defined in Utility's Nevada Electric Xxxxxx Xx. 0 Rule No. 15 under a Short-term
Purchase Agreement with Utility and where no other schedules are specifically
applicable.
RATES
Utility will pay the sum of the following rates for the energy and
capacity provided as determined by meter readings:
(1) ENERGY RATE
a. Time-differentiated: 0000
0xx Xxxxxxx
Xxxxxx Jan 1 - Mar 31
--------------
All On-Peak kWh, per kWh $0.02020
plus all Mid-Peak kWh, per kWh $0.02011
plus all Off-Peak kWh, per kWh $0.01957
Summer
All On-Peak kWh, per kWh Not Applicable
plus all Off-Peak kWh, per kWh Not Applicable
b. Non-time differentiated: (See Special Condition 3)
All kWh, per kWh $0.01993
(Continued)
Issued: 1/15/87
Issued By:
Effective: 1/15/87 Xxxxxx X. Xxxxxxx
President
Advice No.: 252-E
SCHEDULE NO. CSPP
SHORT-TERM RATES
COGENERATION AND SMALL POWER PRODUCTION
(Continued)
(1) CAPACITY RATE
a. Time-differentiated: 0000
0xx Xxxxxxx
Xxxxxx Jan 1 - Mar 1
--------------
All On-Peak kWh, per kWh $0.01511
plus all Mid-Peak kWh, per kWh $0.00256
plus all Off-Peak kWh, per kWh $0.00013
Summer
All On-Peak kWh, per kWh Not Applicable
plus all Off-Peak kWh, per kWh Not Applicable
b. Non-time differentiated: (See Special Condition 3)
All kWh, per kWh $0.00754
SPECIAL CONDITIONS
1. The payment period for Utility purchases hereunder shall be the time
interval between two consecutive meter readings that are taken for billing
purposes.
2. The Utility and the Qualifying Facility shall have executed a Short-term
Purchase Agreement for the purchase and sale of capacity and energy.
3. Qualifying Facilities having rated (nameplate) capacities of 100 kW or
less shall have the option to choose either flat or time-differentiated rates
Qualifying Facilities having rated (nameplate) capacities in excess of 100 kW
will receive payments based on the time-differentiated rates only.
(Continued)
Issued: 1/15/87
Issued By:
Effective: 1/15/87 Xxxxxx X. Xxxxxxx
President
Advice No.: 252-E
SCHEDULE NO. CSPP
SHORT-TERM RATES
COGENERATION AND SMALL POWER PRODUCTION
(Continued)
SPECIAL CONDITIONS, (Continued)
4. Daily time periods will be based on Pacific time and are defined as
follows:
Winter period On-Peak 5:01 p.m. to 10:00 p.m. daily
Mid-Peak 7:00 a.m. to 5:00 p.m. daily
Off-Peak All other hours
Summer Period On-Peak 10:01 a.m. to 10:00 p.m. daily
Off-Peak All other hours
The winter period will consist of eight months from October through May. The
summer period will consist of four months from June through September.
5. Qualifying Facilities providing energy to Utility hereunder shall be
entitled to receive electric service from Utility on the filed rates schedule(s)
contained in Utility's Nevada Electric Xxxxxx Xx. 0 applicable to the type and
location of the Qualifying Facility.
6. All purchases made under this schedule are subject to the provision of
Rule No. 15 as contained in Utility's Nevada Electric Tariff No. 1.
Issued: 6/23/86
Issued By:
Effective: 6/23/86 Xxxxxx X. Xxxxxxx
President
Advice No.: 249-E
(Revised)
