---



Interconnection and Wheeling Agreement



Between and By Raft River RuralElectric Cooperative



And



Raft River Energy I LLC





i

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TABLE OF CONTENTS

|     | **ARTICLE 1**                                                                                                                                     |   
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------- | --
|     | DEFINITIONS                                                                                                                                       |   
|     |                                                                                                                                                   |   
|1    | Definitions                                                                                                                                       | 2 
|     |                                                                                                                                                   |   
|     | **ARTICLE 2**                                                                                                                                     |   
|     | **CONSTRUCTION OF INTERCONNECTION
      FACILITY AND UPGRADES**                                                                                   |   
|     |                                                                                                                                                   |   
|2.1  | Agreement to Interconnect                                                                                                                         | 6 
|     |                                                                                                                                                   |   
|2.2  | Construction and Installation of Generator-Owned
      Interconnection Facilities                                                                 | 6 
|     |                                                                                                                                                   |   
|2.3  | Construction and Installation of Transmission Owner-Owned
      Interconnection Facilities and Upgrades                                           | 7 
|     |                                                                                                                                                   |   
|2.4  | Procurement, Construction and Completion of Engineering
      and Design Studies                                                                  | 8 
|     |                                                                                                                                                   |   
|2.5  | Testing of Facilities                                                                                                                             | 9 
|     |                                                                                                                                                   |   
|2.6  | Regulatory Approvals                                                                                                                              | 9 
|     |                                                                                                                                                   |   
|     | **ARTICLE 3**                                                                                                                                     |   
|     | **CONTINUING OBLIGATIONS
      AND RESPONSIBILITIES**                                                                                             |   
|     |                                                                                                                                                   |   
|3.1  | Facility Design and Final As-Built Parameters                                                                                                     | 9 
|     |                                                                                                                                                   |   
|3.2  | Other Services                                                                                                                                    | 9 
|     |                                                                                                                                                   |   
|3.3  | Access Rights                                                                                                                                     | 10
|     |                                                                                                                                                   |   
|3.4  | Operation and Maintenance of the Facility and
      Generator-Owned Interconnection Facilities                                                    | 10
|     |                                                                                                                                                   |   
|3.5  | Operation and Maintenance of the Transmission Owner-Owned
      Interconnection Facilities, the System Upgrades and the Transmission
      System | 12
|     |                                                                                                                                                   |   
|3.6  | Scheduled Outages and Maintenance Scheduling                                                                                                      | 13
|     |                                                                                                                                                   |   
|3.7  | Emergency Procedures                                                                                                                              | 14
|     |                                                                                                                                                   |   
|3.8  | Abnormal or Out of Limit Operating Condition Procedures                                                                                           | 15
|     |                                                                                                                                                   |   
|3.9  | Protective Relays                                                                                                                                 | 16
|     |                                                                                                                                                   |   
|3.10 | Metering                                                                                                                                          | 16
|     |                                                                                                                                                   |   
|3.11 | Information and Record-keeping Obligations and Audit
      Rights                                                                                 | 19
|     |                                                                                                                                                   |   
|3.12 | Responsibility for Safety of Employees, etc                                                                                                       | 20

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|3.13 | Compliance with Applicable Laws                                                                                                    | 21
|---- | ---------------------------------------------------------------------------------------------------------------------------------- | --
|     |                                                                                                                                    |   
|3.14 | Environmental Compliance and Procedures                                                                                            | 21
|     |                                                                                                                                    |   
|     | **ARTICLE 4**                                                                                                                      |   
|     | **WHEELING PROVISIONS**                                                                                                            |   
|     |                                                                                                                                    |   
|4.1  | Point of Receipt, Point of Delivery.                                                                                               | 21
|     |                                                                                                                                    |   
|4.2  | Transmission of Power                                                                                                              | 21
|     |                                                                                                                                    |   
|4.3  | Payment for Transmission Service                                                                                                   | 21
|     |                                                                                                                                    |   
|4.4  | Real Power Losses                                                                                                                  | 22
|     |                                                                                                                                    |   
|4.5  | Curtailment                                                                                                                        | 22
|     |                                                                                                                                    |   
|4.6  | Notification of Generation Schedule.                                                                                               | 22
|     |                                                                                                                                    |   
|4.7  | Request to Increase Annual Maximum Demand.                                                                                         | 23
|     |                                                                                                                                    |   
|     | ARTICLE 5                                                                                                                          |   
|     | **COST, RESPONSIBILITY
      AND BILLING PROCEDURES**                                                                              |   
|     |                                                                                                                                    |   
|5.1  | Generators Cost Responsibility
      for Operation and Maintenance of the Interconnection Facilities and Metering
      Equipment | 23
|     |                                                                                                                                    |   
|5.2  | Billing Procedures                                                                                                                 | 24
|     |                                                                                                                                    |   
|5.3  | Payment Not a Waiver                                                                                                               | 24
|     |                                                                                                                                    |   
|5.4  | Interest                                                                                                                           | 25
|     |                                                                                                                                    |   
|     | ARTICLE 6                                                                                                                          |   
|     | CONFIDENTIALITY                                                                                                                    |   
|     |                                                                                                                                    |   
|6.1  | General                                                                                                                            | 25
|     |                                                                                                                                    |   
|6.2  | Exempt Information and Documents                                                                                                   | 25
|     |                                                                                                                                    |   
|6.3  | Notification                                                                                                                       | 26
|     |                                                                                                                                    |   
|6.4  | Use of Information or Documentation                                                                                                | 26
|     |                                                                                                                                    |   
|6.5  | Remedies Regarding Confidentiality                                                                                                 | 26
|     |                                                                                                                                    |   
|     | ARTICLE 7                                                                                                                          |   
|     | **TERM, TERMINATION,
      AND DEFAULT**                                                                                           |   
|     |                                                                                                                                    |   
|7.1  | Term                                                                                                                               | 26

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|7.2  | Effect of Expiration or Termination of Agreement on Liabilities
      and Obligations                 | 27
|---- | ----------------------------------------------------------------------------------------------------- | --
|     |                                                                                                       |   
|7.3  | Effectiveness of Certain Provisions After Expiration, Cancellation,
      or Termination of Agreement | 27
|     |                                                                                                       |   
|7.4  | Removal of Interconnection Facilities After Expiration or
      Termination of Agreement              | 27
|     |                                                                                                       |   
|7.5  | Default                                                                                               | 27
|     |                                                                                                       |   
|7.6  | Remedies Upon Default                                                                                 | 28
|     |                                                                                                       |   
|7.7  | Performance of Other Partys Obligations                                                              | 28
|     |                                                                                                       |   
|7.8  | Remedies Cumulative                                                                                   | 29
|     |                                                                                                       |   
|     | **ARTICLE 8**                                                                                         |   
|     | **REPRESENTATIONS**                                                                                   |   
|     |                                                                                                       |   
|8.1  | Representations of Transmission Owner                                                                 | 29
|     |                                                                                                       |   
|8.2  | Representations of Generator                                                                          | 31
|     |                                                                                                       |   
|8.3  | Representations of Both Parties                                                                       | 32
|     |                                                                                                       |   
|     | **ARTICLE 9**                                                                                         |   
|     | **DISPUTE RESOLUTION**                                                                                |   
|     |                                                                                                       |   
|9.1  | Parties to Address First                                                                              | 32
|     |                                                                                                       |   
|9.2  | Attorneys Fees                                                                                       | 32
|     |                                                                                                       |   
|     | **ARTICLE 10**                                                                                        |   
|     | **INSURANCE**                                                                                         |   
|     |                                                                                                       |   
|10.1 | General                                                                                               | 33
|     |                                                                                                       |   
|10.2 | Claims Made                                                                                           | 33
|     |                                                                                                       |   
|10.3 | Certificates of Insurance; Copies of Policies                                                         | 33
|     |                                                                                                       |   
|10.4 | Negotiation of Policy Limits                                                                          | 33
|     |                                                                                                       |   
|10.5 | Additional Insureds; Notice of Cancellation.                                                          | 34
|     |                                                                                                       |   
|10.6 | Waiver of Subrogation                                                                                 | 34
|     |                                                                                                       |   
|10.7 | Failure to Comply                                                                                     | 34
|     |                                                                                                       |   
|     | **ARTICLE 11**                                                                                        |   
|     | **NOTICES**                                                                                           |   
|     |                                                                                                       |   
|11.1 | General                                                                                               | 34
|     |                                                                                                       |   
|11.2 | Changes                                                                                               | 35

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|11.3  | Emergencies                                            | 35
|----- | ------------------------------------------------------ | --
|      |                                                        |   
|11.4  | Authority of Party Representatives                     | 35
|      |                                                        |   
|11.5  | Points of Contact; 24-Hour Contact                     | 35
|      |                                                        |   
|      | **ARTICLE 12**                                         |   
|      | **FORCE MAJEURE**                                      |   
|      |                                                        |   
|12.1  | General                                                | 36
|      |                                                        |   
|12.2  | Force Majeure Defined                                  | 36
|      |                                                        |   
|12.3  | Procedures                                             | 37
|      |                                                        |   
|      | **ARTICLE 13**                                         |   
|      | **LIMITATIONS ON LIABILITY
      AND INDEMNIFICATION** |   
|      |                                                        |   
|13.1  | Indemnification                                        | 37
|      |                                                        |   
|13.2  | Conditions                                             | 38
|      |                                                        |   
|13.3  | Settlement                                             | 38
|      |                                                        |   
|13.4  | Survival                                               | 38
|      |                                                        |   
|13.5  |                                                        | 39
|      |                                                        |   
|13.6  |                                                        | 39
|      |                                                        |   
|13.7  |                                                        | 39
|      |                                                        |   
|13.8  |                                                        | 39
|      |                                                        |   
|13.9  |                                                        | 40
|      |                                                        |   
|13.10 | Survival                                               | 40
|      |                                                        |   
|      | **ARTICLE 14**                                         |   
|      | INTEGRATION                                            |   
|      |                                                        |   
|14.1  | Entire Agreement                                       | 40
|      |                                                        |   
|      | **ARTICLE 15**                                         |   
|      | **RELATIONSHIP OF PARTIES**                            |   
|      |                                                        |   
|15.1  | Relationship of Parties                                | 40
|      |                                                        |   
|15.2  | No Authority to Act for Other Party                    | 40
|      |                                                        |   
|15.3  | No Liability for Acts of Other Party                   | 41

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|     | **ARTICLE 16**                                               |   
|---- | ------------------------------------------------------------ | --
|     | **WAIVER**                                                   |   
|     |                                                              |   
|16.1 | Waiver Permitted                                             | 41
|     |                                                              |   
|16.2 | Limited Nature of Waivers                                    | 41
|     |                                                              |   
|     | **ARTICLE 17**                                               |   
|     | AMENDMENTS                                                   |   
|     |                                                              |   
|17.0 | Amendments                                                   | 41
|     |                                                              |   
|     | **ARTICLE 18**                                               |   
|     | **SUCCESSORS, ASSIGNS,
      AND THIRD PARTY BENEFICIARIES** |   
|     |                                                              |   
|18.1 | Binding on Parties, Successors, and Assigns                  | 41
|     |                                                              |   
|18.2 | Transmission Owner Assignment Rights                         | 42
|     |                                                              |   
|18.3 | Generator Assignment Rights                                  | 42
|     |                                                              |   
|18.4 | Assigning Party to Remain Responsible                        | 43
|     |                                                              |   
|     | ARTICLE 19                                                   |   
|     | **LABOR DISPUTES**                                           |   
|     |                                                              |   
|19.1 | Notice                                                       | 43
|     |                                                              |   
|     | **ARTICLE 20**                                               |   
|     | **GOVERNING LAW AND
      INTERPRETATION**                   |   
|     |                                                              |   
|20.1 | Applicable Law                                               | 43
|     |                                                              |   
|20.2 | Governing Law                                                | 44
|     |                                                              |   
|20.3 | Conflicts Between Main Body of Agreement and Attachments     | 44
|     |                                                              |   
|     | ARTICLE 21                                                   |   
|     | **HEADINGS AND CAPTIONS**                                    |   
|     |                                                              |   
|21.1 | No Effect on Interpretation                                  | 44
|     |                                                              |   
|     | ARTICLE 22                                                   |   
|     | **COUNTERPARTS**                                             |   
|     |                                                              |   
|22.1 | Counterpart Execution Permitted                              | 44

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|           | **ARTICLE 23**                      |   
|---------- | ----------------------------------- | --
|           | **SEVERABILITY**                    |   
|           |                                     |   
|23.1       | Severable Nature of Agreement       | 44
|           |                                     |   
|           | **ARTICLE 24**                      |   
|           | **OTHER CONDITIONS**                |   
|           |                                     |   
|24.1       | Further Acts                        | 45
|           |                                     |   
|           | Exhibits                            |   
|           |                                     |   
|Exhibit 1. | Construction Agreements             |   
|           |                                     |   
|Exhibit 2. | Point of Receipt, Point of Delivery |   
|           |                                     |   
|Exhibit 3. | Wheeling Rate or Transmission Ratio |   
|           |                                     |   
|Exhibit 4. | Reserved                            |   
|           |                                     |   
|Exhibit 5. | Real Power Losses                   |   
|           |                                     |   
|Exhibit 6. | Annual Maximum Demand               |   
|           |                                     |   
|Exhibit 7. | Metering Diagram                    |   
|           |                                     |   
|Exhibit 8. | Facility Operating Restrictions     |   

vii

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INTERCONNECTION AND WHEELING AGREEMENT

This
INTERCONNECTION AGREEMENT is made as of the _____day of _____________, 2006 by
and between Raft River Electric Consumers Cooperative (Transmission Owner,
Transmission Provider or Raft River), a cooperative corporation having its
principal place of business in Malta, Idaho and Raft River Energy I
LLC(Transmission Customer or Generator), a company having its principal place
of business in Boise, Idaho (referred to collectively as the Parties or,
individually, as a Party).

WHEREAS,
Generator is developing the first of three potential geothermal power generation
facilities. The initial facility is to be located at Township 15 South, Range 26
East, Section 23, SWSE, Boise Meridian, Cassia County, Idaho;

WHEREAS,
Generator and Transmission Owner desire to initially interconnect the first such
generating facility with the transmission system of Transmission Owner;

WHEREAS,
Generator and Transmission Owner desire to interconnect such future geothermal
power generation facilities with the transmission system of the Transmission
Owner;

WHEREAS,
Generator and Transmission Owner desire to wheel energy from the initial and
future generation facilities to the delivery point at Bonneville Power
Administrations equipment in Bridge Substation;

WHEREAS,
additions, modifications, and upgrades must be made to certain existing
facilities owned by Transmission Owner in order to accommodate the
interconnection; and

WHEREAS,
Generator and Transmission Owner desire to provide for the interconnection of
the generating facility and the addition, modifications, and upgrades to such
facilities and to define the continuing responsibilities and obligations of the
Parties with respect thereto under the terms and conditions set forth herein.

NOW
THEREFORE, in consideration of the mutual representations, covenants, and
agreements as set forth in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties hereto agree as follows:

1

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ARTICLE 1 DEFINITIONS

|1.1 | Air Emissions Permit means any permit granted to
      Generator by any governmental or regulatory agency with competent
      jurisdiction which addresses Facility emissions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|1.2 | Abnormal or Out of Limit Operating Condition means any
      condition on the Facility, Interconnection Facilities, Transmission System
      or the transmission system of other utilities which is outside normal
      operating parameters such that facilities are operating outside their
      normal ratings or reasonable operating limits have been exceeded but which
      has not resulted in an Emergency. An Abnormal or Out of Limit Operating
      Condition may include, but is not limited to, high or low deviations in:
      voltage, frequency, power flow, equipment temperature, equipment
      pressures, and other equipment and operating parameters.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|1.3 | Agreement means this Interconnection Agreement between
      Generator and Transmission Owner, including all exhibits hereto, as the
      same may be amended, supplemented, or modified in accordance with its
      terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|1.4 | Effective Date has the meaning set forth in Section
      7.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|1.5 | Emergency means a condition or situation that (A)
      presents an imminent physical threat of danger to life or a significant
      threat to health or property, or (B) could cause imminent significant
      disruption on or significant damage to the Facility, the Interconnection
      Facilities, the Transmission System, or the transmission system of other
      utilities.                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|1.6 | Engineering and Design Studies means the studies
      conducted in accordance with Good Utility Practice in order to determine
      the design and specifications for the Interconnection Facilities and/or
      the System Upgrades, and shall not determine the design
  or                                                                                                                                                                                                                                                                                                                                                                                                   

2

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|     | specifications for, or otherwise address, any additions,
      modifications, or upgrades to the Transmission System which may be
      necessary to transmit the Generation on the Transmission System, unless
      otherwise requested by the Generator.                                                                                                                                                                                                                                                                                                                                                                                                  
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|1.7  | Environmental Laws means all federal, state, and local
      statutes, regulations and ordinances relating to the protection,
      preservation or restoration of human health, the environment, or natural
      resources, including, without limitation, laws relating to the releases,
      or threatened releases, of Hazardous Substances into any media (including,
      without limitation, ambient air, surface water, groundwater, land, surface
      and subsurface strata) or otherwise relating to the manufacture,
      processing, distribution, use treatment, storage, release, transport, or
      handling of Hazardous Substances.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|1.8  | Facility means the initial geothermal power plant
      located in T.15S., R.26E., Section 23, SWSE, Boise Meridian, Cassia
      County, Idaho with a net output of no more than 10 average megawatts in
      any given month, together with any future geothermal power plants located
      within the same general area of the initial power plant. The Facility will
      be constructed, owned, and operated by the Generator.                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|1.9  | Facility Station Service means all electric service
      requirements used in connection with the operation and maintenance of the
      Facility, including, but not limited to, stand-by, supplemental, back-up,
      maintenance and interruptible power.                                                                                                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|1.10 | Generation means the capacity, energy, and/or ancillary
      services produced at the Facility.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|1.11 | Generator has the meaning set forth in the introductory
      paragraph of this Agreement and includes its permitted successors and
      assigns.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|1.12 | Generator-Owned Interconnection Facilities means all
      those facilities or portions of facilities owned by the Generator, which,
      in conjunction with the Transmission Owner- Owned Interconnection
      Facilities, are necessary to effect the transfer of
  Generation                                                                                                                                                                                                                                                                                                                                                                        

3

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|     | produced at the Facility to the Point of Delivery and the
      provision of Facility Station Service.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|1.13 | Good Utility Practice means the practices, methods and
      acts engaged in or approved by a significant portion of the electric
      utility industry in the United States during the relevant time
      period, or any of the practices, methods and acts which, in the exercise
      of reasonable judgment in light of the facts known at the time the
      decision was made, could have been expected to accomplish the desired
      result at a reasonable cost consistent with good business practices,
      reliability, safety and expedition. Good Utility Practice is not intended
      to be limited to the optimum practice, method, or act to the exclusion of
      all others, but rather includes all acceptable practices, methods, or acts
      generally accepted in the region. Good Utility Practice shall include, but
      not be limited to, applicable law and regulatory requirements, and the
      criteria, rules and standards promulgated by NERC, WSCC, National Electric
      Safety Code, and National Electrical Code, as they may be amended from
      time to time, including the rules and guidelines and criteria of any
      successor organizations.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|1.14 | Hazardous Substances means:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|     | (A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|     | (B)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

4

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| | (C) | Any other chemical, material, or substance, exposure
        to which is prohibited, limited or regulated by applicable Environmental
        Laws.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|1.15 | Interconnection Facilities means the Transmission
      Owner-Owned Interconnection Facilities and the Generator-Owned
      Interconnection Facilities collectively.                                                                                            
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                    
|1.16 | Metering Point(s) means the point(s) at which the
      amount of Generation delivered to the Point of Delivery is
  measured.                                                                                                                                   
|     |                                                                                                                                                                                                                                                                    
|1.17 | NERC means the North American Electric Reliability
      Council or any successor organization.                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                    
|1.18 | Operation Date means the date each facility is
      determined by the Generator and Transmission Owner to be complete and able
      to provide energy in a consistent, reliable and safe manner.                                                               
|     |                                                                                                                                                                                                                                                                    
|1.19 | Party or Parties has the meaning set forth in the
      introductory paragraph of this Agreement.                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                    
|1.20 | Point of Delivery means the point where the
      Transmission Provider delivers Generators power to BPAs Transmission
      System.                                                                                                                           
|     |                                                                                                                                                                                                                                                                    
|1.21 | Point of Receipt means the point on the Project
      Transmission Line where Raft Rivers ownership of such line begins, as
      shown in Exhibit 7.                                                                                                           
|     |                                                                                                                                                                                                                                                                    
|1.22 | Project Transmission Line means the line constructed
      for the purpose of moving power from the Facility to the Point of
      Delivery.                                                                                                                     
|     |                                                                                                                                                                                                                                                                    
|1.23 | System Upgrades means any modifications, upgrades, and
      additions to the Transmission System that are required solely to
      interconnect the Facility to the Transmission System and to be constructed
      and installed under this Agreement and shall

5

---

|     | not include any additions, modifications, or upgrades to
      the Transmission System which may be necessary to transmit the Generation
      on the Transmission System, unless otherwise requested by the
      Generator.                                                                                                                                                                               
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                             
|1.24 | Transmission Owner has the meaning set forth in the
      introductory paragraph of this Agreement and its permitted successors and
      assigns.                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                             
|1.25 | Transmission Owner-Owned Interconnection Facilities
      means all those facilities or portions of facilities owned by Transmission
      Owner, if any, which, in conjunction with the Generator-Owned
      Interconnection Facilities, are necessary to effect the transfer of
      Generation produced at the Facility to the Point of Delivery and the
      provision of Facility Station Service.
|     |                                                                                                                                                                                                                                                                                                                                                                                                             
|1.26 | Transmission System means the transmission facilities
      owned, operated or controlled by Transmission Owner, and shall include any
      modifications, additions, or upgrades made to those facilities.                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                             
|1.27 | WECC means the Western Electricity Coordinating Council
      or successor organization.                                                                                                                                                                                                                                                                                                                  

ARTICLE 2 CONSTRUCTION OFINTERCONNECTION
FACILITIES AND UPGRADES

|2.1 | Agreement to Interconnect. The Parties agree that
      the Facility shall be interconnected to the Transmission System by means
      of the Interconnection Facilities listed in Exhibit 1.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                              
|2.2 | Construction and Installation of Generator-Owned
      Interconnection Facilities.                                                                                                           
|    |                                                                                                                                                                                              
|    | 2.2.1                                                                                                                                                                                        

6

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| |       | equipment necessary for Generator to construct and
      install the Generator-Owned Interconnection Facilities. The
      Generator-Owned Interconnection Facilities will be constructed by
      Generator or, at Generators option, a third party contractor selected by
      Generator. Unless otherwise agreed to by the Parties all construction work
      related to the Generator-Owned Interconnection Facilities that must be
      performed on the Transmission System shall be done by Transmission Owner
      or a third party contractor as agreed to by both the Transmission Owner
      and Generator.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 2.2.2 | Inspection of Generator-Owned Interconnection
      Facilities. The Transmission Owner may, with prior written notice to
      Generator, make inspection of the Generator-Owned Interconnection
      Facilities prior to testing to ascertain whether the Generator-Owned
      Interconnection Facilities conform with applicable Engineering and Design
      Studies and Good Utility Practice. At its expense, Generator must correct
      any situations contrary to applicable Engineering and Design Studies or
      Good Utility Practice.                                                                      

|2.3 | Construction and Installation of Transmission
      Owner-Owned Interconnection Facilities and Upgrades.
|--- | --------------------------------------------------------------------------------------------------------
|    |                                                                                                         
|    | 2.3.1                                                                                                   
|    |                                                                                                         
|    |                                                                                                         

7

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| | (B) | The Transmission Owner-Owned Interconnection Facilities
      and the System Upgrades must be designed, constructed, and installed in
      accordance with applicable Engineering and Design Studies and Good Utility
      Practice, and must be sufficient, as built and designed, to deliver the
      Generation to the Point of Delivery and to enable the Facility to receive
      Facility Station Service. Generator may, with prior written notice to
      Transmission Owner, make inspection of the Transmission Owner- Owned
      Interconnection Facilities and the System Upgrades prior to testing to
      ascertain whether the Transmission Owner-Owned Interconnection Facilities
      and the System Upgrades conform with applicable Engineering and Design
      Studies and Good Utility Practice.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2.3.2. | Notice to Proceed and Right to Suspend or Terminate
      Work.As soon as practicable after receiving from the Generator a
      written notice to proceed, Transmission Owner will commence construction,
      unless otherwise directed by such notice. In the event Generator notifies
      Transmission Owner to terminate all work by the Transmission Owner
      associated with the construction and installation of the Transmission
      Owner-Owned Interconnection Facilities or System Upgrades due to a
      permanent closure of the facility, disposition of selected interconnecting
      equipment shall be in accordance with Exhibit 1 to this
  agreement.
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.4 | Procurement, Construction and Completion of
      Engineering and Design Studies
|--- | --------------------------------------------------------------------------------
|    |                                                                                 
|    | 2.4.1                                                                           

8

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|2.5 | Testing of Facilities                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                    
|    | 2.5.1                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                    
|    | 2.5.2.                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                    
|2.6 | Regulatory Approvals. The Parties shall cooperate
      in timely seeking and obtaining all regulatory approvals, certificates,
      licenses, and authorizations necessary for each to carry out its
      responsibilities under this Agreement.

ARTICLE 3CONTINUING OBLIGATIONS AND
RESPONSIBILITIES

|3.1  | Facility Design and Final As-Built Parameters.
      Upon completion of any construction or modification to the Generator's
      facilities and equipment that may reasonably be expected to affect the
      Transmission Owner System, but not later than 45 days after receipt from
      the facility constructor, Generator shall issue as built drawings to
      Transmission Owner.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                               
|3.2. | Other Services.                                                                                                                                                                                                                                                                                                                                                                               
|     |                                                                                                                                                                                                                                                                                                                                                                                               
|     | 3.2.1.                                                                                                                                                                                                                                                                                                                                                                                        

9

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| | 3.2.2 | Ancillary Services.Raft River does not have
        the capability to provide ancillary services such as reserves, energy
        imbalance, scheduling, or regulation, nor can it provide control area
        services. To the extent that Raft River incurs charges for ancillary services
        that are due to the operation of Generator, Raft River shall pass such
        charges through to Generator and the Generator shall pay such charges.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 3.2.3 | Other Services. This Agreement does not obligate
        either Party to provide, or entitle either Party to receive, any service
        not expressly provided for herein. Each Party is responsible for making
        the arrangements necessary for it to receive any other service that it
        may desire from the other Party or any third party.                                                                                               

|3.3 | Access Rights. The Parties shall provide each
      other such easements and/or access rights as may be necessary for either
      Partys performance of their respective obligations under this Agreement;
      provided that, notwithstanding anything stated herein, a Party performing
      maintenance work within the boundaries of the other Partys facilities
      must abide by the rules applicable to that site. In addition, Generator
      shall provide Transmission Owner with all necessary keys, codes or other
      entry requirements in order to enter Generators Facility to perform
      emergency disconnect operations.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|3.4 | Operation and Maintenance of the Facility and
      Generator-Owned Interconnection Facilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | 3.4.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | 3.4.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

10

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| | 3.4.4  | Reactive Power and Charges. The Transmission Owner
      is subject to reactive power charges from the Bonneville Power
      Administration (BPA) for lagging or leading power factors at Transmission
      Owners BPA points of delivery. Generator shall be liable for any charges
      incurred by Transmission Owner or its scheduling agent, PNGC Power, as a
      result of Generators operation at other than unity power factor. Charges
      will be calculated based on comparisons of reactive power, demand, and
      energy usage data recorded by Transmission Owner metering equipment
      located at the Generator-Owned Interconnection Facilities and Bonneville
      Power Administration point-of-delivery metering equipment.
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 3.4.5  | System Quality. Generators facilities and
      equipment shall not cause changes in transmission system voltage greater
      than 4 percent for contingencies nor cause excessive voltage flicker nor
      introduce excessive distortion to the sinusoidal voltage or current waves
      as set forth by industry standards, Bonneville Power Administration
      standards, and Good Utility Practices.                                                                                                                                                                                                                                                                                                                                              
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 3.4.6  | Switching, Tagging, Grounding, and Isolation
      Rules. Generator shall comply with Transmission Owners switching,
      tagging, grounding, and isolation rules as such rules may be modified by
      Transmission Owner from time to time. Transmission Owner will notify
      Generator in advance of any changes in the switching, tagging, grounding,
      and isolation rules.                                                                                                                                                                                                                                                                                                                                                                   
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 3.4.7. | Synchronization. Generator will own and maintain
      equipment that will automatically synchronize the Facility to the
      Transmission System.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 3.4.8. | Inspection. Transmission Owner shall have the
      right, but shall have no obligation or responsibility to: i) observe
      Generators tests and/or inspection of any of Generators protective
      equipment; ii) review the settings of Generators protective equipment;
      and iii) review Generators maintenance records relative to the Facility
      and/or Generator's protective equipment. The foregoing rights may be
      exercised by Transmission Owner from time to time as deemed necessary
      by                                                                                                                                                                                                                             

11

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| |        | Transmission Owner upon reasonable notice to Generator.
      However, the exercise or non-exercise by Transmission Owner of any of the
      foregoing rights of observation, review or inspection shall be construed
      neither as an endorsement or confirmation of any aspect, feature, element,
      or condition of the Facility or Generator's protective equipment or the
      operation thereof, nor as a warranty as to the fitness, safety,
      desirability, or reliability of same.                                                                                                                                                                                                                                                                                                     
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 3.4.9  | Testing. Each Party shall perform routine
      inspection and testing of its facilities and equipment in accordance with
      Good Utility Practice as may be necessary to ensure the continued
      connection of the Facility with the Transmission System in a safe and
      reliable manner. Each Party shall, at its own expense, have the right to
      observe the testing of any of the other Party's facilities and equipment
      whose performance may reasonably be expected to affect the reliability of
      the observing Party's facilities and equipment. Each Party shall notify
      the other Party in advance of its performance of tests of its facilities
      and equipment, and the other Party may have a representative attend and be
      present during such testing.
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 3.4.10 | Deficiencies and Defects. If the observing Party
      observes any deficiencies or defects which might reasonably be expected to
      adversely affect its operations, it may notify the other Party and said
      Party will be responsible for making any corrections necessitated by Good
      Utility Practice. Notwithstanding the foregoing, the observing Party shall
      have no liability whatsoever for failure to give such notice, it being
      agreed that the Party owning such equipment, systems or facilities will be
      fully responsible and liable for all such activities, tests, installation,
      construction or modification.                                                                                                                                         

|3.5 | Operation and Maintenance of the Transmission
      Owner-Owned Interconnection Facilities, the System Upgrades and the
      Transmission System
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                  
|    | 3.5.1                                                                                                                                            

12

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| |       | System in a safe and efficient manner and in accordance
      with Good Utility Practice.                                                                                                                                                                                                                                                                                                                                                                        
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 3.5.2 | Notification of Limiting Conditions on Transmission
      System. To the extent practicable, Transmission Owner will notify
      Generator of any Transmission System condition that restricts or limits
      the ability of the Facility to deliver its full output of Generation to
      the Point of Delivery as soon as practicable. Generator will not be
      allowed to operate under conditions identified in Exhibit 8 and as
      described below.

|3.6 | Scheduled Outages and Maintenance
  Scheduling
|--- | ----------------------------------------------
|    |                                               
|    | 3.6.1.                                        
|    |                                               
|    | 3.6.2.                                        
|    |                                               
|    | 3.6.3.                                        
|    |                                               
|    | 3.6.4                                         

13

---

| |       | to impact the other Party. Each Party will provide
      advance notice to the other Party before undertaking any work in these
      areas, especially in electrical circuits involving circuit breaker trip
      and close contacts, current transformers, or potential
  transformers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 3.6.5 | Observation of Deficiencies. If a Party observes
      any deficiencies or defects on, or becomes aware of a lack of scheduled
      maintenance and testing with respect to, the other Party's facilities and
      equipment that might reasonably be expected to adversely affect the
      observing Party's facilities and equipment, the observing Party shall
      provide notice to the other Party that is prompt under the circumstance,
      and the other Party shall make any corrections required in accordance with
      Good Utility Practice; provided, however that neither Party shall have a
      duty or obligation to inspect the other Partys facilities or equipment
      and shall not be liable to the other for any failure to provide the notice
      specified in this Section 3.6.5.

|3.7 | Emergency Procedures
|--- | --------------------
|    |                     
|    | 3.7.1               

14

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| | 3.7.2 | Actions By Parties.
| | ----- | -------------------
| |       |                    
| |       | (A)                
| |       |                    
| |       | (B)                
| |       |                    
| |       | (C)                

|3.8 | Abnormal or Out of Limit Operating Condition
      Procedures.
|--- | --------------------------------------------------------------
|    |                                                               
|    | 3.8.1                                                         

15

---

| |       | operations. Said notifications shall indicate the reasons
      for the Abnormal or Out of Limit Operating Condition, the Abnormal or Out
      of Limit Operating Conditions expected effect on the operation of
      Generators or Transmission Owners facilities and operations, the
      Abnormal or Out of Limit Operating Conditions expected duration, and the
      corrective action to be taken with respect to the notifying Partys
      facilities.                                                                                                                                                                                                                                
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | 3.8.2 | Mitigation or Elimination. To the extent
      necessary, each Party agrees to cooperate and coordinate with the other
      Party in taking whatever corrective measures on its facilities as are
      necessary to mitigate or eliminate the Abnormal or Out of Limit Operating
      Condition, including but not limited to, to the extent necessary,
      disconnection the Facility from the Transmission Owners system, or
      adjusting operation of equipment to within its rated operating parameters,
      provided such measures are consistent with Good Utility Practice and do
      not require operation of any of the Parties facilities outside their
      operating limits.

|3.9 | Protective Relays. Each Party shall provide and
      maintain mutually beneficial protective relay schemes on its side of the
      Point of Receipt. Generator agrees to have all such protective relay
      scheme settings reviewed and approved by Transmission Owner, which
      approval shall not be unreasonably withheld or delayed, in order to ensure
      proper coordination with existing Transmission Owner protective relay
      schemes, and further agrees to operate such schemes in compliance with
      Transmission Owner-approved settings. Each Party agrees to test such
      schemes at intervals determined by Transmission Provider consistent with
      Good Utility Practice. Upon completion of each test, the results of the
      test shall be provided to the other Party. Each Party will notify the
      other in writing as soon as practicable of any failures in, or any setting
      or design changes to, such protective relay
schemes.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

---

|3.10 | Metering. Metering shall be in accordance with
      Exhibit 7 of this Agreement.
|---- | ---------------------------------------------------------------------------------
|     |                                                                                  
|     | 3.10.1                                                                           
|     |                                                                                  
|     | 3.10.2.                                                                          
|     |                                                                                  
|     | 3.10.3.                                                                          

17

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mutually agreed upon in a power sales
agreement for the purchase of energy by the Generator from Transmission
Owner.

| | 3.10.4. | Metering Data.
| | ------- | --------------
| |         |               
| |         | 3.10.4.1      
| |         |               
| |         | 3.10.4.2      

| | 3.10.5. | Communications. At Generators expense, Generator
      shall maintain satisfactory operating communications with Transmission
      Owners system dispatcher or representative, as designated by Transmission
      Owner. Generator will provide standard voice and facsimile communications
      at its Facility control room through use of the public telephone system.
      Generator will also reimburse the Transmission Owner for the cost of
      radio, public telephone, private fiber optic and/or satellite equipment
      necessary for voice and data communications. Any required maintenance of
      such communications equipment shall be performed at Generators expense by
      Transmission Owners representative. Operational communications shall be
      activated and maintained under, but not be limited to, the following
      events: system paralleling or separation, scheduled
and
| | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

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| |         | unscheduled shutdowns, equipment clearances, and regular
      interval and daily load data.                                                                                                                                                                                                                                                                                                                                                                                                               
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 3.10.6. | Meter Inaccuracy. If, at any time, any metering
      equipment is found to be inaccurate by a margin of greater than that
      allowed by Transmission Owner system operations or for BPA billing
      purposes, Transmission Owner or Generator, depending on whose equipment
      has malfunctioned, shall cause such metering equipment to be made accurate
      or replaced. Meter readings for the period of inaccuracy shall be adjusted
      so far as the same can be reasonably ascertained.
| |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 3.10.7. | Losses.If the Metering Point(s) and the Point of
      Delivery are not at the same location, losses occurring between the
      Metering Point(s) and the Point of Delivery shall be taken into account.
      Such losses, if any, shall be shown in Exhibit 5, Real Power
  Losses.                                                                                                                                                                                                                     

|3.11 | Information and Record-keeping Obligations and Audit
      Rights
|---- | -----------------------------------------------------------------
|     |                                                                  
|     | 3.11.1                                                           
|     |                                                                  
|     |                                                                  
|     |                                                                  
|     |                                                                  

19

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| | (1) | Transmission Owner may not use information or data
      provided by Generator for any purpose other than to operate, maintain, or
      plan the Transmission System or the regional network pursuant to Good
      Utility Practice or for the purposes of PNGC Power forecasting and
      scheduling transmission and power to Transmission Owners load.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                              
| | (2) | Output Records  Generator shall maintain, and make
      available to Transmission Owner upon request, hourly records of generation
      output amounts.                                                                                                                                                                                                   

| | 3.11.2 | Record-keeping Obligations. Each Party shall
        maintain such records as required by WECC or successor organization, NERC,
        or FERC and this Agreement, and all data, documents, or other materials
        relating to or substantiating any charges to be paid by or to Transmission
        Owner or Generator, as the case may be, for a minimum period of three
        (3) years from the date that such records are gathered. Neither Party
        shall use the accounts or records of the other Party without the express
        written consent of the other Party unless such use is permitted by this
        Agreement or required by law.
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 3.11.3 | Audit Rights. Each Party shall have the right,
        within three (3) years following a calendar year, to audit the other Partys
        accounts and records pertaining to this Agreement, at that other Partys
        offices where such accounts and records are maintained, provided proper
        notice is given prior to any audit, and provided further that the audit
        will be limited to those portions of such accounts and records that relate
        to services provided under this Agreement for that calendar year.                                                                                                                    

|3.12 | Responsibility for Safety of Employees, etc. The
      Parties agree to be solely responsible for and assume all liability for
      the safety and supervision of their own employees, agents,
      representatives, and subcontractors.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

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|3.13 | Compliance with Applicable Laws. All work
      performed by either Party which could be expected to affect the operations
      of the other Party will be performed in accordance with all applicable
      laws, rules and regulations pertaining to the safety of persons or
      property, including without limitation, compliance with the safety
      regulations and standards adopted under the Occupational and Safety Health
      Act of 1970, as amended from time to time, the National Electrical Safety
      Code, as amended from time to time, and Good Utility Practice.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|3.14 | Environmental Compliance and Procedures.The
      Parties agree to comply with (A) all applicable Environmental Laws which
      affect the ability of the Parties to meet their obligations under this
      Agreement; and (B) all local notification and response procedures required
      for all applicable environmental and safety matters which affect the
      ability of the Parties to meet their obligations under this
    Agreement.                                                                                                                                           

ARTICLE 4 WHEELING PROVISIONS

|4.1 | Point of Receipt, Point of Delivery.The Point of
      Receipt and Point of Delivery shall be as specified in Exhibit 2, Point of
      Receipt, Point of Delivery.                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                          
|4.2 | Transmission of Power.The Transmission Provider
      will provide firm transmission service from the Point of Receipt to the
      Point of Delivery up to the amount specified in Exhibit 6, Maximum Annual
      Transmission Demand.                                 
|    |                                                                                                                                                                                                                                                                          
|4.3 | Payment for Transmission Service.Transmission
      Customer shall pay Transmission Provider for transmission service in
      accordance with the payment methodology in Exhibit 3. Transmission
      Provider may update values used in Exhibit 3 from time to
  time.

21

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|4.4 | Real Power Losses.In transmitting power from the
      metering point to the Point of Delivery, real power losses are incurred.
      The amount delivered to the Point of Delivery for any hour shall be
      adjusted to include any such losses. Such Real Losses are as documented in
      Exhibit 5 and may be updated by Transmission Provider from time to time.
      As an alternative to adjusting the amount delivered to the Point of
      Delivery as described above, an option based on the Parties mutual
      agreement, may be for the Transmission Customer to purchase power, in an
      amount equivalent to the losses between the metering point and Point of
      Delivery, from the Transmission Provider. Power purchased under this
      option would be delivered by the Transmission Owner to the Point of
      Delivery at the times requested by the Transmission Customer, and under
      such rates as agreed by the parties.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|4.5 | Curtailment.Transmission Provider may curtail
      deliveries as required to maintain reliability on its system. Transmission
      Provider shall incur no responsibility or liability for revenues lost by
      the Transmission Customer during such curtailments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|4.6 | Notification of Generation Schedule.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    | a.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    | b.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    | c.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

22

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| |    | Preschedule days shall be as determined by Western
      Electric Coordinating Council (WECC).                                                                                                                                                                                                                                                                                                                                         
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | d. | Generator shall notify Transmission Owners scheduling
      agent of any change of more than 1 MW from the expected generation
      schedule provided under section 4.6(c). Generator shall not be obligated
      to generate at the estimated levels, but shall be liable for any charges
      incurred by Transmission Owner or its scheduling agent, PNGC, as a result
      of Generators failure to comply with this
section.

|4.7 | Request to Increase Annual Maximum Demand.Transmission Customer may request higher Annual Maximum Demand amounts
      by submitting such request in writing to Transmission Provider at least
      180 days prior to the effective date of the requested increase. If
      Transmission Provider can accommodate such request, acceptance of the
      request will not be unreasonably withheld. If such request can not be
      accommodated, Transmission Provider shall enter into negotiations with
      Transmission Customer to upgrade Transmission Providers system, at
      Transmission Customers expense, to accommodate such
  request.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 5COST, RESPONSIBILITY AND BILLING
PROCEDURES

|5.1 | Generators Cost Responsibility for Operation and
      Maintenance of the Interconnection Facilities and Metering Equipment.
      Generator will reimburse Transmission Owner for all actual, reasonable
      costs incurred by Transmission Owner directly for the operation and
      maintenance of the Transmission Owner-Owned Interconnection Facilities
      pursuant to Exhibit 3. Upon expiration or termination of this Agreement,
      each Party shall be responsible for any costs associated with the
      operation and maintenance of any facilities owned by
it.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

23

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|5.2 | Billing Procedures                                                                                                                                                                                                                                              
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                 
|    | 5.2.1                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                 
|    | 5.2.2                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                 
|    | 5.2.3                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                 
|5.3 | Payment Not a Waiver. Payment of invoices by
      Generator will not relieve Generator from any responsibilities or
      obligations it has under this Agreement, nor will it constitute a waiver
      of any claims Generator may have under this
Agreement.

24

---

|5.4 | Interest. Interest shall be calculated using an
      interest rate equal to one and one-half percent (1.5%) per month. Interest
      on delinquent payments shall be calculated from the due date of the
      invoice to the date of payment. Payments made by mail shall be considered
      as having been paid on the date of receipt by the invoicing
  Party.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 6 CONFIDENTIALITY

|6.1 | General. Unless compelled to disclose by judicial
      or administrative process or other provisions of law or as otherwise
      provided for in this Agreement, each Party will hold in confidence any and
      all documents and information furnished by the other Party in connection
      with this Agreement; provided, however, that to the extent it is necessary
      for either Party to release or disclose such information to a third party
      in order to perform that Party's obligations herein, such Party shall
      advise said third party of the confidentiality provisions of this
      Agreement and use its best efforts to require said third party to agree in
      writing to comply with such provisions. Notwithstanding the foregoing
      sentence, Transmission Owner expressly agrees that information regarding
      the Facilitys output, markets for or purchase of that output, and any
      projected outage or maintenance schedule for the Facility or
      Interconnection Facilities shall be considered confidential and shall
      under no circumstances be shared with the personnel of the Transmission
      Owner, or any other entity, involved directly or indirectly in negotiating
      or effectuating power trading, purchases or sales of electricity, or
      trading futures.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|6.2 | Exempt Information and Documents. The Parties
      confidentiality obligations set forth in Section 6.1 shall not apply to
      information or documents that are (A) generally available to the public
      other than as a result of disclosure by a Party (the disclosing Party)
      to the other Party; (B) available to a Party on non-confidential basis
      prior to disclosure by the disclosing Party; or (C) available to a Party
      on a non-confidential basis from a source other than the disclosing Party,
      provided that the source is not known and, by reasonable effort, could not
      be known by the Party receiving such information or documents to be bound
      by a confidentiality agreement with the disclosing Party
  or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

25

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|    | otherwise prohibited from transmitting the information to
      the Party receiving such information or documents by a contractual, legal
      or fiduciary obligation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|6.3 | Notification. Each Party will promptly notify the
      other Party if it receives notice or otherwise concludes that the
      production of any confidential information or documentation furnished by
      the disclosing Party and subject to Section 6.1 is being sought under any
      provision of law or regulation, but the notifying Party shall have no
      obligation to oppose or object to any attempt to obtain such production
      except to the extent requested to do so by the disclosing Party and at the
      disclosing Partys expense. If either Party desires to object or oppose
      such production, it must do so at its own expense. The disclosing Party
      may request a protective order to prevent any confidential information
      from being made public.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|6.4 | Use of Information or Documentation. Each Party
      may utilize information or documentation furnished by the disclosing Party
      and subject to Section 6.1 in an administrative agency or court of
      competent jurisdiction addressing any dispute arising under this
      Agreement, subject to a confidentiality agreement with all participants
      (including, if applicable, any arbitrator) or a protective
order.                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|6.5 | Remedies Regarding Confidentiality. The Parties
      agree that monetary damages by themselves will be inadequate to compensate
      a Party for the other Partys breach of its obligations under Section 6.0.
      Each party accordingly agrees that the other Party is entitled to
      equitable relief, by way of injunction or otherwise, if it breaches or
      threatens to breach its obligations under Section
6.0.                                                                                                                                                                                                                                                                                                                                                                       

ARTICLE 7TERM, TERMINATION, AND DEFAULT

|7.1 | Term. This Agreement shall be effective upon the
      date the date of execution and shall remain in full force and effect until
      the expiration of the BLM right-of-way, which expires March 5, 2027,
      unless this agreement is terminated by mutual agreement of
  the
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

26

---

|     | Parties. At the option of the parties, which shall not be
      unreasonably withheld by either Party, and provided the BLM right-of-way
      is renewed, the term of this agreement may be extended for an additional
      term equal to the lesser of the term of the new or renewed BLM lease, or
      15-years, at the same terms and conditions.                                                                                                                                                                                                                                                                                                            
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7.2  | Effect of Expiration or Termination of Agreement on
      Liabilities and Obligations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | Expiration or termination of this Agreement shall not
      relieve Generator or Transmission Owner of any of its liabilities and
      obligations arising hereunder prior to the date of expiration or when
      termination becomes effective.                                                                                                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7.3. | Effectiveness of Certain Provisions After Expiration,
      Cancellation, or Termination of Agreement. The applicable provisions
      of this Agreement will continue in effect after expiration, cancellation,
      or early termination hereof to the extent necessary to provide for final
      billings, billing adjustments and the determination and enforcement of
      liability and indemnification obligations arising from acts or events that
      occurred while this Agreement was in effect. These provisions include,
      without limitation, Section 10 (Insurance) and Section 13 (Limitations
      on Liability and Indemnification).
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7.4  | Removal of Interconnection Facilities After Expiration
      or Termination of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | Agreement. Upon expiration or termination of this
      Agreement, either Party may remove the Interconnection Facilities owned by
      it at no cost to the other Party. Neither Party shall have any
      responsibility for any costs associated with the removal, relocation or
      other disposition or retirement of the Interconnection Facilities owned by
      the other Party.                                                                                                                                                                                                                                                                       
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7.5  | Default. A Party will be in default under this
      Agreement if, at any time:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | (A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

27

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| | (B) | (1) the Party fails in any material respect to comply
      with, observe or perform any term or condition of this Agreement; (b) any
      representation or warranty made herein by the Party fails to be true and
      correct in all material respects, or (c) the Party fails to provide to the
      other Party reasonable written assurance of its ability to perform fully
      and completely any of its material duties and responsibilities under this
      Agreement within thirty (30) days after receiving any reasonable request
      for such assurances from the other Party; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     | (2) The Party fails to correct or cure the situation
      within thirty (30) calendar days after receiving written notice from the
      other Party, or, (b), if the situation cannot be completely corrected or
      cured within such thirty-day period, the Party fails to either (i)
      commence diligent efforts to correct or cure the situation within such
      thirty-day period or (ii) completely correct or cure the situation in a
      reasonable time after receiving written notice from the other
  Party.                                                                    

|7.6 | Remedies Upon Default. If a Party defaults under
      this Agreement in accordance with Section 7.5, the other Party may (A) act
      to terminate this Agreement by providing written notice of termination to
      the defaulting Party, and/or (B) take whatever action at law or in equity
      as may appear necessary or desirable to enforce the performance or
      observance of any rights, remedies, obligations, agreements, or covenants
      under this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|7.7 | Performance of Other Partys Obligations. If
      either Party (the defaulting Party) fails to carry out its obligations
      under this Agreement and such failure could reasonably be expected to have
      a material adverse impact on the Transmission System, the Interconnection
      Facility, the Facility, or the regional network, the other Party,
      following ten (10) days prior written notice (except in cases of
      Emergencies, in which case only such notice as is reasonably practicable
      in the circumstances is required), may, but will not be obligated to,
      perform the obligations of the defaulting Party (including, without
      limitation, maintenance obligations), in which case the defaulting Party
      will, upon presentation of an invoice therefore, reimburse the other Party
      for all actual and reasonable costs and expenses incurred by it in
      performing said obligations of the

28

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|    | defaulting Party (including, without limitation, costs
      associated with its employees and the costs of appraisers, engineers,
      environmental consultants and other experts retained by said Party in
      connection with performance of the defaulting Partys obligations),
      together with interest calculated in accordance with Section
5.4.                                                                                                                         
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|7.8 | Remedies Cumulative. No remedy conferred by any of
      the provisions of this Agreement is intended to be exclusive of any other
      remedy and each and every remedy shall be cumulative and shall be in
      addition to every other remedy given hereunder or now or hereafter
      existing at law or in equity or by statute or otherwise. The election of
      any one or more remedies shall not constitute a waiver of the right to
      pursue other available remedies.

ARTICLE 8 REPRESENTATIONS

|8.1 | Representations of Transmission Owner.
      Transmission Owner represents and warrants the following:
|--- | ------------------------------------------------------------------------------------------------------
|    |                                                                                                       
|    | 8.1.1                                                                                                 
|    |                                                                                                       
|    | 8.1.2                                                                                                 

29

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| |       | legal, valid and binding agreement of Transmission Owner
      enforceable against it in accordance with its terms, except as limited by
      any applicable reorganization, insolvency, liquidation, readjustment of
      debt, moratorium, or other similar laws affecting the enforcement of
      rights of creditors generally as such laws may be applied in the event of
      reorganization, insolvency, liquidation, readjustment of debt or other
      similar proceeding of or moratorium applicable to Transmission Owner and
      by general principles of equity (regardless of whether such enforceability
      is considered in a proceeding in equity or law.                                                                                                                                                                                                         
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 8.1.3 | Transmission Owner has obtained or will obtain all
      approvals of, and has given or will give all notices to, any public
      authority that are required for Transmission Owner to execute, deliver and
      perform its obligations under this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 8.1.4 | To the best of Transmission Owners knowledge, it is not
      in violation of any applicable law, statute, order, rule or regulation
      promulgated by, or judgment, decree, writ, injunction, or award rendered
      by, any federal, state, or local governmental court or agency which,
      individually or in the aggregate, would adversely affect Transmission
      Owners entering into or performance of its obligations under this
      Agreement. Transmission Owner is not aware of any pending or threatened
      litigation, suit, or claim, which would adversely affect Transmission
      Owners entering into or performance of its obligations under this
      Agreement. Transmission Owners entering into and performance of its
      obligations under this Agreement will not give rise to any default under
      any agreement to which it is a party.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 8.1.5 | Transmission Owner will comply with all applicable laws,
      rules, regulations, codes, and standards of all federal, state, and local
      governmental agencies having jurisdiction over Transmission Owner or the
      transactions under this Agreement and with which failure to comply could
      reasonably be expected to have a material adverse effect on either
      Party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

30

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|8.2 | Representations of Generator. Generator represents
      and warrants the following:
|--- | ------------------------------------------------------------------------------------
|    |                                                                                     
|    | 8.2.1                                                                               
|    |                                                                                     
|    | 8.2.2                                                                               
|    |                                                                                     
|    | 8.2.3                                                                               
|    |                                                                                     
|    | 8.2.4                                                                               

31

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| |       | Generators entering into or performance of its
      obligations under this Agreement. Generator is not aware of any pending or
      threatened litigation, suit, or claim, which would adversely affect
      Generators entering into or performance of its obligations under this
      Agreement. Generators entering into and performance of its obligations
      under this Agreement will not give rise to any default under any agreement
      to which it is a party.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | 8.2.5 | Generator will comply with all applicable laws, rules,
      regulations, codes, and standards of all federal, state, and local
      governmental agencies having jurisdiction over Generator or the
      transactions under this Agreement and with which failure to comply could
      reasonably be expected to have a material adverse effect on either
      Party.                                                                                                          

|8.3 | Representations of Both Parties. The Parties shall
      ensure that the representations in Sections 8.1 and 8.2 shall continue in
      full force and effect for the term of this
Agreement.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 9 DISPUTE RESOLUTION

|9.1. | Parties To Address First. When a Party believes
      that there is a dispute, disagreement or claim, that Party shall give the
      other Party written notice of the dispute, disagreement or claim. Such
      notice shall describe the nature and substance of the dispute,
      disagreement or claim and propose a resolution. Any dispute, disagreement,
      or claim arising out of or concerning this Agreement must first be
      addressed by the Parties prior to any Party seeking relief in a court
      having jurisdiction over such dispute. Representatives of the Parties must
      attempt to negotiate in good faith to resolve such dispute; disagreement
      or claim within thirty (30) days after notice of the dispute has been
      given.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|9.2  | Attorneys Fees. In the event of any legal action
      between Transmission Owner and Generator arising under this Agreement, the
      prevailing party shall recover all of its costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

32

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and reasonable attorneys fees in
connection with such action both at the trial and appellate levels.

ARTICLE 10 INSURANCE

|10.1 | General. Each Party agrees to maintain, at its own
      cost and expense, in full force and effect throughout the term of this
      Agreement the types of and minimum dollar amounts of insurance coverage
      set forth below relating to its own property and facilities:                                   
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                    
|     | 10.1.1                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                    
|     | 10.1.2                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                    
|     | 10.1.3                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                    
|10.2 | Claims Made. The coverages required under this
      Agreement must be maintained on a claims made basis. Each Party may
      require the other to maintain tail coverage for six (6) years on all
      policies written on a claims made basis.                                                             
|     |                                                                                                                                                                                                                                                                                                                    
|10.3 | Certificates of Insurance; Copies of Policies.
      Each Party agrees to provide the other with certificates of insurance
      evidencing the insurance coverage set forth in Section 10.1 and additional
      insured status. Each Party agrees to provide the other copies of all
      policies upon request.
|     |                                                                                                                                                                                                                                                                                                                    
|10.4 | Negotiation of Policy Limits. The Parties agree to
      negotiate in good faith the minimum policy limits for these coverages
      every five (5) years to take account of changes in
  inflation.                                                                                                               

33

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|10.5 | Additional Insureds; Notice of Cancellation. The
      general liability insurance policy or policies entered into pursuant to
      this Agreement by each Party must name the other Party as additional
      insureds, and must require thirty (30) days prior written notice to be
      given to such named additional insureds of cancellation, non-renewal,
      termination, and/or any material change in the policy or policies. Each
      Party waives its rights of recovery against the other for any loss or
      damage covered by such policy or policies to the extent that such loss or
      damage is reimbursed under such policy or policies.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|10.6 | Waiver of Subrogation. Each Party waives any right
      to subrogation under its respective insurance policies for any liability
      each has agreed to assume under this Agreement. Evidence of this
      requirement shall be noted on all certificates of insurance.                                                                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|10.7 | Failure to Comply. Failure of either Party to
      comply with the above insurance terms and conditions, or the complete or
      partial failure of an insurance carrier to fully protect and indemnify the
      other Party or its affiliates, or the inadequacy of the insurance shall
      not in any way lessen or affect the obligations or liabilities of each
      Party to the other.                                                                                                                                                                                                                                                                    

ARTICLE 11 NOTICES

|11.1 | General. Unless otherwise expressly provided
      elsewhere in this Agreement, all notices, demands, requests, or
      communications required or permitted to be given by either Party under
      this Agreement, or any instrument or documentation required or permitted
      to be delivered by either Party to the other, shall be delivered either by
      (A) hand; (B) registered or certified first class mail, postage prepaid,
      return receipt requested; (C) confirmed facsimile transmission; or (D) an
      overnight courier which provides evidence of delivery or refusal. All such
      notices shall be addressed as follows:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

34

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|Transmission Owner:                    |                                  
|-------------------------------------- | ---------------------------------
|                                       |                                  
|Transmission Owners Point of Contact: |                                  
|                                       |                                  
|Transmission Owners 24-hour contact:  | Raft Rivers On-call personnel   
|                                       |                                  
|Transmission Owners scheduling agent: | Real Time or Preschedule Operator
|                                       | PNGC                             
|                                       | 711 NE Halsey                    
|                                       | Portland, OR 97034               
|                                       | 503-287-1205 voice               
|                                       | 503-288-4930 fax                 
|To Generator:                          |                                  
|Point of Contact:                      |                                  
|Generators 24 Hour Contact:           |                                  
|                                       | Generators scheduling agent:    

|11.2 | Changes. Either Party may change its
      representatives, address for notices, or the person(s) to whom notices
      should be given by notice to the other in the manner provided
  above.                                                                                                                                                                                         
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                        
|11.3 | Emergencies. Notwithstanding Section 11.1, any
      notice concerning an Emergency or other occurrence requiring prompt
      attention may be made by telephone.                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                        
|11.4 | Authority of Party Representatives. The
      representatives identified in Section 11.1, or their designees, shall be
      authorized to act on behalf of the Parties, and their instructions,
      requests, and decisions will be binding upon the Parties as to all matters
      pertaining to this Agreement and the performance of the Parties
      hereunder.               
|     |                                                                                                                                                                                                                                                                                                                                                                                        
|11.5 | Points of Contact; 24-Hour Contact. Each Party
      shall identify a point of contact for day-to-day business as well as a
      twenty-four (24) hour point of contact; such person or persons shall have
      knowledge and control of that Partys facilities. The point of contact
      shall be the day-to-day method of communicating any and all changes in
      operational

35

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status and operational issues and
concerns relating to each Partys facilities. Any changes to the above listed
contacts shall be in writing in the manner provided above.

ARTICLE 12 FORCE MAJEURE

|12.1 | General. Neither Party shall be considered to
        be in default or breach of this Agreement or liable in damages or otherwise
        responsible to the other Party for any delay in or failure to carry out
        any of its obligations under this Agreement if, and only to the extent
        that, the Party is unable to perform or is prevented from performing by
        an event of force majeure. Notwithstanding the foregoing sentence, neither
        Party may claim force majeure for any delay or failure to perform or carry
        out any provision of this Agreement to the extent that such Party has
        been negligent or engaged in intentional misconduct or failed to exercise
        reasonable foresight and such negligence or intentional misconduct or
        failure to exercise reasonable foresight contributed to that Partys
        delay or failure to perform or carry out its duties and obligations under
        this Agreement. All performance obligations affected by the event of force
        majeure will be extended for a period equal to the length of the resulting
        delay.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|12.2 | Force Majeure Defined. The term force majeure
        means those events beyond the reasonable control of the Party claiming
        force majeure which, through the exercise of reasonable foresight and
        Good Utility Practice, that Party could not have avoided and to the extent
        that, by exercise of due diligence, that Party is unable to overcome.
        Such events include, but are not limited to, the following, to the extent
        they conform to the foregoing criteria: flood; lightning strikes; tsunami;
        earthquake; fire; hurricane; tornado; epidemic; war; invasion; riot; civil
        disturbance; sabotage; explosion; insurrection; military or usurped power;
        strike; labor dispute; action of any court or governmental authority,
        or any civil or military authority de facto or de jure; act of God or
        the public enemy; or any other event or cause of a similar nature beyond
        a Partys reasonable control.                                                                                                                                             

36

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|12.3 | Procedures. A Party claiming force majeure
      must:
|---- | ------------------------------------------------------
|     |                                                       
|     | (A)                                                   
|     |                                                       
|     | (B)                                                   
|     |                                                       
|     | (C)                                                   
|     |                                                       
|     | (D)                                                   
|     |                                                       
|     | (E)                                                   

ARTICLE 13Limitations on Liability and
Indemnification

|13.1 | Indemnification.With the exceptions of charges
      for which the Generator may be liable for under Section 3.4.3 and 3.4.4,
      or other charges as explicitly called out in the Agreement, neither Party
      nor any of its Affiliates, directors, officers, employees, Contractors or
      subcontractors shall be liable to the other party for such Partys
      consequential loss or damage, including but not limited to, loss of use or
      damage resulting from loss of use, loss of revenue, loss of profit, loss
      of goodwill, cost of capital, or increased cost of alternate facilities,
      regardless of legal theory or negligence, and each Party hereby releases
      the other party therefrom. This release of claims
against
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

37

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|     | Contractors and subcontractors for consequential damages
      shall apply only to the extent that a Party or any of its Affiliates,
      directors, officers or employees, may be liable (whether directly or
      indirectly) under any legal theory for the payment of such
  damages.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|13.2 | Conditions.No Party nor any of its Affiliates,
      directors, officers or employees shall have any liability for loss of or
      damage to the property of the other Party or in the custody or control of
      the other Party, as it is the intention of the Parties that each Party
      will rely upon its own insurance maintained by each Party on its own
      facilities as satisfaction for such loss or damage, and each Party hereby
      releases the other Party therefrom. Each Party shall obtain or maintain or
      cause to be obtained or maintained insurance in amounts and coverages that
      are commercially reasonably for such Party, and each Party waives any
      right of subrogation and shall obtain an endorsement in which its insurer
      shall waive any right of subrogation to the rights of any insured party
      there under against the other Party or their respective Affiliates,
      directors, officers, or employees, as the case may be.                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|13.3 | Settlement.Both parties hereby agree to
      indemnify, protect, save and keep other Party, its Affiliates, directors,
      officers, employees, Contractors and subcontractors, (collectively, the
      Transmission Owner Indemnities and Generator Indemnities) harmless
      from and against any and all claims brought by any person or entity for
      liabilities, obligations, losses, damages, demands, government fines,
      actions, suits, costs, expense and disbursements (including legal fees and
      expenses) of any kind and nature whatsoever (collectively for purposes of
      this Article 13, the Expenses) which may be imposed on, incurred by or
      asserted at any time against any Transmission Owner Indemnitor or
      Generator Indemnitor in any way relating to the construction of the
      Interconnection Facilities owned by the Indemnifying Party, including but
      not limited to Expenses arising from damage to property of, and injury or
      death to any person, except to the extent that, such damage, injury or
      death is caused by the negligence or willful misconduct of the
      Transmission Owner Indemnitor or Generator Indemnitor, as
    applicable.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|13.4 | Survival.To the maximum extent allowed by law,
      both parties hereby agree to indemnify the other Party, protect, save and
      keep the Transmission Owner and Generator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

38

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|     | harmless from and against any and all claims brought by
      any person or entity (other than Transmission Owner Indemnities in their
      capacity as Transmission Owner Indemnities) for consequential damages
      (including legal fees and expenses), including by not limited to, loss of
      use or damage resulting from loss of use, loss or revenue, loss of profit,
      loss of goodwill, cost of capital, or increased cost of alternate which
      may be imposed on or asserted at any time against any Transmission Owner
      Indemnity or Generator Indemnity by any purchaser or user of Project
      Output contracting with Generator for such Project Output, or persons
      claiming through such purchasers or users, which in ay manner relate to
      Transmission Owners provision of or failure to proved Wheeling or
      transmission services in accordance with this Agreement. Such indemnity
      obligation shall not be diminished by any other provision of the
      Agreement.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|13.5 | Each Party shall indemnify and hold harmless the other
      Party against any and all claims asserted by the owners of land burdened
      by rights-of-way and easements granted by Transmission Owner to Generator
      and any of its Contractors, subcontractors, consultants, agents or any of
      their employees, except to the extent such claims are caused by the
      negligence or willful misconduct of any Transmission Owner Indemnity or
      Generator Indemnity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|13.6 | If either Party receives notice of the commencement of
      any legal action relating to or arising out of the operation of the
      Project or the Transmission Owner Interconnection Equipment, the Party so
      notified shall promptly notify the other Party of the commencement of such
      legal action. Failure to so notify the other Party shall not relieve
      either Party of any liability or obligations to the other Party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|13.7 | Nothing in the Agreement shall be construed to create any
      duty, standard of care or liability to any person not a party to this
      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|13.8 | No undertaking by either Party to the other under any
      provision of the Agreement shall constitute the dedication of that Partys
      electrical system, equipment, or facilities or any portion thereof to the
      other Party or to the public.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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|13.9  | Except where specifically stated in this Agreement to be
      otherwise, the duties, obligations and liabilities of the Parties are
      intended to be several and not joint or collective. Nothing contained in
      this Agreement shall ever be construed to create an association, trust,
      partnership or joint venture or impose a trust or partnership duty,
      obligation or liability on or with regard to either Party.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                             
|13.10 | Survival. Each Partys indemnification obligation
      will survive expiration, cancellation or early termination of this
      Agreement.                                                                                                                                                                                                                                                                                                 

ARTICLE 14INTEGRATION

|14.1 | Entire Agreement. This Agreement sets forth the
      entire agreement and understanding of Generator and Transmission Owner
      with respect to the specific subject matter covered herein and supersedes
      all prior oral and written understandings and agreements, oral or written,
      between Generator and Transmission Owner with respect to the matters
      addressed herein.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 15 RELATIONSHIP OF PARTIES

|15.1 | Relationship of Parties. Nothing in this Agreement
      is to be construed or deemed to cause, create, constitute, give effect to,
      or otherwise recognize Transmission Owner and Generator to be partners,
      joint venturers, employer and employee, principal and agent, or any other
      business association, with respect to any matter.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                          
|15.2 | No Authority to Act for Other Party. Unless
      otherwise agreed to in writing signed by both Parties, neither Party shall
      have any authority to create or assume in the other Partys name or on its
      behalf any obligation, express or implied, or to act or purport to
    act                                                           

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|     | as the other Partys agent or legally empowered
      representative for any purpose whatsoever.                                                                                                                                                                           
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                            
|15.3 | No Liability for Acts of Other Party. Neither
      Party shall be liable to any third party in any way for any engagement,
      obligation, contract, representation, or any negligent act or omission of
      the other Party, except as expressly provided for
herein.

ARTICLE 16WAIVER

|16.1 | Waiver Permitted. Except as otherwise provided for
      in this Agreement, the failure of either Party to comply with any
      obligation, duty, agreement, or condition herein may be waived by the
      Party entitled to the benefits thereof only by a written instrument signed
      by the Party granting such waiver.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                 
|16.2 | Limited Nature of Waivers. Any waiver granted by a
      Party shall not be deemed a waiver with respect to any other failure of
      the Party granted a waiver to comply with any obligation, duty, agreement,
      or condition herein.                                                                                    

ARTICLE 17 AMENDMENTS

|17.1 | Amendments. This Agreement and the attachments
      hereto may only be modified, amended, changed, or supplemented in writing
      signed by Generator and Transmission Owner.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 18SUCCESSORS, ASSIGNS, AND THIRD PARTY
BENEFICIARIES

|18.1 | Binding On Parties, Successors, and Assigns. This
      Agreement shall be binding upon and inure to the benefit of the Parties
      hereto and their successors and permitted assigns.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|     | No person or party shall have any rights, benefits or
      interests, direct or indirect, arising from this Agreement except the
      Parties hereto, their successors and permitted assigns. The Parties
      expressly disclaim any intent to create any rights in any person or party
      as a third party beneficiary to this Agreement.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                  
|18.2 | Transmission Owner Assignment Rights.                                                                                                                                                                                                                                                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                  
|     | 18.2.1                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                  
|     | 18.2.2                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                  
|     | 18.2.3                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                  
|18.3 | Generator Assignment Rights.                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                  
|     | 18.3.1                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                  
|     | 18.3.2                                                                                                                                                                                                                                                                                                                                           

42

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| |         | collateral assignment of this Agreement for financing or
      refinancing purposes, (B) any affiliate of Generator, (C) any entity(ies)
      that acquires all, or substantially all, of Generators rights or
      interests in the Facility and agrees in writing to be bound by all of the
      obligations and duties of Generator provided for in this Agreement, or (D)
      any entity that operates the Facility. Transmission Owner agrees to
      execute and deliver such documents as may be reasonably necessary to
      accomplish any such assignment, transfer, pledge or disposition of
      rights.
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 18.3.3. | Any assignment by Generator in violation of this section
      shall be, at Transmission Owners option, null and void from its
      inception.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

|18.4 | Assigning Party to Remain Responsible. Any
      assignments authorized by Sections 18.2 and 18.3 shall not operate to
      relieve the Party assigning this Agreement or any of its rights, interests
      or obligations hereunder of the responsibility of full compliance with the
      requirements of this Agreement.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 19 LABOR DISPUTES

|19.1 | Notice. Each Party agrees to promptly notify the
      other, orally and then in writing, of any labor dispute or anticipated
      labor dispute which may reasonably be expected to affect the operations of
      the other Party.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 20GOVERNING LAW AND INTERPRETATION

|20.1 | Applicable Law. This Agreement and all rights,
      obligations, and performances hereunder are subject to all applicable
      federal and state laws and to all duly promulgated orders and other duly
      authorized action of any governmental authority with competent
      jurisdiction.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|20.2 | Governing Law. This Agreement is to be governed by
      federal law where applicable, and when not in conflict with or preempted
      by federal law, this Agreement shall be governed by and construed in
      accordance with the laws of the State of Idaho without regard to its
      conflict of laws principles. Except for those matters which must be
      brought to the FERC or which are resolved through arbitration, any action
      arising out of or concerning this Agreement must be brought in the courts
      of the State of Idaho.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|20.3 | Conflicts Between Main Body of Agreement and
      Attachments. In the event of a conflict between the main body of this
      Agreement and any attachment hereto, the terms of the main body of this
      Agreement shall govern.                                                                                                                                                                                                                                                                                                                          

ARTICLE 21 HEADINGS AND CAPTIONS

|21.1 | No Effect on Interpretation. The headings and
      captions contained in this Agreement are for convenience only and shall
      not affect the interpretation of this Agreement.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 22 COUNTERPARTS

|22.1 | Counterpart Execution Permitted. This Agreement
      may be executed in two or more counterparts, each of which shall be deemed
      an original but all of which together shall constitute one and the same
      instrument.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 23 SEVERABILITY

|23.1 | Severable Nature of Agreement. If any provision of
      this Agreement or the application thereof to any person or circumstances
      is, to any extent, held to be invalid or unenforceable, the remainder of
      this Agreement, or the application of such provision to persons or
      circumstances other than those as to which it is held to be invalid
    or
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | unenforceable, will not be affected thereby, and
        each provision of this Agreement shall be valid and enforceable to the
        fullest extent permitted by law.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 24
  OTHER CONDITIONS

|24.1 | Further Acts. Each Party agrees to furnish
        to each other such further information, to do such other and further acts,
        and to execute and/or deliver such instruments and documents, as the other
        Party may reasonably request from time to time in furtherance of the purposes
        of this Agreement.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IN WITNESS HEREOF, this Agreement has been duly executed by the Parties hereto.

|Generator |                     | Transmission Owner
|--------- | ------------------- | ------------------
|          |                     |                   
|By:       | /s/ Douglas Glaspey |                   
|          |                     |                   
|          |                     |                   
|Title:    | COO                 |                   
|          |                     |                   
|Date:     | 3-9-06              |                   

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