Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - US Geothermal Inc. - Exhibit

Service Agreement No. 05TX-11399 

SERVICE AGREEMENT 
for 
POINT-TO-POINT

TRANSMISSION SERVICE 
executed by the 
UNITED
STATES OF AMERICA 
DEPARTMENT OF ENERGY 
acting by
and through the 
BOMV-EVILLE POWER ADMINISTRATION 
and 
U.S.
GEOTHERMAL, INC. 

	1. 	
      This Service Agreement, dated as of 0 6 / 2 4 / 2 0
      0 5 , is entered into, by and between the Bonneville Power
      Administration Transmission Business Line (Transmission Provider) and U.S.
      Geothermal, Inc. (Transmission Customer).

	 	 
	2. 	
      The Transmission Customer has been determined by the
      Transmission Provider to have a Completed Application for Point-to-Point
      (PTP) Transmission Service under the Transmission Provider's Open Access
      Transmission Tariff (Tariff).

	 	 
	3. 	
      The Transmission Customer has provided to the
      Transmission Provider a deposit, unless such deposit has been waived by
      the Transmission Provider, for F'irm Point- to-Point Transmission Service
      in accordance with the provisions of section 17.3 of the Tariff.

	 	 
	4. 	
      Service under this agreement shall commence on 0000 hours
      on June 1,2006. Service under this agreement shall terminate on such date
      as mutually agreed upon by the parties.

	 	 
	5. 	
      The Transmission Provider agrees to provide and the
      Transmission Customer agrees to take and pay for Point-to-Point
      Transmission Service in accordance with the provisions of Part I1 of the
      Tariff and this Service Agreement.

	 	 
	6. 	
      Any notice or request made to or by either Party
      regarding this Service Agreement shall be made to the representative of
      the other Party as indicated in Exhibit B.

	 	 
	7. 	
      The Tariff, Exhibit A (Specifications for
      Long-Term Firm Point-To-Point Transmission Service), and Exhibit B
      (Notices),are incorporated herein and made a part hereof. Capitalized
      terms not defined in this agreement are defined in the
  Tariff.

	8. 	
      This Service Agreement shall be interpreted, construed
      and enforced in accordance with Federal law.

	 	 
	9. 	
      This Service Agreement shall inure to the benefit of and
      be binding upon the Parties and their respective successors and
      assigns.

	 	 
	10. 	
      The Transmission Customer and the Transmission Provider
      agree that provisions of section 3201(i)of Public Law 104-134 (Bonneville
      Power Administration Refinancing Act) are incorporated in their entirety
      and hereby made a part of this Service Agreement.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement
  to be executed by their respective authorized officials. 

	U.S. GEOTHERMAL, INC.	 	UNITED STATES OF AMERICA

      Department of Energy

      Bonneville Power Administration
	 	 	 	 	 
	By:	/s/ Douglas J. Glaspey	 	By:	/s/ Richard A. Gillman
	 	 	 	 	  
	Name:

      (Print/Type) 	Douglas J. Glaspey	 	Name:
 (Print/Type) 	Richard A. Gillman
	 	 	 	 	 
	Title:	COO & Director	 	Title:	Transmission Account Executive
	 	 	 	 	 
	Date:	06/24/2005	 	Date:	6/22/05

	Service Agreement No.
      05TX-11399, U.S. Geothermal, Inc. 	2
    

EXHIBIT A

  SPECIFICATIONS FOR LONG-TERM FIRM

  POINT-TO-POINT TRANSMISSION SERVICE 

TABLE 1A

  REQUEST FOR TRANSMISSION SERVICES

  The OASIS Assignment Reference Number (ARef) is: 1424987. 

	1. 	
      TERM OF TRANSACTION

	 	 
		
      Start Date: at 0000 hours on June 1,2006.

	 	 
		
      Termination Date: at 0000 hours on June 1,2036, provided,
      however, that service under this agreement shall terminate on the earlier
      of: (i) the date mutually agreed upon by the parties; or (ii) the date
      Raft River Rural Electric Cooperative terminates the Transmission
      Provider's lease of transmission facilities under Contract No. DE-
      MS79-84BP91697, as it may be amended or replaced.

	 	 
	2. 	
      DESCRIPTION OF CAPACITY AND ENERGY TO BE TRANSMITTED
      BY TRANSMISSION PROVIDER

	Delivering 
 Party
 (Resource)l	POR 

      Name & 

      Voltage 	POR 

      Control 

      Area 	Reserved 

      Capacity 

      (kW) 	POD 

      Name & 

      Voltage 	POD 

      Control 

      Area 	Reserved 

      Capacity 

      (kW) 	
 Receiving

      Party 

	Transmission 

      Customer 
	Bridge 34.5 kV 

      
	IPC 

      
	12,000 

      
	Minidoka 

      PP 138 kV- 

      IPC 	IPC 

      
	12,000 

      
	IPC

	Total Reserved Capacity 	12,000 	  	  	  	  

	3.	POINT OF RECEIPT 
	 	  
	 	BRIDGE SUBSTATION 34.5 kV 
	 	  
		
      Location: the point in the Transmission
      Provider's Bridge Substation where the 34.5 kV facilities of the
      Transmission Provider and Raft River Rural Electric Cooperative, Inc. are
      connected. It is the Transmission Customer's responsibility to arrange for
      the delivery of power from the generation site(s) to this Point of
      Receipt. 

	 	
      

	 	
      Voltage: 34.5 kV 

	 	
      

		
      Metering: in the Transmission Provider's
      Bridge Substation and at the Transmission Customer's generation site(s)in
      the 34.5 kV circuits over which such electric power flows.
  

1 The Resource, POR, POD and the whole transmission
path are in the control area of Idaho Power Company (IPC), who is also the
purchaser of the power from the Resource. 

	05TX-11399, U.S. Geothermal, Inc. 	Page 1of
      4 
	Exhibit A, Table 1A 	Effective at 0000 hours 
	Specifications for Long-Term Firm
      Point-To-Point Transmission Service 	on June 1,2006 

	4. 	
      POINT OF DELIVERY

	 	 
		
      MINIDOKA PP 138 kV - IPC POINT OF
      DELIVERY

	 	 
		
      Location: in the Government's Minidoka Power Plant
      where the 138 kV facilities of the Government and IPC are
  connected;

	 	 
		
      Voltage: 138 kV,

	 	 
		
      Metering: None. It is the responsibility of the
      Transmission Customer to assure that metering is implemented consistent
      with IPC's requirements.

	 	 
		
      Exceptions: Loss returns are not required by the
      Transmission Provider at this time. It is the responsibility of the
      Transmission Customer to work with IPC as the POR and POD Control Area to
      determine the implementation of loss returns.

	 	 
	5. 	
      DESIGNATION OF PARTY SUBJECT TO RECIPROCAL SERVICE
      OBLIGATION

		
      US. Geothermal, Inc.

	 	 
	6. 	
      NAMES OF ANY INTERVENING SYSTEMS PROVIDING
      TRANSMISSION SERVICE

		
      None.

	 	 
	7. 	
      SERVICE AGREEMENT CHARGES

		
      Service under this Agreement will be subject to some
      combination of the charges detailed in Tables 1, 2 and 3 of this exhibit.
      (The appropriate charges for transactions will be determined in accordance
      with the terms and conditions of the Tariff.)

	 	(a) 	
      Transmission Charge

	 		
      PTP-04 Rate Schedule or successor rate
  schedules.

	 	(1)	
      Reservation Fee

	 		
      Within 30 days after the Transmission Customer signs this
      Service Agreement, the first annual nonrefundable reservation fee of
      $12,336 shall be paid to the Transmission Provider. For the second and any
      subsequent reservation fees, the Transmission Provider will bill the
      Transmission Customer 30 days prior to their due date. If the deferral or
      extension of service spans two or more rate periods, the reservation fee
      will be based on the PTP Rate in effect at the time each payment is due.
      The Reservation Fee is based on the PTP Rate only and not on any of the
      Ancillary Services.

	 	 	 
	 	(2) 	
      Short Distance Discount (SDD)

	 		
      [0.6 + (0.4 x transmission
distancel75)]

	05TX-11399, U.S. Geothermal, Inc. 	Page 2of
      4 
	Exhibit A, Table 1A 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on June 1,2006 

	Path 
	Circuit 
Miles 	Transmission 
Demand (kW)
	SDD Factor 

	Bridge - Minidoka 	40.9 	12,000 	0.8182

	 	(b) 	 System Impact and/or Facilities Study Charge(s)

	 		 System Impact andlor Facilities Study Charges are not
        required at this time for service under this Service Agreement.

	8. 	
      OTHER PROVISIONS SPECIFIC TO THIS SERVICE
      AGREEMENT

		
      None.

	 	 
	9. 	
      CREDITWORTHINESSAND PREPAYMENT FOR
  SERVICE

		(a) 	
      The Transmission Provider's creditworthiness business
      practices and provisions shall apply, as revised or replaced.
  

		(b) 	
      The Transmission Customer shall make monthly prepayments
      of the charges specified in paragraph 9(e) of this section. The
      Transmission Customer shall make the prepayment on or before the 20th of
      each month for the subsequent month. Should the 20th fall on a weekend or
      Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later
      than May 20,2006, for the month of June, 2006.

		(c) 	
      The Transmission Customer shall wire transfer all
      prepayments to the Federal Reserve Bank in New York City so that they
      arrive no later than 2:00 p.m. Eastern Standard or Daylight Time,
      whichever is in effect. The Transmission Provider will verify that payment
      has been received at the Federal Reserve Bank.

		
      (d) 
	
      The Transmission Customer shall include the following
      information on all wire transfers under this Agreement:

	 	(1) 	
      ABA number - The ABA number for the Federal Reserve Bank
      in New York City is 021030004;

	 	 	 
	 	(2) 	
      Receiving Bank - "TREASNYC" designates the Federal
      Reserve Bank in New York City as the receiving bank;

	 	 	 
	 	(3) 	
      Product Code - "TREASNYCICTR";

	 	 	 
	 	(4) 	
      Account - Agency Location Code of 89001401 directs
      the payment to the BPA Fund in the U.S. Treasury;

__________________________________

  2 The SDD is not available for transmission from secondary points of integration.
  If a primary point of integration, associated with a SDD is moved to a secondary
  point of integration, at any time during the month, the SDD shall not be applied
  for that month. 

	05TX-11399, U.S. Geothermal, Inc. 	Page 3 of
      4 
	Exhibit A, Table 1A 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on June 1,2006 

	 		(5) 	Third Party Information - After "OBI=" the
      Transmission Customer should indicate "TRANSMISSION PREPAY" in order to
      identify the payment when it is received. 

	 	(e) 	
      The following charges are subject to prepayment: PTP Long
      Term Firm Transmission Service charges and Ancillary Service Charges. The
      monthly charge for long-term firm PTP transmission service under this
      Service Agreement shall be pursuant to the applicable PTP Rate Schedule,
      or its successor. Ancillary Service Charges shall be pursuant to the
      applicable ACS Rate Schedule, or its successor, and shall apply to the
      Ancillary Sewices in accordance with Exhibit A, Table 3. The amount
      of prepayment shall be determined using the applicable rates in effect for
      such service for the relevant month. Successors to the PTP and ACS rate
      schedules will apply to the prepayment obligations. Should the
      Transmission Customer purchase either short-term firm or nonfirm PTP
      transmission service under this Service Agreement, the Transmission
      Customer shall calculate such charges in accordance with the applicable
      rate and prepay such charges for each month as described in paragraph 9(b)
      of this section.

	 	 	
       

	 	(f) 	
      Prepayment pursuant to paragraph (e) above does not
      preclude the Transmission Provider from applying adjustments to such
      payments for other charges consistent with the applicable rate schedules,
      or to pass through to the Transmission Customer any additional charges not
      covered in paragraph (e) above for ancillary services which the
      Transmission Provider may be required to pay to the control area operator.
      Any such adjustments and charges are subject to payment under the
      Transmission Provider's normal transmission billing process.

	 	 	
       

	 	(g) 	
      If the Transmission Customer fails to make any payment as
      set forth above or to pay any amount owing on its Wholesale Transmission
      Bill on or before its due date, then, the Transmission Provider shall have
      the right to suspend transmission service for the period for which
      prepayment should have been provided, and, after 60 calendar days
      following written notice by the Transmission Provider to the Transmission
      Customer, the Transmission Provider shall have the right to terminate this
      Agreement.

	05TX-11399, U.S. Geothermal, Inc. 	Page 4 of
      4 
	Exhibit A, Table 1A 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on June 1,2006 

EXHIBIT A 
SPECIFICATIONS FOR LONG-TERM F I B

POINT-TO-POINT TRANSMISSION SERVICE 

TABLE 1B 
REQUEST FOR TRANSMISSION SERVICES

The OASIS Assignment Reference Number (ARef) is: 1434023. 

	1. 	
      TERM OF TRANSACTION

		
      Start Date: at 0000 hours on December 1,2008.

		
      Termination Date: at 0000 hours on December 1,2010,
      provided, however, that service under this agreement shall terminate on
      the earlier of: (i) the date mutually agreed upon by the parties; or (ii)
      the date Raft River Rural Electric Cooperative terminates the Transmission
      Provider's lease of transmission facilities under Contract No.
      DE-MS79-84BP91697, as it may be amended or replaced.

	 	 
	2. 	
      DESCRIPTION OF CAPACITY AND ENERGY TO BE TRANSMITTED
      BY TRANSMISSION PROVIDER

	Delivering 

        Party

        (Resource)l	POR 
Name &
      
Voltage 	POR 
Control 
Area
    	Reserved 
Capacity
      
(kW) 	POD
      
Name & 
Voltage 	POD 
Control 
Area
    	Reserved 
Capacity
      
(kW) 	

        Receiving

        Party 

	Transmission 
Customer 
	Bridge 34.5 kV 

	IPC 

	12,000 

	Minidoka 
PP 138 kV- 
IPC
    	IPC 

	12,000 

	IPC

	Total Reserved Capacity 	12,000 	  	  	  	  

	3. 	 POINT OF RECEIPT

	 	 
		 BRIDGE SUBSTATION 34.5 kV

	 	 
		 Location: the point in the Transmission Provider's
        Bridge Substation where the 34.5 kV facilities of the Transmission
        Provider and Raft River Rural Electric Cooperative, Inc. are connected.
        It is the Transmission Customer's responsibility to arrange for the delivery
        of power from the generation site(s) to this Point of Receipt.

	 	 
		 Voltage: 34.5 kV

	 	 
		 Metering: in the Transmission Provider's Bridge
        Substation and at the Transmission Customer's generation site(s) in the
        34.5 kV circuits over which such electric power flows.

1  The Resource, POR, POD and the whole
transmission path are in the control area of Idaho Power Company (PC), who 1s
also the purchaser of the power from the Resource. 

	05TX-11399, U.S. Geothermal, Inc. 	Page 1of
      4 
	Exhibit A, Table 1B 	Effective at 0000 hours 
	Specifications for Long-Term Firm
      Point-To-Point Transmission Service 	on December 1,2008 

	4. 	
      POINT OF DELIVERY

	 	 
		
      MINIDOKA PP 138 kV - IPC POINT OF
      DELIVERY

	 	 
		
      Location: in the Government's Minidoka Power Plant
      where the 138 kV facilities of the Government and IPC are
  connected;

	 	 
		
      Voltage: 138 kV,

	 	 
		
      Metering: None. It is the responsibility of the
      Transmission Customer to assure that metering is implemented consistent
      with IPC's requirements.

	 	 
		
      Exceptions: Loss returns are not required by the
      Transmission Provider at this time. It is the responsibility of the
      Transmission Customer to work with IPC as the POR and POD Control Area to
      determine the implementation of loss returns.

	5. 	
      DESIGNATION OF PARTY SUBJECT TO RECIPROCAL SERVICE
      OBLIGATION

		
      US. Geothermal, Inc.

	 	 
	6. 	
      NAMES OF ANY INTERVENING SYSTEMS PROVIDING
      TRANSMISSION SERVICE

		
      None.

	 	 
	7. 	
      SERVICE AGREEMENT CHARGES

		
      Service under this Agreement will be subject to some
      combination of the charges detailed in Tables 1,2and 3 of
      this exhibit. (The appropriate charges for transactions will be determined
      in accordance with the terms and conditions of the
  Tariff.)

	 	(a) 	
      Transmission Charge

	 		
      PTP-04 Rate Schedule or successor rate
  schedules.

	 	 	 	 
	 		(1) 	
      Reservation Fee

	 			
      Within 30 days after the Transmission Customer signs this
      Service Agreement, the first annual nonrefundable reservation fee of
      $12,336 shall be paid to the Transmission Provider. For the second and any
      subsequent reservation fees, the Transmission Provider will bill the
      Transmission Customer 30 days prior to their due date. If the deferral or
      extension of service spans two or more rate periods, the reservation fee
      will be based on the PTP Rate in effect at the time each payment is due.
      The Reservation Fee is based on the PTP Rate only and not on any of the
      Ancillary Services.

	 	 	 	 
	 		(2) 	
      Short Distance Discount (SDD)

	 			
      [0.6 + (0.4 x transmission
  distance/75)]

	05TX-11399, U.S. Geothermal, Inc. 	Page 2 of
      4 
	Exhibit A, Table 1B 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on December 1,2008 

	Path
	Circuit 
Miles 	Transmission 
Demand (kW)
	SDD Factor 

	Bridge - Minidoka 	40.9 	12,000 	0.8182

	 	(b) 	
      System Impact and/or Facilities Study
    Charge(s)

	 		
      System Impact andlor Facilities Study Charges are not
      required at this time for service under this Service
  Agreement.

	8. 	
      OTHER PROVISIONS SPECIFIC TO THIS SERVICE
      AGREEMENT

		
      None.

	 	 
	9. 	
      CREDITWORTHINESSAND PREPAYMENT FOR
  SERVICE

	 	(a) 	
      The Transmission Provider's creditworthiness business
      practices and provisions shall apply, as revised or replaced.

	 	 	 
	 	(b) 	
      The Transmission Customer shall make monthly prepayments
      of the charges specified in paragraph 9(e) of this section. The
      Transmission Customer shall make the prepayment on or before the 20th of
      each month for the subsequent month. Should the 20th fall on a weekend or
      Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later
      than November 20,2008, for the month of December, 2008.

	 	 	 
	 	(c) 	
      The Transmission Customer shall wire transfer all
      prepayments to the Federal Reserve Bank in New York City so that they
      arrive no later than 2:00 p.m. Eastern Standard or Daylight Time,
      whichever is in effect. The Transmission Provider will verify that payment
      has been received at the Federal Reserve Bank.

	 	 	 
	 	(d) 	
      The Transmission Customer shall include the following
      information on all wire transfers under this
Agreement:

	 	(1) 	
      ABA number - The ABA number for the Federal Reserve Bank
      in New York City is 021030004;

	 	 	 
	 	(2) 	
      Receiving Bank - "TREASNYC" designates the Federal
      Reserve Bank in New York City as the receiving bank;

	 	 	 
	 	(3) 	
      Product Code - 'TREAS NYCICTR";

	 	 	 
	 	(4) 	
      Account - Agency Location Code of 89001401 directs
      the payment to the BPA Fund in the U.S.
Treasury;

	05TX-11399, U.S. Geothermal, Inc. 	Page 3 of
      4 
	Exhibit A, Table 1B 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on December 1,2008 

	 	(5) 	
      Third Party Information - After "OBI="the Transmission
      Customer should indicate "TRANSMISSION PREPAY" in order to identify
      the payment when it is received.

		(e) 	
      The following charges are subject to prepayment: PTP Long
      Term Firm Transmission Service charges and Ancillary Service Charges. The
      monthly charge for long-term firm PTP transmission service under this
      Service Agreement shall be pursuant to the applicable PTP Rate Schedule,
      or its successor. Ancillary Service Charges shall be pursuant to the
      applicable ACS Rate Schedule, or its successor, and shall apply to the
      Ancillary Services in accordance with Exhibit A, Table 3. The
      amount of prepayment shall be determined using the applicable rates in
      effect for such service for the relevant month. Successors to the PTP and
      ACS rate schedules will apply to the prepayment obligations. Should the
      Transmission Customer purchase either short-term firm or nonfirm PTP
      transmission service under this Service Agreement, the Transmission
      Customer shall calculate such charges in accordance with the applicable
      rate and prepay such charges for each month as described in paragraph 9(b)
      of this section.. 

	 	  	
      

		(f) 	
      Prepayment pursuant to paragraph (e) above does not
      preclude the Transmission Provider from applying adjustments to such
      payments for other charges consistent with the applicable rate schedules,
      or to pass through to the Transmission Customer any additional charges not
      covered in paragraph (e) above for ancillary services which the
      Transmission Provider may be required to pay to the control area operator.
      Any such adjustments and charges are subject to payment under the
      Transmission Provider's normal transmission billing process. 

	 	  	
      

		(g) 	
      If the Transmission Customer fails to make any payment as
      set forth above or to pay any amount owing on its Wholesale Transmission
      Bill on or before its due date, then, the Transmission Provider shall have
      the right to suspend transmission service for the period for which
      prepayment should have been provided; and, after 60 calendar days
      following written notice by the Transmission Provider to the Transmission
      Customer, the Transmission Provider shall have the right to terminate this
      Agreement. 

	05TX-11399, U.S. Geothermal, Inc. 	Page 4 of
      4 
	Exhibit A, Table 1B 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on December 1,2008 

EXHIBIT A 
SPECIFICATIONS FOR LONG-TERM FIRM

POINT-TO-POINT TRANSMISSION SERVICE 

TABLE 1C 
REQUEST FOR TRANSMISSION SERVICES

The OASIS Assignment Reference Number (ARef) is: 1434025. 

	1. 	
      TERM OF TRANSACTION

		
      Start Date: at 0000 hours on December 1,2008.

		
      Termination Date: at 0000 hours on December 1,2010,
      provided, however, that service under this agreement shall terminate on
      the earlier of: (i) the date mutually agreed upon by the parties; or (ii)
      the date Raft River Rural Electric Cooperative terminates the Transmission
      Provider's lease of transmission facilities under Contract No.
      DE-MS79-84BP91697, as it may be amended or replaced.

	 	 
	2. 	
      DESCRIPTION OF CAPACITY AND ENERGY TO BE TRANSMITTED
      BY TRANSMISSION PROVIDER

	Delivering 
Party
      

        (Resource)l 	POR 
Name &
      
Voltage 	POR 
Control 
Area
    	Reserved 
Capacity
      
(kW) 	POD 
Name
      & 
Voltage 	POD 
Control 
Area
    	Reserved 
Capacity
      
(kW) 	
Receiving 

        Party
	Transmission 
Customer 
	Bridge 34.5 kV 

	IPC 

	12,000 

	Minidoka 
PP 138 kV- 
IPC
    	IPC 

	12,000 

	 IPC
	Total Reserved capacity	12,000 	 	  	  	  

	3. 	POINT OF RECEIPT 
	  	  
	  	BRIDGE SUBSTATION 34.5 kV 
	  	  
		
      Location: the point in the Transmission Provider's
      Bridge Substation where 1 34.5 kV facilities of the Transmission
      Provider and Raft River Rural Electric Cooperative, Inc. are connected It
      is the Transmission Customer's responsibility to arrange for the delivery
      of power from the generation site(s) to this Point of Receipt. 

	  	
      

	  	
      Voltage: 34.5 kV 

	  	
      

		
      Metering: in the Transmission Provider's Bridge
      Substation and at the Transmission Customer's generation site(s) in the
      34.5 kV circuits over which such electric power flows.
  

1  The Resource, POR, POD and the whole
transmission path are in the control area of Idaho Power Company (IPC), who is
also the purchaser of the power from the Resource. 

	05TX-11399, U.S. Geothermal, Inc. 	Page 1of
      4 
	Exhibit A, Table 1C 	Effective at 0000 hours 
	Specifications for Long-Term Firm
      Point-To-Point Transmission Service 	on December 1,2008 

	4. 	
      POINT OF DELIVERY

	 	 
		
      MINIDOKA PP 138 kV - IPC POINT OF
      DELIVERY

	 	 
		
      Location: in the Government's Minidoka Power Plant
      where the 138 kV facilities of the Government and IPC are
  connected;

	 	 
		
      Voltage: 138 kV,

	 	 
		
      Metering: None. It is the responsibility of the
      Transmission Customer to assure that metering is implemented consistent
      with IPC7srequirements.

	 	 
		
      Exceptions: Loss returns are not required by the
      Transmission Provider at this time. It is the responsibility of the
      Transmission Customer to work with IPC as the POR and POD Control Area to
      determine the implementation of loss returns.

	5. 	
      DESIGNATION OF PARTY SUBJECT TO RECIPROCAL SERVICE
      OBLIGATION

		
      U.S. Geothermal, Inc.

	 	 
	6. 	
      NAMES OF ANY INTERVENING SYSTEMS PROVIDING
      TRANSMISSION SERVICE

		
      None.

	 	 
	7. 	
      SERVICE AGREEMENT CHARGES

		
      Service under this Agreement will be subject to some
      combination of the charges detailed in Tables 1,2and 3 of this exhibit.
      (The appropriate charges for transactions will be determined in accordance
      with the terms and conditions of the Tariff.)

	 	(a) 	
      Transmission Charge

	 		
      PTP-04 Rate Schedule or successor rate
  schedules.

	 	(1)	
      Reservation Fee

	 		
      Within 30 days after the Transmission Customer signs this
      Service Agreement, the first annual nonrefundable reservation fee of
      $12,336 shall be paid to the Transmission Provider. For the second and any
      subsequent reservation fees, the Transmission Provider will bill the
      Transmission Customer 30 days prior to their due date. If the deferral or
      extension of service spans two or more rate periods, the reservation fee
      will be based on the PTP Rate in effect at the time each payment is due.
      The Reservation Fee is based on the PTP Rate only and not on any of the
      Ancillary Services.

	 	 	 
	 	(2) 	
      Short Distance Discount (SDD)

	 		
      [0.6 + (0.4 x transmission
distance/75)]

	05TX-11399, U.S. Geothermal, Inc. 	Page 2 of
      4 
	Exhibit A, Table 1C 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on December 1,2008 

	Path 
	Circuit 
Miles 	Transmission 
Demand (kW)
	SDD Factor 

	Bridge - 
Minidoka 	40.9 
	12,000 
	0.8182

	 	(b) 	
      System Impact andlor Facilities Study
    Charge(s)

	 		
      System Impact andlor Facilities Study Charges are not
      required at this time for service under this Service
  Agreement.

	8. 	
      OTHER PROVISIONS SPECIFIC TO THIS SERVICE
      AGREEMENT

		
      None.

	 	 
	9. 	
      CREDITWORTHINESS AND PREPAYMENT FOR
  SERVICE

		(a) 	
      The Transmission Provider's creditworthiness business
      practices and provisions shall apply, as revised or replaced.
  

		(b) 	
      The Transmission Customer shall make monthly prepayments
      of the charges specified in paragraph 9(e) of this section. The
      Transmission Customer shall make the prepayment on or before the 20th of
      each month for the subsequent month. Should the 20th fall on a weekend or
      Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later
      than November 20,2008, for the month of December, 2008.

		(c) 	
      The Transmission Customer shall wire transfer all
      prepayments to the Federal Reserve Bank in New York City so that they
      arrive no later than 2:00 p.m. Eastern Standard or Daylight Time,
      whichever is in effect. The Transmission Provider will verify that payment
      has been received at the Federal Reserve Bank.

		(d) 	The Transmission Customer shall include the
      following information on all wire transfers under this Agreement:
  

	 	(1) 	
      ABA number - The ABA number for the Federal Reserve Bank
      in New York City is 021030004;

	 	 	 
	 	(2) 	
      Receiving Bank - "TREASNYC" designates the Federal
      Reserve Bank in New York City as the receiving bank,

	 	 	 
	 	(3)	
      Product Code - 'TREAS NYC/CTR1';

	 	 	 
	 	(4) 	
      Account - Agency Location Code of 89001401 directs the
      payment to the BPA Fund in the US. Treasury;

____________________________________

  2 The SDD is not available for transmission from secondary points of integration.
  If a primary point of integration, associated with a SDD is moved to a secondary
  point of integration, at any time during the month, the SDD shall not be applied
  for that month. 

	05TX-11399, U.S. Geothermal, Inc. 	Page 3 of
      4 
	Exhibit A, Table 1C 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on December 1,2008 

	 	(5) 	
      Third Party Information - After "OBI=" the Transmission
      Customer should indicate "TRANSMISSION PREPAY" in order to identify the
      payment when it is received.

		(e) 	
      The following charges are subject to prepayment: PTP Long
      Term Firm Transmission Service charges and Ancillary Service Charges. The
      monthly charge for long-term firm PTP transmission service under this
      Service Agreement shall be pursuant to the applicable PTP Rate Schedule,
      or its successor. Ancillary Service Charges shall be pursuant to the
      applicable ACS Rate Schedule, or its successor, and shall apply to the
      Ancillary Services in accordance with Exhibit A, Table 3.
      The amount of prepayment shall be determined using the applicable
      rates in effect for such service for the relevant month. Successors to the
      PTP and ACS rate schedules will apply to the prepayment obligations.
      Should the Transmission Customer purchase either short-term firm or
      nonfirm PTP transmission service under this Service Agreement, the
      Transmission Customer shall calculate such charges in accordance with the
      applicable rate and prepay such charges for each month as described in
      paragraph 9(b) of this section. 

	 	  	
       

		(f)	
      Prepayment pursuant to paragraph (e) above does not
      preclude the Transmission Provider from applying adjustments to such
      payments for other charges consistent with the applicable rate schedules,
      or to pass through to the Transmission Customer any additional charges not
      covered in paragraph (e) above for ancillary services which the
      Transmission Provider may be required to pay to the control area operator.
      Any such adjustments and charges are subject to payment under the
      Transmission Provider's normal transmission billing process. 

	 	  	
       

		(g) 	
      If the Transmission Customer fails to make any payment as
      set forth above or to pay any amount owing on its Wholesale Transmission
      Bill on or before its due date, then, the Transmission Provider shall have
      the right to suspend transmission service for the period for which
      prepayment should have been provided; and, after 60 calendar days
      following written notice by the Transmission Provider to the Transmission
      Customer, the Transmission Provider shall have the right to terminate this
      Agreement. 

	05TX-11399, U.S. Geothermal, Inc. 	Page 4 of
      4 
	Exhibit A, Table 1C 	Effective at 0000 hours 
	Specifications for Long-Term Firm Point-To-Point Transmission
      Service 	on December 1,2008 

EXHIBIT A 
SPECIFICATIONS FOR LONG-TERM FIRM

POINT-TO-POINT TRANSMISSION SERVICE 

TABLE 2 
DIRECT ASSIGNMENT AND
USE-OF-FACILITIES CHARGES 

Facilities Charges are not required at this time for the
service associated with Exhibit A, Tables lA, lB, and 1C. 

 

 

 

	05TX-11399, U.S.
      Geothermal, Inc. 	Page 1of
      1 
	Exhibit A, Table 2 	Effective at 0000 hours 
	Specifications for Long~TermFirm Point-To-Point
      Transmission Service 	on June 1,2006 

EXHIBIT A 
SPECIFICATIONS FOR LONG-TERM FIRM

POINT-TO-POINT TRANSMISSION SERVICE 

TABLE 3 
ANCILLARY SERVICE CHARGES 

This Table 3 is subject to the ACS-04 Rate Schedule or
successor rate schedules. For transmission service that requires use of the
Transmission Provider's control area, the first two services below must be
purchased from the Transmission Provider, and the Transmission Customer must
make arrangements for the provision of other ancillary services in compliance
with the Transmission Provider's Open Access Transmission Tariff (Tariff), as it
may be amended. To the extent that ancillary or control area services are
provided by a control area operator other than the Transmission Provider, or by
any entity other than the Transmission Provider, and such services are billed to
the Transmission Provider, the Transmission Provider will pass on such costs to
the Transmission Customer, and the Transmission Customer agrees to pay such
charges. The information specified below is applicable only to service provided
pursuant to Tables lA, lB, and lC, which are included in Exhibit A at the time
this Contract 05TX-11399 is originally executed. If the Transmission Customer
requests additional service not specified in such tables at the time this
contract is originally executed, or if such original service is revised or
assigned, whether or not such service is documented in this Service Agreement,
the provisions of the Tariff, as it may be amended or replaced, shall determine
the applicability of the ancillary services described therein to the services
requested. 

	  	  	Provided By 	Contract
  No.
	1. 

	SCHEDULING, SYSTEM CONTROL
      AND 
DISPATCH 
(See above) 
	As determined 
by control 
area
      operator 
	

	2. 

	REACTIVE SUPPLY AND
      VOLTAGE 
CONTROL 
(See above) 
	As determined 
by control 
area
      operator 
	

	3.

	REGULATION &
      FREQUENCY RESPONSE 
(Only for customers serving load in
      Transmission 
Provider's Control Area) 
	Not 
Applicable 

	

	4.

	ENERGY IMBALANCE SERVICE
      
(Only for customers serving load in Transmission 
Provider's
      Control Area who do not receive 
requirements power service from BPA)
      
	Not 
Applicable 

	

	5.
	OPERATING RESERVE -
      SPINNING 
RESERVE 	As Applicable 
	

	6. 

	OPERATING RESERVE -
      SUPPLEMENTAL 
RESERVE 

      	As Applicable 

      	

   

	05TX-11399, U.S. Geothermal, Inc. 	Page 1of
      1 
	Exhibit B 	Effective at 0000 hours 
	Notices 	on June 1,2006 

EXHIBIT B 
NOTICES 

	1. 	
      NOTICES RELATING TO PROVISIONS OF THE SERVICE
      AGREEMENT

		
      Any notice or other communication related to this Service
      Agreement, other than notices of an operating nature (section 2 below),
      shall be in writing and shall be deemed to have been received if delivered
      in person, First Class mail, by telefax or sent by overnight
    delivery.

	 	If to the Transmission Customer: 	If to the Transmission Provider: 
	 	  	  
	 	U.S. Geothermal, Inc. 	Bonneville Power Administration 
	 	1509 Tyrell Lane, Suite B 	P.O. Box 61409 
	 	Boise, ID 83706 	Vancouver, WA 98666-1409 
	 	Attention: Mr. Robert A. Cline, 	Attention:   Transmission Account
      Executive 
	 	Vice President, Engineering 	                     
      for U.S. Geothermal - TMIOPP2 
	 	Phone: (208) 424-1027 	Phone:  (360) 619-6010 
	 	Fax: (208) 424-1030 	Fax:       (360)
      619-6940 
	 	 	 
	 	 	If by Overnight Delivery Services:

	 	 	Bonneville Power Administration 
	 	 	8100 NE Parkway Drive - Suite 50 
	 	 	Vancouver, WA 98662 
	 	 	Attention:   Transmission Account
      Executive 
	 	 	                     
      for U.S. Geothermal - TMIOPP2 

	2. 	
      NOTICES OF AN OPERATING NATURE

		
      Any notice, request, or demand of an operating nature by
      the Transmission Provider or the Transmission Customer shall be made
      either orally or in writing by telefax or sent by First Class mail or
      overnight delivery.

	 	If to the Transmission Customer: 	If to the Transmission Provider:

	 	  	  
	 	U.S. Geothermal, Inc. 	Bonneville Power Administration 
	 	1509 Tyrell Lane, Suite B 	P.O. Box 491 
	 	Boise, ID 83706 	Vancouver, WA 98666-0491 
	 	Attention: Mr. Robert A. Cline, 	Attention: Real-Time Scheduling Desk 
	 	Vice President, Engineering 	EMERGENCY ONLY 
	 	Phone: (208) 424-1027 	Phone: Contact Idaho Power Company 
	 	Fax:      (208) 424-1030 	Fax:      Contact
      Idaho Power Company 

	3. 	
      SCHEDULING AGENT

		
      Not applicable for service as specified in Exhibit A,
      Tables lA, lB, and 1C.

	05TX-11399, U.S. Geothermal, Inc. 	Page 1of
      1 
	Exhibit B 	Effective at 0000 hours 
	Notices 	on June 1,2006Filed by Automated Filing Services Inc. (604) 609-0244 - US Geothermal Inc. - Exhibit 10.28

 

Interconnection and Wheeling Agreement 

 

Between and By Raft River Rural

Electric Cooperative 

 

And 

 

Raft River Energy I LLC 

 

 

i 

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 

ii

	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 

iii

	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 

iv

	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 

v

	 	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 

vi

	  	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

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 

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

		
      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

		
      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) 
	Any petro-chemical or petroleum products, oil
      or coal ash, radioactive materials, radon gas, asbestos in any form
      that is or could become friable, urea formaldehyde foam insulation and
      transformers or other equipment that contain dielectric fluid which may
      contain levels of polychlorinated biphenyls;
	 	 	 
		
      (B) 
	Any chemicals, materials, or substances
      defined as or included in the definition of  “hazardous substances,”
      “hazardous wastes,” “hazardous materials,” “restricted hazardous
      materials,” “extremely hazardous substances,” “toxic substances,”
      “contaminants,” or “pollutants” under any Environmental Laws, or words of
      similar meaning and regulatory effect under any Environmental Laws;
  or

4

	 	(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 OF
INTERCONNECTION
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 	
      Generator-Owned Interconnection Facilities must be
      designed, constructed and installed in accordance with applicable
      Engineering and Design Studies and Good Utility Practice. At Generator’s
      expense, Generator will procure any and all

6

	 		
      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 	
      Construction and Installation.

	 	 	 	 
			(A) 	
      Unless otherwise agreed to by the Parties, the
      Transmission Owner- Owned Interconnection Facilities and the System
      Upgrades shall be constructed and installed by Transmission Owner or a
      third party contractor agreed to by Transmission Owner and Generator. The
      Transmission Owner shall obtain any land, permits, easements, licenses, or
      rights of way reasonably required for the construction and installation of
      the Transmission Owner-Owned Interconnection Facilities and System
      Upgrades.

7

	 	(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 	
      Generator shall be responsible for all costs of
      procurement and construction incurred to provide temporary and permanent
      interconnection as described in Exhibit 1. Transmission Owner and
      Generator recognize that to accommodate Generator’s schedule, that
      engineering was initiated prior to issuance of written notice to proceed
      to the Transmission Owner.

8

	2.5 	
      Testing of Facilities

	 	 	 
		2.5.1 	
      Prior to operation of the Interconnection Facilities
      Transmission Provider may ask for a test or tests of the Facilities to
      ensure a safe and reliable system in accordance with Good Utility
      Practice. Generator shall not unreasonably withhold its agreement to such
      a test or tests. The Parties shall conduct any testing at a mutually
      agreed upon time. Parties shall bear their own cost of testing.

	 	 	 
		2.5.2. 	
      Transmission Owner will not purchase any of the test
      energy produced by the Facility.

	 	 	 
	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 3 
CONTINUING 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. 	
      Facility Station Service. Any Facility Station
      Service needed beyond that provided by the Facility when in operation will
      be provided by Raft River under separate
agreement.

9

	 	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 	
      Operation and Maintenance of the Facility.
      Generator will operate and maintain the Facility in a safe and efficient
      manner and in accordance with Good Utility Practice.

	 	 	 
		3.4.2 	
      Operation and Maintenance of Generator-Owned
      Interconnection Facilities.

	 	 	 
			
      Generator will operate and maintain the Generator-Owned
      Interconnection Facilities in a safe and efficient manner and in
      accordance with Good Utility Practice.

10

	 	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

	 		
      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 	
      Operation and Maintenance. Transmission Owner will
      operate and maintain the Transmission Owner-Owned Interconnection
      Facilities and the Transmission

12

	 		
      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. 	
      Maintenance Schedule. Transmission Owner will
      consult with Generator regarding the timing of scheduled maintenance of
      the Transmission System and the Transmission Owner-Owned Interconnection
      Facilities that might reasonably be expected to affect the delivery of
      Generation from the Facility. Transmission Owner will use reasonable
      efforts to schedule such maintenance to coincide with the scheduled
      outages of the Facility or with Generator’s requests for outage
      schedules.

	 	 	 
		3.6.2. 	
      Maintenance Expenses. Each Party shall be
      responsible for all expenses associated with (1) maintaining its own
      property, equipment, facilities, and appurtenances on its side of the
      Point of Receipt, and (2) maintaining Interconnection Facilities that it
      owns.

	 	 	 
		3.6.3. 	
      Coordination. The Parties agree to confer
      regularly to coordinate the planning and scheduling of preventative and
      corrective maintenance.

	 	 	 
		3.6.4 	
      Cooperation. Each Party agrees to cooperate with
      the other in the inspection, maintenance, and testing of those secondary
      systems directly affecting the operation of a Party's facilities and
      equipment which may reasonably be expected

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 	
      Notification. Transmission Owner will provide
      Generator with prompt oral notification by telephone of any Emergency
      regarding the Transmission System or Interconnection Facilities which may
      reasonably be expected to affect Generator’s operation of its facilities,
      and Generator will provide Transmission Owner with prompt oral
      notification by telephone of any Emergency regarding the Facility or the
      Interconnection Facilities which may reasonably be expected to affect
      Transmission Owner’s operations. Such notification shall indicate the
      reasons for the Emergency, the Emergency’s expected effect on the
      operation of Generator’s or Transmission Owner’s facilities and
      operations, the Emergency’s expected duration, and the corrective action
      to be taken.

14

	 	3.7.2 	
      Actions By Parties.

	 	 	 	 
	 		(A) 	
      If a Party determines in its good faith judgment that an
      Emergency exists which endangers or could endanger life or property, such
      Party may take such action as may be reasonable and necessary to prevent,
      avoid, or mitigate injury and danger to, or loss of, life or
    property.

	 	 	 	 
	 		(B) 	
      Transmission Owner reserves the right to request,
      consistent with Good Utility Practice, Generator to make any operational
      changes at the Facility, including, but not limited to, raising or
      lowering voltage or electric power levels or disconnection of the
      Generator from the Transmission Owner’s system in order to eliminate,
      mitigate, or control an Emergency operating condition. Exhibit 8 contains
      more specific instances of when disconnection of the Generator may be
      required.

	 	 	 	 
	 		(C) 	
      Transmission Provider shall not be liable to the
      Generator for any damage incurred to Generator’s Facility, or for lost
      revenues or other charges which the Generator may incur as a result of any
      action taken, including disconnection of Facility from Transmission
      Owner’s System, in responding to an Emergency so long as such action is
      made in good faith and consistent with Good Utility
  Practice.

	3.8 	
      Abnormal or Out of Limit Operating Condition
      Procedures.

	 	 	 
		3.8.1 	
      Notification. Transmission Owner will provide
      Generator with prompt oral notification by telephone of any Abnormal or
      Out of Limit Condition regarding the Transmission System or
      Interconnection Facilities which may reasonably be expected to affect
      Generator’s operation of its facilities, and Generator will provide
      Transmission Owner with prompt oral notification by telephone of any
      Abnormal or Out of Limit Condition regarding the Facility or
      Interconnection Facilities which may reasonably be expected to affect
      Transmission Owner’s

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 	
      General. Transmission Owner shall provide,
      install, own and maintain Metering Equipment necessary to meet its
      obligations under this Agreement as set forth in Exhibit 7. All reasonable
      costs associated with the administration, maintenance, and calibration of
      metering equipment and the provision of metering data from Generator to
      PNGC Power shall be borne by Generator. The costs of administration and of
      providing metering data shall be itemized on Transmission Owner's invoice
      to Generator. All reasonable costs associated with either the initial
      installation of metering, as more fully described in Exhibit 7, or any
      changes to metering equipment requested by Generator, shall be borne by
      Generator.

	 	 	 
		3.10.2. 	
      Ownership of Metering Equipment. Transmission
      Owner and BPA shall provide and install metering equipment at Generator’s
      expense to Transmission Owner’s and BPA specifications necessary to meter
      the electrical output of the Facility, with the exception that Idaho Power
      Company, or other power purchaser may own revenue metering equipment
      measuring Generator’s plant output on Generator’s side of the Point of
      Receipt.

	 	 	 
		3.10.3. 	
      Testing of Metering Equipment. Transmission Owner
      shall, at Generator’s expense, inspect, test, and calibrate all
      Transmission Owner owned metering equipment upon installation and at least
      once every year thereafter. Revenue metering used to measure Facility
      output will be inspected, tested and calibrated at the same schedule as
      required above and paid for by an entity other than the Transmission
      Owner. Transmission Owner shall give reasonable notice of the time when
      any inspection or test shall take place, and Generator may have
      representatives present at the test or inspection. If metering equipment
      is found to be inaccurate or defective, it shall be adjusted, repaired or
      replaced at Generator’s expense, in order to provide accurate metering.
      Testing costs, if any, will be

17

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 	
      At Generator’s expense, Generator’s metered data shall be
      telemetered to the PNGC Power’s power scheduling center located in
      Portland, Oregon. An Automated Metering Network (AMN) or equivalent data
      collection and transfer equipment shall be installed by Transmission Owner
      at Generator’s expense, to gather accumulated and instantaneous data to be
      telemetered to the Pacific Northwest Generation Cooperative operations
      center located in Portland, Oregon through the use of a dedicated point-
      to-point data circuit(s) and/or satellite transceiver.

	 	 	 	 
			3.10.4.2 	
      Generator shall provide to PNGC Power actual hourly
      generation data on a monthly basis within five days of the end of each
      month. This five day period may be changed to a mutually acceptable period
      of time.

	 	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

	 		
      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 	
      Information Obligations

	 	 	 	 
			(A) 	
      Either Party may request that the other Party, and that
      other Party will promptly provide, at the requesting Party’s sole cost and
      expense, such information and data that the requesting Party may
      reasonably require to (1) verify costs relating to the Interconnection
      Facilities or the System Upgrades, including, but not limited to, costs
      relating to procurement, construction, and operation and maintenance; (2)
      carry out its responsibilities and enforce its rights under this
      Agreement; and (3) satisfy any reporting obligations it may have to WECC
      or successor organization, NERC, or FERC.

	 	 	 	 
			(B) 	
      Transmission Owner’s right to request information and
      data shall be subject to the following
limitations:

19

	 	(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

	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

	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. 	
      Transmission Customer shall make an estimate of its
      output for each hour of the coming month. Such estimate shall be submitted
      to Raft’s scheduling agent, PNGC Power, no later than 3 business days
      before the start of each month.

	 	 	 
		b. 	
      Transmission Customer shall make an estimate of its
      output for each hour of the coming week. Such estimate shall be submitted
      to Raft’s scheduling agent, PNGC Power, no later than 10 a.m. (Mountain
      Time) of the last business day prior to the start of the new
  week.

	 	 	 
		c. 	
      Transmission Customer shall make an estimate of its
      output for each hour of the coming preschedule day or days. Such estimate
      shall be submitted to Raft’s scheduling agent, PNGC Power, no later than 6
      a.m. (Mountain Time).

22

	 		
      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 5 
COST, 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

	5.2 	
      Billing Procedures

	 	 	 
		5.2.1 	
      Invoices. With respect to any costs and expenses
      for which a Party is entitled to be compensated under this Agreement, the
      Party (the “invoicing Party”) must submit an invoice to the other Party at
      the start of each calendar month for the costs for which it is to be
      compensated under this Agreement.

	 	 	 
		5.2.2 	
      Payment. Payment of invoiced amounts will be due
      and payable within fifteen (15) days after receipt of the invoice, or such
      other time as the Parties mutually agree. If the date of payment falls on
      a Sunday or holiday, payment shall be made on the next business day. All
      payments will be made in immediately available funds payable to the
      invoicing Party or by wire transfer to a bank named by the invoicing
      Party. If any undisputed portion of any invoice remains unpaid fifteen
      (15) days after the receipt of the invoice, or such other time as the
      Parties mutually agree upon, the invoicing Party will apply to the unpaid
      balance, and the other Party shall pay an interest charge calculated in
      accordance with Section 5.4 of this Agreement.

	 	 	 
		5.2.3 	
      Disputes. If Generator disputes any portion of an
      invoice, Generator shall pay the full invoiced amount and shall notify
      Transmission Owner in writing of any such dispute and the reason
      therefore. No invoice may be disputed after such time as a Party’s audit
      rights have expired. Parties shall settle billing disputes in good faith.
      In the event of a billing dispute, each Party agrees to continue to
      perform its duties and obligations under this Agreement as long as the
      other Party continues to make all payments.

	 	 	 
	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

		
      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 7 
TERM, 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) 	
      The Party fails to make any payment due the other Party
      in accordance with this Agreement and does not make such payment to the
      other Party within thirty (30) calendar days after receiving written
      notice from the other Party of such failure; or

27

	 	(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

		
      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 	
      Transmission Owner is a cooperative duly organized,
      validly existing and in good standing under the laws of the State of
      Idaho, and Transmission Owner has the requisite corporate power and
      authority to own its properties, and to carry on its business as now being
      conducted.

	 	 	 
		8.1.2 	
      Subject to approval of this Agreement by RUS,
      Transmission Owner has the requisite corporate power and authority to
      execute and deliver this Agreement and to carry out the actions required
      of it by this Agreement. The execution and delivery of this Agreement and
      the actions it contemplates have been duly and validly authorized by
      Transmission Owner, and no other corporate proceedings on the part of
      Transmission Owner are necessary to authorize this Agreement or to
      consummate the transactions contemplated hereby. This Agreement has been
      duly and validly executed and delivered by Transmission Owner and
      constitutes a

29

	 		
      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

	8.2 	
      Representations of Generator. Generator represents
      and warrants the following:

	 	 	 
		8.2.1 	
      Generator is a Limited Liability Company duly organized,
      validly existing, and in good standing under the laws of the State of
      Delaware, and Generator has the requisite corporate power and authority to
      own its properties, and to carry on its business as now being
      conducted.

	 	 	 
		8.2.2 	
      Generator has the requisite power and authority to
      execute and deliver this Agreement and to carry out the actions required
      of it by this Agreement. The execution and delivery of this Agreement and
      the actions it contemplates have been duly and validly authorized by
      Generator, and no other corporate proceedings on the part of Generator are
      necessary to authorize this Agreement or to consummate the transactions
      contemplated hereby. This Agreement has been duly and validly executed and
      delivered by Generator and constitutes a legal, valid and binding
      agreement of Generator 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 Generator and by general principles of equity (regardless of
      whether such enforceability is considered in a proceeding in equity or
      law).

	 	 	 
		8.2.3 	
      Generator has obtained or will obtain all approvals of,
      and has given or will give all notices to, any public authority that are
      required for Generator to execute, deliver and perform its obligations
      under this Agreement.

	 	 	 
		8.2.4 	
      To the best of Generator’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

31

	 		
      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

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 	
      Workers compensation insurance in accordance with the
      State of Idaho requirements;

	 	 	 
		10.1.2 	
      Employer’s liability insurance with limits of not less
      than one million dollars ($1,000,000); and

	 	 	 
		10.1.3 	
      Commercial general liability insurance, including
      automobile liability coverage, with limits of not less than one million
      dollars ($1,000,000)

	 	 	 
	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

	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

	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

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

	12.3 	
      Procedures. A Party claiming force majeure
      must:

	 	 	 
		(A) 	
      Give written notice to the other Party of the occurrence
      of a force majeure event no later than three (3) business days after
      learning of the occurrence of such an event;

	 	 	 
		(B) 	
      Use due diligence to resume performance or the provision
      of service hereunder as soon as practicable;

	 	 	 
		(C) 	
      Take all commercially reasonable actions to correct or
      cure the force majeure event, provided, however, that settlement of
      strikes or other labor disputes are completely within the sole discretion
      of the Party affected by such strike or labor dispute;

	 	 	 
		(D) 	
      Exercise all reasonable efforts to mitigate or limit
      damages to the other Party; and

	 	 	 
		(E) 	
      Provide prompt written notice to the other Party of the
      cessation of the adverse effect of the force majeure event on its ability
      to perform its obligations under this Agreement.

ARTICLE 13 
Limitations 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

		
      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

		
      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.

39

	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 14 
INTEGRATION

	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

40

		
      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 16 
WAIVER 

	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 18 
SUCCESSORS, 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.

41

		
      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 	
      Except as provided for in this section, Transmission
      Owner may not assign this Agreement or any of its rights, interests or
      obligations hereunder without the prior written consent of Generator,
      which consent shall not be unreasonably withheld or delayed.

	 	 	 
		18.2.2 	
      Transmission Owner may, with only prior written notice to
      Generator, assign this Agreement to any entity(ies) that acquires
      ownership or control of all, or substantially all, of the Transmission
      System and agrees in writing to be bound by all of the obligations and
      duties of Transmission Owner provided for in this Agreement.

	 	 	 
		18.2.3 	
      Any assignment by Transmission Owner in violation of this
      section shall be, at Generator’s option, null and void from its
      inception.

	 	 	 
	18.3 	
      Generator Assignment Rights.

	 	 	 
		18.3.1 	
      Except as provided for in this section, Generator may not
      assign this Agreement or any of its rights, interests or obligations
      hereunder without the prior written consent of Transmission Owner, which
      consent shall not be unreasonably withheld or delayed.

	 	 	 
		18.3.2 	
      Generator may, with only prior written notice to
      Transmission Owner, assign, transfer, pledge or otherwise dispose of its
      rights and interests under this Agreement to (A) any lender or any
      financial institution in connection with a

42

	 		
      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 20 
GOVERNING 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.

43

	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

44

 

	 	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	 	By:	/s/ James Powers
	 	
	 	 	

    
	 	 	 	 	 
	Title:	COO	 	Title:	General Manager
	 	 	 	 	 
	Date:	3-9-06	 	Date:	3-6-06

45

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]