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(a) Operating energy delivered in accordance with paragraphs 6.1, 6.2 (a) and 6.3 (a);

(b) Integration energy delivered in accordance with paragraph 6.2 (b):
Class A: When unsalable to other customers of the United States;
Class B: When salable as low availability secondary energy;

Class C: When salable as priority interruptible secondary energy;
Class D: When salable as dump energy.

(c) Integration Firm Energy Capability delivered in accordance with paragraph 6.2 (c).

(d) Storage or other energy transfers under Article VII.

ARTICLE IX. CHARGES FOR SERVICE

9.1 The Company shall pay the United States for energy delivered under this agreement, in accordance with the classifications of the energy as in Article VIII set forth, at the following rates (copies of the rates presently in effect are attached hereto):

(a) Operating energy classified under paragraph 8.3 (a): Such energy shall be exchanged on basis 1 KWH equals 1 KWH.

(b) Integration energy classified under paragraph 8.3 (b):

Class A: No charge;

Class B: at Bonneville Power Administration Rate No S-1 in effect at the time;

Class C: at Bonneville Power Administration Rate No C-4 (as amended for Priority Interruptible Power) in effect at the time;

Class D: at Bonneville Power Administration Rate No H-3 in effect at the time.

(c) Integration Firm Energy Capability classified under paragraph 8.3 (c):— at Bonneville Power Administration Rate No C-4 in effect at the time.

9.2 Under this agreement, the Company will perform the services to the United States set forth in Article V at no cost to the United States, except as provided in paragraph 9.1 (a) above; provided, however, that such arrangement shall be subject to review each five years, and by written agreement such charges as may become appropriate shall be made.

9.3 The accounting period for settlements hereunder shall be the calendar month, unless otherwise agreed upon by the parties.

9.4 All bills for net amounts owed by Company to United States hereunder, except as otherwise herein provided, shall be due and payable on the fifteenth day of the month following the end of the period to which the bill is applicable, or on the tenth day following receipt by Company of a properly certified invoice or voucher, whichever date is later. In the event a portion of a bill, or of any other claim or adjustment arising hereunder, is disputed, payment shall be made when due of the portion not in dispute.

ARTICLE X. METERING AND POWER FACTOR

10.1 Electric energy will be made available to either party hereunder in the form of three phase current, alternating at a frequency of approximately sixty (60) cycles per second. Deliveries thereof at each point of delivery shall be made at the approximate voltage provided by the parties' facilities, and during the period specified, for such point. The amounts of electric energy and reactive power delivered at such point of delivery during each hour shall be the amounts determined, after making such adjustments for losses as may be indicated by using factors to be agreed upon by Operating Representatives, from measurements made by the United States' watt-hour, var-hour, and demand meters, respectively, installed, or to be installed, to record the flow of electric energy and reactive power at the place and in the circuit specified.

10.2 The United States will test the metering equipment owned by it at least once every two years, and if it is found to be inaccurate, will adjust or replace it. The Company will be given reasonable notice of the time when such tests will be made, and may have a representative present. At the request of the Company, the United States will make additional tests or inspections of the metering equipment owned by the latter in the presence of representatives of the Company, and the cost thereof will paid by the Company if the percentage of error is found to be less than two percent (2%) slow or fast.

10.3 If any test made shows any meter to be inaccurate by more than two percent (2%), or if any meter fails to register, an appropriate adjustment will be made in the amount of power delivered (a) for the actual period of incorrect

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meter registration, if such period can be established, or (b) if not, for half the period from the date of the last preceding test of metering equipment; provided, however, that such period of adjustment shall not exceed six (6) months.

10.4 Each of the parties hereto will jointly plan and operate its system for mutual advantage and so that the flow of reactive power hereunder will not adversely affect the system of the other.

10.5 If any equipment or facilities of a party to this contract are, or are to be by the terms of this contract, located on the property of the other, a permit to install, test, maintain, inspect, replace, and repair during the term of this contract and to remove at the expiration of said term, such equipment and facilities, together with the right of ingress and egress at all reasonable times in such term, is hereby granted by the other party.

10.6 Each party shall have the right to read or inspect, at all reasonable times, upon request made to the other party, any and all meters mentioned in this contract which are installed on the property of such other party.

ARTICLE XI. UNCONTROLLABLE FORCES AND LIABILITY

11.1 Neither party shall be considered to be in default in respect to any obligation hereunder, if prevented from fulfilling such obligation by reason of uncontrollable forces. The term uncontrollable forces, for the purpose of this contract, shall mean any cause beyond the control of the party affected, including, but not limited to, failure of facilities, flood, earthquake, storm, lightning, fire, epidemic, act of God, war, riot, civil disturbance, strike, labor disturbance, or sabotage, which by exercise of due diligence and foresight such party could not reasonably have been expected to avoid. Either party rendered unable to fulfill any obligation by reason of uncontrollable forces shall exercise due diligence to remove such inability with all reasonable dispatch.

11.2 Each party shall defend and indemnify the other party against liability, loss, costs and expenses on account of injury (including death) to persons or destruction of or damage to property occasioned on or adjacent to the facilities on its side of the delivery points described herein, unless such'injury or damage resulted from the sole negligence of the other party or of its officers, servants, agents or employees; provided, however, that each party shall be solely responsible for the claims of and payments to its employees and agents for injuries (including death) occurring in connection with their employment or arising out of any workmen's compensation law.

ARTICLE XII. GENERAL PROVISIONS

12.1 This agreement does not cancel, amend or otherwise affect Contract No. 14-03-001-11493, dated March 14, 1955, between the parties.

12.2 Nothing in this agreement shall be construed as a restriction or limitation on the Administrator to sell to preference or other customers of the United States the firm power which would be available to the Administrator without the exist ence of this agreement.

12.3 Nothing in this agreement shall be construed as a restriction or limitation on the Company in the sale of power and energy available to the Company hereunder, or in any way affecting the ability of the Company to perform its public utility responsibility to its customers in the areas now served and as such areas may be extended during the term of this agreement.

13.1

ARTICLE XIII. ARBITRATION

If at any time any dispute, difference or question shall arise between the parties concerning the application, construction or meaning of any of the terms or provisions of this agreement, except those dealing with rates and payment for power and energy, upon demand of either party the matter will be referred to arbitration. An offer of such reference to arbitration will be a condition precedent to any proceeding at law or in equity concerning such dispute, difference, or question: provided, however, that either party may without arbitration bring a proceeding to enjoin breach of this agreement.

13.2 Either party may serve written notice of demand for arbitration, naming one arbitrator. The party served with such notice shall appoint a second arbitrator, and the two so appointed shall appoint a third. In case of failure of the party served with notice to appoint a second arbitrator within ten (10) days, or failure of the two first appointed to appoint a third within ten (10) days after the appointment of the second, then the party demanding arbitration may, after

five (5) days' notice to the other party, apply for appointment of the second or third arbitrator, as the case may be, to any person who is a Judge of the United States District Court in Idaho or Oregon.

13.3 The arbitrators will hear such evidence as is submitted by the parties and will proceed to make a determination; provided, however, that the arbitrators will be entitled to call upon either party for additional information. The decision of a majority of the arbitrators will be binding upon the parties with respect to the matter submitted. All expenses of arbitration will be paid equally by the parties except that the compensation, if any, of the first and second members of the board of arbitration will be paid by the party by or for whom they were named.

ARTICLE XIV. INTEREST OF MEMBER OF CONGRESS

14.1 No member of or delegate to Congress or resident commissioner shall be admitted to any share or part of this agreement or to any benefit that may arise therefrom, but this provision shall not be construed to extend to this agreement if made with a corporation for its general benefit.

ARTICLE XV. REPRESENTATIVES AND NOTICES

15.1 For the purposes of this agreement, except as may be otherwise specifically provided herein, and until receipt of further notice in writing to the contrary, either party shall be entitled to regard as the authorized representative of the other person designated below:

Representative of United States: Administrator, Bonneville Power Administration

Representative of Company: President, Idaho Power Company

15.2 Any notice to be given by one party to the other in accordance with the provisions of this agreement, or with respect to a matter relating hereto, shall be deemed to be adequately given if sent by registered mail, deposited in a United States post office in Idaho or Oregon one day before the day as of which the notice is intended to be given, and addressed as follows:

Notice to United States, addressed to the

Administrator

Bonneville Power Administration
Portland 8, Oregon

Notice to Company, addressed to the

President, Idaho Power Company

1220 Idaho Street

Boise, Idaho

Either party may from time to time specify by notice in writing a different address to which notices are to be sent.

ARTICLE XVI. TERM AND APPROVAL OF CONTRACT

16.1 This agreement shall become effective as of the date first above written (subject to the provisions of paragraph 16.2), and shall remain in effect during the term of the Company's Federal Power Commission license (Project No. 1971) to the Company, ending July 31, 2005.

16.2 This agreement shall not be binding upon the parties hereto until it has been approved by the Secretary of the Interior, the Federal Power Commission, the Public Utilities Commissioner of Oregon, the Idaho Public Utilities Commission and the Public Service Commission of Nevada, but when so approved, shall be effective immediately.

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized officers as of the date first herein written.

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Mr. T. E. ROACH,
President, Idaho Power Co.,

Boise, Idaho.

AUGUST 26, 1957.

DEAR MR. ROACH: Since the meeting the other day, at which time we discussed coordination of your projects and the Federal generation, I have contacted the Army engineers and the Pacific Northwest Power Co., and they have agreed to have someone present to represent them at the meeting on Wednesday, September 4, at 8:30 a. m. at the Bonneville office here in Portland.

A second meeting will be scheduled for some time later, at which time it would be desirable if one of your top staff could be present. At this time we would discuss with the aid of these figures some of the policy items.

Sincerely yours,

WM. A. PEARL, Administrator.

BONNEVILLE POWER ADMINISTRATION

Idaho Power Company

with

COORDINATION OF BROWNLEE RESERVOIR

CRITICAL HYDRO 1962-63 LOADS & RESOURCES

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BONNEVILLE POWER ADMINISTRATION

Idaho Power Company with

Coordination of Brownlee
Reservoir

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BASIC DATA FOR COORDINATION AGREEMENT BONNEVILLE POWER
ADMINISTRATION-IDAHO POWER Co.

Presented August 7, 1957, by Idaho Power

REASONS FOR COORDINATION

1. Produce the maximum amount of firm power for the area.

2. Produce the maximum amount of otherwise useful energy for the area.

3. Increase total area firm capability by reason of stream diversity.

4. Increase total area firm capability by reason of load diversity.

5. Provide diversity of peak loads, breakdown reserve, and maintenance outages.

6. Assure to each utility a firm load capability during pool critical water conditions.

7. Distribute equitably the benefits received from headwater improvements. 8. Encourage upstream storage that is needed by the area.

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