HomeMy WebLinkAboutresolution.council.137-23RESOLUTION # 137
(Series of 2023)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN,
COLORADO, APPROVING A POWER PURCHASE AGREEMENT
BETWEEN THE CITY OF ASPEN AND MUNICIPAL ENERGY AGENCY
OF NEBRASKA (RIDGWAY PROJECT), AUTHORIZING THE CITY
MANAGER TO EXECUTE SAID AGREEMENT ON BEHALF OF THE
UTILITIES DEPARTMENT OF THE CITY OF ASPEN, COLORADO.
WHEREAS, there has been submitted to the City Council a power
purchase agreement for the purchase and sale of hydroelectric power, between
The Aspen Utilities Department, an enterprise owned and operated by the City
of Aspen and Municipal Energy Agency of Nebraska (MEAN), a substantially
complete copy of which is attached hereto as Exhibit "D";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ASPEN, COLORADO,
That the City Council of the City of Aspen hereby approves a power
purchase agreement for the purchase and sale of hydroelectric power, between
The Aspen Utilities Department, an enterprise owned and operated by the City of
Aspen and MEAN, a substantially complete copy of which is annexed hereto and
incorporated herein, and does hereby authorize the City Manager to execute said
agreement on behalf of the Utilities Department of the City of Aspen.
INTRODUCED, READ AND ADOPTED by the City Council of the City
of Aspen on the 26'h day of September 2023.
Torre, Mayor
I, Nicole Henning, duly appointed and acting City Clerk do certify that the
foregoing is a true and accurate copy of that resolution adopted by the City
Council of the City of Aspen, Colorado, at a meeting held on the 261h day of
September 2023.
r
Nicole HenAig, City Clerk
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POWER PURCHASE AGREEMENT
BETWEEN
CITY OF ASPEN AND MUNICIPAL ENERGY AGENCY OF NEBRASKA
This Power Purchase Agreement ("Agreement") is made and entered into this day of
September 26. 2023 , ("Effective Date") by and between the Municipal Energy Agency of
Nebraska, hereinafter referred to as "Buyer", and on behalf of its successors and assigns, and the
Aspen Electric Department of the City of Aspen, Colorado, hereinafter referred to as "Seller",
and on behalf of its successors and assigns. Buyer and Seller may be hereinafter referred to
collectively as the "Parties" and individually as a "Party".
1. RECITALS:
1.1 The Aspen Electric Department, established by the City of Aspen Municipal Code
Section 25.04.010, is an enterprise under Article X §20(2)(d) of the Colorado
Constitution and is owned and operated by the City of Aspen.
1.2 Municipal Energy Agency of Nebraska is a political subdivision and public
corporation of the State of Nebraska.
1.3 The City of Aspen has developed a renewable resource program designed to
promote the development of electric energy resources and has charged the Aspen
Electric Department to implement the program.
1.4 Tri-County Water Conservancy District, a public and quasi municipal corporation
("Tri-County"), owns and operates the Tri-County Hydropower Generating
Facility located in Ouray County, Colorado approximately six miles north of the
Town of Ridgway at the Ridgway Reservoir Dam, hereinafter referred to as the
"Site" and defined below.
1.5 Tri-County produces electric energy through the utilization and operation of one
or more hydropower generators at the Site ("Facility").
1.6 Pursuant to the Amended and Restated Power Purchase Agreement executed by
and between Seller and Tri-County ("Tri-County Agreement"), Seller purchases
from Tri-County capacity and energy generated during each year subject to the
terms and conditions set forth in the Tri-County Agreement, with the intent to
resell a portion of the capacity and energy to Buyer under the terms and
conditions set forth in this Agreement.
Now, therefore, in consideration of the mutual covenants and agreements set forth herein, and for
other good and valuable considerations, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
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2. DEFINITIONS:
For purposes of this Agreement, all terms used herein with initial capital letters, and not
otherwise textually defined, shall have the definitions ascribed to them in this Section 2;
terms used herein with initial capital letters not textually defined and not set forth in
Section 2 shall have the meaning generally ascribed to them and consistent with the
context in which used:
2.1 'Billing Period" is a period of time, normally coinciding with a calendar month,
during which energy generation is aggregated for the purpose of sale by Seller
and purchase by Buyer.
2.2 'Buyer's Share of Output" means the portion of electric energy produced by
the Unit and delivered by Seller to Buyer at the Point of Delivery, measured in
megawatt -hours and calculated as shown in Exhibit 4, attached hereto, and made
a part of this Agreement. For purposes of this Agreement, Output shall include the
Environmental Attributes associated with the electric energy delivered by Seller
to Buyer at the Point of Delivery. Any reference to a proportional amount of
Output refers to the portion of the total electric energy produced by the Unit
which is purchased by Buyer under this Agreement.
2.3 "Effective Date" is the date stated on page one of this Agreement.
2.4 "Energy Rate(s)" is as shown in Exhibit 3, attached hereto, and made a part of
this Agreement.
2.5 "Environmental Attributes" shall mean with respect to a specified quantity of
the electric energy generated by the Unit the right of a purchaser of such
Environmental Attributes to claim under applicable energy generation disclosure
and tracking laws and regulations, any and all of the value associated with the
generation of such electric energy, including: any green tags, tradable renewable
certificates or similar renewable energy certificates, credits, values or premiums
associated with such renewable energy generation; any output -based incentive,
allocation, credit, value, set -aside allowance or non -energy attribute relating to or
arising out of the production of renewable energy generation on a capacity and/or
energy basis, and the resulting emission and greenhouse gas reductions; whether
any of the foregoing arises pursuant to existing or future energy generation
disclosure and tracking laws and regulations, or existing or future certification,
certification program, trading market or exchange; provided, however, that for
purposes of this Agreement, Environmental Attributes shall specifically exclude
any and all state and federal production tax credits, investment tax credits and any
other tax credits of any nature which are or will be available to Seller in
connection with the electric energy generated by the Unit.
2.6 "Interconnection Facilities" means all of the necessary electrical connection
facilities which have been or must be installed or modified for the purpose of
interconnecting the Unit to Tri-State Generation and Transmission Association,
Inc. at the Site. Interconnection Facilities include, but are not limited to, metering
equipment, transformers and associated equipment, distribution lines and
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equipment, communications and telemetering equipment, protective devices and
safety equipment.
2.7 "Interconnection Point" means the point of interconnection of the Facility from
the interconnection provider's electric system to the Point of Delivery as defined
below
2.8 "Metered Energy" is the monthly electric energy output from the Unit, measured
at the Point of Delivery.
2.9 "Output" means the electric energy produced by the Unit.
2.10 "Point of Delivery" shall mean the Tri-State Generation and Transmission
Association, Inc. meter located in the Cow Creek substation as depicted on
Exhibit 5, attached hereto, and made a part of this Agreement, unless mutually
agreed to hereinafter by Seller and Buyer, also known as "Point of Change of
Ownership."
2.11 "Site" means all components of Tri-County Hydropower Generating Facility
located in Ouray County, Colorado approximately six miles north of the Town of
Ridgway at the Ridgway Reservoir Dam, as described in Exhibit 2, attached
hereto, and made part of this Agreement, and Tri-County's interconnection
facilities needed to produce electricity and deliver such electricity to the
Interconnection Point, as described in Exhibit 5.
2.12 "Term" means the total length of time during which the obligation of the Seller
to deliver electric energy to the Buyer pursuant to the terms of this Agreement.
2.13 "Unit" means two (2) Francis turbine generators and associated equipment
having a maximum collective net rated output of 8 MW, as described in Exhibit 1,
attached hereto, and made a part of this Agreement.
2. SALE:
3.1 Upon execution of this Agreement, Seller shall sell and deliver to Buyer and
Buyer shall purchase and receive from Seller at the Point of Delivery the portion
of capacity and Output as calculated in accordance with Exhibit 4 from the Unit
generated year-round for the Term of this Agreement pursuant to the summer and
winter rates set forth in Exhibit 3.
3.2 Buyer's Share of the Output has been designated by Buyer as a network resource
on the Tri-State Generation and Transmission Association, Inc. system.
3.3 It shall be Buyer's sole responsibility to make all the necessary arrangements for
the transmission of energy associated with Buyer's Share of the Output from the
Point of Delivery, including scheduling, accounting, and billing, with the
appropriate control area operators and/or transmission providers. Any wheeling
charges or other costs associated with transmission beyond the Point of Delivery
shall be the sole responsibility of Buyer. This includes any costs associated with
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transmission system curtailments and costs for additional points of delivery
required by Buyer beyond the Point of Delivery.
3.4 Seller shall communicate to Buyer and/or its designated Agent the amount of
energy expected to be delivered on an hourly basis under this Agreement by such
means as the Parties shall mutually agree upon.
4. TERM AND TERMINATION,• AND OPTION TO EXTEND:
4.1 This Agreement shall be in force and effect for a term of October 1, 2023 through
April 30, 2034, unless otherwise extended by the Parties.
4.2 The breach of any material representation, warranty or obligation included in this
Agreement, shall be deemed a default under this Agreement. Upon such default,
the non -defaulting party shall provide the defaulting Party with written notice of
default pursuant to Section 23 of this Agreement. Such written notice shall set
forth, in reasonable detail, the nature of the default. The defaulting Party shall
have sixty (60) days from such written notice to cure the default. In the event the
default is not cured the non -defaulting Party shall have the right to terminate this
Agreement.
4.3 Option to Extend Term. Buyer acknowledges that the Tri-County Agreement term
ends on April 30, 2034, and Seller has an option to extend the Tri-County
Agreement for the purchase of Output if the terms of extension are agreeable to
Tri-County and Seller. Buyer may request this Agreement be extended for an
additional period, which extension shall be subject to renegotiation of the terms of
this Agreement (the "New Terms") including, without limitation, the rate,
escalation factor and term of years, and shall be subject to Seller extending the
Tri-County Agreement through the term of the extension of this Agreement. If
Buyer desires to extend the Term of this Agreement, Buyer shall deliver written
notice to Seller requesting an extension on or before the date that is two (2) years
prior to the end of the Term. If Seller approves Buyer's request (which may be
approved or denied in Seller's discretion) then Seller and Buyer shall begin
discussions regarding the New Terms. If Buyer fails to give timely notice of its
request for an extension, if Seller denies Buyer's request, if Seller does not
respond prior to the end of the Term or if Seller and Buyer fail to agree in writing
on the New Terns of the Agreement before three hundred and sixty-five (365)
days prior to the end of the Term, then this Agreement shall terminate at the end
of the Tern.
5. DETERMINATION OF ENERGY DELIVERED:
5.1 The cost of Buyer's Share of Output shall be calculated using the applicable rate
set forth in Exhibit 3.
5.2 The Buyer's Share of Output shall be delivered to Buyer at the Point of Delivery,
which shall be deemed the point of sale, and purchased by Buyer.
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6. BILLING AND PAYMENT:
6.1 Billing and payment arrangements shall be as set forth on Exhibit 6, attached
hereto and made part of this Agreement.
7. METERING:
7.1 It is the Parties' intent that Tri-State Generation and Transmission Association,
Inc. shall own, operate and maintain all necessary meters, dedicated potential and
current transformers, and associated equipment to be utilized for the measurement
of energy for determining Seller's payments to Tri-County under the Tri-County
Agreement. Buyer and Seller agree to utilize such measurement data to determine
Buyer's payments to Seller pursuant to this Agreement. Metering equipment is
installed at the Point of Delivery and shall be used to measure the Metered Energy.
The Metered Energy shall be used to calculate the Buyer's Share of Output by
means of the formula defined in Exhibit 4. In the event the foregoing metering
arrangement is not in place at any time during the term of this Agreement, then the
following metering arrangements will apply: Under the Tri-County Agreement,
Tri-County shall install, own, operate and maintain, at its own expense, all
necessary meters, dedicated potential and current transformers, and associated
equipment to be utilized for the measurement of energy for determining Seller's
payments to Tri-County under the Tri-County Agreement. Buyer and Seller agree
to utilize such measurement data to determine Buyer's payments to Seller pursuant
to this Agreement. Metering equipment will be installed at the Point of Delivery
and shall be used to measure the Metered Energy. The Metered Energy shall be
used to calculate the Buyer's Share of Output by means of the formula defined in
Exhibit 4.
7.2 A one line drawing depicting the interconnection of the Unit to the Point of
Delivery and the placement of Tri-County's metering installation is set forth in
Exhibit 5.
7.3 Seller will request Tri-County to test the meters as requested by Buyer upon ten
(10) days notice by Buyer, at Buyer's expense. Buyer shall be allowed to have a
representative present to witness any test requested by it and shall be entitled to
receive all test reports of any tests undertaken by Tri-County. Under the Tri-
County Agreement, metering equipment found to be inaccurate by more than 2%
shall be repaired, adjusted, or replaced by Tri-County, at Tri-County's expense.
Any correction in the billing resulting from such repairs, adjustments or
replacements shall be made in the accounting rendered for the next Billing Period
pursuant to Section 6 herein; and such correction, when made, shall constitute full
resolution of any claim between the Parties arising out of such inaccuracy of
metering equipment. The period for which any such correction will be applied
shall be limited to one hundred eighty (180) days prior to the date on which the
Parties agree, in writing, to the resolution of any required correction.
7.4 The Parties shall cooperate in providing such information and reports to each other
and to and from Tri-County relating to this Agreement, including but not limited
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to, metering, testing, the Unit, and the Point of Delivery, as may be reasonably
required from time to time.
8. OPERATION AND MAINTENANCE:
8.1 Seller shall be responsible for any and all costs or charges assessed by Tri-County
under the Tri-County Agreement, including without limitation costs and charges
related to the operation and maintenance of the Unit, if any.
8.2 Employees of Buyer and agents of Buyer shall have the right to visit the Site and
inspect the Unit with reasonable prior
notice given to Seller.
9. INTERCONNECTION:
9.1 Except as otherwise specifically provided for herein, Tri-County shall design,
operate, and maintain, at its own expense, all Interconnection Facilities associated
with the Unit.
9.2 Seller shall provide Buyer with electrical plans and specifications for
Interconnection Facilities upon furnishment of such plans and specifications to
Seller by Tri-County or Tri-State Generation and Transmission Association, Inc.
10. RECITALS AND EXHIBITS MADE PART OF THIS AGREEMENT:
All Recitals and all Exhibits which are referred to herein and attached hereto, and as such
made a part hereof are specifically incorporated into this Agreement as material terms
thereof and, where applicable, not merely for the purpose of example.
11. LIABILITY:
To the extent allowed by law, Seller shall save, defend, and hold harmless, Buyer, its
officers, employees, and agents from any and all claims arising from or related to the
Unit or the Site, including without limitation claims for injury to person or persons or
damage to property occurring at the Unit or the ,Site prior to or, at or after the Point of
Delivery; provided, however, that nothing herein contained shall be construed as
relieving or releasing any Party from liability for injury or damage, wherever occurring,
resulting from its own negligence or the negligence of any of its officers, servants,
employees, or agents; and in the event of concurrent negligence by the Parties, there shall
be contribution; and provided further, that each of the Parties hereto shall be solely
responsible for injury or damage, wherever occurring, due solely to any defect in
equipment installed, furnished, or maintained by such Party. Each Party is solely
responsible for the risk of loss, or damage to, its equipment, unless the loss or damage
results from the negligence or fault of the other Party. Nothing herein shall be
construed or interpreted as denying either party any remedy or defense available to such
party under the laws of the State of Colorado. This clause will survive expiration or
termination of this Agreement.
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12. INSURANCE:
Seller will require Tri-County to obtain and maintain, and cause any contractor or
subcontractor engaged by Tri-County to obtain and maintain, adequate and extended
insurance coverage for (a) all risks of liability to persons or property, (b) interrupted
business operations and (c) in connection with the construction of the facility or any later
occurring improvements thereto, an all-risk builder's policy of insurance. The amounts of
coverage and terms of liability shall be determined by Tri-County and shall be compliant
with the typical amounts and terms associated with the development, construction and
operation of a hydroelectric plant similar in capacity, output and size to the Site.
13. TITLE:
Delivery of energy from Seller to Buyer shall be deemed completed at the Point of
Delivery, and title to such energy shall pass to Buyer upon delivery.
14. WAIVER:
Failure to enforce or insist upon compliance with any of the terms or conditions of this
Agreement shall not constitute a waiver or relinquishment of any such terms or
conditions, but the terms or conditions of this Agreement shall be and remain at all times
in full force and effect.
15. CHOICE OF LAW:
This Agreement shall be construed and enforced in accordance with the laws of Colorado
applicable to agreements made and to be performed entirely within Colorado other than
such laws, rules, regulations and case law that would result in the application of the laws
of a jurisdiction other than the state of Colorado. Any action or other proceeding arising
from this Agreement must be initiated and conducted in an appropriate federal or state
court in the State of Colorado with the exception that both Parties shall agree to the venue
of the proceedings.
16. FORCE MAJEURE:
Subject to the terms and conditions in this Paragraph, no Party to this Agreement shall be
liable for any delay or failure to perform under this Agreement due solely to conditions or
events of force majeure, as that term is specifically defined herein; provided that: (i) the
non performing Party gives the other Party prompt written notice describing the
particulars of the occurrence of the force majeure; (ii) the suspension of performance is
of no greater scope and of no longer duration than is required by the force majeure event
or condition; and (iii) the non -performing Party proceeds with reasonable diligence to
remedy its inability to perform and provides weekly progress reports to the other Party
describing the actions taken to remedy the consequences of the force majeure event or
condition. As used herein force majeure shall mean any delay or failure of a Party to
perform its obligations under this Agreement caused by events beyond the Party's
reasonable control, and without the fault or negligence of the Party, including, without
limitation (a) changes in state or federal law or administrative practice concerning, water
rights administration, water quality or stream flow requirements, (b) any obligation
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imposed upon Tri-County pertaining to the delivery and/or use of its water and all its
associated rights existing thereunder as required by the Bureau of Reclamation, any other
federal or state governmental, (c) acts of God, (d) sudden actions of the elements such as
floods, earthquakes, hurricanes, or tornadoes, (e) sabotage, (f) vandalism beyond that
which can be reasonably prevented by the Party, (g) terrorism, (h) war, (i) riots, 0) fire,
(k) explosion, (1) severe cold or hot weather, (m) snow, (n) drought, (o) other extreme
weather conditions, (p) blockades, (q) insurrection, (r) strike, slow down or labor
disruptions (even if such difficulties could be resolved by conceding to the demands of a
labor group), (s) actions by federal, state, municipal, or any other government or agency
(including but not limited to, the adoption or change in any rule or regulation or
environmental constraint imposed by federal, state or local government bodies) but only
if such requirements, actions, or failures to act prevent or delay performance, (t) inability,
despite due diligence, to obtain required licenses, permits or approvals, and, (u) changes
of law relating to financial obligations, revenues and budgetary matters concerning
Colorado water conservancy enterprises. In the event a force majeure event or condition
prevents Seller from delivering all or part of the agreed upon amounts of electric energy
to Buyer, Seller shall refund all advance payments made, if any, for that energy not
delivered within sixty (60) days of the conclusion of the force majeure event or the
cancellation of the Agreement pursuant to the remaining provisions of this Paragraph. In
no event will any delay or failure of performance caused by any conditions or events of
force majeure extend this Agreement beyond its stated term. In the event any delay or
failure of performance on the part of the Party claiming force majeure continues for an
uninterrupted period of more than one hundred and twenty (120) days from its occurrence
or inception as noticed pursuant to this Paragraph, the Party not claiming force majeure
may, at any time following the end of such one hundred and twenty (120) day period,
terminate this Agreement upon written notice to the Party claiming force majeure,
without further obligation except as to costs and balances incurred prior to the effective
date of such termination.
17. PRIORITY OF ❑ELIVERY:
Seller and Buyer acknowledge that the Tri-County Agreement was made expressly
subordinate to any present or future use of water for any purpose or any other use Tri-
County has incurred or will incur as a result of the present or future terms and conditions
set forth and existing in and through any obligation imposed upon Tri-County pertaining
to the delivery and/or use of its water and all its associated rights existing thereunder as
required by the Bureau of Reclamation, any other federal or state governmental entity
and/or any contract, agreement, treaty, accord or other arrangement into which Tri-
County may enter for the benefit of all persons and/or entities to which it is bound to
deliver its water.
18. ENVIRONMENTAL ATTRIBUTES:
Buyer's Share of Output shall include all associated Environmental Attributes. Seller, or
Tri-County at request of Seller and MEAN, shall present to Buyer an attestation form or
such other form acceptable to Buyer as proper and appropriate for the particular
Environmental Attributes, with each invoice designating the quantity of Environmental
Attributes associated with the relevant invoice period. In the event that Buyer determines
that it requires amendment or modification to the form of attestation to be received from
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Seller with future invoices, Seller agrees to use commercially reasonable efforts to amend
or modify the form of attestation it provides to Buyer, in order to accommodate Buyer's
needs. Seller agrees to provide certification for one hundred percent (100%) of the
Environmental Attributes associated with Buyer's Share of Output and such other
documentation as may be reasonably requested by Buyer from time to time in order to
realize the benefits of the Environmental Attributes. Seller represents and warrants it has
and at all times will have exclusive right to sell the Environmental Attributes that exist
under current laws, rules and regulations called for in this Agreement, limited to the
Buyer's Share of Output, and if there are changes in laws, rules or regulations after the
Effective Date, Seller shall take all actions reasonably necessary to establish and maintain
its exclusive rights to sell and transfer such Environmental Attributes to Buyer, and Seller
further declares that the Environmental Attributes have not been sold or otherwise
transferred to a third party. Seller shall not sell, market, or otherwise transfer
Environmental Attributes arising from Buyer's Share of Output to a third party. Seller's
full and exclusive ownership rights to the Environmental Attributes arising from Output
described herein are not being disputed; and the energy that was generated with the
Environmental Attributes arising from Buyer's Share of Output was not and will not be
separately sold, used, marketed or otherwise represented as renewable energy by Seller
and was not used to meet any federal, state or local renewable energy requirement,
renewable energy procurement, renewable portfolio standard, or other renewable energy
mandate by Seller, or any other party purchasing from the Unit.
19. SUCCESSORS AND ASSIGNS:
This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Parties hereto. Each Party shall have the right to assign all or part of its
rights and interests herein, without prior written consent of the other Party, to any entity
at least a majority of which is owned by such transferring Party. Neither Party, shall be
entitled to assign this Agreement or enter any sublease without the prior written consent
of the other Party, which consent may not be unreasonably withheld (it being understood
that it would be reasonable to withhold consent to any assignment which would adversely
affect the non -assigning Party or the delivery of electric energy under this Agreement).
Any approved assignee or sublessee must first deliver to the non -transferring Party an
agreement binding such assignee or sublessee to this Agreement and containing (a) a
covenant by such assignee or sublessee to perform all of the obligations of the
transferring Party to be performed under this Agreement; and (b) a provision subjecting
any further assignment or sublease to the restrictions contained in this Section 19. Under
no circumstances will any assignment or sublease be allowed if it shall violate the terms
of any license or permit required for performance under this Agreement.
20. APPROVALS:
This Agreement is and shall be subject to the regulatory powers of a state or federal
agency having jurisdiction. Each Party hereto shall use its best efforts and shall cooperate
with the other Party to obtain from all such state and federal authorities as may have
jurisdiction, all authorizations, approvals, and orders to the extent required by law in .
order to enable it to validly enter into this Agreement and to perform all its obligations
herein.
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21. SEVERABILITY:
If any provision of this Agreement or the application thereof to any person or
circumstance shall be invalid, illegal, or unenforceable to any extent, the remainder of
this Agreement and the application thereof shall not be affected and shall be enforceable
to the fullest extent permitted by law. Without limiting the generality of the foregoing
sentence, to the extent that any provision of this Agreement is prohibited or ineffective
under the applicable law, this Agreement shall be considered amended to the smallest
degree possible in order to make the Agreement effective under applicable law.
22. INTEGRATION:
The terms and provisions contained in this Agreement between Buyer and Seller
constitute the entire agreement between Buyer and Seller, and supersede all previous
communications and representations, either oral or written, between Buyer and Seller
with respect to the subject matter and the intended terms of this Agreement.
23. NOTICES:
All notices pursuant to this Agreement shall be in writing and shall be sent only by the
following methods: personal delivery; United States Mail (first-class, certified, return -
receipt requested, postage prepaid); or delivery by a national, overnight courier service
that keeps records of deliveries (including Federal Express, United Parcel Service and
DHL). For purposes of giving notice hereunder, the respective addresses of the Parties
are, until changed as hereinafter provided, the following:
To Seller:
To Buyer:
Attn: Director of Utilities
Aspen Electric Department of the City of Aspen
500 Doolittle Drive
Aspen, CO 81611
justin.forman@aspen.gov
Phone 970 429-1992
Fax 970 920-5117
Attn: Executive Director
Municipal Energy Agency of Nebraska (MEAN)
8377 Glynoaks Drive
Lincoln, NE 68516
b oeliHn nm ever \ .car,,, with a copy to legal(@,ninppenergy.org
Phone 402 474-4759
Any Party may change its address or the designation of the person to be notified at any
time by giving written notice of such change to the other Party in the manner provided
herein. All notices shall be deemed given on the date of personal delivery or, if mailed by
certified mail, on the delivery date or attempted delivery date shown on the return -receipt
or, if sent by courier service, the next business day.
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24. LIMITATION OF LIABILITY:
EXCEPT AS OTHERWISE PROVIDED HEREIN, NEITHER PARTY SHALL BE
RESPONSIBLE OR LIABLE TO THE OTHER PARTY IN CONNECTION WITH
THE TRANSACTIONS) CONTEMPLATED BY THIS AGREEMENT FOR ANY
SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE, PUNITIVE, EXEMPLARY,
LOSS OF PROFITS OR REVENUE, OR SIMILAR DAMAGES, REGARDLESS OF
HOW CHARACTERIZED AND REGARDLESS OF A PARTY HAVING BEEN
ADVISED OF THE POSSIBILITY OR POTENTIAL OF SUCH DAMAGES.
25. INDEMNIFICATION:
Each of the Parties shall, to the extent allowed by law, with respect to any third -party
claims, indemnify, defend, protect and hold the other, its assignees, invitees, employees,
agents and contractors harmless from and against losses, costs, damages, liability or
expenses for physical damage to property and for physical injuries to any person, to the
extent caused by the operations or activities of such Party or those acting by, for or under
such Party. Nothing herein shall be construed or interpreted as denying either party any
remedy or defense available to such party under the laws of the State of Colorado. This
clause will survive expiration or termination of this Agreement.
26. NO PARTNERSHIP:
Nothing contained in this Agreement or any acts of either Party, prior to the Effective
Date of this Agreement shall be deemed or construed by the Parties or by any third
person to create the relationship of principal and agent, partnership, joint venture or any
other association between the Parties, other than the relationship of Seller and Buyer of
electric energy.
27. RELIANCE AND SURVIVAL OF REPRESENTATIONS AND WARRANTIES:
Each of the Parties acknowledges that the other Party has relied and will rely upon the
accuracy of its respective representations and warranties contained herein, which
representations and warranties constitute fundamental terms of this Agreement. All
representations, warranties and covenants granted or assented to in this Agreement, shall
survive the completion of the transactions contemplated herein and each such
representation, warranty, and covenant is a condition of this Agreement, any or all of
which conditions may be waived in whole or in part by the party for whose benefit the
representation is made. The representations and warranties of the parties contained in this
Agreement shall not be discharged, dissolved or terminated by the exercise of any option
or right under Section 4 of this Agreement.
28. DISPUTE RESOLUTION:
The Parties agree that it is in the best interest of both Parties to attempt to resolve
disputes that arise under this Agreement in a prompt and inexpensive manner. To that
end, the Parties commit to use their reasonable efforts to resolve disputes informally. For
all disputes that arise pursuant to this Agreement, the Parties immediately, through their
designated representatives shall negotiate with one another in good faith in order to reach
11
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
resolution of the dispute. In the event that the Parties, through their respective governing
bodies cannot agree to a resolution of any dispute within thirty (30) days after the
commencement of negotiations, either Party may seek available legal remedies.
29. AMENDMENT:
This Agreement may be amended, changed, modified or altered, provided that such
amendment, change, modification or alteration shall be in writing and signed by both
Parties hereto. Any oral representations or modifications concerning this Agreement shall
be of no force or effect unless contained in a subsequent written modification signed by
the Party to be charged.
30. FURTHER ASSURANCES:
Each Party shall execute such additional documents, instruments and assurances as may
be reasonably required from time to time to carry out the terms and intention of this
Agreement or to facilitate any financing of the Facilities, and it shall not unreasonably
withhold, condition or delay its compliance with any reasonable request made by the
other Party. In addition, the Parties agree to work together in good faith to make
necessary or desired changes to the terms and conditions of this Agreement to honor the
intent of this Agreement in the event the applicable balancing authority or transmission
service provider joins a regional transmission organization or independent system
operator or otherwise transfers functional control to another entity. Notwithstanding the
foregoing, no such changes shall affect or modify the rate for energy, capacity and
Environmental Attributes unless such change is set forth in an amendment to this
Agreement and signed by authorized representatives of both Parties.
31. TIME:
Time is of the essence hereof.
32. CONSTRUCTION:
Unless the context otherwise requires: (a) words of any gender shall be deemed to
include each other gender and the neutral; (b) words using the singular or plural number
shall also include the plural or singular number, respectively; (c) the words "hereof,"
"herein" and "hereunder" and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement,
and section or paragraph references are to the sections or paragraphs of this Agreement
unless otherwise specified; (d) the word "including" and words of similar import when
used in this Agreement shall mean "including, without limitation," unless otherwise
specified; (e) "or" is not exclusive; (f) all terms in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered pursuant
hereto unless otherwise defined therein; (g) any agreement, instrument, statute or
regulation defined or referred to herein or in any instrument or certificate delivered in
connection herewith means such agreement, instrument, statute or regulation as from
time to time amended, modified or supplemented and includes (in the case of agreements
or instruments) references to all attachments thereto and instruments incorporated therein;
(h) any references to a person are also to its legal representatives, successors, and
12
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
permitted assigns and (i) any reference to a monetary amount shall be a reference to
lawful money of the United States. Any reference herein to a "day" or number of "days"
(without the explicit qualification of "business") shall be deemed to refer to a calendar
day or number of calendar days. If any action or notice is to be taken or given on or by a
particular calendar day, and such calendar day is not a business day, then such action or
notice may be taken or given on the next succeeding business day. A "business day"
means any day other than a Saturday, a Sunday or a day on which banks in Denver,
Colorado are required or permitted by applicable law to close. This Agreement shall be
deemed the collaborative effort of the Parties and shall not be interpreted more
stringently against either Party.
33. COUNTERPARTS AND ELECTRONIC DELIVERY
This Agreement may be executed in one or more separate counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument. Each counterpart may consist of a number of copies hereof, each signed by
less than all, but together signed by all, of the parties hereto. Copies of documents or
signature pages bearing original signatures, and executed documents or signature pages
delivered by a party by facsimile, or e-mail transmission of an Adobe® file format
document (also known as a PDF file), shall, in each such instance, be deemed to be, and
shall constitute and be treated as, an original signed document or counterpart, as
applicable. Any party delivering an executed counterpart of this Agreement by facsimile,
or e-mail transmission of an Adobe® file format document, also shall deliver an original
executed counterpart of this Agreement, but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of this
Agreement.
[SIGNATURE PAGE FOLLOWING.]
13
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
IN WITNESS WHEREOF, the Parties hereto have caused this Power Purchase Agreement to be
executed in their respective names as of the date and year first above written.
SELLER:
ASPEN ELECTRIC DEPARTMENT OF THE CITY OF ASPEN, COLORADO
aocuSiprved by:
Spyq
By: G, Off 9/28/2023 1 9:45:08 AM PDT
Sara Ott, City Manager Date
DocuSigned by:
L
t 9/27/2023 1 2:57:34 PM MDT
Attest:
Date
BUYER:
MUNICIPAL ENERGY AGENCY OF NEBRASKA
Robert L L Poelhpng ly signed by Robert
Poehlin Date:2023.09.18
B v: g 10:30:19-05'00'
Robert L. Poehling, Executive Director/CEO Date
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DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
LIST OF EXHIBITS
Exhibit I DESCRIPTION OF THE UNIT
Exhibit 2 VICINITY MAP SHOWING THE SITE AND THE GENERAL LOCATION OF
THE UNIT
Exhibit 3 ENERGY RATES
Exhibit 4 CALCULATION OF OUTPUT AND COST
Exhibit 5 INTERCONNECTION AND METERING DESCRIPTION
Exhibit 6 BILLING AND PAYMENT ARRANGEMENTS
15
DocuSign Envelope ID: 62193DE1-CB164FD3-9736-369ADFC4A8AD
EXHIBIT 1
DESCRIPTION OF THE UNIT
The Unit associated with this Agreement shall be two (2) Francis turbine generators, with
maximum collective net rated output of -8- MW, and all related equipment, to be manufactured
and installed along with associated Interconnection Facilities, installed at the Tri-County Water
Hydropower Facility which is located in Ouray County, Colorado approximately six miles north
of the Town of Ridgway at the Ridgway Reservoir Dam.
16
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
EXHIBIT 2
VICINITY MAP SHOWING THE SITE AND THE GENERAL LOCATION OF THE
UNIT
17
_ ]q �tbk�gfeic. � � •ti — �k. •. _ fi;`" _ �.,Qi.}.lslr��'i
_^tom -- � IL �'f7r.' ' 'F • .";'y *n 7•�`,�1 • •l����'s,
ir1 J�•]4'2rs10 = Loft i Are* Ya
��.•ir t err ��.: � �,� ������*, •i
Ridgway
Reservoir
,� tea.:.... � I � • • " � { ~�yyT
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A6AD
EXHIBIT 3
Table of Rates (Capacity & Energy)
Period
Winter Rate
Summer Rate
(Months)
Oct 1-April 30
May 1-Sept 30
($/MWh)
$/MWh
Oct 1, 2023-Sep 30,
70.55
49.00
2024
Oct 1, 2024-Sep 30,
71.97
49.98
2025
Oct 1, 2025-Sep 30, 73.41
50.98
2026
Oct 1, 2026-Sep 30- 74.88
52.00
2027
Oct 1, 2027-Sep
76.38
53.04
30,2028
Oct 1, 2028-Sep
77.91
54.10
30.2029
77.91
55.18
Oct 1, 2029-Sep
30,2030
Oct 1, 2030-Sep 30,
77.91
56.29
2031
Oct 1, 2031-Sep 30,
77.91
57.41
2032
Oct 1, 2032-Sep 30,
77.91
58.56
2033
Oct 1, 2033-April 30,
77.91
N/A
2034
19
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
EXHIBIT 4
CALCULATION OF OUTPUT AND COST
For this Agreement, the Buyer's Share of Output to be purchased by Buyer and delivered by
Seller at the Point of Delivery shall be measured in megawatt -hours as calculated on a monthly
basis using the following formula:
Buyer's Share of Output = (Metered Energy) x (Buyer's Share, as that term is defined
below)
Cost to Buyer = (Buyer's Share of Output) x (Rate from Exhibit 3)
Buyer's Share of Output means the following portion of the total electric energy produced by the
Unit and delivered by Tri-County at the Point of Delivery. The remainder of the total electric
energy produced by the Unit and delivered by Tri-County at the Point of Delivery shall be
considered Seller's share of Output, not Buyer's Share, and shall be excluded from the purchase
and sale obligation under the A eement:
Summer (May through
September)
Winter (October
through April)
Buyer's Share
67%
20%
Seller's Share
33%
80%
Parties will annually review the five year rolling average of Seller's Share of Output to compare
to the estimates of hydropower production set forth in Seller's Exhibit B to its Supplemental
Agreement with MEAN, or any successor agreement thereto, and the Parties agree to update the
split if the 5 year rolling average is materially greater than such estimates.
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DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
EXHIBIT 5
INTERCONNECTION AND METERING DESCRIPTION
RIDGWAY RESERVOIR/DAM
S�Ip 7numum i
A.16KV V IIEIN
I3 nw 7.2 mw
r GINERATM STATION
jI
I!
f
I
E
0
8
d�
F �
POINT Of I POINT OF CHANGE
INTMCM EGTION OP41) OF OWNERSHIP MCI)
Nut
10
i
EA-\ -(�� E�-
ahlblt 5
_r NETWORK UPGRADE INTERCONNECT Interconnection Detail
TRI-STATE GIST SMSTATION
SCHEMATIC - Nw TO SCALE
21
DocuSign Envelope ID: 62193DE1-CB164FD3-9736-369ADFC4A8AD
EXHIBIT 6
BILLING AND PAYMENT ARRANGEMENTS
1. The Cost to Buyer for each Billing Period shall be the product of the Buyer's Share of
Output (in megawatt -hours) delivered to Buyer, pursuant to Section 5 of the
Agreement, during such Billing Period, times the applicable Energy Rate as set forth
in Exhibit 3 of the Agreement.
2. Buyer will create a report each month with the Metered Energy and send it to Tri-
County and Seller. This report will be generated on or about the Ist business day of
the following month and will be in MST, unless otherwise specified. In accordance
with Section 7.1 of the Agreement, the Metered Energy shown on the report shall be
used to calculate the Buyer's Share of Output by means of the formula defined in
Exhibit 4 of the Agreement.
3. If there are any questions about the data, these need to be submitted to Buyer in
writing within -three (3) business days for prompt resolution.
4. Seller shall submit to Buyer by the 1 Oth day of the month an invoice, for the
preceding Billing Period, for the Buyer's Share of Output from the Unit delivered to
Buyer at the Point of Delivery. Such invoices shall include the beginning and end
dates of the Billing Period, the amount of energy delivered to Buyer as determined
from the metering equipment described in Section 7 of the Agreement using the
calculation defined in Exhibit 4, and the total amount due to Seller.
Buyer shall make payment to Seller, by electronic transfer of such payment, within
seven (7) business days following receipt of the invoice from Seller. Payments are
deemed paid on the date they are postmarked or electronically transferred. Absent
proof of postmark, payments shall be deemed paid as of the date the electronic
transfer is received by Seller. Interest on any unpaid amount shall accrue at the rate of
one percent per month or fraction thereof from the date due until the date upon which
payment is made.
6. Information necessary to accomplish electronic transfer of payments due shall be
provided in writing.
7. In the event that any portion of an invoice is in dispute, the amount invoiced shall be
paid in accordance with the terns of #5 of this Exhibit. The Parties shall use their best
efforts to amicably and promptly resolve the dispute. Upon determination of the
correct billing amount, and agreed to by both Parties, the proper adjustment will be
included on the next month's invoice unless other arrangements are agreed to by both
Parties, including a credit for interest on any refunds at the rate of one percent per
month or fraction thereof accruing from the due date of the original invoice to the
date upon which payment is refunded.
22
DocuSign Envelope ID: 62193DE1-Cl316-4FD3-9736-369ADFC4A8AD
POWER PURCHASE AGREEMENT
BETWEEN
CITY OF ASPEN AND MUNICIPAL ENERGY AGENCY OF NEBRASKA
This Power Purchase Agreement ("Agreement") is made and entered into this day of
September 26, 2023 , ("Effective Date") by and between the Municipal Energy Agency of
Nebraska, hereinafter referred to as "Buyer", and on behalf of its successors and assigns, and the
Aspen Electric Department of the City of Aspen, Colorado, hereinafter referred to as "Seller",
and on behalf of its successors and assigns. Buyer and Seller may be hereinafter referred to
collectively as the "Parties" and individually as a "Party".
1. RECITALS:
1.1 The Aspen Electric Department, established by the City of Aspen Municipal Code
Section 25.04.010, is an enterprise under Article X §20(2)(d) of the Colorado
Constitution and is owned and operated by the City of Aspen.
1.2 Municipal Energy Agency of Nebraska is a political subdivision and public
corporation of the State of Nebraska.
1.3 The City of Aspen has developed a renewable resource program designed to
promote the development of electric energy resources and has charged the Aspen
Electric Department to implement the program.
1.4 Tri-County Water Conservancy District, a public and quasi municipal corporation
("Tri-County"), owns and operates the Tri-County Hydropower Generating
Facility located in Ouray County, Colorado approximately six miles north of the
Town of Ridgway at the Ridgway Reservoir Dam, hereinafter referred to as the
"Site" and defined below.
1.5 Tri-County produces electric energy through the utilization and operation of one
or more hydropower generators at the Site ("Facility").
1.6 Pursuant to the Amended and Restated Power Purchase Agreement executed by
and between Seller and Tri-County ("Tri-County Agreement"), Seller purchases
from Tri-County capacity and energy generated during each year subject to the
terms and conditions set forth in the Tri-County Agreement, with the intent to
resell a portion of the capacity and energy to Buyer under the terms and
conditions set forth in this Agreement.
Now, therefore, in consideration of the mutual covenants and agreements set forth herein, and for
other good and valuable considerations, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
2. DEFINITIONS:
For purposes of this Agreement, all terms used herein with initial capital letters, and not
otherwise textually defined, shall have the definitions ascribed to them in this Section 2;
terms used herein with initial capital letters not textually defined and not set forth in
Section 2 shall have the meaning generally ascribed to them and consistent with the
context in which used:
2.1 "Billing Period" is a period of time, normally coinciding with a calendar month,
during which energy generation is aggregated for the purpose of sale by Seller
and purchase by Buyer.
2.2 "Buyer's Share of Output" means the portion of electric energy produced by
the Unit and delivered by Seller to Buyer at the Point of Delivery, measured in
megawatt -hours and calculated as shown in Exhibit 4, attached hereto, and made
a part of this Agreement. For purposes of this Agrccmcnt, Output shall include the
Environmental Attributes associated with the electric energy delivered by Seller
to Buyer at the Point of Delivery. Any reference to a proportional amount of
Output refers to the portion of the total electric energy produced by the Unit
which is purchased by Buyer under this Agreement.
2.3 "Effective Date" is the date stated on page one of this Agreement.
2.4 "Energy Rate(s)" is as shown in Exhibit 3, attached hereto, and made a part of
this Agreement.
2.5 "Environmental Attributes" shall mean with respect to a specified quantity of
the electric energy generated by the Unit the right of a purchaser of such
Environmental Attributes to claim under applicable energy generation disclosure
and tracking laws and regulations, any and all of the value associated with the
generation of such electric energy, including: any green tags, tradable renewable
certificates or similar renewable energy certificates, credits, values or premiums
associated with such renewable energy generation; any output -based incentive,
allocation, credit, value, set -aside allowance or non -energy attribute relating to or
arising out of the production of renewable energy generation on a capacity and/or
energy basis, and the resulting emission and greenhouse gas reductions; whether
any of the foregoing arises pursuant to existing or future energy generation
disclosure and tracking laws and regulations, or existing or future certification,
certification program, trading market or exchange; provided, however, that for
purposes of this Agreement, Environmental Attributes shall specifically exclude
any and all state and federal production tax credits, investment tax credits and any
other tax credits of any nature which are or will be available to Seller in
connection with the electric energy generated by the Unit.
2.6 "Interconnection Facilities" means all of the necessary electrical connection
facilities which have been or must be installed or modified for the purpose of
interconnecting the Unit to Tri-State Generation and Transmission Association,
Inc. at the Site. Interconnection Facilities include, but are not limited to, metering
equipment, transformers and associated equipment, distribution lines and
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
equipment, communications and telemetering equipment, protective devices and
safety equipment.
2.7 "Interconnection Point" means the point of interconnection of the Facility from
the interconnection provider's electric system to the Point of Delivery as defined
below
2.8 "Metered Energy" is the monthly electric energy output from the Unit, measured
at the Point of Delivery.
2.9 "Output" means the electric energy produced by the Unit.
2.10 "Point of Delivery" shall mean the Tri-State Generation and Transmission
Association, Inc. meter located in the Cow Creek substation as depicted on
Exhibit 5, attached hereto, and made a part of this Agreement, unless mutually
agreed to hereinafter by Seller and Buyer, also known as "Point of Change of
Ownership."
2.11 "Site" means all components of Tri-County Hydropower Generating Facility
located in Ouray County, Colorado approximately six miles north of the Town of
Ridgway at the Ridgway Reservoir Dam, as described in Exhibit 2, attached
hereto, and made part of this Agreement, and Tri-County's interconnection
facilities needed to produce electricity and deliver such electricity to the
Interconnection Point, as described in Exhibit 5.
2.12 "Term" means the total length of time during which the obligation of the Seller
to deliver electric energy to the Buyer pursuant to the terms of this Agreement.
2.13 "Unit" means two (2) Francis turbine generators and associated equipment
having a maximum collective net rated output of 8 MW, as described in Exhibit 1,
attached hereto, and made a part of this Agreement.
2. SALE:
3.1 Upon execution of this Agreement, Seller shall sell and deliver to Buyer and
Buyer shall purchase and receive from Seller at the Point of Delivery the portion
of capacity and Output as calculated in accordance with Exhibit 4 from the Unit
generated year-round for the Term of this Agreement pursuant to the summer and
winter rates set forth in Exhibit 3.
3.2 Buyer's Share of the Output has been designated by Buyer as a network resource
on the Tri-State Generation and Transmission Association, Inc. system.
3.3 It shall be Buyer's sole responsibility to make all the necessary arrangements for
the transmission of energy associated with Buyer's Share of the Output from the
Point of Delivery, including scheduling, accounting, and billing, with the
appropriate control area operators and/or transmission providers. Any wheeling
charges or other costs associated with transmission beyond the Point of Delivery
shall be the sole responsibility of Buyer. This includes any costs associated with
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
transmission system curtailments and costs for additional points of delivery
required by Buyer beyond the Point of Delivery.
3.4 Seller shall communicate to Buyer and/or its designated Agent the amount of
energy expected to be delivered on an hourly basis under this Agreement by such
means as the Parties shall mutually agree upon.
4. TERM AND TERMIIVATION• AND OPTION TO EXTEND:
4.1 This Agreement shall be in force and effect for a term of October 1, 2023 through
April 30, 2034, unless otherwise extended by the Parties.
4.2 The breach of any material representation, warranty or obligation included in this
Agreement, shall be deemed a default under this Agreement. Upon such default,
the non -defaulting party shall provide the defaulting Party with written notice of
dcfault pursuant to Section 23 of this Agreement. Such written notice shall set
forth, in reasonable detail, the nature of the default. The defaulting Party shall
have sixty (60) days from such written notice to cure the default. In the event the
default is not cured the non -defaulting Party shall have the right to terminate this
Agreement.
4.3 Option to Extend Term. Buyer acknowledges that the Tri-County Agreement term
ends on April 30, 2034, and Seller has an option to extend the Tri-County
Agreement for the purchase of Output if the terms of extension are agreeable to
Tri-County and Seller. Buyer may request this Agreement be extended for an
additional period, which extension shall be subject to renegotiation of the terms of
this Agreement (the "New Terms") including, without limitation, the rate,
escalation factor and term of years, and shall be subject to Seller extending the
Tri-County Agreement through the term of the extension of this Agreement. If
Buyer desires to extend the Term of this Agreement, Buyer shall deliver written
notice to Seller requesting an extension on or before the date that is two (2) years
prior to the end of the Term. If Seller approves Buyer's request (which may be
approved or denied in Seller's discretion) then Seller and Buyer shall begin
discussions regarding the New Terms. If Buyer fails to give timely notice of its
request for an extension, if Seller denies Buyer's request, if Seller does not
respond prior to the end of the Term or if Seller and Buyer fail to agree in writing
on the New Terms of the Agreement before three hundred and sixty-five (365)
days prior to the end of the Term, then this Agreement shall terminate at the end
of the Term.
5. DETERMINATION OF ENERGY DELIVERED:
5.1 The cost of Buyer's Share of Output shall be calculated using the applicable rate
set forth in Exhibit 3.
5.2 The Buyer's Share of Output shall be delivered to Buyer at the Point of Delivery,
which shall be deemed the point of sale, and purchased by Buyer.
4
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A6AD
6. BILLING AND PAYMENT:
6.1 Billing and payment arrangements shall be as set forth on Exhibit 6, attached
hereto and made part of this Agreement.
7. METERING:
7.1 It is the Parties' intent that Tri-State Generation and Transmission Association,
Inc. shall own, operate and maintain all necessary meters, dedicated potential and
current transformers, and associated equipment to be utilized for the measurement
of energy for determining Seller's payments to Tri-County under the Tri-County
Agreement. Buyer and Seller agree to utilize such measurement data to determine
Buyer's payments to Seller pursuant to this Agreement. Metering equipment is
installed at the Point of Delivery and shall be used to measure the Metered Energy.
The Metered Energy shall be used to calculate the Buyer's Share of Output by
means of the formula defined in Exhibit 4. In the event the foregoing metering
arrangement is not in place at any time during the tern of this Agreement, then the
following metering arrangements will apply: Under the Tri-County Agreement,
Tri-County shall install, own, operate and maintain, at its own expense, all
necessary meters, dedicated potential and current transformers, and associated
equipment to be utilized for the measurement of energy for determining Seller's
payments to Tri-County under the Tri-County Agreement. Buyer and Seller agree
to utilize such measurement data to determine Buyer's payments to Seller pursuant
to this Agreement. Metering equipment will be installed at the Point of Delivery
and shall be used to measure the Metered Energy. The Metered Energy shall be
used to calculate the Buyer's Share of Output by means of the formula defined in
Exhibit 4.
7.2 A one line drawing depicting the interconnection of the Unit to the Point of
Delivery and the placement of Tri-County's metering installation is set forth in
Exhibit 5.
7.3 Seller will request Tri-County to test the meters as requested by Buyer upon ten
(10) days notice by Buyer, at Buyer's expense. Buyer shall be allowed to have a
representative present to witness any test requested by it and shall be entitled to
receive all test reports of any tests undertaken by Tri-County. Under the Tri-
County Agreement, metering equipment found to be inaccurate by more than 2%
shall be repaired, adjusted, or replaced by Tri-County, at Tri-County's expense.
Any correction in the billing resulting from such repairs, adjustments or
replacements shall be made in the accounting rendered for the next Billing Period
pursuant to Section 6 herein; and such correction, when made, shall constitute full
resolution of any claim between the Parties arising out of such inaccuracy of
metering equipment. The period for which any such correction will be applied
shall be limited to one hundred eighty (180) days prior to the date on which the
Parties agree, in writing, to the resolution of any required correction.
7.4 The Parties shall cooperate in providing such information and reports to each other
and to and from Tri-County relating to this Agreement, including but not limited
5
DocuSign Envelope ID: 62193DE1-Cl3164FD3-9736-369ADFC4A8AD
to, metering, testing, the Unit, and the Point of Delivery, as may be reasonably
required from time to time.
8. OPERATION AND MAINTENANCE:
8.1 Seller shall be responsible for any and all costs or charges assessed by Tri-County
under the Tri-County Agreement, including without limitation costs and charges
related to the operation and maintenance of the Unit, if any.
8.2 Employees of Buyer and agents of Buyer shall have the right to visit the Site and
inspect the Unit with reasonable prior
notice given to Seller.
9. INTERCONNECTION:
9.1 Except as otherwise specifically provided for herein, Tri-County shall design,
operate, and maintain, at its own expense, all Interconnection Facilities associated
with the Unit.
9.2 Seller shall provide Buyer with electrical plans and specifications for
Interconnection Facilities upon furnishment of such plans and specifications to
Seller by Tri-County or Tri-State Generation and Transmission Association, Inc.
10. RECITALS AND EXHIBITS MADE PART OF THIS AGREEMENT:
All Recitals and all Exhibits which are referred to herein and attached hereto, and as such
made a part hereof are specifically incorporated into this Agreement as material terms
thereof and, where applicable, not merely for the purpose of example.
11. LIABILITY:
To the extent allowed by law, Seller shall save, defend, and hold harmless, Buyer, its
officers, employees, and agents from any and all claims arising from or related to the
Unit or the Site, including without limitation claims for injury to person or persons or
damage to property occurring at the Unit or the Site prior to or, at or after the Point of
Delivery; provided, however, that nothing herein contained shall be construed as
relieving or releasing any Party from liability for injury or damage, wherever occurring,
resulting from its own negligence or the negligence of any of its officers, servants,
employees, or agents; and in the event of concurrent negligence by the Parties, there shall
be contribution; and provided further, that each of the Parties hereto shall be solely
responsible for injury or damage, wherever occurring, due solely to any defect in
equipment installed, furnished, or maintained by such Party. Each Party is solely
responsible for the risk of loss, or damage to, its equipment, unless the loss or damage
results from the negligence or fault of the other Party. Nothing herein shall be
construed or interpreted as denying either party any remedy or defense available to such
party under the laws of the State of Colorado. This clause will survive expiration or
termination of this Agreement.
6
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4ABAD
12. INSURANCE:
Seller will require Tri-County to obtain and maintain, and cause any contractor or
subcontractor engaged by Tri-County to obtain and maintain, adequate and extended
insurance coverage for (a) all risks of liability to persons or property, (b) interrupted
business operations and (c) in connection with the construction of the facility or any later
occurring improvements thereto, an all-risk builder's policy of insurance. The amounts of
coverage and terms of liability shall be determined by Tri-County and shall be compliant
with the typical amounts and terms associated with the development, construction and
operation of a hydroelectric plant similar in capacity, output and size to the Site.
13. TITLE:
Delivery of energy from Seller to Buyer shall be deemed completed at the Point of
Delivery, and title to such energy shall pass to Buyer upon delivery.
14. WAIVER:
Failure to enforce or insist upon compliance with any of the terms or conditions of this
Agreement shall not constitute a waiver or relinquishment of any such terms or
conditions, but the terms or conditions of this Agreement shall be and remain at all times
in full force and effect.
15. CHOICE OF LAW:
This Agreement shall be construed and enforced in accordance with the laws of Colorado
applicable to agreements made and to be performed entirely within Colorado other than
such laws, rules, regulations and case law that would result in the application of the laws
of a jurisdiction other than the state of Colorado. Any action or other proceeding arising
from this Agreement must be initiated and conducted in an appropriate federal or state
court in the State of Colorado with the exception that both Parties shall agree to the venue
of the proceedings.
16. FORCE MAJEURE:
Subject to the terms and conditions in this Paragraph, no Party to this Agreement shall be
liable for any delay or failure to perform under this Agreement due solely to conditions or
events of force majeure, as that term is specifically defined herein; provided that: (i) the
non performing Party gives the other Party prompt written notice describing the
particulars of the occurrence of the force majeure; (ii) the suspension of performance is
of no greater scope and of no longer duration than is required by the force majeure event
or condition; and (iii) the non -performing Party proceeds with reasonable diligence to
remedy its inability to perform and provides weekly progress reports to the other Party
describing the actions taken to remedy the consequences of the force majeure event or
condition. As used herein force majeure shall mean any delay or failure of a Party to
perform its obligations under this Agreement caused by events beyond the Party's
reasonable control, and without the fault or negligence of the Party, including, without
limitation (a) changes in state or federal law or administrative practice concerning, water
rights administration, water quality or stream flow requirements, (b) any obligation
DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
imposed upon Tri-County pertaining to the delivery and/or use of its water and all its
associated rights existing thereunder as required by the Bureau of Reclamation, any other
federal or state governmental, (c) acts of God, (d) sudden actions of the elements such as
floods, earthquakes, hurricanes, or tornadoes, (e) sabotage, (f) vandalism beyond that
which can be reasonably prevented by the Party, (g) terrorism, (h) war, (i) riots, 0) fire,
(k) explosion, (1) severe cold or hot weather, (m) snow, (n) drought, (o) other extreme
weather conditions, (p) blockades, (q) insurrection, (r) strike, slow down or labor
disruptions (even if such difficulties could be resolved by conceding to the demands of a
labor group), (s) actions by federal, state, municipal, or any other government or agency
(including but not limited to, the adoption or change in any rule or regulation or
environmental constraint imposed by federal, state or local government bodies) but only
if such requirements, actions, or failures to act prevent or delay performance, (t) inability,
despite due diligence, to obtain required licenses, permits or approvals, and, (u) changes
of law relating to financial obligations, revenues and budgetary matters concerning
Colorado water conservancy enterprises. In the event a force majeure event or condition
prcvents Seller from delivering all or part of the agreed upon amounts of electric energy
to Buyer, Seller shall refund all advance payments made, if any, for that energy not
delivered within sixty (60) days of the conclusion of the force majeure event or the
cancellation of the Agreement pursuant to the remaining provisions of this Paragraph. In
no event will any delay or failure of performance caused by any conditions or events of
force majeure extend this Agreement beyond its stated term. In the event any delay or
failure of performance on the part of the Party claiming force majeure continues for an
uninterrupted period of more than one hundred and twenty (120) days from its occurrence
or inception as noticed pursuant to this Paragraph, the Party not claiming force majeure
may, at any time following the end of such one hundred and twenty (120) day period,
terminate this Agreement upon written notice to the Party claiming force majeure,
without further obligation except as to costs and balances incurred prior to the effective
date of such termination.
17. PRIORITY OF DELIVERY:
Seller and Buyer acknowledge that the Tri-County Agreement was made expressly
subordinate to any present or future use of water for any purpose or any other use Tri-
County has incurred or will incur as a result of the present or future terms and conditions
set forth and existing in and through any obligation imposed upon Tri-County pertaining
to the delivery and/or use of its water and all its associated rights existing thereunder as
required by the Bureau of Reclamation, any other federal or state governmental entity
and/or any contract, agreement, treaty, accord or other arrangement into which Tri-
County may enter for the benefit of all persons and/or entities to which it is bound to
deliver its water.
18. ENVIRONMENTAL ATTRIBUTES:
Buyer's Share of Output shall include all associated Environmental Attributes. Seller, or
Tri-County at request of Seller and MEAN, shall present to Buyer an attestation form or
such other form acceptable to Buyer as proper and appropriate for the particular
Environmental Attributes, with each invoice designating the quantity of Environmental
Attributes associated with the relevant invoice period. In the event that Buyer determines
that it requires amendment or modification to the form of attestation to be received from
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Seller with future invoices, Seller agrees to use commercially reasonable efforts to amend
or modify the form of attestation it provides to Buyer, in order to accommodate Buyer's
needs. Seller agrees to provide certification for one hundred percent (100%) of the
Environmental Attributes associated with Buyer's Share of Output and such other
documentation as may be reasonably requested by Buyer from time to time in order to
realize the benefits of the Environmental Attributes. Seller represents and warrants it has
and at all times will have exclusive right to sell the Environmental Attributes that exist
under current laws, rules and regulations called for in this Agreement, limited to the
Buyer's Share of Output, and if there are changes in laws, rules or regulations after the
Effective Date, Seller shall take all actions reasonably necessary to establish and maintain
its exclusive rights to sell and transfer such Environmental Attributes to Buyer, and Seller
further declares that the Environmental Attributes have not been sold or otherwise
transferred to a third party. Seller shall not sell, market, or otherwise transfer
Environmental Attributes arising from Buyer's Share of Output to a third party. Seller's
full and exclusive ownership rights to the Environmental Attributes arising from Output
described herein are not being disputed; and the energy that was generated with the
Environmental Attributes arising from Buyer's Share of Output was not and will not be
separately sold, used, marketed or otherwise represented as renewable energy by Seller
and was not used to meet any federal, state or local renewable energy requirement,
renewable energy procurement, renewable portfolio standard, or other renewable energy
mandate by Seller, or any other party purchasing from the Unit.
19. SUCCESSORS AND ASSIGNS:
This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Parties hereto. Each Party shall have the right to assign all or part of its
rights and interests herein, without prior written consent of the other Party, to any entity
at least a majority of which is owned by such transferring Party. Neither Party, shall be
entitled to assign this Agreement or enter any sublease without the prior written consent
of the other Party, which consent may not be unreasonably withheld (it being understood
that it would be reasonable to withhold consent to any assignment which would adversely
affect the non -assigning Party or the delivery of electric energy under this Agreement).
Any approved assignee or sublessee must first deliver to the non -transferring Party an
agreement binding such assignee or sublessee to this Agreement and containing (a) a
covenant by such assignee or sublessee to perform all of the obligations of the
transferring Party to be performed under this Agreement; and (b) a provision subjecting
any further assignment or sublease to the restrictions contained in this Section 19. Under
no circumstances will any assignment or sublease be allowed if it shall violate the terms
of any license or permit required for performance under this Agreement.
20. APPROVALS:
This Agreement is and shall be subject to the regulatory powers of a state or federal
agency having jurisdiction. Each Party hereto shall use its best efforts and shall cooperate
with the other Party to obtain from all such state and federal authorities as may have
jurisdiction, all authorizations, approvals, and orders to the extent required by law in
order to enable it to validly enter into this Agreement and to perform all its obligations
herein.
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21. SEVERABILITY:
If any provision of this Agreement or the application thereof to any person or
circumstance shall be invalid, illegal, or unenforceable to any extent, the remainder of
this Agreement and the application thereof shall not be affected and shall be enforceable
to the fullest extent permitted by law. Without limiting the generality of the foregoing
sentence, to the extent that any provision of this Agreement is prohibited or ineffective
under the applicable law, this Agreement shall be considered amended to the smallest
degree possible in order to make the Agreement effective under applicable law.
22. INTEGRATION:
The terms and provisions contained in this Agreement between Buyer and Seller
constitute the entire agreement between Buyer and Seller, and supersede all previous
communications and representations, either oral or written, between Buyer and Seller
with respect to the subject matter and the intended terms of this Agreement.
23. NOTICES:
All notices pursuant to this Agreement shall be in writing and shall be sent only by the
following methods: personal delivery; United States Mail (first-class, certified, return -
receipt requested, postage prepaid); or delivery by a national, overnight courier service
that keeps records of deliveries (including Federal Express, United Parcel Service and
DHL). For purposes of giving notice hereunder, the respective addresses of the Parties
are, until changed as hereinafter provided, the following:
To Seller:
To Buyer:
Attn: Director of Utilities
Aspen Electric Department of the City of Aspen
500 Doolittle Drive
Aspen, CO 81611
justin.forman@aspen.gov
Phone 970 429-1992
Fax 970 920-5117
Attn: Executive Director
Municipal Energy Agency of Nebraska (MEAN)
8377 Glynoaks Drive
Lincoln, NE 68516
b oelflili g cinln ever .or , with a copy to legal@nmppenergy.org
Phone 402 474-4759
Any Party may change its address or the designation of the person to be notified at any
time by giving written notice of such change to the other Party in the manner provided
herein. All notices shall be deemed given on the date of personal delivery or, if mailed by
certified mail, on the delivery date or attempted delivery date shown on the return -receipt
or, if sent by courier service, the next business day.
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24. LD41TATION OF LIABILITY:
EXCEPT AS OTHERWISE PROVIDED HEREIN, NEITHER PARTY SHALL BE
RESPONSIBLE OR LIABLE TO THE OTHER PARTY IN CONNECTION WITH
THE TRANSACTION(S) CONTEMPLATED BY THIS AGREEMENT FOR ANY
SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE, PUNITIVE, EXEMPLARY,
LOSS OF PROFITS OR REVENUE, OR SIMILAR DAMAGES, REGARDLESS OF
HOW CHARACTERIZED AND REGARDLESS OF A PARTY HAVING BEEN
ADVISED OF THE POSSIBILITY OR POTENTIAL OF SUCH DAMAGES.
25. INDEMNIFICATION:
Each of the Parties shall, to the extent allowed by law, with respect to any third -party
claims, indemnify, defend, protect and hold the other, its assignees, invitees, employees,
agents and contractors harmless from and against losses, costs, damages, liability or
expenses for physical damage to property and for physical injuries to any person, to the
extent caused by the operations or activities of such Party or those acting by, for or under
such Party. Nothing herein shall be construed or interpreted as denying either party any
remedy or defense available to such party under the laws of the State of Colorado. This
clause will survive expiration or termination of this Agreement.
26. NO PARTNERSHIP:
Nothing contained in this Agreement or any acts of either Party, prior to the Effective
Date of this Agreement shall be deemed or construed by the Parties or by any third
person to create the relationship of principal and agent, partnership, joint venture or any
other association between the Parties, other than the relationship of Seller and Buyer of
electric energy.
27. RELIANCE AND SURVIVAL OF REPRESENTATIONS AN]) WARRANTIES:
Each of the Parties acknowledges that the other Party has relied and will rely upon the
accuracy of its respective representations and warranties contained herein, which
representations and warranties constitute fundamental terms of this Agreement. All
representations, warranties and covenants granted or assented to in this Agreement, shall
survive the completion of the transactions contemplated herein and each such
representation, warranty, and covenant is a condition of this Agreement, any or all of
which conditions may be waived in whole or in part by the party for whose benefit the
representation is made. The representations and warranties of the parties contained in this
Agreement shall not be discharged, dissolved or terminated by the exercise of any option
or right under Section 4 of this Agreement.
28. DISPUTE RESOLUTION:
The Parties agree that it is in the best interest of both Parties to attempt to resolve
disputes that arise under this Agreement in a prompt and inexpensive manner. To that
end, the Parties commit to use their reasonable efforts to resolve disputes informally. For
all disputes that arise pursuant to this Agreement, the Parties immediately, through their
designated representatives shall negotiate with one another in good faith in order to reach
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DocuSign Envelope ID: 62193DE1-CB164FD3-9736-369ADFC4A8AD
resolution of the dispute. In the event that the Parties, through their respective governing
bodies cannot agree to a resolution of any dispute within thirty (30) days after the
commencement of negotiations, either Party may seek available legal remedies.
29. AMENDMENT:
This Agreement may be amended, changed, modified or altered, provided that such
amendment, change, modification or alteration shall be in writing and signed by both
Parties hereto. Any oral representations or modifications concerning this Agreement shall
be of no force or effect unless contained in a subsequent written modification signed by
the Party to be charged.
30. FURTHER ASSURANCES:
Each Party shall execute such additional documents, instruments and assurances as may
be reasonably required from time to time to carry out the terms and intention of this
Agreement or to facilitate any financing of the Facilities, and it shall not unreasonably
withhold, condition or delay its compliance with any reasonable request made by the
other Party. In addition, the Parties agree to work together in good faith to make
necessary or desired changes to the terns and conditions of this Agreement to honor the
intent of this Agreement in the event the applicable balancing authority or transmission
service provider joins a regional transmission organization or independent system
operator or otherwise transfers functional control to another entity. Notwithstanding the
foregoing, no such changes shall affect or modify the rate for energy, capacity and
Environmental Attributes unless such change is set forth in an amendment to this
Agreement and signed by authorized representatives of both Parties.
31. TIME:
Time is of the essence hereof.
32. CONSTRUCTION:
Unless the context otherwise requires: (a) words of any gender shall be deemed to
include each other gender and the neutral; (b) words using the singular or plural number
shall also include the plural or singular number, respectively; (c) the words "hereof,"
"herein" and "hereunder" and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement,
and section or paragraph references are to the sections or paragraphs of this Agreement
unless otherwise specified; (d) the word "including" and words of similar import when
used in this Agreement shall mean "including, without limitation," unless otherwise
specified; (e) "or" is not exclusive; (f) all terms in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered pursuant
hereto unless otherwise defined therein; (g) any agreement, instrument, statute or
regulation defined or referred to herein or in any instrument or certificate delivered in
connection herewith means such agreement, instrument, statute or regulation as from
time to time amended, modified or supplemented and includes (in the case of agreements
or instruments) references to all attachments thereto and instruments incorporated therein;
(h) any references to a person are also to its legal representatives, successors, and
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DocuSign Envelope ID: 62193DE1-CB164FD3-9736-369ADFC4A8AD
permitted assigns and (i) any reference to a monetary amount shall be a reference to
lawful money of the United States. Any reference herein to a "day" or number of "days"
(without the explicit qualification of "business") shall be deemed to refer to a calendar
day or number of calendar days. If any action or notice is to be taken or given on or by a
particular calendar day, and such calendar day is not a business day, then such action or
notice may be taken or given on the next succeeding business day. A "business day"
means any day other than a Saturday, a Sunday or a day on which banks in Denver,
Colorado are required or permitted by applicable law to close. This Agreement shall be
deemed the collaborative effort of the Parties and shall not be interpreted more
stringently against either Party.
33. COUNTERPARTS AND ELECTRONIC DELIVERY
This Agreement may be executed in one or more separate counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument. Each counterpart may consist of a number of copies hereof, each signed by
less than all, but together signed by all, of the parties hereto. Copies of documents or
signature pages bearing original signatures, and executed documents or signature pages
delivered by a party by facsimile, or e-mail transmission of an Adobe® file format
document (also known as a PDF file), shall, in each such instance, be deemed to be, and
shall constitute and be treated as, an original signed document or counterpart, as
applicable. Any party delivering an executed counterpart of this Agreement by facsimile,
or e-mail transmission of an Adobe® file format document, also shall deliver an original
executed counterpart of this Agreement, but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of this
Agreement.
[SIGNATURE PAGE FOLLOWING]
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DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
IN WITNESS WHEREOF, the Parties hereto have caused this Power Purchase Agreement to be
executed in their respective names as of the date and year first above written.
SELLER:
ASPEN ELECTRIC DEPARTMENT OF THE CITY OF ASPEN, COLORADO
Aactiftned by:
By: �aYa G. Off 9/28/2023 i 9:45:08 AM PDT
Sara Ott, City Manager Date
L)oc USgned by:
Attest:
�(�(�,9/27/2023 i 2:57:34 PM MDT
�"-�
Date
BUYER:
MUNICIPAL ENERGY AGENCY OF NEBRASKA
Dlpoehling signed by Robert
Robert L Litally
Date: 20
By: Poehling 110:3019-0500'8
Robert L. Poehling, Executive Director/CEO Date
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DocuSign Envelope ID: 62193DE1-CB164FD3-9736-369ANNA8AD
LIST OF EXHIBITS
Exhibit 1 DESCRIPTION OF THE UNIT
Exhibit 2 VICINITY MAP SHOWING THE SITE AND THE GENERAL LOCATION OF
THE UNIT
Exhibit 3 ENERGY RATES
Exhibit 4 CALCULATION OF OUTPUT AND COST
Exhibit 5 INTERCONNECTION AND METERING DESCRIPTION
Exhibit 6 BILLING AND PAYMENT ARRANGEMENTS
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DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
EXHIBIT 1
DESCRIPTION OF THE UNIT
The Unit associated with this Agreement shall be two (2) Francis turbine generators, with
maximum collective net rated output of -8- MW, and all related equipment, to be manufactured
and installed along with associated Interconnection Facilities, installed at the Tri-County Water
Hydropower Facility which is located in Ouray County, Colorado approximately six miles north
of the Town of Ridgway at the Ridgway Reservoir Dam.
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DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
EXHIBIT 2
VICINITY MAP SHOWING THE SITE AND THE GENERAL LOCATION OF THE
UNIT
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DocuSign Envelope ID: 62193DE1-CB164FD3-9736-369ADFC4A8AD
EXHIBIT 3
Table of Rates (Capacity & Energy)
Period Winter Rate
Summer Rate
(Months) Oct 1-April 30
May 1-Sept 30
($/MWh)
$/MWh
Oct 1, 2023-Sep 30,
70.55
49.00
2024
Oct 1, 2024-Sep 30,
71.97
49.98
2025
Oct 1, 2025-Sep 30,
73.41
50.98
2026
Oct 1, 2026-Sep 30-
74.88
52.00
2027
Oct 1, 2027-Sep
76.38
53.04
30,2028
Oct 1, 2028-Sep 77.91
54.10
30.2029
55.18
Oct 1, 2029-Sep 77.91
30,2030
Oct 1, 2030-Sep 30, 77.91
56.29
2031
Oct 1, 2031-Sep 30,
77.91
57.41
2032
Oct 1, 2032-Sep 30,
77.91
58.56
2033
Oct 1, 2033-April 30,
77.91
N/A
2034
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DocuSign Envelope ID: 62193DE1-CB16-4FD3-9736-369ADFC4A8AD
EXHIBIT 4
CALCULATION OF OUTPUT AND COST
For this Agreement, the Buyer's Share of Output to be purchased by Buyer and delivered by
Seller at the Point of Delivery shall be measured in megawatt -hours as calculated on a monthly
basis using the following formula:
Buyer's Share of Output = (Metered Energy) x (Buyer's Share, as that term is defined
below)
Cost to Buyer = (Buyer's Share of Output) x (Rate from Exhibit 3)
Buycr's Share of Output means the following portion of the total electric energy produced by the
Unit and delivered by Tri-County at the Point of Delivery. The remainder of the total electric
energy produced by the Unit and delivered by Tri-County at the Point of Delivery shall be
considered Seller's share of Output, not Buyer's Share, and shall be excluded from the purchase
and sale obligation under the Agreement:
Summer (May through Winter (October
Bu er's Share 67% 20%
Seller's Share 33% 80%
Parties will annually review the five year rolling average of Seller's Share of Output to compare
to the estimates of hydropower production set forth in Seller's Exhibit B to its Supplemental
Agreement with MEAN, or any successor agreement thereto, and the Parties agree to update the
split if the 5 year rolling average is materially greater than such estimates.
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EXHIBIT 5
INTERCONNECTION AND METERING DESCRIPTION
RIDGWAY RESEVCIRMARN
S�-IP Twarumm
4.16KYTo115W
fr1 m rNa
�
PlW
3
.8 mw 7�.
I
1
GMIRAT R STATION
8
O
f
1
POINT OF
1
l
POiINT CF CHANGE
INTE RCM FCTION (POI)
OF OWNERWIP (PCO)
ReveKt>e
Fret
Exhibit 5
r
NETWORK UPGRADE
INTEROONMECT
Interconnection Detail
TRI-STATE G&T
SLOSTATION
SCHSIATIC - NOT To SCALE
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EXHIBIT 6
BILLING AND PAYMENT ARRANGEMENTS
1. The Cost to Buyer for each Billing Period shall be the product of the Buyer's Share of
Output (in megawatt -hours) delivered to Buyer, pursuant to Section 5 of the
Agreement, during such Billing Period, times the applicable Energy Rate as set forth
in Exhibit 3 of the Agreement.
2. Buyer will create a report each month with the Metered Energy and send it to Tri-
County and Seller. This report will be generated on or about the I't business day of
the following month and will be in MST, unless otherwise specified. In accordance
with Section 7.1 of the Agreement, the Metered Energy shown on the report shall be
used to calculate the Buyer's Share of Output by mcans of the formula defined in
Exhibit 4 of the Agreement.
3. If there are any questions about the data, these need to be submitted to Buyer in
writing within three (3) business days for prompt resolution.
4. Seller shall submit to Buyer by the 10th day of the month an invoice, for the
preceding Billing Period, for the Buyer's Share of Output from the Unit delivered to
Buyer at the Point of Delivery. Such invoices shall, include the beginning and end
dates of the Billing Period, the amount of energy delivered to Buyer as determined
from the metering equipment described in Section 7 of the Agreement using the
calculation defined in Exhibit 4, and the total amount due to Seller.
Buyer shall make payment to Seller, by electronic transfer of such payment, within
seven (7) business days following receipt of the invoice from Seller. Payments are
deemed paid on the date they are postmarked or electronically transferred. Absent
proof of postmark, payments shall be deemed paid as of the date the electronic
transfer is received by Seller. Interest on any unpaid amount shall accrue at the rate of
one percent per month or fraction thereof from the date due until the date upon which
payment is made.
6. Information necessary to accomplish electronic transfer of payments due shall be
provided in writing.
7. In the event that any portion of an invoice is in dispute, the amount invoiced shall be
paid in accordance with the terms of #5 of this Exhibit. The Parties shall use their best
efforts to amicably and promptly resolve the dispute. Upon determination of the
correct billing amount, and agreed to by both Parties, the proper adjustment will be
included on the next month's invoice unless other arrangements are agreed to by both
Parties, including a credit for interest on any refunds at the rate of one percent per
month or fraction thereof accruing from the due date of the original invoice to the
date upon which payment is refunded.
22